New rules let those on EI keep more if they find work
Bottom line is that Ottawa will claw back less if they earn more
Jobless Canadians receiving employment insurance benefits can now keep more of their earnings if they find temporary part-time work while still collecting EI benefits.
Ottawa announced the change to its EI program Thursday saying it would remove the disincentives to work.
The measure, unveiled in the 2012 federal budget, is one of a series of initiatives designed to help unemployed and disadvantaged Canadians rejoin the workforce sooner, the government said.
Despite a 7.5 per cent unemployment rate, Canada is facing a looming skills shortage as older baby boomers retire and population growth slows.
The new rules would work like this:
A hypothetical unemployed den- tal hygienist named Jennifer has been laid off from her job and is receiving $450 a week in employment insurance benefits. She finds part-time work, which pays $600 a week. Under the current rules, Jennifer could earn up to 40 per cent of her EI benefits, or $180 a week, but would then have to give back $1 of benefits for every $1 earned. Her combined earnings and EI benefit would be $630 a week.
Under the new rules, Jennifer would lose just 50 cents for every $1 earned for a total of $750 a week in combined EI benefits and earned income. The program will cost Ottawa $74 million. Other changes to the EI program would help seasonal workers in depressed regions qualify for higher benefits, a program that will cost $387 million over two years. The government is also considering tightening the job-search crite- ria for people on EI benefits, making it tougher for people in low-unemployment regions to remain off work. The details of such a program would be outlined by Human Resources Minister Diane Finley in the months to come, government officials said. Other related measures are aimed at encouraging employers to hire local jobless workers before bringing in temporary foreign workers. Ottawa also wants to fast-track immigration for people with skills in high demand. And it says it aims to give aboriginals, older workers and youth a better shot at finding work. In other related measures, the government said it would also spend:
$50 million to help youth get the right skills and experience to work in fields where demand is high, a program that helped 70,000 young Canadians last year.
$21 million over two years to help unemployed Canadians find jobs.
$14 million for the industrial research and development internship program over two years.