The federal government has announced changes to employment insurance it says will better reflect the economy in Prince Edward Island.
Fisheries Minister Gail Shea announced on Thursday that, beginning in October, the island will be divided into two EI regions – a capital and non-capital region.
Shea says the change will strengthen the program's core principle that benefits are calculated based on local economic realities.
The federal government says the unemployment rate in Charlottetown has been consistently lower than in rural areas of the province.
It says between June, 2011, and June, 2013, the unemployment rate in the capital city was on average five points lower.