A survey released by Statistics Canada on April 29 shows that more than 32 percent of Canadian businesses reported that their revenues in the first quarter of 2020 were down by at least 40 percent from the same period a year ago. A further 21 percent reported drops in income of between 20 and 40 percent over the same period.

Statistics Canada and the Canadian Chamber of Commerce collaborated to survey more than 12,600 business from across the country between April 3 and 24. The intent of the survey was to better understand the impact of COVID-19 on businesses, employers and employees, communities and the economy. Statistics Canada cautions that while the findings of the survey are stark, they may not be representative of the economy as a whole.

Those hardest hit by the effects of COVID-19 were in the accommodation and food services sector, where nearly 73 percent reported revenue drops of at least 20 percent. Arts, entertainment and recreation (66.7 percent) and retail trade (60.3 percent) also lost at least one-fifth of their previous year’s incomes.

Responses from construction-industry employers suggested that more than 40 percent of companies reported year-over-year drops in revenue of at least 30 percent. Of those, more than 25 percent reported drops in income of at least 50 percent.

Across the country, more than half of businesses in Alberta (57.7 percent), Ontario (56.3 percent), British Columbia (54.8 percent), Newfoundland and Labrador (53.5 percent) and Saskatchewan (52.8 percent) saw declines of 20 percent or more in revenue.

The Statistics Canada survey also looked at ways businesses were responding to the economic impacts of COVID-19. More than one quarter of respondents said they had requested credit from their financial institutions to cover operating costs. More than three-quarters of those requests had been approved by financial institutions. Twenty percent of those companies that rent space for their offices reported requesting rent deferrals.

In addition, nearly 40 percent of companies surveyed said they reduced staff hours or shifts, while two-fifths reported laying off staff. More than 41 percent of respondents from the construction industry indicated that they had laid off at least 80 percent of their workforces.

Finally, trends on teleworking and working remotely are spiking upwards. Nearly half of respondents said that at least 10 percent of their workforces were working remotely on March 31. This was more than double the rate reported on February 1.

Nearly two-thirds of businesses reported that they could re-open or return to normal operations less than one month after social distancing measures are removed.