In May 2024, Canada’s Employment Insurance (EI) landscape saw notable changes, with 464,000 citizens receiving regular EI benefits. This figure marks a 1.9% increase from April, equating to 8,700 more beneficiaries. This uptick disrupted a period of stability in the number of EI recipients, which had remained relatively unchanged since September 2023.
On an annual basis, the number of regular EI beneficiaries grew by 14.0%, or 57,000 individuals, compared to May 2023. Concurrently, the Labour Force Survey reported little change in employment levels for May, with a slight rise in the unemployment rate to 6.2%, up by 0.1 percentage points from the previous month and by 0.9 percentage points from the previous year.
A deeper dive into demographic data reveals varied trends among different age and gender groups. Young men (ages 15-24) experienced a significant 5.3% increase in EI recipients, reversing a decline in April. Men aged 55 and older, as well as those aged 25 to 54, also saw increases of 4.6% and 1.8%, respectively. These changes highlight a rebound for older men and a break in a three-month downward trend for core-aged men.
In contrast, young women saw a 2.5% decrease in EI beneficiaries. However, women aged 55 and older experienced a 1.4% increase, while core-aged women saw little change. Over the past year, the most substantial increases in EI recipients were among core-aged men (18.3%) and women (12.4%).
Examining EI trends at the provincial level reveals significant regional differences. Six provinces saw increases in regular EI beneficiaries in May. Saskatchewan led the way with an 8.5% increase, offsetting a previous decline. Quebec followed with a 5.9% rise, marking its third increase in four months. Notably, Saskatoon and Regina in Saskatchewan, and Montreal in Quebec, contributed significantly to these provincial increases.
Other provinces with notable increases included Prince Edward Island, Ontario, New Brunswick, and Nova Scotia. Conversely, Newfoundland and Labrador saw a third consecutive monthly decline, while Manitoba experienced its second consecutive decrease. Alberta and British Columbia saw minimal changes.
Across occupational categories, most saw year-over-year increases in EI beneficiaries. The largest proportional increase was among those in natural and applied sciences, which grew by 32.9%. Sales and service occupations also saw significant increases, particularly in customer service roles and support occupations.
In May 2024, trades, transport, and equipment operators comprised the largest share of EI beneficiaries at 34.2%, followed by those in sales and service, and business, finance, and administration occupations.
As the Canadian economy continues to evolve, monitoring the data will be crucial in ensuring that the EI system remains responsive to the needs of its beneficiaries. It provides valuable insights into the state of employment and the effectiveness of current support measures, guiding future policy decisions aimed at fostering economic stability and growth.