The number of Canadians collecting regular employment insurance benefits grew by 65,300, or more than 10 per cent, in March, marking the biggest monthly increase since the job market began to deteriorate in October.

Statistics Canada said Tuesday that roughly 681,400 people were receiving regular EI benefits in March.

The biggest increases were seen in Alberta and British Columbia, where the month-over-month jumps were both above the national average.

The number of people on regular EI benefits in Alberta rose 32.1 per cent to 42,200 in March, marking the fastest monthly increase for the province on record.

B.C. marked a similar milestone, with the number of people on EI rising by 26.7 per cent to 82,200.

While the number of people getting benefits climbed in March, the number of initial and renewal claims received that month edged down 1.9 per cent.

Economists point out that the employment insurance statistics only reflect those people actively engaged in the search for new work.

The Organization of Economic Co-Operation and Development estimated the number of discouraged workers in Canada at less than 20,000 in 2007.

The Paris-based think-tank defines discouraged employees as people who believe there is not any work available to be found.

Men and women who decide to return to school rather than spend time in what they believe will be a fruitless work search also count as absent from the workforce in some definitions.

Political hot potato

The ruling Conservative government and the federal Liberals and New Democrats are in a tough fight over who can claim employment insurance and for how long.

Earlier in the week, the Harper government said it would ease the restrictions on EI so that "long-tenured' workers could get payments while on training programs.

The Liberals, who have threatened to force an election on the issue, said they want Canadians across the country to qualify for EI benefits after they have worked 360 hours. Currently, the number of qualifying hour varies by region.

Soaring unemployment

Most industrialized economies have seen their unemployment levels shoot up as the global economy has tumbled in the past 10 months.

Canada now faces a jobless rate of eight per cent in April, up from 6.1 per cent in June 2008, prior to the continental credit crunch.

The United States has endured an even steeper rise in its unemployment levels. April saw 8.9 per cent of Americans who wanted to work without a job.

That compared to a U.S. jobless rate of 5.6 per cent in June 2008.