In 1997, Government made changes to the Unemployment Insurance system and renamed it Employment Insurance. However, anyone working less than 14 hours a week cannot accumulate the required number of hours because it must be done within a maximum of 52 weeks. The situation is severe for women who have a greater chance of being on the margins of the labour force, such as women with disabilities, Aboriginal women, visible minority women, young women and women re-entering the labour force. Maternity, parental and sickness benefits are paid through the Employment Insurance system, and are subject to the same restrictions. Not only have eligibility requirements been tightened to exclude more people, mainly women, but benefit levels have been slashed.
Women tend to earn less than men on average.
Benefit levels are geared to wage levels, therefore women receive less in benefits even if they do qualify. The problem is not a lack of funds for Employment Insurance. Over half of the decline is due to changes in eligibility requirements made since 1990. This is particularly frustrating for women's organizations, who pointed out every way in which the changes would harm women, and why, before the legislation was passed. They were ignored by decision-makers.