(Ottawa) A majority of Canadians who received the Canada Economic Stimulus Benefit (CEP) were addicted to the defunct program, says an internal analysis from the Department of Labor and Social Development.
According to this study, approximately 75% of the 1.8 million PCRE providers submitted recurring requests.
There are some 627,000 providers among them who have received this assistance for several consecutive months.
The Canadian Press was able to obtain a copy of this study given to a senior official of the department under the access to information law.
According to experts who have consulted the document, the analysis suggests the need for this financial assistance program which ends this weekend.
As of October 10, the government had paid just over $ 27 billion to nearly 2.2 million claimants since the PCRE came into effect at the end of September 2020.
Currently, there are around 800,000 claimants who only had 48 hours to adjust following the Liberal government’s announcement of the end of the PRCÉ on Thursday.
“Workers need PRCÉ to pay their rent and not lose their residence. Many can only find part-time jobs and don’t have enough shifts to make ends meet. The pandemic is not over, ”wrote Toronto Workers Action Center Executive Director Deena Ladd.
Announcing the decision, Prime Minister Justin Trudeau said Thursday the economy was picking up strength in most sectors.
“We recognize that there is a labor shortage in certain sectors and people have the opportunity to return to work,” he said. Continuing general support is not entirely necessary for the economy. ”
At the same time, Finance Minister Chrystia Freeland announced the end of the Canada Emergency Wage Subsidy (SSUC) and Emergency Rent Subsidy (SUCL). It intends to increase tax credits for companies that hire new employees.
Jennifer Robson, an associate professor at Carleton University in Ottawa, laments Thursday’s announcement did not address the need for new training or providing job search services to the unemployed.
“The hiring credits can, in theory, convince some employers to hire workers, but there is nothing in what has been announced to help the beneficiaries of the PCRE in the short term,” she said. wrote in an email to The Canadian Press.
In their analysis, federal officials find that the number of people requesting the PCRE the first time had declined as of mid-January. More than 600,000 beneficiaries who received the benefit in the first four months of its existence were no longer claiming it at the beginning of June.
A similar trend is observed among EI claimants. “This indicates that Canadians have returned to work,” read the document.
According to CIBC Capital Markets chief economist Avery Shenfeld, there is a risk that workers who relied on PCRE will “swell the ranks of job hunters.” This could affect the unemployment rate in the country in the coming weeks.
The Liberals replaced the PCRE with a weekly benefit of $ 300 reserved for those who lose their jobs or income due to a government-ordered lockdown.
During an interview on the show Question Period of CTV, Employment Minister Carla Qualtrough said on Sunday that only those affected by total containment will be entitled to the new benefit, and not those affected by one-off measures, such as those limiting the capacity of a restaurant.
“I am not sure that full containment is expected in the near future. It is therefore an effective measure to eliminate the PCRE without creating new benefits, ”comments the senior economist of the Canadian Center for Policy Alternatives David Macdonald.