pc28����

More than 140,000 Ontarians were on EI benefits in December, according to Statistics Canada, compared with approximately 106,000 people a year before who were receiving income support.

Across Canada, EI recipients rose 14.8 per cent in 2023.

“This is the result of higher unemployment over the course of 2023,” said David Macdonald, a senior economist with the Canadian Centre for Policy Alternatives. “As a result, you see more people applying for and getting EI.”

While the unemployment rate fell 0.1 per cent in January, the overall labour market has been losing steam as the economy slowed in 2023 under pressure of high interest rates, with the unemployment rate climbing 0.8 percentage points from April to November, according to Statistics Canada.

At the same time, population growth driven by immigration has also contributed to the rising unemployment rate. From 2022 to 2023, Canada took in some 1.13 million immigrants, the highest such figure on record, and almost half a million more than the previous year.

Douglas Porter, chief economist at BMO, pointed out that in Ontario, the increase in EI recipients grew even faster than the unemployment rate.��In Ontario, the unemployment rate was 6.3 per cent in December according to Statistics Canada, up from 5.3 per cent the year prior.��

Porter and Macdonald said EI applicants outpacing unemployment could indicate who is currently unemployed or losing their jobs.

For example, to be eligible for EI benefits, applicants must have worked between 420 and 700 insurable employment��hours��during the qualifying period.

“You need a fair amount of hours to get into the system,” Macdonald said. “This maybe reflection of longer-employed people or more securely employed people losing work over the course of 2023 and therefore getting into the system.”

More than 300,000 full-time jobs in Ontario have disappeared since July, according to data from Statistics Canada.

Meanwhile, part-time jobs are on the rise.

In April, Canada’s economy added 41,000 new jobs mostly in part-time work and in January, the slight uptick in employment was largely driven by an increase in part-time work, Statistics Canada said.

Macdonald said the number of Canadians seeking EI benefits will likely continue to increase.��

The Royal Bank of Canada in a report from May said that the unemployment rate is projected to climb to 6.6 per cent by early 2024.

“I don’t think there’s any particular slowing in the rise of the unemployment rate,” he said. “As a result you’re going to see more people seeking employment insurance benefits as they lose their jobs.”