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History of Unemployment Insurance in Canada

The Unemployment Insurance Act was first proclaimed in 1940 under the Liberal government of Mackenzie King.  Since then, the Act has undergone many legislative changes in both its coverage and administration. 

The original scheme excluded many occupations and workers, covering only 42% of the Canadian labour force in its first year of operation.  Successive amendments throughout the next three decades would see more and more occupations brought under the scheme, eventually hitting a record high of over 90% labour force coverage in the 1970s. 

The 1970’s represent the height of the program in terms of coverage, benefits, and eligibility. In 1971, the Unemployment Insurance Act (Bill C-229) was enacted. The new program expanded coverage and benefits and included special benefits for those unable to work due to illness or maternity.

Unfortunately, the 1980’s and 1990’s have brought many cutbacks to the program.  In 1996, Parliament proclaimed the new Employment Insurance Act, which brought many changes, including the change from a weeks-based to an hours-based system. As a consequence these changes, by 2003 only 44% of unemployed workers were in receipt of benefits.

The Community Unemployed Help Centre has been committed over the years to opposing the cutbacks and advocating for a program that better meets the needs of unemployed workers.

To learn more about the Centre’s role in advocating for a better EI program, please see the Making EI Better section of this website.  For a more detailed chronology of Unemployment Insurance over the years, please click here.

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