The number of people receiving regular employment insurance benefits rose by 54,300 or 7.1 per cent in September after two months of declines.

Job seekers at an employment office in September. The number of Canadians receiving EI benefits was up more than 7 per cent during the month. (Canadian Press)

The largest increases were in Ontario, Alberta and British Columbia, Statistics Canada said Tuesday.

The total number of beneficiaries reached 818,000, up 63.5 per cent from October 2008, when the agency says employment hit its peak.

The number of people receiving EI had increased sharply between October and June, before moving onto a downward trajectory.

Several cities recorded more than double the number of beneficiaries than a year ago, with the fastest year-over-year increases in Calgary and Edmonton.

Ontario hit hard

In Ontario, the number of beneficiaries in September rose by 22,500, or nine per cent, after declines in July and August.

Ontario has suffered the fastest employment decline since the start of the labour market downturn, with over half of the decrease coming in its manufacturing sector.

The number of people receiving regular EI benefits in Ontario has risen by 117,100, or 75.7 per cent, since October 2008.

The increase in EI recipients is disproportionately skewed toward young workers. Those under 25 posted the fastest year-over-year increase, up 91.3 per cent or 28,400. Young male beneficiaries more than doubled from 20,100 in September 2008 to 41,100 in September 2009, while the number of young women drawing EI rose by 7,500 or 68.2 per cent.

Although the total number of beneficiaries was up, the number of initial and renewal claims fell five per cent in September, down by 14,700 to 280,700. That continued a downward trend begun following the most recent peak in May. Most provinces saw declines in initial and renewed claims.