Canada sees a continued uptick in Employment Insurance beneficiaries as economic challenges linger.
In July 2024, the number of Canadians receiving regular Employment Insurance (EI) benefits reached 488,510, marking a 2.2% increase compared to the previous month. This is the third consecutive month of rising EI beneficiaries, according to newly released figures from Statistics Canada. The ongoing upward trend in EI claims comes at a time when the national unemployment rate is seeing slight but steady increases, reflecting broader economic challenges faced by the country.
The increase of 11,000 regular EI beneficiaries in July reflects a growing demand for support among Canadians. This monthly increase follows a period of relative stability in EI numbers from September 2023 until April 2024, after which the demand began rising consistently. On a year-over-year basis, the number of EI recipients in July 2024 is up by 10%, an addition of 44,000 people.
Labour Force Survey data paints a more comprehensive picture of the job market during this period. Unemployment in Canada rose by 0.3 percentage points between May and July, settling at 6.4%. More people are actively searching for work, but overall employment remains stagnant. In comparison to July 2023, the unemployment rate is up by 0.9 percentage points, with the number of unemployed people who have been laid off increasing by 12.2%, or 66,000 more individuals.
The data reveals that specific demographic groups are particularly impacted by the growing need for EI support. The number of regular EI beneficiaries increased among both men and women across several age categories.
For men aged 55 and older, there was a 3.1% rise in EI recipients, representing an additional 2,500 individuals. Core-aged men (those between 25 and 54 years old) also saw a 1.7% increase (+3,100), while young men aged 15 to 24 remained relatively unchanged. Similarly, the number of women receiving EI benefits increased, particularly among core-aged women, where there was a 3.1% rise (+3,700). Older women (55+) experienced a smaller but still significant increase of 2.2% (+1,100), while young women aged 15 to 24 saw a modest 1.6% rise (+200).
Looking over the past year, all major demographic groups experienced growth in EI recipients, led by core-aged women with a 13.1% increase, representing an additional 14,000 beneficiaries. Men aged 55 and older saw a 10.1% rise, while core-aged men and young men saw increases of 9.8% and 4.7%, respectively. Young women, while a smaller group overall, experienced a 7.4% rise in regular EI recipients.
Geographically, the increases in EI recipients were not evenly spread across Canada, with seven provinces reporting growth. New Brunswick saw the largest proportional increase, with a 23.7% jump in the number of regular EI beneficiaries, translating to 5,700 additional recipients. Notably, nearly one-third of the new EI claimants in New Brunswick previously worked in trades, transport, and equipment operations.
Alberta also experienced a notable 4.8% increase (+2,400) in EI beneficiaries in July, reversing declines seen in the previous five months. The increase was particularly concentrated among older workers aged 55 and above and core-aged recipients. Over the past year, Alberta saw a 15.7% increase in EI recipients.
Saskatchewan reported a 3.2% increase in EI beneficiaries (+500), with most of the rise seen among core-aged workers. On a yearly basis, the number of EI recipients in the province increased by 9.7%.
Ontario, Canada’s most populous province, saw a 3% increase in EI beneficiaries in July, adding 4,500 recipients. The rise was particularly sharp among core-aged women, who experienced a 7.6% increase. Year-over-year, Ontario’s EI recipients have surged by 24.2%, accounting for nearly 70% of the total national increase.
In contrast, Quebec was the only province to report a decline in EI beneficiaries, with a 4.2% drop (-4,800), following two months of increases.
Certain industries are experiencing more significant job losses and consequently higher EI claims. Over the past year, the number of regular EI beneficiaries has increased in nearly all broad occupational categories, except for two: art, culture, recreation, and sport (-13.5%) and natural resources, agriculture, and related production (-6.6%).
The largest increase occurred in the manufacturing and utilities sector, where the number of EI recipients surged by 25.8%, or 8,500 individuals. This rise was driven primarily by those who last worked in occupations as machine operators, assemblers, and inspectors in processing and manufacturing, particularly in Ontario. EI beneficiaries in these roles increased by a staggering 44.3%, with 6,400 more individuals receiving benefits compared to the previous year.
Additionally, natural and applied sciences occupations saw a 24% increase in EI recipients (+6,700), highlighting a significant shift in employment trends in technical fields.
The consistent rise in Employment Insurance beneficiaries, coupled with growing unemployment, signals potential challenges ahead for the Canadian economy. While employment levels have remained steady, the increase in job searches and layoffs suggests a cooling labour market, with certain provinces and industries being hit harder than others.
As the labour market remains under pressure, further developments in both the economy and unemployment rates will be closely watched in the months ahead.