Targeted COVID-19 Support Measures to Create Jobs and Growth
With one of the most successful vaccination campaigns in the world, many businesses safely reopening, and employment now back to pre-pandemic levels, Canadians have reached a turning point in the fight against COVID-19. The government has now surpassed its target of creating a million new jobs. Canada is on the road to economic recovery—but some areas of the country and economy continue to need targeted support.
The Government of Canada is taking targeted action to create jobs and spur economic growth. This includes moving from the very broad-based support that was appropriate at the height of lockdowns to more targeted measures that will provide help where it is needed, while prudently managing government spending.
The following changes to business support programs are being proposed:
Extend the Canada Recovery Hiring Program until May 7, 2022, for eligible employers with current revenue losses above 10 per cent and increase the subsidy rate to 50 per cent. The extension would help businesses continue to hire back workers and to create the additional jobs Canada needs for a full recovery.
Deliver targeted support to businesses that are still facing significant pandemic-related challenges. Support would be available through two streams:
Tourism and Hospitality Recovery Program, which would provide support through the wage and rent subsidy programs, to hotels, tour operators, travel agencies, and restaurants, with a subsidy rate of up to 75 per cent.
Hardest-Hit Business Recovery Program, which would provide support through the wage and rent subsidy programs, would support other businesses that have faced deep losses, with a subsidy rate of up to 50 per cent.
Applicants for these programs will use a new “two-key” eligibility system whereby they will need to demonstrate significant revenue losses over the course of 12 months of the pandemic, as well as revenue losses in the current month.
Businesses that face temporary new local lockdowns will be eligible for up to the maximum amount of the wage and rent subsidy programs, during the local lockdown, regardless of losses over the course of the pandemic.
These programs will be available until May 7, 2022, with the proposed subsidy rates available through to March 13, 2022. From March 13, 2022, to May 7, 2022, the subsidy rates will decrease by half.
