Social safety net

Spurred by the millions of Canadians who were thrown into poverty when there was no work to be found during the Great Depression, governments have erected social programs to assist those unable to find work. Canada's overall social safety net for labour—that includes other guarantees such as workers' compensation and worker rights—has evolved from these social programs.

The federal employment insurance and pension plans are funded by deductions from workers' paycheques. Workers' compensation programs—to assist those injured on the job—are paid for by employers. These payroll taxes have grown significantly in the last few years, leading some employers to suggest that they discourage job creation. Payroll taxes, however, are lower in Canada than in many other Western industrialized nations.