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.

--MNI Ottawa Bureau; +1 613-314-9647; email: greg.quinn@marketnews.com

--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

[TOPICS: MACDS$,M$C$$$]