Number of EI recipients reaches three-year high in July

Unemployed Canadians are increasingly turning to employment insurance, with the number of recipients hitting a three-year high this summer, Statistics Canada reports.

Source: Quinn Patrick

Unemployed Canadians are increasingly turning to employment insurance, with the number of recipients hitting a three-year high this summer, Statistics Canada reports.

Canadians receiving regular Employment Insurance benefits increased by 6,600 in July, bringing the total number to 552,000.

Between December 2024 and July, the number of beneficiaries increased by 13.2%.

July marked the highest number of Canadians relying on the service since the end of the COVID-19 pandemic, with 66,000 jobs lost that month.

Unemployment remains particularly high among young adults.

Youth employment fell by 34,000 jobs last month, a 0.7% decline, bringing the rate to 53.6%. Excluding the COVID-19 pandemic years of 2020-21, July marked the lowest youth employment rate since November 1998.

The problem is pervasive across all age groups. The Canadian economy lost more than 100,000 positions in July and August combined, bringing the total jobless rate to 7.1 per cent.

Provincially, the largest proportional increases were observed in Manitoba, followed by British Columbia, Quebec and Alberta.

EI recipients receiving regular benefits increased the most among those last employed in education, law, and social, community and government services.

“This was partially offset by a decline in the number of beneficiaries who last worked in trades, transport and equipment operators and related occupations,” reads the Statistics Canada report.

“Notable increases were also recorded on a year-over-year basis among those who last worked in business, finance and administration, as well as among those who last worked in sales and service occupations.”

Rising unemployment has contributed to Canada’s growing food insecurity problem, with one-quarter of households now struggling to afford food. This includes going entire days without food or worrying about running out of supplies.

According to a new report from Food Banks Canada, there has been a 40 per cent increase in poverty over the last two years.

The charity released its 2025 Poverty Report Card, giving Canada an overall failing grade of “D.”

The grade reflects the federal government’s efforts to reduce poverty.

“A clear picture that emerges from the data is the nationwide inadequacy of government support, which has worsened severely across the country,” said Food Banks Canada.