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Changes to the Employment Insurance (EI) program under Bill C-12, subsequently referred to as EI reform, include changes to eligibility and length of entitlement of EI claimants. While different in nature, the EI and the Social Assistance (SA) programs form the cornerstones of the Canadian social safety net. Aside for the potential for affecting the labour-market behaviour of individuals during an unemployment spell, changes to either program also have implications on federal and provincial expenditures. One prevailing concern is the transfer of caseloads from EI to SA associated with the possible changes to the generosity of EI after the 1996 reform. EI reform raises the possibility of changes to the rate at which EI recipients exhaust their claims will impact on their level of SA take-up. Similarly, those denied eligibility may also be pushed into relying on SA in greater number.

First, the issue of exhaustion is examined with a summary of characteristics of the different individuals affected. Section 2 then addresses changes in SA take-up rates.

Therefore, this monitoring report examines:

• the claim exhaustion rate of EI benefits before and after EI reform; and
• the take-up of social assistance before and after EI reform by UI/EI claimants and those who did not claim UI/EI.

Additional perspectives that are provided by this analysis stem from the inclusion of non-UI/EI claimants as it could serve as a basis of comparison for EI claimants and before and after comparisons to assess the impact of EI reform.