Manufacturing layoffs blamed for 56 per cent increase
May 28, 2008 - 10:39 AM
By Jillian Follert
OSHAWA -- The number of Oshawa residents receiving federal employment insurance (EI) benefits jumped 56 per cent between March 2007 and March 2008, representing one of the highest increases in the country.
The numbers are part of a new Statistics Canada report released May 28, which says the number of regular beneficiaries declined in most other Canadian cities.
Saskatoon, for example, saw a 34 per cent decrease in the number of people receiving benefits.
Rick Lea isn't surprised by the new stats.
As executive director of the Durham Region Local Training Board, he works with the industry and education sectors to help people out of work transition to new jobs.
"These EI numbers match the significant increase we're seeing in the unemployment rate here," he said, citing layoffs at General Motors and its spin-off plants as the main culprit.
Mr. Lea is concerned many people facing manufacturing layoffs are waiting to see if they will be called back to work, instead of looking for other work -- and EI doesn't last forever.
"There are a whole whack of people here who haven't been in touch with an action centre or an employment support centre to get help with re-training and finding work in another sector," he said. "People shouldn't wait until their EI runs out to get that help."
People are eligible to collect EI if they lose their job through no fault of their own -- such as a work shortage or mass layoff -- and are willing to work but haven't been able to find a job.
Regular benefits can be paid from 14 weeks up to a maximum of 45 weeks, depending on the unemployment rate in the region the applicant lives in and the number of insurable work hours accumulated during the qualifying period.
In Oshawa, applicants must have worked 630 insured hours to qualify for regular EI and can receive benefits for a minimum of 17 weeks and a maximum of 40 weeks.
Jim Freeman, president of the Durham Region Labour Council, said that often isn't enough time.
"People work for 20 years and pay into it for 20 years, then they have 40 weeks to find a new job," he said. "Most people don't find one in time, especially in manufacturing. And if they are lucky enough to find something, they're usually taking a 25 per cent reduction in pay."
The unemployment rate in the Oshawa Census Metropolitan Area -- which includes Whitby and Clarington -- is currently sitting at 7.7 per cent.
The Statistics Canada report said EI payments in March 2008 totalled $783.2 million and were given to about 462,760 Canadians, an increase of 9,870 people from February.
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