Employment Insurance Monitoring and Assessment Report 2014/2015   Annex 6 - Key studies referenced in chapter II and IV

1. Use of EI regular and special benefits by maternity and parental claimants

Author(s), Year

ESDC, Evaluation Directorate, 2013

Objective(s)

This study examines the use of EI special and regular benefits by maternity and parental claimants. The objective is to determine the extent to which these claimants combine benefits and how. Given that Quebec introduced the Quebec Parental Insurance Plan in 2006, the focus of the report is on claims from Canada outside of Quebec.

Key finding(s)

  • The number of maternity/parental claims rose by 17.5% from 2002/2003 to 2010/2011. Most noticeable is the increase in parental claims for males, which rose by 43.1% from 18,830 to 26,950 over the same period.
  • Most claimants did not combine benefits. For males, 84.5% of the parental claims were not combined with any other type of claims. When benefits were combined, males most often combined parental benefits with regular benefits (11.2%). When males combined parental benefits with sickness or regular benefits, the parental benefits were paid first in about half of the claims. The overall duration of claims averaged 20 weeks and duration was longer when the parental benefits were not paid first.
  • For females, the proportion of claims representing maternity/parental benefits only was 82.7%. When benefits were combined, females most often combined maternity/parental benefits with sickness benefits (11.9%). When sickness benefits were combined with maternity/parental benefits, almost all claims paid sickness benefits first (98.3%). The overall duration of claims averaged 47.6 weeks.
  • Working in occupations requiring university education or a high level of skill for management positions decreased the likelihood of combining benefits. As insured earnings and insured hours increased there was a decrease in the likelihood that claimants would combine benefits.

Availability

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2. Compassionate care benefits: Update

Author(s), Year

ESDC, Evaluation Directorate, 2015

Objective(s)

The report presents an overview of compassionate care benefits (CCB) and provides a socio-economic profile of CCB applicants and claimants. It also examines benefit usage. Data are updated from previous reports. Due to the small number of claims established by self-employed applicants in 2012/2013, the report does not cover the use of compassionate care benefits by self-employed individuals.

Key finding(s)

  • The acceptance rate averaged 63.8% since the extension of family definition in 2006.
  • The main reasons for applicants not qualifying for CC benefits remain unchanged: the family member is not at significant risk of death, the patient dies before the benefit is paid or the claimant does not provide an acceptable medical certificate.
  • The study also found that in 2012/2013, CCB applicants caring for a spouse or partner were more likely to have their claims approved than those caring for a parent, sibling, child or other type of family relation.
  • The mortality rate of care recipients remains the main factor affecting how much of the six-week CCB period claimants use. If the care recipient passes away while the claimant is receiving CCB, the claimant does not receive the full six weeks.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

3. Training through the ages

Author(s), Year

Cathy Underhill, 2006

Objective(s)

This study investigated the effects of socio-demographic characteristics on the incidence of training. Specifically, the effects of these characteristics have on training for different age groups (youth, core-aged workers and older workers).

Key finding(s)

  • There are differences in the significance of certain socio-demographic characteristics within different age groups. However, overall older workers (aged 55 to 64) were significantly less involved in job-related training than younger workers.
  • Women aged 55 to 64 (older workers) are 1.4 times more likely to take job-related training than men in the same age group. Conversely, women and men in the 25 to 34 age group were equally likely to participate.
  • Overall, higher educational attainment are associated with higher rates of training. Specifically, holding constant other characteristics, those aged 25 to 34 with a university degree were significantly more likely to participate in job-related training, however there was not such a significant difference in older workers.

Availability

This report is available on Statistics Canada’s web site at:
http://www.statcan.gc.ca/pub/75-001-x/11006/9502-eng.pdf

4. Job-related training of older workers

Author(s), Year

Jungwee Park, 2012

Objective(s)

This study focused on three areas: if there is differences in the participation rate in job-related training between those aged 55 to 64 (older workers) and core aged employees (25 to 54); the characteristics of older workers that are associated with an increased participation in job training; and finally how the participation of older workers in employer-supported training has changed over time.

Key finding(s)

  • Older-workers (55 to 64) have a much lower probability of taking job-related training than core-aged individuals. Specifically, 32% of older workers took training compared to 45% of core-aged workers.
  • Among older workers, the characteristics associated with lower training rates were education less than postsecondary, temporary employment, and sales and service jobs.
  • The training gap between older and younger workers has been closing, primarily attributable to increases in educational attainment and changes in types of jobs.

Availability

This report is available on Statistics Canada’s web site at:
http://www.statcan.gc.ca/pub/75-001-x/2012002/article/11652-eng.pdf

5. The redistributional impact of Employment Insurance 2007–2009

Author(s), Year

Ross Finnie, Queen’s University School of Policy Studies; and Ian Irvine, Concordia University for HRSDC, Evaluation Directorate, 2013

Objective(s)

The objective of this study is to investigate the degree to which Canada’s Employment Insurance (EI) program has redistributed purchasing power during the recent economic recession. Precisely, this period of investigation runs from 2007 to 2009, although results from the 2002 to 2006 period are also presented in order to place the recession period in a longer-term context.

Key finding(s)

  • EI redistributes income substantially when the unit of analysis is individual earnings. The lower deciles of the distribution benefit both on the contributions and benefits sides.
  • The quantitative redistributional impact of EI in 2009 appears to be approximately twice the impact of 2007.
  • In 2007 and 2008, Quebec was the largest recipient of benefits (even without accounting for family benefits. However, 2009 saw a reversal of this pattern: Quebec’s benefits increased by 20%, whereas Ontario’s benefits increased by almost 50%, a reflection of how much harder the recession hit the employment sector in Ontario than in Quebec.

Availability

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6. Financial impacts of receiving Employment Insurance

Author(s), Year

Constantine Kapsalis, Data Probe Economic Consulting Inc., 2010

Objective(s)

This study explores the financial impact of receiving EI benefits. The study probes the evolution of individual incomes before, during and after the receipt of EI benefits, as well as the influence of receiving EI on household consumption.

Key finding(s)

  • The average EI beneficiary experienced a 38% drop in wages during a year with EI. The most important offsetting factor was EI; it replaced about 38% of lost wages. The second most important factor was investment income; it replaced about 9% of lost wages. Other income sources played a lesser role.
  • Lower income families received a higher return of their contributions than did higher income families. In fact, families with after-tax income below the median received 34% of total benefits and paid 18% of all premiums in 2007. The study also found that EI halved the incidence of low income among beneficiaries (from 14% to 7%) during that period.

Availability

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7. Employment Insurance (EI) and non-standard workers: Part-time, Short-term and seasonal workers

Author(s), Year

HRSDC, Evaluation Directorate, 2013

Objective(s)

This study examines the EI eligibility rate at the time of a job separation and regular benefits use by employment type for individuals unemployed due to a work shortage. It contrasts EI characteristics for full-time permanent job separators to separators who were full-time non-permanent, part-time permanent, part-time non-permanent, or seasonal for the years 2005 to 2010.

Key finding(s)

  • Full-time permanent job separators have an 85.7% eligibility rate while eligibility rates for job separators from other employment types varied between 64% and 76%.
  • EI eligibility patterns by employment type were very similar to those for insured hours of work.
  • Among separators eligible for EI, 61% used regular EI benefits overall. Full-time permanent job separators had a 68% use rate. Eligible separators from other employment times had use rates lower than 60%.
  • Holding other factors constant, the likelihoods of benefit use by eligible separators were similar for separators from permanent and seasonal jobs. Compared to eligible full-time permanent job separators, eligible non-permanent separators had an 8 to 11 percentage point lower benefit use rate.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

8. Changing working time and Employment Insurance

Author(s), Year

ESDC, Policy Research Directorate, 2015

Objective(s)

This study documents on changes in working hours per week, EI eligibility rate (using the 35 hours grid) and weeks of entitled EI benefits at the aggregate level and by sub-groups since 1996. It also examines to what extent a potential adjustment to a grid based on a 30 hour work week would affect EI eligibility rates and the maximum weeks of benefits.

Key finding(s)

  • Average weekly hours did not change much since 1996, decreasing slightly for men and rising somewhat for women.
  • Overall, the EI eligibility rate was relatively stable over the past two decades, suggesting that changes in the EI system did not have a significant impact on EI eligibility. Notably, the EI eligibility rate fell sharply among youths and most of this decline occurred before the last recession.
  • Weeks of entitled EI benefits fell significantly after 1996, particularly among men, but this is largely explained by the declining trend in unemployment.
  • A 30 hour grid to determine EI eligibility would have a relatively small overall impact, and mainly benefit part-time workers, youth, less educated workers and recent immigrants.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

9. ROE-based measures of EI eligibility: Update 2001-2014

Author(s), Year

ESDC, Evaluation Directorate, 2016

Objective(s)

Using administrative data this study examined the percentage of job separators with enough hours to meet the variable entrance requirement (VER) and also the percentage of job separators with an EI claim. It looked at the eligibility and the claim rates across unemployment rates, provinces, industries, regions and selected cities.

Key finding(s)

  • From 2001 to 2014, the percentage of individual ROEs that met the VER varied around 46% with the lowest percentage observed in 2007 (43.2%) and the highest in 2009 (49.1%).
  • In general, there is a decreasing trend in the percentage of individuals who were laid-off and able to meet the VER with combined hours from the previous 52 weeks. Overall, the percentage is around 70%, with the lowest and highest levels observed respectively in 2013 (67.7%) and in 2002 (71.8%).
  • Across unemployment rates, the general trend was such that the percentage of eligible laid-off job separators increased as the unemployment rate increased, with fall-backs at different unemployment rates varying across years.
  • From 2001 to 2014, the percentage is highest where the unemployment rate is 13.1% and up, and lowest for unemployment rates at or below 6%.
  • With respect to provinces, from 2001 to 2014, the Atlantic provinces had a higher proportion of eligible laid-off job separators than the western and central provinces. Overtime, the percentage meeting the VER was slightly decreasing, especially for Manitoba.
  • Between 2001 and 2014, the manufacturing and construction industries had the highest percentage meeting the VER, followed by primary sector. Laid-off job separators who worked in the government had the lowest percentage meeting the VER, compared to other industries.
  • With regard to EI economic region, the percentages for laid-off job separators who met the VER were generally higher on the east coast compared to the west.

Availability

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10. Potential EI eligibility of Canadian paid workers using the labour force survey

Author(s), Year

Constantine Kapsalis and Pierre Tourigny, 2015

Objective(s)

The study estimates the proportion of Canadian paid workers, aged 19 to 69, who in the event of a layoff would have sufficient insurable hours of work to be eligible for EI benefits.

Key finding(s)

  • Simulations indicate that 88.5% of individuals who were working as paid workers in 2014 would have been eligible for EI regular benefits if they were to be laid off. Due to the very large sample, estimates are very accurate.
  • The EI eligibility rate is somewhat lower for women, due to the fact that part-time employment is more common among women. Among full-time employees, however, women tend to have a somewhat higher EI eligibility rate than men. There are also small differences among the provinces.
  • With respect to age, there is a significant gap between youth and adults aged 25 to 69 (65.5% vs. 91.8%). One reason for this result is that many youth are still in school and often work few hours. Another reason is that many youth workers are new entrants to the labour force and, therefore, face a higher entrance requirement (910 hours).
  • Finally, there is also a significant gap between full-time and part-time paid workers (93.6% vs. 61.0%). The main reason is that fewer part-time workers are able to accumulate enough hours over a 52 week period.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

11. Focus groups for the evaluation of working while on claim  (WWC): Synthesis report

Author(s)

HRSDC, Evaluation Directorate, 2014

Objective(s)

This study was conducted as part of the evaluation of the WWC pilot projects. There were eight focus groups conducted in four locations: Laval, Moncton, Montague and Sudbury. In each location, one group was with EI claimants eligible to revert to the previous WWC pilot rules ($75/40%), and one group was with EI claimants not eligible for the reversion.

Key finding(s)

  • About three-quarter of focus group participants were seasonal/intermittent workers with regular employers that they returned to after lay-off period.
  • For about half of focus group participants, the WWC provisions were not significant factors in their decision to work or not during a claim.
    • Some participants were unlikely to work regardless of the WWC rule in effect due to the following reasons: off-season may be relatively short (1 ½ to 2 months) and viewed as a vacation time; lack of temporary jobs; working while on claim can interfere with looking for full-time work; lack of motivation and financial need among older workers.
    • Some participants would work regardless of the WWC rule in effect. Most of them were seasonal/intermittent workers who would not turn down weeks of work offered by their regular employer by fear of risking their regular job.
  • None of the focus group participants said that they started to work while on claim because of the new WWC pilot (50%/90% rule).
  • The large majority of participants said that they would be less likely to work while on claim under the new pilot (50%/90% rule) in comparison to the previous pilot ($75/40% rule) because of the expectation that they could not find more than 1-2 days of work per week.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

12. Who are workers working for when working while on claim?

Author(s), Year

HRSDC, Evaluation Directorate, 2016

Objective(s)

This study investigates the pre-claim and post-claim relationships between Employment Insurance (EI) claimants who work while on claim their employers. The study is based on an analysis of administrative data from the EI Status Vector (STVC), the Record of Employment  (ROE), and the T4 file. The target population is “pure” regular claimants (i.e. claimants who received only regular benefits during their claim) who started their claim in 2010.

Key finding(s)

  • Almost three-quarters (73.8%) of claimants who worked while on claim worked for a single employer while 19.7% worked for two employers and 4.5% worked for 3 employers.
  • The average claimant who worked while on claim, worked about one-third (32.3%) of the time spent on claim. The weeks of employment (both in absolute terms and as a percentage of the weeks on claim) increase with the number of employers. This suggests that those who try to work more weeks during the claim have to look for employment opportunities with more employers.
  • Almost four-out-of five (79.3%) claimants who worked while on claim had worked for the same employer before the start of their claim. Virtually all claimants (96.0%) who worked while on claim and worked for the same employer before did so in the same or previous year.
  • In total, 82.4% of claimants who worked while on claim worked for the same employer after their claim. However, half of these cases may represent claimants who found a new job towards the end of the claim.
  • For 76.0% of claimants, work during the claim leads to longer than a year employment after the claim.
  • Virtually all claimants who worked while on claim (94.8%) worked for the same employer before and/or after their claim. More specifically, 64.7% worked for the same employer before and after their claim; 19.1% worked for the same employer only before their claim; and 16.2% worked for the same employer only after their claim.

Availability

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13. Extended duration of Employment Insurance regular benefits: Second evaluation study update

Author(s), Year

HRSDC, Evaluation Directorate, 2013

Objective(s)

The extended duration of EI regular benefits (EDB) initiative increased EI entitlements for regular claims by five weeks. It was introduced as part of a stimulus package in Budget 2009, along with several other relief measures. This study estimates the effect of EDB on benefit use and exhaustion of entitlements.

Key finding(s)

  • Mean weeks of EI benefits received rose with the entitlement increase.
  • The proportion of claimants using additional EDB weeks and their EI exhaustion rates declined with the entitlement increase.
  • From March 9, 2008 until April 4, 2010, the joint effect of the extra EDB weeks used and the increase in entitlement, controlling for other factors, led to an average increase in benefit use of 2.1 weeks.
  • Controlling for the same factors, the average probability of claimants exhausting their EI entitlement decreased by 4.8 percentage points due to the EDB initiative. Specifically, in EI economic regions previously eligible for the two preceding EI pilot projects that extended regular benefit weeks, the average probability of exhausting benefits was 4.4 percentage points lower due to EDB. In non-pilot regions, it was 5.0 percentage points lower.

Availability

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14. Geography-based analysis of the impact of EI measures

Author(s), Year

ESDC, Evaluation Directorate, 2016

Objective(s)

This study contrasts claimants’ behaviours living close to the border between pilot and non-pilot regions to measure the impact of Pilot 15 on EI usage.

Key finding(s)

  • EI benefit weeks used increased by 2.7 weeks in the pilot regions. Increased use of EI benefit was measured for all claimants in pilot regions, not just for those who used additional weeks of benefits provided under the pilot.
  • Entitlement exhaustion rate decreased by as much as 7.3 percentage points. The rate of exhaustion of the benefit period before full entitlement is paid, referred to as benefit period exhaustion rate, is 5.4 percentage points higher due to the Pilot 15 entitlement extension.
  • The occurrence rate of income gap for seasonal claims in pilot regions decreased by as much as 6.6 percentage points. Pilot 15 shortened the number of weeks of income gap by 2.6 weeks for workers between seasonal jobs.

Availability

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15. Training and the duration of Employment Insurance benefits

Author(s), Year

ESDC, Economic Policy Directorate, 2015

Objective(s)

This study, using data from the Survey of Labour and Income Dynamics  (SLID), looked at the impact of participation in job-related training on the incidence of receiving EI regular benefits and the duration of regular benefit payments during the period 2002 to 2008 (when SLID collected data on participation in training).

Key finding(s)

  • For males who participated in job-related training in a given year, the probability of receiving EI regular benefits in the following year was reduced by 1.4 percentage points, from an average predicted probability of 4.7%.
  • For females who participated in job-related training in a given year, the probability of receiving EI regular benefits in the following year was found to be reduced by 0.6 percentage points, from an average predicted probability of 4.1%.
  • Among different types of training, it was found that it is employer-sponsored and workplace-based job-related training that reduced the incidence of receiving EI regular benefits; self-sponsored and classroom-based job-related training were not found to have an impact.
  • With respect to the duration of EI regular benefits, participation in job-related training in a given year had only a limited impact, reducing the duration of benefit payments in the following year by 1.6 days among male recipients and 0.9 days among female recipients.

Availability

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16. An evaluation overview of seasonal employment: update

Author(s), Year

HRSDC, Evaluation Directorate, 2009

Objective(s)

This study provides an overview of seasonal employment in Canada and draws conclusions on the subject of seasonal work.

Key finding(s)

  • Based on aggregate Labour Force Survey (LFS) data, it has been estimated that seasonal employment accounts for 2.8% of total employment.
  • The Canadian Out of Employment Panel (COEP) survey estimated seasonal workers made up 15.8 percent of job separations over the 2004 to 2007 period.
  • Seasonal workers are:
    • more likely than other workers to be male, to have a lower level of education and to have fewer family dependants;
    • more prominent in eastern provinces and primary industries;
    • less likely to be unionized, to have a medical plan or to have a pension plan; and
    • more likely to expect to return to a previous employer.

Availability

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17. Interprovincial mobility and earnings

Author(s), Year

André Bernard, Ross Finnie and Benoît St-Jean, Statistics Canada, 2008

Objective(s)

This study looks at interprovincial migration longitudinally to identify factors that affect the probability that someone will move and to quantify the labour market gains associated with migration. It also compares the situations of migrants and non-migrants.

Key finding(s)

  • Factors such as personal and labour market characteristics, as well as moving costs, play a key role in mobility decisions.

Availability

This study can be found on Statistics Canada’s web site at:
http://www.statcan.gc.ca/pub/75-001-x/2008110/pdf/10711-eng.pdf.

18. Explaining Canada’s regional migration patterns

Author(s), Year

David Amirault, Daniel de Munnik and Sarah Miller, 2013

Objective(s)

The study investigated the factors that determine the migration of labour between regions.

Key finding(s)

  • Labour migration tends to increase with regional differences in employment rates and household income.
  • There is evidence that migrants respond to economic signals and are key in the stabilization process following economic shocks.
  • Language differences and provincial barriers are associated with lower labour migration.

Availability

This report is available on the Bank of Canada’s web site at:
http://www.bankofcanada.ca/wp-content/uploads/2013/05/boc-review-spring13-amirault.pdf

19. Interprovincial employment in Canada, 2002 to 2011

Author(s), Year

René Morissette and Hanqing Qiu, 2015

Objective(s)

This study was conducted to assess the extent of interprovincial paid employment for both sending provinces and receiving provinces.

Key finding(s)

  • The number of interprovincial employees has been steadily increasing since 2002, with the exception of 2009.
  • Newfoundland and Labrador, Yukon and Nunavut had the highest proportion of interprovincial employees.
  • Overall, men are significantly more likely to be interprovincial employees, as well as those under 25 years of age.

Availability

This report is available on Statistics Canada’s web site at:
http://www.statcan.gc.ca/pub/11-626-x/11-626-x2015047-eng.pdf

20. The impact of Employment Insurance (EI) regional boundary revisions on mobility in New Brunswick: Evidence from the longitudinal administrative databank

Author(s), Year

HRSDC, Evaluation Directorate, 2012

Objective(s)

This report investigates whether the change in the generosity of EI that occurred in the eastern region of New Brunswick with the revision of the EI regional boundary in 2000 affected the probability of moving out of that region.

Key finding(s)

  • The impact of the boundary revisions on the decision to move out of the eastern region was not statistically significant, which confirms that EI generosity does not seem to affect mobility decisions.

Availability

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21. Regional out-migration and commuting patterns of Employment Insurance (EI) claimants

Author(s), Year

HRSDC, Evaluation Directorate, 2012

Objective(s)

This paper compares the mobility and commuting behaviour of EI claimants living in high and low unemployment regions. The objective is to determine whether EI claimants residing in high unemployment regions were less mobile than those living in low unemployment regions and whether the mobility gap could be attributed to generosity of EI benefits.

Key finding(s)

The study suggested that EI does not impede mobility:

  • Between 2007 and 2011, about 24% of EI claimants were commuters (i.e. their home address and employer’s address were located in two different economic regions) and 7% were movers (i.e. they changed their home economic region between claims).
  • Claimants residing in high unemployment regions (unemployment rate over 12%) were less likely to move (by about 2 percentage points) and more likely to commute (by about 4 percentage points) than claimants residing in lower unemployment regions.
  • The lower likelihood of moving out of high unemployment regions could not be attributed to the longer EI entitlement provided in these regions. And only a small part of the commuting gap (about 1 percentage point) was attributed to the EI entitlement.

Availability

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22. Commuting and mobility patterns of Employment Insurance (EI) recipients and non-recipients

Author(s), Year

HRSDC, Evaluation Directorate, 2011

Objective(s)

This report investigates whether EI benefits can foster mobility by helping to finance mobility and commuting costs. It also examines the alternative hypothesis—that, by providing a safety net, EI benefits can lower the pressure to move or commute to areas where better job opportunities are available. The objective of this paper was to compare mobility and commuting patterns of EI recipients and non-recipients to shed light on these unresolved questions.

Key finding(s)

The study suggested that EI does not discourage workers from being mobile:

  • EI recipients were found to be more likely than non-EI recipients to commute 30 kilometres or more to go to work.
  • EI recipients were more likely to work outside their census subdivision of residence.
  • Also, following a job loss, EI recipients were more likely than non-EI recipients to move more than 100 kilometres away.

Availability

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23. EI payments and the GIS system

Author(s), Year

HRSDC, Evaluation Directorate, 2009

Objective(s)

This paper assesses the impact of the Guaranteed Income Support (GIS) clawback provisions on overall individual income for EI claimants. It analyzes the interaction between the EI program and the GIS system, as well as how potential changes to Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M) would affect these two programs.

Key finding(s)

  • Older workers (aged 55 and older) are generally net beneficiaries of EI regular benefits.
  • Even though workers aged 65 and older contribute more to the program than they receive in benefits, their premiums amount to only about 8% of what older workers in total contribute.
  • Workers between the ages of 55 and 64, who represent the vast majority of older workers, more than offset this by being net beneficiaries.

Availability

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24. 2016 Actuarial report on the Employment Insurance premium rate

Author(s), Year

Office of the Chief Actuary (OSFI), 2015

Objective(s)

The purpose of this report is to provide the Commission with all the information prescribed under section 66.3 of the EI Act. Pursuant to this section, the Chief Actuary shall provide the Commission with a report that sets out: i) the forecast premium rate for the upcoming year and a detailed analysis in support of the forecast; ii) the calculations performed for the purposes of sections 4, 66 and 69 of the EI Act; and iii) the source of the data, the actuarial and economic assumptions and the actuarial methodology used.

Key finding(s)

  • The 2015 Maximum Insurable Earnings (MIE) was $49,500 or a 1.8% increase from the 2014 MIE of $48,600.
  • The 2016 estimated employer premium reduction due to qualified wage-loss replacement (WLR) plans is$915 million, compared to $855 million in 2015.

Availability

This report is available on the Canada Employment Insurance Financing Board’s web site at:
http://www.osfi-bsif.gc.ca/Eng/Docs/EI2016.pdf

25. EI payroll tax refunds: The characteristics of firms benefitting from the EI Premium Reduction program 2000-2013

Author(s), Year

HRSDC, Evaluation Directorate, 2016

Objective(s)

This study describes the characteristics of firms benefitting from the EI Premium Reduction Program (PRP) over tax years 2000 to 2013.

Key finding(s)

  • In 2013, there were 26,650 employers with EI premium reductions, down from 31,040 participating employers in 2000. The decline in employer participation coincided with an increase by 21% in the number of employers in Canada. The changes in employer participation did not result in a decline in the percentage of workers covered: both the number of workers and the percentage of workers covered increased over the period. At the end of the study period, 7.1 million (34.8%) of workers had employment in firms receiving a premium reduction.
  • The larger the firm, the more likely the firm is to participate.
  • Firms that are unionized more likely to participate.
  • Most employers (between 88% and 89%) register for Category 3 plans (weekly indemnity plans with a maximum benefit period of at least 15 weeks.
  • In 2013, premium reductions were observed for one-third of firms in Public Administration and about one-fifth of firms in the Utilities sector.
  • Firms in Atlantic Canada were less likely to participate compared to firms in Ontario.
  • The small, and declining, proportion (2.2% in 2013) of all employers who participate in the PRP cover approximately one-third of workers in Canada.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

26. Evaluation of the Work-Sharing program

Author(s), Year

ESDC, Evaluation Directorate, 2015

Objective(s)

The Work-Sharing Evaluation was conducted to assess the relevance and performance of the program as well as recent program changes, both temporary and permanent, introduced in response to the 2008-2009 economic recession.

Key finding(s)

  • The changes allowed a large number of employers to avoid unnecessary layoffs when faced with a temporary downturn in business that was beyond their control, while still allowing for the necessary structural adjustments that may occur during and after a recession to take place.
  • On average between the years 2000/2001 and 2010/2011, 60% of layoffs averted during the agreement remained averted for at least 6 months, resulting in an estimated net effect of 11,189 and 24,385 layoffs averted during the years 2008/09 and 2009/10 respectively. This was an improvement over the estimated 49% of layoffs averted for 6 months during the 1990/1991 to 2001/2002 period, as documented by the 2004 Work-Sharing evaluation.
  • More than 75% of employers said that the costs of lay-offs in terms of subsequent recruiting and training would have been very substantial and that avoiding this was the principal benefit of applying to the program.
  • The evaluation found that the program’s take-up, in terms of volume of participants, followed its typical counter cyclicality pattern. However, the average agreement size increased during the recent recession, both in terms of employees claiming Work-Sharing per employer, and in terms of the average claim duration.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

27. Usage of the Work-Sharing program: 2000/01 to 2014/15

Author(s), Year

ESDC, Evaluation Directorate, 2016

Objective(s)

This report examines the usage of the Work-Sharing program from 2000/2001 to 2014/2015. Specifically, it examines the extent to which the Work-Sharing program is used, expenditures on Work-Sharing benefits, the characteristics and experiences of Work-Sharing participants, and layoffs averted by the program.

Key finding(s)

  • Work-Sharing usage and expenditures are counter-cyclical.
  • By using data on the annual number of Work-Sharing claimants and the average work reduction due to Work-Sharing agreements, it was estimated that the number of layoffs averted or postponed in 2014/2015 by the Work-Sharing program was 2,500, down from 35,500 in 2009/2010.
  • In 2014/2015, 435 Work-Sharing participants were laid-off in the 6 months following their agreement termination. The resulting estimate of net layoffs averted for 2013/2014 was 2,065.

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

28. Record of employment and accuracy of reported earnings: Firms 2005-2012

Author(s), Year

HRSDC, Evaluation Directorate, 2016

Objective(s)

Using EI administrative and CRA datasets, this study compares the reported insured earnings from 2005 to 2012 and estimates the proportion of earnings interruptions without an ROE.

Key finding(s)

  • Over the study period, earnings interruptions without an ROE dropped to 28.9% (3,086,320) in 2012 from 33.1% (3,461,895) in 2005.
  • In 2012, the highest earnings interruptions without an ROE occurred in the service sector (28.7%), firms with fewer than 100 employees (39.1%), and firms without union membership (33.1%).
  • Among provinces, the territories and British Columbia had seen a higher proportion of job separators without an ROE (44% and 33.5%).
  • Between 2001 and 2012, slightly above 80% of ROE insured earnings are within $2 variance of T4s, using a subsample where all ROEs are within a calendar year and no more than 26 weeks.
  • In 2012, the proportions of ROE insured earnings being consistent with T4s (within $2 difference) are lower with jobs in the government sector (75.6%), in firms with more than 500 employees (78.7%), and with union membership (73.3%).

Availability

A PDF version of this document can be ordered by calling 1 800 O-Canada (1-800-622-6232). If you use a TTY, call 1-800-926-9105. The PDF version can only be sent via e-mail. Please note there will be a certain delay before receiving the documents.

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