While Canada’s unemployment rate was down in December 2012 to its lowest point in four years, the country’s employment insurance (EI) program continues to fail those who need it, according to the head of one of Canada’s largest unions.
Statistics Canada numbers released last Friday indicated a net job increase of 39,800 in December across the country, the fourth increase posted over five months. The jump left the country’s unemployment rate at 7.1%—levels not seen since December 2008.
But Ken Georgetti, president of the Canadian Labour Congress, says that despite the good news, there were still more than 1.3 million unemployed Canadians in November, and many of those individuals struggle to collect EI.
“We know that only 37.9% of unemployed Canadians actually qualify for employment insurance,” Georgetti says. “That means, either there are roadblocks put in the way of people receiving benefits from an insurance program that they paid into, or they have been out of work for so long that they have used up their benefits.”
Georgetti says the federal government should also do more to ensure that those who need jobs have affordable access to training. “By latest count, there are 5.3 unemployed people for every job vacancy. This government and employers should be providing training and apprenticeship programs so that unemployed workers can be better matched to the jobs that are available.”
The comments come as the government introduced new EI rules on Sunday, which place stricter guidelines on what constitutes reasonable job search efforts needed to continue receiving EI benefits, and which essentially identify two groups of EI recipients: those who regularly collect benefits and those who rarely make claims. The guidelines will take into account individuals’ health, physical ability, family concerns and transportation considerations.
In announcing the changes, the government estimated that about 8,000 EI claimants would likely have their benefits temporarily discontinued while they prove they are meeting the new rules. The government also pegged the cost of policing the changes at $7.2 million per year but estimated savings to the EI program of $12.5 million in 2013 and $33 million next year.