‘The outdated EI system is one of the greatest threats to Canada’s resiliency as unemployment remains elevated’
Canada’s employment insurance (EI) program is leaving more workers without support as the labour market shifts toward gig work, part-time roles, and contract employment, according to a new report from Food Banks Canada.
The report highlights that EI eligibility rules are designed for a shrinking segment of the workforce—those in stable, full-time jobs with a single employer. As more Canadians rely on flexible work arrangements, HR leaders face growing challenges in managing transitions and supporting employees who may not qualify for EI.
Food Banks Canada chief executive Kirstin Beardsley warned that the outdated system poses a serious risk to the country’s resilience. “The outdated EI system is one of the greatest threats to Canada’s resiliency as unemployment remains elevated and households struggle to keep up with the high cost of living,” she told CBC.
EI system misaligned with workforce trends
The organisation’s poverty report card states that “Canada’s employment insurance no longer serves the broader and shifting workforce as more people take up gig work or part-time jobs." At the centre of the problem is EI’s requirement that workers accumulate a set number of insurable hours within a fixed period.
For those with irregular schedules, multiple jobs, or contract work, meeting that threshold is often difficult—even if they are consistently employed. This leaves many workers excluded from the program despite facing income instability.
“This, in turn, excludes many workers who face greater income instability,” the report explains. The mismatch means that the very workers most vulnerable to economic shocks—those in precarious employment—are often the ones excluded from EI coverage.
Financial support and limitations
EI is intended to provide temporary financial assistance to Canadians between jobs, covering about 55 per cent of average insurable weekly earnings. For example, someone earning $68,900 annually would receive a maximum of $729 per week.
While the benefit amount remains consistent, the challenge lies in qualifying. Workers in full-time, permanent positions typically meet the requirements, but those juggling contracts or freelance assignments often fall short.
EI was originally designed to support workers in traditional employment arrangements. As the labour market evolves, the program has not adapted to reflect the realities of gig and part-time work, creating a widening gap between policy and practice, CBC reported.
Nigel Branker, chief executive of Securian Canada, previously told Canadian HR Reporter that gig work is now a structural part of the labour market. “One in five Canadians are participating in gig work each year, and that’s a pretty significant number,” he said, noting that more than seven million Canadians are involved.
H&R Block Canada, meanwhile, previously noted that there are 7.4 million Canadians — nearly one in four — who are part of the gig economy, with 90% using it as a side hustle for extra income.
Branker explained that the role of gig work has shifted from being a “side hustle” to a major source of income. “When we first did our research, people got about 15% of their total income from gig work. Just 18 months later, that’s up to 38%. Canadians are turning to gig work not for fun, but to strengthen their financial future or save for major life events,” he told Canadian HR Reporter in February.
On average, gig work accounts for just 15% of gig workers’ total income, but it is often described as the “make-or-break financial factor” that allows workers to meet basic needs or achieve savings goals, Securian Canada previously reported.
Employers can ease financial pressures
Branker added that employers should recognise the financial pressures driving workers into gig roles.
“Our advice to employers is to look at the why. Gig work is being used to manage affordability. Employers can help by providing more financial security, whether through living wage commitments, benefits coverage, or financial wellness programs,” Branker said.
Food Banks Canada argues that without reform, the program will continue to leave behind those most vulnerable. For HR leaders, this signals a need to consider supplemental supports such as transition assistance or financial counselling to bridge the gap.
The International Labour Organisation (ILO) opened its final round of negotiations today in Geneva on the first-ever binding international convention for platform workers — talks that will be watched closely by Canadian employers already navigating a rapidly shifting domestic regulatory landscape. The ILO's standard-setting committee is holding its final discussions from June 1–11 at the 114th International Labour Conference, with members aiming to agree on binding rules and recommendations by the close of next week.
