Report from the Hill - August 5

August 05, 2009

CANADIANS ARE BENEFITING FROM IMPROVEMENTS TO THE EMPLOYMENT INSURANCE PROGRAM

Our Government knows the global economic recession is affecting workers and we are taking concrete action to help Canadians through Employment Insurance (EI).  We made timely improvements to the program by providing longer EI benefits and more efficient service, and freezing EI premiums for 2010 at the same rate as 2009 to provide economic stimulus. We are assisting businesses experiencing temporary slowdowns and their workers through Work-Sharing agreements and increasing opportunities for unemployed Canadians to upgrade their skills and get back to work.

More than 82 percent of Canadian workers now have easier access to and longer EI benefits than they did in October 2008.  Every month, the number of work hours needed to qualify for EI benefits, and the number of weeks of benefits people receive, are adjusted based on the most recent local unemployment figures.  In regions where unemployment has gone up, the number of hours required to qualify has been reduced and the length of benefits increased.

The Government is providing five extra weeks of EI benefits to support Canadians who lose their jobs.  This new measure, with an estimated cost of $1.15 billion, came into effect on March 1st and will be in place until September 11, 2010.  As of July 26, more than 240,000 Canadians had already received additional benefits through this measure.

As of July 18, almost 5,000 Canadian firms are currently participating in Work-Sharing agreements, benefiting more than 150,000 Canadians.  Work-Sharing, an element of the EI program, can assist businesses experiencing a temporary slowdown caused by factors beyond their control.  It is designed to avoid layoffs by offering EI income benefits to qualifying workers willing to work a reduced work week while their employer recovers. Through Canada’s Economic Action Plan, the Government extended Work-Sharing agreements by 14 weeks to a maximum of 52 weeks, and increased access to the program through greater flexibility in the qualifying criteria for the next two years, at an estimated cost of $200 million.

Measures in Canada’s Economic Action Plan to help laid-off workers improve their skills so they will be able to find new jobs include:
Career Transition Assistance, which  will support an estimated 40,000 long-tenured workers with many years of experience who require new skills to find a new job, and represents an estimated investment of $500 million over two years; and
an additional investment of $1 billion over two years through existing agreements with provinces and territories to help 100,000 unemployed Canadians upgrade their skills, get on-the-job experience, find a job or become self-employed.

The Government is also providing an additional $500 million towards a two-year Strategic Training and Transition Fund to support the needs of individuals, whether or not they qualify for EI. The Fund will be delivered by the provinces and territories and will support initiatives that help meet the different training needs of workers affected by the economic downturn.  It is expected to benefit 50,000 individuals.

All of these improvements to the EI program are providing real results and helping Canadians get the support they need now to face these tough economic times, and the training they need to be ready for new opportunities when the global economy recovers.

To learn more about Canada’s Economic Action Plan, visit www.actionplan.gc.ca.