The extension of federal Wage subsidy policy till December has been announced by the Prime Minister of Canada Mr Justin Trudeau. In the light of Canada’s plans to resume its economy, this policy should provide greater certainty and support said the Prime Minister.
The announcement will help to restore jobs that were lost following steps to lockout coronavirus. It will encourage Canadians as well as immigrants to land on their feet faster. Furthermore, continuing negotiations with the provinces and territories on the secure restart plan were also held.
The Canada Emergency Wage Subsidy (CEWS) was launched during the COVID-19 pandemic in March to help relieve financial pressures on companies. The system was also launched to provide opportunities for businesses impacted by COVID-19, to rehire laid off employees and to prevent potential layoffs.
The government intended to do this by providing qualifying businesses with a 75 per cent wage subsidy up to $847 a week. In general, businesses and non-profits were entitled to receive the subsidy if they had a 30 per cent drop in revenue. It was 15 per cent for March.
Although accepting the extension of the CEWS, the business community remains critical of the eligibility criteria, and hopes that more businesses will be able to use it. The government has also said eligibility criteria will be changed this week. It is the second time the CEWS has been extended on May 15 by adding 12 weeks to the programme.
The federal government had compensated Employers just over $18 billion via the federal wage subsidy before July 6. Of 587,060 (or 99.1 per cent) applications, a total of 581,800 were accepted out of 587,060 applications submitted while approval rate being 99.1%
The government boosted the CEWS budget to $82.3 billion last week, far greater than the initial estimate of just $45 billion.
A lot of people who had been receiving the Canada Emergency Response Benefit (CERB) are now opting to return to work as the economy starts to reopen. Additionally, many people are more confident about the opportunity to find a career.
May and June months saw a growth of 1.24 million jobs as unemployment levels decreased significantly across the country. Such numbers are positive news for aspiring immigrants along with the expansion of the wage subsidy because they will expect a better work market once they become permanent residents.
Canada 's latest Express Entry is attracting more positive news spells, as it was the first all-program draw since the pandemic started.