A new report from Statistics Canada has revealed a significant increase in the number of Canadians receiving Employment Insurance (EI) benefits, highlighting the ongoing economic challenges facing the country. The report, which covers data up to June 2024, shows a worrying trend as unemployment remains high, and more people are turning to EI for temporary financial relief.
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Rising Unemployment and Economic Pressures
Canada’s unemployment rate has been persistently high, with many workers finding it increasingly difficult to secure and retain jobs. The high cost of living, combined with rising rent and mortgage payments, has exacerbated the situation. Businesses across various sectors are also struggling, leading to widespread layoffs both on a small and large scale. This has left many Canadians relying on the federal EI program, which provides temporary income support to those who have lost their jobs or are unable to work due to certain life events such as illness or pregnancy.
What the EI Program Offers
The EI program is designed to offer temporary financial assistance to unemployed workers who meet specific eligibility criteria, including having paid EI premiums in the past year. Additionally, the program provides special benefits for self-employed workers and those who need to take time off due to significant life events, such as caring for a newborn or an ill family member.
A Grim Picture: EI Beneficiary Numbers on the Rise
Statistics Canada’s June 2024 report presents a stark picture of the current state of employment in Canada. As of June, 474,000 Canadians were receiving EI benefits, marking a significant increase both month-over-month and year-over-year.
- Monthly Increase: In June alone, an additional 6,000+ Canadians began receiving EI benefits, following a similar increase in May. This marked the second consecutive month of rising EI beneficiaries after a period of relative stability that lasted from September 2023 to April 2024.
- Year-over-Year Increase: The year-over-year comparison is even more alarming. Between June 2023 and June 2024, the number of EI beneficiaries surged by 10.4 per cent, adding 44,720 new recipients to the list. This increase coincides with a rise in the unemployment rate, which climbed to 6.4 per cent in June 2024, up from 5.4 per cent in June 2023.
Statistics Canada also noted that the number of unemployed people on layoff rose significantly, reaching 519,000 in June 2024, a 16.1 per cent increase from the previous year. These figures suggest that the true extent of joblessness may be even higher, as the EI beneficiary count only includes those who qualify and have not yet exhausted their benefits.
Provincial Disparities in EI Recipients
The increase in EI beneficiaries was not uniform across Canada. Provincially, Quebec and Ontario saw the most significant increases, with Ontario alone accounting for 68 per cent of the national year-over-year increase. Ontario added a staggering 30,380 new EI recipients between June 2023 and June 2024, while British Columbia saw a comparatively modest increase of 3,680.
In contrast, Alberta and Prince Edward Island were the only provinces to record a noticeable decline in monthly EI beneficiary numbers during this period.
| Province | Change in EI Beneficiaries (June 2023 – June 2024) | Notes |
|---|---|---|
| Ontario | +30,380 | Accounted for 68% of the national increase |
| Quebec | Significant Increase | |
| British Columbia | +3,680 | Comparatively modest increase |
| Alberta | Decline | Notable decrease in monthly beneficiaries |
| Prince Edward Island | Decline | Notable decrease in monthly beneficiaries |
Impact on Industries: Who is Hit the Hardest?
The report also highlights how different industries have been affected. Most broad occupational categories saw an increase in regular EI beneficiaries over the past year, with the most substantial rise among those in natural and applied sciences and related occupations, which saw a 26.3 per cent increase (+7,000).
Other industries experiencing significant increases in EI recipients include manufacturing and utilities, particularly among machine operators, assemblers, and inspectors in processing and manufacturing. In contrast, those who last worked in natural resources, agriculture, and related production occupations experienced a decline in EI claimants, down by 7.2 per cent (-2,300) from June 2023 to June 2024.
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Looking Ahead
The continued rise in EI beneficiaries underscores the ongoing economic difficulties many Canadians face. With unemployment rates still high and many industries struggling, the demand for EI benefits is likely to remain elevated in the coming months. This trend highlights the need for targeted economic support and job creation initiatives to help stabilize the labor market and reduce the reliance on EI benefits.