In June 2024, the number of Canadians receiving regular Employment Insurance (EI) benefits increased for the second straight month, reflecting ongoing challenges in the labor market as the unemployment rate also saw a slight rise.
In June 2024, the number of Canadians receiving regular Employment Insurance (EI) benefits rose to 474,000, marking a 1.3% increase from the previous month. This growth represents an addition of 6,000 new beneficiaries, following a similar uptick in May. Prior to these consecutive monthly increases, the number of EI recipients had remained relatively stable since September 2023.
Year-over-year data shows a more substantial increase, with 45,000 more Canadians (+10.4%) relying on EI benefits in June 2024 compared to the same month in 2023. This rise in beneficiaries coincides with a gradual increase in the national unemployment rate, which edged up by 0.2 percentage points in June, reaching 6.4%. The unemployment rate has risen by a full percentage point over the past year, highlighting the ongoing strain on the Canadian job market.
According to the Labour Force Survey, the total number of unemployed Canadians on layoff climbed to 519,000 in June, reflecting a 16.1% increase (+72,000) compared to June 2023.
Breaking down the numbers by demographic groups reveals that the rise in regular EI beneficiaries is not uniform across all sectors of the population. Core-aged men (those aged 25 to 54) saw the most significant increase in EI benefits, with a 2.1% rise in June, adding 3,800 new beneficiaries. This marks the second consecutive month of growth for this group. Similarly, women aged 55 and older experienced a 2.7% increase (+1,300) in June, continuing an upward trend from May.
On an annual basis, all major demographic groups reported increases in EI beneficiaries. Core-aged men led the way with a 12.8% increase (+21,000), followed by core-aged women, who saw a 10.5% rise (+11,000). The consistency of these increases across key age groups suggests broader underlying economic factors are at play, potentially linked to ongoing uncertainties in the job market and the impact of inflationary pressures.
Conversely, the number of regular EI beneficiaries among younger Canadians (aged 15 to 24) remained relatively stable, showing little change in June.
Geographically, the rise in EI beneficiaries was concentrated in four provinces: Newfoundland and Labrador, Quebec, Ontario, and British Columbia. Newfoundland and Labrador experienced the largest proportional increase, with a 2.7% rise in beneficiaries (+700) in June, following three consecutive months of declines. Quebec (+2.5%; +2,700) and Ontario (+1.7%; +2,600) also posted notable increases for the second consecutive month. In British Columbia, the number of EI recipients edged up by 1.3% (+600) in June, reversing a downward trend that had persisted since November 2023.
In contrast, Alberta and Prince Edward Island saw declines in EI beneficiaries. Alberta recorded a 1.7% decrease (-900), marking the fifth consecutive month of declining EI recipients. Prince Edward Island experienced a 1.4% drop (-100) in June, the third notable monthly decrease since the beginning of 2024.
On an occupational level, the increase in EI beneficiaries was most pronounced among those who last worked in the natural and applied sciences and related occupations. This group saw a 26.3% rise (+7,000) in EI recipients from June 2023 to June 2024, the largest proportional increase among all broad occupational categories.
The manufacturing and utilities sector also saw a significant rise in EI beneficiaries, with a 21.8% increase (+7,400) over the same period. Notably, machine operators, assemblers, and inspectors in processing, manufacturing, and printing experienced a 37.7% jump (+6,000) in EI recipients, with most of this increase concentrated in Ontario.
In contrast, the number of EI beneficiaries who last worked in natural resources, agriculture, and related production occupations declined by 7.2% (-2,300) over the past year.