The climbing – and hidden – costs of congestion

No one likes sitting in traffic, but for those of us who call Ontario — and specifically the Greater Toronto and Hamilton Area (GTHA) – home, it’s a fact of life. It doesn’t have to be, however, and nor should it be accepted as such.

Alleviating congestion needs to be an urgent priority for policymakers, as it’s expected to get worse in the coming decade. Much worse.

A new report from the Canadian Centre for Economic Analysis (CANCEA) paints a grim picture of the toll congestion in Ontario is taking both economically, and as it relates to quality of life.

“After costing Ontario $56.4 billion in social and economic costs annually over the last decade, congestion is projected to impose another $108 billion annually in social and economic costs over the next 20 years if left unaddressed,” the report reads.

chart showing car and truck congestion
(Source: CANCEA)

Using globally recognized methodology to measure life satisfaction, the study reveals that those who experience daily congestion report a 6% lower satisfaction with life than those who do not. And by virtue of the job, congestion, for most professional truck drivers, is an inescapable reality.

The economic impacts of congestion often receive the most attention, and for good reason. Congested roads derail supply chains and disrupt business activity. But CANCEA contends that the quality-of-life impacts of congestion are three times greater than the economic costs. More than half of GTHA residents have considered relocating due to the daily frustrations of gridlock, the report says.

Increases in both car and truck traffic are contributing to congestion, and the rise in truck traffic reaches well beyond the boundaries of the GTHA. Since 2021, the GTHA has seen a 37% increase in the number of cars on the road, more than twice the increase compared to other areas of the provinces.

graph showing cost of congestion
(Source: CANCEA)

In that same time period, truck traffic has increased 32% right across the province, with more concentrated growth along key transportation routes and goods movement hubs. This is especially noticed in the northern parts of the province, where infrastructure development has lagged the rise in truck traffic.

“While growth in car traffic across Northern Ontario has been relatively modest, most regions have seen over a 50% increase in truck traffic,” the study says. “In some areas, such as near Thunder Bay, Sudbury, and Parry Sound, truck traffic has more than tripled since 2001.”

Quality of life deteriorates with congestion

Of the $54.6 billion congestion costs the province each year, the economic impact is calculated at $12.8 billion with the rest coming from impacts on quality-of-life. Within the GTHA, the economic cost of congestion is pegged at $10.1 billion per year.

Clearly, Ontario needs to continue investing in both roads and transit. CANCEA estimates that if congestion levels remain unchanged, the costs will rise to $108 billion by 2024 – that’s a 95% increase over today’s costs and represents 6.2% of Ontario’s potential economic output. Nearly 80% of that cost will be incurred by the GTHA.

This will also exacerbate issues related to business’s ability to attract and retain employees.

“The impact of congestion extends beyond just the transportation of goods,” the study says. “It also affects the ability of businesses to attract and retain employees.”

Impact on employee recruitment and retention

It notes congestion shrinks the pool of potential job candidates, as prospective employees avoid seeking work in highly congested areas and instead choose to work closer to home. Already, 29% of Ontario businesses report difficulty in attracting employees, while 20% say retaining skilled workers is a challenge, with congestion cited as a key contributor.

The dreamers in Ottawa need to awaken to the true costs of congestion and the importance of infrastructure to support the population growth they’ve created. Somewhere along the way, ‘road’ became a four-letter word up there. That needs to change, or Ontario’s economy and the life satisfaction of its people will continue to deteriorate.

James Menzies


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  • Toronto and the ont government need to try to move a number of office workers and others out of the GTA to 2 new planned cities. The office space that this frees up should be used for health care workers and other people who need to work in the GTA .Ont gov needs to put tolls on a number of roads at certain times of the day to raise 9 billion ba year to help with the cost of building new roads and more parking. The current model of more trucks and cars going into Toronto most days has higher environmental costs and waisted people time and $ in my opinion.

  • No arguing about the congestion, but surely it has improved from 2020 when you consider the number people now working from home. Office building’s are empty or low capacity.

    Can you provide an updated study?