Pandemic-induced work disruptions and massive layoffs have come in waves over the past year and a half. As of May 2021, around half a million Canadians had been unemployed for more than six months. What can be done to ensure this significant number of willing and capable workers get back to full-time work?
A recent study from the Institute for Research on Public Policy, entitled Transitioning Back to Work: How to Improve EI Working-While-on-Claim Provisions, examines how the Employment Insurance program can be improved to help.
Currently, EI working-while-on-claim (WWC) provisions allow claimants to take a part-time or casual job while keeping a portion of their EI benefits, which helps them maintain their skills and network of contacts, demonstrate their commitment to work, and eventually get back to permanent employment.
Reviewing evidence from a series of federal government pilot projects between 2005 and 2018 to test the effects of WWC provisions that were made more generous, the authors found that EI claimants responded positively to the new rules: they were either more likely to take up part-time work or to work more hours.
Additionally, research conducted in other countries that have similar WWC rules has shown that claimants who take advantage of these more generous provisions are more likely to find permanent employment, they write.
As of now, only about half of EI claimants take advantage of the current WWC provisions. To increase participation, the authors recommend:
- EI claimants be allowed to earn a modest weekly amount from part-time work without having their EI benefits clawed back;
- Making WWC provisions more generous during economic downturns, when part-time jobs tend to be more plentiful and accessible;
- Policy-makers gather the data needed to provide a full picture of the users of WWC provisions and their employment outcomes.
