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A closer look at where $82 billion in CERB payments went at the beginning of the pandemic – CBC.ca

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Kelly Ernst recalls standing on sidewalks, waving to needy families in Calgary’s northeast as they opened their doors to pick up food hampers.

Ernst, vice-president for vulnerable populations at Calgary’s Centre for Newcomers, said the memory speaks to how COVID-19 hurt the community, socially and economically.

Ernst said the Skyview Ranch neighbourhood is one of the most diverse in the country, with a high proportion of visible minorities and newcomers. Residents are often employed in precarious retail jobs or in warehouses, Ernst said. Others work at the city’s airport or in the municipal transit system, both of which were also affected by the pandemic.

“Some of the first people to be laid off during the downturn were people in these precarious jobs,” Ernst said, adding many were left looking for “some way to get through this whole thing.”

Almost seven in every 10 residents over age 15 in Skyview Ranch, received the Canada Emergency Response Benefit in the initial month that the pandemic aid was available, one of the highest concentrations among over 1,600 neighbourhoods The Canadian Press analyzed.

Federal data, obtained through the Access to Information Act, provides the most detailed picture yet of where billions of dollars in emergency aid went last year.

The data is broken down by the first three characters of postal codes, known as “forward sortation areas,” to determine the number of active recipients at any time anywhere in the country.

The Canadian Press used population counts from the 2016 census to calculate what percentage of the population over age 15 in each forward sortation area received the CERB in any four-week pay period.

Some forward sortation areas in the data from Employment and Social Development Canada were created after the 2016 census and weren’t included in the analysis.

Initial wave saw a largely rural-urban split

Over its lifespan between late March and October of last year, the CERB paid out nearly $82 billion to 8.9 million people whose incomes crashed because they saw their hours slashed or lost their jobs entirely.

Some three million people lost their jobs in March and April as non-essential businesses were ordered closed, and 2.5 million more worked less than half their usual hours.

The data from Employment and Social Development Canada show that 6.5 million people received the $500-a-week CERB during the first four weeks it was available, or more than one in five Canadians over age 15.

What emerges from that initial wave is a largely rural-urban split, with higher proportions of populations relying on the CERB in cities compared to rural parts of the country.

George Chahal, a city councillor, said Calgary’s northeast has faced a number of challenges. (Jeff McIntosh/The Canadian Press)

Neighbourhoods in Brampton, Ont., on Toronto’s northwest edge, had the largest volume of CERB recipients with postal-code areas averaging over 15,160 recipients per four-week pay period.

CERB usage also appears higher in urban areas that had higher COVID-19 case counts, which was and remains the case in Calgary’s northeast.

“As cities relied more on accommodations, tourism and food as drivers of economic growth, the more they would have been sideswiped by the pandemic, and larger centres have a higher concentration of jobs in these areas,” said David Macdonald, senior economist at the Canadian Centre for Policy Alternatives, who has studied the CERB.

“More rural areas of the country and certain cities that have a higher reliance on, say, natural resources wouldn’t have been hit as hard.”

In Skyview Ranch, census data says 12 per cent lived below the poverty line in 2016, and about three in 10 owners and four in 10 renters faced a housing affordability crunch, meaning they spent 30 per cent or more of their incomes on shelter.

Many live in multi-generational households, which the local city councillor said caused additional concerns about students and working adults spreading the virus to grandparents.

“These are real worries and challenges that members of my community have been facing throughout a pandemic,” said Coun. George Chahal.

“The CERB program and the additional support to small businesses was a huge relief for the fear with many folks in my ward.”

The CERB program paid out $500 per week for people whose incomes had fallen to nothing as a result of the pandemic. The federal Liberals amended the program in April to set a monthly income threshold of $1,000.

Ontario town had the highest average number of residents accessing CERB

At the outset, there were 6,520 residents of Skyview Ranch on the CERB, about 69.4 per cent of the population 15 and up.

Then things improved. Businesses reopened and workers were rehired. The decline in the program’s use in Calgary’s northeast mirrored a nationwide drop in recipients overall, even though there were local increases here and there.

In all, there were 4.4 million recipients in the CERB’s second month, the biggest month-to-month change, 3.7 million in the third, and a steady decline to almost 2.3 million recipients by the time the CERB was replaced by a trio of new recovery benefits and a revamped and restarted employment-insurance system.

Over the lifetime of the CERB, the Ontario town of East Gwillimbury had the highest average number of residents accessing the program, at 24 per cent. The town with the lowest percentage was Winkler, Man., at 3.83 per cent.

In Skyview Ranch, the number of recipients in the last month of the CERB stood at 2,440, or about one-quarter of those over age 15.

There is still hardship in Skyview Ranch. The area has seen a spike in COVID-19 cases and incomes have dropped again as restrictions rolled in through December, part of a wider drop in the national labour market.

Chahal said there still is a need in the area for government aid like the federal recovery benefits.

“Maybe not for everybody,” he said, “but there are going to be a lot of folks who are going to be in need of assistance in the upcoming months as we move from this stage of the pandemic (and) into economic recovery.”

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Carry On Canadian Business. Carry On!

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business to start in Canada

Human Resources Officers must be very busy these days what with the general turnover of employees in our retail and business sectors. It is hard enough to find skilled people let alone potential employees willing to be trained. Then after the training, a few weeks go by then they come to you and ask for a raise. You refuse as there simply is no excess money in the budget and away they fly to wherever they come from, trained but not willing to put in the time to achieve that wanted raise.

I have had potentials come in and we give them a test to see if they do indeed know how to weld, polish or work with wood. 2-10 we hire, and one of those is gone in a week or two. Ask that they want overtime, and their laughter leaving the building is loud and unsettling. Housing starts are doing well but way behind because those trades needed to finish a project simply don’t come to the site, with delay after delay. Some people’s attitudes are just too funny. A recent graduate from a Ivy League university came in for an interview. The position was mid-management potential, but when we told them a three month period was needed and then they would make the big bucks they disappeared as fast as they arrived.

Government agencies are really no help, sending us people unsuited or unwilling to carry out the jobs we offer. Handing money over to staffing firms whose referrals are weak and ineffectual. Perhaps with the Fall and Winter upon us, these folks will have to find work and stop playing on the golf course or cottaging away. Tried to hire new arrivals in Canada but it is truly difficult to find someone who has a real identity card and is approved to live and work here. Who do we hire? Several years ago my father’s firm was rocking and rolling with all sorts of work. It was a summer day when the immigration officers arrived and 30+ employees hit the bricks almost immediately. The investigation that followed had threats of fines thrown at us by the officials. Good thing we kept excellent records, photos and digital copies. We had to prove the illegal documents given to us were as good as the real McCoy.

Restauranteurs, builders, manufacturers, finishers, trades-based firms, and warehousing are all suspect in hiring illegals, yet that becomes secondary as Toronto increases its minimum wage again bringing our payroll up another $120,000. Survival in Canada’s financial and business sectors is questionable for many. Good luck Chuck!. at least your carbon tax refund check should be arriving soon.

Steven Kaszab
Bradford, Ontario
skaszab@yahoo.ca

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Imperial to cut prices in NWT community after low river prevented resupply by barges

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NORMAN WELLS, N.W.T. – Imperial Oil says it will temporarily reduce its fuel prices in a Northwest Territories community that has seen costs skyrocket due to low water on the Mackenzie River forcing the cancellation of the summer barge resupply season.

Imperial says in a Facebook post it will cut the air transportation portion that’s included in its wholesale price in Norman Wells for diesel fuel, or heating oil, from $3.38 per litre to $1.69 per litre, starting Tuesday.

The air transportation increase, it further states, will be implemented over a longer period.

It says Imperial is closely monitoring how much fuel needs to be airlifted to the Norman Wells area to prevent runouts until the winter road season begins and supplies can be replenished.

Gasoline and heating fuel prices approached $5 a litre at the start of this month.

Norman Wells’ town council declared a local emergency on humanitarian grounds last week as some of its 700 residents said they were facing monthly fuel bills coming to more than $5,000.

“The wholesale price increase that Imperial has applied is strictly to cover the air transportation costs. There is no Imperial profit margin included on the wholesale price. Imperial does not set prices at the retail level,” Imperial’s statement on Monday said.

The statement further said Imperial is working closely with the Northwest Territories government on ways to help residents in the near term.

“Imperial Oil’s decision to lower the price of home heating fuel offers immediate relief to residents facing financial pressures. This step reflects a swift response by Imperial Oil to discussions with the GNWT and will help ease short-term financial burdens on residents,” Caroline Wawzonek, Deputy Premier and Minister of Finance and Infrastructure, said in a news release Monday.

Wawzonek also noted the Territories government has supported the community with implementation of a fund supporting businesses and communities impacted by barge cancellations. She said there have also been increases to the Senior Home Heating Subsidy in Norman Wells, and continued support for heating costs for eligible Income Assistance recipients.

Additionally, she said the government has donated $150,000 to the Norman Wells food bank.

In its declaration of a state of emergency, the town said the mayor and council recognized the recent hike in fuel prices has strained household budgets, raised transportation costs, and affected local businesses.

It added that for the next three months, water and sewer service fees will be waived for all residents and businesses.

This report by The Canadian Press was first published Oct. 21, 2024.

The Canadian Press. All rights reserved.

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U.S. vote has Canadian business leaders worried about protectionist policies: KPMG

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TORONTO – A new report says many Canadian business leaders are worried about economic uncertainties related to the looming U.S. election.

The survey by KPMG in Canada of 735 small- and medium-sized businesses says 87 per cent fear the Canadian economy could become “collateral damage” from American protectionist policies that lead to less favourable trade deals and increased tariffs

It says that due to those concerns, 85 per cent of business leaders in Canada polled are reviewing their business strategies to prepare for a change in leadership.

The concerns are primarily being felt by larger Canadian companies and sectors that are highly integrated with the U.S. economy, such as manufacturing, automotive, transportation and warehousing, energy and natural resources, as well as technology, media and telecommunications.

Shaira Nanji, a KPMG Law partner in its tax practice, says the prospect of further changes to economic and trade policies in the U.S. means some Canadian firms will need to look for ways to mitigate added costs and take advantage of potential trade relief provisions to remain competitive.

Both presidential candidates have campaigned on protectionist policies that could cause uncertainty for Canadian trade, and whoever takes the White House will be in charge during the review of the United States-Mexico-Canada Agreement in 2026.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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