OTTAWA — More than 100,000 businesses closed their doors in April 2020 alone, according to new government data released Wednesday that underscores the colossal toll that COVID-19 restrictions took on Canadian businesses early in the pandemic.

Statistics Canada released a study of the ripple effects of pandemic lockdowns in the spring of 2020, when employment in the country fell by nearly one million people in March 2020 and by nearly two million people in April.

The “largest employment declines were observed in small businesses” in terms of proportion, the report found, as small businesses were forced to trim back their hours and lay off staff. Most layoffs over that period came from businesses that stayed open but were forced to cut staff, accounting for 900,000 lost jobs in March and 1.5 million in April.

The data come as the Liberal government continues to grapple with how it can support the hardest-hit industries while also pivoting Canada’s damaged economy toward growth. Business groups have been calling for a range of extended supports and new targeted aid packages to assist businesses as restrictions are lifted, warning that many are at risk of shutting their doors permanently.

A survey released on Wednesday by the Coalition of Hardest Hit Businesses, a group representing industries such as restaurants, hotels, tourism and others, found that 60 per cent of respondents would go out of business if key support programs are not extended.

The group is calling on Ottawa to extend the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) until the end of the year, or nearly seven months beyond its current deadline of early June. The study surveyed 1,700 respondents from across Canada.

Beth Potter, president and CEO of the Tourism Industry Association of Canada, said the extensions would be needed in particular by hard-hit sectors that are expected to take the longest to recover, and will operate under restrictions the longest.

“Without it, Canada’s tourism, culture and hospitality industries will be devastated for a generation,” she said in a statement.

Industry lobby groups have sought to reinforce their calls for business supports in recent days, after Finance Minister Chrystia Freeland announced she would be tabling a budget April 19.

The Canadian Chamber of Commerce on Wednesday also called on Ottawa to extend CEWS and CERS, saying hard-hit sectors “will need targeted policies to assist their longer recovery period,” in line with past statements made by the organization.

“For all of the subsidy and stimulus spending Canada has seen and will continue to see, the only path to real, sustainable growth is job creation and business investment,” Perrin Beatty, president and CEO of the Canadian Chamber of Commerce, said in a statement. “Our members, businesses from Main Street to C-Suite and everything in between, want one thing from this budget: a clear plan to help them lead Canada’s economic recovery.”

The Business Council of Canada, another lobby group representing many of Canada’s largest corporations, also made several key recommendations for the government ahead of the budget, including expanded training programs, research and development funds, and a “prudent fiscal plan” to boost business confidence.

“To build confidence, the federal government must present a comprehensive and credible plan that spurs investment, private sector job creation, and long-term economic growth,” said Goldy Hyder, CEO of the council.

SOURCE:

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