Fiscal Package Brings Aid to Workers And Businesses Impacted by COVID-19
April 2020 | Marcus & Millichap
Global health crisis causes shock to labor market. Social-distancing measures and the closure of many businesses to stem the spread of COVID-19 have forced companies to temporarily lay off workers, contributing to 1.01 million lost jobs in March. These events have also led to a dramatic shift by consumers to e-commerce and necessity retailers. Some firms are scrambling to fill positions as they grapple with a surge in demand, which will offset some of the losses. Recently enacted fiscal stimulus will provide economic relief through this unprecedented period.
Government measures expand unemployment benefits. Ottawa announced a stimulus package totaling more than $200 billion that injects cash into the economy through wage subsidies, government-backed loans, tax deferrals, and grants to help individuals and companies weather the current economic storm. A key component of the new measure is an expansion of the employment insurance benefit that will help those who have lost work due to COVID-19. The Canada Emergency Response Benefit provides those directly impacted with $500 per week for up to 16 weeks, which could be enough to fully replace the wages of low-wage workers who have been hit the hardest.
