Chapter 16 Media Article

"B.C. records largest increase in EI recipients", Vancouver Sun, February 25, 2009

This article talks about how all of Canada's provinces had increases in Employment Insurance recipients, but British Columbia had the country's largest increase amount. Compared to the same month in 2008, B.C's EI (Employment Insurance) recipients went up by a large amount of 33.2%; Alberta's increased by 30.3%, and Ontario's by increased 29.6%. From December 2007 to December 2008, there was a 79 100 increase in the number of Canadians receiving EI benefits. The number of men receiving benefits increased more than women. Gilles Groleau, an economist, said that B.C's numbers showed a "U-curve", beginning with a high number of EI recipients in 2005, then dropping quite a bit, and then increasing a lot in 2008. Since the economic crisis in 2008, the numbers have been steadily increasing.

Chapter 16 talks about payroll accounting and the different deductions made from payrolls. Chapter 16 relates to this article by showing how employers and employees each pay for portions of Employment Insurance. Deductions are made from the employees’ pay cheques into an Employment Insurance fund. If a worker who sufficiently contributed to the fund becomes unemployed, they are able to receive payments out of the fund. Employers are also required to contribute in paying for portions of the Employment Insurance fund. Employers contribute 1.4 times the amount contributed by employees.

I think that the country’s unemployment rates will continue to increase as the economy continues to fall. In my opinion, the government should try to improve this situation by providing more jobs and opportunities for people so that they do not have to become unemployed. Such a huge number of Employment Insurance recipients will take out a lot of money from the government every month, causing the economy crisis to worsen. I think the best way to help the economy is to try to minimize the unemployment rates so that everyone has money to earn and spend, therefore heating up the economy. Hopefully those unemployed will try their best to look for new jobs, instead of waiting for the government to pay them their monthly amount of EI.

http://www.vancouversun.com/records+largest+increase+recipients/1326494/story.html