{"id":447873,"date":"2021-03-02T05:03:08","date_gmt":"2021-03-02T10:03:08","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=447873"},"modified":"2021-03-02T05:03:08","modified_gmt":"2021-03-02T10:03:08","slug":"fraser-institute-news-release-covid-19-recession-exacerbates-need-to-reform-employment-insurance-in-canada","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fraser-institute-news-release-covid-19-recession-exacerbates-need-to-reform-employment-insurance-in-canada\/","title":{"rendered":"Fraser Institute News Release: COVID-19 recession exacerbates need to reform Employment Insurance in Canada"},"content":{"rendered":"<div class=\"mw_release\">\n<p align=\"left\">CALGARY, Alberta, March  02, 2021  (GLOBE NEWSWIRE) &#8212; The COVID-19 economic shutdowns and recession have caused unemployment to rise, placing financial pressure on the Employment Insurance program and amplifying the need to substantially reform Canada\u2019s EI system, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank.<\/p>\n<p>\u201cThe federal government has acknowledged that the COVID-19 pandemic has shown the need for a \u201821st century\u2019 employment insurance system, but tweaks to the status quo likely won\u2019t be sufficient to address the underlying problems of Canada\u2019s inefficient system,\u201d said Jake Fuss, a senior economist at the Fraser Institute and co-author of <a href=\"https:\/\/www.fraserinstitute.org\/studies\/reforming-employment-insurance-for-the-21st-century?utm_source=Media-Releases&amp;utm_campaign=Reforming-Employment-Insurance-for-the-21st-Century&amp;utm_medium=Media&amp;utm_content=Learn_More&amp;utm_term=550\" rel=\"nofollow noopener noreferrer\" target=\"_blank\"><strong><em>Reforming Employment Insurance for the 21st Century<\/em><\/strong>.<\/a><\/p>\n<p>The study highlights problems with Canada\u2019s current EI system, which provides unequal benefits depending on where a worker lives, and doesn\u2019t cover the self-employed or those who work in the growing \u2018gig\u2019 economy.<\/p>\n<p>And previous research has shown that overly generous employment insurance benefits actually incentivize people to stay unemployed for extended periods of time, and that Canada\u2019s current EI system encourages seasonal unemployment and repeated episodes of unemployment, particularly in Atlantic Canada.<\/p>\n<p>The study also notes that with Canada\u2019s unemployment rates expected to remain high as a result of COVID, the financial strain of paying for Canada\u2019s EI system will increase.<\/p>\n<p>One possible and substantial reform to Canada\u2019s EI program would be to replace it with Unemployment Insurance Savings Accounts.<\/p>\n<p>These are mandatory personal savings account into which employers and employees make payroll tax contributions. The individual savings accounts are the property of the contributor, and workers can withdraw funds from it during periods of unemployment. Furthermore, if workers are left with a positive balance in their account when they retire, the money is theirs to be added to retirement income.<\/p>\n<p>\u201cThere are many potential implementation issues associated with moving Canada to an Unemployment Insurance Savings Account model that would need to be considered, but this reform is indicative of the kind of bold changes policymakers will need to consider in the years ahead,\u201d said Steven Globerman, resident scholar at the Fraser Institute and co-author of the study.<\/p>\n<p>\u201cThe weaknesses of Canada\u2019s current Employment Insurance system have been exacerbated by the COVID recession, and making the system work for employees, employers and the economy as a whole will not be an easy fix.\u201d<\/p>\n<p>\n        <strong>MEDIA CONTACT<\/strong>: <br \/>Jake Fuss, Senior Economist<br \/>Fraser Institute<\/p>\n<p>Steven Globerman, Resident Scholar<br \/>Fraser Institute<\/p>\n<p>\n        <em>To arrange media interviews or for more information, please contact:<\/em><br \/>\n        <br \/>Drue MacPherson, Fraser Institute<br \/>Tel: (604) 688-0221 Ext. 721<br \/>E-mail:\u00a0<a href=\"mailto:drue.macpherson@fraserinstitute.org\" rel=\"nofollow noopener noreferrer\" target=\"_blank\">drue.macpherson@fraserinstitute.org<\/a><\/p>\n<p align=\"center\">\n        <a href=\"http:\/\/www.twitter.com\/FraserInstitute\" rel=\"nofollow noopener noreferrer\" target=\"_blank\"><br \/>\n          <u>Follow the Fraser Institute on<\/u><br \/>\n          <strong><br \/>\n            <u> Twitter<\/u><br \/>\n          <\/strong><br \/>\n        <\/a> |\u00a0\u00a0 <a href=\"http:\/\/www.facebook.com\/FraserInstitute\" rel=\"nofollow noopener noreferrer\" target=\"_blank\"><u>Become a fan on <\/u><strong><u>Facebook<\/u><\/strong><\/a><\/p>\n<p>The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute\u2019s independence, it does not accept grants from governments or contracts for research. Visit <a href=\"http:\/\/www.fraserinstitute.org\" rel=\"nofollow noopener noreferrer\" target=\"_blank\"><u>www.fraserinstitute.org<\/u><\/a><\/p>\n<p \/>\n      <img loading=\"lazy\" decoding=\"async\" class=\"__GNW8366DE3E__IMG\" src=\"https:\/\/www.globenewswire.com\/newsroom\/ti?nf=ODE4MjA0MCM0MDQyMDExIzIwOTM5NjQ=\" width=\"1\" height=\"1\" \/><br \/>\n      <br \/>\n      <img loading=\"lazy\" decoding=\"async\" class=\"__GNW8366DE3E__IMG\" src=\"https:\/\/ml.globenewswire.com\/release\/track\/f611e207-090c-4f84-af70-b27799c67401\" width=\"1\" height=\"1\" \/>\n    <\/div>\n<div class=\"mw_contactinfo\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>CALGARY, Alberta, March 02, 2021 (GLOBE NEWSWIRE) &#8212; The COVID-19 economic shutdowns and recession have caused unemployment to rise, placing financial pressure on the Employment Insurance program and amplifying the need to substantially reform Canada\u2019s EI system, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank. \u201cThe federal government has acknowledged that the COVID-19 pandemic has shown the need for a \u201821st century\u2019 employment insurance system, but tweaks to the status quo likely won\u2019t be sufficient to address the underlying problems of Canada\u2019s inefficient system,\u201d said Jake Fuss, a senior economist at the Fraser Institute and co-author of Reforming Employment Insurance for the 21st Century. The study highlights problems with Canada\u2019s current &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/fraser-institute-news-release-covid-19-recession-exacerbates-need-to-reform-employment-insurance-in-canada\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Fraser Institute News Release: COVID-19 recession exacerbates need to reform Employment Insurance in Canada&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-447873","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Fraser Institute News Release: COVID-19 recession exacerbates need to reform Employment Insurance in Canada - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/fraser-institute-news-release-covid-19-recession-exacerbates-need-to-reform-employment-insurance-in-canada\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fraser Institute News Release: COVID-19 recession exacerbates need to reform Employment Insurance in Canada - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"CALGARY, Alberta, March 02, 2021 (GLOBE NEWSWIRE) &#8212; The COVID-19 economic shutdowns and recession have caused unemployment to rise, placing financial pressure on the Employment Insurance program and amplifying the need to substantially reform Canada\u2019s EI system, finds a new study released today by the Fraser Institute, an independent, non-partisan, Canadian public policy think-tank. \u201cThe federal government has acknowledged that the COVID-19 pandemic has shown the need for a \u201821st century\u2019 employment insurance system, but tweaks to the status quo likely won\u2019t be sufficient to address the underlying problems of Canada\u2019s inefficient system,\u201d said Jake Fuss, a senior economist at the Fraser Institute and co-author of Reforming Employment Insurance for the 21st Century. 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