| undeniable that the current state of the Canadian | | | | Today’s Effects on the Canadian Economy |
| economy is grim. Unemployment rates are at | | | | The combination of reduced benefits and the greater |
| unprecedented highs and the labour market is at an | | | | dependence on unemployment by the masses are |
| all time low. During times of economic uncertainty and | | | | culminating in an interesting end result. Since |
| general unease about the market, social programs | | | | unemployment is up across all regions, the effect is |
| experience particular scrutiny and pressure. | | | | greater economic fragmentation. We are seeing that |
| Canadian Unemployment Insurance | | | | smaller and poorer communities continue to uphold |
| Unlike the United States, where federal | | | | more traditional occupations and ways of life, |
| unemployment programs are run at the state level, | | | | arguably held up by strengthened support from |
| the Canadian unemployment system is exclusively | | | | federal social programs. On the other hand, the |
| federal. The Canadian insurance policy is financed | | | | increasing level of unemployment throughout more |
| directly by employers’ and | | | | affluent regions has created a mad scramble for |
| employees’ contributions. Up until 1991, | | | | more modernized industrialization. |
| general federal revenues also supplemented these | | | | EI’s New Pilot Programs |
| contributions. The program is highly regional in that it | | | | The Canadian government realizes that adjustments |
| provides for greater support in terms of duration of | | | | need to be made to the overall system. In 2008, it |
| benefits and qualification periods to areas that suffer | | | | launched a series of unemployment insurance pilot |
| from higher unemployment. | | | | programs to test different methods. The Working |
| Traditionally, unemployment insurance programs in | | | | While on Claim project incentivizes the acceptance of |
| Canada were designed to serve as a broad | | | | all types of work while on EI benefits. The New |
| instrument of income supplementation that would | | | | Entrant/Re-entrant project is testing whether |
| sustain small communities and protect traditional | | | | enabling new or newly returned members of the |
| occupations from forces of economic modernization. | | | | labour market to receive benefits quicker (along with |
| Those smaller communities with more traditional | | | | providing greater awareness about the program) can |
| lifestyles happen to also be within the regions that | | | | reduce the individual’s future reliance on EI |
| see more support from the federal unemployment | | | | benefits. The Best of 14 Weeks project is testing a |
| system. | | | | method to make EI benefit levels more closely tied |
| Since the 1980’s, Canadian unemployment | | | | to full-time work earnings for individuals with irregular |
| insurance programs have seen several different | | | | work patterns, (such as freelancers and seasonal |
| types of cuts, including duration of benefits, | | | | workers) and to convince workers to accept any |
| qualification periods, and amounts awarded. The | | | | and all available work by formulating their EI benefits |
| government has withdrawn significant resources from | | | | based on the "best 14 weeks" of earnings over the |
| these programs. These cutbacks have tended to hit | | | | 52 weeks prior to filing their initial claim. |
| harder in more affluent regions, while areas with | | | | These pilot programs inspire hope for improvement |
| higher unemployment still enjoy nearly the same | | | | and more positive effects of the system on the |
| levels of unemployment support. | | | | greater Canadian economy. |