Evaluation of the Apprenticeship Grants

On this page

• Highlights
• Summary of key findings
• Management response and action plan
• Role of government
• Recommendation
• Annex 1 – Profile of grant recipients
• Annex 2 – Apprenticeship Grants logic model
• Annex 3 – Lines of evidence
• Annex 4 – Description of lines of evidence
• Annex 5 – Limitations
• Annex 6 – Financial barriers faced by apprentices
• Annex 7 – Other barriers or factors affecting apprenticeship progression and completion.
• Annex 8 – Factors affecting take-up rates
• Annex 9 – Awareness rate by trade group
• Annex 10 – Bibliography

Alternate formats

List of tables

• Table 1: Description of the Apprenticeship Grants
• Table 2: Profile of Apprenticeship Grants recipients by gender
• Table 3: Profile of Apprenticeship Grants recipients by province
• Table 4: Profile of grant recipients by demographics
• Table 5: Mean of the profile of grant recipients
• Table 6: Cost of technical training by province/territory

List of figures

• Figure 1: Proportion of National Apprenticeship Survey 2015 saying that the grants encouraged them to complete the apprenticeship
• Figure 2: Apprenticeship Grants help me cover the costs of apprenticeship training
• Figure 3: Proportion of Grants recipients receiving support from Employment Insurance and/or Canada Apprenticeship Loan by year
• Figure 4: Proportion of Grants recipients receiving support only from the Apprenticeship Grants from 2007 to 2016, by gender
• Figure 5: Reasons for not completing an apprenticeship for women
• Figure 6: Reasons for not completing an apprenticeship for Indigenous
• Figure 7: Apprenticeship Grants take-up rate
• Figure 8: Awareness rate and application rate of Apprenticeship Grants by gender and Indigenous status
• Figure 9: Reasons for not completing apprenticeship by gender and Indigenous status
• Figure 10: Awareness rate of Apprenticeship Incentive Grant by year
• Figure 11: Awareness rate of Apprenticeship Completion Grant by year
• Figure 12: Awareness and take-up rates of Apprenticeship Grants by trade group

Highlights

Summary of key findings

The Apprenticeship Grants contribute to the decision to continue in, and ultimately complete, an apprenticeship training. However, the grant's incentive is perceived to be limited, as a majority of key informants and a vast majority of focus groups participants view the Apprenticeship Grants as a "bonus" and not as an incentive.

Financial burdens continue to be an issue for apprentices, especially for some under-represented groups, such as women and the Indigenous population.^{Footnote 3}

Apprentices face significant non-financial barriers such as job instability, lack of access to apprenticeship training, unsupportive employers and a stigma regarding women entering the trades as a career choice.^{Footnote 4}

Apprenticeship Grants recipients also received support from Employment Insurance and the Canada Apprentice Loan in various degrees.

Usage of the Apprenticeship Grants, the Canada Apprentice Loan, and Employment Insurance varies by gender and region. For instance, women are more likely to receive support only from the Apprenticeship Grants.

Employment Insurance is perceived by key informants to be a significant support, especially for apprentices.

Awareness of both the Apprenticeship Incentive Grant and Apprenticeship Completion Grant varies across gender and trade groups. Awareness of the grants is lower for women and in some trades, such as hairstylists and cooks, where women are over-represented.

Take up for the Apprenticeship Incentive Grant has decreased from 74.8% to 65.7% between 2010 and 2018 while take-up for the Apprenticeship Completion Grant has decreased from 85.9% to 73.3% between 2011 and 2018.

Many factors contributed to challenges regarding the take-up rates. Grant recipients learned about the grants once they entered their apprenticeship program rather than prior to the application period as intended^{Footnote 5}. Most of the eligible recipients who did not apply for both grants mentioned that it was because they believed they were not eligible. Some recipients spoke about the application process being confusing and having too many steps.

The majority of key informant interviewees indicated that the Apprenticeship Grants do not help under-represented groups enter apprenticeship training.^{Footnote 6}

Management response and action plan

Role of government

In 2015, 4 million people in Canada worked in skilled-trade occupations, an estimated 22.1% of employed Canadians.^{Footnote 9}

Completion of apprenticeship can still be a challenge for many apprentices and it can also vary significantly across jurisdictions and trades. Key factors affecting completion include barriers such as financial constraints.

Apprentices who completed their programs are more likely to find employment and have, on average, higher earnings.^{Footnote 10}

80.8% of completers have a permanent job compared with 77.0% of discontinuers.

Those who completed an apprenticeship also have a higher average annual income at $69,512 and hourly wage $33/hour than those who have not completed one at $59,782 annually and $28/hour, respectively.

There is notable under-representation of women, immigrants and visible minorities in apprenticeship programs. For instance, women accounted for 9% of Red Seal apprentices and only 5% when more "traditional" trades, such as baker and hairstylist, are removed.^{Footnote 11}

The Grants are some of several financial supports available to apprentices.^{Footnote 12}

Other than the Apprenticeship Grants, apprentices are eligible to apply for Employment Insurance benefits if they leave their job to attend full-time block release training.^{Footnote 13}

Since 2015, apprentices registered in a designated Red Seal trade apprenticeship with their province or territory (except Quebec) are eligible to apply for the Canada Apprentice Loan. This is an interest-free loan of up to $4,000 per period of technical training with a minimum request of $500.

The Government of Canada also offers tax measures to Red Seal and non-Red Seal apprentices through the Canada Revenue Agency, such as the Tradesperson Tools Deduction, the Apprentice Mechanic Tools Deduction, the Tuition Tax Credit for Certification Examination Fees and the Interest Paid on Student Loans.

There is support available through Provincial/Territorial programs for both apprentices and employers in Red Seal and non-Red Seal trades in excess of the federal financial supports.

The exact type and amount of support varies by jurisdiction and most provinces/territories - excluding Newfoundland and Labrador and Quebec - have grants to offset tuition costs and funding support to partially cover costs during technical training.^{Footnote 14}

Apprentices face multiple costs while enrolled in an apprenticeship program. These costs, especially for tools, can be extensive, increase debt, and delay the purchasing of basic needs.

Most of the recipients (81.5%) agreed that the grants helped them to cover the costs associated with their apprenticeship.

Apprentices have to pay tuition fees for technical training between $0 and $1,500 for a 4 to 12 week block of training.

They also have to pay for books, ancillary fees, tools, and living expenses for those needing accommodations for training.^{Footnote 15}

Purchasing tools required large investments. As a result, apprentices incurred debt and delayed purchasing important necessities.^{Footnote 16}

Financial burdens vary based on a number of factors, including employers' supports, union membership and/or family's support.^{Footnote 17}

The Grants have made a limited contribution towards attracting individuals to apprenticeships due in part to lack of awareness of the program.

Recipients indicated that almost all did not know about the Apprenticeship Grants until they became apprentices. Therefore, the grants have a limited impact on their decision to enroll in an apprenticeship.^{Footnote 18}

Almost all participants stated that the Apprenticeship Incentive Grant and the Apprenticeship Completion Grant were provided after completion rather than when support were most needed during the technical training.^{Footnote 19}

Women participants indicated that the grants had no impact on their decision to enter an apprenticeship program.^{Footnote 20}

Indigenous participants mentioned that the grants had little impact on their decision to enter an apprenticeship program.^{Footnote 21}

The majority of key informant interviewees from employer associations indicated that the Apprenticeship Grants do not help under-represented groups enter apprenticeship training.^{Footnote 22}

The Grants contribute to the decision to continue in and ultimately to complete apprenticeship training.^{Footnote 23 Footnote 24}

72.5% of grant recipients agree that the Apprenticeship Grants encouraged them to complete the apprenticeship.

Females (80.6%), apprentices with a university certificate or diploma (77.7%), cooks (83.5%) and hairstylists (87.4%) felt more encouraged to complete the apprenticeship.

A majority of key informants view the Grants as a "bonus" and not as an incentive. A view also shared by a vast majority of focus group participants.

Text description of Figure 1

Type of apprentice	Strongly agree	Agree	Disagree	Strongly disagree
Total apprentices	26.3%	46.2%	22.4%	5.0%
Male	25.3%	46.5%	23.1%	5.2%
Female	36.8%	43.8%	16.3%	3.1%
Indigenous	32.7%	41.1%	22.1%	4.1%

Source: National Apprenticeship Survey 2015

The financial barriers faced by apprentices can be even larger for some under-represented groups, such as women and Indigenous people.

Women mentioned facing additional financial barriers such as childcare expenses, greater out-of-pocket expenses for tools and wage disparities created by sexist hiring practices.^{Footnote 25}

Women are more likely than men to feel that the Apprenticeship Grants help them cover the costs of their apprenticeship training.^{Footnote 26} Since December 2018 women apprentices can receive up to $6,000 in lifetime grants with the Apprenticeship Incentive Grant for Women.

Indigenous peoples faced financial barriers related to additional cost to accessing an apprenticeship training program since they are more likely to live in remote areas.^{Footnote 27}

Disabled recipients (73.7%) are the least likely to agree that the grants help to cover the costs associated with their apprenticeship, although they represent roughly 1% of the recipients.^{Footnote 28}

Text description of Figure 2

Type of apprentice	Agree	Disagree
Male	81.4%	18.5%
Female	82.6%	14.5%
Indigenous	78.8%	19.6%
Total apprentices	81.5%	14.7%

Source: Statistics Canada, National Apprenticeship Survey 2015

Grant recipients received other financial supports including Employment Insurance and/or the Canada Apprentice Loan.^{Footnote 29} However, about half of the grant recipients were using these opportunities.

In 2016, 48.8% of the grant recipients were not using other federal financial supports beyond the Apprenticeship Grants limiting their financial capacity to complete an apprenticeship.^{Footnote 30}

There is a perception that Employment Insurance is the most significant support in alleviating financial pressures especially for trades that are seasonal and for which loss of employment can cause hardship.^{Footnote 31}

Employment Insurance is also perceived to be a significant support for apprentices, who tend to be laid off more frequently than journeymen.^{Footnote 32}

Employment Insurance is said to not come in time to reduce shortfalls in income during the technical training.^{Footnote 33}

Text description of Figure 3

Year	Apprenticeship Grants only	Apprenticeship Grants and Employment Insurance	Apprenticeship Grants and Canada Apprentice Loan	Apprenticeship Grants, Employment Insurance, Canada Apprentice Loan	Total recipients
2007	38.0%	62.0%	n/a	n/a	17,032
2008	38.8%	61.2%	n/a	n/a	42,274
2009	38.9%	61.1%	n/a	n/a	54,127
2010	49.9%	50.1%	n/a	n/a	61,925
2011	49.2%	50.8%	n/a	n/a	58,190
2012	48.8%	51.2%	n/a	n/a	59,196
2013	48.1%	51.9%	n/a	n/a	57,707
2014	47.4%	49.3%	1.1%	2.2%	58,297
2015	44.2%	47.9%	1.8%	6.1%	60,870
2016	48.8%	43.2%	2.9%	5.1%	57,735

Source: ESDC: Apprenticeship Grants, Canada Apprentice Loans and Employment Insurance Administrative Data. Note that the Apprenticeship Incentive Grant was introduced in 2007, the Apprenticeship Completion Grant was introduced in 2009 and the Canada Apprentice Loan started in 2014.

There are differences in the use of financial supports across recipients.^{Footnote 35}

In 2016, 61.7% of women recipients were not using other federal financial supports beyond the Apprenticeship Grants compared to 45.5% of men.^{Footnote 36}

There is an East-West distinction in terms of pattern of use of the various support measures.

Recipients from Newfoundland and Labrador, Prince Edward Island, Nova Scotia and New Brunswick tend to rely more on Employment Insurance.

Recipients from Manitoba, Saskatchewan, Alberta and British Columbia tend to rely less on Employment Insurance and slightly more on the Canada Apprentice Loan.^{Footnote 37}

There are large disparities in term of Employment Insurance usage during the technical training across trades groups. For instance, around 10% of hairstylists used Employment Insurance compared with 65% of carpenters and construction electricians. This is mainly due to differences in timing of technical training for different apprenticeship programs.^{Footnote 38}

Text description of Figure 4

Year	Women	Men
2007	34.5%	54.3%
2008	34.3%	57.4%
2009	35.2%	58.3%
2010	46.4%	67.0%
2011	45.4%	67.9%
2012	45.1%	65.8%
2013	44.1%	64.2%
2014	43.3%	63.3%
2015	40.3%	59.7%
2016	45.5%	61.7%

Source: ESDC: Apprenticeship Grants, Canada Apprentice Loan and Employment Insurance Administrative Data

Apprentices face significant non-financial barriers, such as job instability and unsupportive employers.

Factors limiting decision to progress and complete apprenticeship:

• lack of access to education in their community
• unsupportive employers
• having to balance work, training and personal life^{Footnote 39}

Three main reasons for not completing their apprenticeship:

• job instability (22.0%)
• received a better job offer (20.3%)
• financial constraint (18.4%)^{Footnote 40}

There is still a stigma for women entering the trades as a career choice.

The main reasons for women not completing their apprenticeship are personal or family issues (24.0%), financial constraints (15.8%) and other (15.6%).^{Footnote 41}

For women additional non-financial barriers include entering a male-dominated workforce and not being taken seriously.^{Footnote 42}

Maternity leave exacerbated gaps in career development especially since employers do not like to see gaps in apprentices' progression.^{Footnote 43}

Text description of Figure 5

Financial constraints	Received a better job offer	Job instability	Harassment or discrimination	Personal or family issues	Other
15.8%	12.6%	12.8%	8.8%	24.0%	15.6%

Source: National Apprenticeship Survey 2015

Indigenous people tend to face unique barriers as living in remote areas further limit their access to education and jobs.

The main reasons for Indigenous people not completing their apprenticeship are financial constraints (29.0%), received a better job offer (21.1%) and personal or family issues (17.5%).^{Footnote 44}

For Indigenous participants the main barrier to enter an apprenticeship is a lack of access to jobs. This barrier may be exacerbated by the fact that some Indigenous apprentices live in remote areas.^{Footnote 45}

Text description of Figure 6

Financial constraints	Received a better job offer	Job instability	Harassment or discrimination	Personal or family issues	Other
29.0%	21.1%	18.9%	3.3%	17.5%	10.5%

Source: National Apprenticeship Survey 2015

The Apprenticeship Incentive Grant and Apprenticeship Completion Grant take-up rates fluctuates between 65.7% and 89.7%.

The take-up rate for the Apprenticeship Incentive Grant decreased by 9.1 percentage points when comparing 2010 to 2018.

The take-up rate for the Apprenticeship Completion Grant decreased by 12.6 percentage points when comparing 2011 to 2018.^{Footnote 46}

Text description of Figure 7

Year	Apprenticeship Incentive Grant take-up rate	Apprenticeship Completion Grant take-up rate
2007 to 2008	41.7%	n/a
2008 to 2009	67.0%	n/a
2009 to 2010	74.8%	56.5%
2010 to 2011	75.5%	85.9%
2011 to 2012	74.3%	81.9%
2012 to 2013	70.5%	89.7%
2013 to 2014	69.1%	88.4%
2014 to 2015	66.1%	74.2%
2015 to 2016	65.7%	75.5%
2016 to 2017	69.1%	78.4%
2017 to 2018	65.7%	88.4%

Many factors negatively impact Grant take-up rates, including the perception that information is confusing.

A majority of the grant recipients learned about the grants once they entered in their apprenticeship. They became aware of the grants from either their instructor or through the college.^{Footnote 47}

Those who did not apply to the Apprenticeship Incentive Grant (24.7%) and Apprenticeship Completion Grant (32.7%) mentioned that they did not apply because they believed they were not eligible.^{Footnote 48}

A barrier for apprentices applying for the Apprenticeship Grants is having to supply 'Protected B' paper documents by mail and not electronically, which can take up to two weeks and can result in delays.^{Footnote 49}

Some participants spoke about the Apprenticeship Grants application process being confusing, with some suggesting that there were many steps.^{Footnote 50}

Information about the Grants is perceived to be confusing, needing greater clarity.

Some participants appeared to not be aware that Service Canada was a resource to find more information and reached out to provincial apprenticeship representatives for more information about the Grants.^{Footnote 51}

Participants related that they were made aware of the Grants from various sources such as:

• a welcoming session to their programs
• the provincial representative who registered them
• discussions with coworkers and school instructors, and
• apprenticeship documentation delivered through the mail - either upon registering into the program or upon completing the exam^{Footnote 52}

Most provincial and territorial government apprenticeship authorities interviewed claim that lack of awareness of the support measures is unlikely as they make apprentices aware and sometimes they assist them in completing forms.^{Footnote 53}

The awareness rates of both the Apprenticeship Incentive Grant and Apprenticeship Completion Grant varies across gender and trade groups.

Awareness is higher for men compared to women for both grants. For instance, 69.0% of men and 61.4% of women are aware of the Apprenticeship Incentive Grant while 63.9% of men and 56.9% of women are aware of the Apprenticeship Completion Grant.^{Footnote 54}

Awareness of the Grants varies among trade groups. For instance 55.4% and 59.4% of cooks and 74.5% and 78.3% of construction electricians are aware of the Grants.^{Footnote 55}

Some trades such as construction electricians, plumbers or carpenters appear to be more structured and, therefore, have a higher awareness and take-up rate.^{Footnote 56}

Text description of Figure 8

Type of apprentice	Aware Apprenticeship Incentive Grant during apprenticeship	Applied Apprenticeship Incentive Grant	Aware Apprenticeship Completion Grant during apprenticeship	Applied Apprenticeship Completion Grant
Total apprentices	68.2%	75.5%	63.2%	70.4%
Male	69.0%	75.6%	63.9%	70.6%
Female	61.4%	74.3%	56.9%	67.9%
Indigenous	59.1%	67.9%	54.0%	62.8%

Source: National Apprenticeship Survey 2015

There is a consistent perception that the application process for the Grants is straightforward, although the supporting documentation and application deadlines may limit the ability of some eligible apprentices to receive the Grants.

Between 98% and 100% of all Apprenticeship Grants are processed in 28 calendar days and that a similar proportion of grants is disbursed within that period.^{Footnote 57}

Various strengths of the current service delivery of the Apprenticeship Grants were noted including:

• experienced staff
• meeting the 28 day timeline to process applications and disburse funds
• flexibility in making changes at the local level given their knowledge of the program
• the ability of clients to be able to apply online and have paper format accessible^{Footnote 58}

Participants mentioned that they were generally able to access the information they required and experienced few challenges with the application process.

However, there was room for improvement; in particular, some participants found the information was too complex, the application forms too long, and the need to submit certificates of completion unnecessary.^{Footnote 59}

Recommendation

Examine how the grants could be modified as part of the broader suite of federal apprenticeship supports by taking into account key evaluation findings, including challenges/ barriers faced by groups such as, women, and Indigenous people.

Annex 1 – Profile of grant recipients^{Footnote 60}

Annex 2 – Apprenticeship Grants logic model

Annex 2 illustrates the logic model of the Apprenticeship Grants which outlines, from the top to the bottom, its mission, activities, outputs, immediate outcomes, intermediate outcomes, ultimate outcome and the strategic outcome the program intends to achieve or to which it intends to contribute.

Annex 3 – Lines of evidence

Evaluation question:

4.1 The impact of the Grants on the number of new apprentices and on the progression and completion of apprenticeships.

Lines of evidence: National Apprenticeship Survey 2015, Documents Review, Key Informants Interviews, Focus Groups, Apprenticeship Grants administrative data.

4.2 Financial barriers to apprenticeship progression and completion.

Lines of evidence: Documents Review, Key Informants Interview, Focus Groups and National Apprenticeship Survey 2015.

4.3 The role of other financial supports in addressing financial barriers.

Lines of evidence: Key Informants Interview, Focus Groups, National Apprenticeship Survey 2015 and Linked Apprenticeship Grants, Canada Apprentice Loan and Employment Insurance administrative data analysis.

4.4 The role of other barriers or factors affecting apprenticeship progression and completion

Lines of evidence: Key Informants Interview, Focus Groups, Documents Review and National Apprenticeship Survey 2015.

4.5 The level of awareness of the Grants and how does this or other factors affect take-up rates

Lines of evidence: Key Informants Interview, Focus Groups and National Apprenticeship Survey 2015.

4.6 The effectiveness of service delivery and the challenges to be addressed

Lines of evidence: Key Informants Interview and Focus Groups.

Annex 4 – Description of lines of evidence

Annex 5 – Limitations

Findings from this evaluation do not include an analysis of the net impacts of the program on the completion and progression rates of the apprentices in their training. Therefore, the evaluation is only looking at contributions of the program activities on enrollment, persistence and graduation of apprentices.

Pre-program data were not available to study the impact of the program on attracting new apprentices in the skilled-trade field. However, given the comprehensive qualitative analysis conducted, these responses adequately address the evaluation questions.

Sample size for groups of apprentices such as women and Indigenous were too small to disaggregate the analysis and conduct a comprehensive Gender Based Analysis+ analysis.

Women and Indigenous specific focus groups provided a unique perspective of the barriers faced but there were challenges with the composition of these groups.

Five out of 6 of the women's group were in the same trade limiting the capacity to generalize about all groups and trades.

The Indigenous group was conducted via teleconference as there were difficulties in recruiting an adequate number of participants.

Annex 6 – Financial barriers faced by apprentices

Annex 7 – Other barriers or factors affecting apprenticeship progression and completion.

Text description of Figure 9

Type of apprentice	Financial constraints	Received a better job offer	Job instability	Harassment or discrimination	Personal or family issues	Other
Total apprentices	18.4%	20.3%	22.0%	3.1%	13.7%	12.2%
Male	18.8%	21.2%	23.0%	2.5%	12.4%	11.7%
Female	15.8%	12.6%	12.8%	8.8%	24.0%	15.6%
Indigenous	29.0%	21.1%	18.9%	3.3%	17.5%	10.5%

Source: National Apprenticeship Survey 2015

Annex 8 – Factors affecting take-up rates

Text description of Figure 10

The Awareness of the Apprenticeship Incentive Grant for Apprentices in Red Seal Trades/Blank by family situation, demographics, and apprenticeship characteristics Pooled (weighted)
Year	Yes	No
2011	67.9%	32.1%
2012	70.1%	29.9%
2013	66.9%	33.1%

Source: National Apprenticeship Survey 2015

Text description of Figure 11

Awareness of Apprenticeship Completion Grant by year
Year	Yes	No
2011	62.90%	37.10%
2012	66.10%	33.90%
2013	60.90%	39.10%

Source: National Apprenticeship Survey 2015

Annex 9 – Awareness rate by trade group

Text description of Figure 12

Trade group	Aware of Apprenticeship Incentive Grant	Aware of Apprenticeship Completion Grant
Carpenter	62.3%	57.7%
Construction Electrician	78.3%	74.5%
Automotive Service Technician	75.8%	67.1%
Hairstylist	59.7%	57.7%
Steamfitters/Pipefitter	70.4%	66.4%
Plumber	78.2%	74.5%
Welder	72.6%	68.4%
Cook	59.2%	55.4%
Industrial Mechanic (Millwrights)	74.8%	69.5%
Industrial Electrician	64.1%	63.7%
Other	65.2%	59.0%

Source: National Apprenticeship Survey 2015

Annex 10 – Bibliography

Employment and Social Development Canada (2018), "Evaluation of the Apprenticeship Grants Program Key Informant Interview Summary of Findings." (not published, available on demand)

Employment and Social Development Canada (2018), "Evidence from the National Apprenticeship Survey (NAS - 2015)." (not published, available on demand)

Employment and Social Development Canada (2018), "Document Review for the Evaluation of the Apprenticeship Grants (AG) Program." (not published, available on demand)

Employment and Social Development Canada (2019), "The Patterns of Use of Employment Insurance and Canada Apprentice Loan among Apprenticeship Grants Recipients: Evidence from the Linked Apprenticeship Grant, Canada Apprentice Loan and Employment Insurance Administrative Databases." (not published, available on demand)

Frank, Christine and Emily Jovic, "National Apprenticeship Survey 2015: Canada Overview Report", Statistics Canada, March 2017

Frank, Kristyn and Marc Frenette, "How Do Women in Male-dominated Apprenticeships Fare in the Labour Market?" Statistics Canada, March 2019

R. A. Malatest and Associates (2018), "Focus Groups for the Summative Evaluation of the Apprenticeship Grants: Synthesis Report." (not published, available on demand)