OTTAWA —
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 through 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 Friday.
“This support is not designed for them. These measures are targeted for those who need it most.”
While NDP small business critic Gord Johns was pleased with the new program, he urged the government to backdate funding so tenants in arrears or steeped in debt could get relief their landlords had refused.
Dan Kelly, president of the Canadian Federation of Independent Business, said it was critical for federal and provincial governments to immediately get the welcomed economic supports to affected firms with closures seemingly imminent.
Threatened by surging case counts are gains for restaurant workers, whose industry saw a 72,000 increase in September. That is still 188,000 jobs shy of where it was in February before widespread closures of non-essential businesses.
With winter on its way, outdoor dining may be impractical in some cities, leaving fewer patrons at local bars, pubs and restaurants, even as Canadians are already planning on cutting spending in the area, Statistics Canada said.
“One of the key questions isn’t just what happens in areas like the restaurant industry, but whether the jitters that might show up there spread over to the broader economy,” said Brendon Bernard, an economist with job-posting website Indeed.com.
There are also jitters over the state of the “she-covery,” which in September seemed to catch up with the “he-covery” as mothers and fathers had employment levels that matched what was recorded pre-pandemic as their children went back to school.
Statistics Canada noted a greater share of mothers than fathers worked less than half their usual hours in September, and a higher percentage of mothers than fathers reported working from home in the month, suggesting childcare responsibilities were still falling on women.
Economist Armine Yalnizyan with the Atkinson Foundation said school and daycare closures since the labour force survey was taken suggest October’s figures may reverse some gains, and noted a year-over-year drop in the number of women in the workforce likely linked to the pandemic.
“Gender equity in the labour force is poised to go backwards by decades,” Yalnizyan said, adding that stopping that “really does depend on what our public policies are.”
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A quick look at Canada’s September employment data (numbers from the previous month in brackets):
Unemployment rate: 9.0 per cent (10.2)
Employment rate: 59.1 per cent (58.0)
Participation rate: 65.0 per cent (64.6)
Number unemployed: 1,832,600 (2,046,900)
Number working: 18,469,900 (18,091,700)
Youth (15-24 years) unemployment rate: 18.9 per cent (23.1)
Men (25 plus) unemployment rate: 7.8 per cent (8.4)
Women (25 plus) unemployment rate: 7.0 per cent (7.7)
Here are the jobless rates last month by province (numbers from the previous month in brackets):
Newfoundland and Labrador 14.8 per cent (13.1)
Prince Edward Island 10.1 per cent (10.7)
Nova Scotia 7.9 per cent (10.3)
New Brunswick 10.4 per cent (9.4)
Quebec 7.4 per cent (8.7)
Ontario 9.5 per cent (10.6)
Manitoba 7.0 per cent (8.1)
Saskatchewan 6.8 per cent (7.9)
Alberta 11.7 per cent (11.8)
British Columbia 8.4 per cent (10.7)
Statistics Canada also released seasonally adjusted, three-month moving average unemployment rates for major cities. It cautions, however, that the figures may fluctuate widely because they are based on small statistical samples. Here are the jobless rates last month by city (numbers from the previous month in brackets):
St. John’s, N.L. 9.8 per cent (10.5)
Halifax 8.4 per cent (10.1)
Moncton, N.B. 7.1 per cent (7.0)
Saint John, N.B. 10.1 per cent (9.7)
Saguenay, Que. 5.4 per cent (6.3)
Quebec City 5.0 per cent (6.3)
Sherbrooke, Que. 7.4 per cent (8.2)
Trois-Rivieres, Que. 6.3 per cent (7.6)
Montreal 10.7 per cent (11.8)
Gatineau, Que. 8.1 per cent (8.1)
Ottawa 8.7 per cent (9.5)
Kingston, Ont. 9.1 per cent (10.1)
Peterborough, Ont. 11.2 per cent (10.0)
Oshawa, Ont. 9.6 per cent (11.4)
Toronto 12.8 per cent (13.9)
Hamilton, Ont. 8.9 per cent (10.0)
St. Catharines-Niagara, Ont. 8.7 per cent (11.3)
Kitchener-Cambridge-Waterloo, Ont. 12.2 per cent (12.9)
Brantford, Ont. 8.1 per cent (9.8)
Guelph, Ont. 9.6 per cent (11.1)
London, Ont. 8.9 per cent (9.3)
Windsor, Ont. 9.8 per cent (10.1)
Barrie, Ont. 9.4 per cent (9.2)
Greater Sudbury, Ont. 8.5 per cent (8.6)
Thunder Bay, Ont. 8.3 per cent (9.2)
Winnipeg 9.4 per cent (10.4)
Regina 7.4 per cent (9.3)
Saskatoon 9.2 per cent (10.8)
Calgary 12.6 per cent (14.4)
Edmonton 12.6 per cent (13.6)
Kelowna, B.C. 8.0 per cent (9.0)
Abbotsford-Mission, B.C. 8.0 per cent (8.2)
Vancouver 11.1 per cent (12.8)
Victoria 9.1 per cent (10.3)
This report by The Canadian Press was first published Oct. 9, 2020
MONTREAL – Travel company Transat AT Inc. reported a loss in its latest quarter compared with a profit a year earlier as its revenue edged lower.
The parent company of Air Transat says it lost $39.9 million or $1.03 per diluted share in its quarter ended July 31.
The result compared with a profit of $57.3 million or $1.49 per diluted share a year earlier.
Revenue in what was the company’s third quarter totalled $736.2 million, down from $746.3 million in the same quarter last year.
On an adjusted basis, Transat says it lost $1.10 per share in its latest quarter compared with an adjusted profit of $1.10 per share a year earlier.
Transat chief executive Annick Guérard says demand for leisure travel remains healthy, as evidenced by higher traffic, but consumers are increasingly price conscious given the current economic uncertainty.
This report by The Canadian Press was first published Sept. 12, 2024.
Dollarama Inc.’s food aisles may have expanded far beyond sweet treats or piles of gum by the checkout counter in recent years, but its chief executive maintains his company is “not in the grocery business,” even if it’s keeping an eye on the sector.
“It’s just one small part of our store,” Neil Rossy told analysts on a Wednesday call, where he was questioned about the company’s food merchandise and rivals playing in the same space.
“We will keep an eye on all retailers — like all retailers keep an eye on us — to make sure that we’re competitive and we understand what’s out there.”
Over the last decade and as consumers have more recently sought deals, Dollarama’s food merchandise has expanded to include bread and pantry staples like cereal, rice and pasta sold at prices on par or below supermarkets.
However, the competition in the discount segment of the market Dollarama operates in intensified recently when the country’s biggest grocery chain began piloting a new ultra-discount store.
The No Name stores being tested by Loblaw Cos. Ltd. in Windsor, St. Catharines and Brockville, Ont., are billed as 20 per cent cheaper than discount retail competitors including No Frills. The grocery giant is able to offer such cost savings by relying on a smaller store footprint, fewer chilled products and a hearty range of No Name merchandise.
Though Rossy brushed off notions that his company is a supermarket challenger, grocers aren’t off his radar.
“All retailers in Canada are realistic about the fact that everyone is everyone’s competition on any given item or category,” he said.
Rossy declined to reveal how much of the chain’s sales would overlap with Loblaw or the food category, arguing the vast variety of items Dollarama sells is its strength rather than its grocery products alone.
“What makes Dollarama Dollarama is a very wide assortment of different departments that somewhat represent the old five-and-dime local convenience store,” he said.
The breadth of Dollarama’s offerings helped carry the company to a second-quarter profit of $285.9 million, up from $245.8 million in the same quarter last year as its sales rose 7.4 per cent.
The retailer said Wednesday the profit amounted to $1.02 per diluted share for the 13-week period ended July 28, up from 86 cents per diluted share a year earlier.
The period the quarter covers includes the start of summer, when Rossy said the weather was “terrible.”
“The weather got slightly better towards the end of the summer and our sales certainly increased, but not enough to make up for the season’s horrible start,” he said.
Sales totalled $1.56 billion for the quarter, up from $1.46 billion in the same quarter last year.
Comparable store sales, a key metric for retailers, increased 4.7 per cent, while the average transaction was down2.2 per cent and traffic was up seven per cent, RBC analyst Irene Nattel pointed out.
She told investors in a note that the numbers reflect “solid demand as cautious consumers focus on core consumables and everyday essentials.”
Analysts have attributed such behaviour to interest rates that have been slow to drop and high prices of key consumer goods, which are weighing on household budgets.
To cope, many Canadians have spent more time seeking deals, trading down to more affordable brands and forgoing small luxuries they would treat themselves to in better economic times.
“When people feel squeezed, they tend to shy away from discretionary, focus on the basics,” Rossy said. “When people are feeling good about their wallet, they tend to be more lax about the basics and more willing to spend on discretionary.”
The current economic situation has drawn in not just the average Canadian looking to save a buck or two, but also wealthier consumers.
“When the entire economy is feeling slightly squeezed, we get more consumers who might not have to or want to shop at a Dollarama generally or who enjoy shopping at a Dollarama but have the luxury of not having to worry about the price in some other store that they happen to be standing in that has those goods,” Rossy said.
“Well, when times are tougher, they’ll consider the extra five minutes to go to the store next door.”
This report by The Canadian Press was first published Sept. 11, 2024.
TORONTO – The U.S. Consumer Financial Protection Bureau has ordered TD Bank Group to pay US$28 million for repeatedly sharing inaccurate, negative information about its customers to consumer reporting companies.
The agency says TD has to pay US$7.76 million in total to tens of thousands of victims of its illegal actions, along with a US$20 million civil penalty.
It says TD shared information that contained systemic errors about credit card and bank deposit accounts to consumer reporting companies, which can include credit reports as well as screening reports for tenants and employees and other background checks.
CFPB director Rohit Chopra says in a statement that TD threatened the consumer reports of customers with fraudulent information then “barely lifted a finger to fix it,” and that regulators will need to “focus major attention” on TD Bank to change its course.
TD says in a statement it self-identified these issues and proactively worked to improve its practices, and that it is committed to delivering on its responsibilities to its customers.
The bank also faces scrutiny in the U.S. over its anti-money laundering program where it expects to pay more than US$3 billion in monetary penalties to resolve.
This report by The Canadian Press was first published Sept. 11, 2024.
