Canada records second highest unemployment rate in its history
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At least 2 million Canadians lost their jobs in April, adding to the 1 million who were already unemployed through March. Canada’s unemployment rate stands at 13%, the second highest ever recorded.
Statistics Canada said the unemployment rate would be even higher, nearly 18%, if those who were not actively looking for work were included in the unemployment rate. Nearly one in three Canadian workers either didn’t work in April or had reduced hours.
“Right now, Canadians are hurting because of this pandemic. Everyone has their own story, but it all boils down to a very difficult time for a lot of people,” Canadian Prime Minister Justin Trudeau said during a news conference in Ottawa today.
Trudeau announced that the emergency wage subsidy program is being extended beyond June, in an effort to encourage more employers to keep staff on payroll or to help more businesses re-hire employees already laid off.
Canada said nearly 100,000 businesses have already been approved for the up to 75% wage subsidy program and that 1.7 million workers are already keeping their jobs while on the program.
The Canadian Chamber of Commerce called the job losses “staggering” and added that the key to reopening the economy will be “re-skilling” businesses and employees.
“The key question is how quickly businesses can or will re-hire once the economy reopens,” said the Chamber in a statement noting that many businesses will have to reopen even as social distancing requirements remain in place.
