Statistics Canada: workplaces adapting to COVID realities
Canadian businesses have been hit hard by the COVID-19 pandemic, but as governments introduce measures to relax physical distancing requirements, most appear well placed to restore operations.
Those were the findings of Statistics Canada’s survey on the impact of COVID-19 on business conditions in May. The survey found that while the Canadian economy dropped by more than 11 percent in April after a drop of 7.5 percent in March, a rebound was occurring in May.
The survey asked business owners about their expectations for the number of people they employed over the next three months. Nearly two-thirds said they expected their numbers of employees to remain the same, which just over 15 percent said expected to increase their numbers of employees. Those businesses in the accommodation and food services sector (24.4 percent) and in the manufacturing sector (23.9 percent) were most optimistic about increasing their employee bases.
It’s clear that when people return to work, their workplaces won’t look the same as they did before the pandemic. The survey found that more than 80 percent of businesses would need personal protective equipment as physical distancing measures relax. Those in the health care and social assistance sector (93.0 percent), the accommodation and food services sector (92.9 percent) and the retail trade sector (91.9 percent) were most likely to need equipment or supplies.
Over two-thirds (68.1 percent) of businesses reported that they need or will need masks and eye protection, while more than 64 percent need or will need cleaning products. Two-thirds (66.5 percent) of businesses indicated they were likely or very likely to provide face masks, gloves, and other personal protective equipment to employees. Three-quarters (74.8 percent) of businesses reported they were likely or very likely to increase sanitization of the workplace. Over one-fifth (22.0 percent) of businesses were experiencing or expect to experience difficulty procuring personal protective equipment or supplies.
Teleworking, which was one solution many companies used to continued operations during the pandemic, may become a tool of the future. Once the COVID-19 pandemic is over, 22.5 percent of businesses said that 10 percent or more of their workforce will continue to telework or work remotely. That notion was most popular among businesses in the information and cultural industries sector (47.2 percent) and in the professional, scientific and technical services sector (44.5 percent).
The opportunity to return to work, for many, cannot come soon enough. More than half of the companies surveyed reported drops in revenues of more than 30 percent compared with the previous year; thirty-five percent said their revenues dropped by half or more. Further complicating matters is that nearly 41 percent of businesses said their expenses excluding salaries and wages have remained the same.
As a result, nearly two-thirds (63.7 percent) of businesses reported being approved for funding from government programs or credit from external providers. More than 43 percent said they applied for, and received, the Canada Emergency Business Account, nearly 23 percent said they had been approved for the Canada Emergency Wage Subsidy, and nearly 24 percent said they had their rent or mortgage payments deferred as a result of the pandemic.
Some companies also turned to layoffs to deal with COVID-related income losses. Nearly 40 percent reported reducing staff hours or shifts due to the COVID-19 pandemic, while over one-quarter (28.4 percent) laid off staff. Close to one-fifth (17.4 percent) of all businesses laid off half or more of their workforce.
Almost one-fifth (19.3 percent) of businesses reported they could continue to operate at their current level of revenue and expenditures for less than six months before considering further staffing actions, closure or bankruptcy.