Language selection

Search

Chapter 2
Supporting Canadians through the Pandemic

2.1 A Plan for the Coming Months

Since this crisis began, the government has invested $407 billion – nearly 19 per cent of Canada’s GDP – to support our public health care systems, provide direct income benefits to Canadians, and bridge businesses through the crisis and deep into 2021, creating certainty for people and businesses when it’s needed most.

The government is delivering scalable and targeted support to keep Canadians healthy, safe and solvent. To date, the government has committed:

Programs like the Canada Emergency Wage Subsidy have helped protect over 3.9 million jobs, while the Canada Emergency Business Account has helped over 790,000 small businesses and not-for-profits keep their doors open. As of October, almost 80 per cent of the more than 3 million jobs lost at the outset of the pandemic have been recouped.

The extraordinary measures taken by the Government of Canada have stabilized the economy, helped Canadians and Canadian businesses stay strong through this crisis and prevented economic scarring. The government’s plan will continue to do this through the second wave.

Across Canada, COVID-19 cases continue to rise. As the crisis has evolved, so too have the government’s support measures. Canadians and Canadian businesses can rest assured that for as long as the pandemic lasts, the federal government will provide the support they need. These federal support measures will allow communities to make the difficult decisions to protect peoples’ health, without being forced to bear the full economic costs of shutdowns.

The government is also committed to helping more women get back into the workforce and ensuring that Canada’s plan continues to respond to the impacts of COVID-19 on diverse groups of Canadians.

The federal government knows that the best economic policy is a strong public health policy.

2.1.1 The Canada Emergency Wage Subsidy

The Government of Canada is committed to doing whatever it takes to protect Canadians’ jobs. The Canada Emergency Wage Subsidy has been central to the government’s response, helping protect over 3.9 million jobs. The wage subsidy supports workers to stay connected to their jobs and helps businesses remain open or re-open, which will help employees, employers and the whole country recover from this crisis faster.

Figure 2.1
Canada Emergency Wage Subsidy Take-up
Figure 2.1: Canada Emergency Wage Subsidy Take-up

Text version
This figure illustrates the Canadian Emergency Wage Subsidy Take-up as of November 15, 2020. It shows that that over 3.9 million workers and over 350,000 employers received support through CEWS, with over $49 billion in payments.

The government has extended the Canada Emergency Wage Subsidy until June 2021, as committed to in the Speech from the Throne. As Canadians and Canadian businesses face the resurgence of the virus, this extension will give workers and employers certainty and stability over the coming months.

In October, the government announced enhancements to the program, such as allowing the subsidy rates to remain at their current level so that the maximum subsidy rate of 65 per cent of eligible wages would remain until December 19, 2020. In addition, the wage subsidy is now more flexible and responsive, allowing employers to access the maximum subsidy rate based on a single month’s revenue decline instead of having to demonstrate three months’ decline, giving employers support that better reflects their current or evolving needs.

Recognizing that we will face a difficult winter with the second wave, and that public health restrictions pose ongoing challenges to employers, the government wants to make sure businesses and workers have the support they need in the coming months.

The government will continue to monitor health and economic conditions to determine details for subsequent periods.

Thea and Hugo run a commercial laundry service. Their client hotels and inns were shut down temporarily in the spring, but Thea and Hugo managed to keep other clients.

Now facing a resurgence of the virus in their community, revenues in November are down 70 per cent from their levels last year and they anticipate revenues in December and January will be down by the same amount. Because of this, they are considering reducing staff. They are working to maintain 10 full-time employees, each being paid $600 per week for a total weekly payroll of $6,000.

As a result of recent enhancements to the Canada Emergency Wage Subsidy in October, Thea and Hugo’s business will qualify for the maximum subsidy rate of 65 per cent until December 19, 2020. This will provide them a total wage subsidy of $15,600 for October 25 to November 21, and again for November 22 to December 19, helping keep all their employees.

As a result of the increased maximum subsidy rate announced today, as their business continues to struggle over the coming months, it will qualify for the subsidy rate of 75 per cent in the following period, resulting in a total wage subsidy of $18,000 for the next period, an increase of $2,400.

2.1.2 Enhancements to Employment Insurance

While many Canadians have returned to work since the spring, the uneven and evolving public health environment means that many continue to face challenges in finding and keeping work. To ensure Canadians have the support they need, the government announced temporary changes for one year that have made the Employment Insurance (EI) program more simple, flexible and generous. This will not only provide people with the income support to afford the basics, it will also get people ready to re-enter the labour market by giving them access to EI-funded training and employment support.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Economic Participation and Prosperity

Compared to fathers, mothers are more likely to work part-time or fewer hours, which may affect their ability to qualify for Employment Insurance (EI). In 2019, a mother with a youngest child aged 0-5 years had a labour force participation rate of 75 per cent, compared to 95 per cent for fathers with a child in the same group. Even when mothers did work, they were 17 per cent less likely to work full-time, and when they did work full-time, they worked, on average, 4 hours less per week. A more flexible EI system is designed to address the extraordinary impacts of the pandemic on workforce participation.

EI benefits will now be available to more vulnerable Canadians, including many women who would not have had enough insurable hours of work to qualify in the past, supporting an additional 400,000 people through the program.

2.1.3 Canada Recovery Benefits

The Canada Emergency Response Benefit provided emergency income support to millions of Canadians. Since the end of the program, 2 million claimants have applied to the simplified Employment Insurance system but many Canadians were still not eligible for EI. The government launched three new income support benefits for these workers—those who continued to be unable to work for reasons related to COVID-19, such as providing care to a relative. The Canada Recovery Benefits are available to self-employed Canadians and gig workers, as well as workers who have not lost their job but have seen significant income loss due to COVID-19. To date, 1.5 million Canadians have applied to receive one of these benefits. The benefits are available until September 25, 2021.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Economic Participation and Prosperity

COVID-19 has put a spotlight on the value of unpaid care work for society and the economy – the majority of which is done by women. In particular, in 2015, women aged 25-54 years spent 90 minutes more per day on unpaid domestic and care work than men. Additionally, Oxfam reports that according to a national poll conducted by Leger of 1,523 Canadians between June 5 and June 7, 2020, 71 per cent of women surveyed reported feeling more anxious, depressed, isolated, overworked, or ill because of shouldering even more unpaid care work as a result of the COVID-19 crisis. Indigenous and Black Canadians reported greater difficulties due to increased unpaid care work caused by COVID-19 than their white peers, and Indigenous respondents were three times as likely as white respondents to say that increased unpaid care responsibilities had affected their economic opportunities and that they have had to give up looking for paid work.

Figure 2.2
Transitioning Income Support from the CERB to Recovery Benefits and Enhanced Employment Insurance
Figure 2.2: Transitioning Income Support from the CERB to Recovery Benefits and Enhanced Employment Insurance
Text version
This figure illustrates the sustained income support to Canadians. It shows that between March 15, 2020 and September 26, 2020, the Canada Emergency Response Benefit (CERB) was available for Canadians unable to work due to COVID-19. As of September 27, 2020, the CERB was replaced by three new temporary benefits - the Canada Recovery Benefit, the Canada Recovery Sickness Benefit, and the Canada Recovery Caregiving Benefit - and by temporary enhancements to Employment Insurance. These measures will be available until September 25, 2021.

Amirah lives outside of Montréal and worked part time as a tour guide from June to September after the initial lockdown. Amirah had been able to accumulate only 400 hours of insurable employment when restriction measures were imposed again. Under normal EI rules this would not have qualified her for EI regular benefits. However, thanks to the temporary changes to EI, she has more than the minimum 120 hours of work required and can qualify for at least 26 weeks of EI regular benefits at a minimum amount of $500 per week. This will give her the time and flexibility to find a new job.

Her husband, Ben, is a self-employed graphic designer. He earned $34,000 in 2019, but his business has slowed due to COVID-19 and he claimed the CERB over the spring and summer. Although he has started working again this fall, his weekly income is still more than 50 per cent below what he would have normally earned before the pandemic. With the new Canada Recovery Benefit, Ben is eligible for $500 per week in income support for up to 26 weeks.

2.1.4 The Canada Emergency Rent Subsidy

Business owners have worked hard to adapt to the pandemic—finding ways to offer services online, providing delivery options, reducing store hours, updating factories to make them safer for workers, or investing in PPE. Even so, for many, revenues are still down, while costs like rent and mortgages stay the same. The recently launched Canada Emergency Rent Subsidy provides direct and easy-to-access rent and mortgage support from September 27, 2020 until June 2021 for qualifying organizations affected by COVID-19.

This program lets business owners apply directly, without going through landlords. The rent subsidy is provided to eligible tenants and property owners, supporting businesses, charities, and non-profits that have suffered a revenue drop, by subsidizing eligible expenses. The current rate provides a subsidy, on a sliding scale, up to a maximum of 65 per cent until December 19, 2020.

Since launching on November 23, applicants have been able to use the rent subsidy towards rent payable. The government will soon introduce legislation to formalize this as an eligible expense.

Graham operates a local chain of three gyms on rented property. Revenues were down 70 per cent in October. His total rent for all three locations was $30,000 from September 27 to October 24. This means that he would be eligible for the maximum rent subsidy of 65 per cent. Graham would receive $19,500 to help cover rent.

2.1.5 Lockdown Support

Under the new Lockdown Support program, organizations that are subject to a lockdown and must shut their doors or significantly restrict their activities under a public health order are eligible for an additional 25 per cent top-up, in addition to the Canada Emergency Rent Subsidy base subsidy of up to 65 per cent, until December 19, 2020.

This means hard-hit businesses can receive up to 90 per cent support for rent.

Pascale owns a restaurant. Her restaurant was forced to close the dining room on October 1st due to public health restrictions. Pascale is working on developing a take-out service but her revenues are down 80 per cent. Pascale continues to incur mortgage interest, property tax, and property insurance on her property. Between September 27 and October 24, those costs amounted to $20,000. Pascale would be eligible for a 65 per cent rent subsidy, plus Lockdown Support of 25 per cent for the 24 days the restaurant was closed under public health restrictions. Pascale would receive $17,286 to cover her mortgage interest, property tax, and property insurance.

2.1.6 The Canada Emergency Business Account

To date, the Canada Emergency Business Account (CEBA) has provided over 790,000 small businesses and non-profits with interest-free loans, partially forgivable if paid back by December 31, 2022.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Leadership and Democratic Participation

As of September/October 2020, half (54 per cent) of businesses in Canada had applied for and received the CEBA. Businesses that were majority-owned by Indigenous persons (56 per cent), immigrants (61 per cent), members of LGBTQ2 communities (57 per cent) and visible minorities (61 per cent) were more likely to report applying for and receiving the CEBA than those that were majority-owned by women (50 per cent) and persons with a disability (49 per cent).

Initially providing loans of up to $40,000, with up to $10,000 forgivable, the CEBA program will soon be expanded, allowing qualifying businesses to access an additional interest-free $20,000 loan, in situations where there is need. Half of this additional amount, up to $10,000, would be forgivable if the loan is repaid by December 31, 2022.

The government recently extended the availability of the CEBA program to small businesses that have not been operating from a commercial banking account. These small businesses are now able to apply for the CEBA, provided that they have successfully opened a new commercial account and fully meet the eligibility requirements of the program.

Loans are provided through financial institutions, such as banks and credit unions, in cooperation with Export Development Canada. The deadline to apply for a CEBA loan has been extended to March 31, 2021.

These enhancements demonstrate the government’s commitment to stand by small businesses to ensure they can continue to support families and communities across the country.

Suzie runs a coffee shop. She has two full-time and two part-time employees. Under COVID-19 restrictions, she has had to scale down indoor dining services and shift to take-out options only. Due to the drop in customers and sales, Suzie has lost about half of her revenue.

This summer, with the large decline in revenue but ongoing costs for wages, rent and other expenses, Suzie was worried about the future of her business and whether to lay off her staff. She contacted her bank for options and was able to access an interest-free, partially forgivable loan of $40,000 under the Canada Emergency Business Account (CEBA). In combination with other financial supports, this helped to cover a portion of employee salaries, allowing Suzie to keep her employees and even bring back the part-time staff. She was also able to use the loan towards insurance, utilities, and other bills. If she pays back the loan before December 31, 2022, $10,000 will be forgiven.

With the ongoing pandemic and the potential for further restrictions, Suzie may continue to face slow business and serious cash flow issues. This hardship would qualify her to access a further $20,000 in CEBA loans, $10,000 of which would be forgivable if also paid back by December 31, 2022, helping to keep her shop open.

Figure 2.3
Key Business Supports Available to Small Businesses
Figure 2.3: Key Business Supports Available to Small Businesses
Text version
This figure illustrates the key supports provided to small businesses under Canada's COVID-19 Economic Response Plan. It groups these supports into three areas - salaries and wages, rent and commercial mortgage interest and credit support. Under Salaries and Wages, small businesses can benefit from the Canada Emergency Wage Subsidy. For rent and commercial mortgage interest, small businesses can benefit from the Canada Emergency Rent Subsidy and Lockdown Support. Finally, for credit support, small businesses can benefit from the Canada Emergency Business Account.

2.1.7 Support for Highly Affected Sectors

As outlined in the Speech from the Throne, some businesses, particularly those in highly-affected sectors like tourism and hospitality, have struggled to access sufficient financing. To help address this challenge and bridge these businesses through the crisis, the government proposes to work with financial institutions in the near term to offer loans on more generous terms to the hardest hit businesses, to help ensure they remain viable and in place to drive future economic growth:

The government will provide details on the Highly Affected Sectors Credit Availability Program soon.

2.1.8 Regional Relief and Recovery Fund

Businesses, workers and communities in every corner of Canada have been impacted by COVID-19. To help support those businesses unable to access other federal pandemic support programs, the government announced the $962-million Regional Relief and Recovery Fund on April 17, providing significant funding through Canada’s Regional Development Agencies. The government increased funding on October 2, bringing total support to more than $1.5 billion.

To date, this program has protected over 102,000 jobs and supported over 14,700 businesses, including over 8,500 clients in rural areas and 5,100 women-owned businesses.

2.1.9 Support for Tourism and Hospitality

Communities across Canada have been hit hard by the decline in tourism. Approximately 750,000 workers and 2 per cent of Canada’s GDP are attributed to tourism. Small and medium sized firms dominate the tourism sector and it employs a higher proportion of youth, women and Indigenous people compared to their share of the workforce. Domestic and international tourism is also a key economic generator and an important source of jobs in many rural and northern regions of the country.

Pandemic restrictions have taken a toll on Canada’s tourism industry—on jobs, businesses and communities—and it is expected that the uncertainty will persist into 2021. The recently launched Canada Emergency Rent Subsidy and Lockdown Support, enhanced Canada Emergency Business Account, and Canada Emergency Wage Subsidy at the proposed new maximum subsidy rate of 75 per cent, along with the new Highly Affected Sectors Credit Availability Program, will continue to provide a robust backstop for the sector in the months ahead. These programs have been designed with diverse, hard hit sectors like tourism and hospitality in mind. To date, approximately $9.7 billion is estimated to have flowed to businesses in these sectors through the Canada Emergency Wage Subsidy, Canada Emergency Business Account and the Canada Emergency Commercial Rent Assistance.

The Regional Relief and Recovery Fund has provided $202 million in support to 2,830 tourism-related businesses.

The government will continue to work with partners and stakeholders to identify the best ways to support the longer term rebound and recovery of this important sector.

2.1.10 Support for Workers in the Live Events and Arts Sectors

Cultural and recreation industries, which employ hundreds of thousands of Canadians, have been particularly hard hit by the pandemic, being among the first to shut down and likely among the last to return to regular activities. The COVID-19 pandemic has resulted in the near complete suspension of live events and arts presentations, affecting thousands of self-employed and freelance artists and event workers across the country. The pandemic has also has resulted in the drastic reduction of advertising revenues for Canadian broadcasting companies, including local television and radio stations on whom many Canadians rely for their news and entertainment.

The government understands that certain major live events and festivals will require unique support. The government will work with industry to prevent the closure of unique and irreplaceable flagship events and festivals across Canada, and to ensure the survival of key, globally-recognized assets in this sector.

To address the impact of COVID-19 on film and television productions across the country, the government announced a $50 million Short-Term Compensation Fund in September 2020. This initiative is compensating for the lack of insurance coverage for COVID-19–related filming interruptions and production shutdowns, allowing the industry to continue with its operations.

2.1.11 Support for the Air Sector

Canada is a vast country, and we rely more on air travel than others. Carriers have cut routes during the pandemic, leaving Canadians in certain communities with limited mobility and limited access to essential goods and services. Since the beginning of the pandemic, the government has announced $192 million to support essential air services to remote and northern communities. The funding is helping to ensure these communities have continued access to food, medical supplies, and other essential goods and services.

Canada’s air travel system directly employs over 100,000 Canadians. However, COVID-19 and related health restrictions have caused Canada’s air sector to suffer a near collapse in passenger travel. This is threatening the viability of our airlines and airports, and most importantly, the people who work there and the communities that rely on them. Since the beginning of the pandemic, air sector workers have received over $1.4 billion in support through the Canada Emergency Wage Subsidy.

The government is committed to ensuring that Canada’s air sector continues to connect Canadians and Canadian marketplaces, as part of a dynamic aerospace industry. However, since the beginning of the pandemic, we have heard from many Canadians who had booked travel and ended up stuck with vouchers for trips they could not take instead of getting refunds. The government is establishing a process with major airlines regarding financial assistance. As part of this process, the government will ensure Canadians are refunded for cancelled flights.

2.1.12 Support for Innovative Businesses

2.1.13 Large Employer Emergency Financing Facility

In May 2020, the government launched the Large Employer Emergency Financing Facility (LEEFF) to make bridge credit financing available to large Canadian businesses whose needs during the pandemic are not being met through conventional financing. The objective of this support is to help protect Canadian jobs, help Canadian businesses weather the current economic challenges, and avoid bankruptcies of otherwise viable firms where possible.

The government is exploring options to enhance the LEEFF program, to respond to the specific liquidity needs of a greater number of large Canadian businesses.

2.2 An Unprecedented Economic Shock

The COVID-19 pandemic has brought about the deepest and fastest recession, worldwide, since the Great Depression (Chart 2.1). The public health measures necessary to contain rapidly rising case numbers and save lives caused a sudden and unprecedented impact on the global economy over the first half of 2020. The collapse in economic activity was most severe in advanced countries, with G7 economies contracting by between 8.7 per cent in Japan and 21.8 per cent in the United Kingdom. The drop in Canada’s real GDP was the fourth largest in the G7 at 13.4 per cent over the first half of 2020. Even after accounting for the expected rebound in activity in the third quarter of the year, the International Monetary Fund (IMF) projects global growth to contract 4.4 per cent in 2020.

Here at home, the shock to the Canadian economy caused by the spread of COVID-19 was historically sudden and deep. The decline in real GDP in the second quarter was, by far, the largest on record, with much of the damage occurring over a very short time from mid-March to the end of April. Over this period, more than 3 million Canadians lost their jobs and the employment rate for Canadians aged 15 to 64 fell from record highs to record lows (Chart 2.2).

Chart 2.1
Annual Real GDP Growth, Canada
Chart 2.1: Annual Real GDP Growth, Canada

Note: Last data point is 2020.

Sources: Statistics Canada; Department of Finance Canada September 2020 survey of private sector economists.

Text version
Annual Real GDP Growth, Canada
  Per cent
1930 -3.3
1931 -15.4
1932 -7.1
1933 -7.1
1934 10.6
1935 8.1
1936 5.4
1937 9.4
1938 2.6
1939 6
1940 13.7
1941 14
1942 17.7
1943 4.5
1944 3.8
1945 -3.1
1946 -1
1947 4.4
1948 1.8
1949 2.2
1950 7.4
1951 5.7
1952 7.3
1953 4.7
1954 -0.7
1955 9.3
1956 8.1
1957 2.9
1958 1.8
1959 4.1
1960 3.1
1961 3
1962 7.4
1963 5.4
1964 6.6
1965 6.3
1966 6.7
1967 3.1
1968 5
1969 5
1970 3
1971 4
1972 5.5
1973 6.8
1974 3.3
1975 1.5
1976 5.9
1977 3.4
1978 3.7
1979 3.7
1980 2.2
1981 3.5
1982 -3.2
1983 2.6
1984 5.9
1985 4.7
1986 2.1
1987 4.1
1988 4.4
1989 2.3
1990 0.2
1991 -2.1
1992 0.9
1993 2.7
1994 4.5
1995 2.7
1996 1.6
1997 4.3
1998 3.9
1999 5.2
2000 5.2
2001 1.8
2002 3
2003 1.8
2004 3.1
2005 3.2
2006 2.6
2007 2.1
2008 1
2009 -2.9
2010 3.1
2011 3.1
2012 1.8
2013 2.3
2014 2.9
2015 0.7
2016 1
2017 3
2018 2.4
2019 1.9
2020 -5.8
Chart 2.2
Share of Canadians Age 15-64 Employed
Chart 2.2: Share of Canadians Age 15-64 Employed

Note: Last data point is April 2020.

Source: Statistics Canada

Text version
Share of Canadians Age 15-64 Employed
  %
January 63
1976
February 63.1
1976
March 63.2
1976
April 63.3
1976
May 63.2
1976
June 63.1
1976
July 63
1976
August 63
1976
September 63.1
1976
October 62.9
1976
November 63.1
1976
December 63.3
1976
January 63.2
1977
February 63.1
1977
March 63
1977
April 63.1
1977
May 63.1
1977
June 62.9
1977
July 62.8
1977
August 62.8
1977
September 62.8
1977
October 62.9
1977
November 62.9
1977
December 63
1977
January 63
1978
February 63.2
1978
March 63.3
1978
April 63.4
1978
May 63.4
1978
June 63.6
1978
July 63.9
1978
August 64
1978
September 64
1978
October 64.3
1978
November 64.4
1978
December 64.5
1978
January 64.8
1979
February 64.7
1979
March 64.9
1979
April 64.9
1979
May 65.2
1979
June 65.3
1979
July 65.6
1979
August 65.8
1979
September 65.7
1979
October 65.9
1979
November 66
1979
December 66
1979
January 66.1
1980
February 66
1980
March 65.9
1980
April 66
1980
May 65.7
1980
June 65.9
1980
July 65.8
1980
August 66
1980
September 66.2
1980
October 66.4
1980
November 66.5
1980
December 66.5
1980
January 66.8
1981
February 67.2
1981
March 67.1
1981
April 67.2
1981
May 67.4
1981
June 67.5
1981
July 67.3
1981
August 67.3
1981
September 66.9
1981
October 66.7
1981
November 66.6
1981
December 66.1
1981
January 65.9
1982
February 65.6
1982
March 65.4
1982
April 64.8
1982
May 64.5
1982
June 63.9
1982
July 63.5
1982
August 63.1
1982
September 62.9
1982
October 62.8
1982
November 62.7
1982
December 62.7
1982
January 62.7
1983
February 62.8
1983
March 63
1983
April 63.2
1983
May 63.3
1983
June 63.7
1983
July 63.9
1983
August 64.2
1983
September 64.4
1983
October 64.3
1983
November 64.3
1983
December 64.4
1983
January 64.2
1984
February 64.3
1984
March 64.2
1984
April 64.1
1984
May 64.3
1984
June 64.7
1984
July 64.8
1984
August 64.7
1984
September 64.9
1984
October 64.9
1984
November 64.9
1984
December 65.1
1984
January 65.3
1985
February 65.4
1985
March 65.5
1985
April 65.6
1985
May 65.9
1985
June 65.9
1985
July 66.1
1985
August 66.2
1985
September 66.2
1985
October 66.3
1985
November 66.6
1985
December 66.9
1985
January 67.1
1986
February 67.1
1986
March 67.1
1986
April 67.5
1986
May 67.4
1986
June 67.5
1986
July 67.4
1986
August 67.4
1986
September 67.4
1986
October 67.5
1986
November 67.6
1986
December 67.6
1986
January 67.6
1987
February 67.8
1987
March 68
1987
April 68.2
1987
May 68.5
1987
June 68.5
1987
July 68.6
1987
August 68.7
1987
September 68.9
1987
October 69.2
1987
November 69.4
1987
December 69.7
1987
January 69.7
1988
February 69.9
1988
March 69.9
1988
April 70
1988
May 70
1988
June 69.9
1988
July 70
1988
August 70
1988
September 69.9
1988
October 70.1
1988
November 70.2
1988
December 70.4
1988
January 70.7
1989
February 70.7
1989
March 70.9
1989
April 70.7
1989
May 70.6
1989
June 70.7
1989
July 70.7
1989
August 70.9
1989
September 70.8
1989
October 70.8
1989
November 70.8
1989
December 70.8
1989
January 70.8
1990
February 70.9
1990
March 70.7
1990
April 70.8
1990
May 70.5
1990
June 70.6
1990
July 70.5
1990
August 70.4
1990
September 70.2
1990
October 69.9
1990
November 69.5
1990
December 69.2
1990
January 68.8
1991
February 68.5
1991
March 68.2
1991
April 68.4
1991
May 68.4
1991
June 68.4
1991
July 68.3
1991
August 68.2
1991
September 68.1
1991
October 68.2
1991
November 67.8
1991
December 67.6
1991
January 67.4
1992
February 67.3
1992
March 67
1992
April 67
1992
May 66.9
1992
June 66.7
1992
July 66.7
1992
August 66.4
1992
September 66.5
1992
October 66.6
1992
November 66.5
1992
December 66.5
1992
January 66.6
1993
February 66.7
1993
March 66.6
1993
April 66.4
1993
May 66.3
1993
June 66.4
1993
July 66.4
1993
August 66.4
1993
September 66.5
1993
October 66.5
1993
November 66.6
1993
December 66.4
1993
January 66.3
1994
February 66.5
1994
March 66.5
1994
April 66.6
1994
May 66.9
1994
June 67
1994
July 67.2
1994
August 67.3
1994
September 67.5
1994
October 67.5
1994
November 67.8
1994
December 67.7
1994
January 67.7
1995
February 67.6
1995
March 67.7
1995
April 67.6
1995
May 67.4
1995
June 67.5
1995
July 67.4
1995
August 67.4
1995
September 67.5
1995
October 67.6
1995
November 67.4
1995
December 67.5
1995
January 67.4
1996
February 67.5
1996
March 67.3
1996
April 67.4
1996
May 67.4
1996
June 67.4
1996
July 67.4
1996
August 67.5
1996
September 67.1
1996
October 67.1
1996
November 67.2
1996
December 67.3
1996
January 67.5
1997
February 67.5
1997
March 67.6
1997
April 67.5
1997
May 67.7
1997
June 67.9
1997
July 68
1997
August 68.3
1997
September 68.3
1997
October 68.4
1997
November 68.4
1997
December 68.5
1997
January 68.3
1998
February 68.6
1998
March 68.7
1998
April 68.8
1998
May 68.7
1998
June 68.7
1998
July 68.9
1998
August 69.1
1998
September 69.2
1998
October 69.3
1998
November 69.4
1998
December 69.4
1998
January 69.7
1999
February 69.6
1999
March 69.6
1999
April 69.8
1999
May 69.9
1999
June 69.9
1999
July 70.1
1999
August 70.1
1999
September 70.2
1999
October 70.3
1999
November 70.5
1999
December 70.7
1999
January 70.8
2000
February 70.9
2000
March 70.9
2000
April 70.9
2000
May 70.9
2000
June 70.9
2000
July 70.8
2000
August 70.8
2000
September 70.9
2000
October 71.1
2000
November 71.1
2000
December 71.2
2000
January 71.1
2001
February 71
2001
March 71
2001
April 71
2001
May 71
2001
June 70.8
2001
July 70.8
2001
August 70.7
2001
September 70.7
2001
October 70.7
2001
November 70.7
2001
December 70.4
2001
January 70.7
2002
February 70.6
2002
March 70.9
2002
April 71
2002
May 71.2
2002
June 71.4
2002
July 71.6
2002
August 71.9
2002
September 71.8
2002
October 71.7
2002
November 71.8
2002
December 72
2002
January 72.1
2003
February 72.2
2003
March 72.2
2003
April 72
2003
May 72
2003
June 72
2003
July 72.1
2003
August 72.1
2003
September 72.1
2003
October 72.2
2003
November 72.3
2003
December 72.5
2003
January 72.4
2004
February 72.4
2004
March 72.4
2004
April 72.5
2004
May 72.6
2004
June 72.6
2004
July 72.5
2004
August 72.4
2004
September 72.5
2004
October 72.5
2004
November 72.5
2004
December 72.5
2004
January 72.5
2005
February 72.5
2005
March 72.5
2005
April 72.4
2005
May 72.3
2005
June 72.4
2005
July 72.4
2005
August 72.5
2005
September 72.3
2005
October 72.5
2005
November 72.6
2005
December 72.5
2005
January 72.4
2006
February 72.5
2006
March 72.7
2006
April 72.7
2006
May 73
2006
June 72.9
2006
July 72.9
2006
August 72.8
2006
September 72.8
2006
October 72.8
2006
November 72.9
2006
December 73.2
2006
January 73.3
2007
February 73.3
2007
March 73.5
2007
April 73.3
2007
May 73.4
2007
June 73.5
2007
July 73.7
2007
August 73.6
2007
September 73.6
2007
October 73.7
2007
November 73.7
2007
December 73.7
2007
January 73.7
2008
February 73.8
2008
March 73.7
2008
April 73.7
2008
May 73.7
2008
June 73.5
2008
July 73.4
2008
August 73.4
2008
September 73.5
2008
October 73.5
2008
November 73.1
2008
December 72.8
2008
January 72.3
2009
February 72
2009
March 71.9
2009
April 71.6
2009
May 71.3
2009
June 71.1
2009
July 71.1
2009
August 71
2009
September 71
2009
October 70.9
2009
November 71.3
2009
December 71.1
2009
January 71.3
2010
February 71.4
2010
March 71.3
2010
April 71.6
2010
May 71.6
2010
June 71.7
2010
July 71.6
2010
August 71.5
2010
September 71.3
2010
October 71.4
2010
November 71.6
2010
December 71.7
2010
January 71.9
2011
February 71.9
2011
March 71.9
2011
April 71.9
2011
May 71.8
2011
June 71.9
2011
July 72
2011
August 72
2011
September 72
2011
October 71.7
2011
November 71.7
2011
December 71.8
2011
January 71.7
2012
February 71.7
2012
March 71.9
2012
April 72.2
2012
May 72.1
2012
June 72.1
2012
July 72
2012
August 72.1
2012
September 72.3
2012
October 72.2
2012
November 72.3
2012
December 72.5
2012
January 72.5
2013
February 72.6
2013
March 72.3
2013
April 72.4
2013
May 72.6
2013
June 72.5
2013
July 72.4
2013
August 72.4
2013
September 72.4
2013
October 72.3
2013
November 72.3
2013
December 72.2
2013
January 72.3
2014
February 72.2
2014
March 72.3
2014
April 72.2
2014
May 72.2
2014
June 72.1
2014
July 72.3
2014
August 72.1
2014
September 72.3
2014
October 72.5
2014
November 72.5
2014
December 72.4
2014
January 72.4
2015
February 72.6
2015
March 72.6
2015
April 72.4
2015
May 72.6
2015
June 72.6
2015
July 72.7
2015
August 72.6
2015
September 72.6
2015
October 72.5
2015
November 72.4
2015
December 72.4
2015
January 72.5
2016
February 72.4
2016
March 72.5
2016
April 72.6
2016
May 72.5
2016
June 72.5
2016
July 72.3
2016
August 72.5
2016
September 72.7
2016
October 72.9
2016
November 72.8
2016
December 72.9
2016
January 73.3
2017
February 73.2
2017
March 73.3
2017
April 73.2
2017
May 73.4
2017
June 73.5
2017
July 73.5
2017
August 73.5
2017
September 73.4
2017
October 73.6
2017
November 73.8
2017
December 74
2017
January 73.6
2018
February 73.7
2018
March 73.8
2018
April 73.6
2018
May 73.5
2018
June 73.7
2018
July 73.9
2018
August 73.7
2018
September 73.9
2018
October 73.9
2018
November 74.2
2018
December 74.1
2018
January 74.2
2019
February 74.3
2019
March 74.2
2019
April 74.5
2019
May 74.6
2019
June 74.5
2019
July 74.4
2019
August 74.5
2019
September 74.6
2019
October 74.5
2019
November 74.3
2019
December 74.4
2019
January 74.5
2020
February 74.6
2020
Mar-2020 70.6
April 62.8
2020

This historic collapse in economic activity was felt across the economy. Activity in the housing market paused in the spring. Lockdowns and supply chain challenges forced many retailers, manufacturers and service providers to close their doors. Consumers drastically cut back their spending as they followed public health advice and stayed home. Public health measures and lower demand combined to substantially reduce revenues for many businesses. Essential workers continued to perform their jobs, which Canadians depend on, facing the dangers of the pandemic every day. Close-contact businesses in the hospitality, retail, entertainment and recreation industries, such asrestaurants, hotels, gyms, performance halls and sporting events, were hit especially hard, as were the many women, young people, racialized Canadians, and low-income workers who rely on these businesses for their livelihoods. The many small businesses in these sectors continue to face acute challenges (Charts 2.3 and 2.4).

Chart 2.3
Share of Small Businesses Fully Open, Selected Sectors
Chart 2.3: Share of Small Businesses Fully Open, Selected Sectors

Note: Last data point is November 4, 2020.

Source: Canadian Federation of Independent Business.

Text version
Share of Small Businesses Fully Open, Selected Sectors
  Arts, recreation & info. (%) Retail (%) Manufacturing (%) Construction (%) Hospitality (%)
March 12 36 57 47 7
26
April 7 15 34 26 4
2
April 7 14 30 21 5
9
April 10 13 32 21 5
16
April 10 15 35 25 5
23
April 9 15 34 31 5
30
May 9 16 40 34 4
7
May 10 22 47 42 5
14
May 14 29 52 54 7
21
June 17 41 58 67 9
5
June 21 48 67 73 15
11
June 24 51 67 77 18
18
June 27 51 71 79 26
25
July 34 56 72 83 28
2
July 29 56 72 82 29
16
July 35 60 72 86 32
30
August 44 61 73 87 35
13
August 42 61 77 90 36
26
September 44 63 76 87 32
23
October 43 68 82 87 37
22
November 36 65 81 86 30
4
Chart 2.4
Share of Businesses Reporting A Decline in Revenues of More than 50%, From April 2019 to April 2020
Chart 2.4: Share of Businesses Reporting A Decline in Revenues of More than 50%, From April 2019 to April 2020

Source: Statistics Canada (Canadian Survey on Business Conditions: Impact of COVID-19 on businesses in Canada).

Text version
Share of Businesses Reporting A Decline in Revenues of More than 50%, From April 2019 to April 2020
  Per cent
Accommodation and food service 62.3
All industries 35.3
Arts, entertainment and recreation 59.9
Construction 50.9
Transportation and warehousing 40.5
1 to 4 employees 37
5 to 19 employees 34
20 to 99 employees 32.5
100 or more employees 24.9

2.2.1 Millions of Jobs Were Lost

At the height of the spring lockdown, over 5.5 million Canadians were either laid off or working significantly reduced hours (Chart 2.5). The surge in the number of workers still employed but not working any hours was an atypical feature of this crisis, creating a need for new measures to help businesses retain their employees. Employment losses were highest in accommodation and food services (Chart 2.6), industries which disproportionately employ women, young people and new Canadians.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Economic Participation and Prosperity

Early labour market impacts from COVID-19 were more strongly felt among low-wage workers, with a 38 per cent decline in employment between February and April, compared to 13 per cent for all other employees. Women low-wage workers (41 per cent) fared worse than men low-wage workers (34 per cent). Very recent immigrants (five years or less) were also strongly affected, with employment declining 23 per cent from February to April, compared to 14 per cent for those born in Canada.

Chart 2.5
Workers Substantially Affected by COVID-19, April 2020
Chart 2.5: Workers Substantially Affected by COVID-19, April 2020

Source: Statistics Canada.

Text version
Workers Substantially Affected by COVID-19, April 2020
  Millions
Workers significantly impacted 5.512
Employed at significantly 2.5075
reduced hours
Laid-off, 1.075125
expecting re-hire
Laid-off, 1.929375
not expecting re-hire
Chart 2.6
Change in Employment by Industry, February 2020 to April 2020
Chart 2.6: Change in Employment by Industry, February 2020 to April 2020

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Change in Employment by Industry, February 2020 to April 2020
  Thousands
Accommodation & food service -615
Wholesale & retail trade -582.2
Construction -315.8
Manufacturing -301.6
Health care & social assist. -229.1
Inform., culture & recreation -185.7
Other services -183
Educational services -159.8
Transportation & warehouse -143.2
Business & building support -94.5
Professional services -74.2
Finance & real estate -45
Public administration -25.1
Natural resources -23
Agriculture -22
Utilities -5.3

2.2.2 Exposing Inequalities

This pandemic has laid bare – and in many cases deepened – the inequalities in Canadian society. The virus has disproportionately spread in low-income and racialized communities. Job and wage losses have been higher among young people, low-income workers, people living with disabilities, and women. Mothers with small children, racialized and newcomer women and the women who often take on the additional burden of unpaid care work, also have reduced access to community services and supports. Lower-wage workers, who were already vulnerable to income shocks given lower savings and reduced access to credit, also lost jobs in disproportionate numbers (Charts 2.7 and 2.8).

Chart 2.7
Declines in Employment by Select Groups, February 2020 to April 2020
Chart 2.7: Declines in Employment by Select Groups,
February 2020 to April 2020

Note: Working-age population (25-64) except for all workers (15+) and youth (15-24).

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Declines in Employment by Select Groups, February 2020 to April 2020
  All Workers Youth Single mothers High-school grad or less Recent immigrants Off-reserve Indigenous
April (%) -12.4806968 -34.7025 -20.4749 -18.07746575 -17.3592 -14.92921493
Chart 2.8
Share of Workers Laid-Off or with Substantially Reduced Hours in April 2020 by Weekly Earning Brackets
Chart 2.8: Share of Workers Laid-Off or with Substantially Reduced Hours in April 2020 by Weekly Earning Brackets

Note: Average weekly earnings by decile.

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Share of Workers Laid-Off or with Substantially Reduced Hours in April 2020 by Weekly Earning Brackets
  Up to $296 $297 to $520 $521 to $665 $666 to $788 $789 to $922 $923 to $1,071 $1,072 to $1,250 $1,251 to $1,538 $1,539 to $1,885 Over $1,886
Per cent 62 53.1 40.3 35.6 30.5 21.6 18.2 9.3 8.8 1.7

At the trough of the recession in April, youth employment declined by more than a third relative to February.

About 1.5 million fewer women were employed in April than in February. Employment among recent immigrants fell more sharply than it did for those born in Canada. Racialized Canadians also reported stronger labour market impacts. In a crowdsourcing survey conducted by Statistics Canada in late-May and early-June, 47 per cent of persons identifying as West Asian, 42 per cent of persons identifying as Filipino, 40 per cent of persons identifying as Korean and 40 per cent of persons identifying as Southeast Asian reported experiencing a job loss or reduced work hours, compared to 34 per cent of persons identifying as White.

Many Canadian families found themselves with limited options for child care. As a result, parents had to either juggle full time work while staying at home or opt to drop out of the labour force to look after their children. This represents yet another gap in our social safety net; prior to the pandemic access to affordable child care was a challenge and in the pandemic it became nearly unattainable. There were clear impacts on the employment of women who are mothers as well as on the primarily female and racialized Canadians who work in child care.  Women’s labour force participation rate has been reduced to its lowest level in three decades.

This year, millions of Canadians suddenly faced a loss of employment income. Over the first half of 2020, employment income fell by an unprecedented $32 billion, or a 10 per cent decline (Chart 2.9). The Employment Insurance system was flooded with millions of applications from Canadian workers, many of whom did not qualify for Employment Insurance. (Chart 2.10). This exposed the size of the gaps in Canada’s social safety net. Federal government supports, such as the CERB as well as the GST Credit and CCB top ups, have helped address income gaps.

Chart 2.9
Employment Income Declines During Previous Downturns
Chart 2.9: Employment Income Declines During Previous Downturns

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Employment Income Declines During Previous Downturns
  %
1981-82 -0.79014
1990-1991 No decline
2008-2009 -1.87142
2016 -0.90981
2020 -9.70865
Chart 2.10
Volumes of Claims for Employment Insurance Benefits Between March 16 and April 5, 2020
Chart 2.10: Volumes of Claims for Employment Insurance Benefits Between March 16 and April 5, 2020

Source: Employment and Social Development Canada

Text version
Volumes of Claims for Employment Insurance Benefits Between March 16 and April 5, 2020
  Cumulative claims (2020) 2008-09 peak monthly claims
16/3/20 71,081 330,300
17/3/20 159,016 330,300
18/3/20 289,701 330,300
19/3/20 483,403 330,300
20/3/20 697,321 330,300
21/3/20 814,550 330,300
22/3/20 911,197 330,300
23/3/20 1,065,875 330,300
24/3/20 1,332,662 330,300
25/3/20 1,556,726 330,300
26/3/20 1,729,268 330,300
27/3/20 1,879,031 330,300
28/3/20 1,967,077 330,300
29/3/20 2,029,815 330,300
30/3/20 2,130,855 330,300
31/3/20 2,229,499 330,300
1/4/20 2,308,982 330,300

2.3 A Partial and Uneven Rebound

2.3.1 Government Support Has Stabilized the Economy

The government’s fiscal support measures have provided, and will continue to provide, substantial support to the Canadian economy. Overall, Department of Finance analysis indicates that direct support measures are expected to result in economic activity being 4.6 per cent higher in 2020 and 4.4 per cent higher in 2021 compared to a scenario without support measures.Footnote 1 This translates into about 1.2 million full-time equivalent jobs protected in 2020. Without the direct support, the unemployment rate would have risen by an additional 6 percentage points in 2020, and remained above 12 per cent by the end of 2021 (Charts 2.11 and 2.12).Footnote 2 Overall, we estimate that these measures offset about half of the negative economic effects of the pandemic on the unemployment rate by the second quarter and about a quarter of the negative effects on real GDP. The swift, decisive and substantial support provided by the federal government has worked to protect Canadians’ health, Canadians’ jobs and Canadians’ businesses, positioning Canada’s economy for a robust and lasting recovery once the virus is conquered. Government support will help lay the foundation for the economic recovery.

Chart 2.11
Real GDP
Chart 2.11: Real GDP

Sources: Statistics Canada; Department of Finance Canada September 2020 Survey of private sector economists; Department of Finance Canada calculations.

Text version
Real GDP (billions of chained 2012 dollars)
2020 2021
Without direct support measures 1,893 1,987
With direct support measures 1,980 2,074
Chart 2.12
Unemployment Rate
Chart 2.12: Unemployment Rate

Note: Last data point is 2021Q4.

Sources: Statistics Canada; Department of Finance Canada September 2020 Survey of private sector economists; Department of Finance Canada calculations.

Text version
Unemployment rate
2017 Q1 2017 Q2 2017 Q3 2017 Q4 2018 Q1 2018 Q2 2018 Q3 2018 Q4 2019 Q1 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4
With direct support measures (%) 6.7 6.5 6.2 6.0 5.8 5.9 5.9 5.7 5.8 5.6 5.6 5.7 6.3 13.0 10.0 9.1 8.7 8.3 7.9 7.5
Without direct support measures (%)                       5.7 7.2 18.8 19.3 17.2 14.8 14.3 13.5 12.3

2.3.2 Canada’s Third Quarter Rebound Outperformed Expectations

The federal government’s rapid and substantial support resulted in Canada experiencing a shallower contraction in the overall economy than would otherwise have been the case. After seeing its deepest decline on record this past spring, Canada’s economy strongly rebounded in the third quarter with an annualized increase in real GDP likely over 45 per cent, while almost 80 per cent of the more than 3 million jobs lost at the outset of the pandemic have been recouped (Charts 2.13 and 2.14). This rebound was even stronger than predicted in the July Economic and Fiscal Snapshot (EFS 2020). At the same time, the rebound has been uneven and partial. Higher-wage workers in sectors such as tech and professional services to finance and public service, and who tend to be able to work from home have experienced less job loss or have even seen employment rebound to levels higher than before the pandemic. Meanwhile, lower-wage workers in industries still affected by public health restrictions and weaker demand due to COVID-19 – including hotels, travel, entertainment and restaurants – are facing shortened hours or unemployment.

Chart 2.13
Evolution of Monthly Real GDP during the COVID-19 Crisis compared to during the Global Financial Crisis
Chart 2.13: Evolution of Monthly Real GDP during the COVID-19 Crisis compared to during the Global Financial Crisis

Note: The figure for September 2020 is a preliminary estimate by Statistics Canada.

Source: Statistics Canada.

Text version
Evolution of Monthly Real GDP during the COVID-19 Crisis compared to during the Global Financial Crisis
  2008-2009 recession 2020 downturn:
February 100.0 100.0
March 99.9 92.7
April 98.9 81.9
May 97.5 85.9
June 97.1 91.5
July 96.6 94.3
August 95.8 95.4
September 95.5 96.1
95.4  
95.5  
95.6  
Chart 2.14
Monthly Employment, 2020 to Date
Chart 2.14: Monthly Employment, 2020 to Date

Source: Statistics Canada

Text version
Monthly Employment, 2020 to Date (millions of workers)
  Actual and trough Rebound Peak
January 19.2   19.2
February 19.2   19.2
May 18.2   19.2
June 16.2   19.2
May 16.2 0.3 19.2
June 16.2 1.2 19.2
July 16.2 1.7 19.2
August 16.2 1.9 19.2
September 16.2 2.3 19.2
October 16.2 2.4 19.2

Thanks to this support, the Canadian economy has shown considerable resilience, with a sharp rebound in economic activity and jobs through the summer and the early fall. Although the second wave of infections will temper growth in the short-term, and likely extend the period of time for recovery, the Canadian economy is poised to be back on a more sustainable growth track next year buttressed by strong fundamentals.

Programs such as the Canada Emergency Wage Subsidy gave employers financial support so they could keep or re-hire their workers. Job postings data shows that labour demand has steadily increased since April (Chart 2.15). In September, the Safe Restart Agreement and the Safe Return to Class programs helped schools and child care centres to reopen, allowing many parents to return to work. This support, along with a lower infection rate so far, has meant that the rebound in Canadian employment has exceeded that in the United States. Canada has recovered almost eight in ten of the lost jobs compared to just over half in the United States, with sectors such as education, real estate, professional services, finance, and insurance more than recouping their losses. Importantly, federal support for Canada’s labour market has helped Canadians get back to work more quickly and be more confident in their future employments than their counterparts in the United States (Chart 2.16). Jobs have still not returned to pre-pandemic levels though, and the virulent second wave and public health measures put in place to fight it will inevitably have an impact on growth and jobs.

Chart 2.15
Online Job Postings, Canada and United States
Chart 2.15: Online Job Postings,
Canada and United States

Note: Last data point is November 13, 2020.

Source: Indeed.

Text version
Online Job Postings, Canada and United States (index, February 1, 2020 = 100 (7-day moving average))
Canada United States
1/2/20 100 100
2/2/20 100.0986 100.0770725
3/2/20 100.3293 100.2984573
4/2/20 100.3945 100.3450843
5/2/20 100.4927 100.3867091
6/2/20 100.602 100.4841755
7/2/20 100.7758 100.4046144
8/2/20 101.1135 100.5172592
9/2/20 101.3955 100.6264288
10/2/20 101.4744 100.5589062
11/2/20 101.7278 100.6703233
12/2/20 101.9729 100.7794957
13/2/20 102.115 100.8022979
14/2/20 102.1579 100.8409408
15/2/20 102.0127 100.6070519
16/2/20 102.0275 100.5217071
17/2/20 102.0262 100.4005323
18/2/20 101.9125 100.325882
19/2/20 101.7555 100.2434554
20/2/20 101.6801 100.1430819
21/2/20 101.6639 100.084239
22/2/20 101.6494 100.1252154
23/2/20 101.6356 100.1476074
24/2/20 101.6237 100.1961633
25/2/20 101.726 100.2491532
26/2/20 101.8875 100.385487
27/2/20 102.0829 100.5925691
28/2/20 102.2253 100.8042073
29/2/20 102.4447 101.15303
1/3/20 102.4634 101.3798771
2/3/20 102.4587 101.5774648
3/3/20 102.4441 101.7293067
4/3/20 102.3519 101.7580672
5/3/20 102.278 101.7631442
6/3/20 102.1981 101.7432824
7/3/20 102.0939 101.817747
8/3/20 102.1516 101.9027482
9/3/20 102.2171 101.911705
10/3/20 102.4034 101.9594682
11/3/20 102.6227 102.0131343
12/3/20 102.805 102.0530992
13/3/20 102.9475 102.0039475
14/3/20 103.1334 101.823018
15/3/20 103.0815 101.6029662
16/3/20 102.9439 101.4396012
17/3/20 102.3212 100.9996168
18/3/20 101.256 100.4204247
19/3/20 99.82771 99.69942547
20/3/20 98.06825 98.79525485
21/3/20 95.67543 97.45371309
22/3/20 93.50025 96.25554699
23/3/20 91.33124 94.97443883
24/3/20 89.03488 93.79195548
25/3/20 86.91787 92.5448899
26/3/20 84.85922 91.21378761
27/3/20 82.64843 89.69857718
28/3/20 80.93673 88.50937899
29/3/20 79.08294 87.17251794
30/3/20 77.28822 85.89990103
31/3/20 75.74149 84.6621082
1/4/20 74.11834 83.40240829
2/4/20 72.53466 82.03206448
3/4/20 71.31153 81.05744202
4/4/20 70.03119 79.83014131
5/4/20 68.79812 78.57574011
6/4/20 67.5623 77.46886043
7/4/20 66.3055 76.35230893
8/4/20 65.30994 75.52293275
9/4/20 64.38842 74.89142417
10/4/20 63.48441 74.165808
11/4/20 62.72949 73.74538611
12/4/20 61.9122 73.32812071
13/4/20 61.11614 72.83919798
14/4/20 60.48021 72.42453206
15/4/20 59.62579 71.90833979
16/4/20 58.95026 71.37299511
17/4/20 58.36358 70.89506055
18/4/20 57.87897 70.50925212
19/4/20 57.27879 70.12088855
20/4/20 56.99985 69.81548643
21/4/20 56.78323 69.35213442
22/4/20 56.74941 68.89880064
23/4/20 56.64947 68.53923635
24/4/20 56.59584 68.2038904
25/4/20 56.67263 67.88873887
26/4/20 56.93531 67.59893082
27/4/20 56.97192 67.22149724
28/4/20 57.0216 67.00577696
29/4/20 57.08797 66.90702467
30/4/20 57.15507 66.83148752
1/5/20 57.14836 66.82248358
2/5/20 57.08846 66.75583951
3/5/20 56.85259 66.6755967
4/5/20 56.75921 66.61770991
5/5/20 56.75221 66.6198161
6/5/20 56.6556 66.61699215
7/5/20 56.67687 66.63193219
8/5/20 56.81863 66.70241728
9/5/20 57.06207 67.04067032
10/5/20 57.41631 67.41970017
11/5/20 57.63375 67.73106611
12/5/20 57.77141 68.04394795
13/5/20 57.88626 68.01160141
14/5/20 57.94206 68.26454017
15/5/20 58.12854 68.72907275
16/5/20 58.05122 68.87073852
17/5/20 57.97997 69.03206384
18/5/20 57.91003 69.22610706
19/5/20 57.78212 69.44842579
20/5/20 58.004 70.0176052
21/5/20 58.37603 70.45507887
22/5/20 58.6323 70.66362427
23/5/20 59.10225 71.00680189
24/5/20 59.42122 71.27294309
25/5/20 59.73624 71.52855337
26/5/20 60.14315 71.70260448
27/5/20 60.37694 71.79674256
28/5/20 60.51793 71.73456304
29/5/20 60.79711 71.85197167
30/5/20 61.25486 72.08277888
31/5/20 61.51132 72.23364257
1/6/20 61.78366 72.34410911
2/6/20 62.03452 72.50851335
3/6/20 62.27946 72.73289946
4/6/20 62.49965 73.04312363
5/6/20 62.755 73.22080236
6/6/20 62.97934 73.35406557
7/6/20 63.4642 73.57662817
8/6/20 63.84713 73.82526588
9/6/20 64.31255 74.1244215
10/6/20 64.8042 74.41275799
11/6/20 65.28867 74.70057625
12/6/20 65.63924 74.89009672
13/6/20 65.78124 75.10199262
14/6/20 66.15684 75.43000572
15/6/20 66.58131 75.78117853
16/6/20 66.9504 76.11835076
17/6/20 67.35518 76.42235615
18/6/20 67.76267 76.75952007
19/6/20 68.19842 77.18570348
20/6/20 68.77723 77.66171476
21/6/20 69.14435 78.14876133
22/6/20 69.49796 78.638618
23/6/20 69.83772 78.80192203
24/6/20 70.15211 79.01743169
25/6/20 70.38798 79.21788214
26/6/20 70.57754 79.40158566
27/6/20 70.83251 79.45664018
28/6/20 71.02448 79.41741529
29/6/20 71.21173 79.42361468
30/6/20 71.30863 79.72365157
1/7/20 71.2495 79.9659735
2/7/20 71.10952 80.10613446
3/7/20 70.96535 80.26924172
4/7/20 70.81572 80.41687686
5/7/20 70.61676 80.54162111
6/7/20 70.43076 80.62742036
7/7/20 70.38571 80.68860499
8/7/20 70.55651 80.86594562
9/7/20 70.92869 81.1609443
10/7/20 71.34635 81.43747785
11/7/20 71.67078 81.78398934
12/7/20 72.11473 82.12881312
13/7/20 72.55907 82.44611794
14/7/20 72.98392 82.82219082
15/7/20 73.31876 83.0761217
16/7/20 73.66465 83.27663867
17/7/20 73.97967 83.45743787
18/7/20 74.03678 83.4380693
19/7/20 74.30516 83.63477851
20/7/20 74.57638 83.8519454
21/7/20 74.8368 84.0467341
22/7/20 75.17126 84.32886012
23/7/20 75.44417 84.627528
24/7/20 75.73454 85.04883948
25/7/20 76.40244 85.6565953
26/7/20 76.77674 86.06990051
27/7/20 77.16754 86.46227968
28/7/20 77.55332 86.83771517
29/7/20 77.91006 87.1723295
30/7/20 78.3108 87.55067484
31/7/20 78.54112 87.77230906
1/8/20 78.58718 87.85610467
2/8/20 78.63223 87.95842084
3/8/20 78.67767 88.08085937
4/8/20 78.62398 88.11453336
5/8/20 78.55689 88.18540089
6/8/20 78.48295 88.13164333
7/8/20 78.55472 88.15530463
8/8/20 78.80096 88.26066368
9/8/20 79.07281 88.33655556
10/8/20 79.29657 88.39980203
11/8/20 79.67907 88.59274505
12/8/20 79.94064 88.64103761
13/8/20 80.1645 88.51693908
14/8/20 80.54415 88.38402505
15/8/20 80.54951 88.13009417
16/8/20 80.80255 88.0440455
17/8/20 81.10662 87.94213117
18/8/20 81.34909 87.72687647
19/8/20 81.83288 87.66498239
20/8/20 82.29632 87.83873974
21/8/20 82.61366 87.94863817
22/8/20 83.24707 88.22797904
23/8/20 83.6973 88.32262427
24/8/20 84.09002 88.43772164
25/8/20 84.59026 88.68180889
26/8/20 84.86665 88.87593247
27/8/20 85.16946 89.01201409
28/8/20 85.56296 89.18234612
29/8/20 85.87957 89.39462445
30/8/20 86.18943 89.63018996
31/8/20 86.45858 89.83690354
1/9/20 86.42404 89.80702068
2/9/20 86.5742 89.77531431
3/9/20 86.66478 89.81377155
4/9/20 86.68832 89.85569014
5/9/20 86.7778 89.80745577
6/9/20 86.81103 89.78797358
7/9/20 87.04381 89.74523468
8/9/20 87.28566 89.8162768
9/9/20 87.4649 89.89091606
10/9/20 87.68518 90.02808956
11/9/20 87.95814 90.19704703
12/9/20 88.07193 90.30582585
13/9/20 88.24379 90.35154943
14/9/20 88.27857 90.45877355
15/9/20 88.50609 90.65130088
16/9/20 88.7844 90.85156565
17/9/20 89.01742 91.02050095
18/9/20 89.21451 91.1443085
19/9/20 89.52654 91.28467453
20/9/20 89.80582 91.51369979
21/9/20 90.01752 91.6897684
22/9/20 90.27007 91.9368625
23/9/20 90.44584 92.18880359
24/9/20 90.68822 92.37966259
25/9/20 90.90942 92.5866921
26/9/20 91.12248 92.7780915
27/9/20 91.32878 92.92795753
28/9/20 91.63825 93.13552466
29/9/20 91.87918 93.31842728
30/9/20 92.10087 93.46560238
1/10/20 92.08254 93.50558661
2/10/20 92.03749 93.46618435
3/10/20 91.94111 93.46946834
4/10/20 91.8692 93.43729362
5/10/20 91.78681 93.39469883
6/10/20 91.67746 93.28775183
7/10/20 91.58837 93.25938764
8/10/20 91.75729 93.41094693
9/10/20 92.00956 93.65781101
10/10/20 92.30123 93.92470877
11/10/20 92.59228 94.24923836
12/10/20 92.83572 94.5500817
13/10/20 92.84411 94.79026696
14/10/20 92.80408 94.97241302
15/10/20 92.78039 95.08463102
16/10/20 92.58948 95.13386028
17/10/20 92.34122 95.10575659
18/10/20 92.13145 95.15386071
19/10/20 91.97777 95.18783954
20/10/20 92.20568 95.34203156
21/10/20 92.4402 95.5092542
22/10/20 92.49518 95.65946109
23/10/20 92.58558 95.78140079
24/10/20 92.67158 96.00014455
25/10/20 92.75575 96.09639713
26/10/20 92.73838 96.20275107
27/10/20 92.68151 96.28541876
28/10/20 92.67399 96.33899619
29/10/20 92.83808 96.44083292
30/10/20 92.95496 96.55555894
31/10/20 93.03454 96.61249517
1/11/20 92.91391 96.68855056
2/11/20 92.77615 96.73682927
3/11/20 92.64317 96.80281931
4/11/20 92.51308 96.90069033
5/11/20 92.36206 96.94713167
6/11/20 92.26525 97.05730168
7/11/20 92.24842 97.17511215
8/11/20 92.45336 97.29819917
9/11/20 92.69787 97.43131272
10/11/20 92.86095 97.45319763
11/11/20 92.99224 97.46755293
12/11/20 93.12677 97.47463913
13/11/20 93.18807 97.3897544
Chart 2.16
Evolution of Labour Force Participation Rate, Canada and United States
Chart 2.16: Evolution of Labour Force Participation Rate,
Canada and United States

Note: Last data point is October 2020.

Sources: Statistics Canada; U.S. Bureau of Labor Statistics.

Text version
Evolution of Labour Force Participation Rate, Canada and United States (per cent)
  United States Canada U.S. Feb 2020 level Canada Feb 2020 level
Jan-2020 63.4 65.4    
Feb-2020 63.4 65.5 63.4 65.5
Mar-2020 62.7 63.5 63.4 65.5
Apr-2020 60.2 59.8 63.4 65.5
May-2020 60.8 61.4 63.4 65.5
Jun-2020 61.5 63.8 63.4 65.5
Jul-2020 61.4 64.3 63.4 65.5
Aug-2020 61.7 64.6 63.4 65.5
Sep-2020 61.4 65 63.4 65.5
Oct-2020 61.7 65.2 63.4 65.5

2.3.3 Government Support has Helped Increase Household Disposable Income and Savings

While many Canadians continue to face challenges as a result of unemployment or reduced income, there are signs that, overall, government transfers have meant that many Canadian households were able to avoid taking on debt during in the first half of 2020. This factor, combined with reduced spending opportunities, actually led many people to substantially increase their savings, a feature of this recession that is unlike others (Chart 2.17). These savings helped fuel a quick rebound in retail and consumer spending over the summer and fall. Given this level of support, household balance sheets are now in a better place than would normally be the case. More important than just sustaining the rebound in consumer spending for the economy, this positions households to be a central force within our economic recovery. These savings are a preloaded stimulus Canadians will be able to deploy once the virus is vanquished and the economy fully reopens. And, as a result of meaningful government support, vulnerable Canadian workers—a group typically with limited savings—who experienced pandemic-related unemployment, did not, in aggregate, take on additional debt just to pay for essentials.

Overall, reflecting significant and targeted direct income support, Canada’s household savings rose most among major advanced economies over the first half of 2020 (chart 2.18). Unleashing these savings will be a key element of the government’s recovery plan.

Chart 2.17
Change in Real GDP and Real Disposable Income during Recessions
Chart 2.17: Change in Real GDP and Real Disposable Income during Recessions

Note: Household disposable income was deflated by the implicit price index for household consumption expenditure of goods and services.

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Change in Real GDP and Real Disposable Income during Recessions
  1981- 1982 1990-1991 2008-2009 2020
Real GDP (%) -5.365917496 -3.39848603 -4.44723535 -13.37681063
Real disposable income (%) -2.93079582 -2.1593861 0.973890919 12.59796716
Chart 2.18
Change in Household Gross Saving Rate by Country Since 2019Q4
Chart 2.18: Change in Household Gross Saving Rate by Country Since 2019Q4

Source: Haver Analytics.

Text version
Change in Household Gross Saving Rate by Country Since 2019Q4 (percentage points)
  Canada U.K. U.S. Australia euro
area
France Germ. Italy
2020Q1 3.8 1.7 2.2 2.0 4.1 4.1 1.1 5.2
2020Q2 23.1 20.7 17.6 14.4 12.1 11.7 10.0 9.0

2.3.4 Different Sectors Have Felt Different Impacts

Economic activity has been uneven. Certain sectors and industries— such as retail and wholesale trade and housing-related sectors— are near or out-performing pre-pandemic levels (Figure 2.4), benefitting from pent-up demand among households with well-supported incomes. Other areas of the economy, such as manufacturing and exports have recouped most losses, but they have plateaued somewhat below pre-pandemic levels, in part reflecting weak global demand. The industries that continue to lag are those still highly affected by public health restrictions and weaker demand due to COVID-19-related concerns and behaviour changes. Food services and accommodation, arts and entertainment, tourism and transit all remain highly depressed compared to pre-pandemic activity. Measures put in place by the government are helping to avoid scarring in these sectors.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Economic Participation and Prosperity

COVID-19 and related public health restrictions have resulted in significant job losses in industries that represent core sectors for youth, visible minorities and immigrants. In particular, in 2019, youth represented 41 per cent of employment in accommodation and food services, but only 13 per cent of overall employment. In 2016, visible minorities accounted for 30 per cent of those earning wages in accommodation and food services, but only 21 per cent of wage earners in all industries. Immigrants, especially very recent immigrants, were also overrepresented in this industry.

Figure 2.4
Macroeconomic Indicators Dashboard for Canada
Figure 2.4: Macroeconomic Indicators Dashboard for Canada

Text version
Macroeconomic Indicators Dashboard for Canada
Values represent the extent to which each indicator has or has not recovered in relation to its pre-recession peak.
Sectors benefitting from robust household incomes and pent-up demand are above their pre-recession peaks
Retail Sales (Sep) Wholesale Sales (Aug) Home Sales (Oct)
Current Value 104% 100% 121%
Trough Value 69% 77% 37%
Trade-oriented sectors have also rebounded, but are below their pre-recession peaks and growth has stalled
Manufacturing Shipments (Sep) Goods Exports (Sep) Energy Exports (Sep)
Current Value 97% 93% 86%
Trough Value 67% 74% 80%
Sectors most directly exposed to health restrictions remain far below pre-pandemic levels
GDP (Aug): Accomodation and Food Services GDP (Aug): Arts, Entertainment and Recreation GDP (Aug): Air and Ground Transit
Current Value 72% 53% 29%
Trough Value 36% 38% 16%

2.4 Decisive and Dynamic Support for Canadians

Canadians and Canadian businesses have access to a broad suite of economic measures to support them as we follow the advice of public health officials.

The extraordinary measures taken by the Government of Canada have supported wages, protected jobs, and kept businesses operating. The road to recovery remains long and uneven. Workers in certain sectors, especially sectors that employ mostly women, young people, new Canadians, racialized Canadians and low-income workers, have been hit hardest.

2.4.1 Protecting Jobs

2.4.1.1 The Canada Emergency Wage Subsidy

The Canada Emergency Wage Subsidy has been critical for some of the hardest hit sectors, helping to speed up the labour market recovery and prevent economic scarring. In August, about a quarter of private sector workers were covered by the program. Over 70 per cent of the approved applications to the wage subsidy program were made by employers with 25 employees or less. In accommodation and food service – the sector which experienced the sharpest decline in employment earlier this year – over half of workers were covered by the Canada Emergency Wage Subsidy in August (Chart 2.19), with the sector making greater use of the program as the economy reopened. By August, jobs recovered in many sectors that were hard hit in the first wave (Chart 2.20).

Chart 2.19
Share of Private Sector Workers Covered by the Canada Emergency Wage Subsidy, by Industry, August 2020
Chart 2.19: Share of Private Sector Workers Covered by the Canada Emergency Wage Subsidy, by Industry, August 2020

Notes: Private sector workers include the incorporated self-employed. August compares Period 6 Canada Emergency Wage Subsidy claims (August 2 to August 29) with August Labour Force Survey figures.

Sources: Canada Revenue Agency, Department of Finance Canada calculations.

Text version
Share of Private Sector Workers Covered by the Canada Emergency Wage Subsidy, by Industry, August 2020
  Per cent
Accom. & food service 60.46067
Business and building support 41.57101
Education services 41.07424
Arts, culture & recreation 33.71771
Wholesale trade 33.26769
Manufacturing 32.61975
Mining, oil and gas 28.8307
Other services 27.42123
All industries 26.31867
Real estate 26.17603
Transportation and warehousing 25.21459
Construction 24.61823
Health care & social assist. 18.39716
Professional services 17.22994
Agriculture, forestery, fishing and hunting 14.60867
Retail trade 13.97514
Utilities 6.192166
Finance & insurance 3.350494
Chart 2.20
Change in Employment, April to August 2020
Chart 2.20: Change in Employment, April to August 2020

Source: Statistics Canada.

Text version
Change in Employment, April to August 2020
  Thousands
Wholesale and retail trade 458.4
Accommodation & food serv. 355
Manufacturing 219.1
Construction 194.9
Health care and social assist. 176.4
Other services 134.5
Educational services 127.2
Information, culture and recreation 85
Profess., scien. & technical 55.4
Transport & warehousing 37.5
Business & support serv. 32.6
Finance, insurance, real est. 22.2
Forest., fish., mining, oil & gas 10.4
Utilities 3.3
Public administration 1.1
Agriculture -6.2

Additional Key Results Achieved To Date

  • Wage Top-up for Essential Workers - $2.5 billion transferred to provinces and territories to support wage increases for low-income essential workers

2.4.2 Immediate Income Support

2.4.2.1 The Canada Emergency Response Benefit

The Canada Emergency Response Benefit made sure workers laid off due to COVID-19, including many without access to EI, did not have to choose between doing the right thing to stop the spread of the virus and making ends meet. This significant support was instrumental in helping Canada flatten the curve as Canadians could afford to stay home in the initial wave of the pandemic.

Between April and September, the CERB was a critical lifeline for 8.9 million Canadians. It provided $500 a week to eligible Canadians, for up to 28 weeks, so they could pay for groceries, rent and other expenses

Figure 2.5
CERB Take-up
Figure 2.5: CERB Take-up
Text version
This figure illustrates the take-up for the Canada Emergency Response Benefit . It shows that there have been 8.9 million unique applicants and that $81.6 billion dollars has been paid to recipients. The data is current as of October 4, 2020.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Poverty Reduction, Health and Well-being

CERB was required by certain groups of Canadians more than others. According to self-reported data in the Labour Force Survey, in September 2020, women accounted for 54 per cent of CERB beneficiaries while men accounted for 46 per cent. New Canadians and racialized Canadians were also overrepresented among CERB recipients.

2.4.2.2 Canada Emergency Student Benefit

To help post-secondary students from across Canada weather the economic impact of the global pandemic, the Canada Emergency Student Benefit provided more than 708,000 students who were unable to find a job this summer with $2.94 billion in income support. This support allowed students who were unable to access the CERB to have the money they needed to pay for rent, food and essentials, during a summer when seasonal jobs were in short supply. Importantly, it also made sure that they were well positioned to afford tuition and to return to school in the fall.

This support was announced as part of a suite of programs to support students, including $228 million which helped 2,889 students and postdoctoral fellows by extending their research scholarships or fellowships and provided income support to an additional 15,901 student researchers and research support staff.

2.4.3 Support for Canada’s Businesses

Government of Canada measures have helped businesses afford fixed costs and adapt to the conditions of the pandemic. The overall number of firms forced into bankruptcy remains well-below levels seen prior to the pandemic, limiting business closings and showing that bold fiscal action is working to prevent long-term damage and economic scarring (Charts 2.21 and 2.22).

Gender Results Framework

Gender Equality and Diversity in Canada

  • Leadership and Democratic Participation

In August 2020, 29 per cent of businesses reported insufficient demand for their goods and services as an obstacle over the last three months. Businesses majority-owned by Indigenous peoples (44 per cent), immigrants to Canada (35 per cent), persons with a disability (32 per cent), and visible minorities (39 per cent) were significantly more likely to report this obstacle. Slightly fewer businesses majority-owned by women (26 per cent) and members of LGBTQ2 communities (25 per cent) made this claim.

The government knows that our eventual recovery will be faster and more complete, in direct proportion to how much we limit the economic scarring caused by the COVID-19 recession. In order for the small family restaurant or mid-sized manufacturer to come back stronger, it must first survive the pandemic. Its owners have to make rent. And they have to keep their experienced and knowledgeable staff on the payroll.

For our economy to come roaring back after we defeat the virus, we must be sure our businesses do not permanently close their doors.

Chart 2.21
Business Insolvencies
Chart 2.21: Business Insolvencies

Note: Last data point is September 2020.

Source: Office of the Superintendent of Bankruptcy Canada.

Text version
Business Insolvencies
  Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2019 292 318 362 363 316 295 336 239 252 312 302 293
2020 308 324 251 164 193 250 218 178 232      
Chart 2.22
Change in Business Insolvencies by Sector
Chart 2.22: Change in Business Insolvencies by Sector

Note: Restricted to sectors that represent at least 1 per cent of insolvencies (i.e., excludes public admin, utilities and education). March–September 2019 versus March–September 2020.

Source: Office of the Superintendent of Bankruptcy Canada.

Text version
Change in Business Insolvencies by Sector
  Per cent
Arts, entertain. and rec. 44.89796
Retail trade 15.15152
Agri., forestry and fishing 12.5
Mng't of companies 1.785714
Real estate and rental&leasing -20.6897
Accommodation & food serv. -20.9836
Wholesale trade -30.3571
Manufacturing -34.0206
Other services -33.6283
Transport. & warehousing -34.5133
Admin. & support, waste mng't -36.5385
Mining and oil & gas extraction -40.7407
Health care & social assist. -45.614
Profess., scien. & tech. serv. -52.7473
Construction -59.5745
Finance & insurance -58.9744
Information & cultural indust. -63.0435

Small businesses have been hit hard and have worked hard to stay afloat— through the first wave and now second wave. They have access to broad programs like the Canada Emergency Wage Subsidy but have also benefitted from targeted programs like the Canada Emergency Business Account and the Canada Emergency Commercial Rent Assistance, which provided more than $2.0 billion to 140,000 small businesses and supported 1.2 million workers.

“Small and large businesses create jobs, drive our economy, and make our communities stronger. Our government will continue to do whatever it takes to support them.”

The Rt. Hon. Justin Trudeau,
Prime Minister of Canada, October 9, 2020
Figure 2.6
Canada Emergency Business Account
Figure 2.6: Canada Emergency Business Account
Text version
This image shows the number of businesses approved for CEBA loans and the funding approved in millions by province. For detailed information, please refer to the Canada Emergency Business Account (CEBA) Regional Statistics https://ceba-cuec.ca/statistics

2.4.3.1 Indigenous Community Business Fund

Like so many businesses in Canada, those owned and operated by First Nation, Inuit and Métis peoples have seen their revenues impacted by COVID-19. However, some of their businesses do not qualify for existing COVID-19 relief programs. That’s why the Government of Canada launched the Indigenous Community Business Fund to provide $117 million in non-repayable financial contributions to help support operating costs for First Nation, Inuit and Métis community- or collectively-owned businesses and microbusinesses whose revenues have been affected by the COVID-19 pandemic. A further $16 million was provided to support Indigenous tourism businesses through the COVID-19 Indigenous Tourism Stimulus Development Fund.

In April, the government announced $306.8 million to help small and medium-sized Indigenous businesses, and to support Aboriginal Financial Institutions that offer financing to these businesses. This provides funding for short-term, interest-free loans and non-repayable contributions through Aboriginal Financial Institutions, which offer financing and business support services to First Nations, Inuit, and Métis businesses. Financial support for Indigenous businesses is provided through Aboriginal Financial Institutions, and administered by the National Aboriginal Capital Corporations Association and the Métis capital corporations in partnership with Indigenous Services Canada.

Combined, these programs have provided support to thousands of Indigenous businesses.

2.4.3.2 Support for Main Street Businesses

In response to the challenges caused by the pandemic, the Royal Bank of Canada, in partnership with chambers of commerce and private sector partners, launched the Canada United Small Business Relief Fund. Canada United provides grants of up to $5,000 to purchase personal protective equipment, renovate physical space and develop e-commerce capabilities — helping small businesses stay open while keeping Canadians safe.

In October, the government announced $12 million for the Canada United Small Business Relief Fund. This contribution is part of up to $46.5 million proposed to support main street businesses through shop local initiatives across the country. The remaining funding is proposed to support provincial and territorial chambers of commerce to collaborate with key stakeholders in their communities to develop or enhance awareness building campaigns that promote main street businesses in their communities.

2.4.4 Helping Vulnerable Canadians

The government acted quickly to provide special one-time payments through existing programs.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Poverty Reduction, Health and Well-Being

In 2016, about 1 in 4 Canadians (26 per cent) could have been financially vulnerable to an economic lockdown, meaning that without government transfers or borrowing, they would not have had enough liquid assets and other private sources of income to keep them out of low income during a two-month work stoppage. In the absence of government transfers, single mothers, recent immigrants, individuals living in families headed by an urban or off-reserve Indigenous person and individuals living in families where the main income earner has little education were highly vulnerable financially during temporary work interruptions.

2.4.5 Supporting Community Service Organizations

In a time where donations are going down, the need for support from charities and non-profits has gone up. That’s why the government has made significant investments in shelters, food banks, and community organizations, to ensure that Canadians get the support they need.

This includes:

See the summary table for Chapter 2 for a comprehensive list of all new measures introduced under the government’s economic response plan since the Economic and Fiscal Snapshot (July 2020).

Gender Results Framework

Gender Equality and Diversity in Canada

  • Poverty Reduction, Health and Well-Being

In early May, almost 1 in 7 Canadians (15 per cent) reported that they lived in a household where there was food insecurity in the past 30 days. Households with children were more likely to be food insecure (19 per cent) than households without children (12 per cent). Prior to the pandemic, lone-parent households, especially lone-parent households headed by women, were particularly at risk of food insecurity. For example, in 2017-18, 9 per cent of all households suffered from food insecurity, while 25 per cent of woman-headed lone parent households faced moderate to severe food insecurity.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Gender-Based Violence and Access to Justice

Early in the pandemic, federal consultations between the Department for Women and Gender Equality and frontline organizations, provinces and territories and Members of Parliament found a 20 to 30 per cent increase in rates of gender-based violence and domestic violence in some regions of the country. Shelters are crucial to keeping survivors of abuse safe. However, even before the pandemic, many shelters were at capacity and forced to turn people away.

2.5 Ongoing Economic Disruptions

Amidst the resurgence of the virus, economic momentum has slowed considerably. With renewed restrictions around the country, consumer views on future economic conditions remain subdued relative to pre-crisis levels (Charts 2.23 and 2.24).

Chart 2.23
Bloomberg-Nanos Expectations Index and Retail Sales
Chart 2.23: Bloomberg-Nanos Expectations Index and Retail Sales

Note: The Nanos Expectations sub-index refers to questions about real estate value and views on the economy in the Bloomberg-Nanos weekly survey. The long-term average is calculated from 2008 to 2020. Last data point for the Expectations index is the week ending November 20, 2020. Retail sales for October is an advanced estimate.

Source: Bloomberg Nanos.

Text version
Bloomberg-Nanos Expectations Index and Retail Sales
Bloombgerg Nanos Expectations index -
diffusion index
20/2/20 54.6987
14/2/20 55.6125
21/2/20 54.5553
28/2/20 53.4829
6/3/20 52.1781
13/3/20 49.7603
20/3/20 43.959
27/3/20 36.5043
3/4/20 30.4699
10/4/20 25.3034
17/4/20 23.5679
24/4/20 24.1619
1/5/20 24.9036
8/5/20 25.9986
15/5/20 25.5664
22/5/20 25.4738
29/5/20 25.5972
5/6/20 28.118
12/6/20 32.1256
19/6/20 36.9294
26/6/20 37.8554
3/7/20 38.5884
10/7/20 38.8794
17/7/20 39.7675
24/7/20 42.7631
31/7/20 45.0447
7/8/20 46.5559
14/8/20 48.4863
21/8/20 49.5653
28/8/20 49.3309
4/9/20 48.9346
11/9/20 48.8191
18/9/20 49.3077
25/9/20 49.1416
2/10/20 48.8921
9/10/20 47.9243
16/10/20 46.8126
23/10/20 46.6454
30/10/20 47.1109
6/11/20 46.7984
13/11/20 47.4742
20/11/20 48.8658
27/11/20  
  Real retail sales,
index, February 2020 = 100
Feb-20 100
Mar-20 91.483396
Apr-20 69.28186
May-20 83.39059279
Jun-20 101.1556
Jul-20 101.9926
Aug-20 102.5923
Sep-20 103.7479
Oct-20 103.7479
Nov-20  
Chart 2.24
Monthly Real GDP Growth
Chart 2.24: Monthly Real GDP Growth

Note: Last data point is September 2020, which represents an advanced estimate produced by Statistics Canada.

Source: Statistics Canada.

Text version
Monthly Real GDP Growth
  index, February 2020 = 100
Feb
2020
100.0
Mar
2020
92.7
Apr
2020
81.9
May
2020
85.9
Jun
2020
91.5
Jul
2020
94.3
Aug
2020
95.4
Sep
2020
96.1

Beyond Canada, a sharp resurgence in COVID-19 cases is also occurring in several major international economies, particularly many European countries where there are now varying degrees of lockdown restrictions. Cases are also surging across the U.S. The uncertainty over the severity and duration of these resurgences, and their economic effects is weighing on business sentiment, placing downward pressure on business investment (Chart 2.25).

Chart 2.25
Bank of Canada’s Business Outlook Survey Indicator and the Year-over-Year Change in Non-Residential Business Investment
Chart 2.25: Bank of Canada’s Business Outlook Survey Indicator and the Year-over-Year Change in Non-Residential Business Investment

Note: Last data point is 2020Q2 for business investment and 2020Q3 for business sentiment.

Sources: Bank of Canada’s Business Outlook Survey, Statistics Canada, Department of Finance Canada calculations.

Text version
Bank of Canada’s Business Outlook Survey Indicator and the Year-over-Year Change in Non-Residential Business Investment
Business Sentiment Indicator
(standardized units)
Non-residential business investment
(per cent, year over year)
2008Q1 -0.34 6.615075409
2008Q2 1.05 6.191958177
2008Q3 -1.21 5.290007362
2008Q4 -8.13 -1.856941705
2009Q1 -7.74 -19.23011704
2009Q2 -5.2 -22.62193168
2009Q3 -3.3 -21.7295849
2009Q4 -1.61 -15.31530653
2010Q1 -0.42 4.672183126
2010Q2 0.95 14.20257684
2010Q3 1.34 17.13379712
2010Q4 1.45 18.7095865
2011Q1 1.57 14.90921802
2011Q2 3.02 13.06452439
2011Q3 0.5 10.22827614
2011Q4 0.72 8.419327844
2012Q1 1.8 8.540227145
2012Q2 1.47 7.320482292
2012Q3 -0.03 6.862397515
2012Q4 -0.56 6.0667535
2013Q1 -1.44 5.772861043
2013Q2 -0.47 4.41151942
2013Q3 0.14 4.68074634
2013Q4 0.37 4.240551848
2014Q1 1.64 3.604648095
2014Q2 0.01 3.669188289
2014Q3 1.19 4.18407306
2014Q4 -0.89 5.078647775
2015Q1 -1.25 -4.802150074
2015Q2 -1.47 -9.545779973
2015Q3 -1.58 -13.68740853
2015Q4 -3.33 -17.13992375
2016Q1 -1.87 -14.16660438
2016Q2 -2.23 -11.30609448
2016Q3 -1.09 -7.380354484
2016Q4 0.78 -9.667960321
2017Q1 0.58 -0.894665375
2017Q2 2.84 2.200073904
2017Q3 0.99 3.042700078
2017Q4 2.18 10.52499145
2018Q1 1.77 6.951227644
2018Q2 3.08 4.756321582
2018Q3 2.79 -0.377049418
2018Q4 1.94 -3.858366084
2019Q1 -0.92 -1.309913484
2019Q2 0.09 -2.695080296
2019Q3 0.66 1.384147052
2019Q4 0.87 1.095464472
2020Q1 -0.47 -2.767429121
2020Q2 -6.87 -18.09635136
2020Q3 -2.21  

2.5.1 Changing Consumer Behaviour is Moving Businesses Online

The pandemic has resulted in substantial shifts in what Canadians are buying as a result of closures and reduced capacity in some sectors, as well as a general increase in physical distancing by Canadians. This is evident in debit-card payments data, which shows that Canadians continue to spend less on goods and services where physical distancing is difficult, such as live entertainment and travel, while they are spending more on other retail goods, such as groceries and furniture (Chart 2.26). Work-related spending has also fallen, including spending on transport and fuel, as more people work from home.

Canadians are increasingly shopping online, with e-commerce sales more than doubling at the peak of the pandemic last spring (Chart 2.27). Some of this increase in e-commerce is likely to be maintained once the crisis passes, as Canadians are now in the habit of shopping online and businesses have invested in their online capabilities.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Leadership and Democratic Participation

According to the Canadian Survey on Business Conditions, businesses that were majority-owned by women (14 per cent), Indigenous peoples (14 per cent), immigrants (17 per cent), and visible minorities (15 per cent) were more likely to report that they will very likely permanently adopt increased online sales capacity once the pandemic is over than the aggregate (12 per cent), while businesses that were majority-owned by persons with a disability (7 per cent) or members of LGBTQ2 communities (10 per cent) were less likely to report a high likelihood of permanent adoption.

Chart 2.26
Interac Payments Data
Chart 2.26: Interac Payments Data

Notes: Total dollar value of Interac Debit transactions (14-day moving average). Interac Debit is the network used for most debit transactions at the point of sale in Canada. Interac Debit is separate from e-Transfer, automated banking machine cash withdrawals and other Interac products. Last data point is November 1, 2020.

Source: Interac Corp.

Text version

The chart shows weekly year-over-year growth in spending by debit card in a few selected market segments: travel, entertainment, restaurants, retail, food and drug stores, as well as construction services and supplies. Spending growth in these segments diverges quite a bit. Spending in travel has remained much below pre-pandemic levels since the spring, while spending at restaurants and entertainment had slowly climbed back over the course of the summer, before falling further in recent weeks. On the other hand, spending in merchants categorized as retail and construction supplies fell sharply in April, before rapidly bouncing back and returning to levels much above their pre-pandemic averages. Spending at food and drug stores surged during lockdowns and has since maintained strong growth slightly above its pre-pandemic average.

Chart 2.27
Retail E-Commerce Sales
Chart 2.27: Retail E-Commerce Sales

Source: Statistics Canada.

Text version
Retail E-Commerce Sales
  Level (left scale)
(millions of dollars)
Annual growth (right scale)
(per cent, year over year)
Feb
2020
1602.171 23.41404459
Mar
2020
2200.433 42.29096397
Apr
2020
3628.807 123.5848679
May
2020
3913.562 116.4543639
Jun
2020
3412.877 80.26066642
Jul
2020
2886.229 66.15588054
Aug
2020
2909.387 64.28508508
Sep
2020
3193.807 74.30570943

2.5.2 Workers Are Feeling Uneven Impacts

While Canada’s labour force participation rate has shown a strong rebound, gains in employment remain uneven, with sectors like accommodation, food services, transportation and retail facing second wave impacts and remaining below pre-pandemic levels, and women, racialized Canadians, low-income workers and young people still facing disproportionate impacts.

The pace of gains has slowed. The monthly pace of GDP growth slowed in September and the number of Canadians who have permanently lost their jobs has been rising (Chart 2.28). Canada’s level of economic activity and employment remain well below pre-pandemic levels. In particular, the share of employed Canadians remains about 2 and a half percentage points lower than in February. As of October, 636,000 net job losses remain. Moreover, roughly 433,000 additional Canadians worked less than half their regular hours in October relative to February, 90 per cent of whom worked zero hours during the survey reference week, despite being technically employed. Employment among lower-income individuals has fallen more severely compared to middle- to higher-income individuals.

Chart 2.28
Employment Losses Since February
Chart 2.28: Employment Losses Since February

Note: Temporary and permanent layoffs both include individuals whose labour force status is unemployed.

Sources: Statistics Canada; Department of Finance Canada calculations.

Text version
Employment Losses Since February (Per cent change from peak - February 2020)
Temporary layoff Permanent layoff Labour force exits
Feb
2020
0 0 0
Mar
2020
-1.823756984 -0.23519489 -3.208018433
Apr
2020
-5.602701707 -0.945083156 -9.109296651
May
2020
-5.511197442 -1.990252829 -6.646464724
Jun
2020
-3.635761452 -2.801996608 -2.744394587
Jul
2020
-1.698060035 -3.24359125 -2.059609828
Aug
2020
-0.594039373 -3.54023922 -1.586067015
Sep
2020
-1.076587394 -1.778514204 -0.894364253
Oct
2020
-0.755577718 -1.881801635 -0.676429312

2.5.3 Unemployment Demographics Have Diverged from Previous Recessions

Compared to previous recessions Canada is seeing more women, younger Canadians and recent immigrants who are unemployed. This is in part due to the fact that the most affected sectors are more likely to employ Canadians from these groups. The longer these sectors face a COVID-19-related downturn, the lower these workers’ labour force attachment is, making it more difficult to find new jobs.

Chart 2.29
Change in the Labour Force Participation Rate, February to October 2020
Chart 2.29: Change in the Labour Force Participation Rate, February to October 2020

Notes

Source: Statistics Canada.

Text version
Change in the Labour Force Participation Rate, February to October 2020 (percentage point)
  15 to 24 years 25 to 54 years 55 years and over
Men -0.4 0.5 -0.4
Women -0.5 0.3 -1.2
Chart 2.30
Unemployment Rate by Visible Minority Group, October 2020
Chart 2.30: Unemployment Rate by Visible Minority Group, October 2020

Note: * indicates that the estimate should be used with caution as the coefficient of variation is greater than 16.5 per cent.

Source: Statistics Canada.

Text version
Unemployment Rate by Visible Minority Group, October 2020
  Per cent
South Asian 13.8
Arab* 13.7
Black 12.5
Southeast Asian* 12.5
Latin American* 10.5
Chinese 10.1
Filipino 8.8
Not Indigenous or a visible minority 6.7

Women in particular were hit harder and recovered later. Some women, including low-income women, racialized women, and Indigenous women, felt these effects even more.

In March, women’s employment was down by 7 per cent, while men’s was down by 4 per cent. In April, as the pandemic worsened, employment losses magnified to 17 per cent for women and 15 per cent for men. With the reopening in spring, both men and women made employment gains, but men returned closer to pre-pandemic levels, with losses of 8 per cent, compared to women’s 11 per cent. It was only in September that the gap closed significantly, with employment losses sitting about 4 per cent relative to pre-pandemic levels for both men and women. Greater impacts on women also extend to earning losses and number of hours worked.

Young people have experienced some of the greatest job losses and reductions in working hours, which can have a long-term impact on earning potential. At the trough of the recession in April, youth employment declined by more than a third relative to February, while an additional one in four young people lost all or the majority of their usual hours worked. Additionally, the unemployment rate for visible minority youth aged 15-24 years (26 per cent in October 2020) remains higher than that for their counterparts (15 per cent).

Although labour market impacts among Indigenous peoples and non-Indigenous Canadians were similar early in the pandemic, recovery has been slower among Indigenous peoples, with employment in October still down by more than 4 percent relative to February level, compared to just 1.5 percent for non-Indigenous Canadians.

Women who earn low-wages faced larger employment losses between February and April than men who earn low-wages (41 per cent versus 34 per cent). For young women, employment in October was down 11 per cent relative to February 2020 levels, compared to 9 per cent for young men, 4 per cent for all women and 3 per cent for all men.

Gender Results Framework

Gender Equality and Diversity in Canada

  • Economic Participation and Prosperity

Although there are many factors that have resulted in a greater labour market impact from COVID-19 on women, the closure of child care centres and schools at the start of the pandemic represented a significant barrier for women’s economic participation, as it greatly increased the amount of unpaid work in the home, disproportionately carried out by women. This likely affected employed women’s job performance for those teleworking, as well as unemployed women’s ability to return to work or find work. The slower recovery of mothers’ hours worked provides some evidence of the impact of the closure of child care centres. For example, in October, hours worked for fathers with children aged under 6 years had nearly returned to pre-COVID levels, while mothers with children of the same age group were still 6 percentage points below.

Chart 2.31
Change in Hours Worked for Mothers and Fathers with Youngest Child Aged 0-5 Years, February 2020 to October 2020
Chart 2.31: Change in Hours Worked for Mothers and Fathers with Youngest Child Aged 0-5 Years, February 2020 to October 2020

Source: Statistics Canada.

Text version

The chart shows monthly total actual hours worked for mothers and fathers with a child under six, indexed to February 2020. Hours worked for both groups have followed a V-shaped recovery, bottoming out in April, and gradually recovering since then. However, the pace of recovery has been quicker for fathers of young children, with total hours worked nearly back to the pre-COVID levels seen in February. In contrast, a significant gap still exists for mothers of young children, whose hours worked remain 6% below pre-COVID levels.

“As we face this crisis, as we get ready to rebuild, we will continue to be there for you.”

The Rt. Hon. Justin Trudeau,
Prime Minister of Canada, September 23, 2020
Chapter 2
Supporting Canadians Through the Pandemic
millions of dollars
    Net Fiscal Impact (Accrual)
COVID-19 Economic Response Plan – Direct Support Measures  Impact Value1 2019– 2020   2020– 2021   2021– 2022   2022– 2023   2023– 2024 2024– 2025 2025– 2026 Included in or Announced:
2.1.1 Canada Emergency Wage Subsidy 83,540 - 83,540 16,185 - - - -  
Canada Emergency Wage Subsidy – March 15 to December 19 Estimate
Estimated cost in 2020 Snapshot 82,300 - 82,300 - - - - - Policy Action Included in the July 2020 Snapshot
Revised October Estimate 68,750 - 68,750 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -13,550 - -13,550 - - - - - Policy Action Announced since the July 2020 Snapshot
Canada Emergency Wage Subsidy Extension 14,790 - 14,790 - - - - - New in this Fall Economic Statement
Provisional Estimate for Canada Emergency Wage Subsidy and Canada Emergency Rent Subsidy for April to June 2021 16,225 - - 16,225 - - - - New in this Fall Economic Statement
2.1.2 Enhancements to Employment Insurance 9,506 - 3,129 6,376 709 -1 -1 -1  
Temporary Changes to EI to Improve Access 9,501 - 3,124 6,377 710 - - - Policy Action Announced since the July 2020 Snapshot
Amount included in 2020 Snapshot 5 - 5 -1 -1 -1 -1 -1 Policy Action Included in the July 2020 Snapshot
2.1.3 Canada Recovery Benefits 23,007  -   12,672 10,335  -    -    -    -    
Canada Recovery Benefit 9,725 - 6,295 3,430 - - - - Policy Action Announced since the July 2020 Snapshot
Canada Recovery Sickness Benefit 4,960 - 2,580 2,380 - - - - Policy Action Announced since the July 2020 Snapshot
Less: Amount Provided for Sick Leave through the Safe Restart Agreement -1,100 - -1,100 - - - - - Policy Action Announced since the July 2020 Snapshot
Canada Recovery Caregiving Benefit 9,422 - 4,897 4,525 - - - - Policy Action Announced since the July 2020 Snapshot
2.1.4 & 2.1.5 Canada Emergency Rent Subsidy and Lockdown Support 4,360 - 4,360 - - - - -  
Canada Emergency Rent Subsidy 2,180 - 2,180 - - - - - Policy Action Announced since the July 2020 Snapshot
Canada Emergency Rent Subsidy and Lockdown Support Extension 2,180 - 2,180 - - - - - New in this Fall Economic Statement
2.1.6 Canada Emergency Business Account 13,750 - 14,558 - - - - -  
Canada Emergency Business Account - Incentive (2020 Snapshot)
Estimated cost in 2020 Snapshot 13,750 - 13,455 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 7,279 - 7,279 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -6,471 - -6,176 - - - - - Policy Action Announced since the July 2020 Snapshot
Additional Investments Since the 2020 Snapshot 7,279 - 7,279 - - - - - Policy Action Announced since the July 2020 Snapshot
2.1.8 Regional Relief and Recovery Fund 2,065 0 1,374 88 0 0 0 0  
Investments in 2020 Snapshot 962 0 747 - - - - - Policy Action Included in the July 2020 Snapshot
Additional Investments Since the 2020 Snapshot 600 - 459 - - - - - Policy Action Announced since the July 2020 Snapshot
Additional Investments in this Statement 500 - 165 88 - - - - New in this Fall Economic Statement
Support for Economic Development in the North 3 - 3 - - - - - New in this Fall Economic Statement
2.1.10 Support for Workers in the Live Events and Arts Sectors 322 0 140 186 4 0 0 0  
Support for Workers in the Live Events and Arts Sectors 182   - 182 - - - - New in this Fall Economic Statement
Supporting Canada’s Broadcasting System
Investments in 2020 Snapshot 30 - 30 - - - - - Policy Action Included in the July 2020 Snapshot
Additional Investments Since 2020 Snapshot 5 - 5 - - - - - Policy Action Announced since the July 2020 Snapshot
Investments in this Statement 50   50 - - - - - New in this Fall Economic Statement
Support for the National Film Board 5 - 5 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for the Audiovisual Industry 50 - 50 - - - - - Policy Action Announced since the July 2020 Snapshot
2.1.11 Air Sector 1,028 - 388 540 227 96 64 1  
Regional Air Transportation Initiative 206   50 156 - - - - New in this Fall Economic Statement
Airports Capital Assistance Program 93 - - 93 93 - - - New in this Fall Economic Statement
Support for Critical Infrastructure at Large Airports 205 - 0 205 133 95 64 1 New in this Fall Economic Statement
Airport Rent Relief 227 - 7 21 1 1 - - New in this Fall Economic Statement
Support for Airport Authorities 65 - - 65 - - - - New in this Fall Economic Statement
Support for the Air Transportation Sector (2020 Snapshot) 331 - 331 - - - - - Policy Action Included in the July 2020 Snapshot
2.1.12 Support for Innovative Businesses 535 -3 413 97 97 10 10 10  
Strategic Innovation Fund 110 - - 97 97 10 10 10 New in this Fall Economic Statement
Targeted Extension of the Innovation Assistance Program 155 - 155 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for Early Stage Companies (2020 Snapshot) 250 - 250 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Young Entrepreneurs (2020 Snapshot) 20 -3 8 - - - - - Policy Action Included in the July 2020 Snapshot
2.4.1 Protecting Jobs 5,505 - 5,505 - - - - -  
10% Temporary Wage Subsidy
Estimated cost in 2020 Snapshot 2,080 - 2,080 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 2,505 - 2,505 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference 425 - 425 - - - - - Policy Action Announced since the July 2020 Snapshot
Wage Top-up for Essential Workers
Estimated cost in 2020 Snapshot 3.000 - 3,000 - - - - - Policy Action Included in the July 2020 Snapshot
2.4.2.1 Canada Emergency Response Benefit 83,033 6,505 76,528 - - - - -  
Estimated cost in 2020 Snapshot 80,000 7,375 72,625 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 74,560 6,505 68,055 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -5,440 -870 -4,570 - - - - - Policy Action Announced since the July 2020 Snapshot
Additional funding since 2020 Snapshot 8,000 - 8,000 - - - - - Policy Action Announced since the July 2020 Snapshot
Administration costs 473 - 473 - - - - - Policy Action Announced since the July 2020 Snapshot
2.4.2.1 Canada Emergency Student Benefit 3,010 - 3,010 - - - - -  
Estimated cost in 2020 Snapshot 5,250 - 5,250 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 3,010 - 3,010 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -2,240 - -2,240 - - - - - Policy Action Announced since the July 2020 Snapshot
Administration Costs (included in original estimate) 40 - 20 20 7 5 4 - Policy Action Included in the July 2020 Snapshot
2.4.3 Support for Canada’s Businesses 7,271 - 6,212 600 279 109 91 53  
Canada Emergency Commercial Rent Assistance (CECRA) for Small Business 1,654 - 1,654 - - - - - Policy Action Announced since the July 2020 Snapshot
Estimated cost in 2020 Snapshot 2,974 - 2,974 - - - - - Policy Action Included in the July 2020 Snapshot
Less: Estimated Provincial Contribution in 2020 Snapshot -569 - -569 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 2,161 - 2,161 - - - - - Policy Action Announced since the July 2020 Snapshot
Less: Re-estimated estimate of Provincial Contribution in this Statement -507 - -507 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -751 - -751 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for Local Indigenous Businesses and Economies (2020 Snapshot) 133 - 133 - - - - - Policy Action Included in the July 2020 Snapshot
Financial Relief for First Nations through the First Nations Finance Authority (2020 Snapshot) 17 - 17 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Indigenous Businesses and Aboriginal Financial Institutions (2020 Snapshot) 307 - 217 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Main Street Businesses 47 - 46 1 - - - - Policy Action Announced since the July 2020 Snapshot
Other Support for Businesses in the 2020 Snapshot
Women Entrepreneurship Strategy – Ecosystem Top-up 16 - 16 - - - - - Policy Action Included in the July 2020 Snapshot
Granville Island Emergency Relief Fund 17 - 17 - - - - - Policy Action Included in the July 2020 Snapshot
Advertising Campaign: Government of Canada's COVID-19 Economic Response Plan 10 - 10 - - - - - Policy Action Included in the July 2020 Snapshot
COVID-19 Communications and Marketing 50 - 50 - - - - - Policy Action Included in the July 2020 Snapshot
Wage Support for Staff of the Non-Public Funds, Canadian Forces 6 - 6 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Food Inspection Services 20 - 20 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Cultural, Heritage and Sport Organizations 500 - 500 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Canada’s National Museums 26 - 26 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Canada’s National Arts Centre 18 - 18 - - - - - Policy Action Included in the July 2020 Snapshot
Cleaning up Former Oil and Gas Wells 1,720 - 1,520 - - - - - Policy Action Included in the July 2020 Snapshot
Emissions Reduction Fund for the Oil and Gas Sector 750 - 182 182 - - - - Policy Action Included in the July 2020 Snapshot
Supporting Canada’s Farmers, Food Businesses, and Food Supply 453 - 253 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Fish and Seafood Processors 63 - 63 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Canada’s Fish Harvesters 469 - 469 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Canada’s Academic Research Community 450 - 450 - - - - - Policy Action Included in the July 2020 Snapshot
Support for the Federal Bridge Corporation Limited 3 - 3 0- - - - - Policy Action Included in the July 2020 Snapshot
Other Support for Businesses Since the 2020 Snapshot
Support for Workers in the Newfoundland and Labrador Offshore Energy Sector 320 - 320 - - - - - Policy Action Announced since the July 2020 Snapshot
Ensuring Access to Canada Revenue Agency Call Centres 99 - 99 - - - - - Policy Action Announced since the July 2020 Snapshot
Canada Revenue Agency Funding for COVID-19 Economic Measures 124 - 124 417 279 109 91 53 Policy Action Announced since the July 2020 Snapshot
2.4.4 Helping Vulnerable Canadians 15,665 108 14,894 631 -30 -30 -30 -30  
Enhanced GST Credit (2020 Snapshot) 5,515 - 5,515 - - - - - Policy Action Included in the July 2020 Snapshot
Enhanced Canada Child Benefit (2020 Snapshot) 1,997 - 1,997 - - - - - Policy Action Included in the July 2020 Snapshot
One-Time Payment for seniors eligible for Old Age Security (OAS) and the Guaranteed Income Supplement (GIS)
Estimated cost in 2020 Snapshot 2,509 - 2,509 - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 2,456 - 2,456 - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -54 - -54 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for Persons with Disabilities
Estimated cost in 2020 Snapshot 573 - 572 - - - - - Policy Action Included in the July 2020 Snapshot
Additional funding since 2020 Snapshot 303 - 291 11 - - - - Policy Action Announced since the July 2020 Snapshot
Veterans Emergency Fund 0.6 - 0.6 - - - - - New in this Fall Economic Statement
Other Measures in the 2020 Snapshot to Support Vulnerable Canadians:        
Support for the Homeless (through Reaching Home) 158 - 158 - - - - - Policy Action Included in the July 2020 Snapshot
Expanding Existing Federal Employment, Skills Development, Student and Youth Programming 1,008 -17 1,024 6 - - - - Policy Action Included in the July 2020 Snapshot
Canada Student Loan Moratorium 190 - 190 - - - - - Policy Action Included in the July 2020 Snapshot
Enhancing Student Financial Assistance for Fall 2020  1,930 - 1,287 644 - - - - Policy Action Included in the July 2020 Snapshot
Canada Student Service Grant (to be replaced with future programming) 900 - 900 - - - - - Policy Action Included in the July 2020 Snapshot
Support for the On-Reserve Income Assistance Program 270 - 270 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Children and Youth 8 - 8 - - - - - Policy Action Included in the July 2020 Snapshot
New Horizons for Seniors Program Expansion 20 - 20 - - - - - Policy Action Included in the July 2020 Snapshot
Lower Registered Retirement Income Fund (RRIF) Minimum Withdrawal Amount 495 125 365 -30 -30 -30 -30 -30 Policy Action Included in the July 2020 Snapshot
2.4.5 Supporting Community Service Organizations 699 1 650 25 19 24 18 0  
Support for Veterans’ Organizations 20 - 20 - - - - - Policy Action Announced since the July 2020 Snapshot
Emergency Community Support Fund (2020 Snapshot) 350 - 350 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Food Banks and Local Food Organizations ($25M of existing funding in 2019-20) (2020 Snapshot) 100 - 75 - - - - - Policy Action Included in the July 2020 Snapshot
Support for Food Banks and Local Food Organizations 100 - 100 - - - - - Policy Action Announced since the July 2020 Snapshot
Addressing Gender-Based Violence during COVID-19 50 - 50 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for Women’s Shelters and Sexual Assault Centres, including in Indigenous Communities (2020 Snapshot) 50 - 50 - - - - - Policy Action Included in the July 2020 Snapshot
Protecting and Supporting Indigenous Women and Girls Fleeing Violence (2020 Snapshot)2 29 1 5 25 19 24 18 - Policy Action Included in the July 2020 Snapshot
Other Direct Support Measures 3,363 - 2,930 424 121 87 57 16  
Supporting Provincial and Territorial Job Training Efforts as Part of COVID-19 Economic Recovery (Chapter 3) 1,500 - 1,500 - - - - - Policy Action Announced since the July 2020 Snapshot
Labour Market Impact Assessment Refund (2020 Snapshot) 4 - 4 - - - - - Policy Action Included in the July 2020 Snapshot
Rapid Housing Initiative (see Chapter 3) 1,016   758 258 - - - - Policy Action Announced since the July 2020 Snapshot
Support for Safe Operation in the Forest Sector (Chapter 3) 31 - 31 - - - - - Policy Action Announced since the July 2020 Snapshot
Support for Black Entrepreneurs and Business Owners (Chapter 3) 40 - 10 30 34 19 0 34 Policy Action Announced since the July 2020 Snapshot
Supporting Public Health Measures in Correctional Institutions 172 - 148 15 - - - - New in this Fall Economic Statement
Funding to address immediate Correctional Service of Canada operational pressures resulting from the COVID-19 pandemic.
Parks Canada Revenue Replacement and Rent Relief (2020 Snapshot) 74 - 74 - - - - - Policy Action Included in the July 2020 Snapshot
Parks Canada Revenue Replacement 54 - 54 - - - - - New in this Fall Economic Statement
Funding to replace Parks Canada Agency revenue that is expected to be lost due to decreased visitation of the national parks, national marine conservation areas and national historic sites as a result of COVID-19 restrictions.
Support for the National Capital Commission 5 - 5 - -       New in this Fall Economic Statement
Funding for the National Capital Commission to offset reduced revenue caused by extending rent relief to local businesses due to COVID-19 pandemic restrictions.
Public Services and Procurement Canada Program Integrity 25 - 25 - - - - - New in this Fall Economic Statement
Funding for Public Services and Procurement Canada to continue service delivery to federal departments and agencies despite reduced revenue due to COVID-19, and to support employee safety during the pandemic.
Supporting the Ongoing Delivery of Key Benefits 31 - 26 4 - - - - New in this Fall Economic Statement
Funding for Employment and Social Development Canada to support frontline service delivery, including through the safe reopening of in-person Service Canada Centres. Funding will support delivery of Old Age Security, Canada Pension Plan and Employment Insurance, including Work-Sharing Benefits.
Improving Our Ability to Reach All Canadians 32 - 16 16 16 16 16 16 New in this Fall Economic Statement
Funding to Employment and Social Development Canada (ESDC) to help address workload pressures caused by COVID-19 and provide sustainable funding for 1-800 O-Canada and Canada.ca, and help to reduce barriers in accessing government services and benefits in northern and remote communities.
Maintaining the Federal Government’s Legal Services Capacity 46 - 46 - - - - - New in this Fall Economic Statement
Funding to Justice Canada to offset a revenue shortfall as a result of a lack of legal service fees charged to other government departments, due to reduced court operations in 2020-21. 
Supporting Court Operations and Access to Justice 48 - 46 1 1 1 - - New in this Fall Economic Statement
Funding provided to support federal court operations to enhance their technological capacity and adapt to physical distancing requirements. Funding will also increase the federal government's legal aid support for provinces and territories.
Support Canada Emergency Response Benefit Payment Integrity 98 - - 98 70 51 41 - Policy Action Announced since the July 2020 Snapshot
Funding provided to Employment and Social Development Canada and the Canada Revenue Agency to increase the capacity to detect, investigate and address cases of fraud or misrepresentation related to the Canada Emergency Response Benefit.
Funding for VIA Rail Canada Inc. 188 - 188 - - - - - New in this Fall Economic Statement
Funding for VIA Rail Canada Inc. to cover operating shortfalls in 2020-21 resulting from the COVID-19 pandemic.
Total –
Policy Actions in the 2020 Economic and Fiscal Snapshot 211,431 7,481 201,671 826 -11 -7 -13 -31 Policy Action Included in the July 2020 Snapshot
Impact of re-estimated costs -28,081 -870 -26,916 - - - - - Policy Action Announced since the July 2020 Snapshot
Policy Actions since the 2020 Economic and Fiscal Snapshot 54,905 - 37,751 17,429 1,023 128 91 53 Policy Action Announced since the July 2020 Snapshot
Less: Amounts Provisioned in the 2020 Snapshot for Anticipated Decisions -3,994 - -3,432 -562 -301 -53 -56 -52 Policy Action Announced since the July 2020 Snapshot
New Investments in Chapter 2 – Supporting Canadians Through the Pandemic 35,536 - 17,799 17,267 411 174 132 27 New in this Fall Economic Statement
Total – COVID-19 Economic Response Plan – Direct Support Measures 269,797 6,611 226,873 34,960 1,121 242 154 -2  
Chapter 2
COVID-19 Economic Response Plan – Tax and Liquidity Support
millions of dollars
COVID-19 Economic Response Plan – Tax and Liquidity Support Impact
Value1
Net Fiscal Impact (Accrual)
2019–
2020  
2020–
2021  
2021–
2022  
2022–
2023  
2023–
2024
2024–
2025
2025–
2026
Included in or Announced:
Tax and Customs Duty Payment Liquidity Support 85,050 56 2,938 15 -3 -2 - -  
Income Tax, Sales Tax, and Customs Duty Payment Deferrals 85,000 - 2,958 - - - - - Policy Action Announced since the July 2020 Snapshot
Personal Income Tax Deferral 25,000               Policy Action Announced since the July 2020 Snapshot
Business Income Tax Deferral 30,000               Policy Action Announced since the July 2020 Snapshot
Sales Tax Remittance and Customs Duty Payments Deferral 30,000               Policy Action Announced since the July 2020 Snapshot
Supporting Jobs and Safe Operations of Junior Mining Companies 50 56 -20 15 -3 -2 - - Policy Action Announced since the July 2020 Snapshot
Business Credit Availability Program and Other Credit Liquidity Support 83,400 - 6,355 4,689 1,951 555 -273 191  
Business Credit Availability Program                  
Canada Emergency Business Account (CEBA) (not including 25% incentive)                  
Estimated cost in 2020 Snapshot 41,250 - - - - - - - Policy Action Included in the July 2020 Snapshot
Re-estimated cost in this Statement 27,893 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Difference -13,357 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Additional Investments Since the 2020 Snapshot 10,307 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Small- and Medium-sized Enterprise Loan Guarantee Program 40,000 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Mid-Market Guarantee and Financing Program TBD3 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Highly Affected Sectors Credit Availability Program TBD3               Policy Action Announced since the July 2020 Snapshot
Large Employer Emergency Financing Facility TBD3 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Support for the Agriculture and Agri-Food Sector (2020 Snapshot) 5,200 - - - - - - - Policy Action Included in the July 2020 Snapshot
Total-                  
Tax, Customs Duty Payment and Fee Deferrals 85,050 56 2,938 15 -3 -2 0 0 Policy Action Announced since the July 2020 Snapshot
BCAP and Other Credit and Liquidity Support 83,400 0 6,355 4,689 1,951 555 -273 191 Policy Action Announced since the July 2020 Snapshot
Total - COVID-19 Economic Response Plan  - Tax and Liquidity Support 168,400 56 9,273 4,704 1,948 553 -273 191  
Other Liquidity Support and Capital Relief
Credit and Liquidity Support through the Bank of Canada, CMHC and Commercial Lenders4 300,000 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Capital Relief (OSFI Domestic Stability Buffer) 300,000 - - - - - - - Policy Action Announced since the July 2020 Snapshot
Note: Numbers may not add due to rounding.
1 The impact value reflects projected cash expenditures and liquidity support primarily in 2020-21 (some measures also include projected expenditures in 2019-20, and 2021-22). The fiscal (budgetary) impact on an accrual basis is lower, owing to cash-accrual accounting differences, the fact that some of these measures relate to loans, for which only provisions for potential losses would impact the balance, and tax deferrals, for which only foregone interest and penalties would affect the balance.
2 Funding profile has since been revised to $2M in 2020-21, $27M in 2021-22, $19M in 2022-23, $24M in 2023-24, $18M in 2024-25 and $11M in 2025-26.
3 Based on the amount of approved loans.
4 Figures represent lower bound estimates based upon announced credit and liquidity support to date. The accrual impact of these activities undertaken by the Bank of Canada and the Canada Mortgage and Housing Corporation to provide credit and liquidity support are reflected in the government's revenues from enterprise Crown corporations.
COVID-19 Economic Response Plan – Total (Chapters 1 and 2)
millions of dollars
COVID-19 Economic Response Plan – Total Impact
Value1
Net Fiscal Impact (Accrual)
2019–
2020  
2020–
2021  
2021–
2022  
2022–
2023  
2023–
2024
2024–
2025
2025–
2026
Included in or Announced:
Total –
Policy Actions in the 2020 Economic and Fiscal Snapshot 403,334 8,063 227,882 5,371 1,538 565 -335 17 Policy Action Included in the July 2020 Snapshot
Impact of re-estimated costs -41,201 -870 -27,017 42 -14 -182 -58 39 Policy Action Announced since the July 2020 Snapshot
Policy Actions since the 2020 Economic and Fiscal Snapshot 79,196 56 56,663 23,901 1,353 355 216 165 Policy Action Announced since the July 2020 Snapshot
Less: Amounts Provisioned in the 2020 Snapshot for Anticipated Decisions -3,994 - -4,785 -562 -301 -53 -56 -52 Policy Action Announced since the July 2020 Snapshot
New Investments in the 2020 Fall Economic Statement 53,380 - 22,514 21,804 1,176 506 295 187 New in this Fall Economic Statement
Total – COVID-19 Economic Response Plan 490,716 7,249 275,227 50,566 3,751 1,189 62 356  
Report a problem on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, please contact us.

Date modified: