Evaluation of the Canada Apprentice Loan - Phase 2

From: Employment and Social Development Canada

List of figures
List of tables
List of acronyms and abbreviations
Introduction
Key findings
Conclusions
Management response and Action plan
Consideration #1
Annex A: Evaluation questions and Lines of evidence
Annex B: Evaluation approach
Annex C: Description of the program
Annex D: Logic model
Annex E: Additional figures and tables

Alternate formats

Evaluation of the Canada Apprentice Loan - Phase 2 [PDF - 1.34 MB]

List of figures

Figure 1: During your technical training period, how easy or difficult was it to make ends meet financially?
Figure 2: Proportion of Apprentices who had difficulty making ends meet during technical training
Figure 3: Level of importance of the loan in covering the costs of apprenticeship by subgroup (N=1,083)
Figure 4: Proportion of recipients that used the loan toward these specifics items (N=1,083)
Figure 5: Awareness level of the Canada Apprentice Loan before becoming an apprentice (N=1,525)
Figure 6: Apprentices first heard about the Canada Apprentice Loan from these promotional elements
Figure 7: Apprentices received information about the Canada Apprentice Loan from the following sources
Figure 8: Estimated take-up rate for Canada Apprentice Loan by gender
Figure 9: Stage during the apprenticeship when loan recipients first applied (N=1,111)
Figure 10: Level of satisfaction with service delivery by sub-groups (N=1,111)
Figure 11: Level of satisfaction with the timeliness of the loan (the time from application to receipt). (N=1,083)
Figure 12: Proportion of apprentices using other financial supports by sub-group (N=1,825)
Figure 13: Proportion of loan recipients receiving support from other Federal support measures for apprentices
Figure 14: Proportion of apprentices paid by employer during technical training by selected group (N=1,825)
Figure 15: Total amount of debt by top 10 Red Seal trades group
Figure 16: Status of the loan for all the recipients at the end of calendar year 2017
Figure 17: Proportion of loan recipients who have completed the apprenticeship program and are aware of the Repayment Assistance Program and using the Repayment Assistance Program (N=589)
Figure 18: Proportion of recipients in repayment using the Repayment Assistance Program
Figure 19: Proportion of apprentices who had difficulty making ends meet during technical training
Figure 20: How important does knowing about the Canada Apprentice Loan contribute to your decision to become an Apprentice? (N=564)
Figure 21: Estimated take-up rate for Canada Apprentice Loan by province
Figure 22: Proportion of loan recipients receiving support from other Federal support measures for apprentices by trade groups
Figure 23: Does the employer pay full wage, partial wage of other type of payment by selected group (N=198)
Figure 24: Proportion of recipients indicating that the loan was important in helping them covering the cost of the apprenticeship training by trade groups (N=1,083)
Figure 25: Use of Canada Apprentice Loan by trade (N=1,083)
Figure 26: Total amount of debt by gender
Figure 27: Level of satisfaction of Canada Apprentice Loan recipients with service delivery by education level (N=1,111)
Figure 28: Timeliness of the loan by region (the time from application to receipt). (N=1,083)
Figure 29: Percentage of Recipients in Repayment by status of their apprenticeship (N=1,083)
Figure 30: Stage at which recipients start repaying their loan (N=354)
Figure 31: Proportion of loan recipients in repayment using the Repayment Assistance Program
Figure 32: Proportion of recipients that used the loan toward these specifics items (N=1,083)

List of tables

Table 1: Advantages of completing an apprenticeship
Table 2: Comparing loan recipients and non-recipients: apprentice’s views on their needs during the apprenticeship period
Table 3: Estimates from a probit model with completion as the dependent variable
Table 4: Canada Apprentice Loans by calendar year
Table 5: Thinking more generally about your experience, what else could governments do to help support apprentices during their training?
Table 6: Average number of loans taken by different groups of recipients
Table 7: Estimates from a probit model with completion as the dependent variable by gender
Table 8: Estimates from a nearest-neighbour matching model with completion as the dependent variable

List of acronyms and abbreviations

AIG:: Apprenticeship Incentive Grant
ACG:: Apprenticeship Completion Grant
CAL:: Canada Apprentice Loan
CR:: Core Responsibility
DRF:: Departmental Results Framework
EI:: Employment Insurance
ESDC:: Employment and Social Development Canada
PRA:: Prairie Research Associates
RAIS:: Registered Apprenticeship Information System
RS:: Results Statements

Introduction

This report constitutes Phase II of the Evaluation of the Canada Apprentice Loan. Phase I was completed in 2017 and covered program relevance, the use of the loans, administrative costs, and program delivery and awareness. Phase II expands on additional questions about loan repayment and the impact of the loan on completing an apprenticeship.

This evaluation uses an impact analysis method to estimate the contribution of the loans on the completion of an apprenticeship. Due to omitted variable bias, impacts of the program were reported as contributions. For more details about this study please see the methodology and limitations section in Annex B.

The evaluation covers calendar years 2015 to 2019^{Footnote 1} and complies with the Financial Administration Act and the 2016 Treasury Board Policy on Results.^{Footnote 2}

Key evaluation findings^{Footnote 3}

The loan contributes to completion of training
There is a need for the Canada Apprentice Loan given that most apprentices continue to have difficulty making ends meet during technical training
The Canada Apprentice Loan responds to the need of various sub-populations
A higher than average proportion of women, Indigenous recipients, recipients with a disability and older recipients surveyed indicated that the loans were important or very important in covering the costs of training and other related expenses.
Approximately one-third (37%) of apprentices surveyed are aware of the loan prior to registering
Of this 37%, one-third (39%) feel that knowing about the loan is an important part of their decision making to participate in an apprenticeship program. Most awareness about the program occurs after registering into a trade school.
The take up rate has been relatively stable since inception of the program
During the period between 2015 and 2017, approximately one-third of the eligible population used the loan. The average take-up rate of the Canada Apprentice Loan over this period was 31.6% with a slightly higher rate for women (33.1%)^{Footnote 4}
A majority of the recipients surveyed are satisfied with the application process (78.6%) and the timeliness (82%) of the loan
This is consistent with the findings from Phase 1.
Between 2015 and 2017, 74.1% of the loan recipients were also using both Apprenticeship Grants and Employment Insurance benefits
During the same period, only 4% of the loan recipients were using the loan as their sole source of federal financial support.
On average, an apprentice has $5,534 of debt during training
A large majority (81.5%) started repaying before the end of their first year of training.
In general, about 10% of recipients start repaying their loan before completing their training
A small percentage of borrowers in repayment (1.7%) are using the Repayment Assistance Program. This could be due to a low level of awareness about the Repayment Assistance Program.

Recommendation

The program should focus on increasing awareness of the loans among underrepresented groups. Both in terms of promoting the program and in terms of providing clarity about its principal features so more apprentices that are in need can benefit.

Consideration

The Canada Apprenticeship Loan is only one part of a broader suite of federal support measures for apprenticeships. The Department should consider how the loan links into a broader Apprenticeship Strategy.

Program background

The Canada Apprentice Loan was launched in 2015. It offers interest-free loans of up to $4,000 per period of technical training (minimum request of $500). In loan year 2015 to 2016, a total of 16,429 apprentices borrowed from the Canada Apprentice Loan, leading to disbursements totaling $69.4 million.^{Footnote 5}

The lifetime maximum loan amount is set to $20,000 and/or a maximum of 5 periods of technical training. The program was designed to help registered Red Seal apprentices:

cover the costs related to their apprenticeship
to assist more apprentices in completing their training^{Footnote 6}

The Canada Apprentice Loan builds on other federal government measures that aim to financially support individual apprentices:^{Footnote 7}

Employment Insurance

Individuals referred by their province or territory to attend full-time technical training (sometimes referred to as block-release training) may be eligible to receive Employment Insurance benefits
This can only occur while they are unemployed and attending the training.

Apprenticeship Grants

The Apprenticeship Grants are comprised of the Apprenticeship Incentive Grant, the Apprenticeship Completion Grant and the Apprenticeship Incentive Grant for Women
They allow apprentices to receive up to $4,000 in lifetime grants to pay for tuition, travel, tools, or other expenses up to $8,000 in grants for apprentices who are women.

Tax deductions

Tax deductions and credits for supporting apprentices and tradespersons including:

the Tradesperson’s Tools deduction
the Tuition Tax Credit^{Footnote 8} and
the Education Tax Credit

Role of government in apprenticeship

In 2015:

Canadians working in the skilled trades: 4,000,000^{Footnote 9}
estimated percentage of employed Canadians who worked in a skilled trade: 22.1%^{Footnote 10}
percentage of Red Seal apprentices who were women: 9%
the percentage of women who were apprentices when more "traditional" trades such as baker and hairstylist are removed: 5%^{Footnote 11}

Completing an apprenticeship program can be a challenge for apprentices and it can also vary significantly across jurisdictions and trades. Table 1 below demonstrates that apprentices who completed their programs are more likely to find employment and have, on average, higher earnings.^{Footnote 12}

Table 1: Advantages of completing an apprenticeship

Apprentice Characteristic	Completers	Discontinuers
Have a permanent job	80.8%	77%
Average Annual Income	$69,512	$59,782

Key findings

Need for the loan

Both Canada Apprentice Loan recipients and non-recipients indicate that there is a need for the loan given the high cost of technical training and the overall apprenticeships costs.

Figure 1 shows that close to half of the apprentices surveyed (48.1%) said it was difficult or very difficult to make ends meet during the technical training period.

The proportion of apprentices who had difficulties making ends meet during the technical training period is higher among loan recipients (52.6%) compared to the non-recipients (42.5%).

This suggests that there is a need for the Canada Apprentice Loan.

Figure 1: description follows — **Figure 1: During your technical training period, how easy or difficult was it to make ends meet financially?**

During your technical training period, how easy or difficult was it to make ends meet financially?	Total (N=1,825)	Used Canada Apprentice Loan (N=1,011)	No Canada Apprentice Loan (N=814)
Very difficult	12.2%	14.7%	13.6%
Difficult	30.3%	37.9%	34.5%
Neither easy nor difficult	31.0%	32.9%	32.1%
Easy	21.9%	11.7%	16.2%
Very easy	4.7%	2.5%	3.4%
Don't know / No response	0.1%	0.1%	0.1%
Total	100.0%	100.0%	100.0%

There are variations in terms of difficulties making ends meet, showing that some groups have more of a need for the Canada Apprentice Loan than others. Figure 2 indicates certain groups were more likely to say that they had difficulties making ends meet.

This includes women (51%), apprentices 40 years and older (56.6%), apprentices with a disability (62.7%) and those apprentices with lower annual earnings (66.9%).

A larger proportion of loan recipients indicated that they have difficulties making ends meet compared to eligible non-recipients.

The exceptions are those recipients earning more than $150,000 and those between 18 and 24 years old.

As shown in Figure 19 in Annex E, other groups of apprentices were also more likely to say that they had difficulties making ends meet.

These include industrial electricians (60.8%), welders (59.4%), plumbers (57.1%) and apprentices being trained in more than one trade (60.9%).^{Footnote 13}

Figure 2: description follows — **Figure 2: Proportion of Apprentices who had difficulty making ends meet during technical training**

Apprentice groups	All apprentices	No Canada Apprentice Loan	Received Canada Apprentice Loan
Men	48%	41.9%	52.8%
Women	51%	47.7%	55.1%
Age 18 to 24	34.1%	38.3%	28.3%
Age 25 to 29	49.0%	37.5%	57.7%
Age 30 to 39	53.5%	51.3%	55.2%
Age 40 and older	56.6%	43.0%	65.8%
Indigenous	49.5%	44.6%	52.7%
Apprentice with a disability	62.7%	58.7%	65.6%
Earnings Under $25,000	66.9%	55.1%	74.7%
Earnings $25,000 to under $50,000	57.4%	50.9%	61.8%
Earnings $50,000 to under $75,000	47.7%	37.3%	56.0%
Earnings $75,000 to under $100,000	50.0%	44.3%	54.4%
Earnings $100,000 to under $150,000	43.1%	42.3%	43.8%
Earnings $150,000 or more	34.5%	37.7%	31.2%

The Canada Apprentice Loan contributes to covering the costs of training and other expenses for most recipients (80.8%). A larger contribution was observed for vulnerable groups.

Figure 3 shows 80.8% of the recipients surveyed indicated that the loans were important or very important in covering the costs of training and other related expenses.

This proportion is higher among:

women (88%)
older apprentices (91%)
Indigenous (86%)
recipients with a disability (84.2%)
those earnings less than $75,000 annually (87.8%)

Chart of insert chart title: description follows — **Figure 3: Level of importance of the loan in covering the costs of apprenticeship by subgroup (N=1,083)**

Apprentice groups	Percentage
Total Apprentices	80.8%
Men	80.5%
Women	88%
18 to 24	76.3%
25 to 29	77.8%
30 to 39	82.9%
40 and older	91%
Indigenous	86%
No	80.5%
Recipients with a Disability	84.2%
No	80.9%
Under $25,000	83.1%
$25,000 to under $50,000	83.1%
$50,000 to under $75,000	87.8%
$75,000 to under $100,000	82.4%
$100,000 to under $150,000	67.4%
$150,000 or more	69.7%

Approximately three quarters (79.4%) of recipients surveyed used the Canada Apprenticeship Loan to make ends meet.

Figure 4 indicates that 39.1% of recipients used the Canada Apprentice Loan to pay tuition and other fees
Apprentices also used Canada Apprentice Loans to pay for training items such as books, computer or uniforms (37.6%) and to buy tools (25.6%).
A higher proportion of lower income recipients and recipients with a disability used the Canada Apprentice Loan to pay for tuition and other fees, buy tools or buy books, computer or uniforms specific for training. See Figure 32 in Annex E for full table including income information
Loans are used differently by different trade groups
For example, welders (92.9%), steamfitters/pipefitters (92.4%), recipients with a disability (86.1%), those earning less than $75,000 annually (82%) and women (81.5%) are the most likely to report using the Canada Apprentice Loan to make ends meets as indicated by Figure 25 in Annex E.
This is likely due to the different nature of the work and differences in income

Figure 4 : description follows — **Figure 4: Proportion of recipients that used the loan toward these specifics items (N=1,083)**

Apprentice group	Make ends meet	Buy training books / computer / uniforms	Buy trade specific tools	Pay tuition and other fees	Living expenses (includes rent, mortgage)	Transportation / travel (fuel, car payments)	Savings / Just in Case
Total apprentices	79.4%	37.6%	25.6%	39.1%	45.0%	3.3%	1.7%
Men	79.4%	37.3%	24.7%	39.2%	45.0%	3.2%	1.7%
Women	81.5%	39.2%	34.8%	35.9%	44.0%	3.6%	0.6%
Indigenous	75.1%	43.3%	28.9%	29.0%	0.3%	2.8%	0.2%
Recipients with a Disability	86.1%	60.0%	42.6%	55.8%	0.0%	6.7%	0.0%

Awareness

Approximately one-third (37%) of apprentices are aware of the loan prior to registering as indicated by Figure 5.

Figure 5 indicates that level of awareness of the loan is lower for women (30.6%) and for apprentices earning less than $25,000 per year (30.4%). This is a low rate of awareness. Considering one-third feel that knowing about the loan is an important part of their deciding to become an apprentice.

For those who are aware of the loan, Figure 20 in Annex E shows that for 39% of apprentices, knowing about the Canada Apprentice Loan was an important factor (17.4%) or very important factor (21.6%) contributing to the decision to register for apprenticeship training. This proportion is even higher for women (47%) Indigenous apprentices (64.9%), apprentices with a disability (62.5%) and those with annual earnings under $25,000 (59.6%).

One-third of the apprentices who did not apply for a Canada Apprentice Loan (38.2%) mentioned that awareness was a problem for them. This proportion is even higher for women (52.4%), Indigenous apprentices (49.6%) and apprentices with a disability (49.2%).

The level of awareness is lower for women (30.6%) compared to men (37.4%).

Figure 5: description follows — **Figure 5: Awareness level of the Canada Apprentice Loan before becoming an apprentice (N=1,525)**

Apprentice group	No	Yes
Total	62.9%	37.0%
Men	62.6%	37.4%
Women	69.2%	30.6%
Indigenous	59.8%	40.5%
Apprentices with a Disability	54.8%	45.5%
Annual Earnings Under $25,000	69.6%	30.4%
Annual Earnings Between $25,000 and $50,000	61.5%	38.2%

Most of the awareness about the program is achieved in class or at school and not prior to the program.

Figure 6 indicates that 60% of the apprentices who were aware of the Canada Apprentice Loan before taking the Evaluation survey were informed of the loan either in:

class (44.6%)
via a classmate (9.8%)
by the teacher (5.6%)

This means that awareness of the loan is mostly occurring after registering for the training.

Figure 6: description follows — **Figure 6: Apprentices first heard about the Canada Apprentice Loan from these promotional elements**

Where apprentices first heard about CAL program	Total (N=1,527)	Men (N=1,420)	Women (N=86)
Friend or relative	5.5%	5.4%	4.4%
Government information	2.2%	2.2%	2.3%
Union representative	2.5%	2.5%	1.2%
Classmates	9.7%	9.7%	9.8%
Employer	1.7%	1.6%	2.1%
Welcome package	4.7%	4.8%	5.0%
Apprenticeship office	3.7%	3.6%	3.7%
At School/in class	47.1%	47.4%	44.6%
At work/Coworkers	4.3%	4.2%	5.9%
When I registered	2.2%	2.3%	1.9%
Online research	6.4%	6.2%	9.1%
E-mail or letter	2.4%	2.5%	2.0%
Radio/TV/Media Advertisement	2.9%	2.8%	5.6%
Teachers/Instructors	10.0%	10.3%	5.6%

A large percentage of the loan recipients made a decision to become an apprentice without knowing about the loan. Most of the information about the program is provided during the training from employers or from the schools.^{Footnote 14}

Figure 7 shows that the source of information about the loan varies across regions. For example there is a higher percentage of apprentices in Ontario receiving information from union representatives, employers and welcome packages relative to other regions.

Figure 7: description follows — **Figure 7: Apprentices received information about the Canada Apprentice Loan from the following sources**

Source of information of loan	Atlantic (N=128)	Ontario (N=332)	Prairies (N=807)	British Columbia and Territories (N=260)	Total apprentices (N=1,527)
Career counsellor	11.2%	9.0%	6.3%	11.0%	8.1%
Union representative	5.4%	19.0%	4.2%	5.4%	7.7%
Industry association	2.4%	3.7%	5.5%	7.5%	5.2%
Classmates	41.1%	34.6%	42.5%	38.5%	40.0%
Employer	58.2%	58.7%	50.6%	57.7%	54.2%
Teachers/Instructors	4.7%	10.1%	6.4%	8.1%	7.4%
Welcome package	8.1%	23.8%	11.4%	14.9%	14.4%

Take-up

Overall take-up has increased since 2015, but it varies by gender and across jurisdictions.

Figure 8 indicates that other than in 2015, the take-up rate for women is always higher than the one for men. The average take-up rate for women is at 33.1% while the one for men is at 31.5%.

Figure 21 in Annex E also indicated that Alberta and Nova Scotia have the highest take-up rates, averaging 44.9% and 42.8% respectively. However, Ontario, Newfoundland and Labrador both have the lowest take-up rate with an average of 15.6% for both. The take-up rate in Ontario is constantly declining between 2015 and 2017.

A total of 49,550 loans were disbursed to 34,602 apprentices between January 1, 2015 and December 31, 2017.^{Footnote 15}

Most of the loans are disbursed to apprentices registered in Alberta. In terms of trades, most of the loans are disbursed to construction electricians and to other Red Seal trades.

The take-up rate for women is 33.1% overall.

Figure 8: description follows — **Figure 8: Estimated take-up rate for Canada Apprentice Loan by gender**

Year	Total	Men	Women
2015	28.0%	28.0%	27.6%
2016	35.2%	35.1%	37.7%
2017	32.2%	32.1%	35.3%
Total	31.6%	31.5%	33.1%

Just less than half (42%) of loan recipients obtain their first loan either during the year they registered or 1 year after registration.

The Canada Apprentice Loan allows an apprentice to take up to 5 loans of $4,000 for a maximum lifetime amount of $20,000.

Apprentices obtain on average approximately 2 loans (see Figure 9).

Income is the only factor that impacts on the number of loans taken.

Other demographics as suggested by Table 6 in annex E are not significant factors that contribute to decisions to take loans including:

gender
having a disability
age

This suggests that there is no relationship between sub-groups and the number of loans taken. Although, the number of loans taken decrease significantly when income of the recipient increases.

Years of apprenticeship	Total	Men	Women	Indigenous	Recipients with a disability
Registration year	19.6%	19.7%	18.6%	18.2%	22.2%
1st year after registration	22.4%	21.3%	29.9%	21.9%	23.9%
2nd year after registration	16.3%	16.6%	15.9%	11.8%	16.6%
3rd year after registration	14.9%	15.2%	12.4%	19.3%	11.4%
4th year after registration	9.4%	9.4%	9.6%	13.3%	4.1%

Satisfaction levels

Most recipients (78.6%) are satisfied or very satisfied with the application process, with the exception of Indigenous recipients and recipients with a disability.

Figure 10 shows satisfaction with the application process. Indigenous recipients (73%) and recipients with a disability (54.8%) are the least satisfied. Women (86.2%) are the most satisfied with the application process.

Figure 10 also indicates that 73.9% of the recipients are satisfied or very satisfied about the ease of understanding of the program material.

Recipients with a disability (55.2%) appear to be less satisfied with the ease of understanding the loan material while women (85.2%) are more satisfied.

The level of satisfaction with the application process and with the ease of understanding the Canada Apprentice Loan material increases with the level of education (see Figure 27 in Annex E).^{Footnote 16}

Two reasons were given by apprentices who did not apply for a loan:

14.2% mentioned being uncomfortable with the idea of having debt
39.4% of them did not need a loan

Figure 10: description follows — **Figure 10: Level of satisfaction with service delivery by sub-groups (N=1,111)**

Satisfaction level	Total	Men	Women	Indigenous	Recipients with a disability
Satisfied with the information provided prior to loan	69.4%	69.4%	75.5%	67.8%	62.7%
Satisfied with service delivery	78.3%	78.4%	86.1%	73.0%	54.8%
Satisfied with the ease of the application process	73.9%	73.6%	85.2%	70.9%	55.2%
Satisfied with the updates on amount owed	45.6%	45.8%	46.5%	32.9%	41.4%

Most loan recipients are satisfied (29.7%) or very satisfied (52.3%) with the timeliness of the loan.^{Footnote 17}

Figure 11 indicates that there are variations in the level of being satisfied with the timeliness of the loan among selected groups. Recipients with a disability and Indigenous recipients appear to be slightly less satisfied with the timeliness of the loan as opposed to other groups.

The geographical variations of level of being satisfied with timeliness can be seen in Figure 28 in Annex E:

recipients in British Columbia and the Territories (85.2%) are more satisfied
Ontario (76.2%) are less satisfied

Figure 11: description follows — **Figure 11: Level of satisfaction with the timeliness of the loan (the time from application to receipt). (N=1,083)**

Level of satisfaction with the timeliness of the loan	Total	Men	Women	Indigenous	Recipients with a disability
1 - Not at all satisfied	1.4%	1.3%	2.4%	0.0%	3.5%
2 - Not satisfied	3.3%	3.4%	1.7%	6.0%	6.7%
3 - Indifferent	13.1%	12.9%	11.4%	15.5%	13.2%
4 - Satisfied	29.7%	29.7%	30.1%	28.6%	36.6%
5 - Very satisfied	52.3%	52.5%	54.0%	49.5%	40.1%

Impact of services

Apprentices suggested changes to the Canada Apprentice Loan and the suite of federal support measures.

Approximately 4% of apprentices would like to reduce the cost of apprenticeship
For 4.3% of apprentices, raising awareness about the program could solve many issues, while another 3.8% mentioned that improving information about the loan could help them
Another 2.8% mentioned that targeting more vulnerable groups, such as single women or low-income families, would be a good solution
Close to 12% of apprentices surveyed mentioned that more grants or more funds including a targeted grant for specific costs, such as gas, travel and daycare would be useful
There are some differences between loan recipients and non-recipients as it pertains to their views on enhancing the loan. But these differences are not large and systematic
For approximately 10% of the apprentices surveyed, solving Employment Insurance issues would provide them a great support as seen in Annex E, Table 5.^{Footnote 18}

**Table 2: Comparing loan recipients and non-recipients: apprentice's views on their needs during the apprenticeship period**
Suggested additional activity	Non-recipients	Canada Apprentice Loan recipients	Total
Increase the Canada Apprentice Loan amount	1.0%	3.1%	2.2%
Lower interest rate	0.2%	1.4%	0.9%
Raise awareness / advertise programs (in general)	6.0%	3.0%	4.3%
Improve the information / awareness about the Canada Apprentice Loan	5.5%	2.6%	3.8%
Financial advice from the Canada Apprentice Loan - repayment information	2.3%	1.9%	2.1%

Source: ESDC-PRA Inc. Survey of Canada Apprentice Loan recipients and eligible non-recipients 2019.

Loan and completion

Using the loan has a positive contribution to completing the apprenticeship training for every trade.^{Footnote 19}

Table 3 demonstrates that using the Canada Apprentice Loan contributes to completing an apprenticeship program.^{Footnote 20}

The magnitude of the impact on completing an apprenticeship in compulsory trades^{Footnote 21} is larger when compared to the voluntary trades.^{Footnote 22}

For women, the loan contributes to completing an apprenticeship program in every trade as seen in Table 7, Annex E. This could be due to the small sample of women using the loan.

Each extra loan used has a diminishing contribution on the probability of completing the apprenticeship for all trades and compulsory trades. Table 3 reports a negative coefficient for the "number of loans used" measure. This means that the greater contribution comes from the first loan. Table 8 in Annex E also supports this finding.

**Table 3: Estimates from a probit model with completion as the dependent variable**
Parameter	All apprentices	Compulsory trades	Voluntary trades
Number of apprentices	114,685	57,675	57,324
Used the Canada Apprentice Loan (any number of loans)	0.96***	0.98***	0.54***
Standard errors	(0.128)	(0.145)	(0.169)
Number of loan used per apprentice	-0.37***	-0.26**	-0.13
Standard errors	(0.121)	(0.134)	(0.157)

Note:
*** Significant at the 1% confidence level.
** Significant at the 5% confidence level.
* Significant at the 10% confidence level.
Source: Registered Apprenticeship Information System, Apprenticeship Grants and Employment Insurance administrative data

Other supports

Approximately 82.5% of apprentices used Employment Insurance during their apprenticeship and 58.4% of apprentices used government loan or grants.

Figure 12 indicates that approximately 11.8% of apprentices used college bursaries. Roughly 10.6% of them had to rely on another job to finance their training.

Apprentices with a disability and women tend to rely more on another job, help from parents or family. Apprentices with a disability also rely more on a personal loan compared to other groups. Women apprentices and apprentices with a disability tend to use less employment insurance during their training as seen in Figure 12.

Figure 12: description follows — **Figure 12: Proportion of apprentices using other financial supports by sub-group (N=1,825)**

Apprentice group using other supports	Apprenticeship Incentive Grant	Apprenticeship Completion Grant	Government loans or bursaries	College bursaries	Employment Insurance	Parents or family	Personal loan	Other job	Registered Education Savings Plan
Total apprentices	34.2%	23.5%	58.4%	11.8%	82.5%	15.7%	6.8%	10.6%	2.6%
Men	34.1%	23.5%	58.7%	11.2%	83.9%	14.9%	6.8%	10.0%	2.6%
Women	34.8%	21.6%	54.7%	21.5%	65.6%	22.3%	7.5%	15.5%	2.2%
Indigenous	35.1%	19.4%	61.5%	10.6%	77.9%	15.4%	7.6%	10.5%	2.8%
Apprentices with a disability	29.9%	20.5%	59.5%	9.5%	68.4%	26.1%	25.4%	22.1%	2.3%
Multiples trades	44.3%	25.5%	70.6%	17.0%	81.4%	14.9%	3.9%	11.7%	7.6%

A majority of loan recipients (74.1%) received support from the Apprenticeship Grants and Employment Insurance.

Figure 22 in Annex E indicates that there are notable differences in the pattern of usage of the various federal measures of financial support.

The 3 trade groups with the lowest proportion of recipients using the loan, the grants and Employment Insurance:

hairstylists (42.6%)
cooks (57.1%)
industrial electricians (44.7%)

These 3 groups also have the highest proportion of recipients using only the loan as source of financial support. However, the 3 groups with the highest proportion of loan recipients also using both the grants and employment insurance were:

construction electricians (81.1%)
plumbers (79.9%)
automotive service technicians (78.8%)

Only 4% of recipients use the Canada Apprentice Loan as a sole source of financial support (see Figure 13).

Figure 13: description follows — **Figure 13: Proportion of loan recipients receiving support from other Federal support measures for apprentices**

Federal support measures used by apprentices	Proportion of loan recipients
Proportion of recipients using CAL Only	4.0%
Proportion of recipients using CAL and AG	15.0%
Proportion of recipients using CAL and EI	6.9%
Proportion of recipients using CAL, AG and EI	74.1%

A small proportion (10.8%) of apprentices continue to get paid by their employer during the technical training period.

A large portion of apprentices need to find another source of income during their technical training period as indicated in Figure 14.

Figure 14 also indicates that the proportion of apprentices who are paid by their employer during the technical training period is higher among certain groups. These include:

non-recipients
women
hairstylists^{Footnote 23}
cooks^{Footnote 24}
heavy duty equipment technicians

Among those who are still being paid during the technical training period, most (51.8%) still receive their full wage. As shown in Figure 23 in Annex E, non-recipients (58.2%) and women (78.2%) are more likely to receive their full wage.

Figure 14: description follows — **Figure 14: Proportion of apprentices paid by employer during technical training by selected group (N=1,825)**

Debt

On average an apprentice has $5,534 of debt during training and there are variations in terms of debt level by trade groups.

Figure 15 shows that that hairstylists ($4,536) and cooks $4,731 have the lowest amount of debt among trade groups. Millwright is the trade group taking on the most debt with an average debt per apprentice of $5,972. They are followed by steamfitters/pipefitters and heavy duty equipment technicians who take an average of $5,866 and $5,819 in debt respectively.

The difference in the amount of debt taken by these trade groups relative to the national average is statistically significant.^{Footnote 25} The eligibility requirement that apprentices in some trades have may be driving these differences in the level of indebtedness (in other words hairstylists and cooks).

Figure 26 in Annex E indicates that men tend to take on more debt than women.^{Footnote 26}

Figure 15: description follows — **Figure 15: Total amount of debt by top 10 Red Seal trades group**

Red Seal Trade group	Amount of debt
Construction electricians	$5,640
Carpenters	$5,373.32
Automotive service technicians	$5,542.64
Plumbers	$5,552.39
Welders	$5,655.63
Hairstylists	$4,535.82
Steamfitters/Pipefitters	$5,865.78
Heavy duty equipment Technicians	$5,819.15
Cooks	$4,731.48
Millwrights	$5,971.83
Industrial electricians	$5,525.41
Others	$5,302.87
Total	$5,533.85

Repayment

At the end of 2017, a little more than 12% of all the recipients were repaying their loan. Another 6.2% of them had repaid their loan in full.

Figure 16 indicates that, as of December 31, 2017^{Footnote 27} the status of the loan recipients:

the majority of apprentices (74%) were still in training
another 7% of the apprentices were still within the 6 months post training period where repaying the loan was not required

Figure 29 in Annex E also indicates that that 71.8% of the recipients surveyed who have either completed or discontinued their training are in repayment. Apprentices still in training are repaying their loans (20.6%).

Many recipients (81.6%) start repaying their loan before the end of their first year after training completion. About 10% of recipients start repaying their loan before completing their training as shown in Figure 30 in Annex E.

Figure 16: description follows — **Figure 16: Status of the loan for all the recipients at the end of calendar year 2017**

Loan status of recipients for 2017	On repayment assistance	In non-repayment	Paid in Full	In repayment	In training
Proportion of recipients	0.2%	7.1%	6.2%	12.4%	74.1%

Less than half of recipients who have completed their apprenticeship are aware of the Repayment Assistance Program.

Figure 17 shows that 43.7% of recipients who have completed their apprenticeship are aware of the Repayment Assistance Program. Awareness is higher among women (48.1%), Indigenous recipients (47.9%) and recipients with a disability (56%).

Figure 17 also shows that 6.5% of recipients in repayment are using the Repayment Assistance Program.^{Footnote 28} This program tends to be utilized more by women (7.3%), Indigenous recipients (9.7%), and recipients with a disability (14.2%).

Figure 17: description follows — **Figure 17: Proportion of loan recipients who have completed the apprenticeship program and are aware of the Repayment Assistance Program and using the Repayment Assistance Program (N=589)**

Apprentices who completed apprenticeship and are aware and use the Repayment Program	Total	Men	Women	Indigenous	Recipients with a disability
Using Repayment Assistance Program	6.5%	6.3%	7.7%	9.7%	14.2%
Aware Repayment Assistance Program	43.7%	43.4%	48.1%	47.9%	56.6%

Various subgroups are in greater need of assistance when it comes time to repay their loan. This is likely due to lower earnings upon completing apprenticeship training.

Figure 18 shows that a higher proportion of women in repayment (6.2%) compared to 1.5% of men in repayment use the repayment assistance program.^{Footnote 29} A higher proportion of apprentices from the Atlantic are relying on the repayment assistance program. A higher proportion of hairstylists (30%) and cooks (6.4%) are using the repayment assistance program as seen in Figure 31 in Annex E.

Figure 18: description follows — **Figure 18: Proportion of recipients in repayment using the Repayment Assistance Program**

Apprentice group by region	Proportion of recipients in repayment using the Repayment Assistance Program
All apprentices	1.7%
Men	1.5%
Women	6.2%
Atlantic	3.5%
Ontario	1.3%
Prairies	1.5%
British Columbia and Territories	1.8%

Conclusions

Despite the program being in the developmental stages, the findings indicate a need for the program. Importantly, various lines of evidence confirm that the loan contributes to the apprentices completing their training.

The program does not have an objective to use the loan as an incentive to join an apprenticeship program. However, it was observed that only one third of apprentices are aware of the loan prior to registering. Increasing awareness of the loan and its measures may contribute to higher levels of take-up than seen between 2015 and 2017.

Apprentices are making use of other federal government supports, such as the Apprenticeship Grant and Employment Insurance. Only 4% use the Canada Apprenticeship Loan on its own.

The program is still in developmental stages and a majority of the apprentices are still in training. This made assessing debt levels and repaying the loan in this evaluation formative in nature. A more comprehensive conclusion about these elements can be reported:

once the apprentices are no longer in training, and
the program has identified benchmarks related to take-up and repayment timelines

Recommendation

Consideration

The Canada Apprenticeship Loan is only one part of a broader suite of federal support measures for apprenticeships. The department should consider how the loan links into a broader Apprenticeship Strategy.

Management response and action plan

Recommendation #1

The program should focus on increasing awareness of the loans among underrepresented groups. Both in terms of promotion of the program and in terms of providing clarity about its principal features so more apprentices that are in need can benefit.

Management response and action plan

The program agrees that increasing CAL awareness and promotion to those individuals that would benefit from the apprenticeship loan. It will improve the uptake and provide the required supports needed to underrepresented groups.

Actions Planned: The department will include the Canada Apprentice Loan as part of the ongoing development of the Apprenticeship Strategy. It could include raising awareness of ESDC’s apprenticeship supports.

Anticipated Completion Date: Continuous.

Consideration #1

As the Canada Apprenticeship Loan is only one part of a broader suite of federal support measures for apprenticeships. The Department should consider how the loan links into a broader Apprenticeship Strategy.

Management response and action plan

The department agrees and supports the need to include the Canadian Apprenticeship Loan as part of a broader Apprenticeship Strategy.

Actions Planned: the department acknowledges this consideration.

Anticipated Completion Date: continuous.

Annex A: Evaluation questions and lines of evidence

For accessibility reasons, the information is presented in text format. Consult the PDF version for the table.

Evaluation question #1

Whether there is a need for the Canada Apprentice Loan, given existing apprentice support measures, the cost of technical training, and overall apprenticeship program costs.

To what extent do apprentices continue to be paid by their employer during their technical training?
To what extent do loans meet the needs of the different sub-populations of apprentices?
Are there other ways of providing support to apprentices during the technical training period that would better meet the needs of apprentices?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data, Surveys.

Evaluation questions #2

The extent to which the Canada Apprentice Loan participation and the take-up matched expectations.

What is the Canada Apprentice Loan participation and take-up rate by jurisdiction, gender, trade, year of program, etc.?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data.

Evaluation question #3

The timing for loans application as well as the number of applications by apprentices over their apprenticeship program.

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data, Surveys and Linked Registered Apprenticeship Information System with Employment and Social Development Canada administrative database.

Evaluation questions #4

The extent to which the Canada Apprentice Loan loans are used to cover the cost of technical training and other related expenses such as tools, additional living expenses, etc.

Lines of evidence

Surveys.

Evaluation question #5

To what extent are Canada Apprentice Loan borrowers using Repayment Assistance Plan during the first year after being required to start repayment?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data, Surveys.

Evaluation question #6

To what extent is it possible to isolate the impact of the Canada Apprentice Loan on the number of apprentices who complete their apprenticeship training?

Lines of evidence

Linked Registered Apprenticeship Information System with Employment and Social Development Canada administrative database.

Evaluation question #7

What is the overall amount of debt of Canada Apprentice Loan borrowers by jurisdiction, gender, etc.?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data.

Evaluation question #8

To what extent are Canada Apprentice Loan loans being repaid?

To what extent are Canada Apprentice Loan borrowers required to start repaying their loans upon completion of their apprenticeship program compared to other reason?
How does this vary by type of apprenticeship trade?
To what extent are Canada Apprentice Loan borrowers repaying their entire loan within one year after being required to start repayment?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data, Surveys.

Evaluation question #9

To what extent are apprentices using other financial support such as the Apprenticeship Incentive Grant, Employment Insurance benefits, and/or provincial/territorial financial assistance to cover the costs associated with technical training costs and overall apprenticeship program costs?

Lines of evidence

Linked Canada Apprentice Loan, Apprenticeship Grants and Employment Insurance administrative data, Surveys.

Evaluation question #10

The impacts of the service delivery strategy in delivering the Canada Apprentice Loan.

To what extent are Canada Apprentice Loan recipients satisfied with the service delivery?
Is there any barrier that prevents apprentices from applying for and receiving loans?
To what extent are Canada Apprentice Loan loans being delivered in a timely fashion?

Lines of evidence

Surveys.

Evaluation question #11

The extent to which apprentices and stakeholders (for example, career counsellors, unions, industry associations, etc.) are aware of the Canada Apprentice Loan and its features.

Lines of evidence

Surveys.

Annex B: Evaluation approach

Limitations

The impact study used for this evaluation suffered from an omitted variable bias. It likely overestimated the impact of the loan on the completion of an apprenticeship. For that reason, the key findings reported mention contribution of the program rather than impact
The Canada Apprentice Loan was introduced in 2015 and is a relatively new program which has not reached maturity. In addition, given that most (74.2%) of the recipients are still in apprenticeship training, assessment of repayment and impacts on the loan are limited. Efforts to filter out those in training in the analysis were made to respond to the evaluation questions. This sometimes resulted in a low sample size
The lack of indicators on some outcomes such as take-up rate or time to fully repay the loan make it difficult to assess whether the benchmarks were achieved or not
The variable for Canada apprentice Loan eligibility was not available in the Registered Apprenticeship Information System (RAIS). In that case, the evaluation had to rely on several proxies. This was done to estimate the take-up rate and the impact of the loan on completion leading to less precise estimates
Sample size for groups of apprentices such as women and Indigenous apprentices were too small to disaggregate the analysis. It also did not allow for a comprehensive Gender Based Analysis+ analysis

Lines of evidence and methodology

Administrative data analysis

The database used for this study contains and links information on apprentices from 3 sources:

Canada Apprentice Loan (CAL) administrative data
Apprenticeship Incentive Grant (AIG) and Apprenticeship Completion Grant (ACG) administrative
Employment Insurance (EI) administrative data pertaining to apprentices

These 3 files contains data on apprentices between calendar year 2015 and 2017.

Surveys

The database used for this study contains information on apprentices from 2 surveys:

Random survey of Canada Apprentice Loan recipients

Interview Method: Online and telephone
Sample Selection: Stratified random sample
Time of the Survey: March 18, 2019 to June 2, 2019
Sample size: n = 968
Approximate error rate (theoretical): + 3.1%, 19 times out of 20

Random survey of Canada Apprentice Loan eligible non-recipients

Interview Method: Telephone and online
Sample Selection: Stratified random sample
Time of the Survey: March 18, 2019 to June 2, 2019
Sample size: n = 853
Approximate error rate (theoretical): + 3.3%, 19 times out of 20

Integrated RAIS-ESDC Data Analysis

The RAIS-ESDC database contains information on apprentices from four sources:

Apprenticeship Incentive Grant (AIG) and Apprenticeship Completion Grant (ACG) administrative data
Canada Apprentice Loan administrative data
Employment Insurance administrative data on apprentices
Registered Apprenticeship Information System (Statistics Canada)

Depending on the personal identification information available, the integration of data are done using iterations of several deterministic and probabilistic record linkage methods. A standard probit and a nearest-neighbour matching algorithm applied to an average treatment effect are estimated to assess the impact of the loan:

on the probability of completing in an apprenticeship
on the probability of discontinuing in an apprenticeship

To ensure the group that received Canada Apprentice Loan could be adequately compared to those not receiving the Canada Apprentice Loan, the groups were matched using the following variables:

number of Canada Apprentice Loan used during apprenticeship training
stage during the apprenticeship when the Canada Apprentice Loan were used
gender
trade groups
an interaction term of Gender and Trade groups (for example Gender*Trade groups)
age (at Apprenticeship registration date) in age groups
province or territory
Indigenous status
number of technical levels required or program duration
program duration proxied by the number of technical training period required
number of technical training period completed to day
proportion of Apprenticeship training completed to day in categories
number of years since registration to apprenticeship
receipt of Level 1 Apprenticeship Incentive Grant
receipt of Level 2 Apprenticeship Incentive Grant
receipt of Apprenticeship Completion Grant
number of Canada Apprentice Loans received during apprenticeship training
receipt of Employment Insurance during apprenticeship training
number of Employment Insurance claims during apprenticeship
individual earnings up-to 5 years prior to apprenticeship training
family income up-to 5 years prior to apprenticeship training
receipt of Employment Insurance benefits up-to 5 years prior to apprenticeship training

Annex C: Description of the program

Introduced in 2015, the Canada Apprentice Loan is designed to help registered Red Seal apprentices cover the costs related to their apprenticeship. The program offers interest-free loans to help registered apprentices cope with the cost of their training. The Canada Apprentice Loan assists more apprentices in completing their training and encourages more Canadians to consider a career in the skilled trades. The table below outlines the program’s objectives, delivery and activities.

Canada Apprentice Loan

Program objective

The objective of the Canada Apprenticeship Loan is to offer interest-free loans to help registered apprentices with the cost of their training. The Canada Apprentice Loan is designed to:

assist more apprentices in completing their training
encourage more Canadians to consider a career in the skilled trades

Delivery

The program relies on collaboration and coordination between multiple bodies.

The Canada Apprentice Loan Service Centre handles:

the administrative responsibilities of processing loan applications
maintaining records during the borrowing and repayment periods

Public Services and Procurement Canada handles the disbursement of Canada Apprentice Loan funds. The Canada Revenue Agency is responsible for collections when Canada Apprentice Loans are in default. Technical training providers must confirm enrolment status in technical training periods before loans can be disbursed. The relevant province/territory must confirm registration status in an apprenticeship program for an apprentice to maintain eligibility for interest-free status.

Funding

In loan year 2015 to 2016, a total of 16,429 apprentices borrowed from the Canada Apprentice Loan, leading to disbursements totaling $69.4 million.

Funding activities

The Canada Apprentice Loan was designed to assist apprentices with the costs of completing periods of technical training required by their program, including:

educational fees
tools
equipment, living expenses and forgone wages

Eligible recipients

Apprentices in a designated Red Seal trade who go on technical training in a block-release are eligible. Apprentices from Quebec are not participating in block-release training so they are not eligible for the Canada Apprentice Loan.

Participants

Participants are defined as all apprentices in a designated Red Seal trade who are attending a technical training in a block release or the equivalent full-time technical training. These are defined by the applicable provincial or territorial apprenticeship authority.

Annex D: Logic model

Annex E: Additional figures and tables

**Table 4: Canada Apprentice Loans by calendar year**
Variable	2015	2016	2017	2018	2019
Number of Canada Apprentice Loans	16,400	17,800	15,400	14,500	13,400
Number of Canada Apprentice Loan recipients	14,800	15,900	13,800	13,300	12,400
Amount of Canada Apprentice Loans (millions of dollars)	$63	$69	$59.5	$56.2	$52.1

Figure 19: description follows — **Figure 19: Proportion of apprentices who had difficulty making ends meet during technical training**

Trade Group	Proportion of Apprentices who had difficulty making ends meet during technical training
Construction electrician	51.1%
Carpenter	45.7%
Automotive service technician	47.2%
Plumber	57.1%
Welder	59.4%
Hairstylists	41.6%
Steamfitter/Pipefitter	53.2%
Heavy duty equipement Technician	35.1%
Cooks	38.5%
Industrial mechanics (Millwrights)	45.2%
Industrial electrician	60.8%
Other	45.1%
Multiples trades	60.9%
One trade	47.9%

Figure 20: description follows — **Figure 20: How important does knowing about the Canada Apprentice Loan contribute to your decision to become an Apprentice? (N=564)**

Importance of loan in deciding to becoming an apprentice	Total	Men	Women	Indigenous	Apprentices with a disability	Annual earnings under $25,000	Annual earnings between $25,000 and $50,000
4 Important	17.4%	17.0%	20.2%	36.4%	22.1%	37.0%	21.6%
5 Very important	21.6%	21.3%	26.8%	28.5%	40.4%	22.5%	26.4%

Figure 21: description follows — **Figure 21: Estimated take-up rate for Canada Apprentice Loan by province**

Calendar Year for Take-up	Total Apprentices for Take-up	Newfoundland and Labrador	Prince Edward Island	Nova Scotia	New Brunswick	Ontario	Manitoba	Saskatchewan	Alberta	British Columbia	Territories
2015	28.0%	11.9%	11.2%	41.4%	31.0%	17.3%	28.2%	21.8%	34.6%	33.7%	28.4%
2016	35.2%	20.4%	28.3%	43.4%	34.0%	15.0%	32.6%	31.0%	52.2%	36.3%	55.7%
2017	32.2%	16.2%	33.4%	43.5%	31.2%	14.1%	30.1%	30.6%	52.5%	32.1%	47.2%
Total	31.6%	15.6%	23.9%	42.8%	32.0%	15.6%	30.3%	27.3%	44.9%	34.0%	25.3%

Figure 22: description follows — **Figure 22: Proportion of loan recipients receiving support from other Federal support measures for apprentices by trade groups**

Trade Group	Proportion of recipients using Canada Apprentice Loan only	Proportion of recipients using Canada Apprentice Loan and Apprenticehip Grants	Proportion of recipients using Canada Apprentice Loan and Employment Insurance	Proportion of recipients using Canada Apprentice Loan, Apprenticehip Grants and Employment Insurance
Construction electricians	2%	4.5%	12.4%	81.1%
Carpenters	4.6%	6.3%	16.7%	72.4%
Automotive service technicians	2.7%	4.1%	14.4%	78.8%
Plumbers	2.5%	3.7%	13.9%	79.9%
Welders	5.8%	9.8%	14.1%	70.3%
Hairstylists	19.1%	17%	21.3%	42.6%
Steamfitters/Pipefitters	4.9%	10%	14.4%	70.8%
Heavy duty equipment Technicians	3.1%	11%	12.8%	73.2%
Cooks	10.1%	22%	10.8%	57.1%
Millwrights	3.5%	14.6%	12.2%	69.6%
Industrial electricians	11.3%	18.4%	25.6%	44.7%
Other Red Seal trades	5.5%	7%	18.5%	69%

Figure 23: description follows — **Figure 23: Does the employer pay full wage, partial wage of other type of payment by selected group (N=198)?**

Type of wage	No Canada Apprentice Loan	Canada Apprentice Loan	Men	Women	All apprentices
No	18.5%	23.4%	22.6%	5.8%	20.5%
Full wage	58.2%	42.3%	48%	78.2%	51.8%
Partial wage, top-up	19.1%	28.8%	24.4%	16.1%	23.1%
Other	2.7%	0%	1.8%	0%	1.6%

**Table 5: Thinking more generally about your experience, what else could governments do to help support apprentices during their training?**
Suggested additional support	Non-recipients	Canada Apprentice Loan recipients	Total
More grants/funding	11.3% (N=91)	12.1% (N=122)	11.6% (N=214)
Reduce the costs of apprenticeships	4.6% (N=38)	3.7% (N=39)	4.1% (N=75)
Social Issues with Employment Insurance – shorter waiting period, access	11.8% (N=96)	8.3% (N=84)	9.9% (N=180)
Increase Employment Insurance amount	4.7% (N=39)	5% (N=50)	4.9% (N=89)
Structural changes to apprenticeship (ratios, help finding a job, interprovincial transfer, women in trades)	3.8% (N=31)	2.7% (N=27)	3.2% (N=58)
Employer involvement (release time / incentives / job security)	1.8% (N=15)	1.9% (N=19)	1.9% (N=34)
School training related (better teachers, courses, course offerings, locations, timing	5.4% (N=44)	3.2% (N=32)	4.2% (N=76)
Help for those financially vulnerable (single mom, low income family)	2.5% (N=20)	3.1% (N=31)	2.8% (N=51)

Source: ESDC-PRA Inc. Survey of Canada Apprentice Loan recipients and eligible non-recipients 2019

**Table 6: Average number of loans taken by different groups of recipients**
Recipients	Number of observations	Mean # of loans	Difference	P-Value	[95% Conf.	Interval
All apprentices	1,113	1.75	n/a	n/a	1.68	1.82
Women	316	1.7	-0.06	0.36	1.59	1.81
Indigenous	109	1.68	-0.08	0.54	1.45	1.92
Disabled	43	1.83	0.09	0.72	1.36	2.31
18 to 24 Years Old	162	1.64	-0.13	0.17	1.47	1.82
25 to 29 Years Old	361	1.77	0.01	0.84	1.65	1.88
30 to 39 Year Old	389	1.76	0.01	0.94	1.65	1.87
40 years old and older	163	1.85	0.11	0.29	1.66	2.03
Under $25,000 annual income	47	1.66	-0.11	0.57	1.29	2.03
$25,000 to $50,000 annual income	239	1.91	0.18	0.06	1.73	2.08
$50,000 to $75,000 annual income	307	1.88	0.17	0.03	1.75	2.01
$75,000 to $100,000 annual income	219	1.64	-0.16	0.03	1.51	1.76
$100,000 to $150,000 annual income	150	1.65	-0.13	0.13	1.49	1.81
Over $150,000 annual income	49	1.5	-0.28	0.04	1.23	1.76

Source: ESDC-PRA Inc. Survey of Canada Apprentice Loan recipients and eligible non-recipients 2019

Figure 24: description follows — **Figure 24: Proportion of recipients indicating that the loan was important in helping them covering the cost of the apprenticeship training by trade groups (N=1,083)**

Trade group	Proportion of recipients indicating that the loan was important in helping them covering the cost of the apprenticeship training
Construction electrician	78.3%
Carpenter	80.7%
Automotive service technician	83.7%
Plumber	84.5%
Welder	86.3%
Hairstylists	96.5%
Steamfitter/Pipefitter	90.3%
Heavy duty equipment Technician	82.3%
Cooks	79.5%
Industrial mechanics (Millwrights)	76.8%
Industrial electrician	80.8%
Other	77.2%
Multiples trades	73.6%
One trade	80.9%

Figure 25: description follows — **Figure 25: Use of Canada Apprentice Loan by trade (N=1,083)**

Trade Group	Make ends meet	Buy training books / computer / uniform	Buy trade-specific tools	Pay tuition and other fees
Construction electrician	74.2%	39.8%	23.7%	40%
Carpenters	83%	26.8%	34.3%	26.7%
Automotive service technician	84.3%	38.3%	23%	46.7%
Plumber	76.4%	56.6%	27.5%	48%
Welder	92.9%	49.3%	38.2%	46.2%
Hairstylist	49.7%	19.2%	39.8%	24.7%
Steamfitter/Pipefitter	92.4%	39.9%	16.1%	33.7%
Heavy duty equipment Technician	70%	28.2%	16.5%	49%
Cook	23.7%	44.3%	49.8%	73.1%
Industrial mechanic (Millwrights)	76.2%	41%	31.5%	33.7%
Industrial electrician	88.4%	65.7%	36.7%	72.7%
Other	79.9%	29%	23.6%	34%
One trade	79.3%	37%	25.4%	38.6%
Multiples trades	83%	60.9%	34.2%	59.6%

Figure 26: description follows — **Figure 26: Total amount of debt by gender**

Gender	Level of debt
Total	$5,533.85
Women	$5,288.70
Men	$5,547.92

Figure 27: description follows — **Figure 27: Level of satisfaction of Canada Apprentice Loan recipients with service delivery by education level (N=1,111)**

Level of satisfaction of service delivery	Less than high school	High school graduate	Some college/ apprenticeship	Some university	College graduate/ another apprenticeship program	University graduate
Satisfied with the information provided prior to loan	63.6%	67.6%	69.0%	66.7%	75.0%	85.6%
Satisfied with the application process	65.1%	77.9%	74.5%	76.9%	85.2%	92.9%
Satisfied with the ease of the application process	69.5%	73.2%	65.3%	75.2%	82.6%	94.3%
Satisfied with the updates on amount owed	35.5%	44.2%	54.5%	42.7%	44.1%	48.4%

Figure 28: description follows — **Figure 28: Timeliness of the loan by region (the time from application to receipt). (N=1,083)**

Level of timeliness of loan by region	1 Atlantic	2 Ontario	3 Prairies	4 BC and Territories
1 - Not at all satisfied	1.4%	1.7%	1.3%	1.3%
2- Not satisfied	2.9%	4.1%	3.2%	3.4%
3- Neutral	15.0%	17.2%	12.6%	9.6%
4- Satisfied	34.9%	35.2%	26.4%	32.8%
5- Very satisfied	45.8%	41.0%	56.1%	52.8%

Figure 29: description follows — **Figure 29: Percentage of Recipients in Repayment by status of their apprenticeship (N=1,083)**

Status of apprentice	In repayment	Not In repayment
Dropout	56.2%	32.4%
Completed	73.5%	26.5%
Continuing	20.6%	63.4%

Figure 30: description follows — **Figure 30: Stage at which recipients start repaying their loan (N=354)**

Stage of apprenticeship	Percentage start repaying
Before completing training	9.5%
Year of completion	33.0%
1 Year after completion	39.1%
More than 1 year after completion	11.8%
Non-response	6.6%

Figure 31: description follows — **Figure 31: Proportion of loan recipients in repayment using the Repayment Assistance Program**

Trade group	% Loan recipients using Repayment Assistance Program
Construction electricians	1.6%
Carpenters	0.3%
Automotive service technicians	3.1%
Plumbers	3.0%
Welders	2.4%
Hairstylists	30.0%
Steamfitters/Pipefitters	1.2%
Heavy duty equipment technicians	1.5%
Cooks	6.4%
Millwrights	1.4%
Industrial electricians	0.0%
Other Red Seal trades	1.0%
Total	1.7%

Figure 32: description follows — **Figure 32: Proportion of recipients that used the loan toward these specifics items (N=1,083)**

Items loan was used for	$25,000 to under $50,000	$50,000 to under $75,000	$75,000 to under $100,000	$100,000 to under $150,000	$150,000 or more
Make ends meet	78.4%	80.4%	82.0%	76.2%	72.7%
Pay off higher interest debt	28.9%	29.0%	27.0%	24.3%	31.3%
Buy training books / computer / uniform	40.5%	34.6%	40.6%	34.2%	32.1%
Buy trade-specific tools	27.1%	26.3%	26.3%	21.8%	27.9%
Pay tuition and other fees	44.2%	36.5%	36.5%	42.9%	29.4%

**Table 7: Estimates from a probit model with completion as the dependent variable by gender**
Parameter	All apprentices	Men	Women
Number of apprentices	114,685	100,080	14,711
Used the Canada Apprentice Loan (any number of loans)	0.96***	0.93***	0.5
Standard Errors	-0.128	-0.124	-0.524
Number of loans used per apprentice	(0.37***)	(0.34***)	-0.27
Standard errors	-0.121	-0.117	-0.516

Note: *** Significant at the 1% confidence level.
Source: Registered Apprenticeship Information System, Apprenticeship Grants and Employment Insurance administrative data

**Table 8: Estimates from a nearest-neighbour matching model with completion as the dependent variable**
Parameter	All apprentices	Men	Women
Number of observations	451,914	226,357	225,557
Used Canada Apprentice Loan	18.2***	15.7***	17.8***
Standard errors	-0.012	-0.041	-0.019
One loan used (percentage points)	25.3***	23.5***	25.3***
Standard Errors	-0.006	-0.007	-0.009
Two loans used (percentage points)	31.7***	37.1***	18.8***
Standard errors	-0.023	-0.16	-0.064
Three loans used (percentage points)	8.7	-10.6	49.0***
Standard errors	-0.09	-0.112	-0.013

Note: *** Significant at the 1% confidence level.
Source: Registered Apprenticeship Information System, Apprenticeship Grants and Employment Insurance administrative data

Footnotes

Footnote 1

Evidence coming from the administrative data use calendar years 2015 to 2017.

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Footnote 2

A more detailed list of evaluation questions is presented in Annex A while the methodology used for this evaluation and its limitation in Annex B.

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Footnote 3

A survey and an integrated database were used to generate the findings for this report.

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Footnote 4

Phase 1 of the Evaluation of the Canada Apprentice Loan estimated the take-up rate in 2015 at 41%. More recent data on the number of loans disbursed can seen in Table 4 in Annex E but these are not take-up rate as the program does not calculate such a figure.

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Footnote 5

A more detailed description of the program is presented in Annex C.

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Footnote 6

The logic model for the Canada Apprentice Loan program is presented in Annex D.

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Footnote 7

In every jurisdiction except Quebec, employers agree to release the apprentice to attend technical training for 6 to 12 weeks in alternation with on-the-job periods.

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Footnote 8

In 2011, the tuition tax credit was extended to include tax relief for trade examinations. The examination fee must be greater than $100 to be eligible.

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Footnote 9

Labour Force Survey 2015, Statistics Canada.

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Footnote 10

Ibid.

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Footnote 11

Registered Apprenticeship information System 2017, Statistics Canada

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Footnote 12

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

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Footnote 13

Hairstylists (41.6%) and cooks (35.8%) have said that they had difficulties making ends meet as seen in Annex E, Figure 19. However, with a sample size of 5 and 3 observations respectively, it is not possible to make a broad generalization.

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Footnote 14

It should be noted that the Canada Apprentice Loan does not have an official objective to have apprentices know about the program prior to registering to their apprenticeship. For more information on this, see the logic model of the Canada Apprentice Loan in Appendix A.

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Footnote 15

The administrative data used for the analysis included data for calendar years 2015 to 2017. This is why the loan status (in other words In repayment) is at the December 31, 2017 point.

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Footnote 16

A simple t-test to compare the level of satisfaction across education level shows that the difference in level of satisfaction is not always statistically significant for the education level below some college.

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Footnote 17

When the program was launched, it was specified that "applicants that submit all the necessary information can expect to receive their loan within 7 to 10 business days from the time the application is received". For further information, see archived page at Canada Apprentice Loan - Backgrounder.

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Footnote 18

Both tables show answers for around 45% of the apprentices, another 36% did not provide an answer to this question while roughly 7% of them said that the program was fine.

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Footnote 19

Most of the loan recipients in this dataset are still in training which means that their result is still not captured by the model. There is a possibility that those who are more likely to complete their training are still continuing while those who have dropped out are already captured.

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Footnote 20

Magnitude of the coefficient in terms of percentage change will not be disclosed here due to the limitations discussed in Annex B.

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Footnote 21

A distinction has to be made between compulsory trades and voluntary trades. For apprentices in compulsory trades, they have to complete their training to be able to work in the field while this requirement is not mandatory for those in voluntary trades. In that sense, apprentices in compulsory trades have an incentive to complete their training that does not exist in voluntary trades. This is the main factor explaining the difference in impact between both types of trades.

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Footnote 22

Ibid.

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Footnote 23

A high percentage of hairstylists pay for their tuition at private colleges and receive their technical training before registering as apprentices. Therefore, they would not qualify for the Canada Apprentice Loan or employment insurance. The sample size for Hairstylists and cooks is also low so we have to be careful with the inference on these results.

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Footnote 24

A high percentage of cooks receive technical training on a day release model. Therefore, they would not qualify for the Canada Apprentice Loan or employment insurance.

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Footnote 25

A simple t-test to test the significance of the difference between the amount of debt owed these trade groups and the national average showed a p-value below 0.001.

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Footnote 26

A simple t-test to test the significance of the difference between the amount of debt owed by men and women showed a p-value below 0.001

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Footnote 27

The administrative data used for the analysis included data for calendar years 2015 to 2017. This is why the loan status (in other words In repayment) is at the December 31, 2017 point.

Return to footnote 27 referrer

Footnote 28

Note that estimates for this slide come from the surveys and come with a margin of error shown in Annex B while estimates from the next slide come from the administrative data. This explains the small discrepancy between the percentage of recipients using the Repayment Assistance Program.

Return to footnote 28 referrer

Footnote 29

Note that estimates for this slide come from the administrative data of the program while estimates from the previous slide come from the surveys. This explains the small discrepancy between the percentage of recipients using the Repayment Assistance Program.

Return to footnote 29 referrer

Page details

Date modified:: 2021-04-07

Evaluation of the Canada Apprentice Loan - Phase 2

On this page

Alternate formats

List of figures

List of tables

List of acronyms and abbreviations

Introduction

Key evaluation findingsFootnote 3

Recommendation

Consideration

Program background

Role of government in apprenticeship

Key findings

Need for the loan

Awareness

Take-up

Satisfaction levels

Impact of services

Loan and completion

Other supports

Debt

Repayment

Conclusions

Recommendation

Consideration

Management response and action plan

Recommendation #1

Management response and action plan

Consideration #1

Management response and action plan

Annex A: Evaluation questions and lines of evidence

Evaluation question #1

Lines of evidence

Evaluation questions #2

Lines of evidence

Evaluation question #3

Lines of evidence

Evaluation questions #4

Lines of evidence

Evaluation question #5

Lines of evidence

Evaluation question #6

Lines of evidence

Evaluation question #7

Lines of evidence

Evaluation question #8

Lines of evidence

Evaluation question #9

Lines of evidence

Evaluation question #10

Lines of evidence

Evaluation question #11

Lines of evidence

Annex B: Evaluation approach

Limitations

Lines of evidence and methodology

Administrative data analysis

Surveys

Integrated RAIS-ESDC Data Analysis

Annex C: Description of the program

Canada Apprentice Loan

Program objective

Delivery

Funding

Funding activities

Eligible recipients

Participants

Annex D: Logic model

Annex E: Additional figures and tables

Page details

Key evaluation findings^{Footnote 3}