Mr. Speaker, I am very pleased to rise today to share my thoughts on this NDP motion. I do not believe it will come as any surprise to the House to hear that I cannot support a factually incorrect and inaccurate motion.
Let me be clear on what our changes would do.
We would connect out-of-work Canadians with local jobs in their local communities within their skill set. The changes we would be making are common-sense adjustments to ensure that EI is not discouraging people from trying to get back into the job market. As we face unprecedented labour and skills shortages, it is important that the employment insurance program is working most effectively for Canada and Canadians. That is why budget 2012 announced revisions to the working while on claim pilot project. This national pilot project would ensure that Canadians who are collecting EI benefit from accepting all available work.
Previously, only a portion of earnings were exempt from being clawed back. Once earnings exceeded this exemption, EI benefits were clawed back dollar for dollar.
The practical result of this policy is not hard to see: EI claimants turning down any work that exceeded this exemption because they would not profit from their labour.
While an individual is waiting for a permanent, full-time job to open up, their skills are underutilized. Under this new pilot, we would cut the current clawback rate in half and apply it to all earnings made while on claim.
We know from experience that part-time work will often lead to full-time work. This project would ensure that EI claimants always benefit from accepting work because it would allow them to keep more of what they earn while on EI.
Let me use an example to illustrate how an EI claimant would benefit from this new working while on claim pilot project.
Imagine William, a retail salesperson, who has been laid off and is receiving EI benefits of $450 per week. He has found part-time work in a store that pays him a total of $600 per week. Under the current working while on claim pilot project, William can earn wages equivalent to 40% of his weekly EI benefits with no reduction to those benefits. This allows him to keep $180. Earnings above the 40% level reduce his benefit payment dollar for dollar, so William's combined earnings and EI benefits are $630.
Under the new working while on claim pilot project, William's EI benefits would only be reduced by 50% of his earnings from working while he is on claim. His combined weekly income would then be $750. We believe it should pay to work. With this new pilot, it would always be more beneficial for claimants to accept work than to receive EI alone.
We know the job market varies from region to region. We know that some seasonal workers, especially in rural areas, may not be able to find other work in the off season. The Prime Minister has been crystal clear. Our government is working to help these Canadians find jobs in their local area appropriate to their qualifications. For those who are unable to find employment, employment insurance will be there for them as it always has been. However, in areas where there are more jobs than unemployed Canadians, it makes no sense for EI claimants to stay at home when there are jobs they could be doing.
As announced in economic action plan 2012, we are introducing a new permanent national approach to better align the calculation of the weekly amount an EI claimant receives with their regional labour market conditions.
As of April of next year, subject to Parliament's approval, the amount a claimant receives weekly will be determined using an average of his or her best weeks of employment. In higher unemployment regions, fewer best weeks will be used in this calculation, making it more beneficial for workers to accept all available work in slower seasons of employment.
By replacing the previous selective pilot with a national program, we would ensure that those living in regions with similar labour market conditions receive similar benefits.
These are two great examples of improvements our government is making to employment insurance to ensure Canadians are always better off accepting all available work. Matching Canadian workers with available jobs in their local area is critical to supporting economic growth and productivity as well as quality life for Canadians.
Our country's economic performance continues to be strong. From July 2009 to April 2012 more than 750,000 jobs have been created. These gains in job creation along with the further rise in business confidence bode well for continuing economic growth. We need to maintain that momentum. We have a strange dichotomy in this country where some regions that have high unemployment rates also have labour and skills shortages. While the unemployment rate in my province of Saskatchewan is 4.9%, there is 18% unemployment in northern Saskatchewan. Mining companies are begging for workers because they cannot find Canadians to fill those job shortages.
The Canada Job Vacancy Survey of Statistics Canada's tells us that about 250,000 jobs went unfilled in the fall of last year. We need to ensure that the EI program contributes to economic growth by encouraging people to fill those available jobs. That is good for them, for their families, for their communities and the economy at large.
Let me briefly outline a few of the other measures that are part of our plan. We would be investing $21 million over two years to help unemployed Canadians to find jobs more quickly. We would offer more labour market information to claimants to support their job searches, including expanded online job postings. This would include daily emails with jobs that are specific to EI claimants, based on geography and the skills a worker possesses. We would also ensure that employers consider Canadians before they hire temporary foreign workers.
While the opposition NDP prefers to attack hard-working Canadians who go to work every day filling crucial roles, we want to better connect Canadians with available jobs. Under our plan Canadians would always benefit financially from accepting suitable employment.
Our government's top priority is creating jobs and long-term prosperity for Canadians. That is why we are making these practical, common sense changes to connect out-of-work Canadians with jobs in their local areas. I urge all members to support our government's initiatives and to vote against this factually incorrect opposition motion.