Ottawa, should strengthen training for workers displaced by the coronavirus related to these prohibitions, particularly in areas where some jobs may never return, research and business groups said this week.
Tuesday, the C. D. Howe Institute has urged the Liberal government to take advantage of Canada’s Emergency Response the Provision of eight-week extension of deployment of a training benefits program for the LSC, recipients, and the update of the Employment Insurance administration to ensure that it can handle a surge in applicants in the LSC terminates.
At a recent meeting, the members of the institute of Crisis of the Working Group on the Household Income and the Credit Support discussed proposed amendments to the LSC, the Law and identified the need for training to help workers who may face long-term displacement and structural unemployment “re-skill or upskill.”
Parisa Mahboubi, a senior policy analyst at the Toronto-based institute and a member of the Crisis of the Working Group, said benefits of training may extend to other EI programs, or involve new initiatives designed to develop the skills needed in the economy today.
“People out of the workforce are currently without receiving training by the LSC,” she said, adding that a large part of the millions of receiving CERB may not have a job to return to once the program winds, as expected, in September.
“If they do not receive support for training, it is very possible for some of them to remain unemployed for a long time,” she said, given that all industries will return to pre-pandemic capacity. She added that the government and businesses must work together to identify training needs and gaps of the program. Mahboubi said the expenditure required for the training in the wake of the pandemic, labour disruption amounts to “a large number”, but called the investment, a source of long-term economic benefits.
Non-profit, the research institute also calls on Ottawa to remove the threat of imprisonment for the LSC, the misuse, and to define the “vague language” around the requirement for a worker to return to work, when it is “reasonable to do so.”
And he said, Ottawa should identify possible scenarios and specify plans for how to resume economic and other activities, while supporting Canadians under changing circumstances.
The C. D. Howe report is in response to an open letter Monday to Minister of Finance Bill Morneau of the Business Council of Canada who have supported expanded training to help workers transition to new jobs, especially in sectors that are struggling to recover from the economic effects of COVID-19 such as the tourism, travel and accommodation.
At the same time, Ottawa should begin responsibly winding-up of the LSC, “so that it does not work as a disincentive to work,” perhaps through a revenue claw back to that low-wage workers can keep some payments.
The LSC has paid $43.51 billion of 8.41 million people as of June 4, before the Liberals have promised to extend benefits to 24 weeks from 16. Included in the payments of $20.56 billion from the employment insurance account to 3.96 million EI-eligible workers who have exhausted benefits and could not find work due to the pandemic.
At its peak, the LSC, has paid out $ 17 billion a month at the age of eight millions of people have been on it, but the numbers have decreased from 1.2 million beneficiaries returned to work or went back on the payroll records with the help of the federal wage subsidy program. Of Canada, the minister of labour said that federal officials are looking for ways to fill the gaps in the key, but decades-old safety net for unemployed workers to catch those on the left changes to come to the pandemic-related aid.
The business council has also said that the government should fill the gap in EI eligibility to help those who need more support while seeking work or receiving training. Thus, the letter called for an extension of Canada Emergency Wage Subsidy at the end of the year to hit travel and tourism operators.
Speaking of the Finance Committee of the Senate, the minister of employment, Carla Qualtrough, said the policy discussions are ongoing on how to ensure the employment insurance system covers people as they transfer back from the ICL, created at the end of March.
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The $2,000 per month of benefits has been put in place because the authorities believed that the volume of unemployment insurance claims of flood-EI would have crushed the decades-old system, which was not designed to withstand as severe a decline in employment that the country experienced during March and April.
Neither IE cover many of the three million people who have lost their jobs, because the businesses have been ordered closed to slow the spread of COVID-19, and nearly three million more who have had their hours reduced.
“We are looking at how to ensure that as we transition people back into the employment insurance system that people are in fact covered,” Qualtrough said.
With a file from Canadian Press
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