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Finance Minister Chrystia Freeland

Ottawa will make hiring program retroactive once Parliament passes budget: Freeland

Thursday, June 03, 2021 @ 11:31 AM | By Ian Burns

The federal government has provided more details about the future of its COVID-19 business support initiatives, saying it plans to make a program aimed at helping businesses hire and support workers retroactive once it becomes law.

Finance Minister Chrystia Freeland revealed June 2 that Ottawa plans to make the new Canada recovery hiring program, which was introduced in this year’s budget, retroactive to June 6 once parliamentarians pass the government’s budget implementation bill. The bill also proposes to extend through September the wage subsidy, rent subsidy and lockdown support programs, which are set to expire at the end of the month.

 Finance Minister Chrystia Freeland

Finance Minister Chrystia Freeland

“Canadian workers and businesses have showed incredible resilience through the pandemic,” she said. “Our plan to extend business support programs and introduce the new Canada recovery hiring program will help businesses support their workers through the final stretches of the pandemic and hire new workers at a pace that works for them. By giving businesses certainty about their support in the weeks and months ahead, they will have the confidence they need to create jobs and invest in growth.”

The hiring program is designed to interact with the wage subsidy so that when wage subsidy rates gradually decline, eligible employers would still be able to receive support if they hire more workers, or increase workers’ hours or wages. The government will also extend the business credit availability and highly affected sectors credit availability support programs until the end of December.

“Budget 2021 is the most small business-friendly budget in Canadian history,” said Small Business Minister Mary Ng. “Small businesses are the backbone of our economy, and through these historic investments, we are helping bridge them through the pandemic and thrive well into the future.”

According to the Organisation for Economic Co-operation and Development (OECD)’s May 2021 economic outlook, the Canadian economy is projected to grow by 6.1 per cent in 2021 and 3.8 per cent in 2022.

More information about the Canada recovery hiring program can be found here.

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