Wheat production became a critical economic driver in the Prairie provinces (Alberta, Saskatchewan, and Manitoba). The demand for Canadian wheat surged during and after the war, leading to increased immigration to the region and the expansion of railways to transport grain.
Canada’s economy became more closely tied to the United States during this period, with increased trade and American investments in Canadian industries, particularly manufacturing and resource extraction.
The 1920s saw the rise of the automobile industry, with companies like Ford and General Motors establishing factories in Ontario. This led to job creation and stimulated related industries such as steel, rubber, and glass.
Economic inequality and poor working conditions led to labour strikes, most notably the Winnipeg General Strike of 1919. Workers across industries demanded better wages, hours, and conditions, influencing labour relations in Canada.
During World War I, Canada’s economy shifted towards manufacturing and supplying war materials. Industries like munitions, textiles, and food production expanded rapidly, especially in Ontario and Quebec.
The post-war period saw increased urbanization, particularly in Central Canada. Toronto, Montreal, and other cities grew rapidly as people moved from rural areas in search of industrial jobs.
After the war, Canada experienced a short but sharp economic downturn. Wartime industries scaled back, soldiers returned to the workforce, and international demand for goods decreased. This caused high unemployment and a drop in wages.
Canada saw significant growth in natural resource industries, particularly in mining, forestry, and hydroelectric power. Regions such as Northern Ontario and British Columbia experienced economic growth driven by resource extraction.
During the “Roaring Twenties,” there was increased stock market speculation, particularly in Toronto and Montreal. The availability of consumer credit also rose, leading to greater consumer spending on items like cars, radios, and household appliances.
By the end of the 1920s, the stock market crash in 1929 marked the beginning of the Great Depression. This led to widespread economic hardship, with plummeting commodity prices, high unemployment, and severe impacts on the agricultural sector, especially in the Prairie provinces.