Introduction

On this page

• List of abbreviations
• The Employment Insurance program
• The Canada Employment Insurance Commission
• The report

As per Section 3 of the Employment Insurance Act, the Canada Employment Insurance Commission is pleased to present this report to Parliament. Its objective is to monitor and assess the impact and effectiveness of benefits and other assistance offered under the Employment Insurance (EI) program. This report is produced with the intention of providing a clear understanding of the impact of EI on the Canadian economy and the way it works to address the needs of Canadians.

The Employment Insurance program

The Employment Insurance (EI) program provides temporary income support to replace part of a person's employment income. It is available for people who are eligible, unemployed, and contributed to the program. The support is available while they search for work, engage in training to improve their skills (if referred to training by a designated authority under Section 25 of the Employment Insurance Act) or are absent from work due to specific life circumstances.^{Footnote 1}

EI Part I provides direct temporary income support through EI regular benefits, fishing benefits, Work‑Sharing benefits and special benefits.^{Footnote 2} EI Part II provides Employment Benefits and Support Measure services (EBSMs). This includes the services offered under the Labour Market Development Agreements (LMDAs) and the Indigenous Skills and Employment Training program (ISET).

Through the income benefits funded through EI Part I and the EBSMs funded through EI Part II, workers across Canada are offered support for optimal employment transitions.

EI regular benefits provide temporary income support to partially replace lost employment income for eligible claimants, helping them find a new job and stay active in the labour market. To qualify, individuals must have worked a minimum number of hours of insurable employment, paid EI premiums, and had a valid job separation. Individuals must also be available for and actively seeking work during their claim period.

EI fishing benefits are provided to qualifying self‑employed fishers who are actively seeking work. Unlike EI regular benefits, eligibility is based on earnings from fishing rather than hours of insurable employment.

Work-Sharing is an employee-retention program designed to help employers and employees avoid layoffs during temporary reductions in normal business activity beyond the control of an employer. EI‑eligible workers in a given work unit agree to reduce their workweek and share working hours equally while the employer recovers. In return, these workers receive EI Work-Sharing benefits to partially compensate for their reduced working hours.

EI special benefits provide support to employees and self‑employed persons in specific circumstances, such as being sick, being pregnant, having recently given birth, caring for a newborn or a newly adopted child, or caring for a family member who is critically ill, injured or requires end‑of‑life care.

Employment Benefits and Support Measure (EBSM) services are delivered under EI Part II and help Canadians prepare for, find, and maintain employment. Through the LMDAs, provinces and territories create and administer the programs that deliver these services. The Government of Canada also designs and delivers its own pan-Canadian programming. This programming includes the Indigenous Skills and Employment Training (ISET), which is itself delivered by Indigenous agreement holders.

The Canada Employment Insurance Commission

The Canada Employment Insurance Commission (CEIC) has a legislated mandate to monitor and assess the EI program. It also oversees a research agenda that supports the preparation of the annual EI Monitoring and Assessment Report. At the end of each fiscal year, the CEIC presents the report to the Minister of Employment, Workforce Development and Official Languages (the Minister), who then tables it in Parliament.

The CEIC consists of 4 members, of which 3 are voting members representing the interests of workers, employers and the government. The Commissioner for Employers and the Commissioner for Workers are appointed to renewable terms of up to 5 years and represent their respective groups' concerns on policy development and program delivery related to EI and the labour market. The Deputy Minister of Employment and Social Development Canada (ESDC) represents the federal government and acts as the Chairperson of the CEIC. The Senior Associate Deputy Minister of ESDC acts as the Vice Chairperson, with voting privileges only when acting on behalf of the Chairperson.

The CEIC makes regulations under the authority of the Employment Insurance Act, with the approval of the Governor in Council. It also plays a key role in overseeing the EI program by reviewing and approving policies related to its administration and delivery. ESDC and Service Canada carry out EI program operations on behalf of the CEIC.

The CEIC also plays a key role in ensuring the financial transparency of the EI program. Each year, it commissions an EI premium report from the Chief Actuary and prepares a summary report, both of which are delivered to the Minister as well as the Minister of Finance for tabling in Parliament. The Actuarial report is also used by the CEIC to set the maximum insurable earnings, as required by legislation. Since 2017, the CEIC has been responsible for setting EI premium rates using a 7-year-break-even mechanism.

The CEIC advises on EI appeal decisions to be reviewed by the Federal Court of Appeal. The Commissioner for Employers and the Commissioner for Workers serve on a tripartite committee along with the chair of the Social Security Tribunal. This committee is consulted by the Minister regarding Governor‑in‑Council appointments for members of the Tribunal's EI section.

The report

ESDC and Service Canada produce the Employment Insurance Monitoring and Assessment Report under the direction and guidance of the CEIC. The report provides a comprehensive analysis of the impact and effectiveness of the EI program, using sources such as EI administrative data, Statistics Canada survey data, internal and external analytical reports, and peer‑reviewed evaluation studies.

The first chapter discusses the state of the Canadian economy and labour market throughout 2023‑24. The second chapter examines the usage, impact and effectiveness of EI Part I benefits during this period. The third chapter assesses the supports provided under EI Part II through Employment Benefits and Support Measures. The fourth and final chapter presents information on EI program administration and service delivery.