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

COVID-19. (Image courtesy CDC)
Interior Health reports 70 new cases overnight

The total number of cases in the region is now at 1,426

A big portion of the funding is anticipated to be used in 2021. File photo
Village of Nakusp receives $692,000 in COVID-19 relief funding

The money will partly be used to help sustain and clean municipal facilities

An employee of the Adventure Hotel was taken to hospital on Nov. 20 after she confronted a customer of Empire Coffee about not wearing a mask. File photo.
Nelson hotel employee suffers heart attack after being assaulted in anti-mask incident

An accountant at the Adventure Hotel is in hospital in Kelowna

RCMP pictured at a motor vehicle incident during snowy conditions. (Phil McLachlan - Black Press Media)
Fruitvale woman charged with impaired driving in 2019 crash that killed 2 teens

A 15-year-old boy and 18-year-old woman, both from Fruitvale, died in the crash that sent the vehicle into the river

Masks are now officially mandatory in all City of Campbell River facilities. (Black Press File Photo)
Interior Health reports 49 new COVID-19 cases overnight

302 cases remain active; two in hospital

A man wearing a face mask to help curb the spread of COVID-19 walks in downtown Vancouver, B.C., Sunday, Nov. 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. records deadliest day of pandemic with 13 deaths, 738 new COVID-19 cases

Number of people in hospital is nearing 300, while total cases near 30,000

FILE - This May 4, 2020, file photo provided by the University of Maryland School of Medicine, shows the first patient enrolled in Pfizer's COVID-19 coronavirus vaccine clinical trial at the University of Maryland School of Medicine in Baltimore.  Pfizer announced Wednesday, Nov. 18, 2020, more results in its ongoing coronavirus vaccine study that suggest the shots are 95% effective a month after the first dose. (Courtesy of University of Maryland School of Medicine via AP, File)
VIDEO: B.C. planning for the rollout of COVID-19 vaccines in the first weeks of 2021

The question of who will get the vaccine first relies on Canada’s ethical framework

This undated photo issued by the University of Oxford shows of vial of coronavirus vaccine developed by AstraZeneca and Oxford University, in Oxford, England. (University of Oxford/John Cairns via AP)
Canada can make vaccines, just not the ones leading the COVID-19 race

Canada has spent more than $1 billion to pre-order seven different developing COVID-19 vaccines

British Columbia Premier John Horgan speaks during an announcement about a new regional cancer centre in Surrey, B.C., on Thursday, Aug. 6, 2020. Horgan is set to introduce his NDP government’s new cabinet Thursday. THE CANADIAN PRESS/Darryl Dyck
Horgan’s NDP cabinet built to tackle pandemic, economic recovery, says former premier

Seven former NDP cabinet ministers didn’t seek re-election, creating vacancies in several high-profile portfolios

The COVID-19 test centre at Peace Arch Hospital is located on the building’s south side. (Tracy Holmes photo)
B.C. woman calls for consistency in COVID-19 post-test messaging

‘Could we just get one thing straight?’ asks Surrey’s Deb Antifaev

(File photo)
Alberta woman charged after allegedly hitting boy with watermelon at Okanagan campsite

Police say a disagreement among friends at an Adams Lake campsite turned ugly

Court of Appeal for British Columbia in Vancouver. (File photo: Tom Zytaruk)
B.C. woman loses appeal to have second child by using late husband’s sperm

Assisted Human Reproduction Act prohibits the removal of human reproductive material from a donor without consent

Krista Macinnis displays the homework assignment that her Grade 6 daughter received on Tuesday. (Submitted photo)
B.C. mom angry that students asked to list positive stories about residential schools

Daughter’s Grade 6 class asked to write down 5 positive stories or facts

B.C. projects targeting the restoration of sockeye salmon stocks in the Fraser and Columbia Watersheds will share in $10.9 million of federal funding to protect species at risk. (Kenny Regan photo)
13 projects protecting B.C. aquatic species at risk receive $11 million in federal funding

Salmon and marine mammals expected to benefit from ecosystem-based approach

Most Read