Introduction

On this page

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

As required under Section 3 of the Employment Insurance Act, the Canada Employment Insurance Commission is pleased to present this report to Parliament. Its purpose is to monitor and assess the impact and effectiveness of the benefits and other supports offered under the Employment Insurance (EI) program. This report aims to provide a clear understanding of how EI impacts the Canadian economy and how it supports the needs of workers across the country.

The Employment Insurance program

The EI program provides temporary income support to eligible individuals who are unemployed and have contributed to the program in order to partially replace employment income. Benefits help claimants while they search for work, pursue training to improve their skills (if referred 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 is delivered through 2 major components:

• EI Part I, which provides direct temporary income support through EI regular benefits, fishing benefits, Work-Sharing benefits and special benefits^{Footnote 2}
• EI Part II, which provides Employment Benefits and Support Measures (EBSMs). These include services delivered through Labour Market Development Agreements (LMDAs) as well as the Indigenous Skills and Employment Training program (ISET) program

Together, the income benefits offered under EI Part I and the EBSMs offered under EI Part II support workers across Canada as they navigate through employment transitions.

EI regular benefits provide temporary income support to partially replace lost employment income for eligible claimants, helping them as they look for a new job and remain active in the labour force. To qualify, individuals must have accumulated a minimum number of hours of insurable employment, paid EI premiums, and had a valid job separation. They must also be available for and actively seeking work to receive benefits.

EI fishing benefits are provided to qualifying self-employed fishers who are actively seeking work. Unlike 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 that are beyond an employer's control. Eligible workers in a work unit agree to reduce 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 who have to take leave from work due to specific life circumstances, such as illness, pregnancy, childbirth, caring for a newborn or a newly adopted child, or the care of a critically ill or injured family member or someone requiring end-of-life care.

Employment Benefits and Support Measures (EBSM) are services delivered under EI Part II and help individuals prepare for, find, and maintain employment. Through LMDAs, provinces and territories create and administer the programs that deliver these services, while the Government of Canada provides pan-Canadian programming. This includes the Indigenous Skills and Employment Training (ISET), delivered by Indigenous organizations to support skills development and employment outcomes for Indigenous peoples.

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 submits this report to the Minister of Employment and Social Development (the Minister), who then tables it in Parliament.

The CEIC is composed of 4 members, 3 of whom are voting members representing the interests of workers, employers and the federal 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' interests in 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 serves as Chairperson of the CEIC. The Senior Associate Deputy Minister of ESDC serves as Vice-Chairperson and holds voting privileges only when acting on behalf of the Chairperson.

The CEIC makes regulations under the Employment Insurance Act, with the approval of the Governor in Council. It plays a central 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 ensures the financial transparency of the EI program. Each year, it commissions an EI premium report from the Chief Actuary and prepares a summary report, which are both provided to the Minister and 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 brought before the Federal Court of Appeal. The Commissioner for Employers and the Commissioner for Workers serve on a tripartite committee with the Chair of the Social Security Tribunal. This committee is consulted by the Minister regarding Governor in Council appointments to 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.

• Chapter 1 examines the state of the Canadian economy and labour market in 2024-25
• Chapter 2 analyzes the usage, impact and effectiveness of EI Part I benefits during this period
• Chapter 3 reviews the supports delivered under EI Part II through Employment Benefits and Support Measures
• Chapter 4 presents information on EI program administration and service delivery

Footnotes