Medicine Hat News

Liberals revamp rentrelief for businesses as second wave threatens job gains

- JORDAN PRESS

The Trudeau Liberals sought Friday to get ahead of growing economic concerns linked to rising COVID-19 case counts, vowing new and revamped business supports to keep workers on payrolls and maintain job gains threatened by the pandemic’s second wave.

The government plans to provide direct rent support to commercial tenants at a projected cost of $2.2 billion to the end of the year, rather than flowing the money through landlords who were not keen on a previous version of the program.

A wage subsidy program will cover up to 65 per cent of eligible costs through December, costing the treasury $6 billion over that time, and $11 billion more to a well-used loan program by providing an added $20,000, half of which would be forgivable.

Even though many businesses have reopened, a number are not at full capacity while others worry about surviving a second wave. Prime Minister Justin Trudeau said the government wants to help companies hang on, and keep their workers employed.

Job growth in Canada accelerate­d rather than slowed down last month, as the economy added 378,000 jobs in September, bringing overall employment to within 720,000 of pre-pandemic levels, and dropping the unemployme­nt rate to nine per cent.

Still, there were 1.8 million Canadians unemployed in September, with about 1.5 million of them looking for work. Statistics Canada said the unemployme­nt rate would have been 11.9 per cent in September had it included people who wanted a job, but didn’t look for work, in its calculatio­n.

The growth in overall job numbers for workers hit hardest by losses earlier this year, such as those in the service sector and visible minorities, are now at risk as local lockdowns loom, said Trevin Stratton, chief economist with the Canadian Chamber of Commerce.

Losses for those groups could further strain a K-shaped recovery, where some sectors of the economy and workers fare well, and others do not.

“Now that we’re entering this second wave, that’s where we’re seeing this split take place,” Stratton said. “We can’t use a one-sized-fits-all policy response to this.”

The government opted for targeted relief in this second wave to help companies most in need, said Finance Minister Chrystia Freeland.

The rent-relief program, for example, will cover up to 65 per cent of eligible expenses for businesses, charities and non-profits on a sliding scale with income losses, with a top-up for those closed by public health orders that would cover up to 90 per cent of costs.

“This is not for everyone. Some businesses are able to work at full capacity despite COVID-19 and they are doing well and that’s great,” Freeland said.

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