Question Period Note: EMPLOYMENT INSURANCE MODERNIZATION

Why has the Government not announced a plan for modernizing the Employment Insurance program?

Millions of Canadians rely on Employment Insurance every year when they find themselves out of work, start a family, take time to care for a loved one, or need to get better themselves.

However, the labour market is changing and is facing challenges. In these times of major labour market transformations, Employment Insurance remains critical for supporting workers and help stabilize their income during job transitions and economic disruptions, including from tariffs.

The Government of Canada is committed to enhancing the Employment Insurance program so that it can offer reliable and flexible support in response to modern workforce realities.

Our Government has taken decisive and continued actions to ensure it is responsive in these challenging times by introducing a suite of temporary Employment Insurance measures and Work-Sharing flexibilities, along with increased supports for reskilling and training, to support affected workers and businesses.

Additional changes to Employment Insurance have also been made to improve supports for workers in seasonal industries, for those who need to take time off due to illness or injury, and for those who adopt.

If pressed on permanent changes to the program:

Some of the important steps to modernize the Employment Insurance program include:

Extending sickness benefits from 15 to 26 weeks;

Announcing a new sharable benefit for adoptive parents, passed in Parliament in June 2024; and,

Extending supports for seasonal workers in 13 targeted regions until October 2026.

Previous Government Commitments to Modernize the Employment Insurance Program

In its 2025 platform, the Government committed to strengthen the social safety net and ensure no one is left behind. As a priority over the coming year, the government committed to work on enhancing the EI system to better reflect the modern workforce with flexible and reliable support, so that workers who become displaced and those that need to update their skills can invest in their future.

In previous mandate commitments and Budgets (2021, 2022), the Government of Canada committed modernizing EI, including building a simpler, stronger and more responsive system that covers all workers (seasonal, adoptive parents, mid-career workers, self-employed, etc). This included $5 million over two years to conduct targeted consultations on designing an EI program for the future.

As per Budget 2021 commitment, comprehensive consultations on the program were completed in 2022 and What We Heard reports were published online (Phase 1 report – April 2022; Phase II report - September 2022).

Topics for the consultations included EI access and simplification, adequacy of benefits, supports for workers experiencing life events, workers in seasonal industries, supports for self-employed and gig workers, including artists and cultural workers, the Premium Reduction Program, and the financing of the EI program.

We heard from stakeholders on how to make the program simpler, fairer, more accessible, more inclusive and more responsive, while remaining financially sustainable.

A number of key changes were implemented since 2022:

Budget 2022 announced the extension to the duration of sickness benefits from 15 to 26 weeks. This change came into effect on December 18, 2022, for all new sickness benefit claims established on or after that date.

The 2023 Fall Economic Statement announced a new shareable 15-week benefit for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code. This legislation received royal assent in June 2024, and implementation is ongoing.

FES 2023 announced a new pilot project that provided up to four extra weeks of regular benefits, (on top of the five additional weeks already available under the existing temporary legislated measure) to eligible seasonal claimants in the 13 targeted Employment Insurance regions who established a claim between September 10, 2023, and September 7, 2024.

Introduction of temporary supports in 2024 for workers affected by lengthy evacuations caused by the major wildfires in Jasper, Alberta and Bunibonibee, Manitoba (ended August 3, 2025).

A two-year extension through to October 2026 of a temporary measure that provides up to five extra weeks of regular benefits for eligible seasonal workers.

This is in addition to Temporary Program Changes introduced in Response to Tariffs

Temporary changes to the Employment Insurance program were introduced in March 2025 to support those affected by foreign tariffs, including:

Flexibilities to increase the access and duration of supports under the Work-Sharing program, to help workers and businesses directly and indirectly impacted by tariffs (available for one year until March 2026); and,

Three other measures to provide more timely benefit access for workers:

Waiving the one-week waiting period (no more “deductible”) (ending April 11, 2026);

Suspending some EI rules so workers don’t have to exhaust severance pay before collecting benefits (ending April 11, 2026); and,

Making it easier to access benefits by adjusting regional unemployment rates so no worker needs more than 630 hours to qualify (ended Oct 11, 2025).

On September 5, 2025, the Government of Canada announced:

The extension of two of the temporary measures (waiving the waiting period and suspending the rules on separation payments) to April 11, 2026; and,

That long-tenured workers would temporarily receive an extra 20 weeks of income support (to a maximum of 65 weeks) with a total cost of $1.6B over five years. Long-tenured workers, including those in trade exposed sectors, may need more time to find a job or pursue upskilling opportunities to re-enter the labour market. The measure is expected to support 190,000 long-tenured workers. It started on October 12, 2025 (applying retrospectively to claims starting on or after June 15, 2025) and is set to end on April 11, 2026.

To be considered a long-tenured worker, you must have received fewer than 36 weeks of regular or fishing benefits in the three years before the start of your claim, and paid at least 30% of the annual maximum EI premiums in 7 of the last 10 years before the year your claim starts.

Additional supports were also announced to support job matching and training for workers impacted by tariffs:

On July 16, 2025, support to up to 10,000 workers in the steel industry impacted by tariffs (an investment of $70 million) with targeted training and reskilling, income support and job retention programming;

On August 5, 2025, $50 million in funding to support reskilling, upskilling and income supports for workers in the softwood lumber sector; and,

On September 5, 2025, the Government announced an investment of an additional $450 million over three years via the Labour Market Development Agreements for the retraining and upskilling of up to 50,000 more workers. In collaboration with employers, workers will get access to targeted training, along with financial assistance while training, to retain their jobs or fill in-demand jobs and continue contributing to the Canadian economy.

As part of this announcement, the Government also announced it will be creating new workforce alliances which will be focused on reskilling and upskilling Canadians for new job opportunities and significant improvements to Canada’s Job Bank which will more easily and quickly match Canadian workers with available jobs.

Current Unemployment Trends and Role of Employment Insurance in Economic Downturns

The Employment Insurance program effectively functions as an economic stabilizer, including during economic downturns. In previous economic shock situations, temporary measures have been implemented to help improve access and adequacy of benefits, responding to the economic and labour market impacts of these events.

Unemployment has been slowly rising since the beginning of 2025.

The national unemployment rose to 7,1% in August and has slightly reduced in November to 6.5%.

Unemployed workers continue to face difficulties finding employment. Out of the 1.8 million unemployed workers in August 2025, 19.7% were long-term unemployed workers (27 weeks or more unemployed).

The number of applications for regular benefits increased by 4.9% nationally in August 2025 (as of the latest data on Sept 5) compared to the same month last year.

Since February 2025, there have been 127,955 (5.0%) more claims than during the same period last year.

Work-Sharing applications have grown for the January to September period (106% higher than for the same period last year), reaching a total of over 1,300 applications as of September 6, 2025, with 83% of them related to tariffs.

Almost 1000 tariff-related agreements have been approved, expecting to help prevent more than 12,000 layoffs and affecting more than 31,000 employees.

Machinery (Except Electrical) and Fabricated Metal Products are the most vulnerable industries with the highest number of applications (223), the majority of which have been submitted by businesses operating in Quebec (54) and Ontario (115).

Private Member Bills and Parliamentary Studies

There are two Private Member Bills (PMB) in the House currently proposing EI amendments as well as an additional PMB that is expected in the near future.

First, PMB C-222, introduced on September 18, 2025, by the Honourable Terry Beech, seeks to: 1) Amend the EI Act to allow parental benefit claimants to continue to receive all weeks of these benefits following the death of their child; 2) Amend the Code to provide that employees in federally-regulated sectors who are on maternity or parental leave remain entitled to these job-protected leaves following the death of their child; and 3) Move forward provisions so that parental benefit claimants would not have to make a new claim for benefits, or prove their eligibility to receive or continue to receive these benefits.

Second, PMB C-249 introduced on October 21, 2025 by MP Boulerice (NDP), seeks to: 1) Amend the EI Act to prevent the existing rules on combining regular and special benefits (52 weeks benefit period duration and maximum of 50 weeks paid) from applying to the specific situation of when regular benefits are combined with maternity and/or parental benefits, and 2) Increase the number of weeks for EI family caregiver benefit for adults from 15 to 26 weeks, similar to EI sickness benefit duration.

Additionally, PMB C-418, An Act to Amend the Employment Insurance Act (accessibility and other measures) was introduced during the previous Parliament by Bloc Québécois in November 2024. The bill sought extensive changes to the EI program largely aligned with what was heard from labour stakeholders during the EI public consultations in 2021-2022. The Bloc has indicated that it will be re-introducing this private members’ bill in the near future with only minimal changes

Senate Public Bill S-244, An Act to amend the Department of Employment and Social Development Act and the Employment Insurance Act (Employment Insurance Council), was introduced in May 2022, by Senator Diane Bellemare. The Act would have created an advisory council, to be known as the Employment Insurance Council, to provide advice and make recommendations to the Canada Employment Insurance Commission on any matter relating to the powers, duties and functions of the Commission. The Bill was supported by a number of Senators including Rose-May Poirier (Conservative), Marty Klyne (Progressive Senate Group), and Krista Ann Ross (Canadian Senators Group) who all spoke positively about the Bill. The bill died on the Order Paper at the conclusion of the 44th Parliament. It has not yet been reintroduced.

Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) study on seasonal workers: on October 8, 2024, introduced by the Bloc Québécois. The motion was unanimously adopted. Two meetings were held with external witnesses in the Fall.

Premium Rate Setting Process

Employment Insurance premiums for 2025 are $1.64 per $100 of insurable earnings for employees, and $2.30 for employers.

On September 12, 2025, the Canada Employment Insurance Commission has set the EI premium rate for 2026 at $1.63 per $100 of insurable earnings. This is one cent lower than it was in 2025 and ensures the premium rate will stay at near historically low levels. The new rate will take effect on January 1, 2026.

The employer rate is 1.4 times the employee rate. For 2026, the employer rate is $2.28 per $100 of insurable earnings for each employee.

KEY FACTS

Current changes in the labour market, including adjusting to AI and automation in the workplace, the effects of climate change and impacts of foreign tariffs, reinforce the need for a strong workforce development system to help Canadians prepare for jobs of the future. This includes ensuring workers have the Employment Insurance income support they need when facing work disruptions.

The Government of Canada’s 2025 platform committed to strengthen Canada’s social safety net and ensure no one is left behind. Specifically, it committed to “work[ing] on enhancing the Employment Insurance system to better reflect the modern workforce with flexible and reliable support.”

The Government has taken significant action to improve access and adequacy of EI income supports in response to foreign tariffs, with temporary measures introduced in March 2025 and additional supports introduced in September 2025 as part of a broader workforce support plan. It has also introduced temporary Work-Sharing flexibilities to help employers and employees avoid lay-offs.

In addition to EI-funded tariff responses, a number of changes have been made to the program in recent years, including:

Extending EI sickness benefits from 15 to 26 weeks (in effect as of December 2022);

Announcing a new sharable benefit for adoptive parents (implementation ongoing with legislation passed in Parliament in June 2024);

Extending supports for seasonal workers in 13 targeted Employment Insurance regions until October 2026; and

A temporary measure to support workers impacted by the 2024 wildfires in Jasper and Bunibonibee Cree Nation (ended in August 2025).

Under Employment Insurance, the proportion of unemployed workers who pay premiums and meet eligibility requirements for income supports has increased from 39% in 2019 to close to half of the total unemployed population (49.6%) in 2023-24.