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Freeze in EI premiums will heat up Canadian job market: CME

Published by Stephanie Brooks on September 09, 2013

The federal decision to freeze EI premiums over the next three years will spur investment, job growth, and help Canadian companies take advantage of new business opportunities, according to Canada’s largest trade and industry association, Canadian Manufacturers and Exporters (CME).  

Finance Minister Flaherty’s announcement today, strongly supported by CME, will leave $660 million in the hands of both employees and employers, and will translate into about $75 million in savings for manufacturers, in 2014. CME expects it to add more than $2.5 billion in economic stimulus over the next three years.  

“The freeze will mean not only more money in the pockets of employees,” says CME President & CEO Jayson Myers, “but also additional cash for employers that they can use to invest in expanding their business. This will create manufacturing and exporting jobs, as well as new employment opportunities in all of the services sectors that depend on manufacturing.”  

If this step were not taken, EI premiums would be five cents higher per 100 dollars of insurable earnings in 2014, 10 cents higher in 2015, and five cents higher in 2016. Even with the freeze, the EI account is expected to be in balance by 2016 due in large part to steady growth in full-time employment.  

“It is encouraging that the minister can freeze EI premiums and also meet his deficit reduction target in the EI account at the same time,” adds Myers. “It is a very good sign the economy is continuing to generate full-time jobs for Canadians. In fact, 245,000 more Canadians were employed in August of this year than last.”  

Canada’s manufacturing sector is among the largest employers in across the country with 1.8 million Canadians directly employed by the sector, earning $1.9 billion collectively each week. This makes manufacturers amongst the largest contributors to EI funding in the country. 

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