Jordan Press, The Canadian Press
Published Friday, June 5, 2020 5:18AM EDT
Last Updated Friday, June 5, 2020 3:25PM EDT
OTTAWA – Canada’s employment minister says the federal government is rethinking a key COVID-19 benefit so workers have more incentive to get back on the job, in an effort to maintain a surprising boost in job numbers from May.
Statistics Canada reported that the country got back 289,600 jobs in May – which mirrored a similar bump in the U.S. – after three million jobs were lost over March and April and about 2.5 million more people had their hours slashed.
Provincially, Quebec led the way, gaining 231,000 jobs as it became one of the first provinces to ease restrictions, doing so just before Statistics Canada collected data the week of May 10. Ontario was the only province with losses, albeit at a slower pace than in March and April.
Combined with more people reporting getting regular hours, the agency said Canada had recovered only 10.6 per cent of employment losses and absences related to the COVID-19 pandemic.
Friday’s jobs report showed the unemployment rate in May rose to 13.7 per cent, the highest level in more than four decades of comparable data. But that’s because more people started looking for work – meaning the rate shouldn’t be taken as a sign of underlying weakness, said CIBC senior economist Royce Mendes.
The unemployment rate is a measure of the people looking for work who can’t find it, meaning it can actually decline if job-seekers give up, or increase as formerly discouraged seekers see new signs of hope.
Still, the monthly labour force survey showed that men gained back more jobs than women, resulting in a wider gender gap in employment losses as a result of COVID-19, and that the pandemic continued to disproportionately affect lower-wage workers.
To keep gains going, business and labour groups called for a revamp of the Canada Emergency Response Benefit and the employment insurance system.
The first cohort of recipients of the $500-a-week payment will max out their 16 weeks of benefits in early July. Some may qualify for employment insurance, while others may not have any work available, meaning significant drops in income that could hamper the path to recovery, said TD senior economist Brian DePratto.
The Canadian Labour Congress and Canadian Chamber of Commerce separately called for reforms to the decades-old EI system, which the Liberals determined early on in the crisis couldn’t handle the influx of jobless claims.
Employment Minister Carla Qualtrough suggested all ideas are on the table when it comes to EI, and the future of the CERB.
“As we look into the months coming … we’ve got a different goal in mind: People need to get back to work safely,” she said at a midday press conference.
“So our thinking moving forward is how do we balance a need to continue to support workers, while not disincentivizing work?”
The most recent federal figures show 8.37 million people applied for the CERB, with $43.18 billion in payments as of June 2. Qualtrough said 1.2 million recipients no longer require it, although it wasn’t immediately clear why.
The Canada Revenue Agency also said this week that almost 190,000 payments of wrongfully received benefits had been made as of June 3.
Economists had been watching the CERB numbers as a proxy for Friday’s jobs report, which set up expectations for another round of job losses.
CERB figures will continued to be watched to track possible job losses and compare it to areas where there are signs of progress, said Brendon Bernard, an economist at the Indeed Hiring Lab.
“The strength of this rebound is going to depend to a significant degree on what happens with layoffs,” he said in an interview. “We could see some areas of the economy bounce-back as shuttered sectors reopen, but if layoffs continue, then it’s going to be tough for net job gains to be particularly strong.”
The total number of unemployed Canadians doubled from February to April, a surge driven by temporary layoffs that the vast majority of workers expected to last less than six months.
At the same time, there was a spike in the number of people who wanted to work but weren’t actively looking for jobs, likely because the economic shutdown has limited job opportunities. People not actively seeking work aren’t counted in unemployment figures.
The unemployment rate for May would have been 19.6 per cent had the report counted among the unemployed those who stopped looking for work – largely unchanged since April.
Statistics Canada said lower-wage workers recovered just over one-10th of the losses they experienced in March and April. But they continued to be a higher share of people working less than half of their usual hours.
Lower-wage workers were among the first- and hardest-hit during the shutdown, largely because they worked in industries like retail, restaurants and hotels that closed early in the pandemic.
Besides seeing less improvement generally compared with men, women with children under age six saw slower job gains than those with older children.
Rebounds were also weak for students and recent immigrants.
This report by The Canadian Press was first published June 5, 2020.
U.S. economy may be stalling out as viral outbreak worsens – CP24 Toronto's Breaking News
Christopher Rugaber, The Associated Press
Published Thursday, July 9, 2020 3:47PM EDT
WASHINGTON – The U.S. economy is stumbling as the viral outbreak intensifies, threatening to slow hiring and deepening the uncertainty for employees, consumers and companies across the country.
Coronavirus case counts are rising in 38 states, and the nation as a whole has been shattering single-day records for new confirmed cases. In six states representing one-third of the economy – Arizona, California, Colorado, Florida, Michigan, and Texas – governors are reversing their reopening plans. Reopening efforts are on pause in 15 other states.
The reversals are keeping layoffs elevated and threatening to weaken hiring. More than 1.3 million people applied for unemployment benefits last week, the Labor Department said Thursday, down from 1.4 million the previous week but still roughly double the pre-pandemic weekly record. Applications had fallen steadily in April and May but have barely declined in the past month.
Jobless claims “are stalled out at a new normal of over a million new claims every week,” said Daniel Zhao, an economist at Glassdoor. “The virus is in the driver’s seat and we’re along for the ride until the current public health crisis is resolved.”
Some economists have even warned that a so-called “double-dip” recession, in which the economy shrinks again after rebounding, could develop. Consumers, the primary driver of U.S. economic growth, are pulling back on spending in restaurants and bars, especially in the hardest-hit states. Some small businesses are closing, either under government orders or because of a lack of customers, according to private data.
Several companies have warned in recent days that more layoffs are coming. Levi’s, the iconic jeans maker, said it will cut 700 corporate jobs. United Airlines has warned 36,000 of its employees – nearly half its workforce – that they could lose their jobs in October. (Airlines aren’t allowed to cut jobs until then as a condition of accepting billions of dollars in government rescue aid.) Motorcycle maker Harley Davidson said it will eliminate 700 corporate jobs.
The pandemic drove Walgreens to a deep loss in the most recent quarter, with customers staying home or limiting shopping to essential supplies from grocery stores. Walgreens will cut 4,000 jobs at its pharmacy chain Boots in the United Kingdom. Bed Bath & Beyond said it will close 200 stores over the next two years as its sales have slid.
The uncertainty fanned by the pandemic has led many CEOs to abandon their forecasts for second-quarter results. Just as with the economy, forecasters say it could take years for corporate earnings to return to the levels they were at before the pandemic.
With reported viral cases surging, restaurant visits are falling in Arizona, California, Florida, and Texas, which together account for half of new confirmed infections. This week, in Arizona, restaurant traffic was down 65% from a year earlier, worse than the 50% year-over-year drop two weeks earlier, according to data from reservation app OpenTable. In Florida, traffic was down 57%, compared with 45% two weeks before.
Last week, applications for U.S. unemployment benefits spiked in Texas, Nevada, Tennessee and Louisiana – states where confirmed cases of the virus are intensifying. They also jumped in New Jersey and New York, where the pandemic is mostly under control, but where reopening steps have been postponed.
Applications dropped in California and Florida, though in California they remained high, with more than 267,000 claims. That is more people than were applying each week for unemployment benefits in the entire country before the pandemic hit. Jobless claims also declined in Michigan and Colorado.
The total number of people receiving jobless benefits fell 700,000 to 18 million. That suggests that some companies are continuing to rehire a limited number of workers. An additional 1 million people sought benefits last week under a separate program for self-employed and gig workers that has made them eligible for aid for the first time. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the official count.
In New Jersey, about 4,000 people had expected to return to their jobs last week at casinos in Atlantic City, after Gov. Phil Murphy said they could fully reopen. But Murphy later said the casinos couldn’t reopen their restaurants and bars because indoor dining was too risky. Employees who had hoped to return to work feel whipsawed.
“I wanted this nightmare to go away,” said Mineli Polanco, a beverage server at Borgata, a hotel and casino. “That first call was such a relief: things were going back to normal. Then the second call came, and it was a new nightmare.”
Signs of a weakening jobs picture suggest a turnaround from last week’s jobs report for June, which showed a solid gain of 4.8 million jobs and an unemployment rate that fell to 11.1% from 13.3%. But the June jobs report reflected surveys of Americans that were conducted in the middle of that month – before the pandemic flared up again. And even counting that hiring gain, the economy has regained only about one-third of the jobs that vanished in March and April.
Credit card data from both Bank of America and J.P.Morgan Chase show that spending has slipped in the past two weeks, even in states that don’t have sharp outbreaks.
“This suggests that renewed fears about the virus, rather than government restrictions, are driving the pullback in activity,” said Andrew Hunter, senior U.S. economist at Capital Economics, a forecasting firm.
Among retailers, the number of shifts worked changed little last week after steady increases in previous weeks, according to data from Kronos, which makes scheduling software. David Gilbertson, a vice-president at Kronos, said this indicates that consumer demand in many cases hasn’t picked up enough to justify more employees.
“Everything that’s going to be open is open,” Gilbertson said. “Now, we just need more people to come in and start spending money before things can pick up again.”
The renewed threat of job losses is arising just as a federal program that provides $600 a week in unemployment benefits, on top of whatever jobless aid each state provides, is to expire at the end of this month. Congressional leaders have said they will take up some form of a new rescue package when lawmakers return later this month from a recess.
Administration officials have expressed support for additional stimulus. But Senate Republicans have opposed extending the $600 a week in unemployment benefits, mainly on the ground that it discourages laid-off people from returning to work. House Democrats have pushed to extend the $600 a week through January.
In an interview Thursday on CNBC, Treasury Secretary Steven Mnuchin suggested that the administration might support an extension of supplemental unemployment aid but at a reduced level.
“We’re going to make sure people are (incentivized) to go back to jobs,” Mnuchin said.
AP Writer Wayne Parry in Atlantic City contributed to this report.
Canada Supports Inclusive Growth Through Economic Recovery – Canada NewsWire
OTTAWA, ON, July 9, 2020 /CNW/ – The Government of Canada is committed to innovation and building a clean energy future. This commitment will be more important than ever as we begin to reopen the economy and plan our recovery from the COVID-19 crisis.
The Honourable Seamus O’Regan, Canada’s Minister of Natural Resources, today participated in the International Energy Agency’s (IEA) Clean Energy Transitions Summit, the first IEA ministerial-level meeting entirely dedicated to the clean energy future. Minister O’Regan joined leaders from governments and industries around the world to discuss actions for sustainable recovery and clean energy technology innovation.
Minister O’Regan led a ministerial session on inclusive growth, which focused on placing people and communities at the heart of economic recovery and the long-term transition to a clean energy future. In recognition of the unprecedented and extensive impacts of the COVID-19 pandemic, he highlighted the importance of taking action to support workers and create the conditions for a more inclusive workforce.
Governments and industries alike have an opportunity to create more equitable and inclusive employment growth. Mobilizing the participation of traditionally underrepresented groups, including women, youth, racialized groups and Indigenous peoples, will be vital to the post-COVID-19 recovery and long-term economic growth.
Minister O’Regan also announced that Canada is leading the development of a reporting framework under the Equal by 30 initiative that will enable signatories to track and report on the concrete actions they are taking to close the gender gap across the energy sector. Led by Natural Resources Canada, Equal by 30 is a global campaign under the international Clean Energy Education and Empowerment (C3E) Initiative, a joint effort by the Clean Energy Ministerial and the International Energy Agency to advance gender equality in the energy sector. To date, close to 150 organizations across the energy sector, including governments, companies and non-profit institutions, have taken the Equal by 30 pledge.
The government remains committed to building a clean energy future that will not only support our natural resource sectors through this tough economic time but also grow the economy and create good jobs.
“Greater diversity and gender equality in the energy sector isn’t just the right thing to do — it’s the smart thing to do. Through the Equal by 30 campaign, we are putting people at the centre of our clean energy future.”
The Honourable Seamus O’Regan
Canada’s Minister of Natural Resources
Follow us on Twitter: @NRCan (http://twitter.com/nrcan)
SOURCE Natural Resources Canada
For further information: Natural Resources Canada, Media Relations, 343-292-6100, [email protected]; Ian Cameron, Press Secretary, Office of the Minister of Natural Resources, 613-447-3488, [email protected]
Ontario Expanding Access to the Modern Digital Economy – Government of Ontario News
Application intake for broadband and cellular program opens today
The Ontario government is expanding access to reliable broadband and cellular service in underserved and unserved parts of the province. The application intake for the $150 million Improving Connectivity for Ontario program (ICON) opens today. This funding will help drive economic investment and job creation across the province, while allowing more people to work from home more efficiently, engage in online learning, and connect with family and friends.
“The outbreak of COVID-19 reinforced the need to improve access to reliable broadband and cellular service as more people work and learn from home in order to practice physical distancing,” said Laurie Scott, Minister of Infrastructure. “By making these investments we will help to ensure every region in the province can participate in the modern digital economy, and contribute to Ontario’s economic recovery.”
Any areas across Ontario that do not meet the national standards for broadband speeds would be eligible for provincial funding. Up to 12 per cent of households in the province – mostly in rural, remote or northern areas – don’t have adequate broadband service, according to the Canadian Radio-television and Telecommunications Commission.
Telecommunication service providers, municipalities, Indigenous communities and non-profits are invited to submit innovative proposals and lend their investment, expertise and experience to improve connectivity in communities across Ontario. The preliminary application deadline for the first intake of the ICON program is August 21, 2020.
The province’s investment of $150 million announced today is part of the $315 million Up to Speed: Ontario’s Broadband and Cellular Action Plan. This action plan has the potential to leverage up to $1 billion in partner funding for broadband infrastructure investments.
- On June 3, 2020, Ontario announced the ICON program, a multi-year plan which aims to support approved projects as early as 2021.
- National standards for adequate broadband service are defined by speeds known as 50/10 (50 megabits per second download, and 10 megabits for upload).
- Over the past several months, Ontario has partnered with the Eastern Ontario Regional Network (EORN) to leverage $213 million to improve cellular access in eastern Ontario.
- The Province is investing in the $190 million Southwestern Integrated Fibre Technology (SWIFT) project to bring high-speed broadband to 50,000 more homes and businesses across Southwestern Ontario.
- Ontario has invested in initiatives to improve connectivity in Northern Ontario, such as a project that will connect five remote Matawa First Nations communities, seven broadband projects that will support rural and Indigenous communities, and the Next Generation Network Program.
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