Workers get set to pour cement from a truck at the GO train station in Oakville, Ont., Tuesday, Jan.28, 2020. Statistics Canada is set today to report how many workers lost their jobs in April or had their hours slashed as a result of the COVID-19 pandemic.THE CANADIAN PRESS/Richard Buchan

Workers get set to pour cement from a truck at the GO train station in Oakville, Ont., Tuesday, Jan.28, 2020. Statistics Canada is set today to report how many workers lost their jobs in April or had their hours slashed as a result of the COVID-19 pandemic.THE CANADIAN PRESS/Richard Buchan

COVID-19 wage subsidy program extended as pandemic pushes millions out of workforce

Economists on average had expected the loss of four million jobs and an unemployment rate of 18 per cent

With nearly two million jobs lost in April due to COVID-19, the federal government has announced it will be extending the wage subsidy program beyond June.

The loss of 1,993,800 jobs, according to the report released Friday (May 8) follows one million jobs lost in March. Meanwhile, millions more have seen their hours or incomes slashed due to the pandemic slowing and shuttering businesses.

Ottawa’s emergency wage subsidy, which officially launched last week, provides eligible businesses with 75 per cent of wages in order to keep more employees on their pay roll, or bring them back if they were temporarily laid off.

“We created that subsidy to protect jobs as much as possible. Since the launch of the program, employers have already applied for the wage subsidy for some two million workers,” Prime Minister Justin Trudeau said Friday.

ALSO READ: Trudeau announces 75% wage subsidy for small businesses amid COVID-19

In B.C., where 264,100 jobs were lost in April, Finance Minister Carole James is expected to comment on the latest report later today.

Economists on average had expected the loss of four million jobs and an unemployment rate of 18 per cent, according to financial markets data firm Refinitiv.

The unemployment rate would have been 17.8 per cent had the agency’s labour force survey counted among the unemployed the 1.1 million who stopped looking for work — likely because the COVID-19 economic shutdown has limited job opportunities.

In all, more than one-third of the labour force didn’t work or had reduced hours in April, an “underutilization rate” that was more than three times higher than in February before the pandemic struck.

“Canadians should be confident that we will do whatever we can to ensure that their jobs are safe as we continue to fight the global COVID-19 outbreak,” a trio of federal cabinet ministers said in a joint statement this morning in response to the jobs report.

ALSO READ: B.C. opens applications for COVID-19 emergency worker benefit

“As provinces and territories begin to lift restrictions and our government continues to take steps towards economic recovery, we will be there for Canadians.”

Vulnerable workers who tend to have part-time or temporary work, or in low-paying jobs have been particularly impacted with heavy job losses. Women have seen larger job losses overall, but the number of men out of work in April closed the gender gap in cumulative unemployment losses.

Nearly all of the job losses for men since February were in full-time work, compared to 69.9 per cent for women.

“This, combined with the different industries in which men and women have lost their jobs — for example, more job losses among men have been in construction, and fewer have been in retail trade — signals that the challenges associated with recovering from the COVID-19 economic shutdown may be different for women and men,” the labour force survey says.

In March, health restrictions forced the closure of non-essential businesses, leading to layoffs and cuts in work hours as companies tried to manage costs without enough or any revenue coming in.

ALSO READ: Trudeau unveils rental assistance for small businesses, loosens loan qualifications

Smaller companies — defined as those with less than 20 employees — have shed 30.8 per cent of their workers, medium-sized firms have let 25.1 per cent of workers go, and large companies have seen employment decline by 12.6 per cent.

Hard-hit sectors at the outset include retail, hotels, restaurants and bars, which continued to see losses in April. The losses in the service sector continued in April, down 1.4 million or 9.6 per cent, Statistics Canada says.

Proportionally, the losses were greater in goods-producing sectors like construction and manufacturing, which combined lost 621,000 jobs for a drop of 15.8 per cent after being virtually unchanged in March.

Job losses in April were spread across all provinces, with Quebec particularly hard-hit. The unemployment rate in the province climbed to 17 per cent, the highest rate among all provinces and the highest rate for Quebec itself in over more than four decades of comparable data.

The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CoronavirusEmploymentJobless rate

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

Just Posted

A woman wearing a face mask to curb the spread of COVID-19 uses walking sticks while walking up a hill, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Interior Health reports 83 more COVID-19 infections overnight

46 cases are now associated with a COVID-19 community cluster in Revelstoke

(Black Press file photo)
Discovery House receives $50,000 donation to kick off annual fundraiser

The ‘Shed the Light on Addiction’ fundraising campaign is underway

The tree for seniors is up at London Drugs in Cherry Lane mall. Pick a tag off the tree and purchase the items local seniors’ have requested. Sometimes it’s a simple as a razor and some chocolates or slippers or a scarf. (Facebook)
So many worthy charities in Penticton on #GivingTuesday

It’s been a very tough year for non-profit organizations — so let’s give generously

Grapevine Optical was the victim of an early morning break and enter Wednesday, Nov. 26, 2020. (Crime Stoppers Okanagan / Facebook)
Designer sunglasses stolen from Oliver eye-wear shop

Crime Stoppers is seeking the identity of two male suspects

Snowmaking is continuing at full blast on Apex Mountain on Nov. 20. (Apex Mountain Resort Facebook - Jeff Plant)
No mask? Lose your pass at Apex

The ski resort has implemented a strict mask policy for the upcoming ski season

A tongue-in-cheek message about wearing a face mask to curb the spread of COVID-19 on a sign outside a church near Royal Columbia Hospital, in New Westminster, B.C., on Sunday, Nov. 29, 2020. THE CANADIAN PRESS/Darryl Dyck
B.C.’s COVID-19 infection count climbs back up to 656

20 more people in hospital, active cases still rising

Brent Ross poses with his dog Jack who died over the weekend after asphyxiating on a ball. Ross hopes his experience serves as a cautionary tale to other dog owners. (Contributed)
Salmon Arm man warns others after dog dies from choking on a ball

Brent Ross grieving the sudden loss of Jack, a healthy, seven-year-old chocolate lab

This year’s Candlelight Vigil, United Against Violence Against Women, on Dec. 6, 2020 will not be in person at the campuses of Okanagan College due to COVID-19, but people will be able to gather online to watch a video presentation and light a candle in remembrance. (Image contributed)
Violence against women in North Okanagan-Shuswap to be remembered online

Participants in virtual vigil Dec. 6 asked to light a candle and post photo on social media

Mayor Colin Basran at the announcement of the 2021 Tim Horton’s Brier to be hosted in Kelowna on Nov. 21. (Contributed)
Tim Hortons Brier not coming to Kelowna

The COVID-19 pandemic has prompted Curling Canada to move to hub model, similar to the NHL playoffs

An Enderby restaurant and pub has been shut down since Sunday afternoon, Nov. 29, 2020 as a precaution after a guest reportedly tested positive for COVID-19. (Howard Johnson photo)
Enderby pub shuts down after guest reportedly tests positive for COVID-19

The Howard Johnson hotel, restaurant and pub has been closed since Sunday afternoon, Nov. 29

Robert Gibson, born November 24, 2020 is in BC Children’s Hospital. Photo contributed
Princeton baby fights for his life, with parents at his side

A Go Fund Me campaign has been started to help family with expenses

By this time next year, the BC Green Pharmadeuticals cannabis growing facility in Princeton is expected to employ at least 150 people, according to the owner. (File photo)
Princeton cannabis plant thriving despite lawsuit and bad press, says owner

Company expects to hire 30 more employees in the next two months

Most Read