Employment Insurance

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In July, 787,700 people received regular Employment Insurance (EI) benefits, down by 31,500, or 3.8%, from a month earlier, the first decrease in 11 months. The largest declines occurred in Ontario, Quebec and Alberta.

There were 274,700 initial and renewal claims received in July, down by 25,500, or 8.5%, following a similar decrease the previous month.

Despite the decline in July, the number of regular beneficiaries was still 287,400, or 57.4%, above the level in October 2008.

EI statistics provide a unique insight on what parts of the country are being affected by the current economic situation. In the last 12 months, the number of people receiving regular EI benefits rose in all census metropolitan areas (see map). The largest increases were in Calgary, Edmonton, Greater Sudbury, Vancouver, Kitchener, Victoria and Abbotsford–Mission, where the number of beneficiaries more than doubled.

Fewer beneficiaries in July in most provinces

In July, the number of regular EI beneficiaries declined by 31,500, with the largest decreases in Ontario, Quebec and Alberta. This was the first decline in these three provinces since the labour market started to deteriorate in the fall of 2008.

In Ontario, the number of regular EI beneficiaries fell by 5.9% (-16,800) to 266,800 in July. From October to June, the number of beneficiaries had increased every month, with monthly increases averaging 16,100.

In Quebec, the number of beneficiaries declined 5.3% (-11,000) in July, when 197,700 people received benefits. From October to May, the number of beneficiaries had increased on average each month by 7,200 people, while there had been no change in June.

In Alberta, the number of regular EI beneficiaries fell 4.4% (-2,700) to 59,500 in July. From October to June, the number of beneficiaries in this province had risen each month, with increases averaging 5,500.

The only province to record a notable increase was Newfoundland and Labrador, where 47,700 people received benefits in July, up by 2,900, or 6.5%, from June.

Sub-provincial and demographic overview

Sharp year-over-year increases in the number of beneficiaries in large centres in the West and Ontario

EI data by sub-provincial region, sex and age are not seasonally adjusted. They are, therefore, compared on a year-over-year basis.

Although there was a one-month decrease in the number of beneficiaries in July nationwide, the number of beneficiaries remained substantially higher compared with July 2008.

The largest percentage increases in the number of regular beneficiaries from July 2008 to July 2009 occurred in the large centres of Alberta. In Calgary, the number of beneficiaries rose from 5,100 to 21,200 over the 12-month period. At the same time, the number of people in Edmonton receiving benefits rose from 6,000 to 18,500.

These increases coincided with employment losses in Alberta. Compared with July 2008, there were fewer people working in manufacturing; construction; retail and wholesale trade; professional, scientific and technical services; and the oil and gas sector.

In British Columbia, the number of regular EI beneficiaries more than doubled in many large centres. In Vancouver, 37,500 people received benefits in July, up 22,000 from July 2008. In Victoria, 4,300 beneficiaries collected benefits in July, up by 2,300. The largest employment losses for the province over this period occurred in manufacturing, construction, as well as transportation and warehousing.

In Ontario, the number of beneficiaries more than doubled in 6 of the 41 large centres of that province from July 2008 to July 2009. Over that period, employment losses occurred in a number of industries, including manufacturing, construction, retail and wholesale trade, accommodation and food services, and transport and warehousing.

In the southern part of Ontario, the number of beneficiaries in Windsor, Toronto, Hamilton, Leamington, Chatham–Kent, St. Catharines–Niagara and Oshawa all grew in July at a slower pace than that of the 12-month period ending in June. In Windsor, the number of beneficiaries rose by 1,800 to 10,900 in the 12-month period ending in July 2009, a smaller increase than the growth of 9,800 for the 12-month period ending in June. In Toronto, the number of beneficiaries increased by 48,100 to 107,800 in July 2009, a smaller increase than the growth of 50,700 in the previous 12-month period. The southern part of Ontario was particularly affected by large employment losses in the province's manufacturing sector.

In Greater Sudbury, the number of beneficiaries rose from 2,300 to 5,700, the fastest rate of increase in the province, as there were employment losses over that period in the natural resources sector.

In Quebec, the number of beneficiaries in Montréal, Québec, Sherbrooke, Trois-Rivières, and Gatineau rose in July at a slower pace than that observed in the 12-month period ending in June.

In Montréal, the number of beneficiaries increased by 20,200 to 73,700 for the 12-month period ending in July 2009, a smaller increase than the growth of 21,500 for the 12-month period ending in June. In the census metropolitan area of Québec, the number of beneficiaries increased by 2,100 to 11,300 in July 2009, a smaller increase than the growth of 2,600 for the 12-month period ending in June.

In Labrador City, the number of beneficiaries doubled from 290 to 600, the fastest increase of all the centres in Newfoundland and Labrador.

Fastest rate of growth among young men

Youths and men have been most affected by the labour market downturn. The number of young men aged under 25 receiving regular benefits more than doubled (+122%) over 12 months, reaching 52,000 in July. Over the same period, the number of male beneficiaries aged 25 to 54 increased 86.4% to 302,900, while it increased 66.1% to 76,000 for men aged 55 and older.

In the last 12 month, the rate of increase in the number of female regular beneficiaries was lower for all age groups. The number of male beneficiaries increased 85.9% during this year-long period, more than twice the growth rate of 32.5% for women. Over the period, overall employment declined by 238,000 among men, nearly four times the drop of 64,000 among women.

In July, the number of youths aged under 25 receiving EI benefits nearly doubled (+98.6%) on a year-over-year basis. The current labour market downturn has had a substantial impact on youths, as their unemployment rate over the period increased more than for any other age group, rising from 11.0 % in July 2008 to 16.2% in July 2009.

Number of claims received down for the second consecutive month

To receive EI benefits, individuals must first submit a claim. These provide an indication of the number of people who could become beneficiaries.

Initial and renewal claims received declined 8.5% (-25,500) in July, following a similar decrease in June. Most of the decline came from Ontario, where 92,400 claims were received, 20,900 fewer than in the previous month. In British Columbia, 32,200 claims were received, down 4,000 from the previous month.

In Quebec, the number of claims increased by 6,500, after a decline of 12,200 in June. In Newfoundland and Labrador, the number of claims rose by 800, following a decline of 1,100 in June.

Available on CANSIM: tables 276-0001 to 276-0006, 276-0009, 276-0011, 276-0015 and 276-0016.

Definitions, data sources and methods: survey number 2604.

Data tables are also now available online. From the By subject module of our website, choose Labour.

Data on Employment Insurance for August will be released on October 27.

A set of maps, Employment Insurance Statistics Maps, July 2009 (73-002-X, free), is now available online. The maps show percent changes in the number of people receiving regular EI benefits for all census metropolitan areas and census agglomerations in Canada. From the Publications module of our website, under All subjects, choose Labour.

For more information, or to order data, contact Client Services (toll-free 1-866-873-8788; 613-951-4090; labour@statcan.gc.ca). To enquire about the concepts, methods or data quality of this release, contact Dominique Pérusse (613-951-4064) or Vincent Ferrao (613-951-4750), Labour Statistics Division.