The number of Canadians receiving regular Employment Insurance (EI) benefits continued to rise in July, reaching 489,000, an increase of 11,000 or 2.2% compared to the previous month, according to new data. This marks the third consecutive monthly increase, with the number of regular EI beneficiaries having remained stable since September 2023 prior to this trend.
On a year-over-year basis, the number of EI recipients climbed by 44,000, or 10%, compared to July 2023.
Data from the Labour Force Survey indicates that the national unemployment rate in the three months leading to July increased by 0.3 percentage points to 6.4%, as more Canadians searched for work. While overall employment remained steady, the number of people unemployed due to layoffs rose to 604,000, a 12.2% increase compared to the same period in 2023.
The fluctuations in the number of EI beneficiaries reflect a variety of factors, including individuals returning to work, exhausting their benefits, or no longer receiving assistance for other reasons.
Increases seen across key demographic groups
In July, the number of men aged 55 and older receiving regular EI benefits increased by 3.1% (+2,500), while core-aged men (25 to 54 years old) saw a 1.7% rise (+3,100). Young men (15 to 24 years old) experienced little change in the number of EI recipients.
Among women, the number of core-aged recipients grew by 3.1% (+3,700), and women aged 55 and older saw a 2.2% increase (+1,100). The number of young women receiving regular benefits edged up by 1.6% (+200) in July.
Compared to a year earlier, the increase in EI beneficiaries was notable among core-aged women (+13.1%; +14,000), men aged 55 and older (+10.1%; +7,600), and core-aged men (+9.8%; +17,000). The number of young men and women on EI also grew, rising by 4.7% and 7.4%, respectively.
Provincial variations
Seven provinces saw an increase in the number of EI beneficiaries in July, with New Brunswick recording the largest proportional rise (+23.7%; +5,700). Nearly one-third of this increase came from individuals who last worked in trades, transport, and equipment operations.
Alberta saw its number of regular EI recipients increase by 4.8% (+2,400) in July, following declines in four of the previous five months. Core-aged beneficiaries in the province saw a 5.4% rise, while those aged 55 and older experienced a 5.5% increase. Year-over-year, the province recorded a 15.7% increase in the number of people receiving regular EI benefits.
Saskatchewan also saw a rise in EI recipients, with a 3.2% increase (+500) in July, marking the second increase in three months. Core-aged workers in the province accounted for much of the growth. Ontario’s numbers followed a similar trend, increasing by 3.0% (+4,500), with a significant rise among core-aged women (+7.6%; +3,300).
In contrast, Quebec experienced a decline in EI recipients in July (-4.2%; -4,800), the only province to see a reduction after two consecutive monthly increases.
Occupational categories
The increase in EI beneficiaries in July was seen across most major occupational groups. The number of recipients who last worked in manufacturing and utilities saw the largest rise (+25.8%; +8,500), with machine operators, assemblers, and inspectors in processing, manufacturing, and printing seeing the most significant growth (+44.3%; +6,400), particularly in Ontario.
Over the same period, those in natural and applied sciences occupations also saw a significant rise in the number of beneficiaries (+24.0%; +6,700). However, the number of EI recipients decreased in occupations related to arts, culture, recreation, and sport (-13.5%; -2,000) and natural resources, agriculture, and related production (-6.6%; -2,100).