While there is a general understanding that individuals in Newfoundland and Labrador receive significant income support from the federal government, the chart above puts it into a perspective that is nothing short of chilling.Employment insurance currently accounts for eight percent of typical personal income in the province. That's the highest level in Canada.
While the increase in per capita employment insurance (EI) payments to Newfoundlanders and Labradorians begins to rise noticeably in the mid-1970s, the rate skyrockets after the creation of the 200 mile exclusive economic zone and the consequent expansion of the highly seasonal fish processing industry. That occurred in 1977.
Curiously, as fish stocks depleted, the per capita EI amounts climb dramatically until the imposition of the cod moratorium in 1992.
After a period of decline in the 1990s (exclusive of TAGS and NCARP payments), the rates of employment insurance per capita climbed again in 1999. It continues to climb. This coincides with the end of federal support payments specifically made in relation to the cod moratorium (NCARP/TAGS). It also coincides with a provincial government policy which saw plants shift production to species such as shrimp.
Update:
The same figures, given in constant dollars, compared with the national average.
