Analysis: the limit of resilience

​Analyse: à la limite de la résilience

Photo: Valérian Mazataud The Duty
The bulk of the losses came in accommodation and catering (with-24.4 %).

The déconfinement progressive began in Quebec, with, as backdrop, a re-opening gradually of the economy. If the measures of restrictions to achieve a certain degree of intolerance in the population, they are at the limit of the resilience in companies whose activity does not fall within the definition of essential products and services.

The survey spouse Statistics Canada and the Canadian Chamber of commerce, conducted from 3 to 24 April, with approximately 12 600 companies, indicates that the impact of the COVID-19 on earnings is rather experienced with 53.5% of respondents saying that have measured a reduction in income of 20 % or more in the first quarter. And this, while the closure of businesses deemed non-core occurred after mid-march (march 25) in Quebec). In addition, they are more likely (34.1% of the respondents) to declare that they will not survive less than six months, compared to 32.1 % who exceed this period of time. But in these data, 17.5% of canadian businesses (20% in quebec) support will not be able to continue their activities or part of their activities with measures of social distancing in place.

The dashboard on the evolution of the coronavirus in Quebec, in Canada and in the world

On the other hand, the weakening financial has been able to be controlled by the massive aid from governments in the form of benefits or loan guarantees. Thus, 62,1 % of the respondents have not made any credit application to a financial institution to cover their operating costs affected by the COVID-19. However, 22.1 per cent have), and 6.5 % have suffered a denial. Nearly three-quarters have not had to proceed to a liquidation of assets and in companies with a rent-to-experience, 13 % have had to delay the payment against the double have not had to do it. Some 16 % say, however, that they have not had the ability to defer the payment of the rent.

As for the differences, the largest declines in income, in percentage, have been reported in the sectors of accommodation, catering services, arts, entertainment and recreation and retail trade. At the other end of the spectrum, over 40 % of companies in the sectors of agriculture, forestry, fishing and hunting, and public services have reported no change or reported an increase in their income, ” continues the joint study.

And if 64.8% of enterprises say they have suffered the impact high due to the decline in the demand for their products or services, and 48.5 % have rather been forced to cancel the services that they provided. These are also in the sectors of accommodation, catering, leisure and entertainment and retail trade.

Question to add to the play of differences, a recent survey from the canadian Federation of independent business (CFIB) indicated that almost half of SMES in québec experienced a decline of more than 70 % of their income. And 43 % of them say they can’t survive more than a month to a severe drop in their income.

Among the workers, only in terms of job losses in Quebec, the goods sector lost 9000 jobs in march, while the production of services has seen its number decrease of 255 000. The bulk of the losses came in accommodation and catering (with-24.4 %), followed by educational services other than the public system (-22,8 %), and culture and recreation (-14,5 %). Again, the worst is yet to come with the reading of April.

A dominant emerging from these surveys on a large scale to mitigate the heterogeneity of the respondents and level the severity of the felt according to sectors and industries. They are very many to fear permanent damage.

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