The evolution of the Unemployment Insurance Programme since 1940 has led to the abandonment of the intended insurance nature of the programme. As a result, it can no longer be considered solely an income protection scheme. Rather, it has evolved into an income maintenance plan aimed at supplementing the income of seasonal workers in high unemployment regions. As a consequence, there has been an interprovincial transfer of unemployment insurance funds from low to high unemployment regions. The regional characteristics of the programme have also distorted the structure of labour markets in high unemployment regions by attracting workers in seasonal industries therefore maintaining unemployment rates high.

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