Ottawa left EI reform out of Budget 2023. Here’s why

The Liberal government says reforming the employment insurance program amid a slowing economy could drive up premiums for workers and employers.

The Liberal government left employment insurance reform out of the federal budget this week over concern that reforming the program amid a slowing economy could drive up premiums for workers and employers.

That’s according to a spokesperson for Employment Minister Carla Qualtrough, who said the federal government “remains committed to modernizing the EI system.”

“However, the current and near-term economic context caution against measures that could put pressure on EI premiums and we needed to be careful about any decision that could make it harder for workers and employers to make ends meet,” the spokesperson said in an email.

After the last federal election, Prime Minister Justin Trudeau handed out a mandate letter that tasked Qualtrough with bringing forward and implementing a plan to “modernize the EI system for the 21st century” by summer 2022.

As the summer was ending, the minister promised reform was coming soon. “By the end of the year, you’ll know what the vision for EI is,” she said in September.

There was scant hope that, several months into 2023, the federal budget would finally hint at the government’s plans. Sure enough, its narrow focus on the clean economy and health care left other agenda items off the table.

The federal government, which is now expecting a mild recession this year, appears to be avoiding EI reform right now so as to not drive up the cost of the program. A recession would likely come with job losses. Expanding eligibility now could result in even more people tapping into the program.

But with this latest delay, labour groups and experts are getting impatient.