Access to and adequacy of income support for displaced workers in Canada

Income loss is one of the major costs borne by workers following job displacement. How to compensate displaced workers whilst improving their transition back into employment is one of the most critical challenges facing policy makers. In Canada, most displaced workers with stable work histories have relatively good access to income support through Employment Insurance (EI) whilst they look for new jobs. However, the severance payment provisions and the relatively short duration of EI benefit entitlements result in delayed coverage and re-employment support among older and long-tenured displaced workers, precisely the group who suffer the greatest barriers in returning to the labour market and income losses post displacement. A major challenge is to expedite re-employment support to workers in receipt of severance payments and boost incomes for older long-tenured workers whilst ensuring adequate incentives for them to find new jobs.