Unemployment Insurance Policy and the Economy Analytical Essay by Top Papers

This document examines Canada's employment insurance program that has been largely negative for Canada's economic growth but relied upon by workers. Employers are, in many cases, penalized for their participation and receive little in the way of financial incentive to generate new jobs or higher salaries. The writer discusses that the broad impact of this is that at some point in time the Canadian economy will contract because the average wages of seasonal workers upon which the Canadian economy is reliant, has become equalized, to some degree, with state-supported benefits through the EI program and results in an incentive to not work. The writer maintains that this trend is magnified by the growth of Canada's labor force and its migrant and immigrant population.