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

Leila Bui with her parents Tuan (left) and Kierry Bui. The family says they are relieved the trial process has come to close Monday morning with Tenessa Nikirk found guilty of dangerous driving causing bodily harm. (Black Press Media file photo)
Sentencing begins for Peninsula woman convicted of hitting Saanich girl

Leila Bui has been in a non-responsive state since she was hit in 2017

VicPD and B.C. Conservation Officer Service teamed up to free two bucks who were entangled in a fishing net and dragging a wheelbarrow sized piece of driftwood behind them. (VicPD)
VIDEO: Victoria police, B.C. Conservation help two bucks caught in one fishing net

Bucks were also dragging a wheelbarrow sized piece of driftwood behind them

Victoria police are looking for high-risk offender Douglas McPherson. (Courtesy of VicPD)
High-risk parolee with history of bank robbery believed to be in Victoria

Police ask for public’s help locating 64-year-old parolee

(Black Press Media file photo)
Police arrest suspect in Saanich liquor store break and enters

Windowpane removal key component in string of thefts

A development proposed for Victoria’s Old Town would include 274 rental units. (Rendering by Integra Architecture)
274-unit rental development proposed for Victoria’s Old Town

Project would take take over block with tire shop, parking lots

NDP Leader John Horgan celebrates his election win in the British Columbia provincial election in downtown Vancouver, B.C., Saturday, Oct. 24, 2020. THE CANADIAN PRESS/Jonathan Hayward
Horgan celebrates projected majority NDP government, but no deadline for $1,000 deposit

Premier-elect says majority government will allow him to tackle issues across all of B.C.

B.C. Liberal Leader Andrew Wilkinson speaks during a drive-in car rally campaign stop at a tour bus operator, in Delta, Saturday, Oct. 17, 2020. THE CANADIAN PRESS/Darryl Dyck
Andrew Wilkinson stepping down as B.C. Liberal leader

Will stay on until the next party leader is chosen

Campbell River's new hospital, July 2018
Nurse diverts opiates and falsifies records at Campbell River Hospital

Nurse facing disciplinary action for moving opiates out of the hospital

A view from the deck of a home in SookePoint. The property is a prize in the VGH and UBC Hospital Foundation Millionaire Lottery. Tickets are on sale now. (Contributed photo)
Millionaire Lottery home up for grabs in Sooke

Sooke prize home part of latest VGH and UBC Hospital Foundation Millionaire Lottery

FILE – B.C. Lions and Toronto Argonauts owner, Senator David Braley speaks after the CFL announced Vancouver will host the 2014 Grey Cup championship football game during a news conference in Vancouver, B.C., on Friday March 8, 2013. THE CANADIAN PRESS/Darryl Dyck
BC Lions owner David Braley dead at 79

Braley had bought the CFL team prior to 1997 season

Wind and waves were part of the reason why the Sail Canada High Performance Team selected HMCS Quadra as the winter training base for Tokyo 2021. Photo by Ken Dool
National sailing team prepares for Olympics at Vancouver Island location

HMCS Quadra is serving as the winter training base for the Canadian… Continue reading

NDP Leader John Horgan speaks with the owner of a barber shop while campaigning in Pitt Meadows, B.C., on Friday, Oct. 16, 2020. Campaigning was restricted by the coronavirus pandemic. THE CANADIAN PRESS/Darryl Dyck
Horgan’s B.C. majority came with historically low voter turnout

Barely half of eligible voters cast ballots in snap election

Most Read