EI Coverage

Since the Employment Insurance Act was passed into law in 1999, fewer unemployed workers receive EI benefits.  Annual data continues to show that the percentage of unemployed workers who actually obtain benefits runs in the range of 40%.  With fewer workers obtaining EI, the federal government has collected far more in premiums than they paid out in benefits.  Although the excess of premiums over expenditures is often referred to as the EI surplus, the federal government, in order to balance its budgets, has used that surplus.  Since 1999 Auditor General Sheila Fraser has criticized the federal government in her annual reports on two counts; the surplus is far greater than what is needed and secondly, the government has failed to observe the intent of the EI Act and that is to provide income support for unemployed workers.  While the so-called EI surplus now exceeds $54 Billion, the federal government has neither announced plans to repay the borrowed monies, nor its intention to restore benefit entitlement to the majority of unemployed workers who have failed to obtain EI benefits.