Canadians eligible for employment insurance at decade-long low

The rate of eligibility for collecting employment insurance has plunged to its lowest level in nearly a decade and critics warn it’s only going to get worse.

Statistics Canada released figures Monday that revealed of 867,000 unemployed individuals who contributed to EI in 2011, only 545,000 had worked enough hours to qualify for coverage.

It’s the lowest rate — 78.4 per cent — since 2003. More part-time job losses than full-time losses are to blame because part-time workers do not accumulate enough hours, according to Statistics Canada.

Ken Georgetti, president of the Canadian Labour Congress (CLC), said temporary jobs are also to blame and he fears it’s only going to get worse.

“People can find temporary work — that is the only stuff available — and then they can’t build enough hours once they get laid off,” said Georgetti.

In 2008, before the recession, there were 875,200 temporary jobs in Canada and by 2011, there were 1,017,200, according to the CLC.

According to Statistics Canada, part-time jobs in Canada increased by 208,100 from January 2008 to 2012, whereas full-time jobs increased by 158,200.

Georgetti added part of the Conservative’s upcoming EI reforms will make the situation worse.

The reforms, due in 2013, will force the unemployed to take jobs, whether part-time, full-time or temporary, and whether in their field or not, sooner.

By forcing people into part-time or temporary jobs too soon, Georgetti said they enter a “vicious cycle” that leaves them without enough hours to collect EI once that job comes to an end.

Alyson Queen, a spokesperson for Diane Finley, the Minister of Human Resources and Skills Development, responded to the Statistics Canada report by email.

“This report continues to show that around eight out of 10 people qualify for Employment Insurance,” said Queen, adding as of July 2009, “820,000 net new jobs have been created,” 90 per cent of them full-time.

New Democrat MP and human resources and labour critic Chris Charlton, said the EI system is broken and the number of worked hours required to qualify should be reduced.

“The government has defined the criteria in such a way that Canadians can’t collect what they’re paying in to,” said Charlton, adding “the government is not creating full-time, sustainable jobs.”

Liberal MP and human resources and labour critic Rodger Cuzner said the decrease in EI eligibility is a big concern.

“The most concerning thing is the number of Canadians working in temporary positions,” said Cuzner. “Some people just aren’t getting enough hours worked by the time that job finishes.”

Scott Brison, the Liberals’ finance critic, said the Conservatives have to come to terms with a changing job market, one that sees more Canadians getting by on part-time or temporary work.

“We’re not sure how long its going to last,” Brison said of the uneven economic recovery. “At a time when the Conservatives need to make EI more accessible, they’re making it less accessible.”

Original Article
Source: the star
Author: Alex Consiglio