A Stable Funding Framework for the Employment Insurance Program

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Connect2Canada – Canada Watch – A Stable Funding Framework for the Employment Insurance Program
June 19, 2009

While the public debate over reforms to Employment Insurance (EI) centres on regional fairness in eligibility requirements, it is critical that the EI program remain affordable in good times and bad, according to the C.D. Howe Institute. To avoid pro-cyclical EI premium decreases during booms and harmful premium increases during downturns, the challenge is to create a rate-setting mechanism that would balance the books over the ebbs and flows of economic cycles, and permit yearly EI account balances to vary. The Institute also argues that management of the EI fund must be shielded from political interference.

Read:  < http://www.cdhowe.org/pdf/ebrief_81.pdf >.

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