An Employment Insurance system for the 21st century: Lesson 1, Big shocks matter

Canadian workers and their families have been rocked by three major shocks in just barely more than a decade, and all three times the Employment Insurance program has been found wanting. What reforms do big shocks call for? A big shock is a big change, and so the eligibility for and generosity of Employment Insurance benefits should in some part be determined by real-time changes in employment, not just the level.


The 2020 Speech from the Throne boldly claims that “This pandemic has shown that Canada needs an [Employment Insurance] system for the 21st century, including for the self-employed and those in the gig economy.”

That is a tall order, a major overhaul of a complicated program in the span of the next couple of months, with little or virtually no consultation of stakeholders or engagement of experts outside of the government.

Will Minister Qualtrough, her cabinet colleagues, and of course the Prime Minister, get it right? After all the need for EI reform has long been recognized, with lessons learned well before the onset of COVID19, but always politically convenient to put off.

What does the 21st century hold for us? Well, we’ve seen a good deal during its first 20 years, and some big lessons are pretty clear. These should be used to judge what the government has in store. This post discusses the first of three lessons and the reforms they call for: Lesson 1, Big shocks matter and need a response in real time

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