New Brunswick

Youth EI claims in New Brunswick up 31% over last year

Almost all new claims for employment insurance benefits in New Brunswick are coming from the province's youngest would-be workers, according to Statistics Canada.

Changes seem to coincide with the introduction of new employment insurance regulations

Service Canada documents at an Ottawa centre outline employment insurance options in 2015. (Sean Kilpatrick/Canadian Press)

Almost all new claims for employment insurance benefits in New Brunswick are coming from the province's youngest would-be workers, according to Statistics Canada.

The overall number of New Brunswickers filing for federal EI benefits increased five per cent over 2015.

But among those 15 to 24 years old, the increase in EI recipients was 31 per cent higher this October than in October 2015.

Gordon Song, a Statistics Canada analyst, said he believes the increase likely has to do with fact that it's now easier to apply for and receive insurance.

"It's difficult to say since it's hard to pinpoint exactly," he said, "but I would say that there is some relation between what we've observed in the recent months for that age group and the policy changes."

Policy changes

One of the changes was a reduction in the number of hours people have to work before they become eligible for benefits

"The increase is coming in the recent months, beginning from June to July-ish, and this seems to coincide with the EI changes that came into effect in July of 2016," he said.

Song also said it's possible that the increase is due to a higher than average percentage of young people working in the sales and services sector, since that field seems to have more claims than others.

Those theories are lent validity by the fact the unemployment rate for the same period has remained steady over the last year, going from 13.2 per cent last October to 13 per cent this October.

'It's frustrating'

Terry Ryder was laid off in July and is on employment insurance (Terry Ryder)
Terry Ryder lives in Cumberland Bay, a small Queens County community where there isn't much work other than seasonal or minimum wage jobs, and said he was happy to land a permanent job.

But then the company he worked for closed because of the owner's health problems and Ryder was laid off in July.

Once again, he was left relying on employment assistance to try to make ends meet.

"It's frustrating because, like me, for example, I was making almost $900 a week, versus on EI, every two weeks, I'm only getting $802."

That is consistent with EI's benefits calculator, which awards eligible claimants up to 55 per cent of their regular earnings. But even so, it's hard to make ends meet, Ryder said.

 "My girlfriend is working at a daycare, and if it wasn't for her, I'd be legit screwed."

At 32, Ryder is a little older than all the new EI claimants, but he shares a story with them: it's hard to find a full-time permanent job.

"I come from a small place, and everybody works seasonal because basically that's all there is, and minimum wage jobs," he said.