Canada’s Employment Insurance (EI) data for December 2024 has brought attention to a nuanced landscape of unemployment benefits. While the total number of regular EI beneficiaries slightly declined, the trends within specific demographics and regions paint a more intricate picture of Canada’s workforce health.
In December 2024, the total number of Canadians receiving regular Employment Insurance benefits stood at 480,090, marking a minor drop of 0.4%, or approximately 1,900 individuals, compared to the previous month. When comparing this figure to the peak observed in August 2024, the decrease is slightly more pronounced at 3.1%, which equates to a reduction of 15,000 beneficiaries.
On the other hand, when viewed on an annual basis, the data tells a different story: the number of EI recipients was up by 2.6%, or 12,000 individuals, compared to December 2023. This uptick suggests that while there may have been a slight dip in the months following August, overall, the number of Canadians relying on EI benefits has seen an increase year-over-year.
Despite the slight dip in the number of regular EI claimants, December 2024 also saw a 0.4% increase in employment, adding 91,000 jobs to the Canadian workforce. This marks the second consecutive monthly rise, indicating a positive trend in the labor market.
However, alongside these employment gains, the unemployment rate also experienced a 0.2% decline, settling at 6.7%. On a year-over-year basis, the unemployment rate increased by 0.9%, suggesting a widening gap in the number of unemployed individuals compared to the previous year. Notably, the number of people laid off surged by 11%, with 569,000 individuals reporting layoffs in December 2024.
A closer look at the demographics reveals slight shifts in the number of EI recipients across age and gender groups. Among young men aged 15 to 24, the number of regular beneficiaries decreased by 1.5%, or 500 people, in December. However, this demographic still saw a year-over-year increase of 1.7%, or 500 additional young men receiving regular EI benefits compared to December 2023.
For core-aged women (25 to 54 years), the number of beneficiaries increased by 3.4%, or 3,900 people, while women aged 55 and older saw a 5.4% increase in EI claims, amounting to an additional 2,500 recipients. These figures suggest a rising reliance on EI among certain groups, particularly among older women and younger men, highlighting potential shifts in labor market dynamics and the need for tailored support programs.
Regionally, the number of EI recipients varied significantly, with some provinces seeing increases while others experienced declines. Quebec saw the largest decrease in regular beneficiaries, with a reduction of 2,900 claimants, marking the fourth consecutive month of declines in the province. In particular, men across several age groups in Quebec experienced the largest reductions, particularly those aged 55 and older.
In contrast, Alberta and Saskatchewan saw increases in the number of beneficiaries. Alberta’s count rose by 1.7%, adding 900 recipients, while Saskatchewan saw a modest increase of 1.2%, or 200 additional claimants. These changes reflect differing economic conditions across Canada’s provinces, with regions like Alberta and Saskatchewan experiencing employment growth in specific sectors that could explain the uptick in EI claims.
Interestingly, some occupation groups also saw more significant changes than others. The number of beneficiaries who had previously worked in business, finance, and administration increased by 8.9% compared to December 2023, adding 5,000 individuals to the regular EI rolls. Similarly, there was a rise in the number of claimants from natural and applied sciences, with an 11.6% increase in EI recipients from this sector, amounting to an additional 3,700 individuals.
On the other hand, the arts, culture, recreation, and sports sectors saw a decline in the number of beneficiaries, with a 7.1% decrease, or 1,100 fewer individuals relying on EI in December 2024. This trend suggests that sectors traditionally reliant on EI, like the arts, may be undergoing restructuring or stabilization, leading to fewer claims in these fields.