Report Reveals Traffic Congestion Costs Ontario $56 Billion Annually in Lost Productivity

According to a recent report, travel delays caused by gridlock in Ontario are costing approximately $56.4 billion each year.

The losses stem from restricted movement of goods and services, decreased productivity, missed job opportunities due to unpredictable commute times, and a lower quality of life,” as stated by the Canadian Centre for Economic Analysis.

The report highlights the impact of congestion in the Greater Toronto and Hamilton Area (GTHA), where nearly half of commuters face heavy congestion three or more times per week, compared to under 20 percent in the rest of the province.

Congestion undermines the region’s growth and prosperity, reducing life satisfaction and resulting in significant economic costs amounting to billions of dollars lost in productivity annually.

The study examines congestion from economic and social perspectives, revealing economic costs like delays in goods/services, decreased worker productivity, reduced business revenue, and limited job access.

This year alone, Ontario experienced an economic loss of $12.8 billion due to gridlock, with the GTHA accounting for nearly 80% of the total losses.

Since 2014, congestion has cost Ontario an estimated $35.5 billion and resulted in 112,000 fewer jobs over the decade.

The report also considers social aspects like life satisfaction, stress levels, and lost time quantified by linking life satisfaction to income.

This year, Ontarians lost $43.6 billion in social value due to congestion impacts, with the GTHA bearing nearly 80% of the burden.

Since 2001, the number of vehicles on GTHA roads has increased by 37%, compared to 17% outside the region.