Relocate EI Recipients? Federal Study Suggests Shifting Unemployed To Regions With Labour Needs

CP  |  By Posted: Updated: 05/18/2012 8:09 am

OTTAWA - A new study from the Human Resources Department suggests Ottawa is looking at ways to get people receiving employment insurance to move to other regions with more jobs.

Such measures would go beyond the Harper government's new policy that appears to require that some EI recipients take unfilled jobs but only in their own region.

A focus group study, completed in January, asked 75 people on EI in Quebec and Atlantic Canada what would it take to get them to move to regions where there are more jobs available.

The research, ordered last June shortly after the Conservatives were elected with a majority, required the survey company to determine "what type of migration incentives could encourage EI clients to accept a job that requires a residential move?"

Sage Research Corp. reported that the EI clients in Rouyn-Noranda, Que., Corner Brook, Nfld., Miramichi, N.B., and Yarmouth, N.S., all reacted positively to some proposed financial incentives, such as reimbursement for moving expenses or for travel costs to a job interview.

One "concept is to reimburse moving expenses for unemployed people who have moved and found a permanent job in another region," says the final report, obtained by The Canadian Press under the Access to Information Act.

"There was a degree of positive reaction to this concept as an incentive from a number of participants."

The study did not explore whether the prospect of being cut off from EI benefits might also encourage a move to other regions, but focused instead on cost reimbursement.

The issue of EI changes has dominated debate in Parliament this week, with Finance Minister Jim Flaherty suggesting sweeping reforms that could include requiring EI recipients to take low-level jobs outside their skills and work experience.

Human Resources Minister Diane Finley has tried to douse the controversy by saying the reforms would not require EI recipients to take jobs outside their regions or beyond their "skill sets."

However the proposed amendments, buried in the government's omnibus budget bill, contain no details or definitions, simply empowering the minister to change regulations without parliamentary scrutiny.

A spokeswoman for Finley tried to distance the minister from the newly released study.

"This research was commissioned by the department without the knowledge of the minister," Alyson Queen said in an email.

"We have been quite clear that the intent of the improvements we are making to the Employment Insurance program are to connect Canadians with local jobs opportunities, in their area."

Queen added: "We were not even aware of this report or the research being conducted. It was not commissioned by us and was not a part of our policy considerations."

Finley later issued a statement from Guadalajara, Mexico, where she was travelling:

"Economic Action Plan 2012 committed to increasing efforts that will better connect Canadians with opportunities in their local labour market.

"Our government has been very clear that changes will connect Canadians with available jobs in their own area.

"The study in question did not inform the policy direction we are taking to improve employment insurance."

But Saskatchewan's premier suggested measures to promote mobility are indeed on the federal EI agenda.

"There are ... some built-in disincentives for people in certain parts of the country to go where there is a labour shortage in other parts of the country," Brad Wall said at the legislature in Regina on Thursday.

"So we're hearing in principle anyway that they're looking at those changes and that they may be announcing something soon."

Wall said he pressed Prime Minister Stephen Harper for EI changes in the winter, to help alleviate worker shortages in Saskatchewan. The premier led a delegation to Ireland earlier this year to find workers for about 275 unfilled jobs in the province.

A researcher with the Mowat Centre, a Toronto-based think tank, said the study's examination of so-called "mobility grants" is indeed out of step with the government's recent policy statements on EI changes.

But Jon Medow also noted the Harper government's new labour policies are already inconsistent, allowing some employers with unfilled jobs to pay temporary foreign workers wages up to 15 per cent below prevailing rates, further reducing the attractiveness of the often low-level work for Canadians on EI.

"It seems pretty incoherent," he said in an interview.

The Sage report also helps undermine a long-held criticism of the EI system, that is, that more generous benefits in high-unemployment regions reduces labour mobility to regions with work available.

The focus-group study found that most EI recipients did not know their region had richer EI benefits than other parts of Canada, and therefore the more generous benefits had little impact on decisions to stay put.

"When the question of whether EI rules or 'generosity' affect thinking about moving, the usual reaction from participants was a blank stare. ...

"Awareness that EI generosity varies regionally was quite limited. ... This low awareness indicates most participants have not consciously connected relative EI generosity to their thinking about moving."

Medow said the study's finding supports his think-tank's view that EI benefits should be uniform across Canada.

Also on HuffPost:

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  • 5 Signs Canada's Workers Are In For A Rough 2012

    Photo: CP/Andrew Vaughan

  • Good Jobs Few And Far Between

    When it comes to evaluating Canadian job growth, the employment numbers are just part of what worries Benjamin Tal, deputy chief economist at CIBC World Markets. "It's not only the quantity, but also the quality of employment that's falling in Canada," says Tal. "A lot of the jobs that are being created are low-quality, especially part-time jobs and low-paying jobs." Though -- unlike the U.S. -- Canada has regained all the jobs lost in the recession, he says that an absence of good-paying jobs is the "main reason" why wages have stagnated. Adjusted for inflation, personal after-tax income is now rising at the slowest rate since 1995. Meanwhile, the skills mismatch in many jurisdictions has left employers short on skilled labour despite still-high unemployment levels in other regions. "If you lose a job, you don't have the skill set to go an find a job elsewhere that companies want and need," says Tal. (Alamy photo)

  • Globalization

    When Caterpillar decided to stop assembling locomotives in its Electro-Motive facility in London, Ont., it was a poignant reminder of how globalization is giving deep-pocketed, transnational corporations the ultimate trump card in bargaining with workers: a cheaper alternative. According to Mike Moffatt, a labour expert at the University of Western Ontario's Ivey School of Business, because of automation and an increase in imports from lower wage jurisdictions like China and Mexico, Canadian workers are competing for fewer manufacturing jobs. "That's given firms real power to negotiate down wages," says Moffatt, who points to the <a href="http://www.reuters.com/article/2012/02/06/riotintoalcan-alma-idUSL2E8D699U20120206" target="_hplink">Rio Tinto lockout in Quebec</a> as another illustration of the might afforded to companies with global reach. Since locking out workers at its aluminum smelter in Saguenay-Lac-Saint-Jean on December 31, the Anglo-Australian mining giant has used non-union workers to operate the facility at one-third capacity. With no plans to return to the bargaining table, the company recently announced it is restarting two suspended lines, and is expecting to return to full capacity in May. As Tal maintains, "In this environment, the bargaining power of labour is diminishing."

  • Austerity Agenda

    Just as the power has shifted toward private-sector employers, Michael Lynk, a labour law expert at the University of Western Ontario, says there is a sense that governments are becoming emboldened amid the post-recession climate of austerity that has swept from Toronto's City Hall to Parliament Hill. "There's increasingly an attitude of take-it-or-or leave-it by [private sector] employers, but we may begin to see that with public sector bargaining as well, where they basically say, 'You have to meet our bargaining objectives this round, and we're going to be prepared to endure a short or lengthy lockout to prove our point," he says. Though global economic instability recently prompted federal Finance Minister Jim Flaherty to pull back on his earlier commitment to deep cost-cutting in the upcoming budget, government departments are expecting spending to be slashed by between five and 10 per cent, a goal that will be met at least in part at the expense of public service jobs and benefits. The Canadian Centre for Policy Alternatives recently estimated that the <a href="http://www.behindthenumbers.ca/2012/02/02/federal-cuts-could-push-unemployment-to-8/" target="_hplink">federal government's budget cuts could push unemployment up half a percentage point, to 8 per cent</a>. (CP photo)

  • Pension Problems

    From <a href="http://dalgazette.com/featured/faculty-strike-rumours-explained/" target="_hplink">Dalhousie University</a> to <a href="http://www.thestar.com/article/1120516--labour-strife-ahead-in-air-canada-pilot-talks" target="_hplink">Air Canada</a>, employers no longer able -- or willing -- to fund costly pension plans are mounting attempts to roll back retirement benefits, stoking labour unrest and a growing sense of financial insecurity among workers. As Dalhouse University labour economist Lars Osberg explains, the financial crisis took a huge bite out of the value of corporate pension portfolios and the interest rate required to generate the stream of returns to make these programs sustainable. All of which explains why experts anticipate a deepening of the trend away from inflation-protected, gold-plated defined-benefit pension plans, shifting responsibility for retirement savings from employers to workers.

  • Decline Of Unions

    The power in numbers that enabled Big Labour to negotiate better wages and benefits in the aftermath of the Second World War is a distant memory today, as the <a href="http://www.huffingtonpost.ca/2011/12/12/canada-income-inequality-decline-unions-middle-class-jobs_n_1139136.html" target="_hplink">erosion of unions continues to whittle away the strength of collective bargaining</a>. This is particularly true in the private sector, where unionization sits at 16 per cent of employees, less than a quarter of public sector unionization. "I think you will see more disputes with unions having to compromise more than in the past," says Tal. "I really don't see that they have the upper hand at this point." Given the yawning gap between private and public sector unionization, Lynk warns that pressure on public sector unions could mount as it has in the U.S. in recent months. "The argument they've been floating is, 'Why should public sector workers have jobs for life, good pensions, and decent wages? They're eating up your taxes,'" he says. "I wouldn't be surprised if we're not [starting] to see the beginnings of that kind of argument here in Canada."

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11:48 AM on 05/18/2012
Work locations keep shifting to some degree. If people have to relocate to Alberta so be it. The ones that relocate will very likely do very well, the ones that don't have just made their own bed so must sleep in it. Its all about personal decisions and they all are possible. To the benefit of western Canada a lot of the west is very nice and certainly a decent place to relocate to.
As for manufacturing and Dutch Disease, it has much less to do with the oil in the west and a lot more to do with the Hyundai, Kia, Toyota and made in China labels on nearly everything. Some people say they build some of the foreign cars in america yes ok but where do the profits go - South Korea, Japan and China. Beside that the labour paid in Asian manufacturing is peanuts compared to anything paid in america including MacDonalds.
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HUFFPOST SUPER USER
maxmtl
Carpe Diem
07:59 PM on 05/17/2012
Blow job is better than no job at all.
HUFFPOST SUPER USER
mpasmith
Send in ... the clowns.
05:23 PM on 05/17/2012
Reimbursing moving expenses for people who have moved to get a job is hardly a forced relocation.

Huffingtonpost, you need to update your headline to be less sensationalist.
HUFFPOST SUPER USER
DirkNeptune
I love raspberry pie, damn it.
05:58 PM on 05/17/2012
You are so right. They should make this seem like a paid vacation. It's the conservative way.
Donna Meness
www.findmaisyandshannon.com
03:24 PM on 05/17/2012
Ottawa's display of indifference came at a disheartening time for the 3.4 million Canadians living in poverty.

The government delivered its response in October 2010 to the Senate's 2009 report, In From the Margins: A Call to Action on Poverty, Housing and Homelessness.

It rejected every one of the report's 74 recommendations. It ignored the senators' evidence that Ottawa is spending $150 billion a year on social programs that merely perpetuate poverty. It concluded with these all-too-familiar words: "The best long-term strategy to fight poverty is the sustained employment of Canadians."

"The government seems unwilling to make any commitment to work with the provinces to develop a poverty elimination plan for Canadians," said Citizens for Public Justice, a faith-based network of 1,500 people dedicated to creating a society in which everyone can live in dignity.

"What we got from the government of Canada was: Get a Job," said a bitter Tony Dolan, who chairs the Council of Canadians with Disabilities, many of whose members can't work.

Worse still, the Senate report concluded that, far from lifting people out of poverty, many of our existing programs are so badly designed that they hold people down.

http://www.parl.gc.ca/Content/SEN/Committee/402/citi/rep/rep02dec09-e.pdf
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DirkNeptune
I love raspberry pie, damn it.
03:02 PM on 05/17/2012
A government that treats its citizens as the enemy is shooting itself in the foot with one of their unregistered long guns.
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Taylor Jay
I don't align myself with any political party.
04:14 PM on 05/17/2012
What are the jets really protecting us from? even if a country invades and takes control over Canada they would most likely still treat us better.
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DirkNeptune
I love raspberry pie, damn it.
06:33 PM on 05/17/2012
The billions wasted on the jets are protecting Canadians from becoming lazy and expecting their government to actually provide services to help them like making sure their food is safe, the environment remains healthy, provide pensions that people can count on and so on.

The conservatives have this selfishly evil way of thinking that the only way to help people is not to help them.

Or to take it one step further, the only way to help people is give more money to the wealthy in hopes that there will be a few crumbs left for the rest of us. You know the proven-not-to-work trickle down theory.

You could probably count on one finger the number of times these jets will actually be used in a war situation
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Liz Wilson 2
“a small group can change the world
02:34 PM on 05/17/2012
I wonder if the government is going to continue to enact policies that make it difficult for some businesses to remain viable. Encouraging more cross border shopping is a nail in the coffin of local businesses. At some point the government needs to understand that you cannot hollow out one region in order to support another.
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PortlandZoo
Wait... what?
02:40 PM on 05/17/2012
yup, soon it will boil down to the "Holy Protectorate of Alberta - and the other parts of the country that don't matter at all. TM"
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Spanky McFarlane
ILLEGITIMUS NON CARBORUNDUM.
02:09 PM on 05/17/2012
Wasn't it the USSR where people pretended to work & the State pretended to pay them?

Harper should move to China when he gets punted out as his skill sets are in demand there.
02:05 PM on 05/17/2012
this government couldn't do anything right for people no matter what. They see everyone has parasites, not citizens. I don't work for them, they work for me. Too bad they forgot that. Too bad instead of standing up for Canadians, they stand up against them.
This comment has been removed.
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Marcus Davies
I'm still standing
01:58 PM on 05/17/2012
Here is the basic premise of the policy:
1. The government recognizes that the economy is losing "good" jobs but is growing "bad" jobs'; and
2. If people can collect EI while waiting for a "good" job in their region, then the government has a stake in creating good jobs;
3. But if the government can force people to relocate or take "bad" jobs, then the government has less stake in ensuring the economy grows "good" jobs.

So at its core, it is a move to make the government less accountable for the creation of good jobs.

For this government, it has the added bonus of being mean-spirited an placing blame on workers rather than others, so it is right in the Harper wheelhouse.
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arkymorgan
Nobody knows the trouble I've been...
06:32 PM on 05/17/2012
For these guys, a good meal isn't worth eating unless there's a starving beggar to watch.
01:58 PM on 05/17/2012
I would like to throw another idea out there. Instead of hiring from another country because you can pay 15 cents lower to immigrants or even more. Perhaps we should look at all of the people that we have sitting collecting welfare. You want to save money on a budget. Here is a target area. Here are people who are now generationally linked to collecting welfare. That is where the reform needs to be. People who are collecting EI are people who have been working and have lost their job for whatever reason. These people are motivated and need as much help as we can give them to be re employed. However, we do need to re-motivate people who believe that they are entitled somehow to sit and have the working population pay for them and their generations to come. For example, when a person enters welfare with 2 kids they leave welfare with 2 kids. When said kids start school, so does mom and dad. After completing education, 6 months more of welfare to find a job. We will help with the school loans, but like everyone else you will have to start to pay those off when you get a job. Part 2 of 2
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arkymorgan
Nobody knows the trouble I've been...
06:35 PM on 05/17/2012
Now don't you go confusing this issue with stuff like facts and good ideas here. We need a bigger class of wageslaves, or who knows how long we'll wait in line at McDonald's. Do you have any idea how cranky my spoiled brat kids get after two minutes?
01:57 PM on 05/17/2012
I see no problem with helping someone on EI set up an interview, perhaps video conferencing or telephone interview, I have gotten jobs in other parts of the country that way. Taxes will reimburse relocation costs. I have experienced that too. Our world has changed and we do have to go where the work is. We do have to be open to taking something that may be out of our skill set until something opens up within our skill set. No, it is not easy. I did it for years. The education and on the job training I received is never lost. It only adds to what I have to offer. I also agree that EI Benefits should be the same across the country. Part 1 or 2
02:44 PM on 05/17/2012
I think much depends on your skills. The store clerk who is laid off when the shop closes, has the same skill set as a million other people. Ditto the office admin worker. A million of those without work who now try to get into the jobs in retail just to earn a living. Let's also be clear on government regulation. You now need courses in order to clean rooms in a motel. You need to take an approved course just to sell cars. Let's face the issues of age as well because anyone over 50 understands how hard it is. Then you have overqualified people that the companies won't hire because they don't think you will stay. Or too much experience and they think you are too set in your methods. It isn't just a simple matter for Harper to say move - I think it should be a choice and I think if the government spent more time setting up skype interviews and those services across country for anyone who wishes to use them, especially those skilled in professions that need work. Sending a MacDonalds worker to Fort MacMurray to work at a job that still won't pay the rent, isn't solving anything except on the government books that they send to the media as a way of telling the world how jobs have been created and unemployment has fallen. Whether or not the people can live on the earnings from those jobs is never discussed.
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Liz Wilson 2
“a small group can change the world
01:50 PM on 05/17/2012
I would like to see the questions and I would like to know more about the research company used. Its not difficult to create a set of questions that result in the responses you want rather than getting at the truth.

Since I have zero confidence in this government doing anything honestly - I can honestly say I do not believe the minister is in the dark and I can honestly say - I am not surprised that people would move if costs were covered.
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Liz Wilson 2
“a small group can change the world
01:47 PM on 05/17/2012
"This research was commissioned by the department without the knowledge of the minister," Alyson Queen said in an email.

Hmmmmm.... I thought that the conservative ministers were incharge of their departments. I find it a little unlikely that this type of research was done without government approvale. These sort of studies do come with a price tag after all.
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PortlandZoo
Wait... what?
02:06 PM on 05/17/2012
they're only in charge if it's politically expedient - otherwise, they know nothing - or it's the Liberals fault - again.
SamEasy
You really don`t want to know.
01:45 PM on 05/17/2012
A few years ago there was a couple of billion bucks in the EI fund. Does anyone know what REALLY happened to that money?? I would like to know.
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Glass Cannon
Let every eye negotiate for itself.
01:49 PM on 05/17/2012
Two words: F-35s. Libya.
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PortlandZoo
Wait... what?
02:08 PM on 05/17/2012
a few more: G20, Tony Clement's riding, indoor lakes, millions to Baird's "friends", gold embossing, de-liberalizing all of Ottawa... etc, etc...