Make Prince Edward Island One Employment Insurance Region

Summary#

This bill makes Prince Edward Island (PEI) a single Employment Insurance (EI) economic region for the parts of the EI law that use regions to apply rules. It changes the Employment Insurance Act and the Employment Insurance Regulations so the whole province is treated as one region, instead of Charlottetown and the rest of PEI being separate regions (Bill Clause 1; Clause 2; Clause 3).

• PEI moves from 2 EI regions to 1 province-wide region (Bill Clause 2; Clause 3).
• A single Island-wide unemployment rate will be used when EI rules require a regional rate under Part I (benefits) and Part VIII (Bill Clause 1; EI Act, Part I).
• This can change who qualifies for regular EI and for how many weeks, because EI uses the regional unemployment rate to set required work hours and benefit duration (EI Act, Part I; EI Regulations, Schedule I).
• The bill does not change EI premium rates or benefit formulas; it changes only the region boundary used in applying those rules (Bill Clauses 1–3).

What it means for you#

• Households and workers in PEI:

  • Regular EI claims (after job loss) will use one Island-wide unemployment rate to set how many insurable hours you need and how many weeks of benefits you can get (EI Act, Part I; EI Regulations, Schedule I).
  • If you live in Charlottetown, you will no longer be assessed using a Charlottetown-only rate. If the Island-wide rate is higher than Charlottetown’s former rate at a given time, it can mean fewer hours needed and more weeks; if lower, the opposite (mechanics of EI’s variable entrance requirement under Part I).
  • If you live outside Charlottetown, you will no longer be assessed using a “rest of PEI” rate. If the Island-wide rate is lower than the former non-Charlottetown rate at a given time, it can mean more hours needed and fewer weeks; if higher, the opposite (EI Act, Part I).
  • Special EI benefits (such as maternity, parental, and sickness) have fixed entry rules in the Act and do not depend on the regional unemployment rate; this boundary change does not affect their entry thresholds (EI Act, Part I).
  • The bill sets no explicit start date; it provides only the new regional definition (Bill Clauses 1–3).

• Businesses and employers:

  • No change to EI premium rates or how you remit them; those are set nationally and are not altered by this bill (Bill Clauses 1–3).

• Service users and administrators:

  • Service Canada will apply one regional unemployment rate across PEI when administering EI provisions that rely on regions (Bill Clause 1; EI Regulations, Schedule I).

Expenses#

Estimated net cost: Data unavailable.

• No appropriation or new spending authority is included; the bill changes regional definitions in the Act and Regulations (Bill Clauses 1–3).
• Program costs to the EI Operating Account could go up or down depending on how a single Island-wide unemployment rate compares to the former two rates at any given time (mechanical effect of Part I rules). Data unavailable.
• Administrative transition costs (systems, communications) are not provided. Data unavailable.

Proponents' View#

• Equal treatment across a small province: One region means workers on the Island are assessed under the same regional unemployment rate for EI rules, reducing boundary differences within PEI (Bill Clause 2; Clause 3).
• Simpler administration: Replacing two entries with one in the Act’s Schedule VI and the Regulations’ Schedule I reduces regional complexity when applying Parts I and VIII (Bill Clauses 2–3).
• More predictable access for some claimants: When the Island-wide unemployment rate is higher than Charlottetown’s former rate, urban claimants could qualify with fewer hours and receive more weeks under the existing EI tables (EI Act, Part I).
• Aligns the law with an Island-wide labour market reality, rather than dividing by the Charlottetown census agglomeration boundary (Bill Clause 2; Clause 3).

Opponents' View#

• Possible benefit reductions for some: When the Island-wide unemployment rate is lower than the former “rest of PEI” rate, some rural claimants could need more hours and receive fewer weeks than before (EI Act, Part I).
• Weaker targeting to local conditions: Combining areas may blunt EI’s design to reflect local labour markets, since EI uses regional unemployment to adjust entry and duration (EI Act, Part I).
• Fiscal uncertainty: No fiscal analysis is provided; changing eligibility and duration across claimants could shift EI benefit outlays up or down, with unknown net impact on the EI Operating Account. Data unavailable.
• Transition risks: Updating systems, guidance, and public information to one region could cause short-term confusion if timing and communication are not clear. Data unavailable.