The federal government will hire hundreds of people as its spends an additional $60 million to help process the growing number of claims for employment insurance, Human Resources Minister Diane Finley said Tuesday.

Finley, who spoke to reporters in Ottawa, said the money will be used to hire extra staff and assist with automated claims processing.

It will also be used to help implement the extra five weeks of EI benefits and increased duration of work-sharing announced in the federal budget, she said.

Currently, 80 per cent of EI claims are processed within 28 days, said Finley, adding she expects that standard will be maintained.

"Unfortunately, there are more and more people getting laid off and the demand for EI is growing," she said.

"We've already hired several hundred, we'll continue to hire several hundred more. Whatever it takes to get the job done."

Finley said her department started hiring extra people months ago, including bringing back experienced employees who had retired or were loaned to other departments.

Demands to change eligibility

Unemployment dominated Tuesday's question period in the Commons, with all parties demanding that the government do more to help the unemployed and ease requirements to get benefits.

"The government is trying to patch EI with duct tape, while evading the real issue, which is eligibility," Liberal Leader Michael Ignatieff said. "Will the government adjust the eligibility requirements so that all Canadians, wherever they live, can claim EI when they need it?"

Prime Minister Stephen Harper responded that the government has put more money into employment insurance, expanded training, and increased the number of weeks people are eligible to collect.

NDP Leader Jack Layton said that while 1,310,000 people were unemployed in January, "57 per cent of those hard working Canadians who live by the rules, pay into the insurance fund, but needed help, can't get it."

Beneficiaries increase by 4.4%

Harper replied that the "vast majority of people, obviously, who have become unemployed are also eligible for employment insurance."

"No thanks to the NDP," he added, saying the party voted against the measure to increase eligibility by five weeks.

Statistics Canada reported Tuesday the number of people receiving regular EI benefits rose to 560,400 in January, up 4.4 per cent — or 23,700 — from December.

Over half the rise occurred in Ontario, greater than the province's 39.1 per cent share of the labour force.

Growth in the number of beneficiaries was especially strong in Alberta, British Columbia and Ontario, all of which registered month-over-month increases above the national average.

With files from the Canadian Press