EI Monitoring and Assessment Report 2012/13 Introduction

Notice: Refer to the Table of contents to navigate through the EI Monitoring and Assessment Report 2012/13.

Monitoring and assessing the Employment Insurance (EI) program helps provide a clear understanding of its impact on the Canadian economy and its effectiveness in addressing the needs of Canadian workers, their families and their employers.

1. The Employment Insurance Program

The EI program provides temporary financial assistance to workers who have lost their job through no fault of their own while they look for work or upgrade their skills, and helps unemployed people across the country find employment. The EI program also provides assistance to workers who are sick, pregnant, or caring for a newborn or adopted child, as well as to those caring for a family member who is gravely ill with a significant risk of death.

The Unemployment Insurance program was first implemented in 1940, with the last major reform occurring in 1996. At that time, the name of the program was changed from “Unemployment Insurance” to “Employment Insurance,” to reflect the program’s primary objective of promoting employment in the labour force, and to better emphasize that individuals’ access to the program is linked to significant work attachment.

2. The Canada Employment Insurance Commission

The Canada Employment Insurance Commission (CEIC) has the legislated mandate to annually monitor and assess the EI program, and overseeing a research agenda contributing to the report. The CEIC’s annual EI Monitoring and Assessment (M&A) report is delivered to the Minister by fiscal year end, for tabling in Parliament.

The CEIC makes regulations under the authority of the EI Act, with the approval of the Governor in Council. EI Program operations are carried out by ESDC and Service Canada on behalf of the Commission. In addition, the CEIC plays a key role in overseeing the EI program, reviewing and approving policies related to EI program administration and delivery.

In another key role, the CEIC contributes to financial transparency of the EI system. Annually, it commissions an EI premium report from the Chief Actuary, prepares a summary report and conveys both reports to the Ministers of ESDC and Finance, also for tabling in Parliament. The CEIC sets the annual maximum insurable earnings, according to legislative requirement. Legislation has been passed which will confer rate-setting responsibility on the CEIC, starting with the 2017 EI premium rate.

The CEIC determines which EI appeal decisions will be submitted for judicial review by the Federal Court of Appeal. Additionally, two of the Commissioners—for Workers and Employers—serve in tri-partite committee with the chair of the new appeal body, the Social Security Tribunal (SST), which committee is consulted by the Minister for purposes of Governor in Council appointment of members to the EI section of that Tribunal.

The two EI Commissioners have responsibilities to represent their respective stakeholders, reflecting internally, within the department, the concerns and positions of employers and workers on policy development and program delivery related to EI and the labour market. To do this, they establish and maintain discussions/consultations with private sector organizations and individuals interested in and affected by ESDC programs and services, particularly with regard to EI.

3. Legislated Mandate

Section 3 of the Employment Insurance Act gives the CEIC the legislated mandate to produce the M&A Report annually.

"3. (1) The Commission shall monitor and assess the impact and effectiveness, for individuals, communities and the economy, of the benefits and other assistance provided under this Act, including:

  1. (a) how the benefits and assistance are utilized by employees and employers, and
  2. (b) the effect of the benefits and assistance on the obligation of claimants to be available for and to seek employment and on the efforts of employers to maintain a stable workforce.

(2) The Commission shall report to the Minister on its assessment annually no later than March 31 following the end of a year. The Commission shall make any additional reports at any other times, as the Minister may request."

4. The Report

The M&A Report is produced under the direction and guidance of the CEIC. Officials with ESDC and Service Canada support the CEIC in preparing the report. The report relies on multiple sources of information to provide a comprehensive analysis of the EI program, including administrative data, Statistics Canada survey data and peer-reviewed evaluation studies, as well as internal and external reports. As such, this report provides valuable information and evidence with respect to the EI program and the labour market.

This year’s report focuses on the responsiveness of the EI program in a period of moderate economic growth, the 2012-13 fiscal year. The first chapter of this report discusses the state of the Canadian labour market over that period. The second chapter analyzes the usage, impact and effectiveness of EI income benefits provided under Part I of the Employment Insurance Act for the same period. The third chapter discusses the support provided to unemployed workers through active re-employment measures, under Part II of the Employment Insurance Act, known as Employment Benefits and Support Measures. The fourth and final chapter presents information on EI program administration and service delivery.

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