42,000 seasonal workers in Atlantic provinces, Quebec eligible for employment insurance top-up

The federal government says 7,700 seasonal workers in Nova Scotia are eligible for a top-up in employment insurance benefits worth a total of $12.5 million due to the latest tweak in the program.

Pilot project 22 — as it is called — will be available to 42,000 eligible seasonal workers, all but 100 in Quebec and Atlantic Canada.

Documents posted Wednesday by Employment and Social Development Canada provide more detail on a measure announced last month to offer up to four additional weeks of EI regular benefits for eligible claims filed by September 2024.

The department is trying to close an "income gap" that arises when claimants exhaust EI benefits before seasonal work resumes. A situation oddly exacerbated this year because of falling unemployment rates in seven of 13 employment insurance economic regions, including both EI regions in Nova Scotia.

Long-standing rules often mean when regional unemployment rates fall, so do the number of weeks eligible to receive benefits, reflecting an improved labour market.

Disasters shut down work

Good news for many, but not for some seasonal workers in 2023 whose employment was shortened by natural disasters, supply chain issues and market fluctuations.

"For seasonal workers who rely on EI support to help them get through recurring periods of unemployment, the sudden and atypical decrease in the number of weeks of benefit entitlement due to lower unemployment rates can be challenging, especially if they reside in communities which are largely dependent on seasonal industries, with limited work available between seasons," the department said in an analysis accompanying amended regulations.

Unemployment rate falls in Nova Scotia

From September 2022 to September 2023 the unemployment rate fell in eastern Nova Scotia from 11.3 per cent to 10.7 percent and in western Nova Scotia from 7.5 per cent to 5.6 per cent.

Employment and Social Development Canada did not say how many weeks of benefits would be eliminated by the falling unemployment rate in Nova Scotia. However, its analysis said a 2.8 per cent drop in the unemployment rate in Newfoundland Labrador would result in up to six fewer weeks of regular benefit entitlement compared to those who had a claim established in September 2022.

Eligibility rules today

The four-week top up does not alter basic criteria: individuals need between 420 and 700 hours of insurable employment to qualify and are entitled to receive between 14 and 45 weeks of EI regular benefits depending on the unemployment rate in their region and accumulated hours.

Each week of additional benefits is worth on average $480 the analysis stated.

Reaction in N.S.

"Some people will work less because of that because now they can stay on claim longer," says Fred Bergman, senior policy analyst with the Atlantic Economic Council, an independent research organization.

"But if we're trying to close that income gap, it's important to address that because if you take away those additional weeks of benefits, that does not guarantee that they're going to find work."

The analysis notes some experts consulted by the federal government are concerned, Bergman told CBC News Wednesday.

The analysis posted in the Canada Gazette noted that some experts consulted by the federal government are concerned "EI is limiting productivity and economic development in areas with highly seasonal regional economies and called for incremental changes toward less regional EI policies."

The Progressive Conservative Nova Scotia government endorsed the top-up Wednesday.

"The Department of Labour, Skills and Immigration has been consulted on changes to the EI fund, and we are supportive of this federal government initiative to better support individuals during income gaps," spokesperson Monica MacLean said in a statement.

Danny Cavanagh, president of the Nova Scotia Federation of Labour, called it a good first step.

"It's better than nothing of course, but we still believe that it doesn't go far enough; that seasonal workers are going to need a lot of help this winter. People still have housing needs, they still need an income."

Who and how much

The four week top-up is expected to cost about $65 million.

Eligibility outside Nova Scotia breaks down this way:

• 5,600 seasonal workers in Newfoundland and Labrador are eligible for at least one week of additional benefits worth $8.9 million.
• 2,800 in P.E.I. are eligible for $4.5 million.
• 5,900 in New Brunswick are eligible for $9 million. 
• 19,000 seasonal workers in Quebec are eligible for $30 million.