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The Canadian government plans to introduce an Employment Insurance (EI)-like benefit for gig and contract workers as the Canada Emergency Response Benefit (CERB) winds down. The CERB was introduced in March to provide financial support to individuals who lost their income due to the COVID-19 pandemic.
According to government figures, $62.75 billion in benefits have been paid out to 8.46 million people through the CERB program. About half of these recipients were already eligible for EI benefits. The government is expecting around four million Canadians to be on EI come the fall.
The government’s decision to introduce a new benefit is part of its efforts to support workers and help the economy recover from the pandemic. The EI system has been tested during the CERB program, and officials believe it can handle the increased demand in the fall.
In related news, Statistics Canada reported that the Canadian economy grew by 4.5% in May, following two months of decline due to lockdowns. This growth was driven by rebounds in multiple industries, including retail trade. However, the economy still contracted by 12% in the second quarter compared to the first three months of 2020.
The government also announced that it is extending a commercial rent-relief program through August as a lifeline to small businesses whose revenues are still lagging behind their fixed costs.
Details about the new EI-like benefit will be released in the coming weeks.
