OTTAWA - Starting next week, jobless Canadians will be able to pocket more of their employment insurance benefits if they find temporary jobs during their search for full-time work.
A new pilot program announced in the Conservative government's spring budget gets underway Sunday.
The two-year, $74-million pilot project will allow EI claimants to stay active in the labour market in their search for permanent employment.
It will cut the current clawback rate in half for people who are collecting EI but who have found temporary work.
The easing of the clawback would mean that an unemployed person who is collecting $330 a week on EI while working a job that paid $450 a week would see their weekly earnings rise to $555 from $462.
The EI changes are billed as an attempt to drive overall economic growth by matching unemployed Canadians with employers trying to fill vacant jobs.
"Our government believes it should always pay to work," Human Resources Minister Diane Finley said in a statement.
"Canadians want to get back to work, and statistics show that those who stay active in, and remain connected to, the labour market find permanent employment faster. Our government is committed to supporting workers and ensuring that EI enables a strong and competitive workforce."
Reactions To EI Changes
A selection of quotes on the newly announced changes to the employment insurance program.<br><br> <em><strong>With files from CP and CBC.</strong></em><br><br> (CP/Alamy)
"New EI changes are like 'E-Harmony' for job seekers and employers: matching Cdns looking for work with available jobs, data, support." - Public Works Minister Rona Ambrose, on Twitter. (CP)
What we heard today is the minister scapegoating unemployed Canadians . . . that they are not trying hard enough to find work." - NDP Finance Critic Peggy Nash. (CP)
"While we're glad to see that the Conservatives have backed away from earlier draconian proposals floated by their most senior ministers, including the minister of Finance, we're concerned that the announced changes will force many Canadians to take low-skilled, low-paying jobs, jeopardize the economic security of communities that are reliant on seasonal industries, and that the appeals process will now be handled by a handful of political appointees based in Ottawa instead of by regional experts that are familiar with local circumstances." - Rodger Cuzner, Liberal Human Resources critic. (CP)
"The main beneficiaries of the current employment insurance rules are not the workers that Conservative rhetoric seeks to demonize, suggesting that something is wrong with 'repeat users', but rather the employers in forestry, fisheries and tourism industries." - Green Party Leader Elizabeth May. (CP)
"We certainly need more information than we have. People having to search for work and having to go within an hour's radius of where they live and so on, on the face of it, that doesn't sound all that onerous or difficult. But that depends on what you work at. In a province where we don't have public transportation, for example, if you're working for a minimum wage job and you have to travel 40 miles away, which is within the hour radius, to work at another $10-an-hour job, is that sensible? Is that prudent?" - Newfoundland and Labrador Premier Kathy Dunderdale, scrumming with reporters at the provincial legislature in St. John's. (CP)
"I'm disappointed that the federal government failed to consult with the provinces and territories on an issue that will impact workers and their families across the country... Under the new rules, some EI recipients that are eligible now will become less eligible in the future. The changes will also make it difficult for some employers to stay in business, including operators in the farming industry. It is already a challenge to keep rural communities strong. Economic changes are forcing people to leave their homes and communities to find work, and in many cases, once they leave, they're gone for good." - Nova Scotia Premier Darrell Dexter, in a statement provided to CBC News. (CP)
"When it comes to the EI system in Canada, a one-size-fits-all does not work... On P.E.I., we are very fortunate that our three largest industries are fisheries, agriculture and tourism: all three industries that are seasonal in nature. We are different than downtown Toronto and we are different than downtown Calgary. We know the federal government is looking at making changes that would be a hindrance to our industries that rely on workers coming back year after year that have expertise in these areas, that they need to come back and help to get their products to market." - Prince Edward Island Premier Robert Ghiz, speaking in the legislative assembly in Charlottetown. (CP)
Gregory Thomas, Canadian Taxpayers Federation
"The new EI rules strike a blow for hard-working Canadian taxpayers, against habitual pogey collectors who have been enjoying part-time work with other people's money for far too long... If you've been collecting pogey more than one year in the past five, maybe it's time to get some training, find a different line of work, or move to where the jobs are... Let's remember, these so-called benefits are nothing more than other people's EI tax money - over $20 billion dollars - forcibly taken from them... Every Canadian should be entitled to keep the money they work for, not have government tax it away and give it out in an attempt to buy votes." - Gregory Thomas, Canadian Taxpayers Federation, from a press release. (Handout)
Ken Georgetti, Canadian Labour Congress
"What she should do as a responsible cabinet minister is take these changes out of that budget bill and start to talk to the people who know the system better than she... Instead she comes up with more fatuous suggestions about situations that really don't exist out there... This is ridiculous economic policy. It's short-term thinking and it's political football with the people that are the most vulnerable in our society. People who are unemployed don't want to be unemployed. This government would have you believe that they're sitting there and surfing off the shores of Nova Scotia or skiing in the mountains of British Columbia... it's not true." - Ken Georgetti, Canadian Labour Congress, speaking on CBC News Network. (Handout)
Catherine Swift, Canadian Federation of Independent Business
"We believe the changes to defining suitable employment, based on how frequently EI is claimed, will help to remove disincentives to work and hopefully make it easier for small firms to find the people they need... Under the current system, 22 per cent of small business owners said they had difficulty hiring as potential workers would rather stay on EI benefits and another 16 per cent said they had been asked by an employee to lay them off to allow them to collect benefits... Employers agree that EI should be there for those who lose a job through no fault of their own, but do not accept that the system should be used as some form of paid vacation or ongoing lifestyle for those who choose not to work." - Catherine Swift, Canadian Federation of Independent Business, quoted in a news release. (Handout
7. Huge Regional Disparities
Wood Mountain (includes oil rich Fort McMurray, pictured here) saw its employment level shoot up by 95% over the 2000 to 2011 period, while forestry based Miramichi suffered the biggest decline of 63% in job numbers.<br> <br> Two out of 33 Census Metropolitan Areas (Windsor and Thunder Bay) had fewer jobs in 2011 than in 2000 while 13 of 45 smaller cities were in this situation. In 2011, only 5.5% of the labour force in Wood Mountain were unemployed while 16.4% were unemployed in Miramichi.<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
6. Jobs Up, Wages Down
The unemployment rate jumped from a near record low of 6.1% in October 2008 to a high of 8.7% high in August 2009 and has declined slowly since then to 7.2% in March 2012. In spite of the recovery, unemployment duration increased again in 2011.<br> <br> There was a another slight decrease in the number of discouraged job searchers in 2011, who just quit looking because they believed that nothing suitable was available, but their numbers were still 50% above pre-recession levels. Actual hours worked at all jobs advanced to 36.4 hours in 2011 up 24 minutes from the all-time low of 36 hours in 2009.<br> <br> Real (after removing inflation) average weekly wages fell by 0.5% in 2011 following an increase of only 0.2% in 2010. This helps explain why the number of workers who have more than one job climbed for a third straight year to a record 5.4% in 2011. Women (6.4%) are now more likely to have a second job than are men (4.5%) while both were the same (4.6%) in 1989.<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
5. Bad News For Working Parents
In 2011, the employment rate for lone-parent mothers (55%), lone-parent fathers (79%) and mothers with an employed husband present (70%) all with children under the age of six continued to be below their prerecession peaks. The only exception in 2011 was for women with a non-employed husband for whom the employment rate (53%) was above the pre-recession rate.<br> <br> The "monetary" value of childcare remains undervalued. In 2011, childcare and home support workers working full-time (30 hours or more per week) earned an average of $598 per week. This was the third lowest behind full-time chefs and cooks ($545) and retail sales persons ($589). On a more detailed level, babysitters, nannies and parent helpers were the lowest paid occupation from among over 700 occupations in the 2006 Census.<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
4. Manufacturing Still Struggling
After eight years of decline, the manufacturing sector created only 15,900 jobs in 2011. Employment in 2011 was about where it was in 1993 and down by 532,200 jobs since the peak in 2004.<br> <br> Based on employment growth over the 2000 to 2011 period, the most rapidly expanding industries in Canada were mining and oil and gas extraction (+70.3%) and construction (+56.4%). Other leading growth industries (all service related) included professional, scientific, technical services (+39.9%), health care and social assistance (+37.9%) and real estate and leasing (+30.1%). <br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
3. Labour Shortages
For 2011 as a whole, eight (35%) out of the 23 major occupations were in a shortage situation, compared to six occupations in the previous year but still much less than the 10 occupations before the recession began. When examined from an industry basis, there were shortages in five (25%) of the 20 sectors in 2011, up from four during the previous year. <br> <br> In 2011, the unemployment rate among professional occupations in health, nurse supervisors and registered nurses stood at only 0.8%. Unemployment was only 1.9% in technical, assisting and related occupations in health and in professional occupations in business and finance. Demographics point to more shortages in the medium-term.<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
2. Alberta - The Youth Job-Bringer
Based on a ranking of 10 youth related indicators, Alberta was the best place for youth in 2011 followed by Saskatchewan in 2nd spot and Quebec in 3rd spot. Next in line were Manitoba (4th), Prince Edward Island (5th), British Columbia (6th), Ontario (7th), New Brunswick (8th), Newfoundland (9th) and Nova Scotia (10th).<br> <br> At the national level, recession is still the reality for youth. Youth employment plummeted by 195,400 jobs in 2009 and 2010 combined but only 19,300 jobs came back in 2011. In 2011, employment rates for all youth slipped further to 55.4% (lowest since 2000), was flat for returning students working in the summer (53.8%) but down a lot for full-time students who were working during the school year (36.6%). <br> <br> In 2011, the unemployment rate improved slightly for all youth (14.2%) but worsened for returning students working in the summer (17.4%).<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>
1. A Greying Workforce
More and more seniors are working longer. The percentage of those aged 60-64 who are employed rose from 34% in 1989 to 47% in 2011 ... a new record. The percentage of those aged 65-69 who are still working jumped from 11% in 1989 to 23% in 2011 ... another new record. The percentage of the 70 and over group who are still working increased to 6% in 2011 ... one more record high. <br> <br> Over the 1989 to 2011 period, the labour force aged 45-54 more than doubled (+108%), those aged 55-64 also more than doubled (+133%) while those aged 65 and older grew even faster (+180%). <br> <br> The recession delayed retirement for many, as record numbers of persons 60 and older remained in the paid workforce. The median retirement age among men (63.2 years) rose for a third consecutive year in 2011 and was the highest since 2003. The median age of retirement among women increased to 61.4 years in 2011 and is the second highest since 1994.<br> <br> -- <a href="http://peoplepatternsconsulting.com/pub_can_job12.html" target="_hplink">People Patterns Consulting</a>