Signs of recovery
The wage subsidy scheme will prove vital to businesses aiming to rehire workers, after economic slowdown during the COVID-19 pandemic forced many to downsize their operations.
The government estimates CEWS will require $82.3bn because of the extension, up from the $45bn earlier projected, but the increase in funding also coincides with an increase in employment.
The number of Canadians returning to work rose sharply in June as the economy showed signs of recovery amid the crisis. The country has regained 41% of the jobs lost during the pandemic, according to BMO’s quarterly labour market analysis.
A total of 953,000 Canadians went back to work last month – more than thrice the number recorded in May when only 290,000 re-entered the workforce. Overall, 1.24 million workers are back on the job after about three million were retrenched between February and April.
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