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Work for yourself? Canada has fewer and fewer people like you — and here's why – CBC News

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On the surface, Canada’s labour market has made a complete comeback since losing nearly three million jobs at the start of the pandemic, but dig a little deeper, and you’ll see that the recovery hasn’t been for everyone, including self-employed Canadians.

Self-employment in Canada had been growing steadily for several years, but over the course of the pandemic, it fell to its lowest level in more than a decade. There were nearly 2.9 million self-employed Canadians in February 2020. Now, there are just over 2.6 million.

Some of the losses in self-employment have been made up by gains in paid employment in the same industries, according to Statistics Canada. Those include professional, scientific and technical services.

But in other industries, such as agriculture, construction and services, including personal care, declines in self-employment haven’t been offset.

Richard Dias, founder and head of research at Acorn Macro Consulting in Halifax, blames the drop on government pandemic policies that weren’t tailored to support the success of Canada’s self-employed. These policies include blanket business closures and capacity restrictions, complicated applications for financial support and PPE requirements.

“It favoured giant corporates, who obviously are structured much, much better to navigate difficult situations … versus the humble shopkeeper,” said Dias. 

Statistics Canada breaks self-employment into several categories, including people who own an incorporated or unincorporated business, farm or professional practice, or those without a business, such as newspaper carriers or babysitters. Most self-employed Canadians are a business-of-one, but about one-third employ other people.

Dias is also worried about those self-employed Canadians who stretched themselves financially to survive the pandemic.

“After doing all the right things, they burned through their savings,” he said. “There’s no recognition, frankly, of that profound systemic error and the prolonged impacts that it’s going to have on our economy.”

Business on the brink

Michelle Palmer has been self-employed for eight years, but the owner of Pause Beauty Boutique in Toronto said the pandemic has made her question it.

WATCH | Spa owner on making up for lost time — and money: 

Business owner questions her future

14 days ago

Duration 1:09

Owner of Pause Beauty Boutique, Michelle Palmer, holds onto hope that she can turn around her business. 1:09

“I’ve encountered the idea and the thought of closure so many times in the last two years, I can’t even count,” said Palmer.

She was forced to close her spa business for 10 months out of the past two years because of public health lockdowns. Despite applying for all the financial help she could, she reopened her doors deep in debt.

“Our debt load is in the six figures right now, and that’s not going to go away overnight.” 

Falling through the cracks

Some self-employed Canadians fell through the cracks of government support programs, according to Dan Kelly, the president of the Canadian Federation of Independent Business.

“I’ve talked to thousands of self-employed people who really got almost no support through the COVID emergency,” said Kelly. 

WATCH | These are still ‘perilous times’ for entrepreneurs, says CFIB president: 

The economic cost of shrinking self-employment

14 days ago

Duration 0:30

CFIB president Dan Kelly on the need to encourage entrepreneurship post-COVID. 0:30

He says many of them didn’t qualify for programs that their large or medium-sized counterparts did. For example, the Canada Emergency Business Account provided interest-free loans of $40,000, but initially, applicants had to show they had an annual payroll of at least $50,000 in 2019 to access it. 

Self-employed workers were eligible to apply for the Canada emergency response benefit (CERB) and its replacement, the Canada recovery benefit (CRB), but Kelly argues the income support was not enough to keep a business going.

Palmer says she was cut off from the personal support programs this year because her 2020 taxes showed she didn’t make the required $5,000 to be eligible for CERB or CRB. That’s because she is a sole proprietor, which means that her business and personal taxes are filed together, and because of the closures, Palmer’s business operated at a loss.

“The message that we’ve sent to entrepreneurs over the last two years has been a pretty negative one,” said Kelly. 

The CFIB expects a wave of business closures in 2022 as the federal pandemic support programs wind down. 

“I think many business owners will not see a pathway back to profitability,” said Kelly.

Potential new cohort of entrepreneurs

But a new wave of self-employment could be on the horizon. According to a recent survey, 30 per cent of “traditionally employed” Canadians expect to transition to self-employment in the next two years.

The online survey of 3,000 people who work full-time was conducted in August and September of 2021 by data company Dynata for cloud accounting firm Freshbooks. The survey results were balanced against Statistics Canada data on age, gender and industry.

Such a shift to self-employment would be welcome news to the CFIB’s Kelly, who wants to see the group of self-employed Canadians grow — not shrink.

“They are the group that we’re counting on to replace many of the businesses that are now boarded up,” he said. “We’re also counting on them to create jobs for other Canadians.”

Seeking out job security

In the professional, science and technical fields, the trend may be headed in the opposite direction: toward salaried positions, which increased by close to 22 per cent between November 2019 and November 2021. Statistics Canada suggests the rise is a sign a pandemic-related shift to more standard forms of employment may be underway.

Many of those newly hired employees likely want the stability of a salaried position, according to Scotiabank deputy chief economist Brett House. 

“It’s not a sign that Canadians are becoming less entrepreneurial. It is a sign that the labour market recovery is continuing and getting firmer,” said House.

Shannon Mulligan, with her two young children, has traded freelancing for a full-time role with a growing tech company. (Tina Mackenzie/CBC)

Copywriter Shannon Mulligan is among that crowd. While freelancing was a lifeline during the pandemic, a position with a tech start-up in Toronto recently won her over.

“Moving from freelance to full-time was not something I was really ready to do, but… it was just an overwhelmingly exciting opportunity,” said Mulligan. 

Her new job comes with the flexibility of working from home, something that was more common for freelancers than paid employees pre-pandemic.

“Being able to have that still helped seal the deal for me,” said Mulligan.

Sticking with self-employment

But others aren’t ready to give up their self-employment status just yet.

Despite having thoughts of walking away from Pause Beauty Boutique, Palmer says she hasn’t followed through with it yet because she still loves it despite the stress and the financial cost.

“[Working for myself] is the most empowering thing I’ve ever done … and I am not willing to give that up lightly.”

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Bad traffic, changed plans: Toronto braces for uncertainty of its Taylor Swift Era

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TORONTO – Will Taylor Swift bring chaos or do we all need to calm down?

It’s a question many Torontonians are asking this week as the city braces for the arrival of Swifties, the massive fan base of one of the world’s biggest pop stars.

Hundreds of thousands are expected to descend on the downtown core for the singer’s six concerts which kick off Thursday at the Rogers Centre and run until Nov. 23.

And while their arrival will be a boon to tourism dollars — the city estimates more than $282 million in economic impact — some worry it could worsen Toronto’s gridlock by clogging streets that already come to a standstill during rush hour.

Swift’s shows are set to collide with sports events at the nearby Scotiabank Arena, including a Raptors game on Friday and a Leafs game on Saturday.

Some residents and local businesses have already adjusted their plans to avoid the area and its planned road closures.

Aahil Dayani says he and some friends intended to throw a birthday bash for one of their pals until they realized it would overlap with the concerts.

“Something as simple as getting together and having dinner is now thrown out the window,” he said.

Dayani says the group rescheduled the gathering for after Swift leaves town. In the meantime, he plans to hunker down at his Toronto residence.

“Her coming into town has kind of changed up my social life,” he added.

“We’re pretty much just not doing anything.”

Max Sinclair, chief executive and founder of A.I. technology firm Ecomtent, suggested his employees avoid the company’s downtown offices on concert days, saying he doesn’t see the point in forcing people to endure potential traffic jams.

“It’s going to be less productive for us, and it’s going to be just a pain for everyone, so it’s easier to avoid it,” Sinclair said.

“We’re a hybrid company, so we can be flexible. It just makes sense.”

Swift’s concerts are the latest pop culture moment to draw attention to Toronto’s notoriously disastrous daily commute.

In June, One Direction singer Niall Horan uploaded a social media video of himself walking through traffic to reach the venue for his concert.

“Traffic’s too bad in Toronto, so we’re walking to the venue,” he wrote in the post.

Toronto Transit Commission spokesperson Stuart Green says the public agency has been working for more than a year on plans to ease the pressure of so many Swifties in one confined area.

“We are preparing for something that would be akin to maybe the Beatles coming in the ‘60s,” he said.

Dozens of buses and streetcars have been added to transit routes around the stadium, and the TTC has consulted the city on potential emergency scenarios.

Green will be part of a command centre operated by the City of Toronto and staffed by Toronto police leaders, emergency services and others who have handled massive gatherings including the Raptors’ NBA championship parade in 2019.

“There may be some who will say we’re over-preparing, and that’s fair,” Green said.

“But we know based on what’s happened in other places, better to be over-prepared than under-prepared.”

Metrolinx, the agency for Ontario’s GO Transit system, has also added extra trips and extended hours in some regions to accommodate fans looking to travel home.

A day before Swift’s first performance, the city began clearing out tents belonging to homeless people near the venue. The city said two people were offered space in a shelter.

“As the area around Rogers Centre is expected to receive a high volume of foot traffic in the coming days, this area has been prioritized for outreach work to ensure the safety of individuals in encampments, other residents, businesses and visitors — as is standard for large-scale events,” city spokesperson Russell Baker said in a statement.

Homeless advocate Diana Chan McNally questioned whether money and optics were behind the measure.

“People (in the area) are already in close proximity to concerts, sports games, and other events that generate massive amounts of traffic — that’s nothing new,” she said in a statement.

“If people were offered and willingly accepted a shelter space, free of coercion, I support that fully — that’s how it should happen.”

This report by The Canadian Press was first published Nov. 13, 2024.



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‘It’s literally incredible’: Swifties line up for merch ahead of Toronto concerts

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TORONTO – Hundreds of Taylor Swift fans lined up outside the gates of Toronto’s Rogers Centre Wednesday, with hopes of snagging some of the pop star’s merchandise on the eve of the first of her six sold-out shows in the city.

Swift is slated to perform at the venue from Thursday to Saturday, and the following week from Nov. 21 to Nov. 23, with concert merchandise available for sale on some non-show days.

Swifties were all smiles as they left the merch shop, their arms full of sweaters and posters bearing pictures of the star and her Eras Tour logo.

Among them was Zoe Haronitis, 22, who said she waited in line for about two hours to get $300 worth of merchandise, including some apparel for her friends.

Haronitis endured the autumn cold and the hefty price tag even though she hasn’t secured a concert ticket. She said she’s hunting down a resale ticket and plans to spend up to $600.

“I haven’t really budgeted anything,” Haronitis said. “I don’t care how much money I spent. That was kind of my mindset.”

The megastar’s merchandise costs up to $115 for a sweater, and $30 for tote bags and other accessories.

Rachel Renwick, 28, also waited a couple of hours in line for merchandise, but only spent about $70 after learning that a coveted blue sweater and a crewneck had been snatched up by other eager fans before she got to the shop. She had been prepared to spend much more, she said.

“The two prized items sold out. I think a lot more damage would have been done,” Renwick said, adding she’s still determined to buy a sweater at a later date.

Renwick estimated she’s spent about $500 in total on “all-things Eras Tour,” including her concert outfit and merchandise.

The long queue for Swift merch is just a snapshot of what the city will see in the coming days. It’s estimated that up to 500,000 visitors from outside Toronto will be in town during the concert period.

Tens of thousands more are also expected to attend Taylgate’24, an unofficial Swiftie fan event scheduled to be held at the nearby Metro Toronto Convention Centre.

Meanwhile, Destination Toronto has said it anticipates the economic impact of the Eras Tour could grow to $282 million as the money continues to circulate.

But for fans like Haronitis, the experience in Toronto comes down to the Swiftie community. Knowing that Swift is going to be in the city for six shows and seeing hundreds gather just for merchandise is “awesome,” she said.

Even though Haronitis hasn’t officially bought her ticket yet, she said she’s excited to see the megastar.

“It’s literally incredible.”

This report by The Canadian Press was first published Nov. 13, 2024.

The Canadian Press. All rights reserved.



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Via Rail seeks judicial review on CN’s speed restrictions

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OTTAWA – Via Rail is asking for a judicial review on the reasons why Canadian National Railway Co. has imposed speed restrictions on its new passenger trains.

The Crown corporation says it is seeking the review from the Federal Court after many attempts at dialogue with the company did not yield valid reasoning for the change.

It says the restrictions imposed last month are causing daily delays on Via Rail’s Québec City-Windsor corridor, affecting thousands of passengers and damaging Via Rail’s reputation with travellers.

CN says in a statement that it imposed the restrictions at rail crossings given the industry’s experience and known risks associated with similar trains.

The company says Via has asked the courts to weigh in even though Via has agreed to buy the equipment needed to permanently fix the issues.

Via said in October that no incidents at level crossings have been reported in the two years since it put 16 Siemens Venture trains into operation.

This report by The Canadian Press was first published Nov. 13, 2024.

Companies in this story: (TSX:CN)

The Canadian Press. All rights reserved.



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