Pandemic: nearly two in five companies have had to layoffs

About 37% of businesses in Canada have laid off at least one employee since the start of the health crisis.

That’s what Statistics Canada reported on Friday in a study on the impact of COVID-19 on Canadian businesses.

Among companies that have laid off at least one employee, almost two-thirds fired half of their workforce, or more.

Businesses in the arts, entertainment and recreation sectors were particularly affected, with 84% of them saying they had laid off half or more of their workforce. This is also the case in businesses providing health care and social assistance (80.6%) and accommodation and food services (74.0%).

Note that 53.8% of companies that laid off employees indicated that they had rehired 50% or more.

In addition, the revenues of nearly a third of businesses were down 30% or more last August compared to August 2019. In addition, about 15.5% of companies across the country claimed that their revenues had halved, or more.

It was also in the arts, entertainment and recreation sector that companies suffered as nearly half (46.9%) indicated that their revenues had fallen by 40% or more.

Additionally, 74.1% of businesses expected their number of employees to stay the same over the next three months, while 10.4% expected their number of employees to decrease.

The study also indicates that more than two-fifths of companies can no longer take on more debt. One in five businesses expect to increase their prices, and 5.2% of businesses said they are seriously considering bankruptcy or closing their business.

As for teleworking and remote working, this mode has spread since the start of the pandemic. In this case, more than a third of the companies declared that this option was part of the possibilities for their employees. And once the pandemic is over, about 14.7% of companies believe that all employees will continue with this in mind.

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