As announced earlier, the Canadian Federal government is currently coming up with a plan to present to parliament regarding the extension of CERB payments.
Earlier on Monday, Canadian Prime Minister Justin Trudeau announced he will provide further details later in the week regarding how exactly the federal government plans to extend CERB payments. Although restrictions are being lifted across the country and many Canadians are returning to work, there are still millions that are about to reach their 16-week maximum of allowable CERB payments while still unable to secure employment.
So far, more than 8.4 million Canadians that have been receiving the $2,000 CERB payment, will soon be reaching their allowable limit. According to the NDP government, 2 million people will soon be maxed out of benefits, while another 6 million will hit the ceiling in a couple of weeks. Although the NDP government supports extending the benefits, they are calling on more accountability and planning in terms of getting Canadians the financial help they need.
Since the CERB program was first introduced, the budget has been extended from $35 billion to $60 billion in response to the unprecedented unemployment. The goal of the CERB was to ensure that everyone following government-mandated social distancing rules and stay at-home-orders were not suffering financially in the meantime. Now that restrictions are being lifted, many Canadians have come off the CERB and returned to work.
Information for this briefing was found via Bloomberg and Government of Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.