It is undeniable that the current state of the Canadian economy is grim. Unemployment rates are at unprecedented highs and the labour market is at an all time low. During times of economic uncertainty and general unease about the market, social programs experience particular scrutiny and pressure.
Canadian Unemployment Insurance
Unlike the United States, where federal unemployment programs are run at the state level, the Canadian unemployment system is exclusively federal. The Canadian insurance policy is financed directly by employers’ and employees’ contributions. Up until 1991, general federal revenues also supplemented these contributions. The program is highly regional in that it provides for greater support in terms of duration of benefits and qualification periods to areas that suffer from higher unemployment.
Traditionally, unemployment insurance programs in Canada were designed to serve as a broad instrument of income supplementation that would sustain small communities and protect traditional occupations from forces of economic modernization. Those smaller communities with more traditional lifestyles happen to also be within the regions that see more support from the federal unemployment system.