But recovery after lockdown entails continued support from the government
New data from Statistics Canada are starting to reveal the extent of COVID-19’s impact on the economy, yet Canadian employers are readjusting to this “new reality”.
While Canada’s GDP declined 11.6% in April, coronavirus response measures helped a number of businesses to stay afloat. By the end of May, the economy had been “transformed” as employers began shifting to telecommuting, reducing work hours or pay, downsizing the workforce, and seeking wage subsidy or rent relief from the government, StatCan said.
But now, more businesses are aiming for stability.
Seven in 10 employers (65.8%) said they plan to retain a steady number of employees as they refocus their energy on recovery in the next three months.
Read more: More businesses optimistic about hiring post-COVID 19
Others (15.1%) are also paving the way for an increase in headcount over the same period – these are the same sectors that were heavily affected by COVID-19 lockdown measures.
One in four businesses in accommodation and foodservices (24.4%) as well as manufacturing (23.9%) expect to ramp up hiring in the next three months, StatCan found.
But recovery also entails continued support from the government. Amid economic slowdown, the government has offered qualified employers business loans of up to $40,000 and wage subsidies covering up to 70% of their workers’ pay during the pandemic.
Read more: Trudeau extends wage subsidy scheme to aid employment rebound
Of those who received assistance through the Canada Emergency Wage Subsidy (CEWS) program, more than half have rehired 30% or more of their staff, while almost a quarter have called back their entire workforce, StatCan said.
On the other end of the spectrum, however, an average of two in five employers have been forced to cut work hours while more than a quarter have had to lay off employees during the crisis.
“Almost all businesses in the arts, entertainment and recreation sector (94.3%) and in the accommodation and foodservices sector (94.1%) reported having taken some staffing action” StatCan said.
Read more: Restaurants in Canada reveal 'recipe for growth' after lockdown
Still, there are others that have been able to weather the storm.
“Despite the disruption caused by COVID-19 to the overall economy, close to one-quarter (22.9%) of businesses reported having implemented no changes with regards to staffing in light of COVID-19,” StatCan said. These include half of businesses in sectors such as agriculture, fishing and forestry.