Claims have increased by nearly 30% in Alberta
The number of those living in Alberta, Canada, applying for employment insurance benefits is on the rise, according to a report from Statistics Canada. Employment insurance in Canada is similar to unemployment insurance in the United States. Those applying for benefits receive temporary financial assistance while looking for work or improving their skills. Throughout Canada, employment insurance claims have risen by an average of 6.7%.
Report shows that more than 500,000 Canadians currently receive employment insurance benefits
According to the report from Statistics Canada, claims in Alberta have risen by 29.4% so far this year. The number of people in Alberta that currently receive employment insurance is estimated to be 36,000, while 509,300 people throughout the country currently receive benefits from this form of insurance coverage. British Columbia is home to the highest number of people receiving insurance benefits, with 2% of the province’s workforce applying for benefits under this form of coverage.
Economic factors are leading to an increase in insurance claims
The Canada West Foundation believes that employment insurance claims will continue to grow in Alberta. In March and April, claims are expected to have increased, but information from these two months has not yet been evaluated. Layoffs are contributing to the rise in claims, as businesses continue to seek ways to save money and become more sustainable in the current economic climate. The falling price of oil is cited as a major contributing factor to the increase in employment insurance claims.
Falling oil prices are forcing more people to take advantage of employment insurance benefits
Canada is home to a massive oil industry, where many people find work on oil fields that are found throughout the country. Decreasing oil prices are having a significant impact on these oil fields, leading some companies to release some of their workforce in order to remain solvent and address their own financial issues. This issue is expected to persist as long as oil prices continue to decline, so employment insurance claims may become more common in the coming months.