Trudeau Begins Plans for CERB Phase-Out, Government Aid To Be Replaced by Employment Benefits
The Canadian federal government has stated it will begin to phase out the Canadian Emergency Response Benefit (CERB), and will instead transition those in need of income support to employment benefits.
On Friday, Canadian Prime Minister Justin Trudeau unveiled his plan to begin winding down the CERB benefits that over 8.5 million Canadians have been receiving since the the program was first introduced. As some of the recipients of the benefit will lose their eligibility come the end of August, they will be redirected to employment benefits, while those that do not qualify will receive some form of a stipend in the meantime.
The latest CERB phase-out plan is part of the federal government’s efforts to get Canadians back into the workforce and off of monthly aid. However, the transition is not an easy task, given that a sudden lack of income aids could further impede economic recovery; conversely, the slow phase-out could deincentivize the need to get back to work. The CERB program has so far delivered a total of $63 billion in benefits to over 8.5 million Canadians. As of June, almost 40% of the 3 million lost jobs due to the pandemic have been recovered.
Information for this briefing was found via Bloomberg. 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.
