The Canadian Centre for Policy Alternatives had estimated about 5,000 people would use the taxable sickness benefit. (Katya Slepian/Black Press Media)

The Canadian Centre for Policy Alternatives had estimated about 5,000 people would use the taxable sickness benefit. (Katya Slepian/Black Press Media)

Early figures for new aid and EI provide glimpse of how post-CERB supports to be used

The CERB ceased to exist on Oct. 3, although people can still retroactively apply for CERB payments

The employment insurance system absorbed almost 1.3 million people in the last three weeks, new figures show, as a key COVID-19 benefit wound down.

A breakdown of applications for the simplified EI program shows that overall there had been more than 1.5 million claims as of late this past week, among them 1.15 million people who were automatically transferred when their emergency benefit ran out.

The figures are enormous for a system that in one day this month handled 246,000-plus claims. In the spring, officials worried the 87,000 applications on one March day would make the decades-old system burst its seams.

Figures obtained by The Canadian Press also show that more than 84 per cent of applications had been processed, which experts who reviewed the numbers noted was a positive sign for the transition off the Canada Emergency Response Benefit, better known as the CERB.

Couple that with the more than 300,000 people who turned to a suite of new benefits on the first day they were available, and the figures provide a hint at the ongoing need for income support even as employment has picked up.

Figures on claims can be “valuable in providing a partial, real-time assessment” of the impact COVID-19 has on the labour force, officials wrote to Employment Minister Carla Qualtrough in April.

At the time, they were writing in a briefing note about providing regular updates on CERB recipients and payments as “the labour market landscape continues to evolve across the country.”

The Canadian Press obtained a copy of the briefing note under the Access to Information Act.

The CERB ceased to exist on Oct. 3, although people can still retroactively apply for CERB payments until Dec. 2. The government expected up to four million people would use the revamped EI and three additional benefits for those not EI-eligible.

READ MORE: Canadians with COVID-19 or caring for those with it can apply for federal money

Up to 2.8 million people would need EI, based on internal projections from the department that oversees the program. About one million more would likely need the three new benefits.

On the first day it was available this past week, 240,640 people applied for the Canada Recovery Benefit. By that same Monday, a further 107,150 applied for a caregiving benefit and 58,560 applied for the new two-week sickness benefit, both of which had opened for applications the previous week.

The Canadian Centre for Policy Alternatives had estimated about 5,000 people would use the taxable sickness benefit. Its senior economist David Macdonald said the vastly higher number suggests some EI-eligible workers may have found it easier to apply for the sickness benefit.

“There will be plenty of honest confusion among people as to where they might apply next, and they might take the path of least resistance, which is going to be these (recovery) programs,” said Macdonald, who has closely tracked aid figures.

Mikal Skuterud, a professor and labour economist at the University of Waterloo, said there may also be people who are EI-eligible but apply for the CRB because of other differences in the programs, such as how quickly benefits are clawed back, how long they last, and how much tax is taken off at the source of payments.

“There are some big issues there, but that’s kind of unfair to criticize the government because designing these kinds of income-support programs for self-employed people is a quagmire,” he said.

The first EI payments went out this week, with just over 84 per cent of applicants receiving benefits, a figure experts noted as positive.

The labour market has recouped about 2.3 million of the three million jobs lost when the pandemic first struck. A new round of restrictions amid rising COVID-19 case counts threatens some of those gains.

Given the unknown future path of COVID-19, Scotiabank senior economist Marc Desormeaux said the government will have to be very careful about when it winds down the pandemic benefits.

Ending programs too soon could lead to weak business results as fewer people have money to spend, leading to potential bankruptcies or closures, creating job losses and making employment weak anew.

“We want to try and recover more quickly to the extent that we can, because these things have a way of reinforcing themselves,” he said in an interview.

“At this point, we’re comfortable with these (benefits) being in place, just to provide that certainty and a cushion against potential second-wave impacts.”

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.

CoronavirusEI benefits

Just Posted

Participants of the Indigenous-led agricultural training program pose for a photograph with the staff at Tea Creek Farm in Kitwanga. (Photo courtesy, Alex Stoney)
Indigenous-led food sovereignity program trains first cohort in Kitwanga

Tea Creek Farm trained participants from northwest B.C. First Nations

The Red Chris open pit mine approximately 80 km south of Dease Lake. The province and Tahltan will start negotiations on the first consent-based decision-making agreement ever to be negotiated under DRIPA with regards to two mining projects in northern B.C. (Newcrest Mining photo)
B.C. to begin DRIPA-based negotiations with Tahltan First Nation on two northwest mining projects

Negotiations on Red Chris and Eskay Creek mines to commence soon in accordance with Section 7 of DRIPA

Columnist Steve Smyth (File photo)
One for the road: Columnist Steve Smyth signs off

After nearly 60 years of residency, this will likely be the last… Continue reading

The site of the new Mills Memorial Hospital project in Terrace on June 18, 2021. The provincial government is so far choosing not to comment on suggestions a new Mills Memorial Hospital will now cost in excess of $600 million. (Ben Bogstie/Terrace Standard)
Province silent on Terrace hospital construction cost

Health ministry urges citizens to stay tuned

The City of Terrace is setting up a town hall meeting to address the ‘crisis’ in the downtown area. (Black Press Media File Photo)
Terrace council declares crisis in downtown

City staff are in the process of setting up town hall meeting

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

Emily Steele holds up a collage of her son, 16-year-old Elijah-Iain Beauregard who was stabbed and killed in June 2019, outside of Kelowna Law Courts on June 18. (Aaron Hemens/Capital News)
Kelowna woman who fatally stabbed teen facing up to 1.5 years of jail time

Her jail sentence would be followed by an additional one to 1.5 years of supervision

Most Read