Tuesday, July 14, 2020 - 09:57

MNI DATA: 19% of Canada Cos Won't Last 6 Mos Before Cuts

By Greg Quinn

OTTAWA (MNI) - Almost one-fifth of Canadian firms said they can survive for less than six months based on current revenues before having to look at cutting staff or filing for bankruptcy, according to a Statistics Canada survey published Tuesday.

Half of firms said revenues had dropped by at least 30% in April from a year ago, and a third said revenue was down at least 50%.

The survey was taken through June and found 15% of firms planned to add workers over the next three months, while 66% expected their payrolls to remain unchanged. May and June were months where employment rebounded by more than 1 million people as many industries re-opened, but remained 1.8 million below pre-pandemic levels.

The report suggested working at home will become a more permanent feature of the economy, with one-third of firms saying at least 10% of their staff were working remotely, double the share from a February survey. Even after the pandemic passes, 23% of firms expect at least 10% of their staff to work remotely.

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