Canada extends pandemic emergency aid

OTTAWA: Canada announced Thursday a four-week extension of emergency aid for people who lost work due to the pandemic, and an easing of rules on qualifying for unemployment benefits when that expires.

Officials estimated the cost of the measures at Can$37 billion (US$28 billion) over one year.

About 4.5 million Canadians, or 12 percent of the population, are currently receiving US$2,000 a month in emergency support. That’s due to end this month.

Canada’s unemployment rate hit a record high of 13.7 per cent in May before falling to 10.9 per cent in July.

The easing of a nationwide lockdown has seen most businesses reopen and millions back on the job in recent months.

But many are still stuck at home, without work.

“By supporting Canadians who are out of work because of the pandemic, we are making it possible for our country to continue to practice social distancing and to do the right things in the fight against the coronavirus,” newly tapped Finance Minister Chrystia Freeland told a news conference.

“As we shift from our initial emergency response to a safe and prudent restart, as we shift to living with Covid-19, our approach also needs to evolve,” she said.

The changes to the unemployment program, starting Sept 27, would cover some 400,000 people who might not normally qualify, including self-employed and contract workers, officials said.

Canadians will also be able to receive paid sick leave, as well as a caregiver benefit to look after their children if daycares and schools are closed — although most schools plan to reopen in September.