Canada’s Economic Action Plan: Helping the Unemployed

June 17, 2009

Canada’s Economic Action Plan is achieving results, Langley MP Mark Warawa announced today on behalf of the Honourable Diane Finley, Minister of Human Resources and Skills Development.

Since February, the Government of Canada has taken steps to ensure that Canadians have the support they need to face the challenges of a global economic slowdown. Investments have been made to help workers and the unemployed through income support, to protect and create jobs, and to help prepare Canadians for the jobs of tomorrow.

“Our government knows that, by keeping Canadians working, we can minimize the impact of these economic times,” said Warawa. “This is what makes an economy work. Jobs are the key to our economic recovery and to attaining our long‑term economic goals. We are making good progress. Our government is making record investments to stimulate the economy, support the unemployed, preserve jobs and prepare Canadians for the jobs of the future.”

Across Canada, workers and the employed can count on support through the Employment Insurance (EI) program, which is designed to recognize the diverse labour market situations that exist across the country. When unemployment goes up in a particular region, the number of hours required to qualify for EI decreases, making it easier to access EI. In addition, the duration of benefits increases. 

As a result of this flexibility, since October 2008, more than 85 per cent of Canadian workers are able to access EI benefits more easily, with fewer hours being required to qualify and for longer periods of time.

The Government has introduced several improvements to the EI program, with the following results:

• Since January 2009, nearly 80 per cent of Canadians have received their first EI cheque within 28 days on average, despite a dramatic increase in claims;
• This year, the Government is providing an additional $5.5 billion in EI benefits over last year;
• Providing an extra five weeks of EI benefits to more than 155,000 Canadians;
• Freezing the EI premium rate until 2010 at its lowest level since 1982. This represents projected relief to employees and employers of $10.5 billion over two years;
• Providing greater flexibility and streamlined processes so more businesses can qualify for Work-Sharing agreements, which have benefited more than 120,000 Canadians so far;
• More than 3,200 applications have been made under the Wage Earner Protection Program, with $1.7 million paid out to date.

Through the Canada Skills and Transition Strategy, Canada’s Economic Action Plan is investing in training for workers affected by the global slowdown and creating new opportunities for workers in the longer term by:

• Providing an additional $1.5 billion to the provinces and territories to help them address local training needs, which will help about 150,000 Canadians;
• Helping over 40,000 long-tenured Canadians make the transition into another career through Career Transition Assistance;
• Encouraging approximately 20,000 apprentices to complete their training by offering $2,000 grants under the Apprenticeship Completion Grant;
• Helping more than 39,000 youth find jobs and gain access to valuable work experience through a $20-million increase to the Canada Summer Jobs program, and by providing grants totalling $15 million to YMCA and YWCA; and
• Helping Aboriginal people secure long-term jobs through the Aboriginal Skills and Employment Partnership program and the Aboriginal Skills and Training Strategic Investment Fund.

These initiatives are part of the Economic Action Plan’s total investment of $62 billion designed to:

• permanently reduce taxes;
• help the unemployed;
• avoid layoffs by enhancing the Work-Sharing program;
• protect and create jobs through a massive injection of infrastructure spending;
• help create the economy of tomorrow by improving infrastructure at colleges and universities and supporting research and technology;
• support industries and communities most affected by the global downturn; and
• improve access to and the affordability of financing for Canadian households and business. 

To learn more about Canada’s Economic Action Plan, visit www.actionplan.gc.ca.