Gov.Gen. Julie Payette gives a wave as she waits before delivering the throne speech in the Senate chamber in Ottawa on Wednesday, Sept. 23, 2020. THE CANADIAN PRESS/Adrian Wyld

Gov.Gen. Julie Payette gives a wave as she waits before delivering the throne speech in the Senate chamber in Ottawa on Wednesday, Sept. 23, 2020. THE CANADIAN PRESS/Adrian Wyld

Liberals vow wage-subsidy extension to 2021, revamp of EI system in throne speech

Canadian labour market was hammered by pandemic, when lockdowns in the spring led to a loss of 3 million jobs

The Liberals are reversing course on a decision to wind down a federal wage subsidy, vowing in their throne speech to extend the program for businesses harmed by COVID-19 into next year.

Over the summer the government decided to start scaling back the program through the rest of the year by providing a smaller subsidy with each passing month.

The criteria for using the program were also eased.

But the Liberals were warned that small businesses that have used the program would need the help into 2021 as their revenues stayed low while costs remained steady.

Today, the Liberals’ throne speech promised to extend the subsidies to summer 2021, acknowledging the economic situation facing many employers is still fraught.

And for workers who lose their jobs, the throne speech also promises to put everyone under the employment insurance system, making it the only vehicle for benefits for hard-hit workers even if they previously didn’t qualify for the decades-old program.

The Canadian labour market has been hammered by the pandemic, when lockdowns in March and April led to a loss of three million jobs and 2.5 million more workers having their hours slashed as non-essential businesses were ordered closed.

As of August, the country has recouped about two-thirds of those job losses but that recovery has been uneven: Women, youth, low-wage and visible minority workers haven’t rebounded as quickly.

Statistics Canada reported that about one-fifth of the labour force was considered underutilized in August, a combination of people who were unemployed, who were not looking for jobs but wanted to work, and who worked less than half their usual hours – usually due to the pandemic.

The throne speech vows to use federal spending to get back the last million or so jobs, including through direct investments in the social sector and incentives for employers to hire and retain workers. The extension of the wage subsidy is touted as another way to create jobs.

As of Sept. 13, the government had paid out just over $35.3 billion in benefits to 312,750 different companies, although the number of workers covered by the subsidies has fallen in recent weeks.

At the same time, the Liberals plan to wind down the Canada Emergency Response Benefit, which has paid out almost $78 billion in benefits to nearly 8.8 million people.

Anyone covered by employment insurance will move to that program with access eased, they say. Those who don’t qualify, such as self-employed and gig workers, will be pushed to a new 26-week “recovery” benefit.

But the throne speech says that new benefit, which Parliament still has to approve, will be a transitional program before moving every worker in the country onto EI.

There is also a pledge in the throne speech to update the government’s technology systems. That will be a must for EI because the core system that delivers payments is more than 40 years old.

ALSO READ: Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

LiberalsThrone Speech

Just Posted

teaser
Dynamic drives and pitiful putting helped even the score

Another Ladies’ Night has come and gone. This season is passing by… Continue reading

Tim Schewe
Drivesmart column: Traffic cop humour

He demands to know what sort of device had been used to measure his speed

(L-r) Cody Lee with six-year-old daughter Paisley, and Joshua Burleigh with his seven-year-old son Noah are extremely thankfull to Heffley Creek residents and First Responders for the help they received after their canoe capsized in rapids on the North Thompson River on Sunday, June 13. (Facebook photo)(L-r) Cody Lee with six-year-old daughter Paisley, and Joshua Burleigh with his seven-year-old son Noah are extremely thankfull to Heffley Creek residents and First Responders for the help they received after their canoe capsized in rapids on the North Thompson River on Sunday, June 13. (Facebook photo)
North Thompson River canoe trip almost ends in disaster

‘Only way I managed to get us to shore was the thought of not letting my boy drown’

A for sale sign is shown in by new homes in Beckwith, Ont., just outside Ottawa, on Wednesday, Jan. 11, 2018. THE CANADIAN PRESS/Sean Kilpatrick
Thompson-Okanagan population grew despite COVID-19: report

The Chartered Professional Accountants of BC said there are 8,462 new residents in the region

People watch a car burn during a riot following game 7 of the NHL Stanley Cup final in downtown Vancouver, B.C., in this June 15, 2011 photo. THE CANADIAN PRESS/Geoff Howe
10 years ago: Where were you during the 2011 Vancouver Stanley Cup Riots?

Smashed-in storefronts, looting, garbage can fires and overturned cars some of the damage remembered today

(Black Press Media file)
Dirty money: Canadian currency the most germ-filled in the world, survey suggests

Canadian plastic currency was found to contain 209 bacterial cultures

(pixabay file shot)
B.C. ombudsperson labels youth confinement in jail ‘unsafe,’ calls for changes

Review states a maximum of 22 hours for youth, aged 12 from to 17, to be placed in solitary

Eleonore Alamillo-Laberge, 6, reads a book in Ottawa on Monday, June 12, 2017. THE CANADIAN PRESS/Sean Kilpatrick
Parents will need to fight ‘COVID learning slump’ over summer: B.C. literacy experts

Parents who play an active role in educating their children this summer can reverse the slump by nearly 80%, says Janet Mort

Kelowna General Hospital. (File photo)
COVID-19 outbreak at Kelowna General Hospital declared over

Three people tested positive for the virus — two patients and one staff — one of whom died

The border crossing on Highway 11 in Abbotsford heading south (file)
Western premiers call for clarity, timelines on international travel, reopening rules

Trudeau has called Thursday meeting, premiers say they expect to leave that meeting with a plan

The B.C. government’s vaccine booking website is busy processing second-dose appointments, with more than 76 per cent of adults having received a first dose. THE CANADIAN PRESS/Jonathan Hayward
B.C.’s COVID-19 infections, hospitalizations stable for Tuesday

108 new confirmed cases, 139 in hospital, 39 in intensive care

A worker, at left, tends to a customer at a cosmetics shop amid the COVID-19 pandemic Thursday, May 20, 2021, in Los Angeles. (AP Photo/Marcio Jose Sanchez)
Half of cosmetics sold in Canada, U.S. contain toxic chemicals: study

Researchers found that 56% of foundations and eye products contain high levels of fluorine

Most Read