Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Tuesday June 16, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Employment, Workforce Development and Disability Inclusion Minister Carla Qualtrough responds to a question during a news conference Tuesday June 16, 2020 in Ottawa. THE CANADIAN PRESS/Adrian Wyld

Liberals look at filling EI gaps as some set to exhaust CERB aid, Qualtrough says

CERB, now budgeted at $60 billion, has paid out $43.51 billion to 8.41 million people as of June 4

Canada’s employment minister says federal officials are looking for ways to fill gaps in a key, but decades-old, safety net for unemployed workers to catch those left out from upcoming changes to pandemic-related aid.

Speaking to the Senate finance committee, Carla Qualtrough said policy discussions are ongoing about how to ensure the employment insurance system covers people as they transfer back to it from the Canada Emergency Response Benefit created in late March.

The $2,000-a-month CERB was put in place because officials believed the volume of jobless claims flooding EI would have crashed the decades-old system, which wasn’t designed to support as severe a drop in employment as what the country saw over March and April.

Nor did EI cover many of the three million people who lost their jobs as businesses were ordered closed to slow the spread of COVID-19, and some three million more who had their hours slashed.

“We are looking at how to ensure that as we transition people back to the employment insurance system that people are indeed covered,” Qualtrough said.

“Employment insurance has been shown to be ineffective in terms of this kind of crisis and in terms of actually reflecting the way people work now.”

The CERB, now budgeted at $60 billion, has paid out $43.51 billion to 8.41 million people as of June 4, before the Liberals promised to extend benefits to 24 weeks from 16. Included in the payments is $20.56 billion from the EI account to 3.96 million EI-eligible workers who exhausted benefits and couldn’t find work due to the pandemic.

At its height, the CERB paid out $17 billion a month when eight million people were on it, but numbers have declined as 1.2 million recipients returned to work or went back on payrolls with help of the federal wage subsidy program.

READ MORE: CERB to be extended by eight weeks amid gradual post-COVID reopening

On Monday, Prime Minister Justin Trudeau pushed businesses to turn to the underused wage subsidy program as companies are allowed to reopen.

“But even as things start to improve for many people, we also have to remember that some industries have been hit harder than others,” Trudeau said. “And if you work in one of those sectors, it might take longer to find a job.”

In a letter to Finance Minister Bill Morneau on Monday, the Business Council of Canada called on the Liberals to expand training programs for displaced workers in the harder-hit sectors Trudeau referenced, and “begin responsibly winding down” the CERB so “it does not function as a disincentive to work” by allowing an income-tested clawback so low-wage workers can keep some payments.

The letter also called for a review of EI and an extension of the wage subsidy to the end of the year for sectors like tourism and travel.

Qualtrough told senators the government is doing everything possible to retool pandemic-related aid programs like the CERB to help get workers and companies back on the job, such as codifying the need to look or take work as part of the CERB application.

Although the government does not know what the country’s labour market will look like in the coming weeks and months, she said officials are certain some people won’t have jobs to return to.

“It is not a rosy picture and we want to make sure we continue to support people,” Qualtrough said.

Statistics Canada’s labour force survey for May showed that lower-wage jobs rebounded at a faster rate than the national rate as restrictions meant to slow the spread of the novel coronavirus started to ease. Qualtrough said the finding suggests low-wage workers will go back to a job instead of remaining on federal aid.

In a speech Monday, Bank of Canada governor Tiff Macklem said job growth may be sharp over the coming weeks, but that pace won’t last. Ongoing physical distancing rules may mean workplaces can’t be as productive as they once were and many services will remain difficult to deliver, acting as a drag on the economy’s productive capacity, he said.

Speaking during a webcast with Canadian Clubs, Macklem also said that some women may not be able to return to work without child care, meaning that employers “need to be flexible” as reopenings continue.

He added that other groups have been particularly affected by job losses, including young workers and recent immigrants.

“Unfortunately in recessions it is typically the most vulnerable members of society that suffer the most. This recession is a deep one and it’s certainly no exception.”

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

CanadaCoronavirus

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

The property on which a residential school (pictured) that was torn down years ago in Lower Post is to be the location of a cultural centre. (Indian Residential School History and Dialogue Centre photo)
Lower Post residential school building to be demolished, replaced with cultural centre

Project to be funded by federal and provincial governments, Daylu Dena Council

The Cancer Care Unit at Prince Rupert Regional Hospital, April 14, will benefit from a $100,000 donation from Prince Rupert Port Authority towards renovations. (Photo: K-J Millar/The Northern View)
Prince Rupert Port Authority donates $100,000 to hospital renovations

Cancer Care Unit at PRRH to undergo upgradesat PRRH to undergo upgrades

Teresa Van sorts bottles at the April 10 Rainmakers Interact Club bottle drive to earn funds for six Seabin garbage collection units for harbours and waterfronts in the local region. (Photo: K-J Millar/The Northern View)
Bottle drive successful with more collected than can be sorted in one day

Rainmakers Interact Club supports local community with funds toward ocean garbage collection units

Flights are to resume to Prince Rupert and Sandspit airports under an Air Canada and federal government $5.9 billion agreement that was reached on April 12. A plane is seen through the window on the tarmac of Vancouver International Airport as the waiting room is empty Tuesday, June 9, 2020. (THE CANADIAN PRESS/Jonathan Hayward)
$5.879 billion agreement between Air Canada and Fed’s will assist YPR in re-opening

Prince Rupert Regional Airport to reopen flights by June 1st, if not earlier

BC Housing townhouses on Kootenay Ave. were demolished during March to make way for new affordable residential units by Prince Rupert Indigenous Housing Society. (Photo: K-J Millar/The Northern View)
Despite a recent reduction in units project will still be able to house many

Prince Rupert Indigenous Housing Society says 60 units is still the plan

A woman wears a protective face covering to help prevent the spread of COVID-19 as she walks past the emergency entrance of Vancouver General Hospital in Vancouver, B.C., Friday, April 9, 2021. COVID-19 cases have been on a steady increase in the province of British Columbia over the past week. THE CANADIAN PRESS/Jonathan Hayward
Top doctor warns B.C.’s daily cases could reach 3,000 as COVID hospitalizations surge

There are more than 400 people in hospital, with 125 of them in ICU

The father of Aaliyah Rosa planted a tree and laid a plaque in her memory in 2018. (Langley Advance Times files)
Final witness will extend Langley child murder trial into May or June

Lengthy trial began last autumn with COVID and other factors forcing it to take longer than expected

The corner of 96th Avenue and Glover Road in Fort Langley now has traffic signals, and new “touchless” signal activation buttons. (Matthew Claxton/Langley Advance Times)
Busy Fort Langley intersection gets ‘touchless’ crosswalk signals

The new traffic light started operation in April

A crossing guard stops traffic as students wearing face masks to curb the spread of COVID-19 arrive at Ecole Woodward Hill Elementary School, in Surrey, B.C., on Tuesday, February 23, 2021. A number of schools in the Fraser Health region, including Woodward Hill, have reported cases of the B.1.7.7 COVID-19 variant first detected in the U.K. THE CANADIAN PRESS/Darryl Dyck
COVID-infected students in Lower Mainland schools transmitting to 1 to 2 others: data

Eight to 13 per cent of COVID cases among students in the Lower Mainland were acquired in schools, B.C. says

Norm Scott, president of Royal Canadian Legion Branch # 91, is disappointed the Legion does not qualify for COVID financial assistance from the provincial government. (Black Press Media file photo)
B.C.’s pandemic aid package passing Legion branches by

Federal non-profit status stymies provincial assistance eligibility

Latest modelling by public health shows cases generated by COVID-19 infections into places where it can spread quickly. (B.C. Centre for Disease Control)
Industrial sites, pubs, restaurants driving COVID-19 spread in B.C.

Infection risk higher in offices, retail, warehouses, farms

Vancouver Canucks forward J.T. Miller said it would be “very challenging and not very safe” for him and his teammates to play as scheduled on Friday. THE CANADIAN PRESS/Darryl Dyck
Canucks’ return to ice postponed again after players voice COVID health concerns

Friday’s game against the Edmonton Oilers was called off after the team met virtually with the NHLPA

B.C. Attorney General David Eby, Minister Responsible for Housing. THE CANADIAN PRESS/Chad Hipolito
B.C. announces $2B for affordable, middle-income family home projects

HousingHub financing to encourage more developers, groups – with low-interest loans – to build affordable homes

Most Read