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In September CEWS subsidy rates were reduced, and business cried foul. But what impact did it really have? https://financesofthenation.ca/2020/12/02/news-about-cews/
The average subsidy per worker fell sharply in September (Period 7), after the safe harbour ended.
To get a sense of the impact on employment in subsidized firms, I looked at number of employee claims by period. It did fall, but only 4.5% in September (period 7).
Subsidies fell sharply, with no evidence of a big effect in layoffs. This suggests to me that wage subsidies are not cost effective, because they are not targeted at jobs truly at risk
This *preliminary* evidence suggests that each job saved through CEWS costs the governmetn $188,000 per year. https://financesofthenation.ca/2020/12/02/news-about-cews/
