Canada. Number of Employment Insurance Beneficiaries Up

In June, 816,600 people received regular Employment Insurance (EI) benefits, up 5.1% (+39,500) from a month earlier. Provincially, the largest percentage increases occurred in Alberta, British Columbia and Newfoundland and Labrador.

During the second quarter of 2009, the number of beneficiaries increased 18.8%, down from the growth rate (+25.2%) during the first quarter. This trend is similar to that shown by the Labour Force Survey, which recorded a rate of decline in employment in the second quarter that was much reduced from the decline in the first three months of the year.

Since the labour market began to deteriorate last autumn, the number of people receiving EI benefits has risen sharply. Compared with October 2008, the number of people on EI has increased 63.2%, or 316,300.

Initial and renewal claims received fell in June by 7.9% (-26,100). Declines occurred in all provinces and territories, except Ontario, where there was a slight increase.

Between June 2008 and June 2009, the number of people receiving regular EI benefits increased in all census metropolitan areas (see map). In Alberta, pronounced increases occurred in many large centres, particularly Calgary and Edmonton. Ontario was also hard hit, especially the southwestern part of the province, with sharp year-over-year increases in Windsor, Kitchener, Hamilton, St. Catharines–Niagara and London.

The West and Ontario experience large increases in the number of beneficiaries

Since the employment peak of last October, the number of regular EI beneficiaries has risen by 63.2%, or 316,300. Increases occurred in all provinces and territories.

Between October 2008 and June 2009, the largest percentage growth in the number of regular beneficiaries occurred in Alberta, followed by British Columbia, Ontario and Saskatchewan.

In Alberta, the number of regular EI beneficiaries rose by 9.4% to 61,100 in June. Since the labour market started to deteriorate last October, the number of beneficiaries in this province has risen every month, bringing the total increase to 42,900. During the same period, the unemployment rate in the province climbed from 3.7% to 6.8%, but remained well below the national rate of 8.6% in June.

In British Columbia, the number of people receiving benefits increased by 5.5%, or 4,900 in June, a similar rate of increase as in May. Since October, the number of people receiving regular EI benefits in the province has doubled to 93,500.

In Ontario, the number of regular EI beneficiaries increased by 3.0% to 283,000 in June, much slower than the 14.3% increase during the previous month. Since October, the number of regular beneficiaries has increased by 83.0% (+128,400).

In Saskatchewan, the number of regular beneficiaries rose 2.1% in June, its slowest rate of growth since the start of the downturn. From October to June, the number of beneficiaries rose by 5,700 to 14,200. Despite this increase, the unemployment rate in Saskatchewan was the lowest in the country in June.

Rates of growth in beneficiaries in the Atlantic provinces, Quebec and Manitoba were slower than the national average of 63.2% between October and June.

Sub-provincial and demographic overview

Sharp year-over-year percentage increases in the number of beneficiaries in large centres in the West and Ontario
EI data by sub-provincial region, sex and age are not seasonally adjusted. They are therefore compared on a year-over-year basis.

The largest percentage increases in the number of regular beneficiaries from June 2008 to June 2009 occurred in the large centres of Alberta. In Calgary, the number of beneficiaries rose from 4,000 to 19,000 over the 12-month period. At the same time, the number of Edmontonians receiving regular benefits rose from 4,000 to 16,300.

These increases coincided with employment losses for Alberta. Compared with June last year, there were fewer people working in professional, scientific and technical services; construction; manufacturing; retail and wholesale trade as well as support activities in mining, oil and gas extraction.

In British Columbia, the number of regular EI beneficiaries more than doubled in many large centres. In Victoria, 3,800 people received regular benefits in June 2009, up 2,400 from a year earlier, while in Vancouver, 34,600 beneficiaries collected regular benefits in June 2009, up by 21,800. These increases coincided with a substantial rise in the province's unemployment rate during the year from 4.5% to 8.1%. The largest employment losses for the province over this period occurred in manufacturing, transportation and warehousing, as well as in construction.

In Saskatoon, the number of regular beneficiaries more than doubled to 1,800 from June 2008 to June 2009. Large percentage increases in the number of beneficiaries over the same period were also observed in Moose Jaw and North Battleford.

In Ontario, the number of regular beneficiaries also more than doubled in many large centres from June 2008 to June 2009. The southwestern part of Ontario was particularly affected as large employment losses over the same period occurred in the province's manufacturing sector, especially in motor vehicles and parts. In Windsor, the number of beneficiaries increased from 4,500 to 14,200 between June 2008 and June 2009. In Oshawa, the number rose from 3,300 to 7,000, and in London, it went from 4,200 to 9,400.

In Toronto, the number of beneficiaries more than doubled from 45,100 in June 2008 to 95,800 in June 2009. In Hamilton, the number rose from 5,400 to 12,300 and it went from 3,900 to 8,800 in St. Catharines–Niagara.

Fastest rate of growth among young people

In June 2009, the year-over-year percentage increase in the number of youths under 25 years old receiving regular EI benefits continued to rise sharply (+108.6%). The current labour market downturn has had a substantial impact on youths, as their unemployment rate over the period increased more than for any other age group, advancing from 12.2% in June 2008 to 15.9% in June 2009.

The growth in the number of beneficiaries aged 25 to 54 and 55 and over increased at a slower pace over the same period, up 81.6% and 67.5%, respectively.

Among men, the number of beneficiaries doubled during this year-long period, nearly twice the growth rate of 55.3% among women. Employment losses since June 2008 have been greater for men.

Number of claims received drops in June

To receive EI benefits, individuals must first submit a claim. These provide an indication of the number of people who could become beneficiaries.

In June, the number of initial and renewal claims received fell 7.9% to 302,200, the largest decline since the start of the labour market downturn. Claims fell in all provinces and territories, except for a slight 0.9% increase in Ontario. Declines were most notable in Quebec (-15.7%), Manitoba (-13.3%) and Alberta (-12.7%).

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