Ottawa to provide monthly payments to out-of-work students

OTTAWA-The federal government will provide monthly payments for students over the summer, recognizing that young people who need income for tuition and living expenses face bleak job prospects.

Prime Minister Justin Trudeau on Wednesday unveiled a $9 billion aid package to students that includes targeted payments as well as a volunteer program, enhanced grants and scholarships.

The Canada Emergency Student Benefit will pay $1,250 a month and up to $1,750 for those with dependants or those with disabilities. The benefit to be paid between May and August, will apply to those going to school and recent graduates.

As well, he said the government would create 76,000 jobs for young people in "sectors that need an extra hand right now." That's on top of previous enhancements to the federal student jobs program.

Trudeau also announced an incentive for students to volunteer with the Canada Student Service Grant that will pay up to $5,000.

The prime minister said the government will also double the Canada Student Grants for eligible full-time students to up to $6,000 and up to $3,600 for part-time students for the coming school year. The Canada Student Grants for Students with Permanent Disabilities and Students with Dependants would also be doubled.

First Nations, Inuit, and Mi(C)tis Nation students pursuing post-secondary education will get an additional $75.2 million.

Ottawa will also boost research scholarships, grants and fellowships with an extra $291.6 million.

Trudeau acknowledged the uncertainty confronting students in their studies or looking to start their careers.

"These measures will help you get through this," Trudeau said.

The federal government had made some limited moves to help students. It has suspended loan repayments and interest for the Canada Student Loans program until Sept. 30. The government has also made its student jobs program more generous, offering employers that hire students wage subsidies of up to 100 per cent.

But students have voiced concerns that with much of the economy shut down, the enhanced jobs program is of little use.

Students have been largely shut out of the emergency income program created to provide funding for those who have lost income because of the economic fallout of the virus.

That has prompted calls from the Canadian Federation of Students and other groups to make students eligible for the emergency benefit.

The March labour force survey by Statistics Canada highlights the concerns of students about their job prospects. The March data captures just the early impact of the economic shutdown on workers - and it revealed that youth aged 15 to 24 suffered the sharpest job loss with employment dropping by 392,500.

Statistics Canada reported that the decrease was almost entirely in part-time work. Almost two-thirds of youth are students. Those in school were hit harder than nonstudents.

Students are most likely to work in the very businesses - retail and hospitality - that have been shut down by the government-imposed restrictions.

The unemployment rate for youth jumped 6.5 percentage points to 16.8 per cent, the highest rate for this group since 1997. Statistics Canada reported that an additional 88,400 youth wanted work in March but did not search due to reasons related to COVID-19.

Bruce Campion-Smith is an Ottawa-based reporter covering national politics. Follow him on Twitter: @yowflier