Description: In an effort to spur small businesses to increase hiring, Finance Minister, Joe Oliver, announced a cut in employment insurance premiums for small businesses. It is expected that this will reduce small businesses’ EI costs by 15 per cent.

Source: CBC

Date: September 11, 2014

Video Link: http://www.cbc.ca/player/News/Business/ID/2514908320/

Questions for Discussion:

1. Will this cut spur small businesses to increase hiring?
2. Can small businesses simply pocket this increased savings rather than hire more employees?
3. Is there a way by which Ottawa can ensure that these breaks will definitely increase hiring?