Canada. Number of EI Recipients on the rise

In May, 778,700 people received regular Employment Insurance (EI) benefits, up 65,600, or 9.2%, from a month earlier, with Alberta and Ontario showing the fastest rates of increase. This rise followed an increase of 3.7% in April.

The number of people receiving regular benefits in May was the highest since comparable data became available in 1997.

Following two months of small declines, the number of initial and renewal claims received in May increased 5.2% to 332,800, the highest number of claims since 1997.

Fastest increases in the West and Ontario

Since employment peaked in October 2008, the number of regular EI beneficiaries has risen by 278,300, or 55.6%, with increases in all provinces and territories.

The largest percentage growth in the number of regular beneficiaries over the seven-month period was in Alberta, followed by British Columbia, Ontario, Saskatchewan and Manitoba. In May, each of these provinces recorded their highest level of beneficiaries since comparable data became available in 1997.

In Alberta, the number of regular beneficiaries grew by 16.8% to 57,000 in May. Since the labour market started to deteriorate in October 2008, the number of beneficiaries has increased each month, bringing the total increase to 38,800. During the same period, the unemployment rate in this province grew from 3.7% to 6.6%, but remained below the national rate of 8.4% in May.

In Ontario, the number of regular EI beneficiaries increased by 16.0% to 274,100 from April to May, bringing total increases since October 2008 to 119,500.

Following little change in April, the number of people receiving benefits in British Columbia increased by 6.2% in May to 88,200. The total increase since October 2008 was 42,600.

In Saskatchewan, the number of regular beneficiaries rose 5.8 % in May, a slower pace of growth than in the previous four months. From October to May, the number of beneficiaries rose by 64.2% to 14,000. The unemployment rate in Saskatchewan remains among the lowest in the country.

Since last October, the Atlantic provinces, Quebec and Manitoba have posted smaller increases in the number of regular beneficiaries than the national average of 55.6%.

Sub-provincial and demographic overview: The number of beneficiaries more than doubles in many large centres in the West and Ontario
EI data by sub-provincial region, sex and age are not seasonally adjusted and, therefore, should only be compared on a year-over-year basis.

Between May 2008 and May 2009, the number of people receiving regular EI benefits increased in all census metropolitan areas (see map).

The number of regular beneficiaries more than tripled in virtually all of Alberta's large centres from May 2008 to May 2009. Over that period, the number of beneficiaries in Calgary increased from 4,100 to 18,200, and in Edmonton, from 4,300 to 16,000.

Employment in Alberta has declined in a number of industries since the start of the current labour market downturn, with the largest decreases in manufacturing; construction; retail and wholesale trade; professional, scientific and technical services; and the natural resources sector.

There were increases in the number of beneficiaries in all large centres in British Columbia, with the number of beneficiaries more than tripling in Cranbrook and Kelowna, and more than doubling in several others. In Victoria, 3,800 people received regular EI benefits in May, up 2,500 from 12 months earlier, while in Vancouver, the number of beneficiaries rose by 21,300 to 34,500.

Employment in British Columbia over that period fell mostly in construction; manufacturing; and finance, insurance, real estate and leasing.

In Saskatchewan, the number of regular beneficiaries more than doubled to 1,900 in Saskatoon. There were also large percentage increases in the number of beneficiaries over the same period in Swift Current and Moose Jaw. In Regina, 1,200 people received regular benefits in May 2009, up 600 from 12 months earlier.

In Ontario, the number of regular beneficiaries doubled or more than doubled in 20 of the 41 large centres from May 2008 to May 2009. Over the same period, there were substantial employment losses in the province, with manufacturing accounting for nearly two-thirds of the decline.

In the southwestern part of Ontario, the number of beneficiaries more than tripled in Leamington, Windsor and Guelph. In Toronto, the number of beneficiaries rose from 46,200 to 96,100.

More youth receiving EI benefits
In May, the year-over-year percentage increase in the number of people receiving regular EI benefits was highest for youths under 25 (+94.0%), followed by people 25 to 54 (+71.3%) and those 55 and over (+60.2%). Since the start of the labour market downturn last autumn, young people have experienced the largest percentage decline in employment.

From May 2008 to May 2009, the rate of increase in the number of persons receiving regular benefits was much higher among men (+84.9%) than among women (+49.3%). The labour market downturn has affected both men and women. However, the rate of employment decline since last October has been greater for men.

Claims reach a new high

To receive EI benefits, individuals must first submit a claim. Statistics on claims cover the whole month and provide an indication of the number of people who could become beneficiaries.

Following two months of small declines, the number of initial and renewal claims received rose 5.2% in May to 332,800. This is the highest number of claims received since comparable data became available in 1997. Every month since December 2008, the number of claims received has been above the previous high of 267,600 reached in October 2001.

Claims increased in every province and territory in May, with the largest percentage increases in Alberta (+9.7%), Prince Edward Island (+8.8%), Manitoba (+8.0%) and Saskatchewan (+6.3%).

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