After months of weak job growth, the Harper government’s cutting the Employment Insurance premium rate for small business.

As of January 1st, the rate drops from $1.88 per $100 of earnings to $1.60.

Larger firms will continue paying premiums based on the $1.88 rate.

Because employers pay 1.4 times the rate, Ottawa says the 28-cent reduction is equivalent to a reduction of 39-cents per $100 of earnings.

Federal Finance Minister Joe Oliver says the ”Small Business Job Credit” will save small businesses more than $550-million over the next two years.

It’ll be administered as an automatic credit through Canada Revenue Agency.

As a result, it means no reductions in EI premiums paid by workers.

Oliver denies the move’s in response to concern about the economy.

”It’s not a sign of worry.  It’s a sign of confidence that we’re continuing on the right path.”