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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Surrey RCMP are investigating after a pedestrian was struck and killed at 183 Street and Highway 10 Friday night. (File photo)
Chris Kobelka
Trail Smoke Eaters recruit top prospects

Trail Smoke Eaters building for future in 17-year-old defencemen Joel Barton and Chris Kobelka

Energy consultant Michèle Deluca and city building inspector Sam Ellison are researching how to account for embodied carbon when calculating a new building’s carbon footprint. Photo: Bill Metcalfe
Nelson researches climate impact of embodied carbon in new buildings

Embodied carbon is the footprint of the manufacture and transport of building materials

Castlegar Sculpturewalk 2020 – 10 Year Anniversary Sand Sculpture. (Submitted/CBT)
CBT arts and culture grant program now accepting applications

Apply through the Kootenay Columbia Cultural Alliance

Green Link Trail
Rossland forges ahead with Green Link Trail

Rossland is laying ground for start up of South Kootenay Green Link Trail

Dr. Penny Ballem, a former deputy health minister, discusses her role in leading B.C.’s COVID-19 vaccination program, at the B.C. legislature, Jan. 22, 2021. (B.C. government)
B.C. holds steady with 407 new COVID-19 cases Tuesday

14 deaths, no new outbreaks in the health care system

B.C. Premier John Horgan listens during a postelection news conference in Vancouver on Sunday, Oct. 25, 2020. THE CANADIAN PRESS/Darryl Dyck
30% of B.C. recovery benefit applications held up in manual review

The province says 150 staff have been reassigned to help with manually reviewing applications

Adam Dergazarian, bottom center, pays his respect for Kobe Bryant and his daughter, Gianna, in front of a mural painted by artist Louie Sloe Palsino, Tuesday, Jan. 26, 2021, in Los Angeles. (AP Photo/Jae C. Hong)
Kobe Bryant’s presence remains strong a year after his death

Tuesday marks the grim anniversary of the crash that took their lives

The Brucejack mine is 65 km north of Stewart in northwestern B.C. (Pretivm Photo)
B.C. mine executives see bright gleam in post-COVID future

Low carbon drives demand for copper, steelmaking coal

In this Dec. 18, 2020 photo, pipes to be used for the Keystone XL pipeline are stored in a field near Dorchester, Neb.  THE CANADIAN PRESS/AP-Chris Machian /Omaha World-Herald via AP
Canadians divided over Keystone pipeline, despite U.S. president’s permit pullback

Two-thirds of Canadians think Biden’s decision was a “bad thing” for Alberta

A woman wearing a protective face mask to curb the spread of COVID-19 walks past a mural in Victoria, B.C., on Monday, Dec. 7, 2020. THE CANADIAN PRESS/Marissa Tiel
5 big lessons experts say Canada should learn from COVID-19

‘What should be done to reduce the harms the next time a virus arises?’ Disease control experts answer

A Vancouver Police Department patch is seen on an officer’s uniform as she makes a phone call. THE CANADIAN PRESS/Darryl Dyck
Vancouver man calls 911 to report his own stabbing, leading to arrest: police

Officers located the suspect a few blocks away. He was holding a bloody knife.

Vernon has agreed to a goose cull to control the over-populated invasive species making a muck of area parks and beaches. (Morning Star file photo)
Okanagan city pulls the trigger on goose cull

City asking neighbours to also help control over-population of geese

Most Read