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Unemployment in Canada

Unemployment in Canada Overview

Unemployment in Canada Overview

Unemployment in Canada Background
Canada unemployment involves out of work Canadians submitting jobless claims so that they can obtain Employment Insurance, which had been known as Unemployment Insurance until 1996, when the program was renamed due to political considerations. Jobless claims by out of work seasonal workers are easier for Canada Unemployment offices to handle since Canada unemployment eligibility is determined by hours worked, not weeks.


Unemployment Insurance Canada
The issue of Unemployment in Canada was slowly handled due to Unemployment insurance in Canada during the Great Depression being ruled a provincial issue, and thus unconstitutional for the federal government to administer. 


Canada Unemployment Rate

The Canada unemployment rate remains stable between February 2008 and September 2010. The record high for Canada unemployment rate is thirteen point one percent in December 1982, although the record low, 5.2 percent has been reached several times. Payments of unemployment insurance in Ontario is due to the devastation and sharp downturn experienced in the automotive and aeronautics industries, which are prominent in southern Ontario and Quebec.

Canada Unemployment

Canada UnemploymentCanada unemployment concerns are very similar to the issues encountered by their out of work American neighbors to their south. 

In Canada, unemployment benefits are known as Employment Insurance, after being known as Unemployment Insurance until 1996, when it was renamed to address perceived negative connotations. Unlike in America, however, Canada unemployment programs are funded by premiums taken out of Canadian paychecks, premiums that can only be accessed in the event a Canadian worker finds himself or herself out of work and has to submit jobless claims. These premiums are matched by an employer contribution of 1.4 times the value of the employee premium. Since 1990, the Canadian government has not matched these either of these sources of contributions.

More than half of the jobless claims are filed by out of work individuals in Ontario and the Western provinces. Employment Insurance is especially important in the Atlantic Provinces which have the highest rates of Canada unemployment. In these Atlantic Provinces the Canada unemployment program is especially important due to the seasonal nature of many of the industries, such as fishing, forestry, or tourism. Accordingly, Canada Unemployment laws have been written to allow fishermen, for example, to successfully submit jobless claims while they are out of work. 

The duration of jobless claims are affected by a person’s previous salary, how long they were working for before submitting the jobless claims, and the number of individuals out of work in their area.