Department of Finance Canada, "Overview of Canada’s COVID-19 Economic Response Plan" (archived)

Summary

Chapter 1 of the Department of Finance Canada report on Canada's COVID-19 Economic Response Plan, giving an overview of federal measures. The government says it committed over $212 billion in direct support to Canadians and businesses, $85 billion in tax and customs duty payment deferrals, $5.8 billion for health systems and approximately $14 billion to help provinces and territories reopen. It also made $600 billion in liquidity support available with the Bank of Canada, OSFI, CMHC and commercial lenders. Table 1.1 puts federal, provincial and territorial support at 469.0 billion dollars as of July 3, 2020, including 65.6 billion from provinces and territories. A gender analysis of the wage subsidy finds men slightly more likely to be covered, which the department calls only suggestive.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Chapter 1 Overview of Canada’s COVID-19 Economic Response Plan

A Responsive Plan

Through Canada’s COVID-19 Economic Response Plan (the Plan), the government has taken
 strong, immediate, and effective action to protect Canadians from the impacts of the pandemic. Canada entered
 this crisis with a strong balance sheet, the lowest net debt-to-GDP ratio in the G7, and historically low
 borrowing rates, giving the government the ability to respond to the immediate needs of Canadians with decisive
 action and protect the Canadian economy from the unprecedented nature of the COVID-19 pandemic.

The first priority of the Plan is to protect the health and safety of Canadians by supporting efforts to
 contain the virus and help Canada’s public health and health care systems prepare for the pandemic.

On the advice of public health officials, jurisdictions across Canada took measures to protect the health and
 safety of Canadians through physical distancing, temporary restrictions on non-essential businesses and school
 closures. These measures had a significant impact on the daily lives of Canadians and their families and led to
 job losses and reduced employment income. The economic downturn is having a disproportionate impact on some
 segments of the population. The Plan was designed to provide support to those who need it the most.

The Plan is supporting workplaces of all sizes across sectors, protecting jobs from coast to coast to coast and
 helping Canadians return to work. It is also providing direct support to Canadians so that if they are not able
 to work they can keep a roof over their heads, put food on the table and pay their bills during this difficult
 period.

Through this Plan, the government has committed:

- Over $212 billion in direct support to Canadians and businesses;
- $85 billion in tax and customs duty payment deferrals to meet liquidity needs of businesses and households;
- $5.8 billion in support for coordinated federal, provincial and territorial action to strengthen critical
 health care systems, purchase personal protective equipment and supplies and support critical medical research
 and vaccine developments; and,
- Approximately $14 billion to support provinces and territories in the safe reopening of the country’s
 economies over the next 6 – 8 months.

The government has also made $600 billion in liquidity support accessible to help ensure that businesses could
 continue to access credit and to promote well-functioning provincial funding markets. Liquidity support has been
 delivered in coordination with the Bank of Canada, the Office of the Superintendent of Financial Institutions
 (OSFI), the Canada Mortgage and Housing Corporation (CMHC) and commercial lenders.

The government continues to take the necessary steps to implement the Plan and ensure timely access to the
 income support and credit relief that Canadians and businesses of all sizes across this country need to manage
 the pressures they are facing as a result of COVID-19.

The measures introduced in the Plan, combined with over $65.6 billion in direct support and liquidity measures
 from provinces and territories, will ensure that the Canadian economy is well-positioned to recover when the
 crisis subsides.

Table 1.1

Canada’s COVID-19 Economic Response –Federal, Provincial and Territorial Support Summary

Federal | Provincial and Territorial | Total
Impact ($ billions) 1
Direct 2 | 231.9 | 24.1 | 256.0
Tax, Customs Duty payment and Fee Deferrals | 85.0 | 38.2 | 123.2
Liquidity 3 | 86.5 | 3.3 | 89.8
Total | 403.4 | 65.6 | 469.0
Share of Spending (per cent)
Direct | 91 | 9 | 100
Tax, Customs Duty payment and Fee Deferrals | 69 | 31 | 100
Liquidity | 96 | 4 | 100
Total | 86 | 14 | 100
Note 1 Sources: Provincial and territorial government announcements; Department of Finance
 calculations. As of July 3, 2020. For federal totals, the data reflects the total impact which differs
 from fiscal cost on an accrual basis – see Annex 2 for additional details. Totals may not add due to
 rounding. 2 Direct federal measures include a series of supports for the health sector and safety of
 Canadians to be comparable with the provincial-territorial measure categorization. It also includes the
 approximately $14 billion announced by the government to support provinces and territories in the safe
 reopening of the country’s economies over the next 6 – 8 months. 3 Federal liquidity measures include the Business Credit Availability Program (BCAP) and credit
 and liquidity support for the agricultural sector. For comparison purposes, this does not include other
 credit and liquidity support measures ($600 billion) made available by the federal government in
 coordination with the Bank of Canada, OSFI, CMHC and commercial lenders. Provincial support includes credits
 and other deferrals.

A Decisive and Rapid Response

Recognizing the acute impact of the pandemic on Canadians, the government’s approach was to rapidly move
 forward with support measures and to tailor them once the main elements were in place. The priority was getting
 support out to Canadians as quickly as possible, and the government did so through a mix of existing systems and
 the rapid design and delivery of brand new programs.

The Plan is focussed on three broad areas of support:

Health Care System and Safety of
 Canadians

- Includes provinces and territories, industry and research organizations, international partners and
 Canadians abroad

Support to Individuals

- Includes workers, students, families, seniors, and vulnerable groups

Support to Businesses

- Includes small, medium and large enterprises, and hard-hit sectors

Protecting the Health of Canadians

Since the beginning of March, the government has made a number of key investments to help provinces and
 territories ensure that hospitals, clinics, and public health agencies across the country are able to respond to
 the critical health needs of Canadians caused by COVID-19 and to limit the spread of the virus in Canada.

Canada reacted quickly to reduce the risk of cases being imported from abroad, announcing on March 16 the
 closure of its non-U.S. international borders to non-residents and announcing on March 20, the closure of its
 border with the United States.

Canada also took timely action with respect to testing and investing in a health response early on. Screening
 for COVID-19 was implemented widely and at a greater rate per capita than other countries at the outset of the
 outbreak. Currently, Canada continues to have a high testing rate internationally. Canada also announced
 investments of $275 million on March 11, 2020 to fund COVID-19 research and development to give Canada a head
 start in dealing with the outbreak.

Preparing our Public Health Care Systems

Canada took early and significant actions to support the capacity of health care systems across the country. On
 March 11, 2020, the Prime Minister also announced $500 million for provinces and territories to support critical
 health care systems, as well as access to testing, acquisition of equipment, and to enhance surveillance and
 monitoring.

In addition, on May 3, 2020, the government announced $240.5 million to develop, expand, and launch virtual
 care and mental health tools to support Canadians. Working with provinces, territories, and stakeholders, this
 investment will be used to create digital platforms and applications, improve access to virtual mental health
 supports, and expand capacity to deliver health care virtually, including projects to reach vulnerable
 Canadians. These supports ensure Canadians can continue to access health care, while reducing the possibility of
 their exposure to COVID-19.

Procuring Personal Protective Equipment

The federal government is working to ensure that Canada and all its provinces and territories have access to
 personal protective equipment (PPE) and are prepared for the months and years ahead. As the demand for PPE goes
 up around the world, Canada is keeping up. From the outset of this crisis, Canada’s strategy has been to
 aggressively procure PPE in a highly competitive global marketplace and to diversify its supply chains,
 especially by engaging domestic suppliers. Canada will remain vigilant in procuring vital supplies to keep our
 doctors, nurses and frontline health care workers well-equipped and keep all Canadians safe in the months and
 years ahead.

The Government of Canada is investing $2 billion to support diagnostic testing and to purchase ventilators and
 personal protective equipment, including for bulk purchases with provinces and territories. Personal protective
 equipment includes things like masks and face shields, gowns, and hand sanitizer.

Investing in Made-in-Canada Personal Protective
 Equipment

On March 20, 2020, the Government of Canada sent a call to action to Canadian businesses and manufacturers to
 help deliver critical health supplies in order to help Canada fight the COVID-19 pandemic. Since then, over
 6,000 Canadian companies, organizations and individuals have stepped up to offer their expertise and capacity.

This includes efforts from companies to re-tool their facilities and double their production capacity, to
 collect and donate existing supplies and equipment, and to combine resources to manufacture needed supplies more
 quickly.

Supporting Medical Research and Vaccine Development

Researchers and scientists in Canada and around the world are working hard to better understand the virus and
 its impacts on people and communities. Through this Plan, the government has committed nearly $1.4 billion to
 support COVID-19 medical research and vaccine development. This funding is enabling researchers and the private
 sector to accelerate the development, testing and implementation of medical, social and policy countermeasures
 to limit the rapid spread of COVID-19.

Of this support, $792 million will be provided through the Strategic Innovation Fund and the remaining funding
 will be directed to a number of research and development organizations, including: the Canadian Institutes of
 Health Research, the Vaccine and Infectious Disease Organization-International Vaccine Centre, the National

 Research Council’s Human Health Therapeutics Royalmount facility, the Canadian Immunization Research
 Network and the Canadian COVID-19 Genomics Network.

Canada has also established a COVID-19 Immunity Task Force to track the spread of the virus and estimate
 potential immunity in Canadian populations.

Leveraging Canadian Expertise

$46 million will be directed to support the University of Saskatchewan’s Vaccine and Infectious
 Disease Organization – International Vaccine Centre (VIDO-InterVac), one of the largest and most
 advanced infectious disease research facilities in the world.

With this funding, VIDO-InterVac will be able to strengthen its existing expertise in coronavirus research,
 help research and develop a vaccine for COVID-19, and expand its bio-manufacturing capacity to support
 clinical trials.

Protecting Jobs

Protecting Canadian jobs has been a priority throughout the COVID-19 pandemic. Even as businesses have slowed
 down in accordance with public health guidance, finding solutions to preserve the connection between employees
 and employers is critical to Canada’s continued economic resilience.

The government has provided support for businesses of all sizes, across sectors, from coast to coast to coast.
 The Business Credit Availability Program (BCAP) is ensuring workplaces can get the liquidity support they need
 to maintain operations and keep employees on. Support through each of Canada’s six Regional Development
 Agencies is ensuring businesses in all communities, including in rural communities, get access to the support
 they need to protect jobs and weather this storm.

Through a variety of programs, tailored to the varying needs of Canada’s diverse economy, the federal
 government is making sure that businesses can get flexible support, so that Canada’s economy is stable and
 so that Canadians’ jobs are protected.

Wage Top-Up for Essential Workers

While public health authorities asked Canadians to stay home, millions of brave workers risked their health
 to provide Canadians with essential care and services. Every day they went to work so that our families
 could stay safe and healthy. The Government of Canada believed that they deserved a raise.

The government has worked with provinces and territories on cost-shared wage top-ups for essential workers,
 providing up to $3 billion for this program. Each province and territory is determining which workers are
 eligible for support and how much they will receive. This much-needed and much-deserved support is there for
 workers in essential service sectors such as health, food, water, transportation, safety and others who are
 keeping Canada strong and healthy during this difficult time.

Canada Emergency Wage Subsidy (CEWS)

To help keep Canadians employed and support businesses, the government introduced the Canada Emergency Wage
 Subsidy – a wage subsidy of 75 per cent for qualifying employers, up to $847 per week per employee,
 beginning March 15, 2020.

CEWS gives employers financial support so they can keep or re-hire their workers. To date, CEWS has made sure
 millions of Canadian workers are still getting paycheques from their employer and are ready to be back at work
 as soon as public health measures allow.

By protecting the employee-employer relationship, this program also ensures supply chains are able to rebound
 from the crisis in a strong position.

Employers of all sizes and across all sectors of the economy are eligible, with certain exceptions. When
 first launched, the program was intended to last 12 weeks, beginning March 15. To receive the subsidy, eligible
 employers had to have seen a drop of at least 15 per cent of their revenue in March 2020 or 30 per cent in April
 or May.

Taking into consideration the comments of key business and labour organizations during April and early May, the
 government announced on May 15, 2020 a proposal to extend the CEWS by an additional 12 weeks to
 August 29, 2020.

The government consulted with businesses, labour representatives, not-for-profit organizations and registered
 charities as well as individual Canadians on potential adjustments to the CEWS that would maximize employment
 and reflect the needs of employers.

As economies reopen and business activity resumes, the government will soon announce changes to the CEWS to
 stimulate rehiring, provide support to businesses during reopening and help them adapt to the new normal. In
 anticipation of this forthcoming announcement, the government has set aside additional funding as part of the 2020 Economic and Fiscal Snapshot.

Supporting Individuals and Families

In March, the government announced $5.5 billion in financial support for low- and modest-income Canadians
 through a special top-up payment under the Goods and Services Tax (GST) Credit. This support was delivered
 in April to over 12 million individuals and families, giving, on average, single adults almost $400 more, and
 couples almost $600 more.

In May, to help families with children cope with the added pressures of COVID-19, the government delivered
 almost $2 billion in additional support through a special one-time $300 top-up of the Canada Child Benefit
 (CCB) for each child. In the vast majority of cases, the increased CCB directly benefitted mothers, including
 single mothers who represent about 85 per cent of single-parent families receiving the benefit. The increased
 CCB was particularly helpful for low-and modest-income families, with about one-quarter of the additional
 support provided to families with net incomes under $30,000.

A Middle Income Family of Four

Nathan and Emily live with their two young children.

- Nathan is a self-employed barber who makes an annual income of approximately $34,000. When the lockdown
 began, he was unable to provide services to any of his clients due to the closure of the barbershop where
 he works, leaving him with no income for the month of April. Nathan was able to access the Canada Emergency Response Benefit (CERB) and received $2,000 a month
 during April and May which represents just over 70 per cent of his regular monthly income before
 taxes. As a result of the expanded eligibility rules announced in April, Nathan was also able to take
 on a small contract (less than $1,000) mid-May providing haircare tutorials online without affecting
 his CERB eligibility. Should he require it, Nathan will be able to access the CERB up to a maximum of
 24 weeks. Nathan was also able to take advantage of the GST/HST deferral, which provided much-needed
 cash-flow relief during the initial months of the crisis.
- Emily is the manager of a local restaurant and she had an annual salary of $60,000. She was furloughed
 when the restaurant was forced to fully close on March 15 due to COVID-19 health and safety restrictions
 and was able to return to work at the end of May now that certain public health restrictions in her
 community have been lifted. Emily has been able to receive paycheques thanks to the CEWS program, receiving the maximum of $847
 per week. Her salary was funded while she was furloughed and continues to be funded now that she is an
 active employee through the CEWS. Emily’s employer may continue to be able to access the CEWS
 until August 29, 2020. Her Canada Student Loan repayments were also deferred beginning March 30, until
 September 30, which represents savings of, on average, $160 per month.

In addition to the CERB and CEWS income support, Nathan and Emily received a $600 top-up in their CCB
 payment for May to help support their family’s needs. Combined, these measures provided Nathan and
 Emily up to $20,152* in financial support between March 15-July 4 to help them through this
 difficult time.

A Low Income Family of Four

Luc and Jada are a young couple with two young children.

- In mid-March, Luc was laid off by his employer in the construction industry where he was receiving a
 salary of $700 per week. He was not eligible for Employment Insurance (EI). After applying in early April, Luc started to receive income support of $2,000 monthly through the
 Canada Emergency Response Benefit (CERB). In early May, he received notice from his former employer
 that his position was being re-instated as of May 11, as the company claimed the Canada Emergency Wage
 Subsidy (CEWS) to help cover the cost of his salary. The CEWS will subsidize 75 per cent of
 Luc’s wages upon his return to work.
- Jada is currently a part-time student in the third year of her Bachelor of Commerce program. During the summer, Jada works part time for a seasonal gift shop to help pay for her tuition and the
 family’s day-to-day expenses. She was told that the shop would not be opening until later this
 summer and she is now worried that she may not be able to afford classes in the fall. Changes to the
 Canada Student Loans Program will help ensure Jada is able to return to school in the fall, since she
 will receive additional financial assistance, including up to $7,440 in non-repayable grants, which
 she can use to cover her expenses in September. Further, to help with managing the family’s
 bills this summer, Jada will be eligible to receive the Canada Emergency Student Benefit, which
 provides her with $2,000 per month, for any month she is unable to find work between May and August
 2020.

The family also received a special GST Credit Top-up payment of $886 in April and their May CCB payment was
 boosted by $600. These supports provided Luc and Jada up to $13,686* between March 15
 – July 4 to help them support their family’s needs and up to $7,440 in
 non-repayable student financial assistance will be available to help with Jada’s tuition in the Fall.

*Taxes on these amounts are not reflected.

Supporting Seniors

The pandemic has been especially difficult for Canadian seniors—they face the most significant health
 risks from COVID-19 and have been isolated from family and loved ones in order to reduce their risk of exposure.
 They are also facing financial vulnerabilities as volatile markets affect their retirement savings. Seniors may
 have to remain isolated for longer than others and may also face additional expenses, such as delivery service
 fees. The government has introduced a range of measures to support seniors.

- Providing one-time tax-free payments of $300 for seniors eligible for the Old Age Security (OAS) pension,
 and an additional $200 for seniors eligible for the Guaranteed Income Supplement (GIS), for a total of $500
 for those eligible to receive both OAS and GIS. Of the 6.7 million seniors eligible for OAS, 54 per cent are
 women, while women comprise close to 60 per cent of those eligible for GIS. Service Canada plans to make the
 payments the week of July 6.
- Reducing required minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25 per cent for
 2020, in recognition of volatile market conditions and their impacts on seniors’ retirement savings.
- Expanding the New Horizons for Seniors Program with new funding of $20 million in 2020-21 to support
 organizations that offer community-based projects that reduce isolation, improve the quality of life of
 seniors and help them maintain a social support network. Additionally, a $9 million contribution from
 2019-2020 funding was provided through the United Way to local organizations to support immediate essential
 services to seniors affected by COVID-19.
- Temporarily extending GIS and Allowance payments if seniors’ 2019 income information has not been
 assessed. This will ensure that the most vulnerable seniors continue to receive their benefits when they need
 them the most.
- Providing a one-time special top-up payment through the Goods and Services Tax (GST) Credit in April.
 More than 4 million seniors benefitted from this measure; eligible seniors received an average of $375
 if they were single and $510 for couples.

A Single Low-Income Senior

Laurence is a seventy-year-old single senior. She receives a CPP retirement pension as
 well as income from a workplace pension, besides OAS and GIS benefits as well as the GST Credit.

- In April, Laurence received $443 from the special GST Credit top-up payment, the maximum amount for a
 single adult with no dependent children.
- Laurence is taking precautions to avoid exposure to the virus and is isolating. She was able to join
 phone-based get-togethers with friends thanks to the efforts of a local seniors support group. Another
 community group has arranged to deliver her groceries a couple of times. The government has provided a
 $9-million contribution to the United Way, and is providing additional new funding of $20 million to the
 New Horizons for Seniors program this year, to further support such activities.
- In the week of July 6, Laurence will be receiving $500 from the one-time payment for seniors eligible
 for OAS and GIS ($300 in respect of OAS and another $200 in respect of GIS).

Taken together, the special GST Credit Top-up payment and the one-time payment for seniors eligible for OAS
 and GIS will provide Laurence $943 in financial support.

Supporting Vulnerable Canadians

COVID-19 is having disproportionate health, social and economic impacts on vulnerable populations. The
 government has introduced a series of measures to ensure that vulnerable Canadians have access to the supports
 they need. These include, for example:

- $157.5 million for community partners to address the shelter and safety needs of people experiencing
 homelessness, with funding used to help manage or prevent an outbreak in the shelter system.
- $50 million for over 500 women’s shelters and sexual assault centres, to help address the immediate
 needs of women and children fleeing gender-based violence in cases where home isn’t a safe place. This
 includes $10 million for the existing network of 46 emergency shelters on First Nations reserves and in the
 Yukon to support Indigenous women and children fleeing violence.
- $7.5 million for Kids Help Phone to address the emotional and mental health needs of children and youth
 resulting from the COVID-19 pandemic,
- $100 million to support food banks, and other organizations providing emergency hunger relief, that are
 facing increased demand for their services. One in three Canadian who are not at work because of
 COVID-19-related closures are going hungry, according to a May report from Statistics Canada. This funding
 will be used to purchase food and other basic necessities.
- $350 million in 2020-21 to establish an Emergency Community Support Fund to support charities and
 non-profits that deliver essential services to serve vulnerable people. 772 projects have been funded as of
 June 9, 2020.

To respond to the significant challenges that Canadians with disabilities are facing because of COVID-19, as
 they work to access essential services and care and provide for their families, the government is stepping up to
 make sure they have the support they need to make it through this crisis.

- Providing funding of $556.7 million for a one-time, tax-free payment for Canadians with a valid Disability
 Tax Credit (DTC) certificate as of June 1, 2020. The payment will be $600 for such Canadians, and it will be
 adjusted to take into account the amount received under the special one-time payment for seniors eligible for
 OAS and GIS.
- Providing new funding of $15 million for the creation of a National Workplace Accessibility Stream of the
 Opportunities Fund for Persons with Disabilities to help Canadians with disabilities and their employers to
 improve workplace accessibility and access to jobs.
- Students with disabilities are also benefiting from an extra $750 per month under the Canada Emergency
 Student Benefit ($2,000 per month instead of $1,250) and doubling of the Canada Student Grants for Students
 with Permanent Disabilities.

Supporting Indigenous Communities

COVID-19 has further highlighted many existing challenges facing Indigenous peoples, particularly, those who
 live in remote areas. Indigenous communities are incredibly resilient and have implemented innovative solutions
 to prevent the spread and manage the impact of COVID-19.

The government has introduced a number of measures to build on community-led solutions and support an immediate
 public health, social and economic response in Indigenous communities, investing over $1.4 billion so far:

- $380 million for specific distinctions-based support for Indigenous communities, with dedicated funding for
 urban and off-reserve Indigenous organizations.
- $270 million for the on-reserve Income Assistance Program to address increased demand and help individuals
 and families meet their essential living expenses.
- $29 million (2020-21 and 2021-22) to help build and operate 10 shelters in First Nations communities on
 reserve across the country, and two shelters in the territories, to support Indigenous women and children
 experiencing and fleeing violence.
- $285.1 million to enhance public health measures in Indigenous communities.
- $75.2 million to increase existing distinctions-based support for First Nations, Inuit, and Métis
 Nation students pursuing post-secondary education.
- $306.8 million to support Indigenous businesses, as well as for operating expenses and liquidity pressures
 of Aboriginal Financial Institutions.
- $133 million to help Indigenous communities support their local businesses and economies, including support
 for community-owned Indigenous businesses and Indigenous businesses operating in the tourism sector.
- $17 million to provide interest payment relief for First Nations with existing loans under the First Nations
 Finance Authority.

Additional information on how the Plan addresses a number of the disproportionate impacts of the pandemic on
 various groups of people within Canada can be found in the Gender-Based Analysis Plus (GBA+) Summary of the Plan
 below as well as in Annex 1 of this report.

Delivering Immediate Income Support

Through the Plan, the government has sought to provide generous income support to those most affected by the
 crisis, while simultaneously creating incentives for safe participation in the labour market.

In the months that followed the introduction of the Government’s first response measures, Canadians have
 been able to access the income support they need and are less anxious about their financial situation than they
 expected to be at this time (Chart 1.1).

According to a recent survey by the Angus-Reid Institute, 30 per cent of those surveyed in March initially
 expressed concern over their ability to pay rent or their mortgage. In May, the data showed that this concern
 had not materialized for the vast majority of Canadians, with 6 per cent having been unable to pay these monthly
 bills during this period. Further, Canadians expressed increased confidence about an economic recovery, with
 households feeling relatively confident about their own personal finances.

Chart 1.1

Canadian Household Economic Concerns (March 20-23 versus May 4-6, 2020)

Canadian Consumer Confidence (June 14, 2019 to June 26, 2020)

This massive effort to help support households has helped to stabilize the Canadian economy when it was needed
 most and helped to protect the most vulnerable from the immediate effects of an unprecedented economic crisis.

Canada Emergency Response Benefit (CERB)

From the beginning of the crisis, the government recognized that an unprecedented number of Canadians were
 going to need income support. Unlike many other countries, Canada proactively established new programs to ensure
 that people who needed it could get simple and timely access to income supports to help cover their essentials.

In mid-March, record levels of Employment Insurance (EI) claims were made. It was clear that the EI system
 could not handle this sudden surge in volume. There were also hundreds of thousands of Canadians, including
 contract and self-employed workers, who were not eligible for EI.

The government immediately recognized the urgency of providing financial support to millions of vulnerable
 Canadian families and created a new benefit, the Canada Emergency Response Benefit (CERB). The CERB has provided
 payments of $2,000 per month to millions of individuals.

The program was originally designed to provide 16 weeks of support but as economies slowly and safely restart,
 many Canadians still face challenges. To ensure Canadians continue to have the help they need as they transition
 back to work, the government has extended the CERB for up to a total of 24 weeks. As announced by the Prime
 Minister on June 16, the government will monitor international best practices, the economy, and the progression
 of the virus and, if needed, make necessary changes to the program later this summer so people can have the help
 they need while supporting the recovery.

Figure 1.1

Canada Emergency Response Benefit (CERB) Take-Up

In aggregate terms, CERB payments made from mid-March to May have largely replaced all the employment income
 lost by Canadians during the pandemic (Chart 1.2). For lower-income and vulnerable Canadians, who were
 especially hard-hit by the crisis, this support has been critical in helping them afford essentials like rent,
 groceries and medicine.

Chart 1.2

Weekly Earnings Shortfall Versus Average Weekly CERB Payment (March to May) billions of dollars

Not all groups have been equally affected by the economic crisis (Chart 1.3). Women have experienced more
 layoffs and a larger reduction in hours worked, with fewer able to get back to work as the economy began to
 recover in May. Low-wage workers, youth and very recent immigrants bore the brunt of employment losses in March
 and April. Moreover, working parents have also been hard hit by the downturn, with the working hours of mothers
 of young kids falling proportionally more than other mothers, reinforcing the important role of child care in
 helping Canadians return to work when jobs become available.

Chart 1.3

Share of Workers Substantially Affected by COVID-19, by Age and Sex, February to May

Decline in Total Hours Worked by Women by Age of Youngest Child, February to May

For some groups, including youth and very recent immigrants, employment has shown very little recovery in May.
 These results reflect the staggered approach to re-opening the economy and employment patterns across groups.
 Certain sectors like manufacturing and construction work, which account for a greater proportion of men
 employed, have seen employment rebounding, while other sectors like accommodation and food services, which
 employs a large number of women and immigrants, are still slowed down because of public health measures and low
 levels of demand. Addressing these very real gaps in employment as they evolve remains a priority for the
 government. Although our data does not yet fully capture the unique experiences of racialized Canadians, we
 recognize that racialized people, including Black Canadians, are more likely to work frontline jobs, have lower
 incomes, have health disparities, and experience systemic discrimination, which compound economic hardships
 related to the pandemic.

Canada Emergency Student Benefit (CESB)

Post-secondary students and recent graduates are also feeling the impacts of the pandemic. They are at a
 critical stage of life, needing income at the end of the school year to help with living expenses or save for
 next semester’s tuition, but are facing a challenge finding work due to COVID-19. Additionally, women are
 already facing increased unemployment during COVID-19 and may make up more of the student population that is
 ineligible for CERB, as around 60 per cent of all post-secondary students in Canada are women. Further, students
 are highly likely to be below the age of 29, and are less likely to have the financial security to weather a
 period of unemployment.

To support students and new grads who do not qualify for the CERB or EI, and who are unable to find employment
 or unable to work because of COVID-19, the government created the Canada Emergency Student Benefit (CESB). The
 CESB, available for four months (from May to August 2020), was designed to address the unique labour market
 challenges of students and support them as they work towards their goals.

Figure 1.2

Canada Emergency Student Benefit (CESB) Take-Up

As of July 2, 2020

Additionally, 165,008 applications have been received for the enhanced benefit amount, which provides an
 additional $750 per month on top of the $1,250 base benefit amount to eligible students with dependants or a
 disability.

According to a crowdsourcing survey conducted by Statistics Canada from April 19 to May 1, 2020, prior to the
 announcement of the CESB, 73 per cent of continuing post-secondary students were very or extremely concerned
 about using up their savings and 61 per cent were very or extremely concerned about increased student debt.
 After the announcement, these shares declined to 61 per cent and 47 per cent, respectively.

Low Income Student (Post-Secondary)

Anna is a 20-year-old student who recently completed her second year of full-time studies.

Last year, Anna worked full-time during the summer, earning minimum wage ($2,400 per month), in order to
 cover her living expenses while living away from home and to save for the upcoming school year. Due to the
 economic impacts of the COVID-19 health emergency, Anna did not find a full-time job this summer, leaving
 her unable to pay for immediate expenses such as rent and food, while also putting in jeopardy her ability
 to continue her studies in the fall. Anna is not eligible for Employment Insurance (EI) or for the Canada
 Emergency Response Benefit (CERB), since she was not employed when the health emergency began.

- To provide much needed support over the summer, Anna will receive the Canada Emergency Student Benefit
 (CESB), which will provide her with $1,250 per month from May through August 2020.
- While receiving the CESB and continuing to look for work, Anna decided to volunteer in a service
 position with a local community organization to support the broader COVID-19 response. Anna’s
 contribution will be recognized through the Canada Student Service Grant, which will provide up to $5,000
 towards her post-secondary education costs in the fall.
- To further ensure that Anna is financially able to return to campus in September, changes to the Canada
 Student Loans Program will mean Anna will receive up to $6,000 in non-repayable financial assistance,
 support that Anna can use to cover tuition, books and living expenses.
- In April, Anna received a special GST Credit top-up payment of $290 to help her cover immediate
 expenses.
- Anna will receive $1,250 for each month she is unable to find work, from May to August 2020, for a
 maximum of $5,290 in income support . She is also eligible for up to $11,000 in
 non-repayable grants to cover her post-secondary education costs in the fall.

Building a Bridge for Businesses

The Plan has been focused on creating bridge financing for businesses of all sizes, and helping them deal with
 their fixed costs during this crisis, so they can remain solvent and keep Canadians employed. Supports for
 businesses have been tailored by firm size and relative access to other sources of financing. They are designed
 to provide a continuum of financing support across the economy to make sure that, no matter where Canadians
 work, the government is providing support.

Figure 1.3

Range of Business Segments Considered for Financing Support 1

The goal of the Plan is to help businesses access the credit they need to weather the current crisis and so
 they can be there for their employees and Canadians when this passes. Business financing supports are intended
 to be comprehensive, fair and temporary. They have been timely and sequenced, with the required speed and
 flexibility at the small business level. For larger firms, a more commercial approach was developed to meet
 their financing needs, as these firms tend to have more potential sources of financing.

Support for Small and Medium-sized Enterprises

Revenues <$1M-$50M

- Income Tax, Sales Tax and Customs Duty Payment Deferrals
- Business Credit Availability Program Canada Emergency Business Account Small to Medium-sized Enterprise Loan and Guarantee Program
- Canada Emergency Commercial Rent Assistance for Small Businesses
- Additional support via Regional Development Agencies, Community Futures Program, and the National
 Research Council, Industrial Research Assistance Program
- Indigenous and Northern Business Supports
- Women Entrepreneurship Strategy Funding
- Fish Harvester Grant
- Enhancements to the Work-Sharing Program

From the start, the government was focused on providing support to small businesses in the fastest way
 possible. 98 per cent of all employers in Canada are small businesses. They provide good local jobs and are
 often at the heart of their communities. These businesses often have comparatively more limited access to
 capital and financing than larger firms. Small businesses also often have a limited capacity to service
 additional debt and need targeted support to manage fixed costs. The Plan provides targeted support to small
 businesses, helping them bridge through this challenging economic period.

Figure 1.4

Key Supports for Small and Medium-Sized Businesses

Measures for small businesses have been designed to provide timely support for those struggling to manage fixed
 costs, such as salaries and rent. Under the Plan, small businesses affected by COVID-19 are able to benefit from
 the Canada Emergency Commercial Rent Assistance (CECRA), which, in partnership with the provinces and
 territories, provides forgivable loans to qualifying commercial property owners to reduce the rent owed by
 eligible small businesses by 75 per cent. This, in addition to the CEWS, will offer significant relief to small
 businesses struggling to manage their monthly fixed costs.

As of July 3, CMHC, the CECRA program administrator, has approved applications representing over 29,000 small
 businesses with over 209,000 employees, and total requested funding of over $221 million. In addition to
 thousands of applications from property owners in progress or being processed, CMHC is working closely with
 large property owners to complete applications to provide rent support to a further 25,000 small businesses.
 CECRA funding to date has been provided to a broad cross-section of Canadian small businesses in all provinces
 and territories, including restaurants, retail stores, medical and dental clinics, hair and nail salons, gyms
 and dance studios, and many more. To provide further support as hard hit businesses begin to re-open, the
 Government has since announced that CECRA will be extended a further month, covering July rent.

Local, Family-owned Restaurant

Sammy owns a family-run restaurant that his parents opened when they immigrated to Canada.

- In March, to comply with emergency measures, Sammy was forced to temporarily close the restaurant, and
 layoff the restaurant’s employees with no pay. Sammy’s restaurant never offered take-out or
 delivery, but, on April 19, Sammy decided to offer these services to the community, and was able to hire
 back four of his staff, each with a salary of $750 per week. Despite his efforts, Sammy experienced an
 average revenue decline of more than 70 per cent from April to June compared to the corresponding periods
 in 2019.
- Sammy was very concerned about how to pay his $5,000 in rent. In late March, Sammy approached his
 property owner, Mary, about the possibility of reducing his monthly rent. While Mary was very sympathetic,
 and concerned about her ability to preserve her future rental revenue should Sammy lose his business, she
 was only able to defer a portion of Sammy’s rent given her own expenses to maintain the commercial
 property.
- Sammy and Mary were able to access the CECRA. Mary obtained a forgivable loan from CMHC in the amount of
 $7,500, equal to 50 per cent of Sammy’s gross monthly rent for April, May and June, and is
 considering applying for the one-month extension to provide Sammy with a bridge to relaunch his business
 as the economy re-opens. Sammy and Mary equitably shared the remaining 50 per cent of Sammy’s
 monthly rent, reducing Sammy’s rental obligations to a more manageable $1,250 per month for the
 corresponding period.
- Sammy was able to access the CEWS which provides a subsidy of 75 per cent of an employee’s salary
 to help him pay for his labour costs. For the months of April to early June, he received a total of
 $15,750 in CEWS support to pay his four employees.
- Sammy was also able to access the Canada Emergency Business Account, an interest-free, partially
 forgivable loan of up to $40,000 to help pay non-deferrable operating expenses for his business, including
 the rent and payroll expenses remaining after receiving CECRA and CEWS. Through his financial
 institution, Sammy could also apply for the SME Loan and Guarantee Program under the Business Credit
 Available Program should he need additional financing.
- In addition, Sammy has the flexibility to defer any payment of income tax amounts that become owing
 until after August 31, 2020, and was able to defer remittance of collected GST/HST and customs duties
 until June 30.

Small businesses also have access to the Canada Emergency Business Account (CEBA), which is part of the
 Plan’s Business Credit Availability Program (BCAP). The CEBA provides interest-free, partially forgivable
 loans of up to $40,000 and is offered through financial institutions, such as banks and credit unions, in
 cooperation with Export Development Canada. This approach uses existing relationships between businesses and
 their financial institutions and enables support to be provided broadly and rapidly. As of July 3, 688,000
 applicants have been approved for CEBA for a total of $27.41 billion in cumulative funds disbursed, including $7
 billion which is forgivable if the loan is paid back before December 31, 2022 (Chart 1.4). Over 65 per cent of
 the businesses eligible based on the payroll criteria have benefited from the program based on the initial set
 of eligibility criteria through early June.

Through the BCAP, small to medium-sized businesses can also access a wider range of credit and liquidity
 support, up to $12.5 million through the Small and Medium Enterprise co-lending program and a further loan
 of up to $6.25 million under the BCAP Guarantee program. As of July 3, 148 guarantees have been confirmed
 for a total loan value of over $303.59 million. Based on the experience with similar products made available
 during the 2008-2009 financial crisis, uptake of these programs is expected to grow steadily over time.

Chart 1.4

Canada Emergency Business Account (CEBA) Program Status 1

A Small Manufacturing Company

Ali owns a small manufacturing corporation in Markham, Ontario that fabricates auto parts.
 75 per cent of its output is exported. The company employs 25 full time employees, each earning an
 average monthly salary of $4,250. They have had a few large orders suspended, resulting in a 35 per cent
 revenue drop.

The company was able to access the CEWS for wage subsidies of $79,688/month, for a total benefit of
 $239,063 for the period of March 15 to June 6, 2020 to maintain its workforce of 25 employees. It can defer
 any payment of income tax amounts that become owing until after August 31, 2020, giving the business more
 financial flexibility to address immediate needs. The company was also able to defer payments of GST/HST, as
 well as customs duty payments on imports, until June 30.

Ali was also able to access the Canada Emergency Business Account, an interest-free, partially forgivable
 loan of up to $40,000 to help pay non-deferrable operating expenses for his business, including the rent and
 payroll expenses.

Ali can also speak to his bank about existing business credit products and specific opportunities for
 relief. If his needs exceed the level of support Ali’s bank is able to provide, the bank could utilize
 the BCAP SME Loan and Guarantee Program that may offer up to $18.75 million of additional credit for the
 company.

Support for Mid-market to Large Enterprises

Revenues <$50-$300M+

- Income Tax, Sales Tax and Customs Duty Payment Deferrals
- Sector Supports (e.g., Transportation, Agriculture, Energy, Culture, Heritage and Sport, Fish and
 Seafood Processing)
- Financial sector liquidity and market functioning facilities
- Business Credit Availability Program (BCAP)
- Mid-market Guarantee and Financing Program (BCAP)
- Large Employer Emergency Financing Facility
- Enhancements to the Work-Sharing Program

Millions of Canadians are employed by mid-market and large businesses. The government recognizes that firms of
 all sizes need access to support to weather the COVID-19 pandemic and to recover. Access to financing has become
 more challenging for companies of all sizes, including larger companies, because the duration of the economic
 disruption caused by COVID-19 is uncertain and future demand for goods and services is difficult to predict.
 Companies that would be financially viable after the crisis may not be able to maintain operations until then
 without additional credit support.

The BCAP is providing support tailored for mid-market businesses across the economy with larger financing
 needs. These companies tend to have annual revenues of between $50 million and $300 million. Support for
 these businesses will include loans of up to $60 million per company and guarantees of up to $80 million.

Larger companies are regionally or nationally important and key suppliers of goods and services in supply
 chains. Access to financing supports ensures larger companies can pay the salaries of millions of Canadians
 these businesses employ, and support the suppliers who rely on their business.

The Plan offers support for Canada’s largest employers to help protect the jobs of millions of Canadians.
 The Large Employer Emergency Financing Facility (LEEFF) offers bridge financing to Canada’s largest
 employers, whose needs during the pandemic are not being met through conventional financing. To qualify for
 LEEFF, eligible enterprises must be seeking financing of $60 million or more; have significant operations or
 workforce in Canada; and not be involved in active insolvency proceedings. Companies that have been convicted of
 tax evasion are not eligible to apply to LEEFF. Companies that receive LEEFF funding are required to publish an
 annual climate-related financial disclosure report, consistent with the Financial Stability Board’s Task
 Force on Climate-related Disclosures, and provide information on how they are contributing to achieving
 Canada’s commitments under the Paris Agreement and goal of net-zero by 2050. Companies are also required
 to meet obligations under existing pension plans and collective bargaining agreements.

Market Liquidity and Credit Support

From the outset, the government moved quickly to support market liquidity to help ensure that businesses could
 continue to access credit and promote well-functioning provincial funding markets. In cooperation with the Bank
 of Canada, the Office of the Superintendent of Financial Institutions (OSFI), the Canada Mortgage and Housing
 Corporation (CMHC) and commercial lenders, the government made over $600 billion in liquidity support
 accessible.

For example, the Bank implemented facilities to support key financial markets and financial institution
 liquidity so that they could continue to serve businesses and households and support liquid and well-functioning
 provincial funding markets. OSFI lowered the Domestic Stability Buffer to increase the lending capacity of
 Canada’s large banks and support the supply of up to $300 billion in additional lending into the economy.
 The government also announced that CMHC would purchase up to $150 billion in insured mortgage pools to provide
 long-term stable funding to banks and mortgage lenders, help facilitate continued lending to Canadian consumers
 and businesses, and add liquidity to Canada’s mortgage market.

Regional Support

This economic crisis has affected all regions of Canada, but each in its own way. For some regions, the impact
 has been severe.

The government’s Regional Relief and Recovery Fund is providing $962 million, through Canada’s six
 Regional Development Agencies, to support affected businesses that are key to regional and local economies,
 including in rural communities. These businesses provide good local jobs and support the families and
 communities they serve. These could be manufacturing, technology, or tourism companies, for example, that need
 help recovering from the pandemic but don’t qualify for other supports.

Fish harvesters have faced pressures as lockdown measures have combined with lowered demand. The government is
 making available $469.4 million in grants and income support to support the workers that help feed Canadians
 families.

In energy-producing regions of the country, Canadians are facing the compounded challenge of the COVID-19
 economic crisis and the shock to oil prices. The government is providing $1.72 billion to the governments of
 Alberta, Saskatchewan, and British Columbia and to the Alberta Orphan Well Association, to clean up orphan and
 inactive oil and gas wells. This will help keep Canada’s environment clean and maintain approximately
 5,300 jobs in Alberta alone. In addition, the $750 million Emissions Reduction Fund will provide conventional
 and offshore oil and gas companies with repayable contributions to support their investments to reduce
 greenhouse gas emissions and conduct research and development. This will be particularly helpful to the offshore
 oil and gas sector, which is primarily located in Newfoundland and Labrador, and which will receive up to $75
 million of this support.

Looking forward to the months, years, and decades to come, Canada’s economy must become more resilient.
 Canada must continue to diversify and build an economy that is stable, healthy, and equitable, in every region
 of the country.

Working Together with Provinces and Territories

From the beginning, this has been a Team Canada effort. Federal, provincial, territorial, and municipal
 governments have come together to protect Canadians, fight this disease, and stabilize Canada’s economy.

At the federal level there have been a myriad of supports to help provincial and territorial governments
 through this economic crisis. The Bank of Canada introduced the Provincial Money Market Purchase Program, to
 support the liquidity and efficiency of provincial funding markets. To supplement this program, the Bank also
 created the Provincial Bond Purchase Program, helping maintain well-functioning provincial funding markets as
 governments seek significant funding for their emergency measures to support businesses and households.
 Combined, these measures have provided $12.4 billion in support.

Furthermore, the federal government’s income support measures for Canadians —which have effectively
 replaced all lost labour income in aggregate terms— are also providing significant support to provinces
 and territories by helping to protect their income tax and sales tax revenue bases. Income tax represents around
 35 per cent of provinces’ own-source revenues, and sales tax, for jurisdictions that have it, represents
 about 20 per cent—both of which have been partially buttressed by federal supports.

As the Canadian economy begins to safely restart, the government will continue to consult with public health
 officials and work closely with provincial and territorial governments to protect the health of Canadians during
 this uncertain time. Safely restarting economic activity will require a gradual and phased approach, guided
 primarily by health and safety considerations, and requiring continued close collaboration and coordination
 across all levels of government.

On April 28, the federal and provincial and territorial governments announced a set of common principles for
 restarting the Canadian economy. These principles will shape how Canada will move forward over the weeks and
 months ahead. The government will continue to monitor the state of the economy and take action as necessary to
 protect Canadians and the economy.

“Our priority is keeping all Canadians safe, while getting back to normal as much as we can.
 That’s why First Ministers have worked on a set of shared principles to gradually restart the economy,
 based on science and evidence-based decision-making. Together, we will continue to work collaboratively to
 keep Canadians safe and healthy, and protect our economy.”

Restarting the Canadian economy is a complex process. The government is committed to working with provinces and
 territories to ensure the appropriate supports are in place for all Canadians. As announced by the Prime
 Minister on June 5, the government will invest approximately $14 billion to support provinces and territories in
 the safe reopening of the country’s economies over the next six to eight months.

A World-class Response

Countries around the world have taken swift and significant actions to address the economic consequences of the
 COVID-19 pandemic. According to the International Monetary Fund, policy support announced by G20 countries since
 the beginning of March, on average, already exceeds the fiscal stimulus provided in the three years that
 followed the 2008-2009 global financial crisis.

Economic response plans across countries have generally focused on supporting health care systems, protecting
 the incomes of workers and their families, and easing cash-flow constraints on businesses through tax and fee
 deferrals and measures to boost credit and liquidity. Additional monetary and financial stability actions have
 also been taken.

Chart 1.5

Significant Policy Support Announced across G7 Countries (% of national GDP)

Canada’s strong fiscal position going into the pandemic has allowed the government to implement an
 ambitious economic response plan by international standards. Direct fiscal support measures alone represented
 over 10 per cent of Canada’s GDP, relative to 6.7 per cent on average for G7 countries, with the bulk of
 support directed at individuals and households. In comparison, the U.S. plan also devotes a large share of
 direct support to individuals and households but to a lesser extent than Canada.

Beyond its total size, which is among the most significant in the G7 and the G20, Canada’s plan is also
 among the most comprehensive, covering a broader range of measures than most plans announced in peer countries.
 Canada is notably one of the few countries that has announced both a national program to provide commercial rent
 assistance for small businesses and forgivable credit to SMEs. The range of support to households through
 Canada’s support measures also compares favorably through this crisis. For example, the Canada Emergency
 Wage Subsidy aims to help Canadian employers keep their employees (both active and furloughed) on the payroll.
 This is in addition to enhanced unemployment benefits provided to Canadians and a broad range of targeted
 supports for students, seniors and other vulnerable groups.

Figure 1.5

International Comparison of Economic Response Package to the COVID-19 Outbreak

An International Effort

The government recognizes the importance of working with its international partners to address the health and
 economic impacts of the COVID-19 pandemic.

Canada has been working closely with its partners in the G7, the G20, international financial institutions such
 as the International Monetary Fund and the World Bank, the World Trade Organization and other international
 organizations, to support global economic stability. This collective work has been aimed at coordinating
 research efforts; sharing data and intelligence on strategies to delay the spread of the virus; addressing
 disruptions to international supply chains; and designing and implementing financial assistance to help those in
 most vulnerable countries.

In particular, together with its G7 and G20 partners, Canada designed and endorsed the G20 Action Plan –
 Supporting the Global Economy Through the COVID-19 Pandemic. Through this plan, G20 and Paris Club members will
 suspend bilateral debt services payments on official debt for the poorest countries.

Canada continues to collaborate closely with its international partners to implement these commitments. Canada
 has also joined trading partners at the World Trade Organization, and in other forums, in calling for open and
 predictable global trade to maintain the flow of essential goods such as medical supplies and food.

On May 4, Canada joined other global leaders to launch the Coronavirus Global Response to help researchers and
 innovators develop solutions to test, treat, protect people and prevent the further spread of COVID-19.
 During this pledging event, the Government of Canada highlighted investments of over $850 million to support the
 US$8 billion fundraising target of this initiative. Canada’s support includes funding for vaccine
 development, mobilizing Canadian researchers’ and life sciences companies’ research and development
 of medical countermeasures, and contributing diagnostic support to more than 20 partner countries.

In addition, on May 12, the Minister of International Development announced $600 million to Gavi, the Vaccine
 Alliance to contribute to ensuring regular routine immunizations for hundreds of millions of children around the
 world and reduce the burden of infectious diseases.

On May 28, the Prime Minister co-convened the High-Level Event on Financing for Development in the Era of
 COVID-19 and Beyond, with the UN Secretary-General and Prime Minister of Jamaica, to look at areas of action to
 mobilize the financing needed for COVID-19 response and recovery.

On June 27, the Government committed $120 million in support of the activities of the Access to COVID-19 Tools
 Accelerator – with $20 million of that total for the Coalition for Epidemic Preparedness Innovations.
 Canada will also invest an additional $180 million to address the immediate humanitarian and development impacts
 of this crisis, helping communities in developing countries mitigate and address the challenges they are facing
 right now.

Next Steps

As economies continue to safely reopen and lockdown measures are lifted, everyone must strictly follow virus
 containment measures to prevent further outbreaks. Nevertheless, the potential for a second wave looms and the
 experiences of other jurisdictions show the likely possibility of further outbreaks occurring. It is critical
 that the right measures are in place to ensure the health of Canadians is protected.

The government is committed to working with provinces and territories to ensure the appropriate supports are in
 place for all Canadians. As announced by the Prime Minister on June 5, the government will invest approximately
 $14 billion to support provinces and territories to:

- scale their capacity to conduct testing and contact tracing;
- build health care system capacity and strengthen infection prevention and control measures;
- address immediate needs and gaps in the support and protection of people experiencing mental health and
 problematic substance use challenges;
- address immediate needs and gaps in supportive care (including long-term care and home care) and provide
 health and social supports for other vulnerable groups;
- ensure health care and essential workers have access to personal protective equipment;
- ensure a safe and adapted supply of child care for returning workers as the economy re-opens;
- ensure Canadians have up to 10 days of paid sick leave should they contract or show symptoms of COVID-19;
 and,
- provide municipalities with the support they need to address the increased costs associated with COVID-19.

These investments will ensure that provinces and territories not only have the assistance they need to support
 the reopening of their economies and help people return to their day to day lives, but it also ensures they are
 prepared for the possibility of a future resurgence of the virus.

Beyond this, the government will continue to take actions to improve both the economy and Canadians’
 quality of life. The COVID-19 crisis has significantly affected all aspects of Canadians’ lives—from
 their health to their livelihoods. It is also clear that this crisis has disproportionately affected vulnerable
 communities and underscored systemic barriers faced by Indigenous and racialized communities in Canada. It is
 now critically important that Canada pursue inclusive growth and continue to support Canada’s most
 vulnerable.

Traditional economic measurements such as Gross Domestic Product (GDP) alone do not give a full picture of
 Canadians’ quality of life, and the pandemic has further exposed this fact. The government is working on
 incorporating quality of life measurements into decision-making, including in the development and implementation
 of Canada’s COVID-19 Economic Response Plan.

The Plan has prioritized these factors working as quickly as possible to help as many Canadians as possible -
 from seniors to students, to families with children and low-income frontline workers, to Indigenous communities.
 The government will continue to take action to protect vulnerable citizens so they do not fall through the
 cracks, while supporting a strong economy, promoting sustainability, and reducing inequality and poverty.

This is an opportunity for Canada to build back better through investments in a strong, inclusive and green
 recovery, which supports new opportunities for workers in every region of this country. Looking to the future,
 the government must not only think of the months ahead, but the years and decades to come. The government is
 committed to ensuring that no Canadian is left behind as it works to create a more sustainable and resilient
 economy in the wake of the pandemic, and for the generations to come.

GBA+ Summary of Canada’s COVID-19 Economic Response Plan

GBA+ Impacts of COVID-19

While COVID-19 and related public health measures have affected all Canadians in one way or another, the type,
 severity and extent of the impacts of COVID-19 vary considerably across social and demographic characteristics.
 Leveraging the themes of the Gender Results Framework, this section briefly discusses the impacts of COVID-19 on
 diverse groups of Canadians. The Plan was designed to respond to these impacts, and relevant measures are
 highlighted after each pillar.

Although this analysis sheds some light on the impacts of COVID-19 across varying social, demographic, and
 economic categories, the government recognizes that this analysis is limited by the availability of data,
 especially for certain identity factors such as race, sexual orientation and disability. It is clear that there
 is more work to do to ensure that disaggregated data are collected and to ensure that all of our policy measures
 are analyzed and implemented from an intersectional lens.

Note on Terminology

In this section, the term "visible minorities" is used because it is the official demographic
 category defined by the Employment Equity Act and used by Statistics Canada in their surveys,
 which facilitates longitudinal comparisons.

Education and Skills Development Equal opportunities and diversified paths in education and skills development

Gender Results Framework

Key Indicators of the Impact of COVID-19

- Of over 100,000 post-secondary students participating in a crowdsourcing survey from April 19 to May 1,
 92 per cent had some or all of their courses moved online , 35 per cent had a work
 placement cancelled or delayed , and 26 per cent had some of their courses postponed or
 cancelled . Among post-secondary students expecting to graduate in 2020, 17 per cent would not be able to complete their credential as planned , compared to 8 per cent for
 continuing students. Differences between men and women were minimal at
 only a couple of percentage points. Note on Methodology Although crowdsourcing surveys are key in obtaining timely information about important issues, such
 as the extent to which COVID-19 is affecting the lives and well-being of different groups of
 Canadians, readers should note that unlike other surveys conducted by Statistics Canada, the lack of
 probability-based sampling means that the findings are not representative and cannot be applied to the
 overall Canadian population. In particular, some groups of Canadians may be over-represented, while
 other groups may be under-represented.
- Prior to the announcement of the Canada Emergency Student Benefit, 73 per cent of post-secondary
 students participating in a crowdsourcing survey were very or extremely concerned about using up
 their savings and 61 per cent were very or extremely concerned about increased student
 debt . After the announcement, these shares declined to 61 per cent and 47 per cent,
 respectively. Women participants were more likely to report being concerned than men before the announcement, but subsequently less likely than men to report being
 concerned after the announcement.
- 61 per cent of continuing students in doctoral programs who took the crowdsourcing survey were very or
 extremely concerned about a lack of research funding . There was no difference between men and women .
- Among the 28 per cent of post-secondary student participants in the crowdsourcing survey who planned to continue working at the job they held at the beginning of March, over
 half had lost their job or been laid off two months later and a further quarter were
 still working, but working fewer hours . Women were more likely to have
 lost their job or been laid off, while men were more likely to be working, but working
 fewer hours.
- Of the 18 per cent of post-secondary students in the crowdsourcing survey who had a job with a confirmed start date at the beginning of March, over 7
 in 10 had lost their job or had their start date delayed two months
 later. Although men and women were similarly likely to report having a
 confirmed start date for a job, women were more likely to report having lost their job or having had their
 start date delayed.
- Although only 1 per cent of households with children did not have Internet access at
 home in 2018, households in the lowest income quartile were 21 times more likely to not have access than households in the highest
 income quartile. Nearly one-quarter of households in the lowest income quartile reported using
 only mobile devices for accessing the Internet , three times higher than the share for
 households in the highest income quartile. Rural households also have difficulty
 accessing the Internet. In 2017, only 37 per cent of rural households had access to high-speed
 Internet (50/10 speeds), which is necessary to take full advantage of the opportunities offered by the
 modern Internet. This compares to 97 per cent of urban homes. In Indigenous communities ,
 only about 24 per cent of households had 50/10 speeds.

Government Response To Date

- Canada Emergency Student Benefit for students who are not receiving the Canada
 Emergency Response Benefit and are unable to find work due to COVID-19.
- Canada Student Service Grant of up to $5,000 towards students’ fall education.
- Changes to the Canada Student Loans Program and Canada Summer Jobs .
- Supporting student researchers and post-doctoral fellows through extensions to research
 scholarships and fellowships and supplements to research grants.
- Removing work restrictions for international students under certain conditions.
- $75.2 million in distinctions-based support to Indigenous post-secondary students .
- 149,500 jobs, placements, and other training opportunities to help students find
 employment.
- Covering up to 75 per cent of costs for eligible wages and research activities at
 university and health research institutes.

Economic Participation and Prosperity Equal and full participation in the economy

Gender Results Framework

Key Indicators of the Impact of COVID-19

- Between February and April, 5.5 million Canadians were affected by COVID-19 by either job loss
 or reduced hours . In May, employment rose by 290,000, while the number of people who worked
 less than half their usual hours dropped by 292,000.
- In April, the labour underutilization rate – which includes the unemployed; those
 who were not in the labour force who wanted a job but did not look for one; and those who were employed
 but worked less than half of their usual hours – was 37 per cent, up from 12 per cent in February.
 In May, it declined slightly to 35 per cent. Although both men and women had a labour underutilization rate of 12 per cent in February, by April,
 men’s labour underutilization rate was 35 per cent, compared to 39 per cent for women, with each
 dropping by 2 percentage points in May.
- Employment losses between February and May were largest in accommodation and food
 services (44 per cent) and information, culture and recreation (22 per cent). Other industries with
 notable losses include wholesale and retail trade (15 per cent), manufacturing (10 per cent) and
 construction (10 per cent). Agriculture saw employment gains of 6 per cent.
- Reflecting industrial segregation between women and men, women accounted for a
 disproportionate share of job losses in March, while in April, declines were larger among
 men. Cumulative employment losses from February to April were thus evenly split between women (17 per cent) and men (15 per cent). However, in May,
 employment increased more than twice as fast among men than among women, reducing total cumulative
 employment losses to 13 per cent for men and 16 per cent for women. This is consistent with the more rapid
 increase in goods-producing industries, which account for a greater proportion of
 men’s employment than women’s employment.
- Labour market impacts in March and April were more strongly felt among low-wage workers and youth , who were particularly hard hit by job losses. In May, low-wage workers saw
 some encouraging rebounds in employment. Although employment among youth increased by 2 per cent in May,
 this only slightly reduced the cumulative employment losses.
- Employment among very recent immigrants (five years or less) fell more sharply from
 February to April than it did for those born in Canada. In addition, there was no rebound in employment in
 May for very recent immigrants, while employment among those born in Canada rose by 5 per cent. Among
 recent immigrants, the decline was larger among women than men .
- Urban and off-reserve Indigenous peoples and non-Indigenous Canadians
 have experienced similar cumulative job losses through COVID-19 (11 per cent and 12 per cent,
 respectively).
- In a crowdsourcing survey in late-May and early-June, 47 per cent of persons identifying as West Asian , 42 per cent of persons identifying as Filipino , 40 per cent of persons identifying as Korean , and 40 per cent
 of persons identifying as Southeast Asian reported experiencing a job loss or reduced work hours , compared to 34 per cent of persons identifying as White .
- Women are also leading the charge as frontline workers in many settings, including in
 hospitals and long-term care homes, although this comes with a greater risk of contracting
 COVID-19 . For example, in 2019, women comprised 91 per cent of registered
 nurses, 92 per cent of nurse practitioners, and 91 per cent of licensed practical nurses.
- Immigrants are also over-represented in certain health care professions. In 2016, more
 than one-third of nurse aides, orderlies and patient service associates were immigrants (86 per cent of
 which were women) compared to one-quarter of all other occupations. They were also more likely to identify
 as a visible minority (34 per cent) than workers in other occupations
 (21 per cent), with Black and Filipino women especially
 over-represented.
- Closures of schools and child care services during COVID-19 increased
 the amount of unpaid work in the home which is disproportionately carried out by women . There is evidence that this has greatly affected employed women’s job
 performance for those teleworking as well as unemployed women’s ability to return to work or find
 work, especially when child care is unavailable.
- In May, 18 per cent of core-aged women with children under 18
 years worked less than half their usual hours, compared with 14 per cent of men. While both of
 these shares are much higher than normal, the fact that women are more likely to be absent from work than men is a long-standing trend
 reflecting women’s greater share of unpaid care work. This trend has not changed during the
 COVID-19 period.
- Between February and April, employment losses were larger among men
 with children under 6 years than for women (10 per cent versus 8 per cent), while rebounds in May were larger for men than for
 women (5 per cent versus 2 per cent). Cumulative employment losses from February to May for women and men
 with children under 6 years were 6 per cent and 5 per cent, respectively. For men and women with children aged 6-12 years , an age group that still
 requires significant supervision, cumulative employment losses between February and April were 4 per cent
 and 8 per cent, respectively.
- In 2019, Canada's telework capacity – the share of jobs that could plausibly be
 performed from home under normal circumstances – stood at 39 per cent. Men's telework capacity (32
 per cent) was lower than women's (46 per cent). Part of this difference is explained by the fact that men and women often work in different jobs. For example, jobs in
 agriculture and construction – where men are over-represented – cannot be performed from home.
 Financially vulnerable workers, including youth , persons with a high school
 diploma or less , and low-income families , had the lowest telework capacities.
- In May, about 1 in 10 Canadian workers thought that they might lose their job or main
 source of self-employment income in the next four weeks. Low-income workers were the most
 likely to feel insecure, while there was little difference between women and men or across age groups .

Government Response To Date

- Canada Emergency Response Benefit for those who have stopped working due to COVID-19.
- Enhancements to the Work-Sharing Program to help employers and employees avoid layoffs.
- Supporting the safe and sufficient supply of child care for parents returning to work
 – as part of the approximately $14 billion to support provinces and territories in the safe
 reopening of the country’s economies.
- Covering 75 per cent of an employee's wages up to $847 per week for eligible employers through the Canada Emergency Wage Subsidy .
- Provided the 10% Temporary Wage Subsidy for small businesses from March to June.
- Up to $3 billion in federal support to increase the wages of essential workers .

Leadership and Democratic Participation Gender equality in leadership roles and at all levels of decision-making

Gender Results Framework

Key Indicators of the Impact of COVID-19

- Canadians trust their public health leaders. In a recent survey, 74 per cent of crowdsourcing
 participants expressed high levels of trust in provincial or territorial and federal health authorities and 65 per cent expressed high levels of trust in their municipal
 health authorities. Participants with a university degree were more likely to express
 high levels of trust in public health authorities than participants with a non-university post-secondary
 credential or with a high school education or less.
- COVID-19 has brought many women leaders in medicine and public health into the
 spotlight. Dr. Theresa Tam, Canada’s Chief Public Health Officer is a woman, as are 6 of the 13
 provincial and territorial chief medical officers.
- According to a crowdsourcing survey, as of April, businesses majority-owned by women and other under-represented groups – including Indigenous persons , visible
 minorities , immigrants , or persons with disabilities –
 were more likely to report being highly affected by lower demand for their products or services,
 cancellation of services, uncertain accounts payable, an inability to have staff physically on-site, staff
 absences and reduced productivity due to remote work, reflecting that businesses majority-owned by men and
 women are not equally distributed across industries.
- In the same April crowdsourcing survey, among businesses that pay rent, businesses majority-owned by women , visible minorities and immigrants were more
 likely to report having had their rent payments deferred . Businesses majority-owned by Indigenous persons and persons with disabilities were more likely to
 report having requested credit from a financial institution .

Government Response To Date

- $15 million to the Women Entrepreneurship Strategy to support women entrepreneurs
 facing hardship due to COVID-19.
- Up to $306.8 million in funding to help small and medium-sized Indigenous
 businesses and to support Aboriginal Financial Institutions .
- 75 per cent or more rent reduction for small business tenants through the Canada Emergency
 Commercial Rent Assistance .
- $287 million to support rural businesses and communities by providing access to capital
 through the Community Futures Network .
- $20.1 million for Futurpreneur Canada to continue supporting young entrepreneurs facing
 challenges due to COVID-19.
- Credit and liquidity support through the Canada Emergency Business Account and Business Credit Availability Programs to help cover operating costs.
- $133.0 million to help Indigenous communities support their local economies, including help for small and community-owned Indigenous businesses .

Gender-Based Violence and Access to Justice Eliminating gender-based violence and harassment, and promoting security of the person and access to justice

Gender Results Framework

Key Indicators of the Impact of COVID-19

- In May, 11 per cent of respondents to a crowdsourcing survey felt that the level of crime in their neighbourhood had increased since the start of the pandemic. Indigenous (17 per cent) and visible minority (14 per cent) respondents were more likely to feel crime had increased.
- Combined with job losses and financial stresses, self-isolation of victims with their abusers has created conditions that could lead to a rise in intimate partner violence and child maltreatment . For example, consultations between the Department for Women and Gender Equality and frontline organizations, provinces and territories and Members of Parliament after the start of COVID-19 found a 20 to 30 per cent increase in rates of gender-based violence and domestic violence in some regions of the country.
- In a crowdsourcing survey from late-April to early-May, 1.7 per cent of women and 1.3 per cent of men expressed that they were very or extremely concerned about violence in the home . Percentages for immigrant women (3.4 per cent), Indigenous women (4.3 per cent), and visible minority women (5.8 per cent) were more than twice those of non-immigrant, non-Indigenous, and non-visible minority women.
- In May, according to data from a crowdsourcing survey, men were more likely than women to report walking alone after dark and to report feeling very safe walking alone after dark in their neighbourhood since the start of the pandemic. This is consistent with reported feelings before the pandemic. Visible minorities and Indigenous persons were more likely to report that they feel unsafe walking alone after dark than their counterparts. Prior to the pandemic, this was true for visible minorities, while there was no difference between Indigenous and non-Indigenous persons.
- 7 per cent of respondents to a crowdsourcing survey felt that harassment or attacks based on race, ethnicity, or skin colour had increased in their neighbourhood since the pandemic. Differences between men and women were minimal. Young respondents (11 per cent), non-binary respondents (22 per cent), and visible minority respondents (18 per cent), especially Chinese respondents (30 per cent), were significantly more likely to report increases in race-based incidents.
- 11 per cent of women and 8 per cent of men responding to a crowdsourcing survey reported having contacted a victims' service for a reason related to crime since the start of the pandemic. Young women were especially likely to report contact or use of a victims' service.

Government Response To Date

- $50 million to existing women’s shelters and sexual assault centres to help with their capacity to manage or prevent an outbreak in their facilities, including $10 million for Indigenous communities.
- $350 million to establish an Emergency Community Support Fund to support vulnerable Canadians through charities and non-profit organizations that deliver essential services.
- $29 million over two years to begin to build 12 new shelters in Indigenous communities and support their operational costs , and engage on how to help protect and support Métis women, girls, and LGBTQ2 people experiencing and fleeing violence.
- $157.5 million through the Reaching Home initiative to support people experiencing homelessness during the COVID-19 outbreak.

Poverty Reduction, Health and Well-Being Reduced poverty and improved health outcomes

Gender Results Framework

Key Indicators of the Impact of COVID-19

- Women were disproportionately likely to be diagnosed with COVID-19 . A similar number of women and men were admitted to the hospital . Men were more likely to be admitted to the ICU after hospitalization and women with COVID-19 were slightly more likely to die , partly reflecting the older average age of the women diagnosed.
- Seniors , as well as Canadians with underlying health conditions , are most at risk of developing severe complications that require hospitalization.
- Early evidence from certain municipalities suggests that visible minorities are over-represented among COVID-19 cases . For example, Medical Officer of Health for Ottawa Public Health, Dr. Vera Etches, states that since May 8, 66 per cent of the 144 confirmed cases in Ottawa have been from racialized groups.
- In May 2020, 48 per cent of Canadians reported excellent or very good mental health , fewer than in 2018 (68 per cent). In addition, over the course of the pandemic, Canadians’ mental health has worsened. Almost 1 in 5 Canadians reported symptoms consistent with moderate or severe anxiety – women and youth were more likely to report symptoms than their counterparts.
- In a crowdsourcing survey in late-April and early-May, 60 per cent of Indigenous participants reported that their mental health was somewhat worse or much worse since the start of physical distancing, compared to 52 per cent of non-Indigenous participants. Indigenous women noted these impacts more than Indigenous men . 51 per cent of visible minorities and 52 per cent of non-visible minorities reported that their mental health was somewhat worse or much worse.
- 59 per cent of Canadians reported spending more time watching television and 69 per cent spending more time on the Internet since the start of COVID-19. In addition, 35 per cent reported eating more unhealthy foods and 26 per cent reported playing more video games . The share reporting unhealthy food consumption has increased since the start of the pandemic.
- At the same time, 37 per cent of Canadians communicated with friends and family , 12 per cent meditated , 57 per cent exercised outdoors , 40 per cent exercised indoors , and 23 per cent changed food choices .
- In 2016, about 1 in 4 Canadians would have been financially vulnerable to an economic lockdown, meaning without government transfers or borrowing, they would not have had enough liquid assets and other private sources of income to keep them out of low income during a two-month work stoppage. Lone mothers , recent immigrants , urban and off-reserve Indigenous people and families where the main income earner has little education were highly vulnerable financially.
- As of June 24, over 743,000 mortgage deferrals or skip a payments had been provided through 13 banks, equivalent to about 15 per cent of the number mortgages in portfolios, and more than 450,000 credit card deferral requests were in process or completed by 8 banks.
- In early May, almost 1 in 7 Canadians (15 per cent) reported that they lived in a household where there was food insecurity in the past 30 days, significantly higher than the 12-month experiences reported for 2017-18 when 11 per cent of households were food insecure. Households with children were more likely to be food insecure than households without children.
- COVID-19 has had a major or a moderate impact on the ability of some families to meet their financial obligations or essential needs. In a crowdsourcing survey conducted in late-May and early-June, 44 per cent of persons who identified as Arab reported these impacts, as well as 43 per cent of persons identifying as Filipino , 42 per cent of persons identifying as West Asian , 40 per cent of persons identifying as Southeast Asian and 39 per cent of persons identifying as Black , compared to 25 per cent of persons identifying as Japanese , 27 per cent of persons identifying as Chinese , and 23 per cent of persons identifying as White .

Government Response To Date

- $50 million to support Canada’s immediate health response to COVID-19.
- $1 billion COVID-19 Response Fund , including funding for the provinces and territories and Indigenous communities for health research, and for the World Health Organization and other international partners.
- $2 billion to procure personal protective equipment and supplies for health care workers.
- Canada Child Benefit top-up payment in May 2020 of up to $300 per child.
- $240.5 million to develop, expand and launch virtual care and mental health tools to support Canadians.
- $157.5 million through the Reaching Home initiative to support people experiencing homelessness during the COVID-19 outbreak.
- $350 million to establish an Emergency Community Support Fund to support vulnerable Canadians through charities and non-profit organizations that deliver essential services.
- $7.5 million in funding to Kids Help Phone .
- Up to $114.9 million to support northern communities , including support for air carriers, enhanced food subsidies and other emergency health care preparations.
- Student loan repayments are suspended until September 30 and interest will not be charged to borrowers on their student loans from March 30 to September 30.
- $285.1 million to provide targeted increases in primary health care resources for First Nations communities.
- $270 million to supplement the On-reserve Income Assistance Program .
- $500 million Emergency Support Fund to help cultural, heritage and sport organizations.
- $9 million through United Way Canada for local organizations to support seniors.
- $20 million for expanding the New Horizons for Seniors Program to reduce seniors’ isolation, improve seniors’ quality of life, and help them maintain a social support network.
- $100 million to the Canadian Red Cross to enhance their response capacity and to support public health efforts.
- $380 million for an Indigenous Community Support Fund to address immediate needs in Indigenous communities.
- $2.5 billion for a one-time payment of $300 for all seniors eligible for the Old Age Security pension, and an additional $200 for seniors eligible for the Guaranteed Income Supplement .
- Facilitating mortgage payment deferrals of up to six months between creditors and debtors.
- One-time payment for certificate holders of the Disability Tax Credit .
- Special GST Credit top-up payment for low- and modest-income families. The average additional benefit was close to $400 for single individuals and close to $600 for couples.
- $100 million to support food banks and other organizations providing hunger relief.

Gender Equality Around the World Promoting gender equality to build a more peaceful, inclusive, rules-based and prosperous world

Gender Results Framework

Key Indicators of the Impact of COVID-19

- ILO reports that women perform three times more unpaid care work than men. This is likely to have increased as schools and child care services closed and women took on more child care and teaching duties, and as more meals needed to be cooked at home.
- UNFPA estimates that 47 million women in 114 low- and middle-income countries may not be able to access modern contraceptives and 7 million unintended pregnancies are expected to occur if the lockdown carries on for 6 months and there are major disruptions to health services.
- Past experience shows that domestic, sexual, and gender-based violence increases during public health and economic crises and disasters. UNFPA estimates that there will be an additional 31 million cases of gender-based violence if the lockdown continues for at least 6 months.
- Women make up 70 per cent of health care workers around the world, and even higher shares of care-related occupations, such as nursing, midwifery, and community health care, all of which put them at greater risk of contracting COVID-19 due to close contact with patients. Low pay and poor working conditions exacerbate the risks these workers face.
- Women’s mental and emotional health has been disproportionately affected during COVID-19.
- COVID-19 also directly impacts women and children fleeing violence in conflict settings . For example, according to UNICEF, millions of children in Yemen will be pushed to the brink of starvation as a result of the shortfalls in humanitarian aid funding amid the COVID-19 pandemic.

Government Response To Date

- Allocating $442.4 million, as well as another $50 million announced as part of the COVID-19 Response Fund, to support international efforts to fight the COVID-19 pandemic and investing in line with the feminist international assistance policy . This funding will support the development and distribution of vaccines and treatments, including through the Access to COVID-19 Tools Accelerator initiative and the Coalition for Epidemic Preparedness Innovations. The funding will also support COVID-19 international humanitarian appeals, country-specific requests for assistance, and, the enhancement of regional pandemic responses for African countries while focusing on key thematic areas such as reproductive health and rights.

GBA+ Highlights of Canada’s COVID-19 Economic Response Plan

The government recognizes that all Canadians have been affected by COVID-19, but that vulnerable groups have
 experienced some of the most significant health, social and economic impacts. Canada’s COVID-19
 Economic Response Plan was designed to provide rapid support that targeted those who need it the
 most. See Annex 1 for a detailed GBA+ Summary of each of the measures included in the Plan. The following
 analysis provides a brief summary of some of the aggregate GBA+ impacts of the Plan as a whole. Liquidity
 measures are excluded from this analysis as this form of support is not directly comparable to direct measures.

When categorized according to target group, to date, 18 measures, representing 8 per cent of the value of the
 Plan (Chart 1.6), are intended to directly benefit all Canadians, including the Support for the Canadian Red
 Cross and virtual care and mental health tools for Canadians. Workers as well as workers and employers are the
 target group for 3 measures each, for a combined total of 6 measures and 72 per cent of the value of the
 response package. 13 measures, representing 10 per cent of the response package value, are aimed at Canadian
 businesses and specific sectors. An additional 31 measures, representing 10 per cent of the value of the
 response, are aimed at particular groups, such as Indigenous peoples, students, seniors, and persons with
 disabilities.

Chart 1.6

Value of Direct COVID-19 Economic Response Plan Measures by Target Group*

The majority of measures in the Plan carry direct benefits that are expected to be broadly felt by men and women in equal proportions (Chart 1.7). Nonetheless, women and men were disproportionately represented in the benefitting group for 14 per cent and 9 per cent of the value of the Plan, respectively. For example, the Essential Workers Wage Top-Up is expected to mostly benefit Canadians working in essential services, who are primarily women. In particular, at the national level, Statistics Canada data indicate that women represent 80 per cent of healthcare workers and more than half of retail and accommodation and food services workers. In contrast, support for those experiencing homelessness is expected to disproportionately benefit men as 64 per cent of persons experiencing homelessness in 2018 were men.

Chart 1.7

Value of Direct Measures of the COVID-19 Economic Response Plan by Gender

COVID-19 has disproportionately affected low-income Canadians. That is why the Plan proposes a number of
 measures which are directly targeted at lower-income Canadians (Chart 1.8). This includes the Surplus Food
 Rescue Program which benefits Canadians that rely on social assistance or disability-related income support and
 who may rely on hunger relief organizations such as food banks. Similarly, the primary beneficiaries of
 temporarily enhancing the GST Credit are individuals and families with low and modest incomes who were already
 receiving the status quo GST Credit. Seniors and single parents – single mothers in particular –
 benefit from this measure at a higher rate than the general population due to their lower average incomes. In
 contrast, other measures have characteristics that make them more likely to benefit higher-income Canadians,
 such as the business income tax payment deferral.

While older generations are at higher risk of health implications as a result of the pandemic, younger
 generations have been affected disproportionately financially and in terms of employment opportunities.

Chart 1.8

Income Distributional Impacts – Value of Direct Measures
 of the COVID-19 Economic Response Plan by Recipient Income Level

Intergenerational Impacts – Value of Direct
 Measures of the COVID-19 Economic Response Plan by Age Group of Recipients

Accordingly, although 93 per cent of the Plan’s value benefits all age groups, 8 measures target youth
 specifically, representing 5 per cent of the value, while 7 measures are targeted at seniors, representing 1 per
 cent of the value. For example, the Canada Emergency Student Benefit provides income support to eligible
 post-secondary students and recent graduates facing financial difficulties who are unable to find work or unable
 to work due to COVID-19. Similarly, the New Horizons for Seniors Program is designed to ensure that seniors
 benefit from, and contribute to, the quality of life in their communities through social participation and
 active living. This specific investment is meant to help address social vulnerabilities created by COVID-19 and
 beneficiaries will tend to be relatively more vulnerable seniors, including low-income seniors and seniors with
 disabilities.

GBA+ Summary of the CERB and CEWS

Of all the measures announced to date as part of the Plan, the Canada Emergency Response Benefit (CERB) and the
 Canada Emergency Wage Subsidy (CEWS) are two of the most important in supporting a wide range of Canadians
 through COVID-19. The impacts these measures have had on diverse groups of Canadians are summarized here. The
 GBA+s for the remaining COVID-19 response measures are summarized in Annex 1 .

Canada Emergency Response Benefit (CERB)

GBA+ timing Mid-point | Target population Workers Affected by COVID-19 | Expected Direct Benefits
Gender ○─○─●─○─○ Benefits Men – Women | Income ○─●─○─○─○ Strongly Benefits Low – High | Age ○──●──○ Benefits Youth – Seniors
The CERB provides direct income support to Canadians of working age who have stopped
 working or whose works hours have been reduced due to COVID-19. Although this measure was
 not designed to target a specific demographic or group, the CERB is benefitting those disproportionately
 affected by COVID-19 including lower-wage and young workers as shown in Chart 1.9 and described
 below. Chart 1.9 Proportion Reporting Submitting an Application for the Canada Emergency Response Benefit between March 15 and the day of their LFS interview between May 17 and 26, 2020 per cent
Gender
Women accounted for a disproportionate share of job losses in March, while
 in April, declines were larger among men such that cumulative employment losses from February to April
 were evenly split between women (17 per cent) and men (15 per cent). In May, employment increased more
 than twice as fast among men than women, reducing total cumulative employment losses to 13 per cent for
 men and 16 per cent for women. Between March 15 and mid-May, both women and men were equally likely to
 have applied for the CERB.
Age
The economic shutdown has been especially severe for youth and students.
 Although employment among youth aged 15 to 24 years increased in May, this only
 slightly reduced total cumulative employment losses since the start of the pandemic. Younger workers have
 a higher application rate than the rest of the population with over a quarter of youth having applied for
 the CERB between March 15 and mid-May. Comparatively, just under one in five of those aged 25-54 years and
 only 12 per cent of those aged 55-69 years applied for the CERB in this period.
Newcomers
Very recent immigrants (five years or less) have been hit hard by the
 labour market impacts of COVID-19. Data show that just under 1 in 4 landed immigrants and just over 1 in 4
 of those not born in Canada had applied for the CERB between mid-March and mid-May, while this rate was
 less than 1 in 5 for those born in Canada.
Region
The CERB application rates are highest in Quebec, Ontario and Alberta.
 Reflecting both population dynamics and differences in approaches to flattening the curve, Ontario and
 Quebec accounted for two-thirds of total applications.
Indigenous
Employment losses among the urban and off-reserve Indigenous population
 have been comparable to those of non-Indigenous Canadians. Despite this, the application rate for the CERB
 from the urban and off-reserve Indigenous population is lower than that of non-Indigenous Canadians.
Visible Minorities/Racialized Canadians
Although we have no data on the CERB for visible minorities, we know that
 racialized Canadians and communities have been disproportionately affected by the health and economic
 crises. Moreover, we know that immigrants and youth—two groups with a higher proportion of visible
 minorities—have higher application rates than other Canadians. This is, however, only suggestive and
 a more detailed analysis will be required at the end of the program to better understand the impact of the
 CERB on visible minorities.
Industry
Accommodation and food services experienced a greater drop in employment
 from February to April than any other industry. The drastic impact on the accommodation and food services
 industry has resulted in the highest application rate with 43 per cent of those employed or formerly
 employed in this industry having applied for the CERB.
Income
Nearly 1 in 4 employed workers in the lowest income quintile – those
 making $600 or less per week – had applied for the CERB between mid-March and mid-May. The
 likelihood of employed workers reporting having applied for the CERB declines as incomes increase, as just
 under 1 in 7 in the second lowest quintile ($601 to $842 per week) and less than 1 in 10 in the third
 quintile ($843 to $1,160) report having applied for the CERB.
Employment Category
For self-employed workers, the impact of the COVID-19 shutdown has
 been felt primarily through a significant loss of hours rather than a loss of employment. For example, in
 May, 43 per cent of self-employed workers worked less than half their usual hours for
 COVID-19-related reasons. As a result, 40 per cent of self-employed workers report applying for the CERB,
 while only 12 per cent of private sector and 5 per cent of public sector employees applied.

Canada Emergency Wage Subsidy (CEWS)

GBA+ timing Mid-point | Target population Workers and Employers affected by COVID-19 | Expected Direct Benefits
Gender ○─○─●─○─○ Benefits Men – Women | Income ○─○─○─●─○ Strongly Benefits Low – High | Age ○──●──○ Benefits Youth – Seniors
To help employers through the challenges posed by the COVID-19 pandemic, the Government implemented the
 Canada Emergency Wage Subsidy (CEWS). Its purpose is to prevent further job losses, encourage employers
 to re-hire workers who were laid off as a result of COVID-19, and help position businesses to resume
 normal operations more easily following the crisis. For eligible employers, CEWS covers 75 per cent of
 an employee's wages, up to $847 per week. The following section includes information based on
 current applications for the program; however, given the likelihood of additional applications, these
 results may not be representative of program beneficiaries as a whole; a more complete assessment will
 be feasible once 2020 income tax data are available. As of June 29, 2020, there were a total of 538,080 CEWS applications approved. In the first claim
 period, from March 15 to April 11, over 2.8 million employees were supported, with an average monthly
 amount of $2,061 per employee. In the second claim period, from April 12 to May 9, over 2.7 million
 employees were supported, with an average monthly amount of $2,359 per employee. In the third claim
 period, from May 10 to June 6, almost 2 million employees were supported, with an average monthly amount
 of $2,331 per employee.
Shareholders and Owners
Shareholders or owners of eligible businesses may benefit from CEWS, since the subsidy
 could help reduce labour expenses at a time of reduced business activity.
Industry
Current CEWS applicant data shows that the industry with the largest number of employers
 receiving the CEWS in all three claim periods was professional, scientific and technical services (Chart
 1.10). In contrast, the largest number of employees covered in all three claim periods were in
 manufacturing and accommodation and food services. Chart 1.10 Distribution of Approved Applications Across Industries by Claim Period per cent
Firm Size
As of June 29, 2020, in all three claim periods, just under three-quarters of approved
 applications were from small-sized employers with 25 or fewer employees, and less than one-quarter came
 from medium-sized employers with 26-250 employees. The remainder came from large employers. Despite the
 larger number of claims from small employers, medium-sized employers accounted for the largest number of
 employees supported per claim period. These results may reflect in part the fact that smaller employers
 have fewer employees and are more liquidity-constrained than larger employers, some of whom may apply for
 the program later.
Region
Whether based on the number of employers or number of employees covered, beneficiaries were
 most likely to reside in Ontario, Quebec, British Columbia and Alberta, reflecting that these regions have
 the largest population sizes. In fact, the distribution of employees covered by province and territory
 closely aligns with total national employment in February 2020.
Individuals Accessing Non-Profit Organizations
Individuals accessing non-profit organizations and charities may benefit from this measure.
Indigenous Communities
Indigenous government-owned businesses may be eligible for the subsidy, which may benefit
 Indigenous communities.
Gender
Although no data are available on the gender composition of the employees receiving CEWS,
 current CEWS applicant data show that the largest number of employers receiving support in all three claim
 periods were in professional, scientific and technical services, while the largest numbers of employees
 covered were in manufacturing and accommodation and food services. In professional, scientific and
 technical services, 56 per cent of employed workers in February 2020 were men. Men are also more likely to
 work in manufacturing (71 per cent of employment in February 2020), while women are slightly more likely
 to work in accommodation and food services (55 per cent of employment in February 2020). As a result, it
 is possible that men are slightly more likely to be covered by the CEWS than women. This is, however, only
 suggestive and a more detailed analysis will be required once 2020 income tax data are available.

Page details

2026-03-11

File and source

File

u030_can_economic-fiscal-snapshot-overview-economic-response-plan-htm.html

Size

212,868 bytes

SHA-256

47037571771fad04cf141af07b88b1694d98510310528aac5853b9bfd801d983

Our copy

u030_can_economic-fiscal-snapshot-overview-economic-response-plan-htm.html

Original

www.canada.ca