Canada's Economic Action Plan

Helping the Unemployed
June 2009

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Supporting Those Hit Hardest

Losing a job is among the most difficult things a family or individual can face. The global recession makes it more difficult for Canadians to find work and limits the capacity for businesses to hire. Our Government understands the challenges that unemployed Canadians are facing, and we are making significant investments to support them.

That is why we will spend $5.5 billion more in EI benefits this year than last year.

The EI program has responded to this greater need in these changing labour market conditions. The Variable Entrance Requirement makes it easier to qualify and extends the duration of EI benefits as unemployment rises.

This built-in flexibility is providing Canadians in all regions affected by the economic downturn with increased access to EI benefits and longer benefit periods when required.

In the hardest-hit regions of Ontario, B.C. and Alberta, the number of insurable hours required to qualify for EI has fallen by up to 175 hours, while the duration of benefits has increased by up to 12 weeks.

The Government has also invested more than $60 million to ensure that EI benefits continue to be delivered quickly, and it will continue to ensure Canadians get EI as they need it.

Strengthening Benefits for Canadian Workers

Canada's Economic Action Plan took quick and decisive action to support workers and families hardest hit by the global economic recession and resulting job losses, including enhancing EI benefits.

Extra Five Weeks of EI Regular Benefits: Canadian workers are now able to receive up to an extra five weeks of EI regular benefits. As of May 24, 2009, more than 155,000 unemployed Canadian workers had received additional benefits. An extra five weeks of benefits represents up to an additional $2,235 in EI benefits for an unemployed worker. This provides additional support to Canadians while they are trying to find a job.

Work-Sharing Flexibility: The innovative work-sharing program is helping to preserve jobs that otherwise might have been lost. It is providing support in record numbers to thousands of businesses and employees by allowing them to continue working a reduced work week while they receive EI benefits for the days they do not work. The number of Canadians benefiting from work-sharing arrangements is up more than fourfold since January to about 120,000 employees in May.

Wage Earner Protection Program (WEPP): The WEPP's extended benefits took effect on January 27, 2009. Eligible workers are now provided guaranteed and timely payment of wages, severance, and termination and vacation pay owed if their employer becomes bankrupt and does not pay. As of April 30, 2009, 3,264 applications had been made under the WEPP since the budget announcement and $1.7 million has already been paid.

Support for Long-Tenured Workers: Many Canadians who have worked for years, paying into EI, but who have collected very little EI, are now losing their jobs, especially in the manufacturing and forestry industries. To ensure these workers have support to retrain for a new job, possibly in an entirely different industry, their EI benefits will be extended up to a maximum duration of two years while they participate in longer-term training through the Career Transition Assistance initiative. In addition, workers who use their severance package to pay for training will have earlier access to EI benefits. In total, these measures are expected to benefit an estimated 40,000 Canadians. These extended benefits will be available for long-tenured workers beginning in the summer of 2009. Those unemployed Canadians who may benefit from these measures are being notified by Service Canada.

Enhancing the Availability of Training

To assist Canadian workers hit hardest by the economic downturn, the Action Plan is investing over $1.5 billion in provincial and territorial training programs. About 150,000 workers across the country will get training to get new or additional skills to help them find a job.

Enhanced EI Training Programs: Agreements to deliver this additional training for workers within the EI program have now been signed with nine provinces and funds will start to flow. Agreements with the remaining province and the territories are expected in the near future. Once all agreements have been signed, this additional funding is expected to help up to 100,000 more EI clients over the next two years.

Strategic Training and Transition Fund: The Economic Action Plan provides even more support for the training and employment needs of those individuals not covered by EI. Funding agreements have now been signed with nine provinces, and money will start flowing. Provinces and territories will report quarterly on the number of Canadians helped and the activities that were supported with the funding. Agreements with the remaining province and the territories are expected in the near future. With all provinces and territories participating, the additional funding is expected to benefit 50,000 more people over the next two years.

Supporting Youth: With the additional funding provided by the Action Plan, the Canada Summer Jobs Program is expected to support the creation of 39,000 jobs for students. In addition, agreements are being finalized with the YMCA and YWCA to implement the new YMCA and YWCA Grant, which will support the creation of internships for Canadian youth in not-for-profit and community services organizations, with a focus on environmental projects to ensure our young people can find meaningful employment.

Targeted Initiative for Older Workers: More older workers in a larger number of affected communities are being provided additional support through the Targeted Initiative for Older Workers. Arrangements are in place with Quebec, Nova Scotia, Saskatchewan, Yukon, Northwest Territories, Prince Edward Island, New Brunswick, British Columbia, and Newfoundland and Labrador. Agreements are being finalized with Ontario, Manitoba and Nunavut.

$2,000 Apprenticeship Completion Grant: The $2,000 Apprenticeship Completion Grant will be available by early July for those who have completed their training in a Red Seal trade this year. An estimated 20,000 apprentices are expected to take advantage of the grant this year.

Foreign Credential Recognition: The Government is working with provinces and territories to develop a common framework to recognize foreign credentials this year.

Aboriginal Skills and Employment Partnership (ASEP) Program: ASEP fosters partnerships with provincial and territorial governments, Aboriginal organizations and the private sector to help Aboriginal Canadians receive valuable skills and employment training. Five new ASEP projects have been identified. These projects will commence this summer. A call for new proposals was launched in April. These applications will be assessed and approved in the fall.

Aboriginal Skills and Training Strategic Investment Fund: The application process for this fund was successfully launched on May 4, 2009, and proposals are now being received from Aboriginal groups. There are three types of projects: training-to-employment projects, short-term skills development projects and service improvement projects. Projects that meet eligibility criteria will be announced beginning in September.

Maintaining Low Employment Insurance Premium Rates

To leave more money in the hands of employers and employees, the Government has frozen EI premium rates for 2010 at $1.73, the same rate as 2009 and the lowest rate since 1982. This represents a relief of $10.5 billion over 2009 and 2010 for Canadian workers and their employers.

For more information on Canada's Economic Action Plan, visit
www.actionplan.gc.ca

or call

1 800 O-Canada (1-800-622-6232)
1-800-926-9105 (TTY)