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

The Prince George RCMP is asking for the public’s help to find 29-year-old Colin Michaud Durrand. He has a history of violence and is considered to pose an increased risk to public safety, according to police, who advise the public not to confront Durrand if he is located. (Photo Submitted by RCMP)
Prince George RCMP ask for help locating violent ‘priority offender’ with ties to Quesnel

RCMP says Colin Michaud Durrand, 29, recently lived in Quesnel but may frequent Hixon, Prince George

The outhouse at the Milburn Lake Public Access after the Oct. 17 work bee. Pictured here, from left, are Bouchie Lake Watershed Stewardship Society volunteers Doug Nielsen, Dan Aussant, Richard Armstrong and Bob Ross. (Photo Submitted)
Volunteers fix foundation of Milburn Lake Public Access outhouse

The Bouchie Lake Watershed Stewardship Society recently held a work bee at the site

An air cadet and RCMP officer stand guard over Quesnel’s Cenotaph during the 2019 Remembrance Day ceremonies. The COVID-19 pandemic has cancelled all public memorial ceremonies set for Nov. 11. (File Photo - Quesnel Cariboo Observer)
Quesnel Remembrance Day ceremonies on hold for 2020

There will be no public event, but residents are encouraged to observe two minutes of silence

Cariboo Regional District Area A Director Mary Sjostrom, School District 28 board chair Dave Chapman and Quesnel Mayor Bob Simpson plant ceremonial shovels into the ground at what will become Quesnel’s newest school during a ceremony Tuesday, Oct. 20. (Cassidy Dankochik Photo - Quesnel Cariboo Observer)
Construction begins on new Quesnel Junior School

A groundbreaking ceremony was held to kick off the two-year project

B.C. Conservative Leader Trevor Bolin and Cariboo North candidate Kyle Townsend were practising proper physical distancing during a campaign stop in Quesnel on Saturday, Oct. 17. (Cassidy Dankochik Photo - Quesnel Cariboo Observer)
Bolin first party leader to visit Quesnel

The B.C. Conservative Pary’s leader made the stop to support Kyle Townsend

Provincial health officer Dr. Bonnie Henry presents modelling of COVID-19 spread in B.C., March 25, 2020. (B.C. government photo)
B.C. sets another COVID-19 record with 203 new cases

up to 1,766 active cases in B.C., two more deaths

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Prime Minister Justin Trudeau arrives on Parliament Hill in Ottawa on Monday, Oct. 19, 2020, following a week-long break for the House of Commons. THE CANADIAN PRESS/Sean Kilpatrick
One crisis after another for Trudeau since last federal election one year ago

It has been a year of unprecedented calamity and crisis

Rio Tinto Alcan’s aluminum smelter at Kitimat competes against producers in the Middle East and Russia that have no carbon tax. (Rio Tinto)
B.C. carbon tax highest in Canada, export industries unprotected

B.C. NDP, B.C. Liberals say they’re looking at exemptions

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

(Pixabay)
Vancouver teacher suspended after swearing, touching students and complimenting underwear

McCabe touched students, including rubbing their backs and necks, touching their hair and hugging them

A glimpse of some of the 480 (approx) cars written off as a result of the acid spills along the Trail highway in 2018. Photo: Trail Times
2 years after huge highway acid spill, Kootenay Ford dealer’s frustration grows with ICBC

Trail AM Ford owner Dan Ashman says he just wants fair compensation from ICBC

Mail-in ballot from Elections BC (Katya Slepian/Black Press Media)
At least 26% of eligible voters have already cast their ballot, Elections BC says

Voters can cast a ballot until 8 p.m PST on Election Day

Most Read