What’s more, job losses were more pronounced among lower-wage workers, who typically have less savings and less access to credit. That leaves them more vulnerable to this economic shock.4 Consequently, labour income fell in the first quarter, dropping sharply in March.
The level of labour income is estimated to have decreased by about 15 percent, or more than $ billion, in the first half of 2020 relative to its pre-COVID-19 level. These negative effects on total employment income were largely offset by the swift fiscal policy actions of the federal government, notably the Canada Emergency Response Benefit (CERB) and the Canada Emergency Wage Subsidy (CEWS).