CUPE The FACTS - December 2001 - The Impact of the 2001 Federal Budget on Unemployment Insurance
The 2001 federal budget does little to stimulate the economy, keep Canadians working and provide security for the unemployed. The number of jobless Canadians has increased in recent months and economists expect that more jobs will disappear as the current economic downturn results in yet more layoffs.
The national unemployment rate increased 0.2% to stand at 7.5% for November 2001, which is the highest jobless rate since mid-1999. Much of the recent job loss has affected full-time workers. The decrease in the numbers of full-time jobs is occurring as less secure part-time jobs are increasing. In fact, Canada has now recorded its second consecutive month of increasing part-time and less full-time work.
In real numbers, 45,500 fewer Canadians were working in November 2001 as compared to a month earlier. Security for the estimated 1,186,600 jobless Canadians would result in a major revamping of the Unemployment Insurance program to ensure that the unemployed are entitled to the benefits they have paid for through their UI premiums. Security for the unemployed would also take the form of a comprehensive training leave program. This federal budget does neither.