Feds update wage subsidy and unveil changes to student summer job program

Prime Minister Justin Trudeau has announced another update to the massive wage subsidy program, more help for students, and is forecasting that the March job numbers coming out on Thursday will be grim.

In yet another update to the $71 billion wage subsidy the federal government is in the process of rolling out, Trudeau announced the parameters to qualify are being relaxed.

Previously the government said that businesses would have to show a 30 per cent drop in revenues compared to this time last year, which some start-ups and new businesses would not be able to do.

Now, companies can now compare their lost revenue to what they made in January and February of 2020, and will only need to show a 15 per cent decline in March.

“Because most of us only felt the impact of COVID-19 halfway through the month,” he said. The subsidy would be on 75 per cent of employees’ salaries, up to $847 a week per employee, retroactive to March 15, for companies big and small. 

Charities are also being granted the ability to choose whether or not to include government revenues in their calculations of lost revenue when applying.

“Our government understands that not all businesses operate the same way… We will keep listening, but we really hope you will use this help from your country and from your fellow citizens to rehire and pay your workers,” Trudeau said. 

Trudeau thanked stakeholders for their input in the billions of dollars of aid programs unveiled to date, saying they have helped to “refine” their approaches, making the assistance being offered as inclusive as possible.

Anticipating a second parliamentary recall to pass the expanded wage subsidy, the prime minister said he is calling on the opposition to join them in bringing back the House “as soon as possible” to enact these changes. 

The Conservatives say they are ready to approve the latest measures, but want to see some sort of agreement on increased accountability, allowing for them to questions ministers as the pandemic continues.

Facing questions about the rolling updates to the wage subsidy, Trudeau said the government’s focus was on getting both the wage subsidy and Canada Emergency Response Benefit— which offers $2,000 a month for four months for those eligible—out the door as quickly as possible. 

“We just needed to get the two big measures that would help millions of Canadians out as quickly as possible, and chose to work on refining them later,” Trudeau said. 


The government has also announced temporary changes to the Canada Summer Jobs program. Now, employers who hire summer students can apply for a subsidy of up to 100 per cent of the provincial or territorial hourly minimum wage.

This will help create up to 70,000 jobs for Canadians between the ages of 15 and 30, and will help give them work experience and an income despite the current economic situation. 

The time frame for the job placements are also being extended until the end of February, given some jobs will “start later than usual,” Trudeau said. The student hires can also be employed part-time, given many businesses have had to scale back their operations.

The prime minister said the Liberals are asking MPs across the country to help connect businesses and organizations that are providing critical services with students who can help at this time.

“In this economic climate, it’s hard for people of all ages to find work, but young people are especially vulnerable. They are new to the workforce, so they don’t have a lot of money set aside for this kind of situation,” Trudeau said.

“At the same time, they need work experience to secure their next job and money to cover their living expenses and help with tuition for the rest of year.” 


Trudeau continues to say the government will have more to say about further help for Canadians, all of whom have, in some way, been impacted by the virus.

“If you’re working less than 10 hours a week, we will be telling you how you can apply for the CERB. If you’re a student, for example, on top of the Canada Summer Jobs program that we talked about today, we will bring forward more measures,” Trudeau said.

Since mid-March, more than four million Canadians have applied for financial assistance, but there are still many who are having trouble making ends meet and do not qualify for the benefit programs created so far.

The job numbers for the month of March, when many of the physical distancing measures and states of emergency went into effect, are coming out on Thursday and Trudeau is forecasting a grim picture. 

“If our economy is to get through this, we need businesses to survive and workers to get paid. Job numbers for March will be out tomorrow and it’s going to be a hard day for the country,” Trudeau said. 

Wednesday afternoon, Finance Minister Bill Morneau, Small Business, Export Promotion and International Trade Minister Mary Ng, and Minister of Innovation, Science and Industry Navdeep Bains are set to hold a press conference in Toronto to provide more information about the expanded wage subsidy program.

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