Canada: Work sharing: an alternative to lay offs

Canada has a long experience in the application of work sharing, which is integrated with the unemployment insurance system since 1982. A recent evaluation considers it has been a useful instrument to avert lay-offs, it is mostly applicable in manufacturing and distribution jobs, and has both monetary and non-monetary benefi ts for employers and individuals. On the negative side, it is recognized that these are costly programmes and half of the workers involved were laid off within six months after the end of the programme. During the present crisis enterprises and workers have made use of this instrument. The duration of the benefi t was extended and administrative requirements simplified in order to facilitate access. By mid September 165.104 employees were covered, which can be compared to an estimated 300.000 jobs lost since January.