In your first question, I think you have raised one of the more fundamental issues that almost all OECD countries are facing, the balance between flexibility in your labour and product markets with the social supports. When you look across countries—and it goes to the question I think the previous member asked—there are lots of different ways to judge that balance in Canada and how it contributes to our strong economic performance.
There's a balance here between the flexibility and the security, and employment insurance is only part of what is provided in Canada. If you look across the broad range of agreements, and especially the $3 billion in support that's provided from the federal government to the provinces and, in addition, their constitutional responsibility for welfare clients and so forth, in their entirety I think you get a better balance.
But getting this balance right is part of the questions we're talking to provinces and stakeholders about. We have, in fact, raised issues of whether or not young people, or people with fewer hours, or people who have been out of the labour market longer, should get access to EI. These are the questions that we want to talk to people about, but, of course, inside of that you have an insurance system in which people are paying premiums and we want to make sure that the program is there for premium payers.
On the four of ten workers qualifying for employment insurance, I think the committee should consider a couple of factors. I think when you look at it at any one point in time, you may find that four of the ten people who are unemployed at any one time may not be on employment insurance, with part 1 benefits, but employment insurance, part 2, is available for a much broader spectrum of people.
In Frank's presentation, he talked about the fact that we have both a look back and a reach back function in employment insurance, part 2, so even if you have exhausted EI benefits and you're not captured in that beginning figure, you can come in and get EI part 2 for up to three years. Even if you're looking for a job and unemployed and not counted in the 40% figure, and you were on maternity or parental benefits up to five years ago, you qualify.
When we're thinking about employment insurance, part 2, I think I would be careful with that 40%. My judgment would be that it's a far different number because of the expanded eligibility.
Thank you.