StatCan COVID-19: Data to Insights for a Better Canada Indigenous workers receiving Canada Emergency Response Benefit payments in 2020

Introduction

The COVID-19 pandemic has had a disproportionate socio-economic impact on Indigenous people, in part, reflecting greater pre-existing vulnerabilities such as lower incomes, higher levels of poverty and food insecurity (Arriagada et al., 2020a).

Research based on crowdsourced data found that a higher proportion of Indigenous participants (36%) reported that the COVID-19 pandemic had a strong or moderate impact on their ability to meet financial obligations or essential needs, such as rent or mortgage payments, utilities, and groceries, than non-Indigenous participants (25%). In addition, among those who lost their jobs or had to reduce their work hours, 65% of Indigenous participants reported a strong or moderate financial impact, while 56% of non-Indigenous participants did the same (Arriagada et al., 2020b).

Although initial labour market impacts of the pandemic were similar for both Indigenous and non-Indigenous people, recovery had been slower among Indigenous people in the six months following the onset of the pandemic (March-August 2020), particularly among Indigenous women and youth (Bleakney, Masoud, and Robertson, 2020).

The historical and ongoing impacts of colonization, including the removal from land and traditional livelihoods as well as the barriers to educational opportunities, have been well documented and continue to result in less favourable labour market and economic conditions and experiences among Indigenous people (Reading and Wien, 2009).

In response to the COVID-19 economic shutdown, the federal government launched the Canada Emergency Response Benefit (CERB) program on April 6, 2020 as one of several programs aimed at providing financial support to Canadian workers who were affected by the pandemic. The program was available from March 15, 2020 to September 26, 2020 and provided up to $500 per week for eligible Canadians for a maximum of $14,000 over 28 weeks.

The CERB program was available for individuals residing in Canada who were at least 15 years of age and had stopped working involuntarily (i.e., did not quit their job by choice) or had been working reduced hours due to COVID-19. Additional requirements were that they earned income from employment, self-employment, provincial maternity or parental leave benefits or non-eligible dividends of at least $5,000 in 2019 or in the 12 months prior to the date of their application; did not receive employment insurance (EI) benefits over the same eligibility period; and did not expect to earn over $1,000 in employment or self-employment income for at least 14 days in a row during a four-week period.

This article uses administrative data from the CERB program for workers in Canada linked to the 2016 long-form Census to analyze socio-economic characteristics of Indigenous workers who earned at least $5,000 in 2019 and received CERB between March and September 2020. These characteristics include industry of employment, income, type of main qualifying income (self-employed, employee, other), size of business as well as geography. Data are disaggregated by sex, age group and presented separately for First Nations people, Métis and Inuit.

The analysis complements an earlier release which examined the proportion of workers who received CERB among those who earned at least $5,000 in 2019, including by Indigenous identity, sex and age (Morissette et al., 2021). The study reflects Statistics Canada's commitment to the use of disaggregated data, which will contribute to a better understanding of the experiences of specific population groups, including those who are more vulnerable to the economic impacts of the pandemic.

About 4 in 10 Indigenous workers received CERB in 2020

Among all workers who earned at least $5,000 in 2019, Indigenous workers (39.2%) were more likely to have received CERB than non-Indigenous workers (33.9%) (Table 1). Among First Nations workers, 41.5% received CERB payments in 2020. The corresponding proportions among Métis and Inuit workers were 36.2% and 40.3%, respectively.

On average, Indigenous workers received CERB payments for 0.6 weeks longer than non-Indigenous workers (17.5 vs. 16.9 weeks)

The higher proportions receiving CERB payments among Indigenous workers may, in part, be due to their overrepresentation among youth, in lower-paying jobs^Note  and certain industries such as accommodation and food services as well as construction, which were more heavily impacted during the pandemic.

Just over half of Indigenous and non-Indigenous youth received CERB payments

The largest proportion of Indigenous (51.6%) and non-Indigenous workers (52.1%) who received CERB was among those aged 15 to 24 (Table 1) as youth in general experienced greater employment losses and higher unemployment in the spring and summer of 2020 (Bleakney, Masoud, and Robertson, 2020). Moreover, Indigenous youth account for a larger share of the overall youth population in Canada (6.7%) than the share of Indigenous people as a whole among the total Canadian population (4.9%)^Note , which partly explains why Indigenous workers were more likely to receive CERB overall.

Over one half of First Nations (52.8%) and Métis (51.0%) youth received the benefit in 2020 with young women more likely to have received payments than men. Among Inuit, about 41.9% of workers aged 15 to 24 received CERB payments, similar to the proportion seen among core-aged workers (25 to 54 years). Inuit men were more likely than women to have received CERB payments in both age groups.

The largest difference between the proportions of Indigenous and non-Indigenous workers who received CERB, however, was seen among core-aged workers. Core-aged Indigenous workers were more likely to have received CERB (38.2%) than their non-Indigenous counterparts (32.0%), particularly men. This may, in part, be due to differences in CERB receipt between Indigenous and non-Indigenous workers by industry, as discussed in a later section. In addition, core-aged Indigenous men^Note  are overrepresented in industries such as construction as well as business, building and other support services^Note , which were the third and fifth most affected industries in terms of employment losses by September 2020, compared to pre-pandemic levels in February 2020 (Labour Force Survey, 2020).

Half of core-aged Status First Nations men living on reserve received CERB in 2020, compared with 4 in 10 living off reserve

According to the 2016 Census, about three-quarters of the First Nations population (76.2%) had Registered or Treaty Indian status under the Indian Act (henceforth referred to as Status First Nations). About 44.2% of Status First Nations people lived on reserve, while the rest lived off reserve.

Although the proportions of Status (41.8%) and non-Status First Nations workers (40.5%) who received CERB were similar, Status First Nations workers aged 25 to 54 were more likely to receive CERB (42.2%) than those without Status (38.2%).

In addition, Status First Nations workers living on reserve were more likely (44.0%) to receive CERB than those living off reserve (40.6%), particularly core-aged (25 to 54 years) men (Chart 1). Among Status First Nations workers, about half (50.1%) of core-aged men living on reserve received CERB compared with 40.3% of core-aged men living off reserve.

Low-wage workers^Note  were among the hardest hit by the lockdowns during the pandemic. In 2015, median employment income among Status First Nations people on reserve was $17,208, compared with $25,894 among Status First Nations people living off reserve (Census, 2016). In particular, employment income was significantly lower among core-aged Status First Nations men living on reserve ($21,052) compared with those living off reserve ($41,313).

Alberta had the highest proportion of Indigenous workers receiving CERB

In every province and region, Indigenous workers were more likely to receive CERB than non-Indigenous workers, with the highest proportion seen in Alberta (43.2%), followed by Saskatchewan (41.8%) (Chart 2). Non-Indigenous workers, on the other hand, were more likely to receive CERB in Quebec (37.0%) and Ontario (34.5%).

The high proportion of Indigenous workers receiving CERB in Alberta likely reflects the fact that it had the largest year-over-year decline in employment rate (-11.8 points) among Indigenous people (excluding First Nations people living on reserve) in the six-month period from March to August 2020 (Bleakney, Masoud, and Robertson, 2021). On the other hand, year-over-year employment among Indigenous people (excluding First Nations people living on reserve) declined the least in Saskatchewan over the same period. However, the province had the second highest proportion of First Nations people living on reserve in Canada in 2016 (Census, 2016) and, among workers, more than half (52.6%) received CERB in 2020.

Among First Nations workers, those living in the Prairies were the most likely to receive CERB. The highest proportions were seen among workers in Saskatchewan (48.3%), followed by Alberta (47.2%) and Manitoba (44.1%), with higher rates seen among those living on reserve in all three provinces (Chart 3). On the other hand, First Nations workers living in Ontario (36.8%) and Newfoundland and Labrador (37.0%) were the least likely to receive CERB.

Among Métis, Alberta had the highest percentage of workers receiving CERB (39.8%), followed by Quebec (37.9%) and British Columbia (37.6%). Métis workers in the region of Yukon and the Northwest Territories were least likely to receive CERB (28.2%).

Core-aged Inuit workers living inside Inuit Nunangat were more likely to receive CERB, while younger workers were more likely outside of Inuit Nunangat

Inuit Nunangat is the homeland of Inuit in Canada and includes four Inuit regions: Nunatsiavut (Northern coastal Labrador), Nunavik (Northern Quebec), Nunavut, and the Inuvialuit region (Northern Northwest Territories). In 2016, there were 65,025 Inuit in Canada and around three-quarters (72.8%) of them lived in the four regions of Inuit Nunangat; 46.4% in Nunavut, 18.1% in Nunavik, 4.8% in the Inuvialuit Region and 3.5% in Nunatsiavut (Census, 2016).

Inuit workers living inside Inuit Nunangat were more likely to receive CERB (42.1%) than those living outside (36.2%) (Chart 4). The larger difference was seen among men, with 44.6% of those living inside Inuit Nunangat receiving CERB, compared with 35.5% of those living outside. Moreover, Inuit men living in Inuit Nunangat (44.6%) were more likely to receive CERB than women (39.5%) with little difference seen between both sexes outside of Inuit regions.

Among Inuit living in Inuit Nunangat, the highest proportion of CERB receipt in 2020 was seen among those aged 25 to 54 years (45.3%), while outside of those regions, Inuit aged 15 to 24 were more likely to receive payments (46.9%).

Among the four regions of Inuit Nunangat, the proportion of Inuit workers who received CERB in 2020 was highest for those living in Nunavik (47.1%), followed by those in Nunavut (41.7%) (Chart 5). Those living in Nunatsiavut were the least likely to receive CERB (26.4%).

Over two-thirds of Indigenous workers in arts, entertainment and recreation as well as accommodation and food services received CERB in 2020

Indigenous workers made up 3.3% of the overall employed Canadian population in 2019, but represented 4.5% of all workers in accommodation and food services, as well as construction^Note . Employment declines in these two industries (-15.3% and -8.1%, respectively) were among the biggest seen between February and September 2020 (Statistics Canada, 2020). This could partly explain the higher overall proportion of Indigenous workers receiving CERB compared with non-Indigenous workers.

Similar to their non-Indigenous counterparts, Indigenous workers employed in arts, entertainment and recreation as well as accommodation and food services were most likely to receive CERB in 2020. Of all Indigenous workers earning at least $5,000 in 2019 and employed in each of these industries, about two-thirds received CERB payments (Chart 6). Similar findings were seen among First Nations workers by Status and for those living on or off reserve, as well as Métis and Inuit workers, when examined separately.

Employment in arts, entertainment and recreation as well as accommodation and food services was severely affected by the economic lockdowns in 2020. Overall, workers in these two industries faced the greatest decline in actual working hours of 44.8% and 41.2%, respectively, between the March-to-September 2019 period and the March-to-September 2020 period (Morissette et al., 2021).

Nearly half of all Indigenous workers in construction also received CERB, with higher proportions among First Nations (52.4%) and Inuit (53.9%) workers than Métis (44.5%). Among First Nations workers in construction, those with Status living on reserve were the most likely to receive CERB (62.5%), followed by those living off reserve (51.2%) and non-Status First Nations workers (46.5%). Similar findings were seen among Indigenous workers in Agriculture, forestry, fishing and hunting, with the proportion receiving CERB more than twice as high as among non-Indigenous workers (43.2% and 21.6%, respectively).

Proportion receiving CERB was highest among low-wage Indigenous workers

According to data from the Labour Force Survey, low-wage workers^Note  across Canada were among the most severely impacted by the COVID-19 labour market downturn. Between March and August 2020, employment among low-wage employees fell by 22.7% on average compared to pre-pandemic levels in February 2020, while it fell by 5.4% among all other employees, reflecting the uneven labour market impact of the economic shutdowns (Statistics Canada, 2020).

Consistent with this pattern, Indigenous workers with relatively low annual earnings were also the most likely to receive CERB payments. Among those who earned at least $5,000 in 2019 and were in the bottom 10% of the employment income distribution, more than one half (57.7%) received CERB payments in 2020, while only 12.5% of those in the top 10% did so (Chart 7).

A similar pattern was seen among non-Indigenous workers receiving CERB payments across the employment income distribution.

Proportion receiving CERB higher among Indigenous workers who were self-employed

Of all Indigenous workers who were self-employed^Note  and had earned at least $5,000 in 2019, about 58.3% received CERB in 2020, compared with 37.6% of employees^Note  and 46.0% of those with other sources of income^Note  (Chart 8). A similar pattern was seen among non-Indigenous workers, although at lower proportions.

This finding also held true for First Nations workers by Status and for those living on or off reserve, as well as Métis and Inuit workers, when examined separately. Although among Inuit, workers who earned income from other sources were about as equally as likely as those self-employed to receive CERB.

The higher proportion of CERB receipt among self-employed workers may, in part, reflect the differences seen in the labour market impacts of the COVID-19 lockdowns on them, compared with employees between March and September 2020. In particular, self-employed workers experienced a larger year-over-year decline in total actual hours worked (-25.8%) compared with employees (-11.7%) (Labour Force Survey, 2020). In addition, the number of self-employed in September 2020 was down 6.0% from its pre-pandemic level in February 2020, compared with a decline of 3.3% among employees.

Indigenous workers in small businesses were more likely to receive CERB

Between March and September 2020, just under one half (47.3%) of Indigenous workers employed by small businesses with 1 to 99 employees received CERB, compared with 40.5% of those in medium-sized businesses and 27.6% of those in large businesses with 500 employees or more (Chart 9). Similar findings were seen among non-Indigenous workers, although the proportion of Indigenous workers receiving CERB across all business sizes remained higher.

According to data from the Canadian Survey on Business Conditions (CSBC), while the majority of businesses in Canada were impacted by the pandemic, small businesses with 1 to 99 employees reported being more affected (Tam et al., 2020). They were more likely to report a decrease in revenue of 40% or more, be unable to take on more debt and consider bankruptcy as a result.

Summary

The economic downturn had disproportionate impacts on Indigenous people, who were more vulnerable due to pre-existing disparities, such as lower incomes, higher levels of poverty and food insecurity, rooted in historical and ongoing impacts of colonization.

Using administrative data from the CERB program for workers in Canada linked to the 2016 long-form Census, this paper examined socio-economic characteristics of Indigenous workers who received CERB payments between March and September 2020.

Overall, Indigenous workers were more likely to receive CERB payments than non-Indigenous workers in 2020 with similar patterns seen for both Indigenous and non-Indigenous workers across sex, industry of employment, income and business size.

Indigenous workers who were 15 to 24 years old; employed in arts, entertainment and recreation as well as accommodation and food services; with relatively low annual earnings; self-employed; or worked in small businesses were the most likely to receive CERB. These findings are consistent with data from the Labour Force Survey, which show that these workers were the most severely impacted by the economic shutdowns.

In addition, the proportion of Status and non-Status First Nations workers receiving CERB was similar, although Status First Nations workers living on reserve were more likely to have received payments in 2020 than those living off reserve. Indigenous workers in Alberta and Saskatchewan were the most likely to receive CERB, while among Inuit workers, those living inside Inuit Nunangat were more likely to receive CERB than those living outside.

The overall higher proportion of Indigenous workers receiving CERB may reflect, in part, their overrepresentation among youth, in lower-paying jobs and certain industries such as accommodation and food services as well as construction, which had among the greatest pandemic-related employment losses. However, employment rates among Indigenous people, especially those living on reserve and Inuit inside Inuit Nunangat, are much lower than those seen among non-Indigenous people. Given that those unemployed would not have been eligible for CERB but have also been affected by the pandemic, differences in CERB receipt seen here between Indigenous and non-Indigenous workers likely understate the disproportionate impacts of the pandemic on Indigenous people.

Data source

The CERB data used in this study come from Employment and Social Development Canada (ESDC) and contains information about CERB payments administered in 2020 by both ESDC and the Canada Revenue Agency (CRA). Earnings from 2019 include paid employment from a T4 slip and net self-employment income and eligible dividends as reported on the T1 return.

This study focuses on workers who received CERB among those who earned at least $5,000 in 2019. Workers who earned at least $5,000 in the 12 months prior to the date of the CERB application were also eligible for CERB, however, their employment information was not available at the time. Also, those who voluntarily quit their jobs were not eligible for CERB, however, this information has not been integrated into the dataset.

The CERB dataset was linked to the Census, and only those who linked to the 2016 long-form Census are included in this analysis. For example, those who were not in Canada at the time of the Census and those living in collective dwellings are excluded. The dataset is thus subject to potential under-coverage.

In this study, Indigenous people are those who identified as First Nations people, Métis and Inuit in the 2016 long-form Census. First Nations people include those living on and off reserve, as well as both Status and non-Status First Nations people.

References

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