Chapter 2 - Impacts and effectiveness of Employment Insurance benefits (Part I of the Employment Insurance Act)
Official title: Employment Insurance Monitoring and Assessment Report for fiscal year beginning April 1, 2019 and ending March 31, 2020: Chapter 2: Impact and effectiveness of Employment Insurance benefits (Part I of the Employment Insurance Act)
In chapter 2
- List of abbreviations
- 2.0 Introduction
- 2.1 Employment Insurance benefits overview
- 2.2 Employment Insurance regular benefits
- 2.3 Employment Insurance support while on training
- 2.4 Employment Insurance fishing benefits
- 2.5 Employment Insurance Work-Sharing benefits
- 2.6 Employment Insurance special benefits
- 2.7 Employment Insurance financial information
List of abbreviations
This is the complete list of abbreviations for the Employment Insurance Monitoring and Assessment Report for the fiscal year beginning April 1, 2019 and ending March 31, 2020.
Abbreviations
- ADR
- Alternative Dispute Resolution
- ASETS
- Aboriginal Skills and Employment Training Strategy
- B/C Ratio
- Benefits-to-Contributions ratio
- B/U Ratio
- Benefits-to-Unemployed ratio
- B/UC Ratio
- Benefits-to-Unemployed Contributor ratio
- BDM
- Benefit Delivery Modernization
- CAWS
- Citizen Access Workstation Services
- CCAJ
- Connecting Canadians with Available Jobs
- CCDA
- Canadian Council of Directors of Apprenticeship
- CCIS
- Call Centre Improvement Strategy
- CEIC
- Canada Employment Insurance Commission
- CERB
- Canada Emergency Response Benefit
- COLS
- Community Outreach and Liaison Service
- CPI
- Consumer Price Index
- CPP
- Canada Pension Plan
- CRA
- Canada Revenue Agency
- CRF
- Consolidated Revenue Fund
- CX
- Client Experience
- EBSMs
- Employment Benefits and Support Measures
- ECC
- Employment Contact Centre
- EI
- Employment Insurance
- EICS
- Employment Insurance Coverage Survey
- EIR
- Employment Insurance Regulations
- EI SQR
- Employment Insurance Service Quality Review
- eROE
- Electronic Record of Employment
- ESDC
- Employment and Social Development Canada
- FLMM
- Forum of Labour Market Ministers
- FY
- Fiscal Year
- FY *
- Fiscal Year excluding the month of March
- G7
- Group of Seven
- GDP
- Gross Domestic Product
- HCCS
- Hosted Contact Centre Solution
- HRSDC
- Human Resources and Social Development Canada
- IQF
- Individual Quality Feedback
- IQP
- Integrated Quality Platform
- ISET
- Indigenous Skills and Employment Training
- IVR
- Interactive Voice Response
- LFS
- Labour Force Survey
- LMDA
- Labour Market Development Agreements
- LMI
- Labour Market Information
- LMP
- Labour Market Partnerships
- MAEST
- Ministry of Advanced Education, Skills and Training
- MIE
- Maximum Insurable Earnings
- MSCA
- My Service Canada Account
- MTESS
- Ministère du Travail, de l'Emploi et de la Solidarité sociale
- NAICS
- North American Industry Classification System
- NESI
- National Essential Skills Initiative
- NIS
- National Investigative Services
- NOS
- National Occupational Standards
- NWS
- National Workload System
- OAS
- Old Age Security
- OECD
- Organization for Economic Co-operation and Development
- PAAR
- Payment Accuracy Review
- PPEs
- Clients who are Premiums Paid Eligible
- P/Ts
- Provinces and Territories
- PRAR
- Processing Accuracy Review
- PRP
- Premium Reduction Program
- QPIP
- Quebec Parental Insurance Plan
- R&I
- Research and Innovation
- RAIS
- Registered Apprenticeship Information System
- ROE
- Record of Employment
- RSOS
- Red Seal Occupational Standards
- SA
- Social Assistance
- SCC
- Service Canada Centres
- SDP
- Service Delivery Partner
- SEPH
- Survey of Employment, Payrolls and Hours
- SIN
- Social Insurance Number
- SIR
- Social Insurance Registry
- SLAP
- Softwood Lumber Action Plan
- SME
- Small and medium sized enterprises
- SST
- Social Security Tribunal
- STDP
- Short-term disability plan
- SUB
- Supplemental Unemployment Benefit
- TRF
- Targeting, Referral and Feedback
- UV ratio
- Unemployment-to-vacancy ratio
- VBW
- Variable Best Weeks
- VER
- Variable Entrance Requirement
- WWC
- Working While on Claim
2.0 Introduction
This chapter of the Employment Insurance Monitoring and Assessment Report assesses income support provided by Employment Insurance (EI) Part I benefits:
- regular benefits
- fishing benefits
- Work-Sharing benefits, and
- special benefits
This chapter includes several key indicators, such as the number of new claims established, total amount paid, level of benefits, maximum duration and actual duration of benefits as well as the exhaustion of benefits. Throughout the chapter, key EI program provisions and recent changes made to the EI program are discussed. Indicators related to level of claims and level of benefits are presented for claims established within the fiscal year for which at least 1 dollar in EI benefits was paid. Indicators like maximum and actual duration are based on claims completed during the fiscal year for which at least 1 dollar was paid in EI benefits. Indicators related to amount of EI benefits paid are presented on a cash basis, which means the expenses are accounted for during the fiscal year in which they are paid. More information on the definitions of the indicators presented throughout this chapter can be found in annex 2.1 of this report.
In response to the economic and labour market disruptions due to the COVID-19 pandemic that started in March 2020, the Government of Canada introduced the Canada Emergency Response Benefit (CERB) on March 15, 2020 to provide income support for Canadians as part of Canada’s COVID-19 Economic Response Plan. The CERB provided financial support to eligible employed and self-employed Canadians who stopped working and lost their income due to COVID-19. As a result, eligible claimants who would have otherwise applied for EI regular or sickness benefits applied for CERB as of March 15, 2020 instead. Consequently, this chapter excludes data related to CERB during the FY1920 reporting period (from March 15, 2020 to March 31, 2020). This ensures continuity in the reported data on EI regular and sickness benefits from year to year and enables us to perform meaningful yearly comparisons in FY1920 with previous fiscal years. Eligible claimants who had applied for EI benefits and whose application had not been processed as of March 15, 2020 did not have to reapply for CERB and are included in the EI data estimates provided in this chapter. Furthermore, the results on amount of benefits paid cover the full period from April 1, 2019 to March 31, 2020.
This chapter relies on several sources of information to provide a comprehensive analysis of the EI program. EI administrative data, generally based on a 10% sample, underpins the majority of the analysis in this chapter. Some sections of this chapter also make use of tax data provided by the Canada Revenue Agency related to T4 tax slips with employment income or T1 returns. Statistics Canada’s Employment Insurance Coverage Survey provides the basis for deeper analysis of coverage, eligibility and access of EI benefits for unemployed people. Throughout the chapter, data for the FY1920 is compared with data from previous years and, in some instances, long-term trends are discussed.
Annex 2 of the report presents additional statistical information on benefits analyzed in this chapter and annex 7 provides an overview of major changes to the EI program between April 1996 and December 2020.
2.1 Employment Insurance benefits overview
In this section
- 2.1.1 Employment Insurance claims, amount paid and level of benefits
- 2.1.2 Combined Employment Insurance claims
- 2.1.3 Benefits-to-contributions ratios
The Employment Insurance (EI) program provides temporary income support to partially replace employment income for eligible unemployed contributors to the program while they search for work or upgrade their skills, and for those who are absent from work due to specific life circumstances. For example:
- sickness
- pregnancy
- providing care to a newborn or newly adopted child
- providing care and support to a critically ill family member, or
- providing end-of-life care to a family member with significant risk of death
In this chapter, EI benefits refer to regular benefits, special benefits, fishing benefits and Work-Sharing benefits (consult table 1). Special benefits include maternity benefits, parental benefits, sickness benefits, family caregiver benefits for adults or children, and compassionate care benefits. All EI benefit types are paid at a benefit rate of 55% of average weekly insurable earnings up to the maximum weekly benefit rate, except for extended parental benefits, which are paid at 33%. Subsection 2.1.1 covers the number of new claims established in the fiscal year, total amount paid over the fiscal year and benefit levels of claims established. Subsection 2.1.2 examines combined (or mixed) benefit claims. Subsection 2.1.3 provides an analysis of the usage of EI benefits relative to EI contribution premiums.
Benefit type | Circumstance | Insurable employment entrance requirement | Maximum entitlement |
---|---|---|---|
Regular | Unemployed with a valid reason for separation and searching for suitable employment or retraining in certain cases | 420 to 700 hours depending on the Variable Entrance Requirement | 14 to 45 weeks, depending on insurable employment and regional unemployment rate1 |
Fishing | Self-employed fishers without available work | Value of a catch between $2,500 and $4,200 depending on the Variable Entrance Requirement | 26 weeks per season (summer or winter) |
Work-Sharing | Firm avoiding layoffs during a slowdown in business activity for reasons beyond the firm’s control with a recovery plan and a Work-Sharing agreement in place | 420 to 700 hours depending on the Variable Entrance Requirement and must be a year-round employee | 6 to 26 weeks, with the possibility of an extension by 12 weeks if warranted1 |
Special2 - Maternity | Unavailable to work because of pregnancy or has recently given birth | 600 hours | 15 weeks |
Special - Parental | Caring for a newborn or a newly adopted child | 600 hours | Standard parental: 35 weeks plus 5 additional weeks when benefits are shared Extended parental (at a lower replacement rate): 61 weeks plus 8 additional weeks when benefits are shared |
Special - Sickness | Unavailable to work because of illness, injury or quarantine | 600 hours | 15 weeks |
Special - Family caregiver for children | Providing care or support to a critically ill or injured child under the age of 18 | 600 hours | 35 weeks3 |
Special - Family caregiver for adults | Providing care or support to a critically ill or injured person 18 years or older | 600 hours | 15 weeks3 |
Special - Compassionate care | Providing care to a person of any age who requires end-of-life care | 600 hours | 26 weeks3 |
- 1Temporary Work-Sharing special measures were announced to support employers affected by the downturn in the forestry sector and the steel and aluminum sector. These measures extend the duration of Work-Sharing agreements across Canada from a maximum of 38 weeks to 76 weeks. The temporary special measure for the forestry sector were in effect from July 30, 2017 to March 28, 2020. The temporary special measure for the steel and aluminum sector are in effect from August 19, 2018 to March 27, 2021.
- 2Self-employed workers (other than fishers) who have opted into EI special benefits must meet an insurable earnings threshold for the calendar year preceding the claim. The threshold was $7,121 for claims established in 2019 and $7,279 for claims established in 2020.
- 3 Benefits can be shared between eligible claimants (that is parents or family members).
2.1.1 Employment Insurance claims, amount paid and level of benefits
For the period beginning April 1, 2019, and ending March 31, 2020 (FY1920), the number of new EI claims increased by 2.7% (+50,150) to 1.87 million new claims (consult Chart 1). Total EI benefit payments increased by $817 million, or +4.9%, to $17.5 billion.
Text description of Chart 1
Fiscal year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
New claims established (millions) (left scale) | 2.165 | 1.847 | 1.884 | 1.820 | 1.792 | 1.809 | 1.925 | 1.818 | 1.816 | 1.824 | 1.874 |
Amount paid (billions) (right scale) | $19.4 | $17.3 | $15.7 | $15.2 | $15.4 | $15.8 | $17.7 | $18.5 | $18.7 | $16.7 | $17.5 |
- Note: Includes all claims for which at least $1 of Employment Insurance benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
According to Statistics Canada, there were 740,000 beneficiaries receiving EI benefits on average each month in FY1920, representing an increase of 3.1% from 717,600 beneficiaries during the previous reporting period.Footnote 1
The average weekly benefit rate increased by 3.2% from $465 in FY1819 to $480 in FY1920.Footnote 2, Footnote 3 The proportion of claimants receiving the maximum weekly benefit increased from 48.0% in FY1819 to 48.6% in FY1920.
New Employment Insurance claims established
The slight increase in the number of new EI claims observed during the reporting period is largely due to an increase in claims for regular and parental benefits (consult table 2). Fishing, maternity, and sickness claims were relatively unchanged.
Types of Employment Insurance benefit | New claims established FY1819 |
New claims established FY1920 |
New claims established Change (%) |
Amount paid ($ million) FY1819 |
Amount paid ($ million) FY1920 |
Amount paid Change (%) |
---|---|---|---|---|---|---|
Regular | 1,292,710 | 1,367,080 | 5.8% | $10,673.8 | $11,064.4 | 3.7% |
Fishing | 30,367 | 30,385 | 0.1% | $297.7 | $303.1 | 1.8% |
Work-Sharing | 3,815 | 11,046 | 189.5% | $5.7 | $16.5 | 189.5% |
Special | 606,540 | 619,270 | 2.1% | $5,796.2 | $6,150.1 | 5.6% |
Maternity | 170,010 | 167,690 | -1.4% | $1,164.1 | $1,208.1 | 3.8% |
Parental | 200,030 | 212,750 | 6.4% | $2,730.7 | $2,921.7 | 7.1% |
Sickness | 420,840 | 421,140 | 0.1% | $1,769.6 | $1,888.8 | 6.7% |
Family caregiver for children | 5,722r | 5,403 | -5.6% | $36.9r | $36.3 | -1.4% |
Family caregiver for adults | 11,365r | 11,592 | 2.0% | $49.1r | $55.7 | 15.3% |
Compassionate care | 8,385 | 7,581 | -9.6% | $45.8 | $39.6 | -13.5% |
Canada | 1,824,330 | 1,874,480 | 2.7% | $16,685.3 | $17,502.7 | 4.9% |
- Notes: Totals may not add up due to rounding. Includes all claims for which at least $1 of Employment Insurance benefits was paid. The sum of claims by benefit type does not add up as multiple benefit types can be combined in 1 single claim.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a sample of 10% of the EI administrative data, except for family caregiver, Work-Sharing and compassionate care benefits as well as claims for fishing benefits (100%).
The Atlantic provinces and territories all experienced declines in the number of new EI claims established between FY1819 and FY1920 while the rest of the provinces recorded increases. Ontario (+5.2%), Saskatchewan (+5.7%), British Columbia (+6.0%) and Alberta (+6.1%) recorded the largest increases over the reporting period (consult table 3).
Category | New claims established FY1819 |
New claims established FY1920 |
New claims established change (%) |
Amount paid FY1819 |
Amount paid FY1920 |
Amount paid change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 86,070 | 81,790 | -5.0% | $1,022.9 | $992.5 | -3.0% |
Prince Edward Island | 22,480 | 21,770 | -3.2% | $231.1 | $226.0 | -2.2% |
Nova Scotia | 84,570 | 82,540 | -2.4% | $845.1 | $851.3 | 0.7% |
New Brunswick | 89,820 | 89,380 | -0.5% | $869.6 | $925.1 | 6.4% |
Quebec | 473,060 | 475,220 | 0.5% | $3,106.0 | $3,210.3 | 3.4% |
Ontario | 556,900 | 585,670 | 5.2% | $5,240.4 | $5,680.5 | 8.4% |
Manitoba | 64,020 | 64,780 | 1.2% | $619.2 | $631.2 | 1.9% |
Saskatchewan | 54,210 | 57,280 | 5.7% | $624.7 | $639.3 | 2.3% |
Alberta | 188,870 | 200,450 | 6.1% | $2,171.0 | $2,266.4 | 4.4% |
British Columbia | 198,240 | 210,060 | 6.0% | $1,878.1 | $2,004.3 | 6.7% |
Yukon | 2,310 | 2,300 | -0.4% | $25.0 | $26.0 | 3.7% |
Northwest Territories | 2,310 | 2,030 | -12.1% | $31.1 | $29.7 | -4.6% |
Nunavut | 1,470 | 1,210 | -17.7% | $21.0 | $20.0 | -4.3% |
Male | 988,250 | 1,018,710 | 3.1% | $8,416.6 | $8,833.7 | 5.0% |
Female | 836,080 | 855,770 | 2.4% | $8,268.7 | $8,669.0 | 4.8% |
24 years old and under | 170,480 | 171,760 | 0.8% | $1,284.6 | $1,302.6 | 1.4% |
25 to 44 years old | 882,780 | 914,700 | 3.6% | $9,038.7 | $9,554.9 | 5.7% |
45 to 54 years old | 352,640 | 352,040 | -0.2% | $2,883.7 | $2,915.8 | 1.1% |
55 years old and over | 418,430 | 435,980 | 4.2% | $3,478.3 | $3,729.3 | 7.2% |
Canada | 1,824,330 | 1,874,480 | 2.7% | $16,685.3 | $17,502.7 | 4.9% |
- Notes: Totals may not add up to the total due to rounding. Includes claims for which at least $1 of EI benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a sample of 10% of the EI administrative data.
The number of new claims established by both men and women increased during FY1920. Men established 54.3% of all new claims. Levels of new EI claims only slightly decreased for workers aged 45 to 54 years old (-0.2%) while increasing for all other age groups.
Total amount paid in Employment Insurance benefits
The amount paid for all types of EI benefits combined reached $17.5 billion in FY1920, an increase of $817 million or +4.9%. This increase was largely attributable to the increase in the amount paid in EI regular benefits ($390.6 million or +3.7%). The share of EI benefits paid by benefit type remains relatively unchanged compared to the previous reporting period.
Text description of Chart 2
Benefit type | $ million | % share |
---|---|---|
Regular benefits | $11,064.4 | 63.2% |
Work-Sharing benefits | $16.5 | 0.1% |
Fishing benefits | $303.1 | 1.7% |
Special benefits | $6,119.6 | 35.0% |
Parental benefits | $2,921.7 | 16.7% |
Sickness benefits | $1,888.8 | 10.8% |
Maternity benefits | $1,208.1 | 6.9% |
Compassionate care and Family caregiving benefits | $131.6 | 0.8% |
- *The total amount paid reported in Chart 2 does not correspond to the total reported in table 2 and 3 because data on compassionate care benefits and family caregiver benefits can only be reported on a 100% sampling basis on an aggregate level.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a sample of 10% of the EI administrative data, except for Work-Sharing, family caregiver and compassionate care benefits (100%).
The amount paid in EI benefits increased in all but 4 provinces and territories: Newfoundland and Labrador (-3.0%), Prince Edward Island (-2.2%), Northwest Territories (-4.6%), and Nunavut (-4.3%) (consult table 3).
EI benefits received by both men and women increased from the previous fiscal year, with both experiencing similar growth (+5.0% and +4.8%, respectively). The amount paid in EI benefits also increased for each age group. Claimants aged 25 to 44 years old and those aged 55 years old and over saw particularly large increases (+5.7% and +7.2%, respectively).
Levels of benefits
For all claims, excluding those for extended parental benefitsFootnote 4, the average weekly benefit rate increased by 3.2% nationally to $480 over the reporting period (consult annex 2.3.2). This rise is higher than the 2.1% increase in maximum insurable earnings from 2019 to 2020 (consult section 2.7). All provinces and territories recorded increases. Nunavut had the highest average weekly benefit rate ($542), while Nova Scotia posted the lowest average rate ($453).
Nunavut also had the highest proportion of claimants receiving the maximum weekly benefit rate (85.0%) for FY1920, while Prince Edward Island and New Brunswick maintained their positions with the lowest proportions of claimants receiving the maximum rate (36.1% and 35.6%, respectively).
Northwest Territories, as in the last reporting period, had the highest proportion of claimants receiving the maximum weekly benefit rate (85.0%) for FY1920, while Prince Edward Island and New Brunswick also maintained their positions with the lowest proportions of claimants receiving the maximum rate (36.1% and 35.4%, respectively).
The average weekly benefit rate increased for male and female claimants to $506 and $448, respectively. Men were, once again, proportionally more likely to receive the maximum weekly benefit rate (60.4%) compared to women (34.1%) in FY1920.
The average weekly benefit rate also increased for all age groups compared to FY1819. Claimants aged 25 to 44 still received the highest average weekly benefit rate ($493) and were more likely to collect the maximum weekly benefit rate (53.5%). Claimants under 25 years of age received, on average, the lowest amount of weekly benefits ($434), and only 30.3% of them received the maximum weekly benefit rate in FY1920.
Calculating the weekly benefit rate: Variable Best Weeks (VBW)
Under the VBW provision the weekly benefit rate is calculated based on an EI claimant’s highest (best) weeks of insurable earnings during the qualifying period. The number of weeks used to calculate the weekly benefit rate ranges from 14 to 22, depending on the monthly regional unemployment rate
Unemployment rate* | Number of weeks |
---|---|
6.0% and under | 22 |
6.1% to 7.0% | 21 |
7.1% to 8.0% | 20 |
8.1% to 9.0% | 19 |
9.1% to 10.0% | 18 |
10.1% to 11.0% | 17 |
11.1% to 12.0% | 16 |
12.1% to 13.0% | 15 |
More than 13.0% | 14 |
- *The monthly regional unemployment rates used for the EI program are a moving average of seasonally adjusted rates of unemployment produced by Statistics Canada, as per section 17 of the Employment Insurance Regulations.
Supplemental Unemployment Benefit plans
While the temporary support from EI benefits provide an income floor for unemployed workers, employers can use a Supplemental Unemployment Benefit (SUB) plan to increase their employees’ weekly earnings when they are unemployed due to a temporary stoppage of work, training, illness, injury or quarantine. These SUB plans need to be registered with Service Canada so that supplemental payments (or top-ups) are not considered as earnings and are not deducted from EI benefits.* A recent departmental study** examined the characteristics of employers and employees with SUB plans, and their pattern of utilization of the EI program.
From 2008 to 2017, an annual average of over 6,800 firms (0.5% of all firms in Canada) had active SUB plans, increasing over time. Around 63% of these plans were for illness, injury or quarantine, while plans for temporary stoppage of work, training and plans consisting of a combination of top-up plans accounted for around 10%, 7% and 20% respectively. Firms offering SUB plans were generally larger in size and more likely to be associated with the services industries.
Overall, EI claims that receive top-up payments through SUB plans constituted between 40,000 and 60,000 claims per year (around 3% of all EI claims). Most of these claims were for EI regular benefits, followed by claims for EI sickness benefits.
When firms offering SUB plans are compared with firms having similar characteristics but that do not offer SUB plans, results showed that the average number of EI claims and number of claims per worker were higher for firms offering SUB plans. However, EI claimants from firms offering SUB plans had shorter duration of EI benefits and lower EI exhaustion rates.
One of the main rationales behind a firm offering a SUB plan to their employees is to maintain the employee-employer relationship and facilitate employee retention. When comparing regular benefit claimants who previously worked in firms offering SUB plans, those who received SUB top-ups were more likely to return to the same firm after a claim compare to those who did not receive top-ups.***
- * Employers who provide supplemental payments to maternity, parental (including adoption) or caregiving benefits (including compassionate care, family caregiver benefit for children and family caregiver benefit for adults) do not have to register their plans with Service Canada. Those plans were not included in the study.
- ** ESDC, Supplemental Unemployment Benefit Plans (Ottawa: ESDC, Evaluation Directorate, 2021).
- *** The study found that among all EI claimants within SUB firms, only 13% received a top-up payment over the period examined. This suggests that not all employees in a given firm are entitled to SUB payments.
Family supplement provision
The Family supplement provision, which targets low-income families, provides additional benefits to EI claimants with children under the age of 18 who have an annual family net income equal to or less than $25,921. The claimant must also receive the Canada Child Benefit. Under the Family supplement provision, which is available to claims in all benefit types, the weekly amount of family supplement can increase a claimant’s benefit rate from 55% to a maximum of 80% of his or her weekly insurable earnings, subject to the maximum weekly benefit. The supplement provided to eligible claimants is determined by the claimant’s family net income, the number of children in the claimant’s family, and the age of the claimant’s children.Footnote 5
In FY1920, low-income families received a total of $70.1 million in additional benefits through the Family Supplement provision. A total of 65,910 claims received the family supplement in FY1920, a decrease of 9.6% from FY1819. The number of EI claims receiving the family supplement has now decreased for 18 consecutive years from a high of 187,300 claims in FY0102. This decrease can be explained by the fact that the eligibility threshold has not been indexed over time, as well as by changes in family composition and wage growth. Women (80.8%) and claimants aged 25 to 44 (73.5%) continue to be the main demographic groups benefitting from the Family Supplement provision. The average weekly family supplement was $45 in FY1920 and has remained relatively unchanged over the years (consult annex 2.23 for more statistics on the Family Supplement provision).
2.1.2 Combined Employment Insurance claims
Under certain provisions of the EI program, a claimant may receive multiple types of benefits as part of a single claim, assuming that the claimant meets each benefit type’s eligibility requirements.Footnote 6 A “pure” claim is one in which an EI claimant receives a single benefit type, while a “combined” claim is one in which the claimant receives more than 1 benefit type. Pure claims represented 80.3% of all completed claims in FY1920 (consult table 4).
Benefit type* | Number of total claims ('000s) | Number of pure claims ('000s) | Share of pure claims (%) | Number of combined claims ('000s) | Share (%) | Benefit type most often combined with (share of combined claims) |
---|---|---|---|---|---|---|
Regular | 1,312.4 | 1,133.4 | 86.4% | 179.0 | 13.6% | Sickness (93.0%) |
Fishing | 27.8 | 24.0 | 86.3% | 3.8 | 13.7% | Sickness (87.9%) |
Work-Sharing | 3.9 | 2.9 | 76.1% | 0.9 | 23.9% | Regular (70.7%) |
Maternity | 166.4 | 2.0 | 1.2% | 164.4 | 98.8% | Parental (98.4%) |
Parental** | 208.0 | 40.9 | 19.6% | 167.2 | 80.4% | Maternity (96.8%) |
Sickness | 422.6 | 222.9 | 52.7% | 199.7 | 47.3% | Regular (83.8%) |
Compassionate care | 7.3 | 4.2 | 57.4% | 3.1 | 42.6% | Sickness (67.3%) |
All claims*** | 1,780.6 | 1,430.2 | 80.3% | 350.4 | 19.7% | n/a |
- Note: Data may not add up to the total due to rounding. Includes claims for which at least $1 of EI benefits was paid. The sum of claims by benefit type for the “Total claims” and “Combined claims” columns does not add up to the total because more than 1 benefit type can be part of the same claim. This does not apply to pure claims that include only 1 benefit type
- * Excludes Family Caregiver Benefits for children and adults.
- ** Parental benefits include benefits for biological parents and adoptive parents.
- *** The total number of claims is based on claims completed during the fiscal year. This explains why the total number of claims here is different from the total numbers of claims in tables 2 and 3 which are based on established claims.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Women were more likely to claim more than 1 type of EI benefit (29.8%) than men (11.0%) mostly due to their high probability of claiming both maternity and parental benefits.
In fact, maternity benefits were the benefits most often combined with other types of benefits, usually parental benefits. However, a significant proportion also claimed sickness benefits with maternity benefits (16.9%), resulting in the claimant starting her leave before becoming eligible for maternity benefits (available 12 weeks prior to the child’s expected date of birth).Footnote 7 The combination of maternity, parental and sickness benefits was the most common among claims with 3 or more benefit types (26,400 claims representing 15.9% of completed claims for maternity benefits in FY1920).
Claims for parental benefits were combined at a slightly lower rate than maternity, as only 10.6% of men who claimed parental also received another benefit payment. Of those male claimants, 87.0% received regular benefits and 15.2% claimed sickness benefits. Among women, virtually all (99.5%) who combined parental benefits with other types of benefits combined them with maternity benefits.
Sickness benefits were the third most likely to be combined with other benefit types, mostly with regular benefits. Men combined their sickness benefits predominantly with regular benefits (96.2%), while sickness claims from women were most often combined with regular (71.0%), maternity (27.4%) and parental benefits (26.1%). Sickness also represented the greatest share of combined regular claims.
When combined, compassionate care benefits are most often shared with sickness benefits (67.3%) or regular benefits (46.8%). Men tended to combine compassionate care benefits with regular benefits (62.6%) more often than women (40.3%). Women were most likely to combine compassionate care benefits with sickness benefits (72.9%) compared to men (53.8%).
Almost a quarter of all work-sharing claims were combined with other benefit types (23.9%), predominantly regular benefits. This is attributable to the fact that both benefit types are typically used during a downturn in business activity, which increases the risk of layoffs (work-sharing benefits) and actual layoffs (regular benefits). Regular benefits are usually claimed following work-sharing benefits, reflecting a continued downturn in a participating firm’s activity that eventually leads to a downsizing of the firm’s labour force.
While fishers do have the possibility of sharing fishing benefits with other benefit types (under some restrictions), only 13.7% of fishing claims were combined claims. Of those claims, 87.9% were combined with sickness benefits. No fishing claims were shared with maternity, parental, compassionate care or Work-Sharing benefits during the reporting period.
2.1.3 Benefits-to-contributions ratios
The benefits-to-contributions ratio (B/C ratio) is a measure of EI benefits paid by the program as a share of the contributions paid. It provides an estimate of the use of the EI program by claimants compared to the premiums paid. This section examines 2 different ratios: the total benefits-contributions ratio (total B/C ratio) and the regular benefits-contributions ratio (regular B/C ratio) for 2018.Footnote 8 As EI contributions are not assigned to a specific benefit type, the regular B/C ratio accounts for reductions in EI contributions related to special benefits.Footnote 9
This subsection presents adjusted ratios that are normalized, with Canada’s ratio set at 1.0. This provides a benchmark for examining the ratios based on certain sociodemographic characteristics. An adjusted ratio higher than 1.0 means that the underlying sub-population (such as province, territory, or industry) is a net beneficiary of the EI program, while those with an adjusted ratio lower than 1.0 are net contributors to the program relative to Canada as a whole.
ProvincesFootnote 10 with high numbers of seasonal claimants generally exhibit adjusted total B/C ratios that are above the national average. In 2018, Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick received more in EI benefits than they contributed, when compared to the national average (consult chart 3), highlighting these provinces’ greater usage of regular benefits compared to other regions. On the other hand, Ontario, Manitoba and British Columbia received fewer EI benefits and regular benefits per dollar contributed in premiums than the national average.
Text description of Chart 3
Region | Adjusted total benefits-to-contributions ratio (left scale) | Adjusted regular benefits-to-contributions ratio (left scale) | Adjusted total benefits-to-contributions ratio for Canada (1.0) (left scale) | Unemployment rate (right scale) |
---|---|---|---|---|
Newfoundland and Labrador | 4.50 | 6.01 | 1.0 | 13.8 |
Prince Edward Island | 3.42 | 3.73 | 1.0 | 9.5 |
Nova Scotia | 1.98 | 2.28 | 1.0 | 7.6 |
New Brunswick | 2.48 | 2.91 | 1.0 | 8.0 |
Quebec | 1.03 | 1.12 | 1.0 | 5.5 |
Ontario | 0.77 | 0.67 | 1.0 | 5.6 |
Manitoba | 0.99 | 0.94 | 1.0 | 6.0 |
Saskatchewan | 1.17 | 1.20 | 1.0 | 6.2 |
Alberta | 0.97 | 0.96 | 1.0 | 6.6 |
British Columbia | 0.81 | 0.69 | 1.0 | 4.7 |
Yukon | 0.82 | 0.98 | 1.0 | 3.0 |
Northwest Territories | 0.93 | 1.02 | 1.0 | 7.4 |
Nunavut | 0.89 | 0.79 | 1.0 | 14.1 |
- Sources: Canada Revenue Agency (CRA), T4 slips with employment income (for data on contributions); Employment and Social Development Canada (ESDC), Employment Insurance (EI) administrative data (for data on benefits); and Statistics Canada, Labour Force Survey, Tables 14-10-0287-01 and 14-10-0292-01 (for data on unemployment rates). CRA data are based on a 10% sample of T4 slips with employment income, and ESDC data are based on a 10% sample of EI administrative data.
In 2018, women continued to receive more in EI benefits than they contributed in premiums compared to male claimants, with adjusted total B/C ratios of 1.10 and 0.92 respectively (consult table 5). Women aged 25 to 44 in particular receive more in benefits than they contribute with an adjusted total B/C ratio of 1.52, compared to women aged 45 to 54 with the lowest ratio (0.66) among women. This is likely due to the fact that women aged 25 to 44 claim maternity and/or parental benefits – their adjusted regular B/C ratio is much lower at 0.66.
Age category | Adjusted total B/C ratio for men | Adjusted total B/C ratio for women | Adjusted total B/C ratio | Adjusted regular B/C ratio for men | Adjusted regular B/C ratio for women | Adjusted regular B/C ratio |
---|---|---|---|---|---|---|
24 years old and under | 1.05 | 0.85 | 0.96 | 1.29 | 0.50 | 0.94 |
25 to 44 years old | 0.84 | 1.52 | 1.14 | 1.08 | 0.66 | 0.89 |
45 to 54 years old | 0.82 | 0.66 | 0.74 | 1.10 | 0.81 | 0.97 |
55 years old and over | 1.13 | 0.79 | 0.98 | 1.54 | 1.02 | 1.31 |
Total | 0.92 | 1.10 | 1.00 | 1.20 | 0.76 | 1.00 |
- Sources: Canada Revenue Agency (CRA), T4 slips with employment income (for data on contributions); Employment and Social Development Canada (ESDC), Employment Insurance (EI) administrative data (for data on benefits). CRA data are based on a 10% sample of T4 slips with employment income, and ESDC data are based on a 10% sample of EI administrative data.
With respect to regular B/C ratios, the gender gap is reversed: men (ratio of 1.20) received more EI regular benefits than they contributed compared to women (ratio of 0.76). This is true for all age groups.
In 2018 claimants working in goods-producing industries were net beneficiaries of EI benefits with adjusted B/C ratios above the national average, while those in service-producing industries were, overall, net contributors (consult chart 4). The greater use of EI regular benefits by workers in goods-producing industries compared to those in service-producing industries may be related to the higher proportion of seasonal employment in these industries, particularly the construction and the agriculture, forestry, fishing and hunting industries. The difference between the adjusted B/C ratios of goods-producing industries compared to those of service-producing industries is smaller for the total B/C ratio. This may be explained in part by the fact that certain industries, such as the health care and social assistance industry and the educational services industry, have a large proportion of female workers who can claim maternity or parental benefits.
Text description of Chart 4
Industry | Adjusted total benefits-to-contributions ratio | Adjusted regular benefits-to-contributions ratio |
---|---|---|
Goods-producing industries | 1.52 | 1.87 |
Agriculture, forestry, fishing and hunting | 4.10 | 3.84 |
Mining and oil and gas extraction | 1.11 | 1.47 |
Utilities | 0.44 | 0.39 |
Construction | 2.34 | 3.32 |
Manufacturing | 0.80 | 0.88 |
Services-producing industries | 0.84 | 0.73 |
Wholesale trade | 0.70 | 0.74 |
Retail trade | 0.82 | 0.74 |
Transportation and warehousing | 0.84 | 0.92 |
Finance and insurance | 0.57 | 0.32 |
Real estate and rental and leasing | 0.93 | 0.97 |
Professional, scientific and technical services | 0.74 | 0.72 |
Business, building and other support services* | 1.13 | 1.27 |
Educational services | 0.98 | 0.92 |
Health care and social assistance | 0.83 | 0.35 |
Information, culture and recreation** | 0.85 | 0.92 |
Accommodation and food services | 1.12 | 1.11 |
Other services (except public administration) | 0.99 | 0.99 |
Public administration | 0.69 | 0.46 |
Canada | 1.00 | 1.00 |
- * Includes management of companies and enterprises and administrative support, waste management and remediation services.
- ** Includes information and cultural industries and arts, entertainment and recreation services. Sources: Canada Revenue Agency (CRA), T4 slips with employment income (for data on contributions); Employment and Social Development Canada (ESDC), Employment Insurance (EI) administrative data (for data on benefits). CRA data are based on a 10% sample of T4 slips with employment income, and ESDC data are based on a 10% sample of EI administrative data.
Implicit income redistribution and the Employment Insurance program
Due to differences in income support provided by the EI program across socio-economic sub-populations, the program can act as an implicit income redistribution mechanism in Canada, providing greater income support (relative to contributions) to individuals in the lower part of the income distribution as compared to those with greater earnings. A 2012 evaluation study* showed that the benefit and contribution aspects of the program tend to be redistributive and that the impact of the program on the redistribution of earnings increased substantially during the late 2000s recession.
Moreover, a study on the financial impact of receiving EI benefits** concluded that the EI program has a considerable positive income redistribution effect, with lower income families having a higher adjusted total benefits-to-contributions ratio than higher income families. In fact, families with after-tax incomes below the median received 34% of total EI benefits and paid 18% of all premiums, representing an adjusted total benefits-to-contributions ratio of close to 2.0.
- *Ross Finnie and Ian Irvine, The Redistributional Impact of Employment Insurance 2007 to 2009 (Ottawa: HRSDC, Evaluation Directorate, 2013).
- **Constantine Kapsalis, Financial Impacts of Receiving Employment Insurance (Ottawa: Data Probe Economic Consulting Inc., 2010).
2.2 Employment Insurance regular benefits
In this section
- 2.2.1 Employment Insurance regular claims and benefits paid
- 2.2.2 Coverage, eligibility and access to Employment Insurance regular benefits for the unemployed population
- 2.2.3 Level of Employment Insurance regular benefits
- 2.2.4 Employment Insurance regular benefit entitlement
- 2.2.5 Employment Insurance regular benefits and seasonal claimants
- 2.2.6 Exhaustion of Employment Insurance regular benefits
- 2.2.7 Working while on claim
Employment Insurance (EI) regular benefits are designed to provide temporary income support to partially replace lost employment income for eligible claimants while they search for work or upgrade their skills.
In response to the economic and labour market disruptions due to the COVID-19 pandemic that started in March 2020, the Government of Canada introduced the Canada Emergency Response Benefit (CERB) on March 15, 2020 to provide income support for Canadians as part of Canada’s COVID-19 Economic Response Plan. The Canada Emergency Response Benefit (CERB) provided financial support to eligible employed and self-employed Canadians who stopped working and lost their income due to COVID-19. As a result, eligible claimants who would have otherwise applied for EI regular or sickness benefits applied for CERB as of March 15, 2020 instead. Consequently, the section on EI regular benefits in this year’s report excludes data related to CERB during the FY1920 reporting period (from March 15, 2020 to March 31, 2020). This ensures continuity in the reported data on EI regular benefits from year to year and enables to perform meaningful yearly comparisons in FY1920 with previous fiscal years. Eligible claimants who had applied for EI benefits and whose application had not been processed as of March 15, 2020 did not have to reapply for CERB and are included in the EI data estimates provided in this section. Furthermore, the results on amount of benefits paid out cover the full period from April 1, 2019 to March 31, 2020.
In order to qualify for EI regular benefits, unemployed individuals have to meet the following 3 eligibility criteria:
- the claimant must have had insurable employment and paid EI premiums during the qualifying period (defined as either the previous 52 weeks or since the establishment of their last claim, whichever is shorter)
- have a valid reason for job separation according to the Employment Insurance Act
- have worked a minimum number of insurable hours (ranging from 420 and 700 hours, depending on the regional unemployment rate where the claimant lived at the time of the claim) during the qualifying period
In addition to meeting these 3 eligibility criteria, claimants must also be available for and actively seeking suitable employment while claiming benefits.Footnote 11
2.2.1 Employment Insurance regular claims and benefits paid
The number of EI regular claims established increased by 5.8% in the reporting fiscal year, increasing from 1.29 million claims established in FY1819 to 1.37 million claims established in FY1920. This marks an increase in the number of EI regular claims established after decreasing for the past 3 consecutive years (consult chart 5). The increase in the total number of EI regular claims established in FY1920 was mostly attributable to increases in Ontario (+30,300 claims), Quebec (+16,000 claims), British Columbia (+14,900 claims) and Alberta (+13,500 claim).
The total amount of EI regular benefits paid increased by 3.7% in the reporting fiscal year, increasing from $10.7 billion in FY1819 to $11.1 billion in FY1920. This marks an increase in the total amount paid in EI regular benefits after decreasing for the past 2 consecutive years (consult chart 5). The increase in the total amount of EI regular benefits paid in FY1920 is partly attributable to the pilot project that provided additional weeks of EI regular benefits to seasonal claimants in 13 EI economic regionsFootnote 12.
Text description of Chart 5
Fiscal year | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Regular claims (millions) (left scale) | 1.40 | 1.42 | 1.36 | 1.33 | 1.34 | 1.43 | 1.32 | 1.30 | 1.29 | 1.37 |
Amount paid ($ billions) (right scale) | $12.8 | $11.1 | $10.5 | $10.4 | $10.6 | $12.1 | $12.7 | $12.6 | $10.7 | $11.1 |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The number of new claims established tends to be influenced by labour market conditions and overall economic cycles, as well as initiatives (such as EI pilot projects). During periods of economic growth and robust labour market conditions, fewer claims for EI regular benefits are established, while the opposite is true during periods of economic stagnation and unfavourable labour market conditions. This is evident in chart 5—over the last decade, the number of new claims established was the highest at 1.43 million in FY1516 following the economic slowdown due to the downturn in commodity prices. Similar increases in the number of new EI regular claims were observed following the recession in FY0809. As discussed in Chapter I, the Canadian economy experienced a slowdown in growth in FY1920 as GDP increased by 1.4% compared to the previous year. Meanwhile, for the period of April 1, 2019 to February 29, 2020,Footnote 13 the labour force increased by 1.9% and the unemployment rate declined by 0.2 percentage points from the previous fiscal year. Despite the overall favourable economic and labour market conditions observed for most of the fiscal year in FY1920, the increase in the number of EI regular claims was mostly in the last quarter of the year, attributable to the rising unemployment rates in February 2020.Footnote 14 In addition, a particularly high number of EI regular claims were also established in the first 2 weeks of March 2020 (that is, the period in March 2020 for which data on EI regular benefits is included in this report), likely reflecting the effect of the COVID-19 pandemic before CERB came into effect on March 15, 2020.Footnote 15
On average, there were 459,900 beneficiaries receiving EI regular benefits each month in FY1920, up from 453,400 (+1.4%) in the previous fiscal year.Footnote 16 Because the number of beneficiaries is based on previously established claims, these 2 measures generally trend in the same direction, with the count of beneficiaries usually lagging behind the number of new claims established. To illustrate this, suppose there is an increase in the number of claims established for EI regular benefits after an economic shock. The number of beneficiaries will increase following the increase in claims. However, the count of beneficiaries can still remain elevated even after the volume of new claims have subsided once the labour market conditions improve, as payments continue to be made on previously established claims until benefits are exhausted or the claimants have found employment. In FY1920, the number of beneficiaries of EI regular benefits decreased from the previous year, despite the increase in the number of EI regular claims established during this period. The effect of the increase in the number of claims established will likely be reflected on the number of beneficiaries in the next reporting period.
Characteristics of EI regular benefits claimants with separation monies
Following a job separation, by no fault of the employees, workers are entitled to separation monies that are paid to compensate for a variety of reasons; including the loss of wages, other benefits related to employment, unused entitlement to certain benefits under the terms of employment and as a form of recognition for years of service. The addition of separation monies earned from a temporary or permanent layoff has an effect on the utilization of the EI program because the majority of these payments are considered earnings from employment. In some cases, individuals do not receive EI because the allocation of their separation monies do not allow for an interruption in earnings to occur. In other cases, individuals do not apply for EI knowing that they will end up not receiving benefits.
A recent departmental study* looked into the characteristics of claimants for EI regular benefits who received severance/vacation monies** between 2009 and 2018. The study found a general downward trend in the incidence of EI regular benefits claimants receiving severance/vacation monies during this period. This downward trend was observed in all provinces and territories, in all age groups and genders, in claimants from all industries and among all claimant types.
Among claimants, those in Atlantic Canada were much less likely to receive severance/vacation payments than those in the rest of the country. This is mainly because claimants in Atlantic Canada are much more likely to be seasonal claimants (on a temporary layoff) and the fact that temporary layoffs generally do not require payment of monies on separation. Other factors contributing to the variation across jurisdictions are differences in provincial/territorial employment legislation and differences in the composition of industries, such that the maximum severance pay in Western provinces is twice the maximum severance pay in Atlantic provinces. Claimants in the Atlantic provinces also had more variation among themselves in terms of age and gender in the likelihood of receiving severance/vacation monies. These claimants, along with those in Quebec, received relatively lower amounts of severance/vacation monies compared to their counterparts in Ontario and Western Canada, likely due to the higher average wages in the latter regions. Women were more likely to receive severance/vacation monies than men, although on average they received comparatively lower amounts, corresponding to the lower average employment income earned by them. Variations in the likelihood of receiving severance/vacation monies were also found across industries of previous work—over 50% of claimants who had worked in the Information and cultural industries or in the Finance and insurance industry received separation/vacation monies, whereas less than 15% of claimants who had worked in the Agriculture, forestry, fishing and hunting industry or in the Construction industry received these monies. In addition, claimants who received separation/vacation monies were more likely to be long-tenured workers or occasional claimants***, have longer entitlements for EI regular benefits and comparatively higher exhaustion rates.
- * ESDC, Characteristics and Trends of EI Regular Benefits Claimants and Claims With Separation Monies (Ottawa: ESDC, Employment Insurance Policy Directorate, 2021).
- ** The study focused on these two types of separation monies as they accounted for around 72% of all separation monies received by EI regular benefit claimants during the period considered.
- *** See Annex 2.1 for the definitions of EI claimant categories.
Employment Insurance regular claims and amount paid by province or territory, gender and age
As illustrated in chart 6, the number of claims established for EI regular benefits increased in all provinces except for Newfoundland and Labrador (-5.5%) and Prince Edward Island (-4.4%) in FY1920 compared to the previous year. The number of EI regular claims established increased slightly in Yukon (+2.4%), while it decreased in the other 2 territories during this period. Among provinces and territories, the most significant relative changes in the number of EI regular claims in FY1920 were observed in Nunavut (-14.4%) and British Columbia (+12.4%).
The total amount paid in EI regular benefits increased in all provinces with the exception of Newfoundland and Labrador (-5.0%), Prince Edward Island (-3.0%) and Nova Scotia (-1.1%), and stayed relatively unchanged in Manitoba (-0.1%). Yukon and Nunavut both saw an increase in the total amount paid in EI regular benefits (+2.7% and 4.0%, respectively), while it decreased in the Northwest Territories (-8.7%) (consult chart 6). Similarly to previous years, Ontario and Quebec continued to account for more than half (58.1%) of total EI regular claims established, and just over half (50.9%) of the total amount paid in EI regular benefits in the reporting period.
Text description of Chart 6
Province/territory | % Change claims established | % Change amount paid |
---|---|---|
Newfoundland and Labrador | -5.5% | -5.0% |
Prince Edward Island | -4.4% | -3.0% |
Nova Scotia | 0.5% | -1.1% |
New Brunswick | 0.6% | 7.6% |
Quebec | 4.2% | 1.7% |
Ontario | 8.3% | 8.5% |
Manitoba | 0.7% | -0.1% |
Saskatchewan | 8.6% | 3.3% |
Alberta | 10.6% | 1.7% |
British Columbia | 12.4% | 8.1% |
Yukon | 2.4% | 2.7% |
Northwestern Territories | -3.8% | -8.7% |
Nunavut | -14.4% | 4.0% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Table 6 outlines the number of EI regular claims established and the total amount paid by gender and age groups in FY1920 and the previous year (FY1819). The number of new claims established by both men and women increased during this period. Similar to previous years, men accounted for around 3 in every 5 (60.8%) EI regular claims in the reporting period. The total amount paid in EI regular benefits to men and women had similar relative increases in FY1920 from the previous year (+3.9% and +3.2%, respectively). In FY1920, men accounted for the nearly two-thirds (66.4%) of the total amount paid in EI regular benefits. This share has remained relatively stable in recent years as well.
Both the number of new EI regular claims established and the total amount paid increased in FY1920 compared to the previous year across all age groups. Younger claimants (aged below 25 years) had the highest increase (+8.0%) in the number of EI regular claims during this period. In terms of total amount paid in EI regular benefits, older claimants (aged over 54 years) had the highest increase (+6.0%) in FY1920 from FY1819. Similar to the previous years, claimants who were aged between 25 and 44 years continued to account for the largest shares of new regular claims (44.1%) and total amount paid (43.2%) in FY1920, while the smallest shares were for younger claimants aged less than 25 years (9.0% of claims and 8.5% of amount paid, respectively).
Category | Number of claims FY1819 |
Number of claims FY1920 |
Number of claims Change (%) |
Amount paid ($ million) FY1819 |
Amount paid ($ million) FY1920 |
Amount paid Change (%) |
---|---|---|---|---|---|---|
Men | 791,220 | 830,770 | +5.0% | $7,072.5 | 7,348.8 | +3.9% |
Women | 501,490 | 536,310 | +6.9% | $3,601.3 | 3,715.6 | +3.2% |
24 years old and under | 113,780 | 122,860 | +8.0% | $922.7 | 939.3 | +1.8% |
25 to 44 years old | 568,800 | 603,290 | +6.1% | $4,585.2 | 4,783.1 | +4.3% |
45 to 54 years old | 278,900 | 286,640 | +2.8% | $2,335.9 | 2,342.4 | +0.3% |
55 years old and over | 331,230 | 354,290 | +7.0% | $2,830.0 | 2,999.6 | +6.0% |
Canada | 1,292,710 | 1,367,080 | +5.8% | $10,673.8 | 11,064.4 | +3.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
One notable trend that has been observed over the past few years is that, while the shares of new claims established by different age groups has been relatively stable, the share of new claims established by older claimants aged 55 years and over has increased slowly but steadily over the past several years. The trends observed for older claimants are likely attributable in part to Canada’s aging population and the labour force composition. Individuals in this age category accounted for 21.6% of the labour force in FY1920, up from 16.1% in FY0910, representing a 5.5 percentage points increase in the past decade.
Employment Insurance regular claims and amount paid by industry
As outlined in table 7, the number of new EI regular claims established in FY1920 increased in both goods-producing and services-producing industries from the previous year. The increase in the number of EI regular claims in the reporting year established by claimants who worked in the services-producing industries (+4.8%) was higher than the increase in those established by claimants who worked in the goods-producing industries (+3.6%). Among the goods-producing industries, notable increases were in the Manufacturing industry (+17.5%) and the Utilities industry (+17.3%), while the number of claims decreased in the rest of the industries. Among the services-producing industries, the highest increase in the number of claims established was observed in the Accommodation and food services industry (+14.0%), followed by the Retail trade industry (+9.8%). Notably, there was a significant increase in the number of claims (+83.2%) in the Unclassified industries category in FY1920 from the previous year. This was due to the missing information in the EI claims that is required to classify them. This indicates that the increases in the number of EI regular claims in some industries in FY1920 would have been even higher if these unclassified claims had been categorized. The distribution of claims in the goods and services-producing industries remained relatively unchanged in FY1920 from the previous year.
Industry | Number of claims and % share of all claims FY1819 |
Number of claims and % share of all claims FY1920 |
Number of claims Change (%) |
Amount paid ($ million) and % share of total amount paid FY1819 |
Amount paid ($ million) and % share of total amount paid FY1920 |
Amount paid ($ million) Change (%) |
---|---|---|---|---|---|---|
Goods-producing industries | 505,200 (39.1%) |
523,350 (38.3%) |
+3.6% | $4,473.4 (41.9%) |
$4,590.7 (41.5%) | +2.6% |
Agriculture, forestry, fishing and hunting | 52,440 (4.1%) |
51,240 (3.7%) |
-2.3% | $496.8 (4.7%) |
$525.8 (4.8%) |
+5.8% |
Mining and oil and gas extraction | 24,980 (1.9%) |
24,130 (1.8%) |
-3.4% | $274.2 (2.6%) |
$270.0 (2.4%) | -1.6% |
Utilities | 4,150 (0.3%) |
4,870 (0.4%) |
+17.3% | $36.4 (0.3%) |
$42.2 (0.4%) | +15.9% |
Construction | 292,720 (22.6%) |
289,330 (21.2%) |
-1.2% | $2,640.3 (24.7%) |
$2,592.1 (23.4%) | -1.8% |
Manufacturing | 130,910 (10.1%) |
153,780 (11.2%) |
+17.5% | $1,025.7 (9.6%) |
$1,160.7 (10.5%) | +13.2% |
Services-producing industries | 764,220 (59.1%) |
801,070 (58.6%) |
+4.8% | $5,995.6 (56.2%) |
$6,151.8 (55.6%) | +2.6% |
Wholesale trade | 38,920 (3.0%) |
41,670 (3.0%) |
+7.1% | $402.6 (3.8%) |
$425.2 (3.8%) |
+5.6% |
Retail trade | 69,330 (5.4%) |
76,100 (5.6%) |
+9.8% | $620.9 (5.8%) |
$610.1 (5.5%) | -1.7% |
Transportation and warehousing | 62,640 (4.8%) |
64,460 (4.7%) |
+2.9% | $466.0 (4.4%) |
$499.1 (4.5%) |
+7.1% |
Finance and insurance | 12,630 (1.0%) |
12,480 (0.9%) |
-1.2% | $155.0 (1.5%) |
$148.8 (1.3%) |
-4.0% |
Real estate, rental and leasing | 18,270 (1.4%) |
18,800 (1.4%) |
+2.9% | $175.4 (1.6%) |
$174.8 (1.6%) |
-0.4% |
Professional, scientific and technical services | 50,950 (3.9%) |
55,220 (4.0%) |
+8.4% | $479.4 (4.5%) |
$516.5 (4.7%) |
+7.7% |
Business, building and other support services* | 88,130 (6.8%) |
85,720 (6.3%) |
-2.7% | $768.8 (7.2%) |
$768.0 (6.9%) |
-0.1% |
Educational services | 163,030 (12.6%) |
170,300 (12.5%) |
+4.5% | $774.6 (7.3%) |
$823.5 (7.4%) |
+6.3% |
Health care and social assistance | 45,870 (3.5%) |
50,050 (3.7%) |
+9.1% | $349.6 (3.3%) |
$359.2 (3.2%) |
+2.8% |
Information, culture and recreation** | 40,250 (3.1%) |
39,900 (2.9%) |
-0.9% | $324.7 (3.0%) |
$317.1 (2.9%) |
-2.3% |
Accommodation and food services | 63,280 (4.9%) |
72,130 (5.3%) |
+14.0% | $487.2 (4.6%) |
$489.4 (4.4%) | +0.5% |
Other services (excluding Public administration) | 42,010 (3.2%) |
45,450 (3.3%) |
+8.2% | $371.7 (3.5%) |
$376.7 (3.4%) |
+1.4% |
Public administration | 68,910 (5.3%) |
68,790 (5.0%) |
-0.2% | $619.7 (5.8%) |
$643.4 (5.8%) | +3.8% |
Unclassified*** | 23,290 (1.8%) |
42,660 (3.1%) |
+83.2% | $204.8 (1.9%) |
$321.8 (2.9%) |
+57.1% |
Canada | 1,292,710 (100.0%) |
1,367,080 (100.0%) |
+5.8% | $10,673.8 (100.0%) |
$11,064.4 (100.0%) | +3.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI regular benefits was paid.
- * This industry sector comprises the industries with codes 55 (Management of companies and enterprises) and 56 (Administration and support, waste management and remediation services).
- ** This industry sector comprises the industries with codes 51 (Information and cultural industries) and 71 (Arts, entertainment and recreation).
- *** For some claims, this information was not available in the data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The total amount paid in EI regular benefits in the goods and services-producing industries saw similar increases (+2.6%) in FY1920 from the previous year. Among the goods-producing industries, the highest increase in the total amount paid in EI regular benefits during this period was observed in the Utilities industry (+15.9%), followed by the Manufacturing industry (+13.2%). Among the services-producing industries, the highest increase in the total amount paid was observed in the Professional, scientific and technical services industry (+7.7%), while the highest decrease was observed in the Finance and insurance industry (-4.0%).
Benefit repayments in the 2018 tax year*
EI benefit payments are taxable income, regardless of the type of benefits. In accordance with the Employment Insurance Act, claimants must repay a percentage of EI benefits they have received if their net income** in a given year exceeds 1.25 times the maximum yearly insurable earnings. In the 2018 taxation year, claimants whose net income exceeded $64,625*** were required to repay 30% of the lesser of:
- the net income in excess of $64,625
- the total regular benefits, including regular fishing benefits, paid in the taxation year
However, claimants who received special benefits or less than 1 week of either regular or fishing benefits in the preceding 10 taxation years were exempt from the benefit repayment requirement.
In the 2018 taxation year, around 187,000 EI claimants repaid a total of $278.6 million in EI benefits. On average, each EI claimant subject to the benefit repayment provision repaid $1,490 in 2018, while they received $6,147 in EI benefits in the same year. Compared to the previous taxation year, changes in both the number of claimants who repaid benefits (-2,300 or -1.2%) and the total amount repaid (-$7.0 million or -2.4%) were relatively moderate in 2018. In addition, changes in the average amount of benefit repaid (-$19 or -1.3%) and the average benefit received (-$225 or -3.5%) by these EI claimants were also relatively moderate in 2018 compared to the previous taxation year.
In 2018, more than 2 out of 3 (68.2%) claimants who repaid benefits lived in Quebec, Ontario and Alberta. Together, these claimants accounted for 58.5% of the total amount repaid in EI benefits. In comparison, Atlantic provinces represented 15.2% of the total number of claimants who repaid benefits, accounting for 24.7% of the total amount repaid.
Generally, men are over-represented among claimants who repay EI benefits. In 2018, 88.6% of claimants who repaid EI benefits were men. Similarly, men accounted for 90.2% of the total amount repaid in EI benefits in 2018. These proportions have remained relatively unchanged in recent years.
Benefit repayments also vary by industry. In 2018, around two-thirds (66.9%) of claimants who repaid benefits had worked in the goods-producing industries, unchanged from 2017. These claimants accounted for 66.5% of the total amount repaid. In comparison, services-producing industries accounted for 29.2% claimants who repaid benefits and 30.8% of total amount repaid. These proportions have remained stable since 2011.
- * The most recent taxation year for which data are available is 2018.
- ** Net income includes employment income and EI benefits received during the taxation year.
- *** The maximum insurable earnings in 2018 was $51,700.
Impacts of Employment Insurance regular benefits on job match quality
An important aspect of the EI program to consider, beyond immediate income support, is the relative impact of receiving EI regular benefits on the suitability of a job a claimant accepts following receipt of benefits. That is to examine the extend to which receiving EI regular benefits provides additional time for individuals to find a more suitable job than they otherwise would have in the absence of benefits.
A recent departmental study* looked at this question by examining the impact of receiving EI regular benefits on job match quality for claimants with low labour market attachment.** The study compared the job outcomes of those EI regular claimants to the job outcomes of laid-off workers who were ineligible for EI benefits due to insufficient insurable hours. Three post-unemployment outcomes were examined: post-earnings, incidence of employment, and job tenure.
When comparing the EI regular claimants with a comparable group of ineligible laid-off workers (using a statistical methodology) a positive but moderate impact of receiving EI benefits was found on all three job outcomes. Results showed that within the first five years after layoff, EI claimants tend to earn more on average (the difference in post-claim earnings peaking in the third year to an average of +$1,204). Additionally, the incidence of employment (+1 percentage point in the first year to +4 percentage points in the fifth year post-claim) and job tenure (on average, +4% over the first five years) were slightly higher for EI claimants.
The study also conducted a complementary and more statistically robust analysis to examine the marginal effects of providing two additional weeks of EI regular benefits to claimants with low labour market attachment on the same job suitability outcomes.*** It found a small positive impact on earnings in the second and third year (on average +$560 and +$528, respectively) following a claim. However, having access to two additional entitlement weeks did not have a significant impact on incidence of employment or job tenure in the first five years following a claim for those workers.
- *ESDC, Employment Insurance Benefits and Job Match Quality (Ottawa: ESDC, Evaluation Directorate, 2021).
- ** Having worked between 420 and 1050 insurable hours in the qualifying period.
- *** This analysis used the discontinuities in the Variable Entrance Requirement table. That is when EI claimants with a similar level of labour force attachment (hours of insurable employment) and residing in the same EI economic region have access to a different number of weeks of benefits because the monthly regional unemployment rate has slightly changed.
Employment Insurance regular benefits and firms
According to the tax dataFootnote 17 available from Canada Revenue Agency (CRA), there were around 1.23 million firms operating in Canada in 2018, up slightly (+1.5%) from the previous year. Of those, 295,400 firms (24.0%) employed at least 1 employee who had received EI regular benefits in that year.
As outlined in table 8, the proportion of firms which employed at least 1 employee receiving EI regular benefits increased with firm sizeFootnote 18, with smaller firms being less likely to be the last employer of a claimant. In 2018, 18.6% of small-sized firms had at least 1 former employee who received EI regular benefits, compared to 71.4% of small-to-medium sized firms, 94.1% of medium-to-large sized firms and 99.4% of large-sized firms.
However, when the number of claimants for EI regular benefits is compared with distribution of workforce by firm size, employees from smaller firms are found to be over-represented among EI regular claimants. As shown in table 8, smaller firms accounted for 21.3% of the total workforce while they represented 26.6% of the total EI regular benefit claimants in 2018. Similarly, employees in the small-to-medium sized firms were also over-represented among EI regular claimants, as they accounted for 19.7% of the total employees and 24.1% of the total EI regular claimants in 2018. This gap between the share of employment and the share of EI regular claimants narrows for the medium-to-large sized firms. For the large-sized firms, however, the opposite can be observed—these firms represented 42.9% of the total workforce in Canada in 2018 but accounted for only 31.8% of the total EI regular claimants. The higher proportion of usage of EI regular benefits among employees in the smaller-sized firms suggest that smaller firms are more vulnerable to difficult business or economic conditions than larger firms, and need to make broader adjustments to their workforces. This results in a larger share of their employees claiming EI regular benefits as a result of layoffs following a reduction in business activities. Moreover, this trend can also be influenced by industry-related characteristics such as the greater prevalence of seasonal jobs in small-sized firms that are generally more likely to rely on EI, relative to the national average in some industries.Footnote 19
Firm size | All firms | Firms with at least 1 employee receiving EI regular benefits | Employment distribution** (% share) | EI claimant distribution*** (% share) |
---|---|---|---|---|
Small | 1,112,500 | 207,070 | 21.3% | 26.6% |
Small-medium | 97,220 | 69,460 | 19.7% | 24.1% |
Medium-large | 16,540 | 15,570 | 16.2% | 17.6% |
Large | 3,310 | 3,290 | 42.9% | 31.8% |
Canada | 1,229,580 | 295,380 | 100.0% | 100.0% |
- Note: Data may not add up due to rounding.
- * The categories of firm size reflect those found in Business Dynamics in Canada, a Statistics Canada publication. Small-sized firms are defined as those that employ 1 to 19 employees. Small-to-medium sized firms employ 20 to 99 employees. Medium-to-large sized firms employ 100 to 499 employees. Large-sized firms employ 500 employees or more.
- ** The number of workers in a firm is the number of individuals with employment income in that firm, as indicated on a T4 form. The number of workers is adjusted so that each individual in the labour force is only counted once and individuals who work for more than 1 firm are taken into account. For example, if an employee that earned $25,000 in firm 1 and $25,000 in firm 2, then he or she was recorded as 0.5 employees at the first firm and 0.5 employees at the second firm.
- *** These are based on the number of people receiving EI regular benefits in 2018.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data. Canada Revenue Agency, CRA administrative data. CRA data are based on a 100% sample.
Employment Insurance regular claims and amount paid by EI claimant category
Table 9 outlines the number of claims established for EI regular benefits and amount paid by EI claimant category in the reporting fiscal year and the previous year.Footnote 20 In FY1920, the number of EI regular claims by long-tenured workers saw the highest relative increase (+15.6%) from FY1819, while the total amount paid to them had a moderate increase (+2.1%) during this period. The increase in the number of claims established by occasional claimants (+5.4%) was proportional to the increase in the total amount paid in EI regular benefits to them (+4.4%). However, the number of EI claims established by frequent claimants decreased by 3.3% in FY1920 from the previous year, but the total amount paid in EI regular benefits to them increased by 3.6% in this period. This is likely due to the pilot project introduced in August 2018 that provided additional weeks of EI regular benefits to eligible seasonal claimants in 13 EI economic regions, a large portion of whom can also be considered as frequent claimants.Footnote 21
In the reporting year, long-tenured workers and occasional claimants benefited proportionally less when their shares in the total number of claims and total amount paid are considered. Long-tenured workers accounted for 24.9% of all new regular claims established while they received 22.8% of the total amount paid. Occasional claimants accounted for 54.0% of all new regular claims established in FY1920 but received 51.9% of the total amount paid. Frequent claimants, on the other hand, benefited proportionally more, as they accounted for 21.0% of total new regular claims in FY1920 and received 25.3% of the total amount paid in EI regular benefits.
Claimant category | Number of claims and % share of all EI regular claims FY1819 |
Number of claims and % share of all EI regular claims FY1920 |
Change (%) in number of claims | Amount paid ($ million) and % share of total amount paid for EI regular benefits FY1819 |
Amount paid ($ million) and % share of total amount paid for EI regular benefits FY1920 |
Change (%) in amount paid |
---|---|---|---|---|---|---|
Long-tenured workers | 294,820 (22.8%) |
340,900 (24.9%) |
+15.6% | $2,467.4 (23.1%) |
$2,518.1 (22.8%) |
+2.1% |
Occasional claimants | 700,580 (54.2%) |
738,600 (54.0%) |
+5.4% | $5,505.2 (51.6%) |
$5,746.6 (51.9%) |
+4.4% |
Frequent claimants | 297,310 (23.0%) |
287,580 (21.0%) |
-3.3% | $2,701.2 (25.3%) |
$2,799.7 (25.3%) |
+3.6% |
Canada | 1,292,710 (100.0%) |
1,367,080 (100.0%) |
+5.8% | $10,673.8 (100.0%) |
$11,064.4 (100.0%) |
+3.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Chart 7 and chart 8 illustrate the share of new EI regular claims established and the share of total amount paid by claimant categories in the past decade. During this period, the share of EI regular claims established by occasional claimants has ranged between 51.8% in FY1112 and 57.8% in FY1415. The share of claims established by long-tenured workers has experienced some variation in the last decade, while the share by frequent claimants has remained relatively unchanged.
Text description of Chart 7
Claimant category | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Long-tenured workers | 24.0% | 25.6% | 23.3% | 21.5% | 19.5% | 26.6% | 24.9% | 23.9% | 22.8% | 21.0% |
Occasional claimants | 53.9% | 51.8% | 53.1% | 55.1% | 57.8% | 51.9% | 53.5% | 53.8% | 54.2% | 54.0% |
Frequent claimants | 22.1% | 22.6% | 23.6% | 23.4% | 22.7% | 21.5% | 21.6% | 22.3% | 23.0% | 24.9% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The share paid to occasional claimants has trended upward in the last decade. The share paid to long-tenured workers has trended downward over this time.
Text description of Chart 8
Claimant category | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Long-tenured workers | 34.6% | 28.4% | 26.0% | 22.9% | 20.2% | 25.9% | 29.1% | 26.5% | 23.1% | 22.8% |
Occasional claimants | 44.5% | 46.6% | 47.4% | 50.9% | 54.1% | 50.5% | 49.1% | 49.6% | 51.6% | 51.9% |
Frequent claimants | 20.9% | 25.0% | 26.6% | 26.2% | 25.7% | 23.6% | 21.9% | 23.9% | 25.3% | 25.3% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Employment Insurance regular claims by hours of insurable employment and unemployment rate in the Employment Insurance economic region of establishment
The number of required hours depends on the unemployment rate in the EI economic region at the time of submitting the application for EI and is known as the Variable Entrance Requirement (VER). The higher the unemployment rate in a given region, the lower the number of hours needed to qualify for EI regular benefits (consult annex 2.2 for the full breakdown). A detailed discussion on the eligibility and access to EI regular benefits is provided in subsection 2.2.2.
Variable entrance requirement
In order to qualify for EI regular benefits, a worker must accumulate a minimum between 420 and 700 hours of insurable employment in the qualifying period, depending on the applicable regional rate of unemployment where the claimant resides. As outlined below, a higher regional unemployment rate corresponds to a lower required number of hours of insurable employment.EI regional unemployment rate | Variable entrance requirement |
---|---|
6.0% and under | 700 hours |
6.1% to 7.0% | 665 hours |
7.1% to 8.0% | 630 hours |
8.1% to 9.0% | 595 hours |
9.1% to 10.0% | 560 hours |
10.1% to 11.0% | 525 hours |
11.1% to 12.0% | 490 hours |
12.1% to 13.0% | 455 hours |
More than 13.0% | 420 hours |
Table 10 outlines the distribution of EI regular claims by the number of hours of insurable employment that were used to qualify for EI regular benefits in the past 5 years. In FY1920, EI regular benefit claimants who accumulated 1,820 or more hours of insurable employment during their qualifying period accounted for the largest share of total EI regular benefits established. The number of claims in this category increased by 15.0% in FY1920 from the previous year, while its share in total EI regular claims established increased by 2.2 percentage points during this period. Claimants with less than 700 hours of insurable employment accounted for the lowest share (3.8%) of total EI regular claims established in FY1920. In the past 5 years, the shares of the categories in total EI regular claims established have remained relatively stable, as shown in table 10.
Number of hours of insurable employment in the qualifying period | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 | Change (%) FY1819 to FY1920 |
---|---|---|---|---|---|---|
Less than 700 hours | 67,170 (4.7%) |
76,340 (5.8%) |
66,150 (5.1%) |
60,150 (4.7%) |
52,630 (3.8%) |
-12.5% |
700 to 979 hours | 207,610 (14.5%) |
216,650 (16.4%) |
215,600 (16.6%) |
212,640 (16.4%) |
213,380 (15.6%) |
+0.3% |
980 to 1,259 hours | 264,500 (18.5%) |
242,610 (18.4%) |
234,850 (18.1%) |
239,650 (18.5%) |
243,580 (17.8%) |
+1.6% |
1,260 to 1,539 hours | 260,870 (18.2%) |
239,030 (18.1%) |
239,600 (18.4%) |
243,490 (18.8%) |
254,120 (18.6%) |
+4.4% |
1,540 to 1,819 hours | 235,120 (16.4%) |
207,440 (15.7%) |
211,880 (16.3%) |
213,480 (16.5%) |
231,540 (16.9%) |
+8.5% |
1,820 hours and more | 395,820 (27.7%) |
339,060 (25.7%) |
331,630 (25.5%) |
323,300 (25.0%) |
371,830 (27.2%) |
+15.0% |
Canada | 1,431,090 (100.0%) |
1,321,130 (100.0%) |
1,299,710 (100.0%) |
1,292,710 (100.0%) |
1,367,080 (100.0%) |
+5.8% |
- Note: Data may not add up to the total due to rounding. Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Chart 9 shows the average number of hours of insurable employment per claimant receiving EI regular benefits in the past decade by gender. In the reporting period, claimants had accumulated 1,394 hours of insurable employment during their qualifying period, up from 1,371 hours in FY1819. Among claimants who receive EI regular benefits, the average number of hours of insurable employment accumulated by claims established by men are generally higher compared to those established by women. This can be attributable to the fact that a higher proportion of women work in part-time and/or temporary jobs than men, and so accumulate fewer hours of insurable employment on average. In FY1920, men had about 70 more hours of insurable employment than women. The difference between the average number of hours of insurable employment for men and women has stayed around 60 hours in the past decade.
Text description of Chart 9
Gender | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Men | 1,358 | 1,377 | 1,393 | 1,400 | 1,406 | 1,418 | 1,385 | 1,392 | 1,395 | 1,422 |
Women | 1,309 | 1,315 | 1,328 | 1,338 | 1,342 | 1,353 | 1,328 | 1,333 | 1,332 | 1,352 |
Canada | 1,338 | 1,352 | 1,367 | 1,376 | 1,381 | 1,393 | 1,363 | 1,369 | 1,371 | 1,394 |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The average number of hours of insurable employment per claim varies by province and territory as well. Generally, the number of hours of insurable employment per claim in the Atlantic provinces and the territories tend to be lower than other regions, due to the composition of regional labour markets. In FY1920, the lowest average hours of insurable employment per claim among all provinces and territories was observed in Newfoundland and Labrador (1,147 hours), followed by Northwest Territories (1,215 hours) and Nunavut (1,218 hours). The highest average hours of insurable employment per claim in FY1920 was observed in Ontario (1,457 hours), then Alberta (1,453 hours) and British Columbia (1,422 hours).
The average number of hours of insurable employment also varies between age groups. In FY1920, EI regular claimants who were aged between 25 and 44 years accumulated the highest average number of hours of insurable employment during their qualifying period (1,430 hours), followed closely by those who were 45 to 54 years old (1,422 hours). Older claimants (aged 55 years and over) accumulated the lowest average number of hours of insurable employment (1,329 hours) in FY1920, followed by younger claimants aged less than 25 years (1,340 hours). This may be explained by the over-representation of individuals from these 2 age groups in part-time and seasonal employmentFootnote 22, leading them to accumulate fewer hours of insurable employment on average compared to those in other age groups.
Table 11 outlines the number and distribution of EI regular claims established in the past 5 fiscal years, as well as the labour force and the unemployed population by regional unemployment rate in the reporting fiscal year. In FY1920, EI economic regions where the unemployment rate was between 0.1% and 6% accounted for around half (50.1%) of all EI regular claims established. The share of claims established in these regions has increased significantly in the past 5 years due to the steady decrease in the unemployment rate in the country during this time. These regions also accounted for more than half (52.2%) of the total unemployed population and 63.1% of the total labour force in FY1920. In contrast, the share of EI regular claims established in EI economic regions with high unemployment rates (for example, 14.1% and higher) has been decreasing in the past 5 years.
Unemployment rate | Employment Insurance regular claims established (in thousands) (% share of total claims) FY1516 |
Employment Insurance regular claims established (in thousands) (% share of total claims) FY1617 |
Employment Insurance regular claims established (in thousands) (% share of total claims) FY1718 |
Employment Insurance regular claims established (in thousands) (% share of total claims) FY1819 |
Employment Insurance regular claims established (in thousands) (% share of total claims) FY1920 |
Labour force (in thousands) (% share of labour force) FY1920 |
Number of unemployed (in thousands) (% share of unemployed) FY1920** |
---|---|---|---|---|---|---|---|
0.1% to 6% | 218.0 (15.2%) |
171.4 (13.0%) |
384.2 (29.6%) |
411.2 (31.8%) |
685.1 (50.1%) |
12,913.3 (63.1%) |
666.7 (52.2%) |
6.1% to 7% | 363.7 (25.4%) |
363.2 (27.5%) |
425.6 (32.7%) |
479.0 (37.1%) |
284.2 (20.8%) |
3,702.4 (18.1%) |
238.2 (18.7%) |
7.1% to 8% | 279.0 (19.5%) |
299.0 (22.6%) |
134.8 (10.4%) |
129.4 (10.0%) |
134.7 (9.9%) |
2,297.8 (11.2%) |
172.7 (13.5%) |
8.1% to 9% | 216.3 (15.1%) |
169.3 (12.8%) |
110.9 (8.5%) |
40.8 (3.2%) |
35.0 (2.6%) |
357.3 (1.7%) |
29.7 (2.3%) |
9.1% to 10% | 75.7 (5.3%) |
65.5 (5.0%) |
31.7 (2.4%) |
13.9 (1.1%) |
9.6 (0.7%) |
58.0 (0.3%) |
5.5 (0.4%) |
10.1% to 11% | 50.4 (3.5%) |
35.4 (2.7%) |
8.0 (0.6%) |
37.0 (2.9%) |
28.7 (2.1%) |
309.5 (1.5%) |
32.7 (2.6%) |
11.1% to 12% | 16.7 (1.2%) |
21.4 (1.6%) |
60.1 (4.6%) |
49.0 (3.8%) |
34.8 (2.5%) |
241.6 (1.2%) |
27.6 (2.2%) |
12.1% to 13% | 43.9 (3.1%) |
35.3 (2.7%) |
13.4 (1.0%) |
4.1 (0.3%) |
23.8 (1.7%) |
100.5 (0.5%) |
12.3 (1.0%) |
13.1% to 14% | 16.9 (1.2%) |
11.4 (0.9%) |
28.2 (2.2%) |
7.0 (0.5%) |
47.4 (3.5%) |
120.7 (0.6%) |
16.3 (1.3%) |
14.1% to 15% | 23.7 (1.7%) |
38.2 (2.9%) |
24.0 (1.8%) |
17.9 (1.4%) |
9.0 (0.7%) |
29.5 (0.1%) |
4.3 (0.3%) |
15.1% to 16% | 32.0 (2.2%) |
25.4 (1.9%) |
10.3 (0.8%) |
25.0 (1.9%) |
14.5 (1.1%) |
54.8 (0.3%) |
8.7 (0.7%) |
16% or higher | 94.8 (6.6%) |
85.8 (6.5%) |
68.6 (5.3%) |
78.6 (6.1%) |
60.4 (4.4%) |
281.0 (1.4%) |
61.6 (4.8%) |
Canada | 1,431.1 (100.0%) |
1,321.1 (100.0%) |
1,299.7 (100.0%) |
1,292.7 (100.0%) | 1,367.1 (100.0%) |
20,466.3 (100.0%) |
1,276.2 (100.0%) |
- Note: Data may not add up to the total due to rounding. Includes claims for which at least $1 of EI regular benefits was paid.
- * Unemployment rates used for the Employment Insurance program are a moving average of seasonally adjusted rates of unemployment produced by Statistics Canada, as per section 17 of the Employment Insurance Regulations.
- Sources: Employment and Social Development Canada, Employment Insurance (EI) administrative data and Statistics Canada, special tabulations from the Labour Force Survey. EI data are based on a 10% sample of EI administrative data.
Using multiple Records of Employment (ROEs) * to establish claims for EI regular benefits
The introduction of the EI system in 1996 recognized all hours of insurable employment starting from the first hour, shifting from the previous Unemployment Insurance (UI) system which was based on weeks worked that excluded weeks with less than 15 hours of work. This switch allowed workers to combine multiple ROEs to establish claims for EI benefits, recognizing the variety of work patterns and rising trends in non-standard forms of employment (including multiple jobholding).
A recent departmental study** examined the socio-demographic profiles of claimants for EI regular benefits who used multiple ROEs compared to those who used a single ROE to establish their claims. Over the period 2000 to 2018, the study found that on average 35.8% of yearly EI regular claims were established using multiple ROEs. Men, younger workers aged 15 to 24, unemployed workers from the construction sector and claimants who worked while on claim were more likely to establish claims for EI regular benefits with multiple ROEs. The incidence of claiming with multiple ROEs was higher in most of Eastern Canada (Newfoundland and Labrador, New Brunswick and Prince Edward Island), Quebec and Manitoba compared to other regions in the country. On average, claims associated with multiple ROEs received 16 weeks of EI regular benefits compared to 18 weeks for those associated with a single ROE.
The study also looked at claimants with multiple ROEs who had a single job and those with multiple jobs***. The majority (about 70%) of claims associated with multiple ROEs were from claimants who had multiple jobs, which were more likely to be held sequentially (56%) than concurrently (44%). The incidence rate of holding jobs concurrently was higher for women, younger workers aged 15 to 24, and workers in the government and social service sectors.
- * A Record of Employment is a form completed by the employer when an employee stops working. It contains information on employment history, and is the single most important document used by employees to apply for EI benefits.
- ** ESDC, Trends in the Use of Multiple Records of Employment to Establish Employment Insurance Claims (Ottawa: ESDC, Evaluation Directorate, 2021).
- *** Multiple jobholders in this context are those who work for more than one employer over their qualifying period for EI regular benefits.
Claimants obligations to search for and accept suitable employment
Under the Employment Insurance Act, claimants for EI regular benefits must generally be capable of and available for suitable employment and must demonstrate this by searching for and taking advantage of an opportunity for suitable employment in order to receive EI regular benefits.
As specified under section 27 of the Employment Insurance Act, a claimant is disqualified from receiving EI regular benefits in cases where:
- he/she does not apply for suitable employment after becoming aware it is vacant, or fails to accept the employment after it being offered
- has not taken advantage of an opportunity for suitable employment; or
- has not followed written direction by the Canada Employment Insurance Commission given to assist the claimant in finding suitable employment
The Government of Canada made legislative and regulatory changes in July 2016 to simplify job search responsibilities for claimants of EI regular benefits.Footnote 23 Before the legislative change in July 2016, the Connecting Canadians with Available Jobs (CCAJ) initiative that started on January 6, 2013 was in effect. A departmental evaluation reportFootnote 24 found that the number of disqualifications or disentitlements due to inadequate job searches or failing to accept suitable jobs increased, but remained low relative to the total number of disqualifications and disentitlements during the period in which CCAJ was in effect (January 2013 to July 2016). This indicates enhanced and more efficient monitoring of claimants by Service Canada. These conditions should be considered when comparing the results presented in table 12.
Table 12 outlines the number of disqualifications and disentitlements related to refusal and failure to search for work in the past 5 years. In FY1920,Footnote 25 there were a total of 1,190 disqualifications and disentitlements related to failure to search for work and a total of 180 disqualifications and disentitlements related to refusal of suitable work. However, these 2 factors represent only a fraction (0.2%) of all disqualifications and disentitlements in the reporting year, and do not take into consideration that benefits would generally have been reinstated once the claimants demonstrated that they were fulfilling their responsibilities.
Type of disqualification or disentitlement | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|
Refusal of suitable work | 180 | 170 | 130 | 170 | 180 |
Failure to search for work | 1,020 | 1,340 | 1,730 | 1,430 | 1,190 |
- * The total for the reporting fiscal year is calculated using monthly estimates from April 2019 to February 2020, and excludes data for the month of March 2020. Due to the COVID-19 situation, many Canadians who were not employed and seeking income assistance between March 15 and September 26, 2020, were accessing Government of Canada benefit programs other than Employment Insurance, such as the Canada Emergency Response Benefit (CERB). As a result, the Employment Insurance Statistics program was suspended between the March and September 2020 reference months. Consequently, data on the number of EI disqualification and disentitlements are not available for this period.
- Source: Statistics Canada, monthly Employment Insurance disqualifications and disentitlements, Table 14-10-0004-01.
2.2.2 Coverage, eligibility and access to Employment Insurance regular benefits for the unemployed population
As mentioned at the beginning of section 2.2, there are 3 eligibility criteria to qualify for EI regular benefits:
- the claimant must have had insurable employment and paid EI premiums during the qualifying period (defined as either the previous 52 weeks or since the establishment of their last claim, whichever is shorter)
- have a valid reason for job separation according to the Employment Insurance Act
- have worked a minimum number of hours of insurable employment (ranging from 420 and 700 hours, depending on the regional unemployment rate where the claimant lived at the time of the claim) during the qualifying period
This subsection provides an overview of the unemployed population in Canada in terms of these 3 eligibility criteria. All estimates on the unemployed population provided in this subsection are based on results from the Employment Insurance Coverage Survey (EICS),Footnote 26 published annually by Statistics Canada. The survey provides statistics on the contributors and non-contributors to the EI program among the unemployed population in the calendar year, as well as on the eligible recipients and those who did not qualify for EI regular benefits. The survey also provides information on the take-up of EI maternity and parental benefits in Canada (consult subsection 2.6.2).
Chart 10 illustrates the distribution of the unemployed population in Canada in 2019 in terms of their eligibility criteria for EI regular benefits. On average, there were 1,088,700 unemployed individuals per month in Canada in 2019. Of them, 419,100 (38.5%) individuals did not pay EI premiums during the year because they did not work in the previous 12 months or never worked, or because they were self-employed or unpaid family workers. The other 669,600 (61.5%) unemployed individuals had paid EI premiums in the 12 months prior to becoming unemployed in 2019, and thus were covered by the EI program.
Of the total unemployed population, 14.2% were ineligible for EI benefits as they had invalid reasons for job separation, although they had paid EI premiums. Of these individuals, some quit their jobs to go to school while others quit for other reasons. The number of unemployed individuals ineligible for EI regular benefits for quitting their jobs to go to school dropped by almost half (47.5%) from 2018 to 2019, likely due to the continued strong labour market performance in 2019.Footnote 27 The remaining 515,400 unemployed individuals (47.3% of total unemployed) had paid EI premiums and had a valid reason for job separation. However, some of them (8.3% of total unemployed) did not accumulate enough hours of insurable employment during their qualifying period. The rest (39.0% of total unemployed) had enough hours of insurable employment during their qualifying period and were eligible for EI regular benefits, as they had met all 3 eligibility criteria of the EI program.
While the majority of the unemployed population eligible for EI regular benefits with enough hours of insurable employment had received EI benefits at the time they were surveyed in 2019, some were not receiving them even though they were eligible (consult chart 10). This was due to 1 of the following reasons:
- their benefits were temporarily interrupted or they were waiting to receive benefits
- they did not claim or receive benefits for unknown reasons
- they had exhausted benefits in the past 12 months, or
- they were receiving non-regular EI benefits
Text description of Chart 10
(U) Total unemployed individuals: 1,088,700 (100%) | Description |
---|---|
(A) Unemployed individuals who did not pay EI premiums: 419,100 (38.5%) | A1 – Individuals who did not work in the previous 12 months or never worked: 353,500 (32.5%) A2 – Individuals who were self-employed or unpaid family workers: 65,600 (6.0%) |
(B) EI premium-paying unemployed individuals with invalid reasons for job separation: 154,200 (14.2%) | B1 – Individuals with invalid reasons for job separation - other reasons: 107,400 (9.9%) B2 – Individuals with invalid reasons for job separation - quit to go to school: 46,800 (4.3%) |
(C) Potentially eligible unemployed individuals but insufficient hours of insurable employment: 90,500 (8.3%) | C1 – Individuals who did not have sufficient hours of insurable employment: 90,500 (8.3%) |
(D) Unemployed individuals eligible for EI regular benefits with enough hours of insurable employment: 424,900 (39.0%) | D1 – Individuals who received EI regular benefits: 295,000 (27.1%) D2 – Benefits temporarily interrupted or waiting to receive benefits: 45,500 (4.2%) D3 – Individuals who did not claim or receive benefits for unknown reasons: 36,900 (3.4%) D4 – Individuals who exhausted EI benefits in the past 12 months: 37,000 (3.4%) D5 – Individuals who received non-regular EI benefits: 10,500E (1.0%) |
- Note: Data may not add up to the total due to rounding.
- * Estimates for the year are based on monthly averages.
- E Use with caution, as there are high levels of error in this estimate. Source: Statistics Canada, Employment Insurance Coverage Survey, 2019.
Chart 11 shows the distribution of the unemployed population in Canada over the past 10 years in terms of their eligibility for EI regular benefits. Generally, the share of unemployed individuals who meet all 3 eligibility criteria for EI regular benefits go up following economic or labour market disruptions; for example, the recession in FY0809 and the downturn in global commodity prices in 2015. On the other hand, during periods of strong economic and labour market conditions with low unemployment rates, a lower share of unemployed individuals are eligible for EI regular benefits as they need a higher number of hours of insurable employment to qualify. This explains the third consecutive yearly decrease in the share of unemployed individuals with enough hours of insurable employment (consult chart 11).
Text description of Chart 11
Category | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|---|
(A) Unemployed individuals who did not pay premiums | 29.7% | 35.3% | 35.5% | 38.3% | 37.5% | 39.0% | 34.7% | 34.7% | 37.0% | 36.1% | 38.5% |
(B) EI premium-paying unemployed individuals with an invalid reason for job separation | 12.5% | 11.8% | 12.7% | 13.7% | 14.9% | 14.9% | 12.4% | 11.9% | 12.0% | 15.8% | 14.2% |
(C) Potentially eligible unemployed individuals but with insufficient hours of insurable employment | 8.0% | 8.5% | 11.2% | 8.7% | 6.7% | 7.8% | 9.1% | 7.8% | 8.0% | 6.1% | 8.3% |
(D) Unemployed individuals eligible for EI regular benefits with enough hours of insurable employment | 49.8% | 44.4% | 40.5% | 39.3% | 40.8% | 38.3% | 43.8% | 45.6% | 43.0% | 42.1% | 39.0% |
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2009 to 2019.
Coverage of Employment Insurance regular benefits
The coverage rate of EI regular benefits shows the proportion of unemployed individuals who contributed to the EI program by paying EI premiums in the preceding 52 weeks prior to becoming unemployed. Thus, the coverage rate is calculated by dividing the number of unemployed individuals who had insurable employment and paid EI premiums within the previous 52 weeks by the number of total unemployed individuals in Canada. In 2019, the coverage rate was 61.5%, down slightly from 63.9% observed in 2018.
Higher coverage rates of EI regular benefits are usually observed during economic downturns, as slowing economic activities lead to layoffs that increase the share of unemployed EI contributors among all unemployed individuals. The coverage rates in the past decade peaked in 2009, corresponding with the FY0809 recession and rose again during the downturn in commodity prices in 2015 and 2016. The coverage rate decreased by 2.4 percentage points to 61.5% in 2019 from the previous year—within the range observed between 2012 and 2014, just before the economic downturn in 2015 (consult chart 12).
Text description of Chart 12
Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|---|
Coverage rate | 70.3% | 64.7% | 64.5% | 61.7% | 62.5% | 61.0% | 65.3% | 65.3% | 63.0% | 63.9% | 61.5% |
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2009 to 2019.
Table 13 outlines the coverage rates of EI regular benefits by province, gender, age and previous work pattern for the past 5 years. Despite a large decrease from the previous year, Prince Edward Island had the highest coverage rate among all provinces in 2019, same as in 2018. Similarly, Ontario continued to have the lowest coverage rate among all provinces in 2019. Historically, the Atlantic provinces have higher coverage rates than the rest of the country—this may be explained by the composition of unemployed individuals, such as the prevalence of the seasonal employment pattern in that region.Footnote 28
The coverage rate for men decreased in 2019 from the previous year but continued to be higher than that for women, which remained relatively unchanged. The lower coverage rate for women can be explained by the fact that unemployed women are less likely to have recent insurable employment compared to unemployed men. The coverage rate of younger unemployed individuals and those aged 45 years and older remained relatively unchanged in 2019, while it dropped for those aged between 25 and 44 years.
When the unemployed population is categorized by their previous work pattern, it can be seen that a higher share of unemployed individuals with previous non-permanent jobs paid EI premiums in the previous 52 weeks than those who had permanent jobs. This can be explained by the high coverage rate of unemployed individuals who worked in non-permanent seasonal jobs. As these individuals work for few weeks or months on a cyclical pattern over a year, they are more likely to have paid EI premiums in the previous 52 weeks than those who were in permanent jobs and might be unemployed for more than a year. Among unemployed individuals who previously held permanent jobs, those who had part-time jobs had a higher coverage rate than those who had full-time jobs in 2019, contrary to the previous year. This can be explained by the increase in the share of unemployed individuals with previous permanent full-time jobs in 2019 who did not pay EI premiums—likely those who have been unemployed for more than a year—among the total unemployed with such previous work pattern, compared to the previous year. Over the same period, the share of unemployed with previous permanent part-time jobs who did not pay EI premiums decreased, resulting in a higher coverage rate for themFootnote 29. Among unemployed individuals who previously were in non-permanent employment, those who had seasonal work continued to have a significantly higher coverage rate in 2019 compared to those who had non-seasonal non-standard work.
Category | 2015 | 2016 | 2017 | 2018 | 2019 | Change (% points) 2018 to 2019 |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 87.2% | 82.9% | 87.4% | 87.3% | 77.7% | -9.6 |
Prince Edward Island | 86.1% | 90.5% | 78.8% | 91.0% | 81.8% | -9.2 |
Nova Scotia | 71.9% | 76.2% | 69.3% | 73.0% | 73.7% | +0.7 |
New Brunswick | 81.9% | 80.9% | 80.8% | 69.7% | 76.1% | +6.4 |
Quebec | 67.1% | 65.6% | 65.0% | 67.0% | 63.9% | -3.1 |
Ontario | 57.0% | 57.7% | 57.9% | 59.6% | 57.9% | -1.7 |
Manitoba | 67.2% | 59.0% | 60.9% | 62.5% | 59.5% | -3.0 |
Saskatchewan | 77.3% | 71.3% | 72.5% | 70.2% | 58.0% | -12.2 |
Alberta | 71.0% | 70.0% | 55.8% | 61.7% | 61.6% | -0.1 |
British Columbia | 67.2% | 69.9% | 69.8% | 61.7% | 58.5% | -3.2 |
Men | 69.3% | 70.9% | 66.8% | 68.3% | 62.8% | -5.5 |
Women | 59.4% | 56.8% | 58.1% | 58.1% | 59.9% | +1.8 |
24 years old and under | 54.4% | 56.3% | 50.9% | 57.1% | 57.9% | +0.8 |
25 to 44 years old | 67.3% | 65.5% | 65.7% | 64.4% | 59.4% | -5.0 |
45 years old and over | 70.4% | 71.2% | 67.1% | 67.5% | 65.6% | -1.9 |
Permanent | 74.0% | 72.0% | 68.8% | 72.1% | 67.6% | -4.5 |
Full-time | 76.8% | 74.5% | 70.6% | 74.0% | 66.1% | -7.9 |
Part-time | 64.3% | 59.6% | 65.9% | 67.1% | 72.7% | +5.6 |
Non-permanent | 78.5% | 78.8% | 77.6% | 81.1% | 79.4% | -1.7 |
Seasonal* | 87.4% | 85.5% | 90.2% | 86.9% | 88.2% | +1.3 |
Other non-standard** | 72.7% | 74.5% | 69.0% | 77.2% | 72.8% | -4.4 |
Canada*** | 65.3% | 65.3% | 63.0% | 63.9% | 61.5% | -2.4 |
- * Seasonal employment is temporary work that is expected to last only until the end of a ‘season’—the period for which services are in demand.
- ** Other non-standard refers to non-permanent paid jobs that were either temporary, term, contractual, casual or other non-permanent (but not seasonal) employment. This excludes unemployed individuals who were self-employed.
- *** The coverage rates of unemployed individuals for most of the work pattern categories are higher than the national average. This can be explained by the 0% coverage rate of unemployed individuals for whom a previous work pattern is not applicable because they never worked before. The national average is lower because these individuals are included.
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2018 to 2019.
Eligibility for Employment Insurance regular benefits
As mentioned at the beginning of this subsection, applicants for EI regular benefits must meet 3 criteria to be considered eligible (they must have paid EI premiums, have a valid reason for job separation and have accumulated enough hours of insurable employment during their qualifying period). The eligibility rate is expressed as the share of unemployed individuals with sufficient hours of insurable employment among those who meet the other 2 eligibility criteria.
The eligibility rate for EI regular benefits decreased by 5.0 percentage points in 2019 from the previous year (consult chart 13). In the past decade, it has ranged between 78.4% in 2011 and 87.4% in 2018. The decrease in the eligibility rate can partly be explained by the historically low unemployment rates in 2019, which translated into a higher entry requirement for EI regular benefits. While the eligibility rate decreased for both previous employment patterns (permanent and non-permanent), the decrease was more significant for those who previously had non-permanent employment compared to those who had permanent employment. Notably, in the last decade, the variability in eligibility rates for those who had non-permanent employment was greater than it was for those who previously had permanent jobs.
The eligibility rates for EI regular benefits are sensitive to economic conditions and specific employment patterns during the qualifying period, such as the incidence of full-time versus part-time employment, permanent versus temporary employment etc. Because of this, significant variations are found when unemployed individuals are classified based on regional, demographic and previous employment characteristics.
Text description of Chart 13
Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|---|
All unemployed individuals | 86.2% | 83.9% | 78.4% | 81.9% | 85.8% | 83.1% | 82.8% | 85.4% | 84.3% | 87.4% | 82.4% |
Permanent employment | 92.2% | 92.4% | 87.2% | 89.9% | 91.4% | 87.7% | 90.0% | 92.8% | 91.7% | 92.8% | 89.3% |
Non-permanent employment | 75.3% | 72.3% | 68.3% | 72.2% | 79.0% | 77.7% | 72.2% | 75.7% | 76.7% | 80.1% | 74.4% |
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2009 to 2019.
As outlined in table 14, unemployed individuals in Prince Edward Island had the highest eligibility rate among provinces in 2019, followed closely by New Brunswick and Nova Scotia, unchanged from 2018. On the other hand, following the significant decrease in the eligibility rate from the previous year, British Columbia had the lowest eligibility rate in 2019, followed by Ontario and Manitoba. On a year-over-year basis, 5 provinces had an increase in their eligibility rate in 2019, while the other 5 experienced a decrease. Notably, significant drops in Ontario and British Columbia mostly drove the decrease in the national eligibility rate in 2019 while changes in other provinces were insignificant. As mentioned, this can be explained by the low unemployment rates in these provinces in 2019,Footnote 30 as well as the concentration of part-time and non-permanent jobs.Footnote 31 Low unemployment rates translates into a higher required number of hours of insurable employment to qualify for EI regular benefits.Footnote 32 In particular, unemployed individuals who had part-time or non-standard employment were less likely to accumulate the required number of hours of insurable employment due to their work pattern, resulting in significant decreases in their eligibility rate (consult table 14).
Category | 2015 | 2016 | 2017 | 2018 | 2019 | Change (% points) 2018 to 2019 |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 93.7% | 95.9% | 96.7% | 93.8% | 94.1% | +0.3 |
Prince Edward Island | 92.7% | 98.5% | 94.3% | 98.2% | 97.0% | -1.2 |
Nova Scotia | 82.3% | 93.3% | 86.0% | 93.8% | 95.2% | +1.4 |
New Brunswick | 96.2% | 94.6% | 93.1% | 94.0% | 96.7% | +2.7 |
Quebec | 81.5% | 86.7% | 85.1% | 85.5% | 87.8% | +2.3 |
Ontario | 84.8% | 81.3% | 79.6% | 88.7% | 75.7% | -13.0 |
Manitoba | 82.9% | 75.3% | 84.9% | 83.1% | 79.1% | -4.0 |
Saskatchewan | 89.9% | 78.9% | 69.7% | 86.6% | 83.2% | -3.4 |
Alberta | 78.6% | 84.9% | 85.2% | 79.6% | 84.1% | +4.5 |
British Columbia | 75.2% | 87.3% | 90.0% | 91.0% | 73.6% | -17.4 |
Men | 82.0% | 87.2% | 85.8% | 88.3% | 84.7% | -3.6 |
Women | 84.3% | 81.6% | 82.1% | 86.1% | 79.5% | -6.6 |
24 years old and under | 54.0% | 50.8% | 40.7% | 60.5% | 51.7% | -8.8 |
25 to 44 years old | 82.1% | 88.4% | 89.4% | 90.7% | 82.1% | -8.6 |
45 years old and over | 90.7% | 94.0% | 90.2% | 90.5% | 91.4% | +0.9 |
Permanent | 90.0% | 92.8% | 91.7% | 92.8% | 89.3% | -3.5 |
Full-time | 93.3% | 95.3% | 94.5% | 93.6% | 94.2% | +0.6 |
Part-time | 65.8% | 62.4% | 69.3% | 86.0% | 64.7% | -21.3 |
Non-permanent | 72.2% | 75.7% | 76.7% | 80.1% | 74.4% | -5.7 |
Seasonal* | 82.6% | 87.5% | 86.7% | 82.0% | 83.5% | +1.5 |
Other non-standard** | 64.0% | 66.4% | 66.8% | 78.5% | 64.5% | -14.0 |
Canada | 82.8% | 85.4% | 84.3% | 87.4% | 82.4% | -5.0 |
- * Seasonal employment is temporary work that is expected to last only until the end of a ‘season’—the period for which services are in demand.
- ** Other non-standard refers to non-permanent paid jobs that were either temporary, term, contractual, casual or other non-permanent (but not seasonal) employment. This excludes unemployed individuals who were self-employed
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2015 to 2019.
Regional unemployment rates and eligibility for EI regular benefits
As mentioned in subsection 2.2.1, the Variable Entrance Requirement (VER) ensures equitability among claimants from regions with different unemployment rates. The rationale behind VER is the fact that it is more difficult to find employment in regions with high unemployment rates and thus to accumulate hours of insurable employment, which is one of the three eligibility criteria for EI regular benefits. Variations in the proportion of unemployed individuals meeting the VER following a job separation are found in regions with different unemployment rates. A recent departmental study* used the Record of Employment (ROE)** data from 2001 to 2017 to estimate the proportion of job separators who met the required number of hours of insurable employment to qualify for EI regular benefits. Generally, the percentages of job separators who did not have enough accumulated hours of insurable employment were lower in regions with higher unemployment rates. Between 2001 and 2017, the percentage of job separators who did not meet the VER in their respective regions varied between 26.1% in 2009 to 32.1% in 2007. In 2017, around 31.3% of job separators in regions with low unemployment rates (6% or less) did not have enough accumulated hours of insurable employment to meet the VER, compared to 14.8% of job separators in high unemployment rate (13% or more) regions. The study also found that the probability to accumulate enough hours of insurable employment increased with regional unemployment rates—from 70.4% in regions with low unemployment rates (6% or less) to 85.2% in regions with high unemployment rates (13% or more).
- * ESDC, Record of Employment-based Measures of Employment Insurance Eligibility: Update 2001 to 2017. (Ottawa: ESDC, Evaluation Directorate, 2019)
- ** A Record of Employment is a form completed by the employer when an employee stops working. It contains information on employment history, and is the single most important document used by employees to apply for EI benefits.
Between 2018 and 2019, the decrease in the eligibility rate for unemployed women was more profound than it was for unemployed men. It also decreased substantially for individuals aged 15 to 24Footnote 33 and 25 to 44, while the rate was virtually unchanged for individuals aged 45 and over.
Variations in the eligibility criteria for EI regular benefits by age
Some variations in meeting the eligibility criteria to qualify for EI regular benefits can be observed when claimants’ age are considered. A recent departmental study* looked at the profiles of seniors compared to individuals in other age groups in terms of labour market participation and indicators related to the coverage, eligibility and levels of EI regular benefits received. The study looked at the reasons for job separation and the proportion of job separators who met the required number of hours of insurable employment to qualify for EI regular benefits in 2017, 2018 and 2019 by age group. The share of job separators who had enough hours of insurable employment to meet the Variable Entrance Requirement (VER) was the highest among older job separators (aged between 55 and 64 years) in these three years, followed closely by the core-aged job separators (aged between 25 and 54 years). Younger job separators (aged below 25 years) had the lowest share of people with enough hours of insurable employment to meet the VER, followed by seniors aged 70 years and over.
The study also looked at the reasons for job separation by analyzing Record of Employments (ROEs) issued to employees in different age groups in these three years. Notably, the share of ROEs issued for shortage of work increases with the age of employees—among younger employees, almost one in three ROEs (around 31% in these 3 years) was issued due to this reason, while among older senior employees aged 70 years and above, almost two in three ROEs (around 65% in these 3 years) were issued due to this reason.
The study also found that seniors had the lowest average number of hours of insurable employment and the lowest average weekly insured earnings compared to claimants in other age groups. This was mainly attributable to their preference to work in part-time and self-employment.
- * ESDC, Profile of Employment Insurance Coverage and Benefits of Seniors (Ottawa: ESDC, Employment Insurance Policy Directorate, 2021).
As mentioned, eligibility rates also vary across different employment characteristics. Intuitively, unemployed individuals who previously held full-time positions are more likely to have accumulated the required number of hours of insurable employment and have a higher eligibility rate than those who had part-time jobs. Similarly, unemployed individuals who previously had permanent jobs are more likely to meet the hours requirement than those who had temporary employment. This is evident in table 14 and chart 14 where unemployed individuals who previously had permanent employment are classified into full-time and part-time categories, and those who previously had non-permanent employment are classified into seasonal and non-seasonal categories.
In the past decade, the eligibility rates for EI regular benefits for the unemployed individuals who previously had permanent full-time employment showed little variation. The variation, on the other hand, for those with previous permanent part-time employment was much greater, ranging between 54.9% in 2011 and 86.0% in 2018. The drop in the eligibility rate in 2019 from the previous year for unemployed individuals in this group was also the highest (21.3 percentage points) recorded in the past 10 years. Similarly, among unemployed individuals who previously had non-permanent employment, the eligibility rates for those with previous seasonal employment showed comparatively less variation than the eligibility rates for those who had non-permanent non-seasonal employment. The sharp decline in the eligibility rate for those who previously had non-permanent non-seasonal jobs (14.0 percentage points), along with the decline for those with previous permanent part-time jobs mainly drove the decrease in the eligibility rate for Canada in 2019 from the previous year.
Text description of Chart 14
Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|---|
Permanent full-time | 94.3% | 94.5% | 91.2% | 94.6% | 95.0% | 90.1% | 93.3% | 95.3% | 94.5% | 93.6% | 94.2% |
Permanent part-time | 68.8% | 74.4% | 54.9% | 65.2% | 71.4% | 66.2% | 65.8% | 62.4% | 69.3% | 86.0% | 64.7% |
Non-permanent seasonal | 81.4% | 83.6% | 81.2% | 75.6% | 85.1% | 84.6% | 82.6% | 87.5% | 86.7% | 82.0% | 83.5% |
Non-permanent non-seasonal | 70.5% | 64.7% | 60.0% | 69.8% | 74.5% | 73.0% | 64.0% | 66.4% | 66.8% | 78.5% | 64.5% |
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2009 to 2019.
Access to Employment Insurance regular benefits
Access to EI regular benefits is another way to measure how well the EI program is functioning to meet the needs of Canada’s unemployed in providing financial support following a job loss and helping them transition to new employment. For the purpose of the EI Monitoring and Assessment Report, access to EI regular benefits is measured by 2 ratios: the Beneficiary-to-Unemployed (B/U) ratio and the Beneficiary-to-Unemployed Contributor (B/UC) ratio.Footnote 34
The Beneficiary-to-Unemployed (B/U) ratio
The Beneficiary-to-Unemployed (B/U) ratio is calculated by expressing the average number of EI regular beneficiaries reported in Statistics Canada’s monthly EI Statistics releases as a share of the overall unemployed population obtained from the EICS. As such, it includes a significant segment of the unemployed population who are ineligible for EI regular benefits (such as those who did not work in the previous year or never worked, who did not have a valid job separation, and those who were self-employed). Because of this, the B/U ratio is sensitive to changes in the composition of the unemployed population and the proportion of the unemployed individuals outside the scope of the EI program’s coverage.
The Beneficiary-to-Unemployed Contributor (B/UC) ratio
The Beneficiary-to-Unemployed Contributor (B/UC) ratio is calculated by expressing the average number of EI regular beneficiaries as a share of the corresponding unemployed population who contributed EI premiums in the previous 12 months. Because the B/UC ratio measures accessibility among unemployed workers for whom the EI regular benefits are designed to provide coverage, and excludes those who did not contribute EI premiums during their last employment period or did not have any labour force attachment, this ratio provides a better assessment of accessibility to EI regular benefits.
Chart 15 illustrates the B/U and B/UC ratios over the past 10 years. In 2019, the number of total unemployed (U), unemployed contributors (UC) and EI regular beneficiaries (B) decreased from the previous year. However, the decrease in the number of EI regular beneficiaries was lower than the decrease in the number of unemployed, and significantly lower than the unemployed contributors, which caused the B/U ratio to remain relatively unchanged (+0.3 percentage points) from the previous year, and the B/UC ratio to increase slightly (+2.9 percentage points). The continued strong labour market performance in 2019 resulted in the lowest unemployment rate observed in Canada since 1976,Footnote 35 which meant relatively fewer people were faced with job separation and needed support from the EI program, resulting in a lower number of beneficiaries (B). Similarly, the low unemployment rate denotes a reduction in the unemployed population (U) among the labour force. In addition, it is indicative of a tight labour market, which means there were fewer laid off unemployed contributors (UC) in 2019 compared to the previous year, resulting in the large drop in their number.
Text description of Chart 15
Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|---|
Beneficiary-to-Unemployed (B/U) Ratio | 51.8% | 48.9% | 43.2% | 40.6% | 38.4% | 38.6% | 39.8% | 41.8% | 42.1% | 39.3% | 39.6% |
Beneficiary-to-Unemployed Contributor (B/UC) Ratio | 73.7% | 75.6% | 67.1% | 65.8% | 61.5% | 63.4% | 61.0% | 64.0% | 66.9% | 61.5% | 64.4% |
- Sources: Statistics Canada, monthly Employment Insurance statistics release, Table 14-10-0010-01 (for data on EI regular beneficiaries (B)); and Statistics Canada, Employment Insurance Coverage Survey (for data on the number of unemployed (U) and the number of unemployed contributors (UC)).
2.2.3 Level of Employment Insurance regular benefits
Under the Variables Best Weeks provision, the weekly regular benefit rate payable to EI claimants is calculated as 55% of the average of their highest (best) weeks of insurable earnings over their qualifying period.Footnote 36 The maximum weekly benefit rate is based on the maximum insurable earnings (MIE).Footnote 37 The number of weeks used for calculating the weekly benefit rate ranges from 14 to 22 weeks, depending on the unemployment rate of the claimant’s EI economic region.
Furthermore, claimants with children (under the age of 18 years) and low annual family income may be eligible for the Family Supplement provision. This can increase their benefit rate from 55% up to a maximum of 80% of their weekly insurable earnings, subject to the maximum weekly benefit rate (consult subsection 2.1.1 for detailed discussion). The level of EI regular benefits discussed in this subsection includes Family Supplement top-ups paid to eligible claimants with EI regular benefits.
In FY1920, the average weekly benefit rate for EI regular benefits increased by 3.0% to $483, up from $469 observed in the previous fiscal year (+$14). This increase is attributable in part to the increase in the MIE.Footnote 38 As illustrated in chart 16, the average weekly regular benefit rate has been rising steadily on a year-over-year basis over the past 10 years.
Text description of Chart 16
Category | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Average weekly benefit rate | $371 | $384 | $396 | $419 | $433 | $446 | $449 | $457 | $469 | $483 |
- Note: Includes all claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
As shown in annex 2.5.3, the average weekly regular benefit rate increased in FY1920 in all provinces and territories compared to the previous fiscal year. The highest growth was observed in Nunavut (+9.6%), followed by Quebec (+3.5%). The average weekly regular benefit rate varied across provinces and territories—from the highest observed in Nunavut ($550) to the lowest observed in Prince Edward Island ($446). As in previous years, claims from the Atlantic provinces, Quebec and Manitoba continued to receive weekly regular benefit rates below the national average, while claims from Ontario, Saskatchewan, Alberta, British Columbia and the territories remained above the national average.
Consistent with past years, in FY1920, men had a higher average weekly regular benefit rate ($507, up from $493 in FY1819) than women ($444, up from $432 in FY1819), as shown in annex 2.5.3. Historically, this has also been the case. During the reporting period, the men and women’s average weekly regular benefits increased at the same rate of 2.8%. Over time, the gap between the average weekly benefit rates of men and women is gradually closing. For example, in FY1516, the average weekly benefit rate of women was 84.6% of men’s, while in FY1920 it reached 87.6%.
This overall gap in the average weekly benefit rate between men and women is observable for all categories of hours of insurable employment worked during the qualifying period and is more apparent at lower levels of labour market attachment (consult chart 17). However, this gap was the narrowest for claimants who had between 1400 and 1539 hours of insurable employment during their qualifying period.
Text description of Chart 17
Insurable hours worked | Men's average weekly benefit rate | Women's average weekly benefit rate |
---|---|---|
420 to 559 | $391 | $306 |
560 to 699 | $433 | $346 |
700 to 839 | $434 | $346 |
840 to 979 | $461 | $378 |
980 to 1119 | $480 | $402 |
1120 to 1259 | $497 | $426 |
1260 to 1399 | $511 | $454 |
1400 to 1539 | $521 | $486 |
1540 to 1679 | $523 | $477 |
1680 to 1819 | $528 | $486 |
1820 or more | $540 | $503 |
- Note: Includes all claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Table 15 outlines the average weekly regular benefit rates by age group for men and women in the current reporting period and the previous year. Claimants aged 25 to 44 years had the highest average weekly regular benefit rate ($495) in FY1920, up from $481 in the previous year (+$14 or +2.9%). However, the highest increase was observed for those who were aged 45 to 54 years (+$15 or +3.2%). When claimants are categorized by age group and gender, it can be seen that men aged 45 to 54 years had the highest average weekly regular benefit rate ($522) in FY1920, while for women the highest benefit rate was among those aged 25 to 44 years ($459). The difference in the average weekly regular benefit rate between men and women was the highest for claimants aged between 55 years old and over, and 45 and 54 years.
Category | Men - FY1819 | Men - FY1920 | Women - FY1819 | Women - FY1920 | All - FY1819 | All - FY1920 |
---|---|---|---|---|---|---|
24 years old and under | $452 | $466 | $384 | $394 | $433 | $445 |
25 to 44 years old | $502 | $518 | $447 | $459 | $481 | $495 |
45 to 54 years old | $507 | $522 | $436 | $453 | $475 | $490 |
55 years old and over | $482 | $496 | $414 | $426 | $455 | $468 |
Canada | $493 | $507 | $432 | $444 | $469 | $483 |
- Note: Includes all claims for which at least $1 in EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
In FY1920, all claimant categoriesFootnote 39 experienced an increase in their average weekly benefit rate, with the largest increase observed for frequent claimants (+2.9%), followed by occasional claimants (+2.7%) – Consult table 16. The average weekly regular benefit rate was the highest for long-tenured workers ($515), while the lowest was for occasional claimants ($464).
Category | FY1819 | FY1920 | Change (%) |
---|---|---|---|
Long-tenured workers | $503 | $515 | +2.4% |
Occasional claimants | $452 | $464 | +2.7% |
Frequent claimants | $477 | $491 | +2.9% |
Canada | $469 | $483 | +3.0% |
- Note: Includes all claims for which at least $1 in EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
As outlined in table 17, a little less than half (49.0%) of all claims established for EI regular benefits in FY1920 received the maximum weekly benefit rate. This is steady year-over-year. The share of claims receiving the maximum weekly benefit rate established by men (60.8%) was almost double the share of such claims established by women (30.8%), which is partly attributable to the fact that a higher proportion of women work in part-time jobs than men, leading to a lower average weekly insurable earnings for themFootnote 40. By age group, the share of claims receiving the maximum weekly benefit rate was the highest for claimants aged between 25 and 44 years (53.6%), while the lowest was for those who were aged 24 years and under (33.2%). Long-tenured workers had the highest share of claims (63.7%) receiving the maximum weekly benefit rate in FY1920, followed by frequent claimants (51.9%). In addition to the 49.0% at the maximum weekly benefit rate, 8.3% of claims had a weekly benefit rate of $300 or less, 15.3% were between $301 and $400, 17.3% were between $401 and $500 and 10.1% were between $501 and the maximum weekly benefit rate ($562 in 2019 and $573 in 2020).
Category | FY1819 | FY1920 |
---|---|---|
Men | 60.4% | 60.8% |
Women | 31.3% | 30.8% |
24 years old and under | 33.3% | 33.2% |
25 to 44 years old | 53.6% | 53.6% |
45 to 54 years old | 51.4% | 51.9% |
55 years old and over | 45.1% | 44.5% |
Long-tenured workers | 64.5% | 63.7% |
Occasional claimants | 41.7% | 41.2% |
Frequent claimants | 51.5% | 51.9% |
Canada | 49.1% | 49.0% |
- Note: Includes all claims for which at least $1 in EI regular benefits was paid.
- * Consult annex 2.1 for definitions claimant categories referenced in this table.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
2.2.4 Employment Insurance regular benefit entitlement
Claimants who have successfully established an EI claim receive up to a set maximum number of weeks of EI regular benefits, known as their entitlement. This entitlement ranges between 14 and 45 weeks, and is determined by the number of hours of insurable employment accumulated during the qualifying periodFootnote 41 and the effective unemployment rate in the claimant’s EI economic region at the time the claim is established (consult annex 2.2 for the entitlement table).Footnote 42
This subsection presents detailed analysis on the duration of EI regular benefits, both maximum entitlement and actual weeks used. Statistics presented in this subsection are based on claims that were completedFootnote 43 during the fiscal year. Statistics for the reporting fiscal year are preliminary estimates and are subject to revision in the future.
Maximum and actual duration of Employment Insurance regular benefits
As mentioned, the maximum entitlement of EI regular benefits available to an EI claimant is between 14 and 45 weeks. Higher maximums are associated with greater hours of insurable employment accumulated during the qualifying period and higher regional unemployment rates. The EI program is designed to respond automatically to changes in economic conditions that affect local labour markets. In general, when a region’s unemployment rate rises, the entrance requirements are reduced and the maximum entitlement of benefits increases. Therefore, the number of weeks of EI benefits provided adjusts to the changing needs of unemployed individuals in different regions and communities with different labour market conditions.
The maximum entitlement is the maximum number of weeks during which benefits may be paid for a claim, whereas the actual duration of a claim is the number of weeks of benefits an EI claimant actually receives during a claim.Footnote 44 Average actual duration of EI regular claims is usually lower than the maximum entitlement, reflecting circumstances that can lead to reduced use of EI regular benefits over a claim’s benefit period (such as the claimant has found work and is no longer unemployed, has switched to EI special benefits or became unavailable to workFootnote 45).
As illustrated in chart 18, the average maximum entitlement of completed EI regular claims decreased from 30.3 weeks in FY1819 to 29.7 weeks in FY1920 (-0.6 weeks or -1.9%). The average actual duration, on the other hand, decreased from 18.5 weeks in FY1819 to 18.0 weeks in FY1920 (-0.5 weeks or -2.6%). This decline in both durations is attributable, in part, to the continued improvement in labour market conditions from last year in several provinces and territories, with strong employment (+1.5%) and low unemployment rates until March 2020 when COVID-19 restrictions started slowing the employment growth.
Text description of Chart 18
Year | FY1011* | FY1112 | FY1213 | FY1314 | FY1415 | FY1516* | FY1617* | FY1718* | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Average actual duration (left scale) | 24.0 | 21.6 | 20.1 | 19.7 | 19.4 | 19.3 | 20.7 | 20.3 | 18.5r | 18.0P |
Average maximum duration (left scale) | 41.7 | 35.4 | 33.0 | 32.1 | 31.6 | 32.1 | 33.7 | 32.6 | 30.3 | 29.7P |
Unemployment rate (right scale) | 7.9% | 7.5% | 7.2% | 7.0% | 6.9% | 7.0% | 6.9% | 6.1% | 5.8% | 5.8% |
- Note: Includes all claims completed during the fiscal year for which at least $1 of EI regular benefits was paid.
- * Coincides with the Employment Insurance temporary measures that increased the maximum number of weeks for which EI regular benefits could be paid.
- p Preliminary data.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data (for durations of EI regular benefits); and Statistics Canada, Labour Force Survey, Table 14-10-0017-01 (for data on unemployment rates). EI administrative data are based on a 10% sample.
The average maximum entitlement of EI regular claims completed in FY1920 varied significantly across provinces and territories, reflecting differences in regional labour market and labour force characteristics, as outlined in table 18. As in the previous year, EI regular claims established in Nunavut had the highest average maximum entitlement (39.2 weeks) in the reporting year, followed by Newfoundland and Labrador (38.6 weeks). These significantly higher maximum entitlements compared to the national average can be explained in part by the high unemployment rate observed in these jurisdictions (the unemployment rate was 13.6% in Nunavut and 12.3% in Newfoundland and Labrador in FY1920).Footnote 46 In comparison, EI regular claims established in Yukon had the lowest average maximum entitlement (26.6 weeks), followed by Quebec (28.1 weeks) and British Columbia (28.0 weeks), corresponding to the low unemployment rates generally observed in these jurisdictions (the unemployment rate in Yukon, British Columbia and Quebec was 3.6%, 5.0% and 5.3% in FY1920, respectively).Footnote 47
The average maximum entitlement of EI regular claims was higher for men, and those between 45 and 54 years of age in FY1920. Long-tenured workers generally have higher maximum entitlements than occasional and frequent claimants, as they are more likely to accumulate hours of insurable employment well above the minimum requirements for EI regular benefits (consult table 18).
Category | Average maximum entitlement (weeks) - FY1819 | Average maximum entitlement (weeks) - FY1920p | Change (%) | Average actual duration (weeks) - FY1819r | Average actual duration (weeks) - FY1920p | Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 39.9 | 38.6 | -3.2% | 28.7 | 27.0 | -5.8% |
Prince Edward Island | 33.8r | 33.5 | -0.8% | 22.3 | 22.2 | -0.6% |
Nova Scotia | 32.8 | 32.4 | -1.1% | 22.0 | 22.0 | -0.1% |
New Brunswick | 30.8 | 32.5 | +5.6% | 20.5 | 21.2 | +3.5% |
Quebec | 27.7 | 28.1 | +1.5% | 15.6 | 15.7 | +0.7% |
Ontario | 28.6 | 28.4 | -0.6% | 16.9 | 16.9 | -0.2% |
Manitoba | 30.4r | 30.2 | -0.8% | 18.6 | 18.6 | 0.0% |
Saskatchewan | 35.5 | 32.6 | -8.3% | 22.8 | 20.3 | -10.8% |
Alberta | 34.3 | 31.2 | -9.1% | 21.6 | 19.4 | -10.2% |
British Columbia | 29.4 | 28.0 | -4.9% | 17.9 | 17.0 | -5.2% |
Yukon | 27.3r | 26.6 | -2.7% | 20.0 | 19.2 | -3.9% |
Northwest Territories | 33.0 | 32.6 | -1.1% | 22.6 | 22.8 | +1.1% |
Nunavut | 42.1 | 39.2 | -6.9% | 28.1 | 28.0 | -0.4% |
Men | 30.9 | 30.4 | -1.6% | 18.8 | 18.4 | -2.0% |
Women | 29.2 | 28.6 | -2.2% | 18.0 | 17.4 | -3.5% |
24 years old and under | 29.3 | 28.6 | -2.4% | 16.6 | 16.1 | -2.8% |
25 to 44 years old | 30.4 | 29.7 | -2.2% | 17.4 | 17.1 | -1.9% |
45 to 54 years old | 30.9 | 30.4 | -1.7% | 19.0 | 18.4 | -3.4% |
55 years old and over | 29.8 | 29.4 | -1.4% | 20.5 | 20.0 | -2.6% |
Long-tenured workers* | 34.2 | 32.6 | -4.7% | 18.0 | 16.7 | -7.1% |
Occasional claimants* | 29.2 | 28.6 | -1.9% | 17.8 | 17.4 | -2.3% |
Frequent claimants* | 28.7 | 29.6 | +3.1% | 20.7 | 20.8 | 0.6% |
Canada | 30.3 | 29.7 | -1.9% | 18.5 | 18.0 | -2.6% |
- Note: Includes all claims completed during the fiscal year for which at least $1 of EI regular benefits was paid. Percentage change is based on unrounded numbers.
- * Consult annex 2.1 for definitions of EI claimant categories referenced in this table.
- P Preliminary data.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data. Statistics Canada, Labour Force Survey, Tables 14-10-0017-01 and 14-10-0292-01.
Similar to the average maximum entitlement, the average actual duration of EI regular benefits in provinces and territories are also affected by regional labour market conditions, leading to variations across provinces and territories (consult table 18). Claims established for EI regular benefits in regions with higher unemployment rates generally have a higher average actual duration than those established in regions with lower unemployment rates.
In FY1920, EI regular claims established in Nunavut closely followed by those established in Newfoundland and Labrador had the highest average actual duration (28.0 weeks and 27.0 weeks, respectively), which is partly attributable to the high unemployment rates observed in both the territory and province. In comparison, EI regular claims established in Quebec had the lowest average actual duration (15.7 weeks), corresponding to the low unemployment rate observed in this province in FY1920. Furthermore, the average actual duration of EI regular claims decreased in almost all provinces and territories in FY1920 compared to the previous year, with the exception of New Brunswick, Quebec, Manitoba and Northwest Territories where it slightly increased or remained the same. Claims established in Saskatchewan and Alberta had the largest decline on average (-2.5 weeks or -10.8% and -2.2 weeks or -10.2%, respectively), followed by EI regular claims established in Newfoundland and Labrador (-1.7 weeks or -5.8%) and British Columbia (-0.9 weeks or -5.2%).
The average actual duration of EI regular claims decreased in almost all industries in the reporting year compared to the previous year, with the exception of 5 industries. This decline was the most significant in Utilities (-2.0 weeks or -11.5%), followed by Finances and Insurance (-1.6 weeks or -5.2%). In contrast, the average actual duration of claims from Management of companies and Enterprises witnessed the highest increase (+1.5 weeks or +7.8%). Moreover, claims established by unemployed individuals from the Finance and insurance industry had the highest average actual duration (22.3 weeks) in FY1920, while those from the Educational services industry had the lowest average actual duration (11.1 weeks) due to the seasonal nature of this industry sector and the relatively short and well-defined “off-season” over the summer months.
Proportion of Employment Insurance regular benefit weeks used
The average proportion of EI regular benefit weeks used is defined as the average number of weeks of EI regular benefits received by claimants as a share of their maximum entitlement. As with the duration of EI regular benefits, a few factors may influence the proportion of entitlement used by claimants; for instance, the number of hours of insurable employment and the regional unemployment rates. Claimants with greater hours of insurable employment and those residing in regions with lower unemployment rates are more likely to find employment following a job separation and before they exhaust their weeks of EI benefits, and thus use a lower proportion of their maximum entitlement for EI regular benefits. Consequently, greater maximum entitlements are generally associated with lower proportions of regular benefits’ weeks used.
Year-over-year, the average proportion of EI regular benefit weeks used remained stable, with a slight increase from 63.6% in FY1819 to 63.7% in FY1920. Among provinces and territories, Nunavut registered the strongest growth of this average proportion (+9.6 percentage points), while Newfoundland and Labrador accounted for the largest decrease (-2.4 percentage points). Furthermore, across provinces and territories, the average proportion of regular benefits used varied from 60.4% in Quebec to 76.1% in Yukon in FY1920. This variation can be attributable to provincial and territorial differences in economic conditions.
From a gender perspective, men used slightly more of their entitlement of EI regular benefits compared to women (64.4% and 62.6%, respectively). The average proportion of regular benefit entitlement used increased with age—with the older claimants (aged 55 and over) having used the highest proportion of their regular benefits (70.6%) and the younger claimants (aged 24 years or less) having used the lowest proportion (59.8%).
In terms of claimant category, in FY1920, long-tenured workers used a lower portion of their entitlement of EI regular benefits than occasional and frequent claimants did.Footnote 48 This discrepancy between categories of claimants can be explained by the fact that long-tenured workers generally have stronger labour market attachment, tend to have more weeks of entitlement to regular benefits, and collect fewer weeks of benefits. As such, they use a lower proportion of their benefit weeks. This also applies to claimants working while on claim, as they may have a stronger labour market attachment and may also defer weeks of EI regular benefits—leading to a lower proportion of their entitlement weeks used compared to claimants who did not work while on claim (consult table 19).Footnote 49
Category | FY1516 | FY1617 | FY1718 | FY1819r | FY1920P | Change (% points) FY1819 to FY1920 |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 69.1% | 76.7% | 76.3% | 73.1% | 71.4% | -2.4 |
Prince Edward Island | 73.0% | 71.9% | 70.8% | 68.6% | 69.1% | 0.8 |
Nova Scotia | 72.1% | 72.4% | 72.7% | 70.1% | 70.6% | 0.7 |
New Brunswick | 69.4% | 71.0% | 69.9% | 70.2% | 68.6% | -2.2 |
Quebec | 63.9% | 63.7% | 62.4% | 60.6% | 60.4% | -0.3 |
Ontario | 61.8% | 62.6% | 61.0% | 61.7% | 62.5% | 1.0 |
Manitoba | 61.8% | 62.6% | 64.0% | 63.4% | 64.1% | 1.1 |
Saskatchewan | 54.0% | 63.2% | 66.3% | 65.6% | 65.1% | -0.7 |
Alberta | 52.4% | 58.7% | 64.7% | 64.6% | 64.8% | 0.3 |
British Columbia | 63.4% | 64.8% | 64.3% | 63.7% | 64.1% | 0.5 |
Yukon | 66.7% | 71.7% | 76.2% | 76.4% | 76.1% | -0.4 |
Northwest Territories | 73.8% | 65.2% | 75.2% | 71.8% | 73.0% | 1.7 |
Nunavut | 68.6% | 71.2% | 73.8% | 66.3% | 72.7% | 9.6 |
Men | 63.4% | 64.5% | 64.4% | 64.0% | 64.4% | 0.7 |
Women | 62.6% | 64.0% | 64.0% | 63.1% | 62.6% | -0.9 |
24 years old and under | 59.9% | 60.7% | 60.2% | 59.6% | 59.8% | 0.4 |
25 to 44 years old | 60.2% | 60.8%r | 61.1% | 60.1% | 60.7% | 1.0 |
45 to 54 years old | 63.5% | 65.0% | 64.1% | 63.8% | 63.0% | -1.2 |
55 years old and over | 70.1% | 72.2%r | 71.6% | 71.2% | 70.6% | -0.8 |
Long-tenured workers* | 50.0% | 51.7% | 53.3% | 53.1% | 52.9% | -0.4 |
Occasional claimants* | 63.5% | 64.9% | 64.4% | 63.7% | 63.9% | 0.4 |
Frequent claimants* | 76.2% | 78.1% | 76.7% | 74.9% | 73.7% | -1.6 |
Not working while on claim | 66.0% | 67.6% | 68.3% | 67.7% | 68.3% | 0.9 |
Working while on claim | 60.4% | 61.1% | 60.4% | 59.6% | 58.9% | -1.2 |
Canada | 63.1% | 64.3% | 64.2% | 63.6% | 63.7% | 0.1 |
- * Consult annex 2.1 for definitions of EI claimant categories referenced in this table.
- P Preliminary data.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Table 20 outlines the proportion of entitlement used by weeks of entitlement and regional unemployment rateFootnote 50 in FY1819 and FY1920. The proportion of entitlement used generally fell as entitlement weeks increased, as claimants with shorter entitlement tend to use a greater proportion of their entitlement. As shown in table 20, claimants with the lowest number of EI entitlement weeks (between 13 and 19 weeks) used 82.5% of their entitlement compared to claimants with the highest number of weeks of entitlement (45 weeks or more) who only used 49.5% of their entitlement in FY1920.
The proportion of regular benefit weeks used generally increased with the regional unemployment rate. Regions with higher unemployment rates are often characterized by weaker labour market conditions. This is partly due to a greater importance of seasonal employment, and therefore a larger share of frequent claimants in these regions relative to those with lower unemployment rates.
As frequent claimants tend to use a greater proportion of their entitlement, this translates to a higher proportion of entitlement used in EI economic regions with relatively higher unemployment rates. As illustrated in table 20, in FY1920, claimants in lower EI unemployment rate regions (6% or lower) used 61.0% of their entitlement compared to claimants in higher EI unemployment rate regions (13.1% and higher), who used 68.5% of their entitlement.
Category | Proportion of entitlement used in FY1819r | Proportion of entitlement used in FY1920p | Change (% points) FY1819 to FY1920 |
---|---|---|---|
Between 14 and 19 weeks of entitlement | 81.8%r | 82.5% | +0.7 |
Between 20 and 24 weeks of entitlement | 72.7%r | 73.0% | +0.3 |
Between 25 and 29 weeks of entitlement | 62.1%r | 62.0% | -0.1 |
Between 30 and 34 weeks of entitlement | 60.1%r | 59.0% | -1.2 |
Between 35 and 39 weeks of entitlement | 52.5%r | 54.9% | +2.4 |
Between 40 and 44 weeks of entitlement | 56.8%r | 53.5% | -3.3 |
45 weeks | 58.3%r | 49.5% | -8.8 |
Unemployment rate of 6.0% or less | 61.7%r | 61.0% | -0.7 |
Unemployment rate between 6.1% and 8.0% | 61.5%r | 64.4% | +2.9 |
Unemployment rate between 8.1% and 10.0% | 68.7%r | 64.1% | -4.6 |
Unemployment rate between 10.1% and 13.0% | 67.7%r | 66.7% | -1.0 |
Unemployment rate of 13.1% or more | 71.2%r | 68.5% | -2.7 |
Canada | 63.7%r | 63.7% | +0.1 |
- Note: Changes in percentage points are based on unrounded numbers. Includes all completed claims for which at least $1 of EI regular benefits was paid.
- P Preliminary data.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
2.2.5 Employment Insurance regular benefits and seasonal claimants
Seasonal claimants are EI claimants who had at least 3 regular or fishing claims in the 5 years preceding the reference year, with at least 2 of these claims having started during the same period of the year as the current claim.Footnote 51 The definition of seasonal claimants is not exclusive of the definitions for other EI claimant categories.Footnote 52
As outlined in the definition, claims established by seasonal claimants can include both EI regular and fishing claims. In FY1920, a total of 442,500 claims were established by seasonal claimants, up from 425,000 claims in the previous fiscal year (+4.1%). Of those, 413,400 claims (93.4%) were for EI regular benefits and the remaining 29,100 claims (6.6%) were for EI fishing benefits.Footnote 53 The analysis presented in this subsection focuses on seasonal regular claims only.Footnote 54
The number of EI seasonal regular claims increased for the third consecutive year in FY1920, after reaching a low of 380,700 claims established in FY1617 in the past 13 fiscal years. The share of seasonal regular claims of all regular claims remained relatively unchanged in FY1920 from the previous year, suggesting that the growth in the number of all regular claims established in the reporting fiscal year surpassed the growth in the number of seasonal claims (consult chart 19).
Text description of Chart 19
Year | FY0607 | FY0708 | FY0809 | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
New seasonal regular claims established (right scale) | 408.5 | 395.2 | 412.7 | 417.4 | 381.8 | 412.2 | 419.9 | 422.4 | 419.7 | 425.7 | 380.7 | 381.1 | 395.3 | 413.4 |
Seasonal regular claims as a share of regular claims (left scale) | 30.7% | 30.5% | 25.1% | 25.8% | 27.3% | 29.0% | 30.9% | 31.9% | 31.3% | 29.7% | 28.8% | 29.3% | 30.6% | 30.2% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
In FY1920, Quebec and Ontario accounted for over 6 in every 10 (61.2%) EI seasonal regular claims. Generally, the share of seasonal regular claims over total regular claims are higher in the Atlantic provinces and Quebec, compared to the Western provinces and the territories. This may be attributed to the composition of industries in these regions, which contains a large share of goods-producing industries, leading to a much higher proportion of seasonal employment in these industries relative to the rest of the country. This was observed in the reporting year as well (consult table 21).
Category | Seasonal regular claims (number) | Seasonal regular claims as a share of total seasonal claims | Seasonal regular claims as a share of total regular claims |
---|---|---|---|
Newfoundland and Labrador | 28,100 | 6.8% | 44.6% |
Prince Edward Island | 7,710 | 1.9% | 51.9% |
Nova Scotia | 24,710 | 6.0% | 39.8% |
New Brunswick | 32,990 | 8.0% | 48.0% |
Quebec | 150,240 | 36.3% | 37.5% |
Ontario | 102,940 | 24.9% | 26.1% |
Manitoba | 12,360 | 3.0% | 28.8% |
Saskatchewan | 8,480 | 2.1% | 20.8% |
Alberta | 17,760 | 4.3% | 12.6% |
British Columbia | 27,390 | 6.6% | 20.2% |
Territories | 690 | 0.2% | 17.4% |
Men | 255,940 | 61.9% | 30.8% |
Women | 157,430 | 38.1% | 29.4% |
24 years old and under | 7,960 | 1.9% | 6.5% |
25 to 44 years old | 153,940 | 37.2% | 25.5% |
45 to 54 years old | 103,210 | 25.0% | 36.0% |
55 years old and over | 148,260 | 35.9% | 41.8% |
Goods-producing industries | 181,250 | 43.8% | 34.6% |
Services-producing industries | 223,680 | 54.1% | 27.9% |
Unclassified* | 8,440 | 2.0% | 19.8% |
Canada | 413,370 | 100.0% | 30.2% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- * For some claims, this information was not available in the data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Similar to previous years, almost two-thirds (61.9%) of all seasonal regular claims in FY1920 were established by men. The shares of seasonal regular claims as a proportion of all EI regular claims established were almost the same for men and women (30.8% and 29.4% respectively). Claimants aged between 25 and 44 years established the largest share of seasonal regular claims. Notably, the share of seasonal regular claims established by the younger claimants (aged 24 years and less) was particularly low (1.9%) in FY1920, unchanged from the previous year. This is because younger individuals are more likely to quit jobs and return to school, which is an invalid reason for job separation under the Employment Insurance Act and consequently they do not qualify to receive EI benefits.Footnote 55 For this reason, younger individuals are less likely to meet the condition to be defined as seasonal claimants by having 3 or more EI regular or fishing claims in the 5 years preceding the reference year, with at least 2 of these claims having started at the same time of year as the claim in the reference year.
As outlined in table 21, the services-producing industries accounted for the largest share of seasonal regular claims (54.1%) established in FY1920. However, seasonal claims as a share of total regular claims in the goods-producing industries (34.6%) was higher than the services-producing industries (27.9%). These shares are similar to the previous years.
Seasonal workers in the Labour Force Survey
Every month, Statistics Canada provides information on employment, unemployment and other key labour market indicators by a variety of demographic characteristics through the Labour Force Survey (LFS). The LFS defines seasonal workers as those whose employment is in an industry where employment levels rise and fall with the seasons. This is different from the definition used for EI claim purposes, which is not related to a claimant’s industry of employment, but rather is based on the claimant’s recent history of EI regular or fishing benefits usage.
According to the LFS, there were 398,700 seasonal workers in Canada* in FY1920, down 6.6% from the previous year. The seasonal workers represented 2.5% of total employment and 19.3% of temporary employment in FY1920, down slightly from FY1819. In Atlantic provinces, seasonal workers accounted for 5.4% of total employment, relatively unchanged from the previous year. In comparison, seasonal workers accounted for 2.3% of total employment in the Western provinces in FY1920. Compared to the previous year, Alberta had the largest increase in seasonal employment (+3.5%) in FY1920, whereas the largest decrease was observed in Manitoba (-18.5%), followed by Saskatchewan (-16.8%).
Historically, younger individuals aged between 15 and 24 years are more likely to work in seasonal jobs, attributed to summer employment patterns for students. Similar to the pattern observed for EI seasonal regular claims, men are also over-represented in seasonal employment—in FY1920, they accounted for 62.9% of all seasonal employment.
Seasonal employment is largely concentrated in the services-producing sector. In FY1920, nearly 2 in 3 (65.8%) of all seasonal jobs were in the services-producing sector. The Information, culture and recreation industry (18.3% of all seasonal jobs) and the Wholesale and retail trade industry (10.2% of all seasonal jobs) accounted for over a quarter of all seasonal jobs in Canada in FY1920. On the other hand, the Construction industry in the goods-producing sector accounted for nearly one-fifth (18.9%) of all seasonal jobs in FY1920.
- * Statistics Canada, Labour Force Survey, Table 14-10-0071-01.
Generally, the number of EI seasonal regular claims established throughout the year varies by quarter; for instance, nearly half (48.5%) of all seasonal regular claims established in FY1920 were established in the third quarter (October to December) of the fiscal year, while just over a quarter (27.8%) were established in the second quarter (July to September). The greater number of claims established in the third quarter of the fiscal year corresponds to the slowdown in many seasonal industries during that time of year. As illustrated in chart 20, the share of seasonal regular claims established in the third quarter was the highest in the territories, followed by Quebec and the Atlantic provinces. Notably, the share of seasonal regular claims established in the second quarter of the fiscal year was particularly higher in Ontario and Western provinces relative to the rest of the country.
Text description of Chart 20
Region | Q1 (April to June) | Q2 (July to September) | Q3 (October to December) | Q4 (January to March) |
---|---|---|---|---|
Atlantic provinces | 18.5% | 22.9% | 40.7% | 17.9% |
Quebec | 16.7% | 23.4% | 43.9% | 16.0% |
Ontario | 16.5% | 28.8% | 34.0% | 20.7% |
Western provinces | 18.7% | 26.8% | 34.5% | 20.0% |
Territories | 23.9% | 20.4% | 37.8% | 17.9% |
Canada | 17.5% | 25.7% | 38.1% | 18.7% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
When analyzed by gender, seasonal regular claims by men are more likely to be established in the third quarter, while those by women are more likely to be established in the second quarter of the fiscal year. By age group, seasonal regular claims by younger claimants (aged below 25 years) are least likely to be established in the first quarter of the year, but that probability increases with the age of claimants. By industry classification, seasonal regular claims are more likely to be established in the third quarter by claimants in the goods-producing industries, while claimants in the services-producing industries are more likely to establish claims in the second quarter of the fiscal year. This is likely due to the summer “off-season” in the Educational services industry, reflecting school closures during that period of the year (consult table 22).
Category | Q1 (April to June) | Q2 (July to September) | Q3 (October to December) | Q4 (January to March) |
---|---|---|---|---|
Men | 8.9% | 13.5% | 61.5% | 16.1% |
Women | 14.4% | 51.1% | 27.5% | 6.9% |
24 years old and under | 6.4% | 13.8% | 62.4% | 17.3% |
25 to 44 years old | 8.8% | 27.2% | 51.4% | 12.7% |
45 to 54 years old | 11.4% | 32.9% | 44.4% | 11.2% |
55 years old and over | 13.3% | 25.7% | 47.7% | 13.2% |
Goods-producing-industries | 6.8% | 12.1% | 64.8% | 16.4% |
Services-producing industries | 14.7% | 41.2% | 34.8% | 9.3% |
Unclassified* | 5.6% | 12.8% | 63.5% | 18.1% |
Canada | 11.0% | 27.8% | 48.5% | 12.6% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- * For some claims, this information was not available in the data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Duration of Employment Insurance regular benefits among seasonal claimants
The average maximum entitlementFootnote 56 of seasonal regular claims completedFootnote 57 in FY1920 was 29.3 weeks, up from 28.2 weeks from the previous year (+1.1 weeks or +3.8%). In comparison, the average maximum entitlement of completed non-seasonal regular claims was 29.9 weeks in FY1920, down from 31.1 weeks (-1.2 weeks or -3.9%) from the previous year.
The average actual durationFootnote 58 of seasonal regular claims completed in FY1920 was 16.7 weeks, increasing slightly (+0.5 weeks or +3.1%) from 16.2 weeks observed in the previous fiscal year. In comparison, the average actual duration of non-seasonal claims completed in FY1920 was 18.6 weeks, down slightly (-0.8 weeks or -4.0%) from 19.4 weeks observed in FY1819. The average maximum duration and the average actual duration of regular benefits are generally shorter for seasonal regular claimants than for non-seasonal regular claimants, reflecting the fact that seasonal claimants typically accumulate fewer hours of insurable employment prior to establishing a claim than non-seasonal claimants. In the reporting fiscal year, the increases in the average maximum entitlement and average actual duration for seasonal regular claimants are likely due to the additional weeks of EI regular benefits provided to eligible seasonal claimants under a pilot project introduced in August 2018.
Pilot project: Additional weeks of EI regular benefits for seasonal claimants in 13 EI economic regions
Following the commitment made in Budget 2018 to better support seasonal workers over the next 2 years, a pilot project (no. 21) was introduced in August 2018 to provide additional weeks of EI regular benefits to eligible seasonal claimants in 13 EI economic regions*. Under this pilot project, eligible seasonal claimants in these 13 EI regions who start a benefit period between August 5, 2018 and October 30, 2021 would be eligible for up to 5 additional weeks of EI regular benefits, up to a maximum of 45 weeks.
A total of 54,500 claims** that were established by seasonal claimants on or after August 5, 2018 and had completed by March 31, 2020 in these 13 EI economic regions received additional weeks of EI regular benefits under the pilot. The largest share of these seasonal claims was from Central Quebec (18.8%), followed by Restigouche-Albert (15.3%), Lower Saint Lawrence and North Shore (13.6%), Newfoundland and Labrador (11.8%) and Western Nova Scotia (10.3%). Seasonal claims from the other 8 affected EI economic regions combined accounted for less than one-third (30.2%) of the total seasonal claims that received additional weeks of EI regular benefits under the pilot.
A majority of the claims (58.6%) received EI regular benefits for the full additional 5 weeks. On average, eligible seasonal claims received 4.0 additional weeks*** of EI regular benefits. Almost all of these eligible claims were entitled to receive the full additional five weeks. Only a few claims were entitled to receive less than the full additional five weeks because otherwise that would have put them over the maximum entitlement limit of 45 weeks.
As of March 31, 2020, an additional $84.2 million had been paid to eligible seasonal claimants who received additional weeks of EI regular benefits under the pilot. On average, each seasonal regular claim with additional benefit weeks received $1,544 under the pilot during this period.
As expected, the additional weeks of EI regular benefits provided under the pilot significantly lowered the exhaustion rate in the affected regions. In FY1920, the exhaustion rate of completed seasonal regular claims in the 13 EI economic regions affected by the pilot was 17.4%, whereas the exhaustion rate of completed seasonal regular claims outside these regions was 23.7%.*** The pilot project also had an impact on seasonal “gappers”—claimants who exhausted their entitlement weeks and had to go through a period without income from employment or EI benefits. The number of seasonal gappers in the regions affected by the pilot project declined significantly (-31.4%) in FY1920 from the previous fiscal year, likely because of the additional weeks of EI regular benefits provided under the pilot. In comparison, the number of seasonal gappers in regions unaffected by the pilot declined only slightly (-2.0%) during this period (see subsection 2.2.6 for detailed discussion on gappers).
- * These selected EI economic regions are: Newfoundland-Labrador (excluding St. John’s), Charlottetown, Prince Edward Island, Eastern Nova Scotia, Western Nova Scotia, Madawaska-Charlotte, Restigouche-Albert, Gaspésie-Îles-de-la-Madeleine, Central Quebec, North Western Quebec, Lower Saint Lawrence and North Shore, Chicoutimi-Jonquière and Yukon (excluding Whitehorse).
- ** Based on a 100% sample of Employment Insurance (EI) administrative data.
- *** Based on preliminary data.
Overlapping definitions of seasonal and frequent claimants
Frequent EI claimants are defined as those who have had 3 or more regular or fishing claims and have collected benefits for more than 60 weeks in total within the past 5 years. There is a significant overlap between frequent and seasonal claimants.Footnote 59
Chart 21 illustrates the number of EI regular claims established by frequent and seasonal claimants since FY0910. During this period, in terms of EI regular claims, the number of seasonal claimants were much higher than the frequent claimants. This suggests that many seasonal regular claimants collect less than 60 weeks of EI regular benefits over the course of 5 fiscal years, while a large proportion of frequent claimants can also be considered seasonal. The number of seasonal claimants and those who can be considered as both seasonal and frequent increased in FY1920 compared to the previous year (+4.6% and +2.2%, respectively). However, the number of frequent claimants decreased slightly (-3.3%) during this period (consult chart 21). This suggests that the share of frequent claimants who can also be considered seasonal increased in FY1920 compared to the previous fiscal year. In FY1920, the number of claims (240,600) established by claimants who can be classified as both seasonal and frequent were almost 1.4 times the number of claims established by seasonal claimants that were non-frequent claimants (172,800) (consult chart 22).
Text description of Chart 21
Year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Frequent claimants | 300.4 | 309.2 | 321.0 | 319.6 | 309.8 | 304.7 | 307.8 | 285.7 | 290.1 | 297.3 | 287.6 |
Seasonal claimants | 417.4 | 381.8 | 412.2 | 419.9 | 422.4 | 419.7 | 425.7 | 380.7 | 381.1 | 395.3 | 413.4 |
Seasonal and frequent claimants | 251.8 | 259 | 265.6 | 266.1 | 257.9 | 253.7 | 258.6 | 228.9 | 227.5 | 235.4 | 240.6 |
- * Consult annex 2.1 for definitions of frequent and seasonal claimants referenced in this chart.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Text description of Chart 22
Category | Frequent, non-seasonal | Frequent and seasonal | Non-frequent, seasonal |
---|---|---|---|
Level of claims | 47,030 | 240,550 | 172,820 |
Share of total frequent and seasonal claims | 10.2% | 52.2% | 37.5% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- * Consult annex 2.1 for definitions of frequent and seasonal claimants referenced in this chart.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Table 23 outlines the characteristics of the 2 non-overlapping populations by claimant type (that are, the frequent, non-seasonal claimants and the non-frequent, seasonal claimants) in terms of duration, proportion of regular benefits paid and exhaustion rate in FY1920. Frequent non-seasonal claimants were paid, on average, for a much longer duration, used a greater proportion of their regular weeks of entitlement and were more likely to exhaust their entitlement than non-frequent, seasonal claimants. However, once defined as frequent claimants, the differences in average duration, the proportion of regular weeks paid and the exhaustion rate between non-seasonal and seasonal claimants becomes less significant.
Claimant type | Average duration of EI regular benefits (in weeks)P | Proportion of regular benefits paid (%)P | Exhaustion rate (%)P |
---|---|---|---|
Frequent, non-seasonal | 21.9 | 74.6% | 34.5% |
Frequent and seasonal | 20.6 | 73.5% | 29.5% |
Non-frequent, seasonal | 10.9 | 40.6% | 9.3% |
- Note: Completed claims include those that are terminated and those that are dormant and remained inactive as of August the following fiscal year.
- * Consult annex 2.1 for definitions of frequent and seasonal claimants referenced in this chart.
- P Preliminary data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data
2.2.6 Exhaustion of Employment Insurance regular benefits
As mentioned in subsection 2.2.4, entitlement for EI regular benefits depends on 2 factors—the regional unemployment rate where the applicants lived at the time of establishing the claim and the number of hours of insurable employment accumulated in the previous 52 weeks or since the establishment of their last claim, whichever is shorter. Generally, the entitlement for EI regular benefits ranges from 14 weeks to a maximum of 45 weeks.Footnote 60 Claimants have exhausted their entitlement to EI regular benefits when the number of weeks of benefits received (actual duration) equals the entitlement available over the course of the benefit period (the period during which an EI claimant can receive EI benefits). The incidence of exhaustion of regular benefit entitlement can inform analysis related to the adequacy of EI regular benefits provided to those looking for suitable employment following a job separation.
Since a claim must be completedFootnote 61 in order to determine whether the entitlement is exhausted or not, the analysis in this section focuses on EI regular claims completed during FY1920, regardless of their start date.
Entitlement exhaustion of Employment Insurance regular benefits
Of the total EI regular claims completed in the reporting fiscal year, 32.8% exhausted their entitlement for EI regular benefits, relatively unchanged from the previous year. The number of EI regular claims that exhausted their entitlement decreased in FY1920 for the third consecutive year, down by 6.0% from FY1819. This decline in the number of EI regular claims with entitlement exhaustion can be attributed to the continued strong economic conditions observed for most of FY1920, before the substantial slowdown in March 2020 due to the COVID-19 pandemic. The Canadian labour market experienced a strong employment growth and the unemployment rate reached the lowest level (5.7%)Footnote 62 in 2019—the lowest recorded since 1976—before starting to increase in March 2020.Footnote 63 Because of the strong demand in the labour market and low unemployment rates observed for past few years, unemployed individuals who received EI regular benefits following a job separation were able to find employment relatively quickly.Footnote 64 This is reflected by the downward trend observed for the entitlement exhaustion rate since FY1617 (consult chart 23).
Text description of Chart 23
Year | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|
Entitlement exhausted claims (in thousands) (left scale) | 417.8 | 460.0 | 455.2 | 458.1 | 456.0 | 425.8 | 486.1 | 484.0 | 442 | 415.4 |
Entitlement exhaustion rate (right scale) | 26.0% | 30.0% | 31.8% | 33.5% | 33.3% | 31.2% | 34.9% | 34.1% | 33.0% | 32.8% |
- r Revised data.
- p Preliminary data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
In FY1920, the entitlement exhaustion rate remained relatively unchanged in most provinces except for Newfoundland and Labrador, Nova Scotia and New Brunswick where it decreased, and Yukon and Nunavut where it increased. As seen in previous years, claims established by women tend to have a higher entitlement exhaustion rate compared to claims established by men. This may be due to the reason that women, on average, tend to qualify for fewer weeks of entitlement for EI regular benefits. A higher proportion of women work in part-time and/or temporary jobs than men, and thus accumulate fewer hours of insurable employment on average. However, this trend was reversed in FY1920, as the entitlement exhaustion rate of EI regular claims established by women was slightly less than that by men. This is likely due to the increasing share of women in full-time employment.Footnote 65
By age group, the entitlement exhaustion rates for claims established by older claimants aged 55 years and over decreased slightly in FY1920 from the previous year, while it remained unchanged for other age groups. By EI claimant category, the entitlement exhaustion rates remained relatively unchanged for claims established by long-tenured workers and occasional claimants, but decreased for claims established by frequent claimants. This is partly due to the additional weeks of EI regular benefits provided to eligible seasonal claimantsFootnote 66 in 13 EI economic regions under a pilot projectFootnote 67 (no.21) and the significant overlap between frequent and seasonal claimants.Footnote 68
Category | Entitlement exhaustion rate FY1819r |
Entitlement exhaustion rate FY1920P |
Entitlement exhaustion rate Change (% points) FY1819 to FY1920 |
Benefit period exhaustion rate FY1819 |
Benefit period exhaustion rate FY1920P |
Benefit period exhaustion rate Change (% points) FY1819 to FY1920 |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 36.2% | 30.5% | -5.7 | 23.2%r | 28.1% | +4.8 |
Prince Edward Island | 32.3% | 32.5% | +0.2 | 20.6%r | 20.2% | -0.4 |
Nova Scotia | 37.9% | 35.9% | -2.0 | 21.3%r | 21.5% | +0.2 |
New Brunswick | 35.0% | 31.2% | -3.8 | 21.4%r | 23.1% | +1.7 |
Quebec | 29.8% | 29.0% | -0.8 | 20.5%r | 22.0% | +1.5 |
Ontario | 32.7% | 33.7% | +1.1 | 16.3%r | 17.5% | +1.2 |
Manitoba | 33.1% | 34.6% | +1.5 | 19.3%r | 21.0% | +1.7 |
Saskatchewan | 33.7% | 34.9% | +1.2 | 16.4%r | 20.9% | +4.5 |
Alberta | 35.7% | 37.9% | +2.1 | 12.9%r | 17.0% | +4.1 |
British Columbia | 34.9% | 35.4% | +0.4 | 16.1%r | 19.2% | +3.0 |
Yukon | 44.4% | 48.9% | +4.4 | 13.0%r | 16.5% | +3.5 |
Northwest Territories | 45.4% | 48.2% | +2.8 | 16.1%r | 10.4% | -5.7 |
Nunavut | 37.3% | 52.9% | +15.7 | 8.8% | 12.9% | +4.1 |
Men | 32.7% | 33.0% | +0.3 | 19.1%r | 21.2% | +2.1 |
Women | 33.5% | 32.6% | -0.8 | 16.8%r | 18.7% | +1.9 |
24 years old and under | 33.9% | 34.1% | +0.2 | 16.1%r | 18.3% | +2.3 |
25 to 44 years old | 30.0% | 30.7% | +0.8 | 18.0%r | 20.0% | +2.1 |
45 to 54 years old | 31.4% | 30.8% | -0.7 | 19.7%r | 21.4% | +1.7 |
55 years old and over | 39.3% | 37.6% | -1.7 | 18.0%r | 20.1% | +2.1 |
Long-tenured workers | 26.3% | 27.5% | +1.2 | 18.2%r | 20.1% | +1.9 |
Occasional claimants | 35.5% | 36.0% | +0.5 | 16.8%r | 18.8% | +1.9 |
Frequent claimants | 34.1% | 30.5% | -3.6 | 21.5%r | 23.7% | +2.2 |
Canada | 33.0% | 32.8% | -0.2 | 18.2%r | 20.2% | +2.0 |
- Note: Change in the percentage points is based on unrounded numbers. Includes all completed claims for which at least $1 of EI regular benefits was paid.
- * Consult annex 2.1 for definitions of EI claimant categories referenced in this table.
- r Revised data
- P Preliminary data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data
Impact of receiving EI regular benefits on post-claim employment income
A recent internal analysis examined the pre-claim and post-claim employment income levels of EI claimants who established a regular claim in 2014, to better understand the impact of receiving EI benefits on post-claim job outcomes. It was found that 36% of regular claimants who exhausted their entitlement had a lower employment income level after their claim than what they earned before, compared to 28% for those who did not exhaust their entitlement. This result holds true even when controlling for various factors that could affect post-claim employment income (such as gender, age, province and industry). Regular claimants who were female, older, long-tenured workers or with lower skills were also more likely to experience a drop in post-claim income (after controlling for various factors).
Entitlement exhaustion versus benefit period exhaustion
While claims may end when the number of weeks of benefits received equals the entitlement over the course of the benefit period, they may also end when their benefit period ends before all potential regular benefit weeks of entitlement have been paid.Footnote 69 When this occurs, unless the claimant has stopped filing EI biweekly reports,Footnote 70 the claim is considered to have exhausted its benefit period. Generally, the benefit period exhaustion rate is lower than the entitlement exhaustion rate. In FY1920, 20.2% of all completed EI regular claims exhausted their benefit period, up slightly from the previous year (consult table 24).
Example: Entitlement exhaustion versus benefit period exhaustion
David works as a full-time sales person at a car dealership in Saskatoon, Saskatchewan. Due to unfavourable economic conditions, car sales in Saskatoon has plummeted and he is laid off on September 6, 2019. Following the job separation, David applies for EI regular benefits. After carefully going through his application, Service Canada decides that David is eligible and entitled receive to 19 weeks of EI regular benefits based on his accumulated hours of insurable employment during the qualifying period and the regional unemployment rate. Service Canada establishes David’s benefit period (during which benefits may be collected) starting the week of September 22, 2019 for a length of 52 weeks. David starts receiving EI regular benefits in the week staring September 22, 2019.
Scenario: Entitlement exhaustion
David is unable to find suitable employment for the next 19 weeks since starting to receive EI regular benefits. As of February 1, 2020, he has received his full entitlement of 19 weeks of EI regular benefits. In this situation, David is said to have exhausted his regular benefit entitlement as the number of weeks of benefits received equals the entitlement available during the benefit period. This is illustrated below.
Scenario: Benefit period exhaustion
In this scenario, David starts receiving EI regular benefits in the week starting September 22, 2019 and continues for the next 15 weeks until January 4, 2020. At that point, David decides to switch to parental benefits, as he became a parent on December 30, 2019. David shared his parental benefits with his spouse and received benefits for the next 37 weeks until September 19, 2020. David also found new employment as of September 20, 2020. As David’s benefit period ended before he could collect all 19 weeks of EI regular benefits that he was entitled to, in this case David is said to have exhausted his benefit period. This is illustrated below.
The circumstances that result in benefit period exhaustion are generally different from those associated with entitlement exhaustion. Many variables influence benefit period exhaustion, including regular benefit entitlement, weeks worked while on claim (leading to deferred benefit weeks) and the use of special benefits (adding another type of entitlement to the claim).
Table 25 outlines different characteristics of completed EI regular claims by exhaustion type in the reporting year and the previous year. When completed EI regular claims are categorized by their seasonality status, it can be seen that seasonal claims have lower entitlement exhaustion rates than non-seasonal claims, but this is reversed when benefit period exhaustion is considered. This implies that seasonal claimants are less likely to collect EI regular benefits for the full duration of their entitlement than non-seasonal claimants are, most likely due to the predictability of their work pattern.Footnote 71 In FY1920, entitlement exhaustion rates increased slightly for claims in low unemployment regions (6.0% or less) from the previous year, but decreased in all other regions. However, the benefit period exhaustion rates increased across all regions in FY1920 from the previous year.
The share of completed EI regular claims that exhausted their entitlement or their benefit period remained relatively unchanged in FY1920 from the previous year. Notably, a much greater proportion of claims that exhausted the benefit period were associated with at least 1 week worked while on claim compared with claims that were completed by entitlement exhaustion. This is likely due to the Working While on Claim provision that allows to defer weeks of entitlement that can be used later in the benefit period. Claims that exhausted the benefit period through Working While on Claim had, on average, a greater number of weeks worked while on claim compared with claims that exhausted their entitlement (consult table 25).
Because a larger share of claims that exhaust their benefit period also worked while on claim, claimants who exhaust their benefit period are thus more likely to accumulate enough hours of insurable employment during their benefit period to meet the eligibility requirements to establish a new claim following the end of their claim. As a result, a much greater proportion of claimants who exhausted their benefit period requalified for a new claim within 4 weeks following the termination of their claim (71.2% in FY1920 compared with 8.8% of completed claims that exhausted their entitlement)—consult table 25.
In FY1920, the share of completed EI regular claims combined with EI special benefits that exhausted their benefit period (18.2%) was greater compared with mixed claims that exhausted their entitlement (11.5%). Claims that exhausted their benefit period also received fewer weeks of EI regular benefits (16.7 weeks) compared to claims that exhausted their entitlement (25.5 weeks). Completed EI regular claims that exhausted their benefit period used, on average, just over half (53.4% in FY1920) of their entitlement, down slightly from the previous year (consult table 25).
Category | Entitlement exhausted claims FY1819 | Entitlement exhausted claims FY1920 | Change FY1819 to FY1920 |
Benefit period exhausted claims FY1819 | Benefit period exhausted claims FY1920 | Change FY1819 to FY1920 |
---|---|---|---|---|---|---|
Exhaustion rate – overall | 33.0% | 32.8% | -0.2 % points | 18.2% | 20.2% | +2.0 % points |
Exhaustion rate – seasonal claims | 23.6% | 21.4% | -2.2 % points | 24.6% | 26.8% | +2.3 % points |
Exhaustion rate – non-seasonal claims | 36.8% | 37.9% | +1.1 % points | 15.6% | 17.3% | +1.6 % points |
Unemployment rate of 6.0% or less | 32.2% | 34.1% | +1.8 % points | 17.7% | 21.2% | +3.6 % points |
Unemployment rate from 6.1% to 8.0% | 36.0% | 34.5% | -1.5 % points | 21.1% | 21.5% | +0.4 % points |
Unemployment rate from 8.1% to 10.0% | 33.0% | 30.4% | -2.6 % points | 19.1% | 23.6% | +4.5 % points |
Unemployment rate from 10.1% to 13.0% | 33.8% | 27.8% | -6.1 % points | 23.1% | 27.2% | +4.0 % points |
Unemployment rate of 13.1% or above | 33.0% | 32.8% | -0.2 % points | 18.2% | 20.2% | +2.0 % points |
Proportion of claims involving at least 1 week worked while on claim | 33.8% | 32.6% | -1.2 % points | 70.6% | 69.6% | -1.0 % points |
Requalification rate for EI regular benefits* | 10.0% | 8.8% | -1.2 % points | 69.9% | 71.2% | +1.3 % points |
Average weeks worked while on claim** | 11.5 | 11.0 | -0.5 weeks | 14.9 | 13.6 | -1.3 weeks |
Average weeks of EI regular benefits paid | 26.3 | 25.5 | -0.8 weeks | 17.8 | 16.7 | -1.0 weeks |
Share of mixed claims (EI regular and special benefits) | 11.9% | 11.5% | -0.4 % points | 18.5% | 18.2% | -0.3 % points |
Average proportion of regular entitlement used | 100.0% | 100.0% | 0.0 % points | 55.4% | 53.4% | -2.1 % points |
- Note: Includes all completed claims for which at least $1 of EI regular benefits was paid.
- r Revised data
- P Preliminary data.
- * The requalification rate refers to the proportion of claimants who are able to requalify for a new claim within 4 weeks following the termination of their claim.
- ** Includes only claims with at least 1 week worked while on claim. Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Entitlement exhaustion of Employment Insurance regular benefits: Seasonal and non-seasonal gappers
As mentioned, entitlement exhaustion rates are generally lower for seasonal claims than non-seasonal claims (consult table 25). This is most likely attributable to the fact that many seasonal workers are laid off temporarily and are likely to find work in the same industry and possibly with the same employer the following season.
Claimants who have exhausted their entitlement weeks may go through a period without income from either employment or EI benefits. These claimants, known as “gappers”, have not accumulated sufficient hours of insurable employment during their qualifying period for their entitlement to cover the entire duration of their unemployment spell. While this is more common for seasonal claimants due to their work pattern, it can affect non-seasonal claimants as well.
Starting with the FY1718 EI Monitoring and Assessment Report, the definition of gappers was broadened to better represent the levels of EI claimants experiencing periods with no income. To be considered a gapper, claimants must have established a regular claim during the reporting fiscal year, have completed their previous regular benefit claim during the reporting fiscal year or the previous fiscal year and must have experienced a period without employment income or EI income immediately following the exhaustion of the preceding claim. The period with no income must be 15 weeks or less. Of the 1.37 million regular claims established in FY1920, approximately 75,440 (5.5%) experienced a gap in income. Of them, around 4 in 10 (43.6%) claims were established by seasonal claimants. The notable decrease (-9.9%) in the number of gappers nationally in FY1920 from the previous year is largely due to the drop in the number of seasonal gappers (-13.7%). This is likely explained by the seasonal pilot projectFootnote 72 introduced in August 2018 that provided additional weeks of EI regular benefits to eligible seasonal claimants in 13 EI economic regions, as receiving addition weeks of EI regular benefits through the pilot project reduces the length of the period without any income. Consequently, the number of seasonal gappers in these regions decreased significantly (-31.4%) from FY1819 to FY1920, whereas the number of gappers in EI economic regions outside the scope of this pilot project changed only slightly (-2.0%) during this period. The average length of the gap was 5.2 weeks for all gappers in the reporting year—this has remained relatively unchanged in the past 5 years (consult table 26).
Claimant type | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 | Change (%) FY1819 to FY1920 |
---|---|---|---|---|---|---|
Seasonal | 35,020 | 30,720 | 33,020 | 38,100 | 32,880 | -13.7% |
Non-seasonal | 40,470 | 36,580 | 41,820 | 45,650 | 42,560 | -6.8% |
Total | 75,490 | 67,300 | 74,840 | 83,750 | 75,440 | -9.9% |
- Notes: Includes claims for which at least $1 of EI regular benefits was paid. Percentage change is based on unrounded numbers.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Chart 24 illustrates the regional distribution of gappers in FY1920. Five of the 10 provinces and the territories were overrepresented among gappers compared to the overall national share of gappers (5.5%). This is mostly attributable to the composition of the local labour markets.
Text description of Chart 24
Province/territory | Gapper claims | Share of all regular claims |
---|---|---|
Newfoundland and Labrador | 4,030 | 6.4% |
Prince Edward Island | 1,360 | 9.2% |
Nova Scotia | 5,340 | 8.6% |
New Brunswick | 5,010 | 7.3% |
Quebec | 21,660 | 5.4% |
Ontario | 18,190 | 4.6% |
Manitoba | 2,600 | 6.1% |
Saskatchewan | 2,260 | 5.5% |
Alberta | 7,470 | 5.3% |
British Columbia | 7,200 | 5.3% |
Territories | 320 | 8.1% |
Canada | 75,440 | 5.5% |
- Note: Includes claims for which at least $1 of EI regular benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
2.2.7 Working while on claim
The purpose of the Working While on Claim (WWC) provision of the Employment Insurance Act is to encourage claimants to accept available jobs while receiving EI benefits to enable them to earn additional income while on claim, maintain their skills and remain connected to the labour market. The provision, which existed under legislation or pilot projects,Footnote 73 determines how EI benefits will be adjusted to reflect earned employment income. It allows claimants to keep their total employment earnings and continue to receive a portion of their EI benefits. If benefits are reduced to zero, then the week of entitlement is deferred and can be used later during the benefit period.Footnote 74
In FY1920, the effective WWC provision was the “50 cents on the dollar rule” that became a permanent part of the EI program as of August 12, 2018. Under this rule, claimants can keep 50 cents of their EI benefits for every dollar earned while on claim, up to a maximum of 90% of the average weekly insurable earnings used to calculate their weekly benefit rate, before benefits are deducted dollar-for-dollar.Footnote 75
Some eligible claimantsFootnote 76may choose a temporary alternate earnings rule that allows them to earn $75 per week or 40% of their weekly benefits, whichever is greater, without their EI benefits being reduced; any amount earned above is deducted from their benefits dollar-for-dollar. This alternate earnings rule is in place for a 3-year transition period until August 14, 2021.
In FY1920, the WWC provision applied to EI claimants receiving regular, fishing, sickness, maternity, parental, compassionate care and family caregiver benefits for children or adults.Footnote 77
This subsection focuses on claims and their beneficiaries who reported employment income from part-time or full-time work in at least 1 week while on claim, regardless of whether the EI benefits paid for those weeks were completed in full, partial or zero. To make the text easier to read, these claims and their beneficiaries are referred to in this subsection as having "at least 1 week worked while on claim" even if the week or weeks of work were partially completed (for example, 2 days of work).
It is important to note that the WWC provisions also apply to many other forms of income, such as pensions or severance pay, which are not included in the results presented.
Number of Employment Insurance regular claims and claimants working while on claim
The use of the WWC provision is presented using 2 different approaches: one based on claimants who had an open regular claimFootnote 78 during the reporting fiscal year (regardless of the year in which their claim was established) and the other based on regular claims completed in the reporting fiscal year. These 2 approaches provide different but complementary WWC results. The first approach, which focuses on the WWC activity in the fiscal year under review, better reflects the labour market conditions and WWC provisions in effect during the reporting period. The second approach provides a better estimate of the relative incidence of WWC because it is based on the entire duration of the claim (rather than a specific time period as under the first approach).
Of all EI regular benefit claimants with an open claim in FY1920, 754,500 (or 43.0%) worked at least 1 week while on claim in that fiscal year (consult table 27). In that same period, 48.9% of all completed regular claims included at least 1 week worked while on claim.
Category | Number of claimants with an open claim during the fiscal year who have worked at least 1 week while on claim during the fiscal year | Share (%) of claimants with an open claim during the fiscal year who have worked at least 1 week while on claim during the fiscal year | Number P of completed claims with at least 1 week worked while on claim over a claim’s life | Share (%) P of completed claims with at least 1 week worked while on claim over a claim’s life |
---|---|---|---|---|
Newfoundland and Labrador | 42,550 | 53.9% | 38,710 | 60.5% |
Prince Edward Island | 7,970 | 43.5% | 7,140 | 47.9% |
Nova Scotia | 36,760 | 46.8% | 32,140 | 52.9% |
New Brunswick | 42,920 | 51.2% | 37,750 | 57.1% |
Quebec | 255,480 | 51.4% | 205,680 | 55.8% |
Ontario | 186,900 | 36.5% | 150,110 | 41.9% |
Manitoba | 20,250 | 35.6% | 16,910 | 40.7% |
Saskatchewan | 19,070 | 34.7% | 16,560 | 41.9% |
Alberta | 69,190 | 36.0% | 55,670 | 44.4% |
British Columbia | 71,620 | 40.4% | 56,830 | 46.3% |
Territories | 1,790 | 31.6% | 1,840 | 43.3% |
Men | 442,370 | 41.2% | 359,750 | 46.9% |
Women | 312,130 | 45.8% | 259,590 | 52.1% |
24 years old and under | 63,320 | 39.5% | 53,750 | 48.6% |
25 to 44 years old | 356,540 | 45.9% | 290,860 | 52.7% |
45 to 54 years old | 184,140 | 50.1% | 156,050 | 57.1% |
55 years old and over | 150,500 | 33.4% | 118,680 | 36.0% |
Seasonal* | n/a | n/a | 216,500 | 55.9% |
Non-seasonal* | n/a | n/a | 402,840 | 45.9% |
Canada | 754,500 | 43.0% | 619,340 | 48.9% |
- Note: Includes all claimants (or claims) to which at least $1 of regular benefits was paid.
- P Preliminary.
- * Consult annex 2.1 for definitions of seasonal claims referenced in this table.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The proportion of regular benefit claimants (or completed claims) with at least 1 week worked while on claim varies by, among other things, region and industry, which may be partly explained by local labour market conditions in the regions where the claimants resided. The greater shares of EI regular benefit claimants who worked at least 1 week while on claim are related to regions and industries that have a higher proportion of seasonal claimants, such as the Atlantic provinces (50.2%), Quebec (51.4%), and the Educational services (59.4%) and Construction (49.2%) industries. This may be due in part to limited available hours of work during the “off-peak season” and better opportunities for re-employment should the benefit period of claimants exceed the “off-peak season” duration.
Weeks worked while on claim
This subsection on the WWC provision focuses on the frequency of WWC measured in terms of the proportion and average number of weeks worked while on claim. Specifically, it examines whether employment income was reported during a week in which a claimant was entitled to receive EI regular benefits.
The first measure is the proportion of weeks worked while on claim among weeks for which claimants were entitled to receive EI regular benefits in the reporting fiscal year (regardless of the year in which the claim was established). This measure of the WWC frequency reflects the labour market conditions and WWC provisions in effect during the reporting period. The proportion of weeks worked while on claim was 23.6% in FY1920, which remained relatively unchanged from the previous fiscal year (consult table 28).
The second measure is the average number of weeks worked while on claim for EI regular claims completed during the fiscal year under review with at least 1 week of work during the entire claim period. This measure of WWC frequency is based on the entire duration of the claim, rather than a specific reference period. The average number of weeks worked while on claim was 10.6 weeks in FY1920, virtually unchanged from 11.0 weeks in FY1819 (consult table 28).
Category | Proportion of weeks worked* FY1819 r1 |
Proportion of weeks worked* FY1920 |
Change (p.p.) | Average number of weeks worked FY1819 r |
Average number of weeks worked FY1920 P |
Change (number of weeks) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 27.0% | 27.6% | +0.6 | 17.1 | 16.1 | -0.9 |
Prince Edward Island | 23.5% | 22.4% | -1.0 | 13.1 | 12.1 | -1.0 |
Nova Scotia | 26.4% | 25.3% | -1.0 | 13.4 | 12.8 | -0.6 |
New Brunswick | 31.2% | 30.4% | -0.8 | 16.0 | 15.4 | -0.6 |
Quebec | 33.7% | 33.1% | -0.6 | 12.9 | 12.7 | -0.2 |
Ontario | 17.1% | 17.2% | +0.1 | 7.8 | 7.9 | +0.1 |
Manitoba | 13.2% | 12.6% | -0.6 | 6.1 | 6.0 | -0.1 |
Saskatchewan | 12.8% | 12.8% | 0.0 | 7.7 | 6.8 | -0.9 |
Alberta | 14.4% | 14.3% | -0.1 | 7.8 | 7.1 | -0.7 |
British Columbia | 19.5% | 19.4% | -0.1 | 8.8 | 8.1 | -0.7 |
Territories | 11.9% | 10.1% | -1.8 | 6.5 | 6.2 | -0.3 |
Men | 23.2% | 22.6% | -0.5 | 11.3 | 11.2 | -0.1 |
Women | 25.5% | 25.3% | -0.2 | 10.5 | 9.9 | -0.6 |
24 years old and under | 23.2% | 21.9% | -1.3 | 8.8 | 8.8 | 0.0 |
25 to 44 years old | 25.9% | 25.1% | -0.8 | 10.2 | 9.8 | -0.4 |
45 to 54 years old | 29.4% | 29.5% | +0.1 | 12.4 | 12.0 | -0.4 |
55 years old and over | 17.2% | 17.3% | +0.2 | 12.3 | 11.7 | -0.6 |
Seasonal** | 30.5% | 30.5% | 0.0 | 12.4 | 12.1 | -0.3 |
Non-seasonal** | 21.3% | 20.4% | -0.9 | 10.4 | 9.9 | -0.5 |
Canada | 24.0% | 23.6% | -0.4 | 11.0 | 10.6 | -0.4 |
- Note: Changes are based on unrounded numbers. Includes all claims for which at least $1 in EI regular benefit was paid.
- * Data are based on weeks worked while on claim during the reporting fiscal year, regardless of the year in which their claim was established.
- ** Consult annex 2.1 for definitions of seasonal claims referenced in this table.
- r1 Revised data. The methodology was slightly modified to exclude certain weeks for which claimants were ineligible to receive EI regular benefits.
- r Revised.
- P Preliminary.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
An analysis by demographic characteristics shows that the proportion of weeks worked while on claim varied in the same way as the proportion of claimants who worked at least 1 week while on claim. Seasonal claimants, women, claimants aged 25 to 44 and those aged 45 to 54, and claimants in the Atlantic (except Prince Edward Island) and Quebec provinces had higher proportions of weeks worked while on claim than the national average in FY1920.
Weekly income associated with working while on claim
There is a difference between the average weekly income of claimants who worked while on claim and those who did not. Based on EI regular claims completed in FY1920, claimants who worked while on claim had higher total weekly income (regular benefits plus employment earnings) ($657), on average over the entire claim period, compared to those who did not work while on claim ($451) (see Table 29). They also received, on average, fewer EI benefits than those who did not work while on claim ($334 per week compared to $451). During the weeks they worked, claimants who worked while on claim reported average weekly employment income of $796 for FY1920.
Income type | Claims without working while on claim | Claims with working while on claim (all weeks*) | Claims with working while on claim (weeks worked only**) |
---|---|---|---|
Average weekly EI regular benefits | $451 | $334 | n/a |
Average weekly employment earnings | n/a | $323 | $796 |
Average weekly total income (EI regular benefits and employment earnings) | $451 | $657 | n/a |
- Note: Includes completed claims for which at least $1 of EI regular benefits was paid.
- * Includes deferred weeks of EI benefits (that have thus $0 of EI benefits paid and high amount of employment earnings). Average incomes for this category are the sum of all regular benefits paid and/or employment earnings divided by the number of weeks the claim was active.
- ** The average weekly employment earnings for this category are total employment earnings divided by the number of weeks worked while on claim.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Factors associated with working while on claim
A 2016 study* found that 73.8% of regular claimants who worked while on claim worked for a single employer.
Furthermore, this study found that virtually all claimants (94.8%) who worked while on claim worked for the same employer before or after their claim. In fact, 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.
- * ESDC, Who are Workers Working for When Working While on Claim? (Ottawa: ESDC, Evaluation Directorate, 2016).
2.3 Employment Insurance support while on training
In this section
- 2.3.1 Employment Insurance support for apprentices
- 2.3.2 Training with permission from Service Canada to keep receiving EI
Some EI program flexibilities allow unemployed EI claimants to train and get the skills they need to succeed in the workforce. Individuals who qualify for EI regular benefits may pursue training under different scenarios.
A claimant may be referred to training by a designated authority, such as a province, territory or Indigenous organization. Such training may be funded through provincial and territorial Labour Market Development Agreements (LMDA), or it may be self-funded by the claimant. In either of the circumstances, the provincial or territorial government must agree that the desired training is a reasonable part of the claimant’s return-to-work action plan. In such cases, claimants continue to receive EI benefits while they upgrade their skills. Consult Chapter 3 for more information on LMDA.
Alternatively, if claimants decide on their own to take training, they must declare their training, prove that they are still able and willing to work, and are continuing to look for a job to continue receiving EI benefits. They must be ready to make arrangements to work if they receive a job offer, and to adjust or cancel their training plan if necessary. Service Canada assesses these situations on a case-by-case basis, taking into account the individual circumstances of the claimant.
Finally, through Skills Boost, EI claimants who are long-tenured workers and wish to self-fund full-time training at an approved institution can request permission directly from Service Canada to continue receiving EI regular benefits during training that would otherwise restrict their ability to meet program requirements (that is, searching and being available for work). Skills Boost also introduced measures that took effect August 1, 2018, to provide enhanced Student Financial Assistance targeted to working or unemployed Canadians looking to return to school to upgrade their skills.
In FY1920, a total of 112,000 claims established received at least $1 of EI regular benefits while on training.
Subsection 2.3.1 examines support for apprentices and subsection 2.3.2 discusses the training permission provided by Service Canada.
2.3.1 Employment Insurance support for apprentices
For many skilled trades, apprenticeship is the path to gain the skills and experience that are necessary for certification and to participate fully in the labour market. In Canada, the apprenticeship system is an industry-driven learning system that combines on-the-job and technical training. Each province or territory is responsible for apprenticeship training within its jurisdiction. As a result, apprenticeship programs in Canada, including the duration and delivery method of technical training, vary across trades and across provinces and territories.
In Quebec for instance, apprentices generally complete all of their technical training at a college (CEGEP) or at a training institution before beginning on-the-job training. In the rest of Canada, apprentices start with on-the-job training followed by technical training through a variety of approaches. These include in-class learning, self-learning, distance learning, night classes or day release programs.
In most jurisdictions, to enter an apprenticeship program, a prospective apprentice must be at least 16 years old and have successfully completed Grade 12 or have an equivalent amount of work experience or related education. In addition, the potential apprentice must find a job with an employer who will sponsor and train him or her under the mentorship of a qualified person.
To help EI contributors continue their apprenticeship and become certified journeypersons or tradespeople, the EI program offers temporary income support to those who are unemployed and attending full-time school technical training (sometimes referred to as block-release training). To qualify, they must meet EI regular benefits eligibility requirementsFootnote 79, and their respective province, territory or Indigenous organization must have referred them to training under section 25 of the Employment Insurance Act for each block of full time technical training that is required as part of their apprenticeship. Employers may also offer their apprentices Supplemental Unemployment Benefit (SUB) plans to increase their weekly income during their periods of technical training, up to 95% of the apprentice’s normal weekly earnings.Footnote 80
Apprentices can apply for EI benefits up to 7 days before their last day of work and they are only required to serve 1 waiting period for the full duration of their apprenticeship, even if it involves multiple blocks of full-time technical training, as long as they remain in the same apprenticeship program.
To help ensure that apprentices receive EI benefits without delay while they attend full-time technical training, their province, territory or Indigenous organization provides them with a special reference code issued for each block of full-time technical training. This code facilitates faster processing and payment of their EI benefits and helps speed up payment to apprentices.
Apprentices may be entitled to receive financial support under Part II of the Employment Insurance ActFootnote 81 which is delivered by the provinces and territories (under the Labour Market Development Agreements) and Indigenous organizations (under the Indigenous Skills and Employment Training Program). These EI benefits help cover accommodation, childcare, transportation and other costs incurred while attending technical training. Other financial support from the Government of Canada is also available through programs such as the Canada Apprentice Loan and various apprenticeship grants.
The following sections present detailed statistics on the number of EI claims from apprentices, their weekly level of benefits and the duration of their benefits. EI claims from apprentices are those referred under section 25 of the Employment Insurance Act and who received at least 1 dollar of EI regular benefits during a period of full-time apprenticeship training.
Employment Insurance claims from apprentices and amount paid
In FY1920, the number of new claims established by apprentices decreased by 6.1% from 50,200 to 47,180. This decline was largely attributable to decline in the number of new claims established in British Columbia and Prairies provinces (-2,420 claims). The number of claims decreased in all provinces and territories, except Prince Edward Island and New Brunswick. In relative terms, jurisdictions with the largest year-over-year decrease were Territories (-25.0%), followed by Newfoundland and Labrador (-16.1%), Saskatchewan (-15.3%), and Manitoba (-12.9%).
Outside of periods of full-time training and during the benefit period of a claim, an apprentice may experience a loss of employment income due to circumstances that may require the apprentice to access other types of EI benefits (for instance, regular benefits for lack of available work or special benefits for care for a newborn child). The claimant may claim those benefits if he or she meets the eligibility requirements for the relevant EI benefits. Of all claims established by apprentices in the reporting fiscal year, 48.8% (or 23,000 claims) contained at least 1 week of regular benefits paid outside of periods of full-time training. Meanwhile, 1.0% (or 480 claims) contained at least 1 week of special benefits paid outside of periods of full-time training, including 320 claims for sickness benefits.
In contrast to the decrease in new claims established, the total amount of EI benefits paid to apprentices rose by +12.0% to $329.6 million compared to the previous year. The largest relative increase among provinces occurred in New Brunswick (+30.1%), followed by Ontario (+22.7%), and Prince Edward Island (+20.1%). Of the total of $329.6 million paid in benefits, $201.5 million (or 61.1% of the total EI benefits paid to apprentices) were paid while they attended full-time technical training. EI regular benefits paid outside of periods of full-time training accounted for most of the remaining benefits paid to apprentices ($119.1 million or 36.1% of the total $329.6 M EI benefits paid), with a small fraction paid in special benefits ($4.3 M or 1.3%).
In FY1920, 80% of EI claims from apprentices were established in Ontario, Alberta, and British Columbia, consistent with trends observed over past years. Total benefits paid followed a similar distribution.
As in previous years, men established the vast majority of claims from apprentices (94.7%) and accounted for the largest share of all EI benefits paid to apprentices (93.9%) in FY1920. The number of claims established by women increased by 12.1%. The low proportion of claims by women and benefits paid to them is largely due to the low share of women amongst all apprenticeship-training registrations (11.5% in 2019).Footnote 82
Category | New claims established FY1819 |
New claims established FY1920 |
Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 1,120 | 940 | -16.1% | $10.9 | $10.2 | -6.4% |
Prince Edward Island | 340 | 350 | +2.9% | $1.7 | $2.0 | +20.1% |
Nova Scotia | 1,680 | 1,470 | -12.5% | $9.4 | $10.3 | +9.2% |
New Brunswick | 1,480 | 1,500 | +1.4% | $8.2 | $10.6 | +30.1% |
Quebec* | 110 | 60 | -45.5% | $1.2 | $0.4 | -67.3% |
Ontario | 14,850 | 14,700 | -1.0% | $83.2 | $102.1 | +22.7% |
Manitoba | 3,110 | 2,710 | -12.9% | $18.4 | $17.3 | -5.9% |
Saskatchewan | 2,950 | 2,500 | -15.3% | $17.6 | $16.8 | -4.7% |
Alberta | 13,720 | 13,270 | -3.3% | $88.0 | $99.1 | +12.7% |
British Columbia | 10,620 | 9,500 | -10.5% | $54.2 | $59.3 | +9.3% |
Territories | 240 | 180 | -25.0% | $1.5 | $1.5 | +2.9% |
Men | 47,990 | 44,680 | -6.9% | $280.4 | $309.7 | +10.4% |
Women | 2,230 | 2,500 | +12.1% | $13.9 | $20.0 | +44.0% |
24 years old and under | 22,140 | 20,910 | -5.6% | $117.2 | $132.9 | +13.4% |
25 to 44 years old | 26,580 | 24,920 | -6.2% | $166.0 | $186.9 | +12.6% |
45 years old and over | 1,500 | 1,350 | -10.0% | $11.0 | $9.8 | -10.9% |
Canada | 50,220 | 47,180 | -6.1% | $294.3 | $329.6 | +12.0% |
- Note: Totals may not add up due to rounding. Percentage change is based on unrounded numbers. Includes all claims from apprentices referred under Section 25 of the Employment Insurance Act for which at least $1 of EI benefits was paid while the claimant was on training.
- * The low number of claims from apprentices in Quebec is due to the unique program design in which apprentices complete all of the technical training prior to beginning on-the-job training.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Claimants aged between 25 and 44 years old accounted for the largest share of EI claims associated with apprenticeship programs and full-time technical training (52.8%) and also for the largest share of all EI benefits paid to apprentices (56.7%). They were followed by claimants aged 15 to 24 years old who accounted for 44.3% of all claims and 40.3% of the total amount paid in benefits. Claimants aged 45 years and over accounted for almost half of all EI regular claims established, but only 2.6% of all EI apprenticeship claims in FY1920. This is expected, as the incidence of job-related training declines with age, though the gap between older and younger workers appears to be shrinking over time.Footnote 83
Similar to previous years, claimants from the construction sector established the majority of the new apprentice claims (58.1%) and accounted for the largest share of the total amount paid in benefits (62.1%) in FY1920 (consult table 31).
From the occupational grouping perspective, the majority of EI claimants participating in apprenticeship programs and attending full-time technical training were associated with the Trades and skilled transport and equipment operators occupational groupFootnote 84 (92.0%), which also accounted for 92.1% of the total benefits paid to apprentices. While apprentice claimants from this occupational group were mainly employed in the Construction sector, they were also found in the Manufacturing, Other services (excluding Public administration) and Retail trade sectors.
Category | New claims established FY1819 | New claims established FY1920 | Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Construction | 30,790 | 27,410 | -11.0% | $195.5 | $204.8 | +4.7% |
Manufacturing | 3,480 | 3,540 | +1.7% | $18.8 | $25.7 | +36.3% |
Wholesale Trade | 2,330 | 2,040 | -12.4% | $10.4 | $11.5 | +10.6% |
Retail Trade | 3,110 | 3,170 | +1.9% | $13.3 | $16.9 | +26.9% |
Other services (excluding public administration) | 3,760 | 3,900 | +3.7% | $16.9 | $22.4 | +32.7% |
Other sectors | 6,750 | 7,120 | +5.5% | $39.3 | $48.4 | +23.0% |
Trades and skilled transport and equipment operators | 45,820 | 43,430 | -5.2% | $266.8 | $303.5 | +13.7% |
Other occupations | 4,400 | 3,750 | -14.8% | $27.4 | $26.1 | -4.8% |
Canada | 50,220 | 47,180 | -6.1% | $294.3 | $329.6 | +12.0% |
- Note: Totals may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes all claims from apprentices referred under Section 25 of the Employment Insurance Act for which at least $1 of EI benefits was paid while the claimant was on training.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Level and duration of Employment Insurance benefits for apprentices
During the reporting period, the average weekly benefit rate payable to apprentices increased by +2.3% to $513. Consistent with previous years, the average weekly benefit rate for apprentices was higher than the average for EI regular claims overall ($483).
Similar to the previous year, apprentice claimants from the territories and Alberta received the highest average weekly benefit rate during the reporting period ($551 and $532, respectively). On average, the weekly benefit rate received was higher among men ($515) than women ($492) and among claimants aged between 45 and 54 years old ($533), followed by those aged between 25 and 44 years old ($525). Furthermore, among age groups, claimants under 25 years old received the lowest average weekly benefit rate ($497), followed by those aged 55 years old and over ($505).
The average duration of EI regular claims completed in FY1920 by EI claimants while on full-time technical training was 8.9 weeks, relatively unchanged from FY1819 (9.0 weeks). Claims in Manitoba (9.6 weeks), Ontario (9.1 weeks), and British Columbia (9.1 weeks) were above the national average (8.9 weeks). Unlike the previous year, the average duration of EI regular benefits received by women while on full-time technical training was slightly higher than men (9.2 weeks vs. 8.9 weeks). Like in FY1819, claimants aged 55 years or older received somewhat fewer weeks of benefits (7.3 weeks) relative to claimants under 25 years old (9.0 weeks) and those aged between 25 and 54 years old (8.9 weeks).
Characteristics of firms that hire apprentices
A recent ESDC study* examined the characteristics of firms that employ EI-supported apprentices from 2001 to 2016.
The study found that the share of apprentices in a firm’s workforce was positively correlated with its productivity, a pattern that has become more apparent since the FY0809 recession. Larger firms (more than 500 employees) are more likely to hire an apprentice every year and are more likely to have hired an apprentice at least once in the study period than other sizes of firms. However, smaller firms hire disproportionately more apprentices; almost 1 in 2 apprentices work in a firm with 5 to 49 employees.
On average, 4 out of 5 apprentices claimed EI from a single employer from 2001 to 2012. However, apprentices in the construction sector were more likely to make claims related to multiple employers. In addition, just under 50% of apprentices stay for more than 3 years with the firm that trained them.
- *ESDC, Characteristics of firms that hire apprentices. (Ottawa: ESDC, Labour Market Information Directorate, 2020)
2.3.2 Training with permission from Service Canada to keep receiving EI
Under Skills Boost, claimants who are long-tenured workersFootnote 85 and wish to self-fund full-time training at an approved institution may request permission directly from Service Canada to continue receiving EI benefits during training that would otherwise restrict their ability to meet program requirements (that is, searching and being available for work). Service Canada does not provide services normally provided by the provinces and territories such as employment counselling, job search assistance, needs assessments and assistance with the development of return to work action plans.
In FY1920, Service Canada gave permission to (or “referred”) 896 claimants to continue receiving EI benefits in order to train under Skills Boost, representing 0.2% of all long-tenured worker EI claimants. In comparison, there were 900 referred claimants during the period of August 5, 2018 (start date) to March 31, 2019. Out of the 896 claims established during which claimants received permission from Service Canada to train in FY1920, 827 (92.0%) contained at least 1 week of training benefits and 665 (74.0%) included at least 1 week of EI regular benefits. The amount paid to claimants while on training was $7.4 million (or 63.8% of the total amount paid), while the amount paid in EI regular benefits reached $3.8 million (or 32.5% of the total amount of $11.6 million).
As in the previous year, the largest number of training referrals by Service Canada was in Quebec (27.6%), followed by Ontario (25.8%), and Alberta (21.9%). These 3 provinces also made up the bulk of EI regular claims with 28.4%, 24.7% and 21.2%, respectively. Total benefits paid to claimants while on training and EI regular benefits have followed a very similar distribution pattern to the one for claims. Quebec, Ontario, and Alberta accounted for 75.7% and 74.5% of the total amount paid for training and in EI regular benefits, respectively.
In contrast to the previous year, women accounted for just over half of referrals (52.0%). Claimants under 44 years old established 72.0% of all referrals. In terms of industry, claimants who worked in the Manufacturing industry accounted for the largest share of referrals (11.3%), followed by those from Construction (9.5%) and Retail trade (9.4%).
In FY1920, claimants who had been referred by Service Canada received benefits totalling $11.6 million, an increase of 0.9% from the previous year. Quebec (26.9%), Ontario (25.5%), Alberta (23.0%), and British Columbia (12.4%) accounted for 87.7% of the total amount paid in EI benefits of all types.
In terms of gender and age, the share of total benefits paid to men and women was almost evenly distributed in FY1920. Men accounted for 48.2% and women 51.8% of total benefits paid. The same was true for the distribution of amounts paid for while claimants were attending training (47.7% vs. 52.3%) and for EI regular benefits (50.9% vs. 49.1%). Claimants under 44 years old continued to account for the largest shares of total amount paid for all types of benefits (72.2%), for training benefits (73.3%) and EI regular benefits (70.5%) paid under Skills Boost.
From an industry perspective, claims associated with the Manufacturing industry continued to receive the largest share of total benefits paid for all types of benefits (12.5%), for training benefits (12.4%) and EI regular benefits (12.5%).
Claimants with a referral to training by Service Canada received, on average, a weekly benefit rate of $491 for all types of EI benefits, which was higher than the average weekly EI regular benefit rate paid ($483), but lower than that paid to long-tenured worker regular benefit claimants ($515). However, the average weekly benefit rate those claimants received while on training was $492 and $493 while they were looking for a job during their claim.
Using a breakdown by gender and age, the average weekly benefit rate received by claimants was higher for men ($506) than for women ($478) and for claimants over 45 years old ($487).
In FY1920, claimants with a referral to training by Service Canada received, on average, 19.5 weeks of EI benefits while on training and 12.5 weeks of EI benefits while looking for a job during their claim period.
Claimants from the Atlantic provinces received, on average, the highest number of EI weeks while taking training (24.6 weeks) followed by those from Saskatchewan (21.1 weeks). For EI regular benefits, claimants from Territories received, on average, the highest number of weeks (21.1 weeks), followed by those from Manitoba (14.2 weeks) and Alberta (13.5 weeks).
By gender, women received, on average, more weeks of EI benefits than men while attending full-time training (20.0 weeks vs. 18.1 weeks) and they received roughly the same number of weeks when they were looking for a job (12.4 weeks vs. 12.5 weeks).
Claimants aged between 25 and 44 years old received, on average, the highest number of benefits weeks (19.2 weeks) while on training, followed by those aged 45 years and over (18.8 weeks). In terms of EI regular benefits, claimants aged 55 and over received the most weeks of benefits (13.5 weeks), followed by those aged 45 to 54 years old (13.3 weeks).
Category | New claims established FY18191 | New claims established FY1920 | Change (%) | Amount paid ($ millions) FY18191 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Atlantic provinces | 44 | 36 | -22.2% | $0.5 | $0.5 | +9.0% |
Quebec | 276 | 248 | -10.1% | $3.3 | $3.1 | -6.8% |
Ontario | 211 | 231 | +9.5% | $2.8 | $2.9 | +6.9% |
Manitoba | 34 | 31 | -8.8% | $0.4 | $0.4 | +11.1% |
Saskatchewan | 29 | 29 | 0.0% | $0.4 | $0.4 | +7.2% |
Alberta | 195 | 192 | -1.5% | $2.6 | $2.7 | +2.9% |
British Columbia & Territories2 | 119 | 121 | +1.7% | $1.5 | $1.5 | -3.0% |
Men | 469 | 430 | -8.3% | $5.8 | $5.6 | -4.4% |
Women | 431 | 466 | +8.1% | $5.6 | $6.0 | +6.4% |
44 years old and under | 669 | 645 | -3.3% | $8.4 | $8.4 | +0.3% |
45 years old and over | 231 | 251 | +8.7% | $3.1 | $3.2 | +3.4% |
Construction | 102 | 85 | -16.7% | $1.4 | $1.0 | -27.9% |
Manufacturing | 112 | 101 | -9.8% | $1.5 | $1.4 | -3.6% |
Other goods-producing industries | 39 | 34 | -12.8% | $0.5 | $0.5 | -1.4% |
Wholesale trade | 48 | 49 | +2.1% | $0.6 | $0.6 | -1.0% |
Retail trade | 84 | 84 | 0.0% | $1.0 | $1.1 | +8.8% |
Transportation and warehousing | 39 | 43 | +10.3% | $0.5 | $0.6 | +35.2% |
Finance and insurance | 32 | 31 | -3.1% | $0.4 | $0.4 | -2.0% |
Real estate and rental and leasing | 23 | 16 | -30.4% | $0.3 | $0.2 | -26.9% |
Professional, scientific and technical services | 52 | 62 | +19.2% | $0.7 | $0.8 | +8.8% |
Business, building and support services* | 62 | 69 | +11.3% | $0.8 | $1.0 | +17.2% |
Educational services | 51 | 53 | +3.9% | $0.6 | $0.5 | -15.9% |
Health care and social assistance | 66 | 64 | -3.0% | $0.8 | $0.8 | -2.9% |
Information, culture and recreation** | 44 | 45 | +2.3% | $0.5 | $0.6 | +8.7% |
Accommodation and food services | 39 | 42 | +7.7% | $0.4 | $0.5 | +10.4% |
Other services (except public administration) | 30 | 35 | +16.7% | $0.4 | $0.5 | +22.0% |
Public administration | 63 | 66 | +4.8% | $0.8 | $0.9 | +11.6% |
Unclassified*** | 14 | 17 | +21.4% | $0.2 | $0.2 | +18.8% |
Canada | 900 | 896 | -0.4% | $11.5 | $11.6 | +0.9% |
- 1 For the period of August 5, 2018 (start date) to March 31, 2019.
- 2 For confidentiality reasons, data for the territories have been included with those for British Columbia.
- * This industry sector comprises the industries with codes 55 (Management of companies and enterprises) and 56 (Administration and support, waste management and remediation services).
- ** This industry sector comprises the industries with codes 51 (Information and cultural industries) and 71 (Arts, entertainment and recreation).
- *** For some claims, this information was not available in the data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
2.4 Employment Insurance fishing benefits
In this section
- 2.4.1 Employment Insurance fishing claims and benefits paid
- 2.4.2 Seasonal component of Employment Insurance fishing benefits
- 2.4.3 Duration of Employment Insurance fishing benefits
Employment Insurance (EI) provides fishing benefits to qualifying, self-employed fishers who are actively seeking work. Unlike EI regular benefits, eligibility for EI fishing benefits is based on earnings, not hours of insurable employment. Fishers may be eligible to receive regular fishing benefits as well as sickness, maternity, parental, compassionate care and/or family caregiver benefits.
Under the Fishing Regulations, a “fisher” is defined as a self-employed person engaged in fishing activities and includes a person engaged, other than under a contract of service or for their own or another person’s sport:
- in making a catch
- in doing any work incidental to making or handling catch;Footnote 86 or
- in the construction of a fishing vessel for their own use or for the use of a crew of which the person is a member in making a catch
To qualify to EI fishing benefits, applicants must:
- meet the definition of a self-employed fisher
- have paid EI premium during their qualifying period
- not qualify for regular benefits
- have earned a minimum of between $2,500 and $4,200 from self-employment in fishing during their qualifying period (consult table 33)Footnote 87
The weekly benefit rate is calculated by dividing the fisher’s total insurable earnings during the qualifying period by the divisor associated with the claimant’s regional unemployment rate (consult table 33). The result thus obtained is then multiplied by the basic rate of 55%, without exceeding the allowed maximum weekly benefit. Fishing benefits are subject to the same maximum insurable earnings threshold as other types of EI benefits (a maximum benefit of $562 per week in 2019 and $573 in 2020).
Regional unemployment rate | Required insurable earnings | Earnings divisor |
---|---|---|
6.0% or lower | $4,200 | 22 |
6.1% to 7.0% | $4,000 | 21 |
7.1% to 8.0% | $3,800 | 20 |
8.1% to 9.0% | $3,600 | 19 |
9.1% to 10.0% | $3,400 | 18 |
10.1% to 11.0% | $3,200 | 17 |
11.1% to 12.0% | $2,900 | 16 |
12.1% to 13.0% | $2,700 | 15 |
13.1% or higher | $2,500 | 14 |
Any claimant who qualifies for EI fishing benefits may receive a maximum entitlement of 26 weeks of EI fishing benefits per claim within the fixed benefit period, with the possibilities of establishing 2 claims a year, 1 in the winter and 1 in the summer. The benefit period for a winter claim can start as early as the week of April 1 and must end no later than the week of December 15, whereas the benefit period for a summer claim can start as early as the week of October 1 and must end no later than the week of June 15.Footnote 88 These weeks of benefits may be received consecutively or intermittently, but are limited by the fixed start and end dates of the benefit period. In some cases, claimants can defer earnings from 1 season to the other.
For the purpose of this section, EI fishing claims refer to claims for which at least 1 dollar of EI fishing benefits were paid.
2.4.1 Employment Insurance fishing claims and benefits paid
In FY1920, the number of new EI fishing claims remained virtually unchanged after 5 consecutive years of increases, up by only 0.1% from FY1819.The total amount of EI fishing benefits paid increased by 1.8% in the reporting year to reach $303.1 million (consult chart 25). The number of new fishing claims and the total amount of EI fishing benefits paid represented 2.2% and 2.7% of all EI new claims and of the total amount paid for all EI benefit types, respectively.
Text description of Chart 25
Category | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Fishing claims (in thousands) (left scale) | 29.3 | 28.5 | 29.5 | 28.3 | 27.2 | 27.6 | 28.3 | 28.9 | 30.1 | 30.4 | 30.4 |
Amount paid ($ millions) (right scale) | $245.1 | $241.7 | $259.2 | $252.8 | $247.9 | $255.6 | $272.3 | $282.9 | $300.2 | $297.7 | $303.1 |
- Note: Includes claims for which at least $1 of fishing benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data on claims are based on a 100% sample of EI administrative data, while data on amount paid are based on a 10% sample.
In FY1920, the majority of claimants who relied on EI fishing benefits resided in 6 provinces (Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, British Columbia and Quebec).
As outlined in table 34, on a year-over-year basis, the number of new fishing claims established in FY1920 increased in Newfoundland and Labrador, Nova Scotia and New Brunswick, while it decreased in Prince Edward Island, Quebec and British Columbia. Atlantic Canada accounted for the largest share of all new EI fishing claims in FY1920, a proportion identical to the previous year. Within those provinces, Newfoundland and Labrador had the largest share of claims (42.9%), followed by Nova Scotia (18.9%), New Brunswick (10.7%), and Prince Edward Island (10.6%). Claimants in Atlantic Canada also received the largest share of EI fishing benefits (83.2%) paid in FY1920. Newfoundland and Labrador had the largest share (41.7%) of the total amount of EI fishing benefits paid, followed by Nova Scotia (19.5%), New Brunswick (12.0%) and Prince Edward Island (9.9%).
Category | Claims established FY1819 | Claims established FY1920 | Change (%) | Amount paid ($ millions) FY1819 | Amount paid ($ millions) FY1920 | Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 12,682 | 13,041 | +2.8% | $118.4 | $126.5 | 6.8% |
Prince Edward Island | 3,278 | 3,236 | -1.3% | $29.1 | $30.0 | 3.0% |
Nova Scotia | 5,701 | 5,750 | +0.9% | $59.9 | $59.2 | -1.2% |
New Brunswick | 3,203 | 3,244 | +1.3% | $34.1 | $36.5 | 7.0% |
Quebec | 1,408 | 1,372 | -2.6% | $12.0 | $11.6 | -2.7% |
British Columbia | 2,843 | 2,424 | -14.7% | $29.8 | $26.1 | -12.3% |
Other provinces and territories | 1,252 | 1,318 | +5.3% | $14.5 | $13.2 | -8.7% |
Men | 24,319 | 24,203 | -0.5% | $238.9 | $242.9 | +1.7% |
Women | 6,048 | 6,182 | +2.2% | $58.8 | $60.2 | +2.3% |
24 years old and under | 1,535 | 1,593 | +3.8% | $16.4 | $16.9 | +2.8% |
25 to 44 years old | 8,556 | 8,428 | -1.5% | $89.9 | $88.5 | -1.5% |
45 to 54 years old | 8,095 | 7,901 | -2.4% | $78.4 | $75.3 | -4.0% |
55 years old and over | 12,181 | 12,463 | +2.3% | $113.0 | $122.4 | +8.4% |
Canada | 30,367 | 30,385 | +0.1% | $297.7 | $303.1 | +1.8% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes all claims for which at least $1 in EI fishing benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data, except for amount paid which is based on a 10% sample.
As in previous years, men still accounted for the largest shares of both new claims (79.7%) and the total amount paid in EI fishing benefits (80.1%) in FY1920 and remained relatively unchanged from the previous year. The shares of amount paid in EI fishing benefits to both men and women were proportional to their shares of claims established.
In FY1920, there was an increase in both the number of new claims and the total amount paid for younger (24 and under) and older (55 and over) claimants. In contrast, during the reporting year, core-aged claimants (25 to 54 years old) saw a decrease in both their new claims and benefits paid compared to the previous year (consult table 34). As in previous years, older claimants (55 years and older) account for the largest shares of both new claims (41.0%) and the total amount paid in fishing benefits (40.4%).
The average weekly fishing benefit rate increased from $514 in FY1819 to $528 in the reporting period (+2.7%). As in previous years, this rate was above the average weekly regular benefit rate in FY1920 ($483). The weekly fishing benefit rate increased in all provinces with a significant fishing industry in FY1920, except for British Columbia where it decreased slightly (-1.9%). The average weekly fishing benefit rate was the highest in Quebec ($551), while it was the lowest in British Columbia ($466). The average weekly fishing benefit rates in Atlantic Canada and Quebec were above the national average ($528). The average weekly fishing benefit rate for men ($531) was still higher than that for women ($515). Claimants who were aged between 45 and 54 years had the highest weekly fishing benefit rate ($536) (consult annex 2.10.3).
The proportion of fishing claims that received the maximum benefit rate remained relatively unchanged in FY1920 (74.4%) compared to the previous fiscal year (74.1%). This proportion is higher than the proportion of EI regular claims that received the maximum benefit rate for regular benefits in the reporting period (49.0%).Footnote 89 This is partly attributable to the fact that 61.4% of the total fishing claims in FY1920 were established in EI economic regions where the unemployment rates were higher than 13% (minimum divisor of 14) and required $14,296 in insurable earnings over their qualifying period to receive the maximum weekly benefit rate of $573. As illustrated in chart 26, a significant number of fishing claims established in the reporting year had insurable earnings at, or very close to, the amount required to obtain the maximum benefit rate.
Text description of Chart 26
Insurable earnings | New claims established (percentage share) |
---|---|
Less than $5,500 |
1.0% |
$5,500 to $6,999 |
1.3% |
$7,000 to $8,499 |
1.7% |
$8,500 to $9,999 |
2.0% |
$10,000 to $11,499 |
2.5% |
$11,500 to $12,999 |
3.8% |
$13,000 to $14,499 |
51.8% |
$14,500 to $15,999 |
9.6% |
$16,000 to $17,499 |
10.2% |
$17,500 or more | 16.2% |
- Note: Includes claims for which at least $1 of EI fishing benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
2.4.2 Seasonal component of Employment Insurance fishing benefits
EI fishing benefits are available for 2 fishing seasons per year (winter and summer), allowing eligible claimants to establish more than 1 claim in a year. The 30,400 new fishing claims established during the reporting period were established by 21,200 fishers—of them, 12,000 had established a single claim while the rest (9,200 fishers) had established 2 claims.
Table 35 outlines the number of fishers that established claims by season of establishment for the past 5 years. Overall, the number of fishers who established a fishing claim during the reporting period decreased by 1.3% from the previous year. The number of fishers who established a single claim also decreased during this period by 4.4%, while the number of fishers with 2 claims increased (+3.2%).
Season of establishment | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 | Change (%) FY1718 to FY1819 |
---|---|---|---|---|---|---|
1 season | 11,996 | 12,398 | 12,709 | 12,611 | 12,054 | -4.4% |
Winter | 2,605 | 2,720 | 3,031 | 3,145 | 3,192 | 1.5% |
Summer | 9,391 | 9,678 | 9,678 | 9,466 | 8,862 | -6.4% |
2 seasons | 8,132 | 8,267 | 8,667 | 8,876 | 9,162 | 3.2% |
Canada | 20,128 | 20,665 | 21,376 | 21,487 | 21,216 | -1.3% |
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
In FY1920, fishers who established a single claim received an average of $11,683 (+3.8% year-over-year) in EI fishing benefits. Those who had established 2 fishing claims received an average of $9,933 (+3.5%) for the first claim and an average of $10,666 (+26.7%) for the second claim, for a total average of $20,599 (+14.3%) received in EI fishing benefits in FY1920. These amounts have increased steadily over the past 5 years. In comparison, the average EI regular benefit paid to claimants in FY1920 was $8,076.
2.4.3 Duration of Employment Insurance fishing benefits
Regardless of the local labour market conditions in a claimant’s region of residence, the maximum entitlement of a claim established for EI fishing benefits is 26 weeks. In FY1920, the average duration of a fishing claim was 20.8 weeks, up from 19.7 weeks (+1.1 weeks or +5.6%) from the previous fiscal year.
Among the provinces with a significant fishing industry, claims established in British Columbia have historically had the highest average duration in fishing benefits and this reporting year was of no exception—the average duration in FY1920 was 23.3 weeks, same as the previous year. The average duration of EI fishing benefits in Atlantic Canada has historically been lower than the national average (20.2 weeks in the reporting year), but in FY1920, they ranged between 19.9 weeks in Prince Edward Island and 21.1 weeks in Newfoundland and Labrador. Claims established in Quebec had the lowest average duration at 18.7 weeks in FY1920 (consult annex 2.10.2).
The lower average duration of claims in Atlantic Provinces and Quebec may be attributable to the fact that a greater share of fishers in these regions establish 2 claims per year compared to those in other regions who mostly establish a single claim per year. For example, within the past 5 years, 46.6% fishers in the Atlantic Provinces and 67.5% fishers in Quebec had established 2 claims on average per year, whereas the share of fishers with 2 claims during this period was 1.9% in British Columbia and 10.0% in all other provinces and territories combined.
Table 36 outlines the average duration of fishing benefits by fishers. During the reporting period, fishers who established a single fishing claim received an average of 23.4 weeks, up to 1.7% from the previous fiscal year. Fishers who established 2 claims received an average of 18.6 weeks for their first claim and 19.8 weeks for their second claim, for a total average of 38.3 weeks for the whole year in FY1920, an increase of 10.7% or 3.7 weeks compared to FY1819.
Season | FY1819 | FY1920 | Change (%) FY1819 to FY1920 |
---|---|---|---|
1 season/1 claim | 23.0 | 23.4 | +1.7% |
2 seasons/2 claims | 34.6 | 38.3 | +10.7% |
First claim | 18.4 | 18.6 | +1.1% |
Second claim | 16.2 | 19.8 | +22.2% |
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
2.5 Employment Insurance Work-Sharing benefits
In this section
- 2.5.1 Employment Insurance Work-Sharing agreements
- 2.5.2 Employment Insurance Work-Sharing claims and amount paid
- 2.5.3 Level and duration of Employment Insurance Work-Sharing benefits
- 2.5.4 Employment Insurance Work-Sharing agreements subject to early termination
Work-Sharing is an adjustment program designed to help employers and employees avoid layoffs when there is a temporary reduction in the normal level of business activity that is beyond the control of the employer. Layoffs are avoided by offering temporary EI income support to employees eligible for EI regular benefits willing to work a temporarily reduced work week while their employer recovers. The goal of the program is for all participating employees to return to normal working hours by the end of the Work-Sharing agreement. The employer and the employees must agree to participate in a work-sharing agreement and must apply together.
Typically, to be eligible for the Work-Sharing agreement, employers must:
- have been in business in Canada year-round for at least 2 years
- be a publicly-held company, private business or a not-for-profit organization
- experience temporary shortages of work and reductions in business activity that are beyond their control, and the shortage of work is not a cyclical or recurring slowdownFootnote 90
- employ at least 2 EI-eligible employees in the work unit
- demonstrate a recent decrease of approximately 10% or more of their business activity, and
- submit and implement a recovery plan, which demonstrates how their business will return to normal levels upon the completion of the Work-Sharing agreementFootnote 91
Employees participating in a Work-Sharing agreement must:
- be year-round permanent full-time or part-time employees who are required to carry out the everyday functions of normal business activityFootnote 92
- be eligible to receive EI regular benefits, and
- agree to a reduction of their normal working hours and to share equally the available work among all members of their Work-Sharing unit over a specified period of time
Work-sharing agreements must include a reduction in work activity consisting of between 10% (one half day) and 60% (3 days) of the employees’ regular work schedule (that is, one-half to 3 days a week). In any given week, the work reduction can vary depending on available work, as long as the work reduction on average over the life of the agreement is between 10% and 60%. The proposed reduction in work hours should correspond with the number of anticipated temporary layoffs.
By participating in the Work-Sharing program, employers are able to retain skilled employees, avoiding the costs of recruiting and training new employees once business activities return to normal level. At the same time, participating workers can maintain their jobs and skills while supplementing their reduced wages with EI Work-Sharing benefits for the days they are not working. In addition, within a Work-Sharing period the employers are required to maintain all existing employee benefits.
During participation in a Work-Sharing agreement, employer initiated training activities, whether on-the-job training or off-site courses, may take place. Depending on the cause of the work shortage, the employer’s recovery plan may include plans to initiate training activities for members of the Work-Sharing unit.
Training costs can be funded by the employer or through other available supports such as provincial or territorial programming. The salary costs of employees taking part in training activities during normal scheduled working hours/days cannot be compensated through the Work-Sharing agreement. Training could also take place during the non-working days/hours for which the participating employees are in receipt of EI Work-Sharing benefits
Example: Receiving Employment Insurance Work-Sharing benefits (illustrative example)
Samantha works as a full-time employee at an engineering firm in the Mining and oil and gas extraction industry in Edmonton, Alberta, and earns $40,000 per year (weekly earnings of $769). Due to the COVID-19 pandemic, the firm is experiencing a significant reduction in workload, and is considering laying off a quarter of its employees. The firm decides to enter into a Work-Sharing agreement with Service Canada. Under this Work-Sharing agreement, all eligible employees in Samantha’s work unit agree to reduce their work hours per week by 35% and receive EI Work-Sharing benefits for days where they are not working.
If Samantha and her co-workers did not agree to voluntarily reduce their work hours to participate in the Work-Sharing program and were laid off, each of them would have been entitled to apply for EI regular benefits and receive 55% of their weekly income ($423). By participating in the Work-Sharing program, Samantha and her co-workers receive 35% less of their regular weekly income (earning $500 per week); and collect EI Work-Sharing benefits for 35% of their average hours worked per week (equal to 55% of the value of the insurable earnings she would have received from the firm, which is $148).
By participating in the Work-Sharing program, Samantha and her co-workers are able to earn a total of $648 per week ($500 worth of income from working at the firm plus $148 from EI Work-Sharing benefits), compared to $423 if they had been on EI regular benefits following a layoff. This enables Samantha and her co-workers to maintain more of their original earnings, keep their jobs, and retain their skills and employee benefits for the duration of the Work-Sharing agreement (for example, health/dental insurance, pension benefits, vacation, group disability). At the same time, the firm is able to retain its skilled and experienced workforce.
The duration of an initial Work-Sharing agreement can be between 6 and 26 consecutive weeks. This duration can be extended for up to 12 additional weeks (up to 38 weeks total), if needed. In the case of an extension, employers must demonstrate that they are continuing to experience a reduction in business activity that in the absence of Work-Sharing would result in the layoff of 1 or more employees and that the period of the extension is needed to complete the return to normal working hours.
Under the standard Work-Sharing program, returning employers and workers are required to serve a mandatory cooling-off period between agreements equal to the number of weeks they participated in Work-Sharing (up to a maximum period of 38 weeks).
Temporary Special Measures
To avoid layoffs and retain skilled workers in firms directly or indirectly affected by trade disputes with the United States in the forest sector and steel and aluminum industries, the Government of Canada put in place temporary special Work-Sharing measures. These temporary special measures extended the maximum duration of Work-Sharing agreements from 38 weeks to 76 weeks, waived the mandatory cooling off period between agreements, and eased Recovery Plan requirements for all eligible employers.
The forest sector temporary special measures were announced in July 2017, as part of the Softwood Lumber Action Plan (SLAP). These measures were in effect from July 30, 2017 to March 28, 2020.
The steel and aluminum temporary special measures were announced in June 2018, and are in effect from August 19, 2018 to March 27, 2021.
COVID-19 – Temporary Special Measures
On March 15, 2020, as part of Canada’s COVID-19 Economic Response Plan, the Government of Canada introduced temporary special Work-Sharing measures in response to COVID-19, including:
- expanding employer eligibility to include businesses that have been active for 1 year rather than 2
- extending agreement duration from 38 to 76 weeks
- waiving the mandatory cooling-off period between agreements so eligible employers may immediately enter into a new agreement
- reducing Recovery Plan requirements to a single line of text in the application form, and
- waiving the requirement for employers to submit financial documentation with their application
These measures are in effect until March 14, 2021 and are open to all sectors/industries across Canada affected by the COVID-19 pandemic and ensuing lockdown and public health protocols.
For the purpose of this section, EI Work-Sharing claims refers to any claims for which at least 1 dollar of Work-Sharing benefits was paid.
2.5.1 Employment Insurance Work-Sharing agreements
The number of Work-Sharing agreements established in a given fiscal year increases during periods of economic shocks and uncertainty, and decreases during periods of economic growth and stability. This countercyclical pattern can be observed by looking at the number of Work-Sharing agreements established in Canada over the past 10 years (consult chart 27).
For the first time since FY1516, the total number of Work-Sharing agreements increased by 134.2%, from 158 agreements established in FY1819 to 370 agreements in FY1920 (consult Chapter 1). Until late January, the average number of Work-Sharing agreements was consistent with that observed FY1718 and FY1819. The dramatic increase in Work-Sharing agreements toward the end of FY1920 could be explained by the global economy gradually slowing down as countries implemented national lockdowns to deal with the COVID-19 pandemic. The number of agreements increased in all provinces, with the largest increase reported in Saskatchewan (+300.0%), followed by British Columbia (+225.0%), and Ontario (+192.7%). In absolute terms, the number of agreements increased more in Ontario (+106 agreements), Alberta (+39 agreements), British Columbia and Saskatchewan (+18 agreements, respectively). The highest number of Work-Sharing agreements was established in Ontario (161 agreements), representing 43.5% of all agreements, followed by Quebec with 64 agreements (17.3% of all agreements). Of the 370 agreements established in FY1920, 20 (5.4%) accessed the temporary special measures (forest sector and steel/aluminium).
Text description of Chart 27
Year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Total count of Work-Sharing agreements | 7,717 | 1,379 | 1,198 | 830 | 649 | 411 | 917 | 862 | 198 | 158 | 370 |
- Source: Employment and Social Development Canada, Common System of Grants and Contributions.
Continuing with the trend observed in previous years, the goods-producing industries represented the majority (71.9%) of all Work-Sharing agreements established in FY1920 (consult table 37).
Industry | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|
Goods-producing industries | 638 (69.6%) |
606 (70.3%) |
130 (65.7%) |
126 (79.7%) |
266 (71.9%) |
Mining, quarrying, and oil and gas extract | 53 (5.8%) |
90 (10.4%) |
3 (1.5%) |
4 (2.5%) |
5 (1.4%) |
Construction | 52 (5.7%) |
86 (10.0%) |
14 (7.1%) |
11 (7.0%) |
25 (6.8%) |
Manufacturing | 526 (57.4%) |
426 (49.4%) |
109 (55.1%) |
106 (67.1%) |
223 (60.3%) |
Rest of goods-producing industries | 7 (0.8%) |
4 (0.5%)s |
4 (2.0%) |
5 (3.2%) |
13 (3.5%) |
Services-producing industries | 279 (30.4%) |
256 (29.7%) |
68 (34.3%) |
32 (20.3%) |
104 (28.1%) |
Wholesale trade | 80 (8.7%) |
65 (7.5%) |
14 (7.1%) |
4 (2.5%) |
10 (2.7%) |
Retail trade | 21 (2.3%) |
26 (3.0%) |
12 (6.1%) |
4 (2.5%) |
16 (4.3%) |
Professional, scientific and technical services | 84 (9.2%) |
66 (7.7%) |
25 (12.6%) |
11 (7.0%) |
24 (6.5%) |
Rest of services-producing industries | 94 (10.3%) |
99 (11.5%) |
17 (8.6%) |
13 (8.2%) |
54 (14.6%) |
Canada | 917 (100.0%) |
862 (100.0%) |
198 (100.0%) |
158 (100.0%) |
370 (100.0%) |
- Source: Employment and Social Development Canada, Common System of Grants and Contributions.
When assessed by firm size, small-sized enterprises (with fewer than 50 employees) comprised 67.6% of all Work-Sharing agreements in the fiscal year examined, down from 69.6% reported in the previous fiscal year. Combined, small and medium-sized enterprises (SMEs) with fewer than 500 employees accounted for 98.4% of all Work-Sharing agreements in FY1920 compared to 99.4% in the previous year. The number of Work-Sharing agreements involving large-sized enterprise (with 500 employees or more) increased in absolute value by 5 additional agreements from FY1819 to FY1920, with 6 new agreements. This distribution of Work-Sharing agreements by firm size is consistent with results from previous years since the 2008 recession; with a significant share of agreements being initiated to assist SMEs to recover from disruptions to their normal levels of business activities.
2.5.2 Employment Insurance Work-Sharing claims and amount paid
As with the number of Work-Sharing agreements, the total number of Work-Sharing claims established and the total amounts paid in Work-Sharing benefits increase during labour market contraction and economic uncertainties, and decrease during periods of economic expansion.
Chart 28 illustrates the number of Work-Sharing claims and benefits paid from FY1516 to FY1920.
In FY1920, the number of Work-Sharing claims established increased sharply, from 3,815 claims in FY1819 to 11,046 in FY1920 (+189.5%). This is the second increase since FY1718. It was in part attributable to the increase in the number of claims established by manufacturing firms (from 3,258 claims in FY1819 to 9,025 claims in FY1920).
Like the number of new claims, the total amount paid in Work-Sharing benefits increased greatly from $5.7 million in FY1819 to $16.5 million in FY1920, representing an increase of 186.8%.
Text description of Chart 28
Category | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|
New claims established (left scale) | 20,521 | 11,936 | 3,708 | 3,815 | 11,046 |
Amount paid in benefits ($ millions) (right scale) | $39.6 | $45.3 | $12.5 | $5.7 | $16.5 |
- Note: Includes all claims for which at least $1 of Work-Sharing benefits was paid.
- * In previous EI monitoring and assessment reports, amounts paid for Work-Sharing benefits were based on a 10% sample of EI administrative data. Starting in FY1819, amounts paid are based on a 100% sample. Consequently, statistics reported for previous years have been revised.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
Employment Insurance Work-Sharing claims and amount paid, by region, gender, age and industry
As outlined in table 38, year-over-year, the number of new claims increased in all provinces and territories. In absolute value, the largest increase was in Ontario (+2,650 claims), followed by Quebec (+1,385 claims), and Manitoba (+1,192 claims). Like in the previous year, claimants from Ontario established the largest share of total new claims (36.0%), followed by claimants from Quebec (21.5%) and Manitoba (15.6%). In terms of amount paid, it was the same provinces with Ontario receiving the largest share with 32.8%, followed by Quebec (25.2%) and Manitoba (16.3%) in FY1920. There were no claims established in the territories.
Category | New claims established FY1819 | New claims established FY1920 | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
---|---|---|---|---|
Atlantic provinces | 26 (0.7%) |
189 (1.7%) |
$0.0 (0.8%) |
$0.2 (0.9%) |
Quebec | 1,001 (26.2%) |
2,386 (21.5%) |
$1.8 (32.1%) |
$4.2 (25.2%) |
Ontario | 1,339 (35.1%) |
3,989 (36.0%) |
$1.5 (25.9%) |
$5.4 (32.8%) |
Manitoba | 539 (14.1%) |
1,731 (15.6%) |
$0.5 (8.4%) |
$2.7 (16.3%) |
Saskatchewan | 212 (5.6%) |
643 (5.8%) |
$0.5 (8.9%) |
$1.7 (10.0%) |
Alberta | 600 (15.7%) |
1,089 (9.8%) |
$1.1 (19.0%) |
$1.4 (8.6%) |
British Columbia | 98 (2.6%) |
1,045 (9.4%) |
$0.3 (5.0%) |
$1.0 (6.1%) |
Men | 2,721 (71.3%) |
8,544 (77.2%) |
$4.3 (74.1%) |
$12.8 (77.7%) |
Women | 1,094 (28.7%) |
2,528 (22.8%) |
$1.5 (25.9%) |
$3.7 (22.3%) |
24 years old and under | 235 (6.2%) |
749 (6.8%) |
$0.3 (4.5%) |
$1.0 (6.1%) |
25 to 54 years old | 2,489 (65.2%) |
7,472 (67.5%) |
$3.7 (65.2%) |
$10.8 (65.2%) |
55 years old and over | 1,091 (28.6%) |
2,851 (25.7%) |
$1.7 (30.3%) |
$4.7 (28.6%) |
Goods-producing industries | 3,461 (90.7%) |
9,347 (84.6%) |
$4.9 (85.3%) |
$14.9 (90.4%) |
Manufacturing | 3,258 (85.4%) |
9,025 (81.7%) |
$4.6 (80.3%) |
$14.3 (86.6%) |
Rest of goods-producing industries | 203 (5.3%) |
322 (2.9%) |
$0.3 (5.0%) |
$0.6 (3.8%) |
Service-producing industries | 354 (9.3%) |
1,699 (15.4%) |
$0.8 (14.7%) |
$1.6 (9.6%) |
Wholesale trade | 63 (1.7%) |
581 (5.3%) |
$0.2 (3.4%) |
$0.5 (3.0%) |
Professional, scientific and technical services | 64 (1.7%) |
311 (2.8%) |
$0.2 (3.7%) |
$0.4 (2.6%) |
Rest of service-producing industries | 227 (6.0%) |
807 (7.3%) |
$0.4 (7.6%) |
$0.7 (4.0%) |
Canada | 3,815 (100.0%) |
11,046 (100.0%) |
$5.7 (100.0%) |
$16.5 (100.0%) |
- Note: Data may not add up to the total due to rounding. Percentage share is based on unrounded numbers. Includes claims for which at least $1 of Employment Insurance (EI) Work-Sharing benefits was paid.
- r In previous EI monitoring and assessment reports, amounts paid for Work-Sharing benefits were based on a 10% sample of EI administrative data. Starting in FY1819, amounts paid are based on a 100% sample. Consequently, statistics reported for previous years have been revised.
- Source: Employment and Social Development Canada, EI administrative data. Data for claims and amount paid are based on a 100% sample of EI administrative data.
Men continue to be more likely to make use of the Work-Sharing program—a trend that has been persistent over the years. In FY1920, they accounted for 77.2% of new Work-Sharing claims and 77.7% of total benefits paid. Workers aged 25 to 54 years accounted for 67.5% of all new Work-Sharing claims and 67.2% of total benefits paid. Similar to previous years, youth were under-represented among new Work-Sharing claims established (6.8%) and benefits paid (6.1%) compared with their total share of employment (13.1%) in FY1920.Footnote 93
From an industry perspective, the Work-Sharing program was most frequently used by workers in the Manufacturing industry, which is consistent with historical patterns. Employees in the Manufacturing industry accounted for the largest share of new EI Work-Sharing claims (81.7%) established in FY1920, down from 85.4% in the previous fiscal year. These workers received the largest share of the total EI Work-Sharing benefits paid (86.6%), up from 80.3% in FY1819 (consult table 38), which was disproportionate to their share of total employment (which was around 9.1%).Footnote 94
Among the services-producing industries, workers in the Wholesale trade and in the Professional, scientific and technical services industries accounted for 5.3% and 2.8% of Work-Sharing claims, respectively, in FY1920. In terms of amount paid, workers in the Wholesale trade industry received 3.0% of total Work-Sharing benefits paid in FY1920, closely followed by workers in the Professional, scientific and technical services industry, who accounted for 2.6% of total Work-Sharing benefits paid. Consult annex 2.21.1 for detailed information on new claims established and annex 2.21.4 for amount paid by industry.
2.5.3 Level and duration of Employment Insurance Work-Sharing benefits
The Work-Sharing program is designed to provide income support for workers in firms that experience temporary reductions in demand for reasons beyond their control. In view of this, the program provides partial income stabilization to offset reductions in hours that are agreed upon by the employees participating in the program. However, the program is not meant to provide full coverage of insurable hours or insurable earnings. As a result, the data reported on Work-Sharing claims are not directly comparable to other types of EI benefits. This is particularly true of the weekly benefit rates paid to claimants, which are meant to only cover 10% to 60% of a regular work week for affected employees in a work unit subject to a Work-Sharing agreement, depending on the agreed upon decrease in work levels. Because of this, the weekly benefit rates for Work-Sharing claimants are lower on average than for other types of EI benefits. Because the weekly Work-Sharing benefit rate is determined by employees’ wages and the degree of reductions in the hours worked (between 10% and 60%), significant variability is also observed across industries in the reported weekly benefit rates.
In FY1920, the average weekly Work-Sharing benefit rate increased by 14.9% to $139, up from the average weekly benefit rate of $121 in the previous fiscal year (consult table 39). It increased in all provinces, except British Columbia where it decreased by 15.0%. The highest average weekly benefit rate was observed in Newfoundland and Labrador ($255), followed by Alberta ($159), Saskatchewan ($152) and Manitoba ($149), while the lowest was in Prince Edward Island ($90). From a gender perspective, the average weekly Work-Sharing benefit rate for men and women increased sharply compared to the previous year, +10.9% and +26.3% respectively. Men received the highest weekly benefit rate ($143) compared to women ($125). Concerning the different age groups, the average weekly benefit rate for all age groups increased. Workers aged 45 to 54 years have the highest average rate ($140), followed by those aged between 25 and 44 years ($139) and those aged 55 years and over ($138).
Category | New claims established FY1819 | New claims established FY1920 | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
---|---|---|---|---|
Atlantic provinces | 26 (0.7%) |
189 (1.7%) |
$0.0 (0.8%) |
$0.2 (0.9%) |
Quebec | 1,001 (26.2%) |
2,386 (21.5%) |
$1.8 (32.1%) |
$4.2 (25.2%) |
Ontario | 1,339 (35.1%) |
3,989 (36.0%) |
$1.5 (25.9%) |
$5.4 (32.8%) |
Manitoba | 539 (14.1%) |
1,731 (15.6%) |
$0.5 (8.4%) |
$2.7 (16.3%) |
Saskatchewan | 212 (5.6%) |
643 (5.8%) |
$0.5 (8.9%) |
$1.7 (10.0%) |
Alberta | 600 (15.7%) |
1,089 (9.8%) |
$1.1 (19.0%) |
$1.4 (8.6%) |
British Columbia | 98 (2.6%) |
1,045 (9.4%) |
$0.3 (5.0%) |
$1.0 (6.1%) |
Men | 2,721 (71.3%) |
8,544 (77.2%) |
$4.3 (74.1%) |
$12.8 (77.7%) |
Women | 1,094 (28.7%) |
2,528 (22.8%) |
$1.5 (25.9%) |
$3.7 (22.3%) |
24 years old and under | 235 (6.2%) |
749 (6.8%) |
$0.3 (4.5%) |
$1.0 (6.1%) |
25 to 54 years old | 2,489 (65.2%) |
7,472 (67.5%) |
$3.7 (65.2%) |
$10.8 (65.2%) |
55 years old and over | 1,091 (28.6%) |
2,851 (25.7%) |
$1.7 (30.3%) |
$4.7 (28.6%) |
Goods-producing industries | 3,461 (90.7%) |
9,347 (84.6%) |
$4.9 (85.3%) |
$14.9 (90.4%) |
Manufacturing | 3,258 (85.4%) |
9,025 (81.7%) |
$4.6 (80.3%) |
$14.3 (86.6%) |
Rest of goods-producing industries | 203 (5.3%) |
322 (2.9%) |
$0.3 (5.0%) |
$0.6 (3.8%) |
Service-producing industries | 354 (9.3%) |
1,699 (15.4%) |
$0.8 (14.7%) |
$1.6 (9.6%) |
Wholesale trade | 63 (1.7%) |
581 (5.3%) |
$0.2 (3.4%) |
$0.5 (3.0%) |
Professional, scientific and technical services | 64 (1.7%) |
311 (2.8%) |
$0.2 (3.7%) |
$0.4 (2.6%) |
Rest of service-producing industries | 227 (6.0%) |
807 (7.3%) |
$0.4 (7.6%) |
$0.7 (4.0%) |
Canada | 3,815 (100.0%) |
11,046 (100.0%) |
$5.7 (100.0%) |
$16.5 (100.0%) |
- Note: Percentage change is based on unrounded numbers. Includes claims for which at least $1 of Work-Sharing benefits was paid.
- c Data for some industries have been combined for confidentiality purposes.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
The average weekly Work-Sharing benefit rate in goods-producing industries increased by 16.0% to $138 in FY1920. The average weekly Work-Sharing benefit rate increased to $143 from $133 in service-producing industries. Consult annex 2.21.3 for detailed information on average Work-Sharing weekly benefit rate by industry.
The average duration of Work-Sharing claims completed in FY1920 was 14.7 weeks, a slight decrease of 0.8 weeks from FY1819 (15.5 weeks). This represents the second decline in the average duration of Work-Sharing claims since FY1516 (consult chart 29).
Text description of Chart 29
Year | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|
Average duration (weeks) | 15.6 | 14.4 | 17.4 | 23.8 | 15.5 | 14.7 |
- Note: Includes all claims for which at least $1 of Work-Sharing benefits was paid.
- r Revised
- P Preliminary estimates.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
2.5.4 Employment Insurance Work-Sharing agreements subject to early termination
When a firm returns to normal levels of business activity ahead of recovery plan timelines, or withdraws from the Work-Sharing agreement for other reasons (for example, the firm is shutting down or deciding to go ahead with layoffs),Footnote 95 the Work-Sharing agreement ends before the anticipated end date—this is referred to as early termination. During the last 5 fiscal years, just over one-third (37%) of agreements were terminated earlier than their scheduled end date and about two-thirds (65%) of firms returned to their normal level of employment.2.6 Employment Insurance special benefits
In this section
- 2.6.1 Employment Insurance special benefit claims overview
- 2.6.2 Employment Insurance maternity and parental benefits
- 2.6.3 Employment Insurance sickness benefits
- 2.6.4 Employment Insurance compassionate care benefits
- 2.6.5 Employment Insurance family caregiver benefit for adults
- 2.6.6 Employment Insurance family caregiver benefit for children
- 2.6.7 Employment Insurance special benefits for self-employed persons
EI special benefits provide temporary income support to employees, self-employed persons participating in the program and fishers who are eligible and unable to work due to specific life circumstances. These include sickness; pregnancy or giving birth; and providing care to a newborn or newly adopted child, and providing care or support to a critically ill or injured person or someone needing end-of-life care
To qualify for EI special benefits, insured employees must have accumulated a minimum of 600 hours of insurable employment during their qualifying period, meet the eligibility criteria for the special benefits claimed, and have their normal weekly earnings reduced by more than 40%. Self-employed persons may qualify if they opted into the EI program and paid EI premiums at least 1 full year prior to claiming benefits, have self-employment income that meets the minimum self-employment eligibility thresholdFootnote 96 in the calendar year preceding the claim, and meet other eligibility criteria specific to the special benefits being claimed.
Given the COVID-19 pandemic and the introduction of the Canada Emergency Response Benefit, no new claims for regular or sickness benefits were established between March 15, 2020, and September 26, 2020. However, claims for the other types of special benefits (maternity, parental, compassionate care, family caregiver benefits for adults or children) could be established. Therefore, the results on new claims established presented in the next subsections cover the period from April 1, 2019, to March 31, 2020, with the exception of the results for sickness benefits, which cover the period from April 1, 2019, to March 14, 2020. Furthermore, the results on amount of benefits paid out cover the full period from April 1, 2019 to March 31, 2020.
Subsection 2.6.1 provides a summary overview of special benefits in terms of the number of new claims established, amount paid and level of benefits. The following subsections examine the EI special benefits by type. Subsection 2.6.2 discusses maternity and parental benefits. Sickness benefits are introduced in subsection 2.6.3. Subsections 2.6.4, 2.6.5 and 2.6.6 examine compassionate care benefits, the family caregiver benefit for adults and the family caregiver benefit for children, respectively. Finally, subsection 2.6.7 looks at the use of special benefits by self-employed persons who have opted into the EI program. For the purpose of the following section, EI special benefit claims refer to EI claims for which at least 1 dollar of special benefits was paid.Footnote 97
2.6.1 Employment Insurance special benefit claims overview
During FY1920, almost 619,300 new EI special benefit claims were established, representing a 2.1% increase over the previous year (consult table 40), and the ninth consecutive increase in the number of claims established. More than two-thirds of these special benefit claims included sickness benefits (68.0%), while 34.4% and 27.1% included parental and maternity benefits, respectively. Approximately 1.9% of all special benefit claims included family caregiver benefits for adults, 1.2% had compassionate care benefits, and 0.9% included family caregiver benefits for children.Footnote 98
Benefit type | Number of claims FY1819 |
Number of claims FY1920 |
Change (%) | Amount paid ($ million) FY1819 |
Amount paid ($ million) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Maternity | 170,010 | 167,690 | -1.4% | $1,164.1 | $ 1,208.1 | +3.8% |
Parental | 200,030 | 212,750 | +6.4% | $2,730.7r | $2,921.7 | +7.0% |
Sickness | 420,840 | 421,140 | +0.1% | $1,769.6 | $1,888.8 | +6.7% |
Compassionate care | 8,385 | 7,581 | -9.6% | $45.8 | $39.6 | -13.7% |
Family caregiver for adults | 11,365r | 11,592 | +2.0% | $49.1r | $55.7 | +13.4% |
Family caregiver for children | 5,722r | 5,403 | -5.6% | $36.9r | $36.3 | -1.7% |
Canada | 606,540 | 619,270 | +2.1% | $5,796.2$r | $6,150.1 | +6.1% |
- Note: Data may not add up to total due to rounding. Percentage change is based on unrounded numbers. Includes all claims for which at least $1 in EI special benefit was paid. New claims established by benefit type may not sum as claimants can receive multiple benefit types on a single claim.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data on maternity, parental and sickness benefits are based on a 10% sample of EI administrative data, whereas data on compassionate care benefits, family caregiver benefits for adults and family caregiver benefits for children are based on a 100% sample.
For FY1920, parental benefits experienced the largest increase in the number of new claims (+6.4%) over the previous fiscal year. This increase is due to a rise in claims established by men and can largely be explained by the additional weeks of benefits available to parents whose child was born or adopted on or after March 17, 2019, and who share parental benefits. Conversely, claims for maternity benefits, compassionate care benefits and family caregiver benefits for children decreased compared with FY1819.
The total amount paid out in special benefits increased by 6.1% over the previous fiscal year, totalling $6.2 billion for FY1920. Amounts paid have increased for all benefit types, with the exception of compassionate care benefits and family caregiver benefits for children.
As in previous years, almost two-thirds of special benefit claims (61.7%) were established by women. However, the share of claims established by men increased by 2.0 percentage points from 36.3% in FY1819 to 38.3% in FY1920. This is due in part to the higher proportion of parental claims established by men. Women continued to receive a large share of the amounts paid in special benefits (79.9%), particularly because they received the majority of parental benefits, and only women can receive maternity benefits.
By age, applicants under the age of 45 accounted for almost two-thirds (64.5%) of new special benefit claims and received the largest share of the total amount paid in special benefits (82.0%).
Excluding extended parental benefits, which are paid at a lower benefit rate than other types of special benefits (consult subsection 2.6.2), the average weekly benefit rate for special benefits in FY1920 increased by 4.0% to $468. The share of special benefit claims receiving the maximum weekly benefit rate was 45.2%, an increase of 2.3 percentage points from the previous fiscal year.
Employment Insurance special benefits and firms
According to 2018 tax data, which is the most recent microdata available when writing this report, there were approximately 206,400 firms (16.8% of all firms in 2018) which were associated with the establishment of an EI special benefit claim as a claimant’s current or most recent employer (consult table 41). This is an increase of 1.5% from 2017.
Firm size | Number of firms | Number of firms with at least 1 employee receiving EI special benefits | Employment distribution** (% share) |
Distribution of EI special benefit claimants*** (% share) |
---|---|---|---|---|
Small | 1,112,500 | 119,540 | 21.3% | 18.7% |
Small-medium | 97,220 | 67,740 | 19.7% | 21.9% |
Medium-large | 16,540 | 15,790 | 16.2% | 18.7% |
Large | 3,310 | 3,300 | 42.9% | 40.8% |
Canada | 1,229,580 | 206,370 | 100.0% | 100.0% |
- * The categories of firm size reflect those found in Business Dynamics in Canada, a Statistics Canada publication. Small-sized firms are defined as those that employ 1 to 19 employees. Small-to-medium sized firms employ 20 to 99 employees. Medium-to-large sized firms employ 100 to 499 employees. Large-sized firms employ 500 employees or more.
- ** The number of workers in a firm is the number of individuals with employment income in that firm, as indicated on a T4 form. The number of workers is adjusted so that each individual in the labour force is only counted once and individuals who work for more than 1 firm are taken into account. For example, if an employee earned $25,000 in firm 1 and $25,000 in firm 2, then he or she would be recorded as 0.5 employees at the first firm and 0.5 employees at the second firm.
- *** These figures are based on the number of people receiving EI special benefits in 2018. Sources: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI data. Canada Revenue Agency (CRA) administrative data. CRA data are based on a 100% sample.
The distribution of the workforce and of EI special benefit claimants is roughly similar by firm size, which is unlike EI regular benefits in that larger firms are typically under-represented (consult section 2.2). For special benefits, the biggest difference between employee and claimant distributions was observed in small-sized firms, with a difference of 2.6 percentage points. Workforce adjustment issues during a difficult business or economic context may offer some explanation of the higher relative use of EI regular benefits among small firms, the use of EI special benefits is more likely related to the demographic profile of the workforce, individual circumstances, and the nature of the work in the industry.
2.6.2 Employment Insurance maternity and parental benefits
EI maternity benefits are available to eligible persons who cannot work because they are pregnant or have recently given birth. EI maternity claimants need to provide Service Canada with a signed statement attesting to their pregnancy and their expected or actual date of delivery. Qualified claimants may receive up to 15 weeks of maternity benefits. Benefits can begin to be paid as early as 12 weeks prior to the expected date of birth and can end as late as 17 weeks after the child’s actual birth date.Footnote 99
EI parental benefits are available to eligible parents who take a leave from work to care for a newborn or recently adopted child or children. Claimants must provide a signed certificate certifying the child’s date of birth or the date of the child’s placement in their home for an adoption. Parents must choose between standard parental benefits or extended parental benefits.Footnote 100
- Standard parental benefits provide up to 40 weeks of benefits paid over a maximum of 12 months (this includes the additional 5 weeks of benefits available since March 17, 2019, to parents who share parental benefits).Footnote 101 A parent cannot receive more than 35 weeks of standard benefits. The benefit rate is 55% of weekly insurable earnings up to a maximum of $562 in 2019 and $573 in 2020.
- Extended parental benefits provide up to 69 weeks of benefits paid over a maximum of 18 months (this includes the additional 8 weeks of benefits available since March 17, 2019, to parents who share parental benefits).Footnote 102 A parent cannot receive more than 61 weeks of extended benefits. The benefit rate is 33% of weekly insurable earnings up to a maximum of $337 in 2019 and $344 in 2020.
Parents can share and use benefits at the same time or different times. Parents must choose the same parental benefits option (standard or extended) when they apply for benefits. The choice of the first parent who completes the application is binding on other parents. When parental benefits are shared by parents, only 1 parent will need to serve a waiting period. Once parental benefits have been paid out to any eligible parent, they cannot change their duration option but may change how they share the weeks of benefits.
It should be noted that the maternity and parental benefits offered under the EI program are available across Canada with the exception of Quebec. For parents who reside in Quebec, the Quebec Parental Insurance Plan (QPIP) has provided eligible salaried workers and self-employed persons with maternity, paternity, parental, or adoption benefits since January 1, 2006.
Employment Insurance maternity and parental benefits: Coverage and accessibility
According to the 2019 Employment Insurance Coverage Survey (EICS), 223,500 recent mothers (those with a child aged 12 months or less) living outside Quebec had insurable employment in 2019, which represents 74,2% of all recent mothers. Among these recent mothers with insurable employment, 87.9% reported having received maternity or parental benefits, which represents an increase of 2.5 percentage points from 2018 (85.4%) (consult chart 30).
Text description of Chart 30
Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
---|---|---|---|---|---|---|---|---|---|---|
Share of recent mothers | 84.9% | 85.1% | 85.4% | 89.3% | 86.1% | 83.0% | 88.8% | 87.2% | 85.4% | 87.9% |
- Source: Statistics Canada, Employment Insurance Coverage Survey, 2010 to 2019
According to EICS data, the proportion of spouses of recent mothers living outside Quebec who received or intended to claim EI parental benefits was 20.5% in 2019 compared to 15.0% in 2018 and 11.9% in 2017. This increase can be explained by the additional weeks of EI benefits that have been available since March 2019 to new parents sharing parental benefits. In Quebec, a larger share of spouses of recent mothers received parental benefits or intended to receive them (85.6%), which may be largely due to the paternity benefits paid specifically to fathers as part of QPIP.
Access to maternity and parental benefits and coverage
According to the 2019 EICS data, the share of recent mothers with insurable employment in Quebec who received maternity or parental benefits under QPIP (97.2%) is greater than that of persons having received EI maternity or parental benefits in the rest of Canada (87.9%). This situation can be explained by several factors, most notably the lower eligibility requirement based on earnings under QPIP ($2,000) and the mandatory participation of self-employed persons under QPIP in comparison to the voluntary participation in the EI program.
Employment Insurance maternity claims, amount paid and level of benefits
In FY1920, there were nearly 167,700 new maternity claims established, which represents a slight decrease of 1.4% from FY1819 (consult table 42). The number of maternity claims decreased in all provinces and territories except Ontario and Alberta, where it increased slightly.
Category | Number of claims FY1819 |
Number of claims FY1920 |
Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 2,550 | 2,210 | -13.3% | $17.5 | $16.6 | -5.1% |
Prince Edward Island | 890 | 830 | -6.7% | $5.9 | $5.8 | -0.7% |
Nova Scotia | 5,410 | 4,640 | -14.2% | $33.3 | $34.1 | +2.4% |
New Brunswick | 4,350 | 3,830 | -12.0% | $27.7 | $26.2 | -5.7% |
Quebec | n/a | n/a | n/a | n/a | n/a | n/a |
Ontario | 83,500 | 84,930 | +1.7% | $576.3 | $607.0 | +5.3% |
Manitoba | 8,580 | 8,280 | -3.5% | $55.5 | $55.5 | -0.1% |
Saskatchewan | 8,340 | 7,970 | -4.4% | $58.1 | $55.9 | -3.9% |
Alberta | 29,360 | 29,580 | +0.7% | $203.9 | $218.4 | +7.1% |
British Columbia | 26,110 | 24,790 | -5.1% | $179.5 | $183.5 | +2.2% |
Yukon | 280 | 210 | -25.0% | $2.1 | $1.7 | -16.3% |
Northwest Territories | 380 | 250 | -34.2% | $2.5 | $2.1 | -16.4% |
Nunavut | 260 | 170 | -34.6% | $1.8 | 41.3 | -25.5% |
24 years old and under | 14,120 | 12,370 | -12.4% | $75.6 | $68.5 | -9.3% |
25 to 39 years old | 148,960 | 148,280 | -0.5% | $1,039.6 | $1,088.2 | +4.7% |
40 years old and over | 6,930 | 7,040 | +1.6% | $49.0 | $51.3 | +4.7% |
Canada | 170,010 | 167,690 | -1.4% | $1,164.1 | $1,208.1 | +3.8% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI maternity benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Women between 25 and 39 years old established 88.4% of new maternity claims during the reporting period, while women aged 24 and under and those aged 40 years old and over represented 7.4% and 4.2%, respectively. While the number of new claims established by mothers aged 25 to 39 years old and those aged 40 years old and over has remained stable, the number of claims for mothers 24 years old and under reported a large decrease compared to the previous year.
The total amount paid out in maternity benefits increased by 3.8% from FY1819 to just over $1.2 billion in FY1920. The total amount paid increased in Nova Scotia, Ontario, Alberta, and British Columbia, while the other provinces and territories recorded lower amounts than in FY1819. At the same time, maternity benefit payments increased for mothers aged 25 to 39 and for those aged 40 and over, but decreased for those aged 24 and under.
Maternity benefits are frequently combined in the same claim with other benefit types, particularly parental and sickness benefits; 98.8% of all EI maternity claims completed during FY1920 included another type of EI benefit (consult subsection 2.1.2).
The average weekly maternity benefit rate increased by 3.6% to $482 in FY1920. Just over half of all claimants (52.5%) received the maximum weekly maternity benefit rate. On average, the highest weekly maternity benefit rate was for claims established in Nunavut ($541) and the Northwest Territories ($525) and by mothers aged 40 and over ($501).
Employment Insurance parental claims, amount paid and level of benefits
The total number of new parental claims established increased by 6.4% from FY1819 to 212,800 in FY1920 (consult table 43). Extended parental benefits, which had the largest increase, accounted for 17.8% of all claims established during the reporting period, up from 16.0% in FY1819. Claims from adoptive parents continued to account for less than 1.0% (about 1,500) of all parental claims in FY1920.
Category | Number of claims FY1819 |
Number of claims FY1920 |
Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Standard parental benefits | 168,120 | 174,980 | +4.1% | $2,511.5 | $2,416.0 | -3.8% |
Extended parental benefits | 31,910 | 37,770 | +18.4% | $219.2r | $505.7 | +130.7% |
Newfoundland and Labrador | 2,720 | 2,360 | -13.2% | $38.4 | $37.8 | -1.5% |
Prince Edward Island | 960 | 1,000 | +4.2% | $14.3 | $13.2 | -7.8% |
Nova Scotia | 6,190 | 5,990 | -3.2% | $74.1r | $80.5 | +8.7% |
New Brunswick | 4,960 | 5,010 | +1.0% | $63.3 | $66.1 | +4.5% |
Quebec | n/a | n/a | n/a | n/a | n/a | n/a |
Ontario | 99,620 | 109,200 | +9.6% | $1,348.3r | $1,468.8 | +8.9% |
Manitoba | 10,220 | 10,600 | +3.7% | $131.6 | $139.9 | +6.3% |
Saskatchewan | 9,480 | 9,720 | +2.5% | $135.0 | $133.7 | -1.0% |
Alberta | 33,840 | 35,290 | +4.3% | $478.1r | $517.5 | +8.2% |
British Columbia | 30,790 | 32,710 | +6.2% | $431.9r | $449.5 | +4.1% |
Yukon | 400 | 320 | -20.0% | $4.7 | $4.9 | +5.9% |
Northwest Territories | 490 | 300 | -38.8% | $5.4 | $5.7 | +5.5% |
Nunavut | 360 | 250 | -30.6% | $5.8r | $4.1 | -28.7% |
Men | 33,600 | 47,390 | +41.0% | $257.8r | $315.5 | +22.4% |
Women | 166,430 | 165,360 | -0.6% | $2,472.9r | $2,606.2 | +5.4% |
24 years old and under | 14,660 | 13,200 | -10.0% | $169.7 | $170.2 | +0.3% |
25 to 39 years old | 172,690 | 184,640 | +6.9% | $2,406.9r | $2,581.0 | +7.2% |
40 years old and over | 12,680 | 14,910 | +17.6% | $154.1r | $170.4 | +10.6% |
Canada | 200,030 | 212,750 | +6.4% | $2,730.7r | $2,921.7 | +7.0% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI parental benefits was paid.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The number of parental claims established increased in most provinces, with the exception of Newfoundland and Labrador and Nova Scotia, while it decreased in the territories. As in the past, women established the vast majority of parental claims (77.7%) in FY1920. However, the increase in the number of claims in FY1920 is due to a rise in claims established by men (consult chart 31). The share of claims established by men increased by 5.5 percentage points to 22.3% of claims in FY1920. This increase can be attributed to the additional weeks of benefits available to parents of a child born or adopted on or after March 17, 2019, who share parental benefits.
Text description of Chart 31
Year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Men | 26,160 | 26,710 | 26,080 | 26,390 | 25,480 | 26,540 | 26,690 | 29,490 | 30,850 | 33,600 | 47,390 |
Women | 167,950 | 163,080 | 162,850 | 166,080 | 165,640 | 164,780 | 169,970 | 166,470 | 167,200 | 166,430 | 165,360 |
- Note: Includes claims for which at least $1 of EI parental benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The number of new parental claims established by claimants aged 24 and under decreased compared to FY1819, while it increased for claimants aged 25 to 39 and for those aged 40 and over.
The benefits paid out in extended parental benefits totalled $2.9 billion in FY1920, a 7.0% increase from FY1819, and the largest increase over the last 11 years (consult chart 32). The increase in parental benefits paid out was due to an increase in the number of claims established (+6.4%) during the reporting period. Extended parental benefits paid out for FY1920 represented 17.3% of total parental benefits paid out, which was equivalent to the proportion (17.8%) of these claims among all parental claims.
Text description of Chart 32
Year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Number of claims (left scale) | $2.20 | $2.18 | $2.22 | $2.30 | $2.42 | $2.52 | $2.64 | $2.71 | $2.78 | $2.73 | $2.92 |
Amount paid (right scale) | 194,110 | 189,790 | 188,930 | 192,470 | 191,120 | 191,320 | 196,660 | 195,960 | 198,050 | 200,030 | 212,750 |
- Note: Includes claims for which at least $1 of EI parental benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
The provinces and territories, except Newfoundland and Labrador, Prince Edward Island, Saskatchewan and Nunavut, recorded increases in benefits paid out in parental benefits compared to FY1819. Men experienced a higher annual increase in total amount paid in parental benefits (+22.4%) than women (+5.4%). Claimants aged 40 and over had the largest increase (+10.6%) in benefits paid among all age groups.
As stated above, the benefit rate (55% vs. 33% of average weekly earnings) and the maximum weekly benefit are calculated differently depending on whether the claimant is receiving standard or extended benefits. The average weekly standard parental benefit was $495 in FY1920, an increase of 4.2% from FY1819. More than half (58.2%) of all claimants received the maximum weekly standard parental benefit rate. On average, the weekly benefit rate was higher for standard parental claims established in the Northwest Territories ($544), by men ($536) and by claimants aged 40 and over ($520).
The average weekly extended parental benefit rate was $307 in FY1920, up 3.4% from FY1819. More than half (60.1%) of claimants received the maximum weekly extended parental benefit rate. On average, the weekly extended parental benefit rate was higher for claims established in territories ($337), by men ($331) and by claimants aged 40 and over ($319).
Duration of Employment Insurance maternity and parental benefits
As observed during previous fiscal years, mothers typically use almost all of the EI maternity weeks to which they were entitled. In FY1920, 93.3% of mothers received maternity benefits during the 15 weeks available to them. The average duration of completed maternity claims was 14.7 weeks during the reporting period (consult table 44).
Type of benefits | Men P | Women P |
---|---|---|
Maternity | n/a | 14.7 |
Standard parental | 13.7 | 32.6 |
Extended parental | 16.6 | 55.1 |
- Note: Includes completed claims for which at least $1 of EI maternity benefits or parental benefits was paid.
- P Preliminary estimates.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data on duration of maternity benefits are based on a 10% sample of EI administrative data, while data on duration of parental benefits are based on a 100% sample of EI administrative data.
Statistics on standard parental claims completed during the reporting period show that women received an average of 32.6 weeks, whereas men received 13.7 weeks. For extended parental claims completed in FY1920, the average duration was 55.1 weeks for women and 16.6 weeks for men.
It is too early to present results on sharing and using the additional weeks of parental benefits available to parents whose children were born or placed with them in the case of adoption on or after March 17, 2019. Only a small number of the claims completed in FY1920 were eligible. Furthermore, since the duration of benefits can be up to 18 months after birth or placement in the case of adoption, these completed claims are generally short, meaning that duration may be underestimated and data may be misrepresented. Future Monitoring and Assessment Reports will present these results more accurately. Consult the methodological note which presents changes related to statistics on sharing and duration of parental claims.
Methodological note: Changes related to statistics on sharing and duration of parental claims
In previous Monitoring and Assessment Reports, statistics were presented on the average number of weeks of parental benefits used by parents who shared or did not share these benefits. Information on sharing parental benefits was based on the EI application form completed by the parents and reflected the intention to share benefits at the time of the application, rather than how benefits are actually shared when they are received.
Information on how parental benefits for new claims established are actually shared is available from September 2019 onward.* In order to ensure that statistics on the actual sharing rate and the duration of benefits received by each parent (including additional weeks of benefits) are as accurate as possible, they will be based on completed parental claims. However, it is too early to present these statistics since most parental claims established in September 2019 or later had not been completed by the end of the fiscal year under review (March 2020). Future Monitoring and Assessment Reports will present these statistics as more mature data becomes available.
In addition, statistics on the duration of parental claims in previous Monitoring and Assessment Reports were based on a 10% sample of EI administrative data. In order to consider the information on how parental benefits are actually shared, a 100% sample of EI administrative data must be used. As a result, beginning with this report, statistics on the duration of parental benefits (and the actual sharing rate reported in future reports) are based on a 100% sample of the data. The number of parental claims established and the amount of parental benefits paid out continue to be based on a 10% sample of the data.
- * Information on how parental benefits are actually shared is only available for a small number of claims established before September 2019. As a result, the actual sharing rate may be underestimated for these parental claims.
2.6.3 Employment Insurance sickness benefits
EI sickness benefits are paid for up to 15 weeks to eligible people who are unable to work because of illness, injury or quarantine, but would otherwise be available to work. The maximum duration of benefits to which a sickness claimant is entitled depends on the recommendations from their physician or an approved medical practitioner. With job protection through the Canada Labour Code and the provincial and territorial statutes under labour law, EI sickness benefits allow claimants to recover while maintaining their attachment to the labour market. Claimants must provide Service Canada with a medical certificate signed by a doctor or approved medical practitioner.
Premium Reduction Program
Employers who offer short-term disability plans to their employees that meet requirements stipulated in the Employment Insurance Act and Employment Insurance Regulations can register their plans with the Employment Insurance Commission to obtain a lower EI premium rate than the regular employer rate through the Premium Reduction Program (PRP).
More information on the effect on premiums and the number of firms affected can be found in section 2.7.
Given the COVID-19 pandemic and the introduction of the Canada Emergency Response Benefit, no new claims for sickness benefits were established between March 15, 2020, and September 26, 2020. Therefore, the results on new claims established in this subsection cover the period from April 1, 2019 to March 14, 2020. Furthermore, the results on amount of benefits paid out cover the full period from April 1, 2019 to March 31, 2020.
Employment Insurance sickness claims, amount paid and level of benefits
Over FY1920, there were 421,100 new sickness claims established, relatively unchanged from FY1819 with an increase of 0.1%. Five provinces and territories experienced an increase in claims and the same number also saw a decrease. Three provinces remained relatively unchanged from FY1819: Quebec, New Brunswick, and British Columbia (consult table 45).
Category | Number of claims FY1819 | Number of claims FY1920 | Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 11,500 | 11,340 | -1.4% | $48.7 | $50.9 | +4.6% |
Prince Edward Island | 5,960 | 6,120 | +2.7% | $21.4 | $21.1 | -1.6% |
Nova Scotia | 21,130 | 21,910 | +3.7% | $81.4 | $85.7 | +5.3% |
New Brunswick | 30,080 | 30,080 | 0.0% | $111.2 | $114.0 | +2.5% |
Quebec | 134,600 | 134,070 | -0.4% | $507.0 | $553.4 | +9.2% |
Ontario | 112,990 | 111,200 | -1.6% | $519.7 | $545.8 | +5.0% |
Manitoba | 11,030 | 11,380 | +3.2% | $48.2 | $49.3 | +2.3% |
Saskatchewan | 8,200 | 7,890 | -3.8% | $36.4 | $39.3 | +7.9% |
Alberta | 31,430 | 32,930 | +4.8% | $150.3 | $162.9 | +8.3% |
British Columbia | 53,190 | 53,390 | +0.4% | $241.5 | $261.4 | +8.2% |
Yukon | 300 | 440 | +46.7% | $1.8 | $2.1 | +17.5% |
Northwest Territories | 280 | 250 | -10.7% | $1.4 | $1.8 | +30.3% |
Nunavut | 150 | 140 | -6.7% | $0.6 | $1.2 | +100.2% |
Male | 184,820 | 189,250 | +2.4% | $830.0 | $880.6 | +6.1% |
Female | 236,020 | 231,890 | -1.7% | $939.6 | $1,008.2 | +7.3% |
24 years old and under | 30,250 | 30,010 | -0.8% | $99.5 | $104.8 | +5.3% |
25 to 34 years old | 90,000 | 91,570 | +1.7% | $356.4 | $379.2 | +6.4% |
35 to 44 years old | 85,520 | 86,210 | +0.8% | $368.8 | $396.3 | +7.5% |
45 to 54 years old | 94,980 | 90,670 | -4.5% | $426.4 | $436.2 | +2.3% |
55 go 64 years old | 98,340 | 99,220 | +0.9% | $426.4 | $463.1 | +8.6% |
65 years old and over | 21,750 | 23,460 | +7.9% | $109.2 | $92.1 | -15.7% |
Canada | 420,840 | 421,140 | +0.1% | $1,769.60 | $1,888.80 | +6.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI sickness benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
As in the past, a larger share of new EI sickness claims were established by women (55.1%) than men (44.9%). Men recorded an increase of 2.4% in the number of sickness claims, while women saw a decrease of 1.7%. The Evaluation of Employment Sickness Benefits report released on November 2020 found that gender (as well as educational attainment) had no statistically significant effect on the likelihood of whether someone claims or does not claim EI Sickness.Footnote 103
Claimants aged 55 to 64 years old established the largest shares of new sickness claims in FY1920 (23.6%). Similarly to FY1819, claimants 65 years old and over experienced the largest increase in claims (+7.9%), while only 45 to 54 years olds experienced a decrease in new claims (-4.5%). Relative to their representation in the labour force, people aged 24 years old and under were the most underrepresented, while those aged 55 to 64 were the most overrepresented age group (consult chart 33).Footnote 104 The Evaluation of Employment Insurance Sickness Benefitsalso reported that the older the individual, the more likely they are to claim EI Sickness (+3.4% more likely per additional decade of age).
Text description of Chart 33
Age category | Share of sickness claims established | Share of amount paid in sickness benefits | Share in the labour force |
---|---|---|---|
24 years old and under | 7.1% | 5.6% | 14.5% |
25 to 34 years old | 21.7% | 20.1% | 22.0% |
35 to 44 years old | 20.5% | 21.0% | 21.4% |
45 to 54 years old | 21.5% | 23.1% | 20.6% |
55 to 64 years old | 23.6% | 24.5% | 17.0% |
65 years old and over | 5.6% | 5.8% | 4.6% |
- Note: Includes claims for which at least $1 of EI sickness benefits was paid. Share in labour force averages exclude March.
- Sources: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data. Statistics Canada, Labour Force Survey, Table 14-10-0017-01.
The total amount paid in sickness benefits went up 6.7% to $1.9 billion during FY1920. The majority of provinces and territories recorded an increase in sickness benefits paid, with the exception of Prince Edward Island (consult table 45).
As with new claims, women received a slightly larger share of the amount paid in sickness benefits than men, with 53.4% and 46.6%, respectively. However, unlike last year, men experienced a smaller annual increase in the amount paid than women (+6.1% compared to +7.3%, respectively).
The results observed by age grouping follow a similar pattern to those observed for the number of claims. Claimants over the age of 45 received a larger share of the total amount of payments for sickness benefits than their share in the labour force, while claimants under the age of 44 received a smaller share (consult chart 33).
By industry, the goods-producing industries were overrepresented among EI sickness claims and total benefits paid, as they accounted for 27.9% of both new EI sickness claims and sickness benefits paid, while they represented only 20.8% of workers (consult table 46).
Industry | Number of claims (x1000) (% share) |
Amount paid ($ millions) (% share) |
Employment (x1000) (% share) |
---|---|---|---|
Goods-producing industries | 117.5 (27.9%) |
$527.9 (27.9%) |
3,976.5 (20.8%) |
Agriculture, forestry, fishing, hunting, mining and oil and gas extraction |
16.9 (4.0%) |
$82.9 (4.4%) |
619.9 (3.2%) |
Utilities | 0.7 (0.2%) |
$3.1 (0.2%) |
138.1 (0.7%) |
Construction | 45.6 (10.8%) |
$205.1 (10.9%) |
1,482.9 (7.7%) |
Manufacturing | 54.2 (12.9%) |
$236.8 (12.5%) |
1,735.6 (9.1%) |
Service-producing industries | 291.6 (69.2%) |
$1314.6 (69.6%) |
15,162.5 (79.2%) |
Wholesale and retail trade | 67 (15.9%) |
$275.5 (14.6%) |
2,855.7 (14.9%) |
Transportation and warehousing | 21.9 (5.2%) |
$114.3 (6.1%) |
1,039.2 (5.4%) |
Finance, insurance, real estate, rental and leasing | 12 (2.8%) |
$58.9 (3.1%) |
1,222.8 (6.4%) |
Professional, scientific, and technical services | 12.5 (3.0%) |
$58.3 (3.1%) |
1,564.4 (8.2%) |
Business, building, and other support services* | 27.5 (6.5%) |
$129 (6.8%) |
768.2 (4.0%) |
Educational services | 13 (3.1%) |
$55.3 (2.9%) |
1,373.8 (7.2%) |
Healthcare and social assistance | 52.7 (12.5%) |
$246.9 (13.1%) |
2,504.1 (13.1%) |
Information, culture, and recreation** | 8.6 (2.0%) |
$35.2 (1.9%) |
778.3 (4.1%) |
Accommodation and food services | 29.9 (7.1%) |
$113.3 (6.0%) |
1,222.45 (6.4%) |
Other services (excluding public administration) | 17.9 (4.3%) |
$77.7 (4.1%) |
815.2 (4.3%) |
Public administration | 28.5 (6.8%) |
$150.1 (7.9%) |
1,018.3 (5.3%) |
Unclassified*** | 12 (2.9%) |
$46.3 (2.5%) |
N/A |
Canada | 421.1 (100%) |
$1888.8 (100%) |
19,138.9 |
- Note: Data may not add up to the total due to rounding. Percentage shares are based on unrounded numbers. Includes claims for which at least $1 of EI sickness benefits was paid. Employment averages exclude March.
- * Includes management of companies and enterprises and administrative support, waste management and remediation services.
- ** Includes information and cultural industries and arts, entertainment and recreation services.
- *** For some claims, this information was not available in the data Sources: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data. Statistics Canada, Labour Force Survey, Table 14-10-0022-01 (for employment data).
The average weekly sickness benefit rate was $456 in FY1920, an increase of 4.0% from the previous fiscal year. As in FY1819, a little more than a third (37.6%) of all sickness claimants received the maximum weekly benefit rate. The increase in the portion receiving maximum weekly benefits is 1.7 percentage points from FY1819. On average, the highest weekly sickness benefit rate was paid for claims established in Nunavut ($536), by men ($492), and by claimants aged 35 to 39 years old ($472).
Duration of Employment Insurance sickness benefits
A maximum of 15 weeks of EI sickness benefits may be paid, though the number of weeks could be less depending on the claimant’s physician’s assessment.
The average duration of sickness benefits completed during FY1920 increased from FY1819 to 10.0 weeks. On average, men and women received 9.6 and 10.3 weeks of sickness benefits, respectively.
As in the past, the average number of weeks of sickness benefits paid increased with the age of claimants. Claimants aged 24 years old and under experienced, on average, the shortest duration (9.2 weeks), while those aged 55 years old and over registered the longest duration (10.5 weeks).
A little more than one-third (36.7%) of all completed sickness claims used the maximum number of 15 weeks of sickness benefits, which is similar to previous fiscal years. Women (38.5%) were more likely than men (34.4%) to use the maximum number of sickness weeks.
The use of all 15 weeks of benefits appears to be correlated with the age of claimants, with 29.2% of claimants 24 years old and under and 42.0% of claimants 55 years old and over using the maximum number of sickness weeks (consult table 47).
The evaluation report on EI sickness benefits concluded that “the duration of the benefits is adequate for most claimants, but those with severe and/or long-term illnesses are more likely to use the full 15 weeks of sickness benefits and remain sick hereafter”.Footnote 105
Age Category | FY1516 | FY1617 | FY1718 | FY1819r | FY1920p |
---|---|---|---|---|---|
24 years old and under | 27.0% | 28.2% | 26.6% | 25.8% | 29.2% |
25 to 44 years old | 32.8% | 32.2% | 31.7% | 31.6% | 32.8% |
45 to 54 years old | 47.5% | 38.9% | 38.2% | 37.0% | 39.6% |
55 years old and over | 41.9% | 42.7% | 40.5% | 39.7% | 42.0% |
Canada | 35.9% | 36.3% | 35.3% | 34.7% | 36.7% |
- Note: Includes all claims for which at least $1 in EI sickness benefits was paid. Completed claims include those that are terminated and those that are dormant and remained inactive as of August the following fiscal year.
- p Preliminary data
- r Revised data
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 10% sample of EI administrative data.
Employment Insurance sickness benefits and short-term disability plans (STDP) offered by employers
A departmental study* showed that the number of employers who offered qualifying STDPs (recognized by the Premium Reduction Program) decreased between 2000 and 2015, but this was offset by an increase in large employers (500 or more employees) offering STDPs. Despite the overall decrease in number of employers offering STDPs, the number of employees covered by those plans increased over the same period.
The study also compared the characteristics of EI sickness claims established by claimants who benefitted from a STDP offered by their employer before turning to EI sickness benefits with people who turned directly to EI sickness benefits. Claimants for whom the EI program was the second payer were proportionally more likely to use the maximum 15-week period provided for EI sickness benefits than those who received only EI sickness benefits (an average of 39.7% compared to 32.0%, respectively, for the period between 2000 and 2015). In 2015, 21.9% of all EI sickness claimants used EI as a second payer, while the remaining 78.1% of EI sickness claimants used EI as a first payer.
The majority of employers offered weekly indemnity plans, which provide benefits for a minimum of 15 weeks. Given that claimants who were covered by a plan offered by their employer had to use all of their short-term disability insurance benefits before establishing an EI sickness claim, it appears that those who used all 15 weeks of EI sickness benefits were more likely to have severe medical issues that require longer recovery time.
- * ESDC, Enhance Understanding of the Use of the Premium Reduction Program. (Ottawa: ESDC, Evaluation Directorate, 2019)
2.6.4 Employment Insurance compassionate care benefits
EI compassionate care benefits offer temporary income support for up to 26 weeks to eligible claimants who need to take time away from work to provide end-of-life care to family members who have a serious medical condition with a significant risk of death within 26 weeks.Footnote 106 The benefits may be paid to 1 caregiver or shared among caregivers, and only 1 of them needs to serve the waiting period. Claimants must submit a medical certificate issued by the family member’s medical doctor or nurse practitioner to Service Canada.Footnote 107
Employment Insurance compassionate care claims, amount paid and level of benefits
Over FY1920, there were almost 7,600 new claims established for compassionate care benefits, which represented a decrease of 9.6% over the previous fiscal year, marking 2 consecutive years of decreases in compassionate care benefit claims. Less than 1 in 10 claims established in FY1920 had weeks of benefits that were shared among 2 or more caregivers (7.2%). This proportion has remained stable from FY1819 (7.5%).
All regions, except Newfoundland and Labrador, experienced a decrease in the number of claims for compassionate care benefits over the reporting period (consult table 48). Both men and women experienced decreases in number of claims, although women experienced a larger decrease (-10.2%). Women still continue to establish the majority of compassionate care claims (70.5%) compared to men (29.5%).
Category | Number of claims FY1819 |
Number of claims FY1920 | Change (%) | Amount paid ($ millions) FY1819 |
Amount paid ($ millions) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 92 | 95 | 3.3% | $0.5 | $0.5 | -8.1% |
Prince Edward Island | 40 | 29 | -27.5% | $0.2 | $0.2 | -34.3% |
Nova Scotia | 281 | 273 | -2.8% | $1.4 | $1.3 | -4.1% |
New Brunswick | 193 | 173 | -10.4% | $1.1 | $1.0 | -12.5% |
Quebec | 1,497 | 1,305 | -12.8% | $6.5 | $5.5 | -14.2% |
Ontario | 3,574 | 3,223 | -9.8% | $20.0 | $17.2 | -14.1% |
Manitoba | 346 | 301 | -13.0% | $1.8 | $1.5 | -19.1% |
Saskatchewan | 219 | 175 | -20.1% | $1.4 | $1.0 | -28.3% |
Alberta | 866 | 776 | -10.4% | $5.7 | $4.8 | -15.2% |
British Columbia | 1,243 | 1,205 | -3.1% | $7.0 | $6.5 | -7.3% |
Territories | 34 | 26 | -23.5% | $0.2 | $0.1 | -36.1% |
Men | 2,436 | 2,239 | -8.1% | $15.0 | $13.0 | -13.0% |
Women | 5,949 | 5,342 | -10.2% | $30.9 | $26.6 | -14.0% |
24 years old and under | 116 | 136 | 17.2% | $0.5 | $0.6 | 22.4% |
25 to 44 years old | 2,723 | 2,446 | -10.2% | $14.4 | $12.3 | -14.6% |
45 to 54 years old | 2,681 | 2,409 | -10.1% | $15.1 | $12.6 | -16.6% |
55 years old and over | 2,865 | 2,590 | -9.6% | $15.9 | $14.1 | -11.1% |
Canada | 8,385 | 7,581 | -9.6% | $45.8 | $39.6 | -13.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI compassionate care benefits was paid.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative.
Individuals aged 24 years and under was the only age group to experience an increase (17.2%) in compassionate care claims; however, as in the past, established a significantly smaller share of compassionate care claims (1.8%) compared to their relative representation in the Canadian labour forceFootnote 108 (14.1%). Claimants between 25 and 44 years old also maintained a smaller share of compassionate care claims (32.3%) relative to their weight in the Canadian labour force (43.8%). Conversely, people aged between 45 and 54 years old and those aged 55 years old and over established a larger share of claims for compassionate care benefits (31.8% and 34.2%, respectively) than their presence in the Canadian labour force (20.9% and 21.7%, respectively).
The total amount paid in compassionate care benefits was at $39.6 million in FY1920, which represents a decrease of 13.7% compared to the previous year.
The amount paid in compassionate care benefits during FY1920 decreased in all provinces and the territories. Both men and women experienced a decrease in amounts received (consult table 48), although women still received over two-thirds (67.1%) of the total amount of compassionate care benefits paid.
Claimants aged between 25 and 44 years old received a smaller share of the amount paid in compassionate care benefits than their demographic weight in the Canadian labour force: 31.2% of all benefits paid versus 43.8% of the labour force. Conversely, claimants aged between 45 and 54 years old and those aged 55 years old and over received 31.7% and 35.6% of the total amount of payments for compassionate care benefits, while representing 20.4% and 21.7% of the labour force, respectively. Similar to claims established, all age groups reported decreases in the amounts received from the previous year except for claimants 24 years old and under who experienced a 22.4% increase in amounts received.
The average weekly benefit rate for compassionate care benefits increased by 2.8% to $482 during FY1920. A little less than half (48.0%) of claimants received the maximum weekly benefit rate. On average, the highest weekly benefit rate for compassionate care benefits was paid for claims established in the Territories ($525), by men ($512), and by claimants aged between 25 and 44 years old ($494).
Duration of Employment Insurance compassionate care benefits
The average duration of EI compassionate care claims completed in FY1920 was 11.0 weeks. While this is a slight decrease from the average recorded in FY1819 (11.4 weeks), it remains higher than the average duration in FY1516 and FY1617 (consult table 49). This change can be attributed, in particular, to the change in the maximum number of weeks of compassionate care benefits available since January 3, 2016.Footnote 109
Duration and share of claims | FY1516 | FY1617 | FY1718 | FY1819r | FY1920p |
---|---|---|---|---|---|
Average duration (weeks) | 4.6 | 9.8 | 12.0 | 11.4 | 11.0 |
6 weeks of benefits or more | 54.8% | 64.5% | 64.9% | 62.0% | 61.0% |
26 weeks of benefits | n/a | 13.8% | 20.3% | 17.2% | 16.4% |
- Note: Includes completed claims for which at least $1 of EI compassionate care benefits was paid.
- P Preliminary data.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
Men and women received, on average, a similar number of weeks of compassionate care benefits for claims completed during FY1920 (11.3 and 10.9 weeks, respectively). Over the same period, claimants aged 44 years old and under received, on average, 10.5 weeks of compassionate care benefits, while claimants aged 55 years old and over received an average of 11.8 weeks (consult annex 2.18.2).
Among compassionate care claims completed in FY1920, 61.0% used 6 weeks of benefits or more. This proportion, which is similar to that recorded over the previous fiscal year (consult table 49), appears to show that despite an increase in the maximum number of weeks of compassionate care benefits available since January 3, 2016, a large share of claims did not receive any extra available weeks, which may be in part due to the death of a care recipient. In total, 16.4% of completed compassionate care claims received the maximum number of 26 weeks of benefits during FY1920, a decrease compared to FY1819 (17.2%).
A departmental studyFootnote 110 updating research results on the use and duration of compassionate care benefits confirmed that claimants who took care of their spouse or lived with the care recipient are most likely to use the entire benefit entitlement. However, one of the main reasons for not receiving or claiming the maximum number of weeks of benefits is related to the death of a care recipient, which would cause benefits to end in the week of the death.
Similar proportions of men and women used 6 weeks or more of compassionate care benefits, as well as those who used all 26 weeks of benefits, among the claims completed during the reporting fiscal year. Claimants aged 55 years old and over were slightly more likely to receive 6 weeks or more of compassionate care benefits (64.7%) than claimants aged 24 years old and under (62.3%) and 25 to 44 year olds (58.7%). However, 55 year olds and over were less likely to use the total 26 weeks of compassionate care benefits than claimants aged 24 years old and under (18.0% and 23.7%, respectively).
2.6.5 Employment Insurance family caregiver benefit for adults
The EI family caregiver benefits for adults came into effect on December 3, 2017. They are offered to any EI eligible person who need to take temporary leave from work to provide care or support to a person aged 18 or older who is suffering from a critical illness or injury and whose life is at risk. Family caregivers can obtain up to 15 weeks of benefits, which may be shared among eligible family members or other eligible people who are considered members of the family. Claimants must provide Service Canada with a medical certificate issued by the medical doctor or nurse practitioner of the family member who is critically ill or injured.
Employment Insurance claims for family caregiver benefits for adults, amount paid and level of benefits
In FY1920, about 11,600 claims were established for family caregiver benefits for adults, which represents an increase of 2.0% from the previous fiscal year. Women established over two-thirds of these claims (67.9%) (consult table 50). People aged 45 years old and over accounted for 68.5% of all claims.
During FY1920, the amount paid out in family caregiver benefits for adults increased by 13.4% compared to FY1819, to reach $55.7 million. Similar to the number of claims established, women and claimants aged 45 years old and over received a larger share of benefits paid out compared to men and younger claimants, respectively.
Category | Number of claims FY1819r |
Number of claims FY1920 |
Change (%) | Amount paid ($ thousands) FY1819r |
Amount paid ($ thousands) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 216 | 184 | -14.8% | $991.6 | $783.7 | -21.0% |
Prince Edward Island | 77 | 87 | +13.0% | $333.9 | $421.7 | +26.3% |
Nova Scotia | 330 | 322 | -2.4% | $1,350.8 | $1,588.1 | +17.6% |
New Brunswick | 303 | 282 | -6.9% | $1,229.4 | $1,310.7 | +6.6% |
Quebec | 2,031 | 1,934 | -4.8% | $8,302.1 | $8,801.9 | +6.0% |
Ontario | 5,168 | 5,419 | +4.9% | $22,753.2 | $25,654.8 | +12.8% |
Manitoba | 370 | 407 | +10.0% | $1,511.9 | $1,979.0 | +30.9% |
Saskatchewan | 254 | 304 | +19.7% | $1,177.9 | $1,586.7 | +34.7% |
Alberta | 1,062 | 1,031 | -2.9% | $4,820.0 | $5,599.0 | +16.2% |
British Columbia | 1,399 | 1,575 | +12.6% | $6,122.6 | $7,647.9 | +24.9% |
Territories | 31 | 47 | +51.6% | $163.2 | $295.8 | +81.2% |
Unknown* | 124 | n/a | n/a | $325.1 | n/a | n/a |
Men | 3,593 | 3,725 | +3.7% | $16,344.9 | $19,098.4 | +16.8% |
Women | 7,772 | 7,867 | +1.2% | $32,737.1 | $36,570.9 | +11.7% |
24 years old and under | 180 | 229 | +27.2% | $647.1 | $740.2 | +14.4% |
25 to 34 years old | 1,180 | 1,292 | +9.5% | $5,013.7 | $5,831.3 | +16.3% |
35 to 44 years old | 2,106 | 2,128 | +1.0% | $8,939.4 | $10,236.5 | +14.5% |
45 to 54 years old | 3,584 | 3,521 | -1.8% | $15,901.3 | $17,264.8 | +8.6% |
55 to 64 years old | 3,636 | 3,682 | +1.3% | $15,775.8 | $18,022.9 | +14.2% |
65 years old and over | 679 | 740 | +9.0% | $2,804.7 | $3,573.7 | +27.4% |
Canada | 11,365 | 11,592 | +2.0% | $49,082.0 | $55,669.3 | +13.4% |
- Note: Data may not add up to total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI family caregiver benefit for adults was paid.
- * For some claims, this information was not available in the data. For confidentiality purposes, in FY1920, claims for which the region was unknown have been combined with Ontario.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
The average weekly benefit rate for family caregiver benefits for adults was $449 in FY1920, an increase of 3.0% compared to FY1819. On average, the highest weekly benefit rate was paid for claims established by men ($488), those living in the Territories ($531) and by claimants aged 25 to 34 years old and those aged 35 to 44 years old ($466 and $467, respectively).
Duration of Employment Insurance family caregiver benefits for adults
Under the family caregiver benefits for adults, claimants are provided with up to 15 weeks of benefits that can be shared among eligible caregivers and split into segments over the 52-week benefit period.
The average duration of completed claims for EI family caregiver benefits for adults in FY1920 was 10.6 weeks. This was virtually unchanged compared to FY1819 (10.7 weeks). Men and women received 10.4 and 10.7 weeks of family caregiver benefits for adults on average in FY1920, respectively. The average number of weeks was higher for claimants 65 years old and over (11.9 weeks) and for claimants 55 to 64 years old (11.1 weeks).
2.6.6 Employment Insurance family caregiver benefit for children
The EI family caregiver benefits for childrenFootnote 111 offers temporary income support for a maximum period of 35 weeks to eligible persons who take leave from work to provide care for or support to a critically ill or injured child under 18. Caregivers can include, in addition to the child’s parents, any qualifying members of the immediate and extended family. Benefits can be shared among caregivers, who may receive them simultaneously or separately, up to the maximum number of weeks of eligibility.
Claimants need to provide Service Canada with a medical certificate signed by the medical doctor or nurse practitioner of the critically ill or injured child.Footnote 112 To be considered critically ill, a child’s life must be at risk as a result of illness or injury, there must have been a significant change in the child’s baseline state of health and the child must require the care or support of his/her parent(s) or other qualifying family members.
Employment Insurance claims for family caregiver benefits for children, amount paid and level of benefits
The number of claims established for family caregiver benefits for children decreased by 5.6% compared to FY1819, to 5,400 claims in FY1920. Almost all regions experienced a decrease in their number of claims established over the reporting period (consult table 51).
Category | Number of claims FY1819r |
Number of claims FY1920 |
Change (%) | Amount paid ($ thousands) FY1819r |
Amount paid ($ thousands) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Newfoundland and Labrador | 63 | 72 | +14.3% | $550.9 | $554.1 | +0.6% |
Prince Edward Island | 33 | 25 | -24.2% | $190.6 | $115.0 | -39.7% |
Nova Scotia | 103 | 140 | +35.9% | $741.4 | $990.4 | +33.6% |
New Brunswick | 107 | 104 | -2.8% | $648.8 | $708.3 | +9.2% |
Quebec | 1,124 | 1,054 | -6.2% | $6,510.0 | $6,724.9 | +3.3% |
Ontario | 2,164 | 2,056 | -5.0% | $14,893.3 | $14,104.3 | -5.3% |
Manitoba | 212 | 195 | -8.0% | $1,306.3 | $1,393.5 | +6.7% |
Saskatchewan | 233 | 180 | -22.7% | $1,719.2 | $1,031.4 | -40.0% |
Alberta | 888 | 798 | -10.1% | $5,766.2 | $5,715.7 | -0.9% |
British Columbia | 737 | 759 | +3.0% | $4,327.6 | $4,820.7 | +11.4% |
Territories | 20 | 20 | 0.0% | $157.3 | $120.8 | -23.2% |
Unknown* | 38 | n/a | n/a | $96.9 | n/a | n/a |
Men | 1,224 | 1,201 | -1.9% | $8,124.1 | $8,036.3 | -1.1% |
Women | 4,498 | 4,202 | -6.6% | $28,784.2 | $28,242.7 | -1.9% |
24 years old and under | 253 | 226 | -10.7% | $1,242.9 | $1,168.8 | -6.0% |
25 to 44 years old | 4,886 | 4,546 | -7.0% | $30,968.7 | $30,061.8 | -2.9% |
45 to 54 years old | 505 | 551 | +9.1% | $4,032.3 | $4,395.3 | +9.0% |
55 years old and over | 78 | 80 | +2.6% | $664.5 | $653.2 | -1.7% |
Canada | 5,722 | 5,403 | -5.6% | $36,908.3 | $36,279.1 | -1.7% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes claims for which at least $1 of EI family caregiver benefit for children was paid.
- * For some claims, this information was not available in the data. For confidentiality purposes, in FY1920, claims for which the region was unknown have been combined with Ontario.
- r Revised data.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data are based on a 100% sample of EI administrative data.
More claims for family caregiver benefits for children were established by women (77.8%) rather than men (22.2%). However, men and women both recorded an annual decrease in the number of new claims.
By age, claimants aged 25 to 44 years old established the largest share of new claims for family caregiver benefits for children (84.1%), while those aged 24 years old and under and those aged 45 years old and over represented 4.2% and 11.7%, respectively. Claimants aged 45 years old and over registered an increase in the number of claims compared to FY1819.
The amount paid in family caregiver benefits for children reached $36.3 million during FY1920, representing a decrease of 1.7% from the previous fiscal year. As with established claims, women received most of the benefits paid (77.8%), while by age, claimants aged between 25 and 44 received the majority of benefits paid for this benefit type (82.9%).
The average weekly benefit rate paid to family caregivers for children was $462 for FY1920, which represents a growth of 1.5% from the previous fiscal year. On average, the highest weekly benefit rate was paid for claims established by men ($500), in the Territories ($499) and for claimants aged between 25 to 44 years old ($467).
Duration of Employment Insurance family caregiver benefits for children
Under the family caregiver benefits for children, claimants are provided with up to 35 weeks of benefits that can be shared among eligible caregivers and can be taken in separate periods over the 52-week benefit period.
Individuals receiving family caregiver benefits for children used, on average, 15.4 weeks of benefits over the reporting period, a decrease of 1.6 weeks compared to FY1819. On average, women received more weeks of benefits than men, with 15.9 weeks and 14.0 weeks respectively. The average number of weeks used was higher for claimants aged 55 years old or over (21.8 weeks) and for those aged 45 to 54 years old (18.2 weeks).
2.6.7 Employment Insurance special benefits for self-employed persons
Self-employed persons may make a claim for EI special benefits after signing up for the EI program. The special benefits available to self-employed persons are the same as those offered to salaried employees.
To be eligible for EI special benefits for self-employed persons, an individual must:
- register with Service Canada
- pay EI premiums at the same rate as salaried employees for at least 1 year before they may claim benefits
- wait for 12 months from the date of their confirmed registration before claiming EI special benefits
- have earned the minimum amount of self-employed earnings during the calendar year preceding the year they apply for benefitsFootnote 113
- have reduced the amount of time devoted to their business by more than 40%, and
- meet the eligibility criteria specific to the special benefits being claimedFootnote 114
During FY1920, there were almost 6,600 additional self-employed persons who entered into a voluntary agreement with Service Canada. The total number of participating self-employed persons increased to almost 29,900 participants. This represents a growth of 28.2% from FY1819 (consult table 52).
Number of persons | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|
Net Enrolments | 1,704 | 1,820 | 1,874 | 2,046 | 6,572 |
New Participants to the Program (Opted In) | 2,338 | 2,547 | 2,475 | 2,627 | 7,775 |
Registrants Who Cancelled or Terminated Participation (Opted Out) | -634 | -727 | -601 | -581 | -1,203 |
Cumulative Total, at the End of the Fiscal Year | 17,546 | 19,366 | 21,240 | 23,286 | 29,858 |
- Source: ESDC, Service Canada administrative data, 100% sample
A studyFootnote 115 by Employment and Social Development Canada compared self-employed persons who do not participate in the EI program to participants. The study revealed that, on average, at the time of registration, participants were younger and mostly women, reported lower net incomes from self-employment and more declared income from paid employment, which may indicate that they were in transition to self-employment. However, when a claim is established, only 3 out of 10 self-employed persons reported any income from paid employment in the year before their claim. According to the same study, self-employed claimants started receiving benefits, on average, about 1.5 years (82 weeks) after registration.
As soon as a self-employed person receives EI benefits, they would have to pay premiums on their self-employment earnings for the rest of their self-employment career. Those who also have paid employment earnings have the choice to apply for EI special benefits as self-employed persons or as insured claimants (if they have paid EI premiums through their paid employment). If they claim benefits under the former, their benefits would be calculated on the basis of both self-employment and paid employment income, whereas for the latter, only earnings from paid employment would be taken into account.
Employment Insurance special benefits for self-employed persons, claims, amount paid and level of benefits
A total of 834 special benefit claims were established by self-employed persons in FY1920, representing an increase of 14.6% from the previous fiscal year. The benefit types most frequently received by self-employed EI claimants were maternity benefits and parental benefits (consult table 53).
Category | Number of claims FY1819 |
Number of claims FY1920 | Change (%) | Amount paid ($ thousands) FY1819 |
Amount paid ($ thousands) FY1920 |
Change (%) |
---|---|---|---|---|---|---|
Maternity | 543 | 619 | 14.0% | $2,576.8 | $3,240.6 | 25.8% |
Parental | 615 | 667 | 8.5% | $6,412.4 | $7,048.4 | 9.9% |
Other special benefits | 158 | 198 | 25.3% | $391.1 | $551.5 | 41.0% |
Atlantic | 52 | 44 | -15.4% | $651.8 | $519.9 | -20.2% |
Quebec | 19 | 32 | 68.4% | $40.2 | $84.9 | 111.3% |
Ontario | 310 | 341 | 10.0% | $4,116.8 | $4,794.7 | 16.5% |
Prairies | 179 | 208 | 16.2% | $2,137.8 | $2,626.3 | 22.9% |
British Columbia and the Territories | 168 | 209 | 24.4% | $2,433.7 | $2,814.6 | 15.6% |
Men | 37 | 38 | 2.7% | $152.4 | $169.8 | 11.4% |
Women | 691 | 796 | 15.2% | $9,227.9 | $10,670.7 | 15.6% |
29 years old and under | 118 | 136 | 15.3% | $1,581.1 | $1,912.5 | 21.0% |
30 to 39 years old | 532 | 589 | 10.7% | $7,244.8 | $8,329.1 | 15.0% |
40 to 54 years old | 56 | 77 | 37.5% | $477.4 | $501.5 | 5.0% |
55 years old and over | 22 | 32 | 45.5% | $77.0 | $97.4 | 26.4% |
Canada | 728 | 834 | 14.6% | $9,380.3 | $10,840.5 | 15.6% |
- Note: Data may not add up to the total due to rounding. Percentage change is based on unrounded numbers. Includes all claims to self-employed persons for which at least $1 in EI special benefits was paid. New claims established by benefit type may not sum as claimants can receive multiple benefit types on a single claim.
- Source: Employment and Social Development Canada, Employment Insurance (EI) administrative data. Data on claims and amounts paid are based on a 100% sample of EI administrative data.
Ontario is the region that established the largest number of claims in FY1920 and recorded an increase in claims, along with Quebec and British Columbia and the Territories. Quebec’s under-representation in terms of new claims established (3.8% of all self-employed benefits) reflects the fact that the province offers maternity, parental, adoption and paternity benefits under the Quebec Parental Insurance Plan with mandatory participation of self-employed persons (consult subsection 2.6.2).
As in the past, women made up the vast majority (95.4%) of new claims established for self-employed persons. By age, claimants between 30 and 39 years old accounted for the largest share of new claims (70.6%) and saw the lowest increase from FY1819 of all age groups. Claimants aged 55 years old and over had the smallest share new claims but saw the largest increase in claims (45.5%).
The total amount paid in EI special benefits to self-employed persons was at $10.8 million for the reporting period, a 15.6% increase from FY1819. The Atlantic region was the only one to experience a decrease in payments (-20.2%) while Quebec more than doubled in special benefits paid (111.3%) from the previous period.
As observed with claims, women received the largest share of the total special benefits paid to self-employed persons. Both men and women saw an increase in special benefits paid.
Persons aged 55 years old and over recorded the largest increase in special benefits paid from FY1819, as they did in claims (26.4%). All age groups saw an increase in payments.
The average weekly benefit rateFootnote 116 for special benefits paid to self-employed persons increased by 4.5% to $365 per claim, marking 7 consecutive years of growth. On average, the highest weekly benefit rate was for claims established in British Columbia and the Territories ($412), by women ($368), and by claimants aged between 30 to 39 years old ($377).
2.7 Employment Insurance financial information
In this section
- 2.7.1 Employment Insurance premium rate
- 2.7.2 Premium Refund Provision
- 2.7.3 Premium Reduction Program
- 2.7.4 Recent trends in revenues and expenditures
The EI program is financed through mandatory premium contributions made by both employers and employees across Canada. These contributions are based on the employees’ insurable earnings up to the annual Maximum Insurable Earnings (MIE).Footnote 117 Since January 2010, self-employed persons that have opted into the EI program are also required to pay EI premiums in order to be eligible for EI special benefits.
EI premiums and all other revenues related to the EI program under the authority of the Employment Insurance Act are first deposited into the Consolidated Revenue Fund (CRF)Footnote 118 and then credited to the EI Operating Account (Account). All EI benefits paid and administrative costs provided for under the Employment Insurance Act are paid out of the CRF and debited from the Account.
The following section provides information on EI premium rates and recent trends in revenues and expenditures recorded for the Account.
2.7.1 Employment Insurance premium rate
After recording successive deficits in the early 2010s, the EI Operating Account returned to cumulative balance in FY1415 (consult chart 35 in subsection 2.7.4). To ensure affordability, predictability and stability of EI premium rates, the Government froze the 2014 rate at the 2013 level of $1.88 for every $100 of insurable earnings, and legislated the 2015 and 2016 rates at that amount.
Beginning with the 2017 EI premium rate, the Canada Employment Insurance Commission (CEIC) assumed the responsibility for setting the EI premium rate each year, according to a 7-year break-even mechanism (under which the projected balance for the Account is expected to be $0 in 7 years), as forecasted by the EI Senior Actuary. Premium rates are therefore expected to generate sufficient premium revenue to cover expected EI expenditures over the following 7 years and eliminate an existing cumulative surplus or deficit in the Account. Annual changes to the EI premium rate are legislatively limited to increases or decreases of no more than 5 cents each year.Footnote 119 Chart 34 shows the EI premium rates for employees and employersFootnote 120 in Quebec and the rest of Canada over the last 11 years.
Text description of Chart 34
Category | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|---|---|---|---|---|---|
Employee contributions - Canada except Quebec | 1.73 | 1.78 | 1.83 | 1.88 | 1.88 | 1.88 | 1.88 | 1.63 | 1.66 | 1.62 | 1.58 |
Employer contributions - Canada except Quebec | 2.42 | 2.49 | 2.56 | 2.63 | 2.63 | 2.63 | 2.63 | 2.28 | 2.32 | 2.27 | 2.21 |
Employee contributions - Quebec | 1.36 | 1.41 | 1.47 | 1.52 | 1.53 | 1.54 | 1.52 | 1.27 | 1.30 | 1.25 | 1.2 |
Employer contributions - Quebec | 1.9 | 1.97 | 2.06 | 2.13 | 2.14 | 2.16 | 2.13 | 1.78 | 1.82 | 1.75 | 1.68 |
- Source: Government of Canada, Public Accounts of Canada 2020, Volume I: Summary Report and Consolidated Financial Statements (Ottawa: Receiver General for Canada, 2020) and past year versions of the Public Accounts report.
The Senior Actuary’s forecasted EI premiums are calculated based on the forecasted insurable earnings on which premiums are paid. EI premiums are paid by employers, employees and self-employed persons who have opted into the EI program, for every $100 of insurable earnings up to the annual MIE threshold. In 2020, the MIE was $54,200, increasing by $1,100 (+2.1%) from the previous year’s MIE of $53,100.
In 2020, the EI premium rate for employees (who were not covered by a provincial parental insurance plan) was set by the CEIC at $1.58 per $100 of insurable earnings, down 4 cents from the previous year. As a result, the maximum annual EI premiums paid by employees was $856.36 in 2020. Employers, on the other hand, pay EI premiums that are 1.4 times the employee rate (such that employers contribute approximately 58% of the total EI premium revenues versus approximately 42% contributed by the employees). This means that employers paid $2.21 ($2.212 unrounded) for every $100 of insurable earnings of their employees in 2020, up to a maximum of $1,198.90. Self-employed persons who opted into the program pay the same EI premium rate as employees, and also pay premiums up to the annual MIE.Footnote 121
The EI program grants a reduction in the EI premium rate paid on insurable earnings to employees who are covered by a provincial parental insurance plan. Quebec is the only province in Canada that administers its own parental insurance plan, known as the Quebec Parental Insurance Plan (QPIP), which provides paid parental, adoption, maternity and paternity benefits to eligible claimants and is financed by contributions made by workers and employers in Quebec. These benefits replace maternity and parental benefits provided by the EI program and, as such, EI premiums in Quebec are lower to reflect the savings that are generated for the EI program as a result of the existence of QPIP. In 2020, the EI premium rate for employees in Quebec was set at $1.20 per $100 of insurable earnings, while for employers it was $1.68 per $100 of insurable earnings of their employees (consult table 54).
Category | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|
Employees - Premium rates for residents of a province without a provincial parental insurance plan | $1.63 | $1.66 | $1.62 | $1.58 |
Employers - Premium rates for residents of a province without a provincial parental insurance plan | $2.282 | $2.324 | $2.268 | $2.212 |
Premium rates for residents of a province with a provincial parental insurance plan (Quebec) - Employees | $1.27 | $1.30 | $1.25 | $1.20 |
Premium rates for residents of a province with a provincial parental insurance plan (Quebec) - Employers | $1.778 | $1.82 | $1.75 | $1.68 |
Maximum insurable earnings - Employees | $51,300 | $51,700 | $53,100 | $54,200 |
Annual maximum contribution - Employees | $836.19 | $858.22 | $860.22 | $856.36 |
Annual maximum contribution - Employers | $1,170,67 | $1,201.51 | $1,204.31 | $1,198.90 |
- * Per $100 of insurable earnings.
- Source: Government of Canada, Public Accounts of Canada 2020, Volume I: Summary Report and Consolidated Financial Statements (Ottawa: Receiver General for Canada, 2020) and past year versions of the Public Accounts report.
Example: Employment Insurance premium contributions
Emily is an employee working at a call centre in Fredericton, New Brunswick, and earns $35,000 per year.
Based on Emily’s income level and assuming she remained employed throughout the year; her annual contribution to the EI program in 2020 would be $553 at the premium rate of $1.58 for every $100 of insurable earnings. Her employer would contribute $774.20 in EI premiums on her earnings, for a combined total of $1,327.20 in contributions made to the EI Operating Account in 2020.
However, if Emily was working and living in Quebec, her annual EI contribution in 2020 would be reduced to $420, and her employer would have contributed $588 in EI premiums on her earnings, for a combined total of $1,008 in contributions made to the EI Operating Account. At the premium rate of $0.494 for every $100 of insurable earnings in 2020, Emily’s contribution to the Quebec Parental Insurance Plan (QPIP) would be $172.90, while her employer’s contribution would be $242.20. Note that QPIP premiums are set by the Quebec Parental Insurance Plan’s Conseil de gestion and not by the CEIC.
2.7.2 Premium Refund Provision
Under certain circumstances a share or all of EI premiums paid can be refunded to contributors if certain conditions are met.
The EI program includes a provision that grants EI premium refunds to employees with insurable earnings equal to or less than $2,000 in a given calendar year, as they are unlikely to qualify for EI benefits. In addition to this, some employees may pay EI premiums on earnings that exceed the MIE and the maximum annual contribution in a given tax year, such as those with multiple jobs or those who change jobs during the year. Under these circumstances, affected employees are entitled to receive a refund of all or a portion of their EI premiums paid in the year when filing their income tax returns. It is important to note that employers do not receive a corresponding refund.
According to Canada Revenue Agency (CRA) data on T4 slipsFootnote 122 from employers, there were 849,300 individuals in 2018 (the most recent taxation year for which data is available) that were eligible to receive full EI premium refund under the Premium Refund Provision, representing 4.6% of those with insurable earnings. Of these individuals who were eligible to receive full refund paid on EI premiums, 74.2% had filed income taxes and 66.4% received a full premium refund based on CRA T1 tax filer data. A total of $8.6 million in premiums were refunded to the eligible individuals in 2018, while on average each person received a refund amount of $15.20.
2.7.3 Premium Reduction Program
The Premium Reduction Program (PRP) was introduced in 1971 to encourage employers to provide short-term income protection coverage plans to their employees. The PRP recognized employer-based plans that already existed and encouraged employers to continue to offer them as the EI sickness benefits became available.
Under the Employment Insurance Act, employers who provide qualified wage-loss plans, also known as short-term disability plans, to their employees that are at least equivalent to the protection provided by EI sickness benefits may be eligible to receive a reduction in the EI premiums payable through the PRP. The PRP puts less strain on the EI program as employees who are covered by such short-term disability plans may not have to collect EI benefits, or may collect them for a shorter period of time, as benefits from the registered plans have to be paid before EI benefits are paid.
There are 2 types of wage-loss replacement plans for which EI premium reductions may be granted: cumulative paid sick leave plans and weekly indemnity programs. These plans must also meet certain requirements established by the CEIC.Footnote 123 The premium reduction reflects the average savings generated to the EI Account due to the existence of these plans, and is provided directly to employers. As EI premiums are paid by both employers and employees in a proportion of 7/12 and 5/12, respectively, employers are required to ensure that their employees benefit from the reduction of the employers’ premium in an amount at least equal to 5/12 of the reduction.
In each calendar year, the rates of premium reduction are established based on 4 categories of qualified plans, with a distinct rate for each category, as explained below:
- category 1: cumulative paid sick leave plans that allow for a minimum monthly accumulation of 1 day and for a total accumulation of at least 75 days
- category 2: cumulative paid sick leave plans that allow for a minimum monthly accumulation of 1 day and two-thirds and for a total accumulation of at least 125 days
- category 3: weekly indemnity plans with a benefit period of at least 15 weeks
- category 4: weekly indemnity plans with a benefit period of at least 52 weeks (this reduction is available only to public and para-public employers of a province)
Rates of premium reduction are expressed as a percentage of the insurable earnings of employees. In 2020, the rates of reduction were 0.22%, 0.37%, 0.36% and 0.40% of insurable earnings for categories 1 through 4, respectively.Footnote 124 An estimated $953.2 million in premium reductions were generated by the wage-loss plans in 2018 (the most recent taxation year for which data is available), compared to $922.2 million in 2017 and $871.2 million in 2016.Footnote 125
Based on the latest departmental studyFootnote 126 on the PRP, there were approximately 27,220 employers receiving EI premium reductions through the PRP in 2015. About 7.8 million of workers were employed in those firms receiving a premium reduction in 2015. The departmental study also shows that, during the period of 2000 to 2015, approximately 89.0% of all employers in the program offered a category 3 plan with weekly indemnity to their employees. Another 7.0% of employers offered category 1 with cumulative paid sick leave plans, followed by 1.5% offering the combination of 2 or more types of short-term disability plan. The last 2.5% is shared between employers offering category 2 or category 4 plans. These breakdowns have remained stable during the 15 years examined.
2.7.4 Recent trends in revenues and expenditures
As required by Section 64 of the Financial Administration Act, the Receiver General prepares the Public Accounts of Canada annually to report on the financial transactions of the Government for the fiscal year. According to the Public Accounts of Canada, EI revenue was $22.7 billion in FY1920, a decrease of 0.3% from the previous year. This reduction is due to the decline in the 2020 premium rate.
EI expenses increased by 14.0% over the same period, from $20.8 billion in FY1819 to $23.7 billion in FY1920. The increase is due, in part, to the increase in benefits paid under EI Part I (+$0.9 billion compared to FY1819). It is also due to the EI Emergency Response Benefit ($1.8 billion in FY1920) which provided financial support to employees and self-employed workers who were directly affected by the COVID-19 pandemic. This generated a net deficit of $ 1.0 billion in the EI Operating Account at the end of FY1920 (consult table 55). The Government has announced that it will credit the Account for costs associated with the EI Emergency Response Benefit, which is expected to generate a surplus for FY1920 rather than a deficit. The Public Accounts of Canada 2021 will include the revised financial statements to reflect this. Consult annex 5 for a detailed breakdown of the Account.
Operating Account | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|
Revenues* | $23,014.8 | $23,586.1 | $22,603.3 | $21,614.0 | $22,781.6 | $22,713.7 |
Expenditures** | $19,759.3 | $21,192.9 | $22,518.9 | $21,662.0 | $20,817.4 | $23,724.8 |
Employment Insurance benefits (Part I) | 82.2% | 83.2% | 83.5% | 82.4% | 81.0% | 74.8% |
Employment benefits and support measures (Part II) | 10.4% | 9.7% | 9.7% | 10.0% | 11.1% | 10.4% |
Benefit repayments | -1.2% | -1.2% | -1.2% | -1.4% | -1.4% | -1.0% |
Employment Insurance Emergency Response Benefit*** | n/a | n/a | n/a | n/a | n/a | 7.4% |
Administration costs | 8.4% | 7.8% | 7.9% | 8.7% | 8.8% | 8.0% |
Bad debts | 0.3% | 0.6% | 0.1% | 0.3% | 0.5% | 0.3% |
Annual surplus (deficit) | $3,255.4 | $2,393.2 | $84.4 | ($48.0) | $1,964.3 | ($1,011.1)† |
- Note: Data may not add up to the total due to rounding.
- * Includes all revenues and funding from EI premiums, interest owed on accounts receivable, penalties applied to claimants for violations of terms and conditions of the EI program and additional funding measures introduced for Employment Insurance under federal budgets.
- ** Includes all expenses related to funding and operations of the EI program, including benefit payments under Part I of the EI program, Employment Benefit and Support Measure (EBSM) expenditures under Part II of the EI program, EI benefit repayments, administrative costs and outstanding debts counted as liabilities against the EI Operating Account.
- ** The Employment Insurance Emergency Response Benefit is the portion of the Canada Emergency Response Benefit that was administered by Employment and Social Development Canada. Expenses related to the EI Emergency Response Benefit were paid from the EI Operating Account and those incurred before March 31, 2020 are included in this financial statement.
- † On September 14, 2020, the Government announced that it will credit the Account for costs associated with the EI Emergency Response Benefit. This is expected to generate a surplus in the Account for FY1920 rather than a deficit. Source: Government of Canada, Public Accounts of Canada 2020, Volume I: Summary Report and Consolidated Financial Statements (Ottawa: Receiver General for Canada, 2020) and past year versions of the Public Accounts report.
Chart 35 shows the financial position of the EI Operating Account at the end of the fiscal year for the past 11 years. On March 31, 2020, the accumulated surplus in the EI Operating Account was $3.90 billion, a decrease of 20.6% from the previous year. This decline in the accumulated surplus is mainly attributable to the EI Emergency Response Benefit ($1.8 billion in FY1920) which increased spending for the reporting fiscal year. As previously mentioned, the Government has announced that it will credit the Account for the costs associated with the EI Emergency Response Benefit.
Text description of Chart 35
Year | FY0910 | FY1011 | FY1112 | FY1213 | FY1314 | FY1415 | FY1516 | FY1617 | FY1718 | FY1819 | FY1920 |
---|---|---|---|---|---|---|---|---|---|---|---|
Accumulated surplus/deficit at the end of the fiscal year ($ billion) | -$4.94 | -$7.40 | -$7.95 | -$5.96 | -$2.73 | $0.52 | $2.91 | $3.00 | $2.95 | $4.92 | $3.90 |
- Source: Government of Canada, Public Accounts of Canada 2020, Volume I: Summary Report and Consolidated Financial Statements (Ottawa: Receiver General for Canada, 2020) and past year versions of the Public Accounts report.
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