OTTAWA — The C.D. Howe Institute says reforms to employment insurance and moves to develop a more highly skilled workforce can help Canada's labour market adjust to weakened economic conditions.

The Toronto-based think-tank says the federal government should make changes to EI because the program only covers about half of unemployed Canadians.

The document's author, Craig Alexander, argues that Ottawa should replace its regionally based criteria for EI with eligibility and benefits rules that are uniform across the country.