Mr. Speaker, the hon. member has criticized our reduction of the EI premium rate from $2.70 to $2.55, but we feel the new rate provides a moderate reduction for both employers and employees and still provides money to help Canadians find jobs.
The premium rate reduction does not jeopardize benefits to the unemployed. We will spend an additional $800 million per year on active employment measures under EI, bringing federal funding to more than $2.7 billion annually by 2000-2001. We will create even more jobs by using the $3 million transitional jobs fund now in place and by using general revenues to serve high unemployment regions.
On December 14 the minister announced the Canada jobs fund, a permanent program which will build on the highly successful transitional jobs fund initiative. This annual commitment of $110 million will help a greater number of regions across Canada and will help create approximately 10,000 new jobs each year.
We also recently announced that we will be injecting another $465 million over three years into the youth employment strategy to help young Canadians enter the workforce.
The employment insurance system is about making sure people who are laid off or quit with just cause get help in between jobs. A recent study of the system determined that 78% of such people were eligible for benefits. We believe our approach is working and Friday's employment figures bear this out.
We have to remember that the unemployment rate dropped to 7.8% in January, the lowest level in nine years. Last year 143,000 jobs were created for youth, the best performance in 20 years. Last month alone 87,000 jobs were created and 44,000 of these were for youth. Since October 1993, when we came to office, 1.6 million more Canadians are working.