Go Back to Work or Collect the CERB?

What a mess we are in right now. Here is a restaurant looking for anyone to work. One of many competing against the CERB.

I am sure it is the same for other low paying jobs such as working behind the counter at a local donut or retail store. Hey why work if you earn more at home?

For those of you unfamiliar with the CERB, the acronym for Canadian Emergency Response Benefit, this was introduced by the government to help people get by until the reopening of the economy. It was an emergency lifeline to give to those who suddenly were without work as their places were ordered to close.

Originally it was for only 16 weeks or 4 months until it was hopefully going to lapse and people would all be returning to a fully opened economy. It paid $2,000 a month or $500 a week when you break it all down weekly. Not hard math to do. Also to note that this was not gift money as next year you will pay tax on this amount probably about 15%. So $8,000 x 15% is $1,200 taxes owed. So now don't forget to have some money aside to pay for that next year when you file.

So that really works out to $1700 a month income, or $425 a week.

Well things didn't quite work out as planned as we are taking this long time to get the economy reopened again. So they extended the CERB two more months through September. That is another $4,000 extension.

This is the problem. As noted in the article you have read many are choosing to stay at home and collect the CERB rather than go back to work. This is a problem for small business owners as they can only do so much on their own. They have to turn down work.

There were approximately  8.1 million who took the CERB which by far was an amazing number of people. The unemployment figures were out today and there were close to a million jobs created. The rate went down from 13 something to 12 something per cent. Still a lot of people who are on the CERB who have jobs that have disappeared or work in places that have not yet opened.

Any bets when the CERB runs out they will have to extend it or find a replacement?

Now this question always comes to my mind and that is how anyone can live on $2000 a month and say they make more staying at home than going back to work. I am not talking about a couple of hundred people here but millions.

Is the problem that business owners have businesses that  cannot guarantee hours to their employees so their earnings per week are not worth it so they would rather stay home? How come people have multiple jobs in order to pay the bills?

This may be cruel but I believe some people open businesses that should not be in business. If the small business owner does not have enough income to pay at least two people full time hours then they shouldn't be hiring anyone. They should just be doing it themselves. Sorry I said it.

If people need to work a couple of low paying jobs to get by then why would the business owner expect loyalty? Here is a made up conversation.

Employer: Hey can you work Monday?

Employee: No I am at my other job and I cannot afford to lose that to work one night here. Hey how about giving me at least 32 hours a week and I will lose my other job. How about that?

Employer: Oh I cannot afford to hire you more than what I give you now.

Employee: Okay then I have to work at my other job too and they need me Monday. Sorry.

The restaurant owner above lost a $2000 catering job. I feel bad for that but stay home and collect $2000 and from what I see it was probably like one catering job she had available. I think the choice  is obvious.

Why people are staying at home and collecting this miniscule benefit of $2000 a month is because the lack of hours they get at their current or old job is not enough to make $500 a week. If they have two to three jobs maybe during this pandemic one employer is still closed, another closed for good and the other has called you back to work at 15 hours a week. A whopping $225 a week.

So ah let me see yes I will pass for now. Full time hours at wow 40 hours a week better grab it or someone else will.

That is the problem here.

Of course the other way to avoid this is go learn something and become certified in something where you can make great money. Then maybe you wouldn't have to worry about the CERB, right?