COVID-19: over a quarter of businesses have put off staff

COVID-19: plus du quart des entreprises ont mis à pied du personnel

OTTAWA | More than a quarter of companies in the country have had to lay off staff due to the pandemic of COVID-19, indicates a new study from Statistics Canada released on Tuesday.

The canadian Survey on the situation of the enterprises (ECSE) of the federal agency also indicates that nearly 40 % of companies have reduced working hours or shift work. Worse, more than a quarter (28.4 %) have not had the choice of layoffs.

“Nearly one-fifth (17.4 %) of all businesses have laid off half their staff or more”, a-t was specified in this survey on the impact of the COVID-19 on businesses in Canada.

It must be said that the incomes of over half of the companies have declined by 30% or more in April compared with the same month last year. More than a third (35.3 per cent) indicated that their revenues had declined by half or more than half.

Arts and recreation more affected

Remember that at the end of may, due to the health crisis, many companies have had to adapt quickly to the situation by reducing work hours, by layoffs, by asking for funding from the government and requesting the postponement of the payment of rent. Telework has also become a solution for several.

The study notes that more than 80 % of companies in the sectors of arts, entertainment and recreation (89.6 per cent), agriculture, forestry, fishing and hunting (83,0 %) and services of accommodation and food (80,3 %) who have done layoffs have indicated that they have laid off at least 50 % of their workforce. The sector least affected is the finance and insurance (5.4 per cent).

Some sectors have been more affected than others by measures taken by governments to limit the spread of the COVID-19.

Almost all of the companies in the sector of arts, entertainment and recreation (94,3 %) and the services sector, and accommodation and food (94.1 per cent) said they had taken action with regard to the staff. It is also the case for almost all companies with more than 100 employees (with 90.9 %).

In addition, approximately 19.3 % of companies believe they are able to continue their activities at their current level of income and expenditure for a period of less than six months before having to consider other measures related to the staff, closure or bankruptcy.


Furthermore, the statistics agency points out that about 22.5% of businesses expect that 10 % or more of their staff continues to make remote work once the pandemic is finished.

In sectors such as the information industry and cultural industry (47.2 per cent) and professional, scientific and technical (44.5 per cent), more than two fifths of businesses expect that at least 10 % of their workforce to continue teleworking after the pandemic COVID-19.

The ECSE is the result of a partnership between Statistics Canada and the Canadian Chamber of commerce. It was conducted from 29 may to 3 July, with business owners from across Canada.

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