Canada's employment insurance system no longer serves the broader workforce as more people take up gig work or part-time jobs, says a new report from Food Banks Canada.
In its poverty report card released Monday, the organization said the labour market has shifted toward part-time, temporary and contract work, while EI only caters to a shrinking workforce that has stable, full-time work with a single employer.
Food Banks Canada chief executive Kirstin Beardsley said in a media statement the outdated EI system is one of the greatest threats to Canada's resiliency, as unemployment remains elevated and households struggle to keep up with the high cost of living.
The report suggests EI eligibility is at the heart of the issue. EI requires claimants to accumulate a set number of insurable hours within a fixed period.
The report says irregular hours, multiple jobs and contract work make qualifying for EI more difficult, even for those with consistent jobs.
That, in turn, excludes many workers who face greater income instability.
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EI, a federal program that bridges the financial gap for workers who are between jobs, pays about 55 per cent of average insurable weekly earnings. That means someone with an annual income of $68,900 would receive a maximum of $729 in EI per week.
Jobs Minister Patty Hajdu said in a statement through her office Monday that her department was reviewing the Food Banks Canada report with an eye to strengthening the social safety net.
Hajdu's office pointed to upcoming initiatives to support lower-income households, such as a top-up to the GST benefit, now the Canada Groceries and Essentials Benefit. Payments worth half the value of the annual benefit will start going out to eligible recipients on Friday, while temporarily higher quarterly payments start next month.
The Food Banks Canada report highlighted the groceries benefit as one program offering "cautious optimism," despite the challenge of food insecurity.
Hajdu's office also touched on recent reforms to improve access to EI, but the statement focused on giving flexibility to workers in industries targeted by U.S. tariffs.
"Canada's Government will continue to listen to Canadians and be responsive to their needs as we navigate uncertainty," the statement read.
