A new report from Statistics Canada shows that the number of people receiving Employment Insurance (EI) benefits has increased staggeringly in just one year.
Canada’s unemployment rate has been high for a while, and people are struggling to find and keep jobs, deal with the high cost of living, and pay rent and mortgage. As businesses struggle to stay afloat, many have been unable to keep their employees, resulting in micro and macro layoffs across employment sectors.
The federal EI program helps during such times by providing temporary income support to unemployed workers while they seek employment or upgrade their skills. It also offers special benefits to those who take time off because of life events like pregnancy, illness, caring for a newborn or newly adopted child, or looking after an ailing family member.
“Workers receive EI benefits only if they have paid premiums in the past year and meet qualifying and entitlement conditions. Self-employed workers may participate in EI and receive special benefits,” states the government.
Changes in EI beneficiaries
On Thursday, Statistics Canada published its June EI report, and the findings are grim on both a monthly and yearly basis. As of June, 474,000 Canadians were receiving EI benefits.
The last time things were this bad was between August and September 2022, when the number of EI beneficiaries almost reached 490,000.
Compared to May this year, 6,000+ additional Canadians began receiving EI benefits in June. The statistics agency said this was the second consecutive monthly increase.
Before the increases in beneficiaries in May and June, the number had been relatively steady since September 2023.
Statistics Canada
When you look at the year-over-year picture, things get even bleaker.
Between June 2023 and June 2024, the number of beneficiaries increased by 10.4%, totalling 44,720 people.
“Data from the Labour Force Survey show that the unemployment rate increased 0.2 percentage points in June to 6.4%, as more people searched for work, while overall employment held steady,” StatCan reported. “Compared with 12 months earlier, the unemployment rate was up by 1.0 percentage points, and the number of unemployed people on layoff increased to 519,000 (+16.1%; +72,000) (not seasonally adjusted).”
Remember that EI numbers also change based on people who have exhausted their benefits, which makes the increase look even worse.
EI recipients across provinces
Provincially, only Alberta and Prince Edward Island saw a noticeable decline in monthly EI beneficiary numbers. Quebec (+2,720) and Ontario (+2,590) saw the most significant increases.
Perhaps the most shocking provincial statistic is that Ontario contributed 68% of the 12-month increase in numbers, adding a mind-boggling 30,380 names to the EI benefits recipients list.
Comparatively, BC added only 3,680 names to the list in the same period.
The worst-hit industries
Statistics Canada says that on a year-over-year basis, the number of regular EI beneficiaries increased among those who last worked in most broad occupational categories in June, except for two: natural resources, agriculture and related production occupations and those in art, culture, recreation and sport.
“The largest proportional increase from June 2023 to June 2024 was among regular EI recipients who last worked in natural and applied sciences and related occupations (+26.3%; +7,000),” states the report.
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“Over the same period, there was also a notable increase in the number of regular EI beneficiaries who last worked in manufacturing and utilities (+21.8%; +7,400), particularly as machine operators, assemblers and inspectors in processing, manufacturing, and printing (+37.7%; +6,000), and mainly in Ontario,” it further reads.
EI recipients dropped in specific industries from June 2023 to June 2024. Those who last worked in natural resources, agriculture, and related production occupations made for fewer claimants, down 7.2% (-2,300).
Have you struggled seeking employment this past year in your industry or beyond? Are you one of the people who have run out of EI benefits while doing so? Email us at [email protected] to partake in a future story.