Here is my analysis of employment including the support programs.

1. Unemployment Insurance –
Canada
PAUL YOUNG CPA CGA
AUGUST 21, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 World Ranking / EI
 EI Program
 Unemployment Rates / Urban Areas
 EI Program /Actuary
 CERB Payout
 July 2020 / Employment
 EI Program (Issues and Concerns)

4. EI Program
 Rate % 1.58 and the maximum deduction $856.36 (Employer Max - $1,198.90) -
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-
contributions/employment-insurance-ei/ei-premium-rates-maximums.html
 Eligibility - You will need between 420 and 700 hours of insurable employment based on the
unemployment rate in your area during the qualifying period to qualify for regular benefits: -
https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/eligibility.html
 You may not be entitled for benefits:
 if you voluntarily left your job without just cause
 if you were dismissed for misconduct
 if you are unemployed because you are directly participating in a labor dispute (for example, a strike, lockout or other type
of conflict)
 during a period of leave that compensates for a period in which you worked under an agreement with your employer, more
hours than are normally worked in full-time employment.

5. Unemployment and Income by Urban
Areas
• Cities with natural resources development and head offices tend to have the highest income
https://www.kake.com/story/42335851/places-with-the-highest-income-in-canada
• Maritime provinces were not hit that hard in terms of job losses. Labor markets in major Canadian cities,
such as Montreal, Vancouver, Toronto and Calgary were hit the hardest by the coronavirus pandemic. -
https://www.cicnews.com/2020/07/atlantic-canada-shows-smallest-decline-in-unemployment-due-to-
coronavirus-0715017.html#gs.bpie22
• London, Ontario has the highest unemployment in 20+ years - https://theprovince.com/business/local-
business/londons-june-jobless-rate-worst-in-nearly-20-years-bucking-provincial-trend/wcm/0d5c75c1-
9b2f-4e15-9aa6-bb5222eb3ab4
• Youth Unemployment - https://www.corporateknights.com/channels/leadership/future-proofing-
economy-investing-canadas-youth-covid-19-15948122/

6. Actuary / Study – EI Program
• COVID19 has led to payouts about $1.5B higher payouts – Fiscal Monitor – July 31, 2020 -
https://www.canada.ca/en/department-finance/services/publications/fiscal-monitor/2020/04.html

7. CERB / Payouts
Source https://www.canada.ca/en/department-
finance/services/publications/fiscal-monitor/2020/04.html
• CERB is being eliminated -
https://betakit.com/trudeau-reveals-plans-
to-end-cerb-transition-recipients-to-ei-in-
september/
• Trudeau noted the additional benefit would
provide works access to training as well as
the ability to work more hours and earn
more money while receiving the benefit.
There will also be a sickness and caregivers
benefit for individuals who contract COVID-
19. “We intend to cover every Canadian
who is looking for work with a better, 21st-
century EI system. That is our goal,” Trudeau
said, noting the government would not
raise EI premiums during this time
• EI fund has about $2B surplus as such the
fund will need to be managed to ensure
there is no deficit
• Any deficit with EI would result in higher
premiums, cuts to benefits and other
program changes

8. Employment – July 2020
Source – Stats Canada
https://www.cp24.com/news/liberals-plan-to-use-regulations-to-create-income-support-after-cerb-winds-down-1.5071083
This was the liberal goal under @jyduclos @JustinTrudeau @telfordk which was to build a society dependent on their govt!
GDP
https://www.slideshare.net/paulyoungcga/gdp-canada-real-truth-august-2020
GI
https://www.slideshare.net/paulyoungcga/should-canada-moved-to-guaratee-income

9. Job
Recovery
– July
2020
SOURCE – STATS CANADA
• Hospitality likely see many challenges - https://www.slideshare.net/paulyoungcga/government-policy-analysis-
what-is-next-for-the-hospitality-sector
• Freeland’s new green agenda will make job quality even worse – GDP was tanking before COVID19 -
https://www.slideshare.net/paulyoungcga/july-2019-canada-gdp-analysis-and-commentary

10. EI Program and Employment
 EI program for years has been in a surplus state. The EI program should have been restructured years ago as better way to
manage both the costs and benefits - https://www.canada.ca/en/employment-social-development/programs/ei/ei-
list/reports/premium/rates2020.html
 Could the government be pushing guarantee income - https://www.slideshare.net/paulyoungcga/policy-analysis-guarantee-
income
 There is likely a decrease of at least 500K jobs
 EI training would need to be align with jobs of the future and tomorrow - https://www.slideshare.net/paulyoungcga/automation-
and-human-capital-management-human-resources
 Many of the new jobs required a lot of training and education, i.e. IT, Medical, skills trades, etc.
 Automation for both businesses and government will change the demand for labor within their segments -
https://www.slideshare.net/paulyoungcga/business-automation-whats-next
 All levels of governments will need to focus on getting goods to market - https://www.slideshare.net/paulyoungcga/gdp-canada-may-2020