World Business Press Online, OTTAWA - The number of Canadians getting regular employment insurance benefits in May 2009 reached 778,700, the highest level on comparable records going back 12 years, Statistics Canada said on Tuesday. Approximately 778,700 people received regular benefits under the Employment Insurance (EI) program in May, up by 65,600 (9.2%) from a month earlier. Finance Minister Jim Flaherty says the number of Canadians collecting jobless benefits will probably continue to rise hitting at least 9% in Canada.

Employment in Canada peaked in October 2008. Since then number of regular EI beneficiaries has risen by 278,300, or 55.6%, with increases in all provinces and territories. Alberta showed the fastest increase, and that province, as well as B.C., Ontario, Saskatchewan and Manitoba all recorded their largest number of EI recipients since 1997.

Minister of Finance confirmed that stimulus spending will continue. But the question of Employment Insurance is still a point of polemic between liberal opposition and conservative government.

The problem is that individuals must first submit a claim to receive Employment Insurance benefits and meet conditions which are different in almost every province. It means the real number of people without work is very probably higher. "The sad reality is these numbers only scratch the surface of the hardships many Canadian families are facing," said Liberal House Leader Ralph Goodale.

Another problem is that a lot of so called "new unemployed" (coming mostly from the private sector) become self-employed. That explains why, for example, in April this year employment grew by 36,000 but the unemployment rate remained unchanged at 8.0%, the result of an increase in self-employment. Self-employment rose in June, and has grown by 1.5%since October last year (it shows a 3% annual growth).

 "The good news is, recovery is at hand," said Patricia Croft, chief economist at RBC Global Management. "The bad news is, employment tends to be a lagging indicator, and for many Canadians I think this isn't going to feel like a recovery."

The employment insurance debate nearly triggered an early election in June, but the Conservatives and the opposition liberals worked out a deal to work on the EI reform to help Canadians with obtaining EI benefits especially in the time of the economic downturn. Their proposals are expected in September.

Miroslava Hospodarova