EI Monitoring and Assessment Report 2012/13 Executive Highlights

The 2012/13 Employment Insurance (EI) Monitoring and Assessment Report examines the EI program for the 2012/13 fiscal year. Unless otherwise indicated, these highlights are for 2012/13 or relate to changes from 2011/12 to 2012/13.

Canada’s economy and labour market continued to grow at a moderate pace in the face of a challenging external environment.

• Real gross domestic product grew by 1.5% in 2012 /13, which was slower than the growth rate in 2011 /12 (+2.3%).
• Annual employment increased by 234,800 (+1.4%). This represents the third consecutive annual increase. Meanwhile, the annual unemployment rate dropped from 7.4% to 7.2%.

The number of regular and Work-Sharing claims fell, as the result of ongoing economic growth.

• The number of regular benefits claims decreased by 4.6% to 1.36 million in 2012 /13. However, this figure is 4.8% higher than the figure recorded in 2007 /08, prior to the onset of the late-2000s recession. Regular benefit payments decreased by 6.1% to $10.1 billion.
• Work-Sharing benefits claims decreased by 41.5% to 13,890, as claims figures returned to pre-recession levels in 2007 /08, while benefit payments decreased by 17.6% to $26.1 million.

As a result of an increase in 2012, the EI eligibility rate approached pre-recession levels.

• Among unemployed workers who had contributed EI premiums and then had a job separation that qualified under the EI program, 81.9% were eligible for EI regular benefits in 2012, an increase of 3.5 percentage points from 2011 (78.4%).
• The increase was attributable mainly to a shift in the labour market characteristics of unemployed EI contributors toward permanent employment.
• Before the recession, the rate was 82.3% in 2007 and 82.7% in 2006.

The number of EI special claims increased, while the number of fishing benefits claims decreased.

• The number of special benefits claims increased by 0.3%, to 510,040 in 2012 /13.
• Among the special benefits claims in 2011 /12, nearly one third (31.6%) combined more than one special benefit in a single claim.
• The number of fishing benefits claims decreased by 4.1% to 28,290 in 2012 /13, after increasing by 3.4% the previous year.

Participation in Employment Benefits and Support Measures shifted with the economy.

• A total of 662,260 clients (+2.5%) participated in 1,076,271 interventions (+11.8%).
• The use of Employment Assistance Services increased 14.2% to 901,063 as provinces and territories helped more job-ready clients with short-term interventions while case-managing more non-insured clients facing multiple barriers. Non-insured clients increased 12.7%.
• Apprenticeships responded to a steady demand for skilled trades (-0.5%).

Service Canada continued to respond to a higher than normal volume of EI claims.

• Service Canada processed 2.76 million EI claims in 2012 /13.
• Through the click-call-visit model, in 2012 /13, clients submitted 98.4% of EI applications electronically; EI specialized call centre agents handled 4.4 million client enquiries; resolving close to 85% of calls at the first point of contact and responded to over 4.2 million EI-related visits to an in-person point of service.
• Significant progress has been made on the automation of claims, with 65.7% of EI initial and renewal claims now fully or partially automated.
• The payment accuracy rate was 94.1% in 2012 /13 . Errors included overpayments and underpayments attributable to three sources: claimants, employers and Service Canada.