There is still no requirement in the draft bill to look for work. But the message is clear – anyone who can work, and is able to find a job, should do so
Even this most prodigal of governments knows it can’t keep spending $3.6 billion a week on the Canada Emergency Response Benefit.
The first signs of that game plan are evident in legislation the government is currently negotiating with the opposition parties. Each period of eligibility will be shortened to two weeks from four, and the amount a worker can earn without clawback, will be reduced to $500 from $1,000.But the message is clear — anyone who can work, and is able to find a job, should do so.
But the emergency benefit is set to run out on July 6 for those who started claiming it on March 15. However, the alternative — using the EI account — could create its own problems. If the account moves into deficit, it would trigger premium increases . EI premium increases would act like a tax increase on low and middle earners and act as a disincentive to employers to hire more workers. Ottawa has to juggle competing priorities — it must transition as many workers as possible off CERB to reduce income replacement payments and allow labour markets to re-adjust to the new reality.
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