A state program of Canadaaimed at minimizing redundancies by offering benefits to workers who agree to work fewer hours, he “saw” his acceptance of doubleing in about half a year.
On June 8, there were 799 employer division agreements in Canada, compared to 399 in November, according to government data published by Bloomberg. Over 27,000 Canadian workers are currently participating in these agreements, which require the signing of the federal government, employers, workers and trade unions, if any. This is a 75% increase in November.
In March, the federal government made changes that allowed Canadian enterprises to apply or extend the existing division of labor if “they experience a reduction in the business attributed to the threat or possible tariffs”.
These figures may help explain why the country’s labor market has not been hit more in the midst of US President Donald Trump. The program allows businesses to keep employees in their payroll for reduced hours, while the government provides income support.
Canada added nearly 152,000 jobs between November and May and the unemployment rate increased by one tenth of the percentage point to 7%, according to the country’s statistical service. However, the processing sector has lost 4,700 jobs during this period, with losses increasing in recent months, following the announcement of duties.
Almost 90% of the arrangements are in the two largest provinces of Canada, Ontario and Quebec, which also based the majority of the country’s factories. The number of deals of division of labor with businesses in Ontario increased by 273 between November and June 8, while Quebec increased by 105.
“Obviously, the program is somehow camouflaged the current economic uncertainty, but it is necessary,” Samuel Palin, a parliamentary assistant of Quebec’s finance minister, said in an interview.
POULIN represents the Beauce-Sud District, an area near the border with the US with a significant processing footprint, especially in the steel sector, now affected by US duties 50%.
The program “saves jobs that would otherwise be lost, and companies are clear about it,” Poulin said, adding that it also allows them to get easier employees when conditions improve.
Successful acceptance of the program can also explain why the Carney government has not yet developed wider help packages for workers affected by the commercial barrage.
Opposition politicians, including the left -wing party of the New Democrats, have regularly pushed to expand labor insurance benefits. It is noted that the federal government did not assess how much money was spent on the program.