A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. Companies that have laid off workers are telling the Bank of Canada they plan to refill some positions over the next year, but many hiring plans remain muted over COVID-19-related uncertainty. THE CANADIAN PRESS/Adrian Wyld

Bank of Canada survey says business hiring plans remain muted due to pandemic

About one-third say they have used a federal wage subsidy to reduce or avoid layoffs

Companies that have laid off workers are telling the Bank of Canada they plan to refill some positions over the next year, but many hiring plans remain muted over COVID-19-related uncertainty.

The central bank’s quarterly business outlook survey released today suggests many service sector and energy companies don’t expect a return to pre-pandemic employment levels.

About one-third say they have used a federal wage subsidy to reduce or avoid layoffs, while other firms looking to rehire or hire new staff cited an emergency federal benefit for workers as a hurdle to their plans.

The worry among workers about losing their job rose to the highest level seen in the central bank’s survey of consumer expectations, released alongside the business outlook.

As well, workers’ expectations of how easily they could find new work dropped to the lowest level since the 2015 oil price shock.

Consumers’ expectations for wage growth were below what they anticipated for inflation, while the outlook for growth in household income dropped to its lowest level in the survey’s history.

The Canadian Press

Coronaviruseconomy

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Morning Start: The Exorcist film set was haunted

Your morning start for Tuesday, Aug. 11, 2020

$45K in donations received after Pitt Meadows woman, man die in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

Former Summerlander receives Emmy nomination for makeup work

Lucky Bromhead recognized for her work with Canadian sitcom Schitt’s Creek

Morning Start: High heels were first designed for men

Your morning start for Monday, Aug. 10, 2020

DFO says 5 aggrieved B.C First Nations were consulted on fisheries plan

Nuu-chah-nulth First Nations calls response ‘a sham,’ adding DFO never incorporates their views

Canucks ride momentum into NHL playoff series against defending Stanley Cup champs

PREVIEW: Vancouver opens against St. Louis on Wednesday

Pitt Meadows woman gives birth on in-laws’ driveway

Frédérique Gagnon new son is appropriately named after Norse trickster god

Man, 54, charged in connection with fatal attack of Red Deer doctor

Doctor was killed in his walk-in clinic on Monday

UPDATE: Two dead after fishing boat sinks off southern Vancouver Island

Shawnigan Lake-registered Arctic Fox II went down off Cape Flattery, west of Victoria

Landlord takes front door, windows after single B.C. mom late with rent

Maple Ridge mom gets help from community generosity and government

VIDEO: Revelstoke rallies to save snared eagle

Local climber scales tree to save the raptor

42 more people test positive for COVID-19 in B.C.

The province has recorded no new deaths in recent days

Most Read