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

Prince Rupert couple Alvin Tait and Loni Martin have postponed their wedding two times due to COVID-19 affecting the marriage rates in Prince Rupert. (Photo: supplied/L.Martin)
No marriages in Prince Rupert in 2021 so far

Weddings down 23.9% in P.R. since COVID-19 with B.C. wedding industry loss at $158 million

Three North Coast organizations are granted funding to promote multiculturalism and support anti-racism, Jennifer Rice MLA announced on April 8. Conrad Elementary School students recognized the first Black Shirt Day on January 15, 2021, to advocate for anti-racism. (Photo: K-J Millar/The Northern View)
North Coast organizations to benefit from anti-racism funding

$944,000 granted in provincial funding to aid multiculturalism

Restaurant patrons enjoy the weather on a patio in Vancouver, B.C., Monday, April 5, 2021. The province has suspended indoor dining at restaurants and pubs until at least April 19 in B.C. due to a spike in COVID-19 numbers. THE CANADIAN PRESS/Jonathan Hayward
B.C. sets new COVID-19 daily record with 1,293 cases Thursday

New order allows workplace closures when infections found

The new 3,500 hectare conservancy in Tahltan territory is located next to Mount Edziza Provincial Park. (BC Parks Photo)
New conservancy protects sacred Tahltan land near Mount Edziza Provincial Park

Project is a collaboration between Skeena Resources, conservation groups and the TCG

Heavy wet snow fell in Prince Rupert on April 7, making the dock a Rushbrook slippery for vehicles. (Photo: K-J Millar/The Northern View)
Three back-to-back weather systems with snow down to sea level

April showers are supposed to bring May flowers — but not in Prince Rupert.

B.C. Health Minister Adrian Dix and Premier John Horgan describe vaccine rollout at the legislature, March 29, 2021. (B.C. government)
1,262 more COVID-19 infections in B.C. Friday, 9,574 active cases

Province’s mass vaccination reaches one million people

Robinson Russ, 37, was fatally stabbed on April 4, according to a statement from police. THE CANADIAN PRESS/Darryl Dyck
Vancouver police name victim following city’s fourth homicide of 2021

Robinson Russ, 37, was fatally stabbed Sunday in the Downtown Eastside

A man wears a face mask past the emergency department of the Vancouver General Hospital. (THE CANADIAN PRESS/Jonathan Hayward)
Calls for stricter action in B.C. as COVID-19 variants projected to climb

Jens von Bergmann says the province has taken a ‘wait and see’ approach when early action is needed

Vancouver’s park board general manager issued a new order Friday restricting tents and other temporary structures from being set up in Strathcona Park after April 30, 2021. THE CANADIAN PRESS/Jonathan Hayward
Vancouver park board issues order to restrict tents in Strathcona Park

The order issued Friday restricted tents and other temporary structures from being set up after April 30

Vancouver Canucks general manager Jim Benning says the players who’ve tested positive for COVID-19 are recovering and the team still intends to play a 56-game season. THE CANADIAN PRESS/Darryl Dyck
Canucks players ‘mostly on the other side’ of COVID outbreak: general manager

The athletes have had a “whole range” of COVID-19 symptoms, said team physician Dr. Jim Bovard, but no one has needed to be hospitalized

Police are investigating after a man was shot Thursday, April 8 while sitting in a car in Vancouver. (Black Press files)
Man shot in Vancouver while sitting in a parked car: police

The victim is currently in critical condition. Police say no arrests have been made.

Teachers from SD42 and other districts in the Lower Mainland flocked to Surrey on Tuesday in the hopes of getting a COVID-19 vaccine. (Sheelagh Brothers/Twitter)
Don’t line up for vaccines unless asked to come, Dr. Bonnie Henry warns

Social media post shows teachers lining up outside of Surrey clinic for leftover doses

Vernon North Okanagan RCMP is seeking public tips regarding a break-in that left multiple people injured in Vernon Saturday, March 6, 2021. (Phil McLachlan - Capital News)
Cariboo teacher charged in child exploitation case

Charge laid against teacher at Peter Skene Ogden

Most Read