Canadian Unemployment Insurance Amendments

laneous grauping used in the earlier tures in the preceding fiscal year; dis- including the introduction of a new tables); Food and Drug Administra- bursements during 1948-49 were 30 winter supplementary benefit pro- tion outlays have been transferred percent higher than in 1947-48. gram-by chapter 1 of the Statutes from “other” health programs to com- An increasing proportion of the of 1950, which received the Royal As- munity and related health services; total outlays for social security and sent on March 1.’ domiciliary care of veterans and care related purposes is being devoted to Coverage.-The amendments do of the chronically ill in State and local health and medical services. Where- not, with the partial exception to be institutions have been included under as in 1946-47 health and medical noted, affect the types of work that institutional and other care. services comprised 17.5 percent of all are covered, so that agricultural, do- Several changes have also been social security and related outlays, mestic, and permanent public em- made in the methods used to estimate in 194748 they accounted for 20.6 ployment remain among the excluded expenditures, so that even when the Percent, and in 1948-49, for 22.5 per- employments. However, the upper inclusions under a heading are un- cent. All health programs (with the earnings limit for insurability has changed, the results may be some- exception of wartime emergency ma- been raised from $3,120 to $4,800 a what different. The changes in esti- ternity and infant care, liquidation of year, and in this way an estimated mating procedure were significant for which began in July 1947) have 90,000 additional persons will be the Federal employment security pro- shown significant increases. This is added to the 2.5 million already gram, for State and local community particularly true of the nonservice covered. Contribution and benefit and related health services, and for programs, such as medical research levels remain unchanged for earnings hospital and medical care, new hos- and health manpower training, both in excess of $2,496 a year. pital construction, and institutional of which increased more than 160 Workers in lumbering, logging, and other care. percent between 1946-47 and 1948- and stevedoring are also covered by Identical changes in expenditure 49. Under the stimulus of the Hos- the amendments of 1950. The effect classifications and inclusions have pital Survey and Construction Act is to confirm coverage already been made for each of the three fiscal and the Veterans Administration achieved or initiated by orders in years to permit com.parison of the hospital program, and because of the council issued in 1946 (covering data (table). Total expenditures for backlog of construction and repair logging and lumbering in British the social security and related pro- work piled up during the war years, Columbia ) , 1948 (for stevedoring), grams in 1948-49 showed a 15.6-per- public hospital construction expen- and 1950 (logging and lumbering cent increase over those in 1947-48 ditures have increased from $85 mil- elsewhere than in British Columbia). and an 18.1-percent increase over lion in 1946-47 to $123 million in The latter order, by action taken 19464’7. Expenditures for the insur- 1947-48 and $294 million in 1948-49. February 23, brought an estimated ance programs alone increased from Expenditures in 1948-49 for medical 75,000 persons into the system on $5,572 million in 1947-48 to $6,175 mil- services to individuals were about 20 April 1. lion in 1948-49. Veterans’ benefits- percent greater than the amount Supplementary benefits.-The most principally readjustment allow- spent in 194748. important change is the addition of ances-declined by about $180 million, The increase in State and local a supplementary benefit program but this decrease was more than offset government outlays for social se- providing insurance payments to cer- by increases in other programs. The curity and related purposes during tain classes of unemployed workers- largest increase occurred in outlays the 3 years has been more marked estimated at about 100,000 persons- for employment security; unemploy- than the increase in Federal expendi- who are not eligible for regular ben- ment benefit payments by the States tures for the same purposes. In efit. The supplementary benefits are were 58 percent more than in the pre- 1946-47 the States and localities payable only from January l-March ceding year. This large increase re- spent $3.6 billion, or 36.5 percent of 31 of each year--that is, at the time flects the rise in the monthly average the total, but in 1948-49 their share of greatest seasonal unemployment of unemployment from 3.4 percent of had increased to 45.0 percent of total (for the first year, the benefit period the civilian labor force in the fiscal social security expenditures and rep- lasted until April 15, 1950). The year 194748 to 4.1 percent in 1948-49. resented outlays of $5.2 billion. This supplementary benefit amounts to 80 The outlays of the State temporary relative increase in State and local percent of the regular rate; it is pay- disability insurance programs went up expenditures is partly explained by able to the following groups: (1) 51 percent; the beginning of benefit the drop in expenditures in some of Persons who have exhausted their payments under the New Jersey law the Federal programs for veterans, benefit rights during the fiscal year was in part responsible for this in- but it also reflects increasing State (between March 31 and the date of crease. activity in the broad field of social claim) ; (2) persons with 90 daily The public aid programs and wel- security. contributions in the fiscal year but fare services all showed some in- fewer than the 180 contributions crease. Within these two categories, Canadian Unemployment expenditures under the Federal public 1 Canada, House of Commons, Bill 8, Insurance Amendments passed February 24, 1950; and U. S. De- assistance programs showed the larg- prt,meilt of State, Despatch from Lau- est dollar increase and one of the larg- Unemployment insurance in Can- rence A. Steinhardt, Embassy, Ottawa, est percentage increases over expendi- ada was amended in several respects- March 1. 1950. Bulletin, July 1950 17 needed to receive the regular benefits; ately preceding the claim, or 45 daily creased 1 cent a day. Since the Gov- (31 persons in logging and lumbering contributions in the 26 weeks preced- ernment contributes a sum equal to in any area of Canada where these ing the claim. Previously, the pay- one-fifth the total paid by labor and occupations were not previously cov- ment of 60 contributions since the last management, the amendment results ered (90 days’ employment in any 12 initial claim for benefit was sufficient. in a rise of two-fifths of a cent per months during the 18 months preced- The effect of the change is to require day per worker from the Government. ing the claim is required) ; and (41 a recent attachment to the labor mar- The Treasury is to meet the costs of persons in employment not formerly ket for eligibility. The basic statutory supplementary benefits for persons covered but that has been made in- condition of 180 daily contributions in not formerly employed and will un- surable within the year preceding the the 2 years preceding the claim is derwrite any deficit occurring in the claim (90 days’ employment during unchanged. supplementary benefit program. the fiscal year is required). Married women are added to the In addition the law takes into ac- Within the 3-month period in classes for whom the Unemployment count the generally increased level of which they are payable, the duration Insurance Commission may make reg- wage and salary rates by adopting a of supplementary benefits corresponds ulations imposing additional contri- new contribution schedule, as shown as closely as possible to the maximum butions and terms or restrict payment below, with fewer wage classes and statutory duration of regular benefit, of benefit in the event that anomalies with a higher maximum contribution which is one-fifth the number of con- would otherwise occur. This grant of than before. tribution days in the past 5 years, authority is designed to make certain minus one-third the number of benefit that the benefits are paid only to Contribution by- days in the past 3 years. Thus, those women who remain bona fide mem- Earnings A who have exhausted their benefit bers of the labor force following Employer Insured rights are entitled to receive supple- marriage. Less than $9.OOe-e- r.... $0.18 mentary benefits for the same dura- The old law did not permit payment $9.00~14.99..~..~..~. ___.... .24 tion as they did their regular benefit; of benefits to persons under age 16, 15.00-20.99.~~-~--~~--- ___-_ .30 21.00-26.99~~~~~~~~~~~______ .36 the other groups are entitled to bene- or to persons who had been in the 27.0%X3.99--.------- ____. -- .42 34.0047.99.-..------- ._____ .48 fit for one-fifth of the days for which lowest earnings group (earning less 48.00 or more- ____.______._ .54 contributions were paid in the fiscal than 90 cents a day) for more than year, or for a fifth of the days worked half the contribution year. Previ- (when no contributions were pay- ously the contributions in these cases Administration.-The membership able). were paid by the employer. The of the Unemployment Insurance Ad- Regular benefit.-Modifications are amended law authorizes payment of visory Committee is increased from also made in the system of regular benefits to these persons, who must six to eight persons, to permit addi- benefits.

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