Georgetti Says Improved EI Best Way to Stimulate Economy

OTTAWA, ONTARIO, Jul 10 (MARKET WIRE) --
An improved Employment Insurance program would provide a better stimulus
to the economy than anything the federal government has tried so far,
says Canadian Labour Congress President Ken Georgetti.

He was responding to the release by Statistics Canada of labour force
figures for June 2009, when a net of 47,500 workers lost their full-time
jobs. There are now about 1.6 million unemployed Canadians, an
unemployment rate of 8.6%. Fewer than half of the unemployed are actually
collecting benefits due to rules, regulations and obstructions embedded
in the EI system.

"This government can't seem to get its infrastructure projects off the
ground but it could stimulate the economy overnight by improving EI
benefits," Georgetti says. "We know the unemployed spend every dollar
that they receive directly into the local community. Improving EI is the
best and easiest way to kick start the economy."

Georgetti says a recent decision by the Prime Minister and Opposition
Leader to create yet another committee to study EI is a mistake. "We
already know what has to be done and putting off changes for months will
only hurt unemployed Canadians, their families and their communities.
Many people who lost their jobs last fall have already used up their EI
benefits. They are going to end up on social assistance and at food
banks."

Georgetti says there is a growing consensus that EI must be improved.
"Our recommendations have been supported by premiers, mayors, city
councillors and by editorial writers from major newspapers. The federal
government has to fix Employment Insurance now - not next fall or winter."

The CLC is calling on Ottawa to:

- change accessibility rules to provide regular EI benefits on the basis
of 360 hours of work, no matter where people live and work in Canada.

- make all workers eligible for up to 50 weeks of EI benefits.

- raise benefits immediately to 60% of earnings calculated on a worker's
best 12 weeks of earnings.

Quick Analysis from Senior Economist, Sylvain Schetagne

The deterioration of the labour market continues (-7,400). In June 2009,
47,500 full-time workers were laid off but other part-time
jobs/self-employed jobs were created. Overall, 454,000 full-time jobs
have disappeared since last October.

The proportion of Canadians forced to work part-time or become
self-employed is increasing rapidly. Since October 2008, the number of
Canadians working part-time increased by 84,000, now representing 19.5%
of the workforce. Part-time work was 18.6% of the workforce in October
2008. The number of self-employed Canadians increased by 37,000 in June
only, and self-employment is up 1.5% since last October.

Canada's unemployment rate increased from 8.4% in May to 8.6% in June,
the highest level in 11 years. In June, the number of unemployed
Canadians increased by 43,500. Canada now has 1,592,000 unemployed men
and women. The total number of unemployed has increased by 440,000 since
October 2008. This represents an increase of 38.3% since last October.

The manufacturing sector continues to be disproportionately hit by job
losses. In June 2009, another 25,700 jobs in manufacturing were
eliminated. In Canada, 567,000 jobs in manufacturing have been eliminated
since November 2002.

Finally, the unemployment rate for workers aged 15 to 24 is rising
rapidly, reaching 15.9% in June 2009. Just in June 2009, 33,300 young
working Canadians lost their job, and about 6.4% of all jobs performed by
youth disappeared since last October. Also, the labour market for
students is much worse than last year. When compared to June 2008, 43,000
jobs usually performed by students aged 20 to 24 years old have
disappeared.

The Canadian Labour Congress, the national voice of the labour movement,
represents 3.2 million Canadian workers. The CLC brings together Canada's
national and international unions along with the provincial and
territorial federations of labour and 130 district labour councils. Web
site: www.canadianlabour.ca

Contacts:
Canadian Labour Congress
Sylvain Schetagne
Senior Economist
613-526-7412

Canadian Labour Congress
Jeff Atkinson
Communications
613-863-1413

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