A new survey conducted by Wagepoint, creators of online small business payroll software, finds that 58 per cent of small businesses that laid off staff due to COVID-19 are now planning to rehire in the next three months.
“Small businesses employ more Canadians than any other part of our economy. So, when they got hit hard by COVID-19, we all got hit hard,” said Shrad Rao, CEO of Wagepoint, in a news release. “But small businesses are built on entrepreneurial optimism. They’ve always fought against the odds, and now we’re seeing them do it again.”
According to Wagepoint research, layoffs in March represented 60 per cent of layoffs this year, but by the end of June, 55 per cent of those employees had been rehired, an upward trend that continued into July.
Wagepoint data and survey results:
- When COVID-19 first struck, 60 per cent of Canadian small businesses were forced to make rapid changes to their workforce;
- 40 per cent reduced headcount (either temporarily or permanently);
- 44 per cent reduced hours or compensation;
- Firms with 10 or more employees were the hardest hit (70 per cent reduced either headcount, hours, or compensation); and
- Firms with fewer than 10 employees were still impacted, but less so (57 per cent reduced either headcount, hours, or compensation).