Question Period Note: EI Modernization

Why have you not announced a plan for modernizing the Employment Insurance (EI) program?

Millions of Canadians rely on Canada’s Employment Insurance (EI) program every year, like when they find themselves out of work, starting a family, taking time to care for a loved one, or need to get better themselves.

To inform the way forward on EI modernization, the Government held comprehensive EI consultations. These consultations have provided the Government with valuable and extensive input we are in the process of reviewing.

Given the current and near-term inflationary pressures, the Government is taking a cautious approach to putting in place new EI measures that could increase EI premiums and make it harder for workers and employers to make ends meet.

As part of the way forward on EI, Budget 2023 proposes continued investments in the program. This includes an extension to the financial supports for workers in seasonal industries, ensuring the Work-Sharing program provides timely supports to employers, improving the recourse process for EI appeals, and continuing investments in the Labour Market Transfer Agreements with provinces and territories.

If Pressed

We have already implemented many important changes to EI to better support Canadians.

For example, to help Canada’s workers in seasonal industries, a project was introduced in 2018 to help address the gap between when EI benefits end and seasonal work restarts by providing up to five additional weeks of benefits for eligible seasonal workers who live in one of 13 targeted EI economic regions. This has most recently been extended into fall 2024.

In December 2022, EI sickness benefits were extended from a maximum of 15 weeks to up to 26 weeks of benefits. This helps approximately 169,000 Canadians per year to have additional time and flexibility they need to recover so they can return to work after an extended illness, injury or quarantine.

Building an EI Modernization Plan

The Minister of Employment, Workforce Development and Disability Inclusion’s 2021 mandate letter committed to “modernize the EI system for the 21st century, building a stronger and more inclusive system that covers all workers, including workers in seasonal employment and persons employed by digital platforms, ensuring the system is simpler and more responsive for workers and employers. […] In addition to moving forward with extending EI sickness benefits from 15 to 26 weeks, the plan will include a new EI benefit for self-employed Canadians and a 15-week benefit for adoptive parents.”

Budget 2023 extended support for seasonal workers until October 2024, providing up to five additional weeks of regular benefits to seasonal claimants in 13 targeted EI regions.

No further guidance on an EI Modernization plan was provided through Budget 2023.

The Canada Employment Insurance Commission recently set the 2024 EI premium rate at $1.66 per $100 of insurable earnings for employees, and $2.32 for employers, a 3-cent increase from last year. This is the rate forecasted by the EI Senior Actuary that is expected to return the EI Operating Account to balance by 2030, ensuring that premiums are no higher than needed to match EI program spending.

Consultations

The Government continues to work on initiatives to support the future of Employment Insurance (EI), building on results from consultations and lessons learned from recent experiences.

Budget 2021 announced two-years of consultations to inform the development of a plan to modernize the EI program.

Employment and Social Development Canada held consultations over two phases in 2021 and 2022. Phase 1 was from August 2021 to February 2022, and Phase 2 was from April 2022 to July 2022. These comprehensive EI consultations included a national online survey with over 1900 respondents, receipt of over 160 written submissions, over 30 national and regional roundtables held with more than 200 stakeholders, and three technical workshops with experts and academics.

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

Two reports outlining what was heard during consultations are available online.

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