HUMA Committee briefing binder: Appearance by the Minister of Employment, Workforce Development and Official Languages - May 6, 2024

Official title: Minister Of Employment, Workforce Development and Official Languages, Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), Supplementary Estimates (C) for the Fiscal Year 2023 to 2024 and the Main Estimates for the Fiscal Year of 2024 to 2025. Date: May 6, 2024, 3:30-4:30 p.m.

1. Opening remarks

1.a. Minister's opening remarks

Speaking notes for the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages for Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) in relation to the Main Estimate 2024-25 & Supps C 2023-24 - House of Commons.

May 6, 2024

Check against delivery.

Good morning/afternoon, Mr. Chair, and committee members.

Let me start by acknowledging that we are gathered on the traditional unceded territory of the Algonquin Anishinaabeg People. (if not already said). Thank you for inviting me today. It's a welcome opportunity for me to highlight the progress being made on developing Canada's future workforce-and our plans for overcoming the challenges we face.

We're all familiar with the challenges. The grey tsunami. An exodus of older workers leaving the work force quicker than we can replace them. The need for green collar workers of the future to be skilled in a world of automation, digitization, and generative Artificial Intelligence.

In a nutshell, we are faced with a rapid loss of experienced workers, coupled with a shortfall of workers equipped with the skill sets that will help drive the increase in productivity needed for a strong economy.

I didn't come here to be the voice of doom and gloom. Far from it. Our fundamentals are in great shape. International investors love us. It's why we've got the third highest foreign direct investment in the world right now. Divide that by our population and we're number one-ahead of all our G7 allies.

I have limited time, so I'd like to highlight a few items of special interest. And of course, I'd like to shine a light on some Budget 2024 measures.

We're working to bring more workers into the labour force. We're already supporting students with grants and interest-free loans. We intend to increase that with $1.1 billion in new funding. And programs like the Student Work Placement Program and Canada Summer Jobs are helping students and employers both to find "the right fit".

And for the skilled trades, we invest nearly $1 billion annually in apprenticeship supports through grants, loans, tax credits, Employment Insurance benefits during in-school training, project funding, and support for the Red Seal program.

Equity-deserving groups-women, persons with disabilities, Indigenous people, members of the 2SLGBTQI+ communities, newcomers, and racialized communities-are under-represented in the labour force.

We're unlocking their potential. We're supporting employers who hire from these groups. We're supporting training and opportunities for women in the skilled trades. And in Budget 2024, we announced our intention to invest $99.4 million each year through the co-developed Indigenous Skills and Employment Training Program to help Indigenous Peoples improve their skills and find better employment.

We're also reducing barriers for newcomers to join the workforce by recognizing their credentials, especially in the healthcare and construction sectors. We aim to speed up Foreign Credential Recognition across the country with a $50 million investment through Budget 2024.

As for those disruptions related to evolving technologies, we're working on that, too. We intend to support workers in industries that may be affected by artificial intelligence to provide new skills training, with a Budget 2024 investment of $50 million over four years.

Sustainable jobs

The labour force of the future is all about sustainable jobs and the opportunities those green collar jobs will offer Canadian workers.

Achieving our net-zero goals will depend on a workforce equipped with the right skills.

Mr. Chair, it's exactly why we tabled Bill C-50, the Canadian Sustainable Jobs Act-to ensure Canada meets its net-zero goals, without leaving workers behind.

The Government of Canada recently launched the Sustainable Jobs Training Fund, to support a series of training projects that will help over 15,000 workers upgrade or gain new skills for jobs in the low-carbon economy.

The Government will also launch a new Union Training and Innovation Program (UTIP) Sustainable Jobs stream under the Canadian Apprenticeship Strategy in the coming months, and is expected to benefit over 20,000 apprentices and journeypersons in the skilled trades.

I've seen the incredible work by unions, businesses, polytechnics, schools and institutions to train up the twenty-first century workforce. Our continued support for those efforts is essential to delivering on the great promise of Canada.

Thank you, Mr. Chair and committee members. I'll happily answer any and all questions.

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2. Background information

2.a. Parliamentary environment scenario note

Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Supplementary Estimates (C), 2023-2024 and Main Estimates 2024-2025.

Committee proceedings

Your appearance is scheduled to take place on May 6, 2024, from 3:30 p.m. until 4:30 p.m. and will be followed by Minister Beech for the second panel on that day. Other ESDC Ministers will appear at earlier and later dates.

You will be accompanied by:

Paul Thompson, Deputy Minister
Tina Namiesniowski, Senior Associate Deputy Minister
Brian Leonard, Director General and Deputy Chief Financial Officer

You have no outstanding follow up written responses due to the Committee.

HUMA has agreed that questioning of witnesses would be allocated as follows:

In round one, there are six minutes for each party in the following order:

Conservative Party
Liberal Party
Bloc Québécois
New Democratic Party

For the second and subsequent rounds, the order and time for questioning is as follows:

Conservative Party, 5 minutes;
Liberal Party, 5 minutes;
Bloc Québécois, 2 and a half minutes;
New Democratic Party, 2 and a half minutes;
Conservative Party, 5 minutes; and
Liberal Party, 5 minutes.

Parliamentary environment

HUMA members have consistently shown an interest in a number of your files, and as such, the range of questions you are expected to receive is quite broad but should coalesce around the five following themes:

Employment Insurance has been a consistent topic of discussion at HUMA and is expected to be the source of many questions, notably on:

Employment Insurance modernization - maternity and parental benefits
Employment Insurance Board of Appeal
Covid benefit recovery

Temporary Foreign Worker Program

Temporary Foreign Worker Inspections
Adjustment to temporary measures under the Temporary Foreign Worker Program Workforce Solutions Road Map effective May 1, 2024

Implications of AI Technologies for the Canadian Labour Force: the committee has held a number of meetings on this topic and is currently drafting its report which is expected to be tabled shortly.

Labour Market Shortages:

Potential rising unemployment
Skilled trade workers to fill labour and skills shortages

Learning: ESDC officials were recently before the Standing Senate Committee on National Finance, and Senators had several questions pertaining to learning files.

Canada Student Financial Assistance Program - debt write-off in the Supplementary Estimates (C)
Skilled Trades Awareness and Readiness Program - funding

2.b. Placemat on Canada's socio-economic situation

List of acronyms

BOC - Bank of Canada
CMHC - Canada Mortgage and Housing Corporation
CPI - Consumer Price Index
GDP - gross domestic product
LFS - Labour Force Survey
MBM-N - Northern Market Basket Measure
OECD - Organisation for Economic Co-operation and Development

Canada's socio-economic context: economic context

Table 1: Annual change in gross domestic product growth by industry, Canada, provinces and territories, 2022
Geography	GDP growth rate, 2022 (%)	GDP Goods-producing industries growth rate, 2022 (%)	GDP Service-producing industries growth rate, 2022 (%)
Canada	3.6	3.4	3.7
Newfoundland and Labrador	-1.7	-6.3	2.4
Prince Edward Island	2.9	1.0	3.6
Nova Scotia	2.6	2.5	2.6
New Brunswick	1.8	1.1	2.1
Quebec	2.6	0.8	3.3
Ontario	3.6	1.6	4.1
Manitoba	3.9	7.8	2.4
Saskatchewan	5.7	10.3	2.0
Alberta	5.1	6.6	3.9
British Columbia	3.6	3.3	3.7
Yukon	3.3	5.3	2.6
Northwest Territories	1.5	0.3	2.0
Nunavut	1.6	3.0	0.2

Table 2: Real GDP growth in Canada and selected OECD countries in 2023
Country	GDP growth rate, (%) 2023
United States	2.5
OECD	1.7
G7	1.7
Canada	1.2
France	0.7
United Kingdom	0.1

Table 3: Annual change in consumer price index (not seasonally adjusted) and the Bank of Canada inflation target from January 2020 to March 2024
Period	Annual change in CPI (%)	Average annual change in CPI, 2022 (%)	Average annual change in CPI, 2023 (%)	Bank of Canada target (%)
January 2020	2.4	6.8	3.9	1.0 - 3.0
February 2020	2.2	6.8	3.9	1.0 - 3.0
March 2020	0.9	6.8	3.9	1.0 - 3.0
April 2020	-0.2	6.8	3.9	1.0 - 3.0
May 2020	-0.4	6.8	3.9	1.0 - 3.0
June 2020	0.7	6.8	3.9	1.0 - 3.0
July 2020	0.1	6.8	3.9	1.0 - 3.0
August 2020	0.1	6.8	3.9	1.0 - 3.0
September 2020	0.5	6.8	3.9	1.0 - 3.0
October 2020	0.7	6.8	3.9	1.0 - 3.0
November 2020	1.0	6.8	3.9	1.0 - 3.0
December 2020	0.7	6.8	3.9	1.0 - 3.0
January 2021	1.0	6.8	3.9	1.0 - 3.0
February 2021	1.1	6.8	3.9	1.0 - 3.0
March 2021	2.2	6.8	3.9	1.0 - 3.0
April 2021	3.4	6.8	3.9	1.0 - 3.0
May 2021	3.6	6.8	3.9	1.0 - 3.0
June 2021	3.1	6.8	3.9	1.0 - 3.0
July 2021	3.7	6.8	3.9	1.0 - 3.0
August 2021	4.1	6.8	3.9	1.0 - 3.0
September 2021	4.4	6.8	3.9	1.0 - 3.0
October 2021	4.7	6.8	3.9	1.0 - 3.0
November 2021	4.7	6.8	3.9	1.0 - 3.0
December 2021	4.8	6.8	3.9	1.0 - 3.0
January 2022	5.1	6.8	3.9	1.0 - 3.0
February 2022	5.7	6.8	3.9	1.0 - 3.0
March 2022	6.7	6.8	3.9	1.0 - 3.0
April 2022	6.8	6.8	3.9	1.0 - 3.0
May 2022	7.7	6.8	3.9	1.0 - 3.0
June 2022	8.1	6.8	3.9	1.0 - 3.0
July 2022	7.6	6.8	3.9	1.0 - 3.0
August 2022	7.0	6.8	3.9	1.0 - 3.0
September 2022	6.9	6.8	3.9	1.0 - 3.0
October 2022	6.9	6.8	3.9	1.0 - 3.0
November 2022	6.8	6.8	3.9	1.0 - 3.0
December 2022	6.3	6.8	3.9	1.0 - 3.0
January 2023	5.9	6.8	3.9	1.0 - 3.0
February 2023	5.2	6.8	3.9	1.0 - 3.0
March 2023	4.3	6.8	3.9	1.0 - 3.0
April 2023	4.4	6.8	3.9	1.0 - 3.0
May 2023	3.4	6.8	3.9	1.0 - 3.0
June 2023	2.8	6.8	3.9	1.0 - 3.0
July 2023	3.3	6.8	3.9	1.0 - 3.0
August 2023	4.0	6.8	3.9	1.0 - 3.0
September 2023	3.8	6.8	3.9	1.0 - 3.0
October 2023	3.1	6.8	3.9	1.0 - 3.0
November 2023	3.1	6.8	3.9	1.0 - 3.0
December 2023	3.4	6.8	3.9	1.0 - 3.0
January 2024	2.9	6.8	3.9	1.0 - 3.0
February 2024	2.8	6.8	3.9	1.0 - 3.0
March 2024	2.9	6.8	3.9	1.0 - 3.0

Table 4: Annual average and growth in Consumer Price Index, (%), monthly, not seasonally adjusted
Geography	Annual average, 2023 (%)	Year-over-year growth, March 2024 (%)
Canada	3.9	2.9
Newfoundland and Labrador	3.3	3.1
Prince Edward Island	2.9	2.6
Nova Scotia	4.1	3.3
New Brunswick	3.6	2.6
Quebec	4.5	3.6
Ontario	3.8	2.6
Manitoba	3.6	0.8
Saskatchewan	3.9	1.5
Alberta	3.3	3.5
British Columbia	4.0	2.7
Whitehorse, Yukon	4.9	2.4
Yellowknife, Northwest Territories	3.3	2.2
Iqaluit, Nunavut	2.5	2.2

Canada's socio-economic context: key labour market issues

Table 5: Job vacancies by province, adjusted for seasonality
Geography	January 2023	January 2024
Canada	858,820	632,105
Newfoundland and Labrador	7,560	7,520
Prince Edward Island	3,430	2,695
Nova Scotia	20,150	14,290
New Brunswick	14,365	11,230
Quebec	212,420	157,500
Ontario	308,635	213,955
Manitoba	30,765	21,620
Saskatchewan	23,165	18,510
Alberta	98,730	71,490
British Columbia	135,945	109,425

Table 6: Job vacancy rate (%), monthly, from January 2020 to January 2024
Period	Job vacancy rate (%)
January 2020	3.5
February 2020	3.4
March 2020	3.2
April 2020	Not available
May 2020	Not available
June 2020	Not available
July 2020	Not available
August 2020	Not available
September 2020	Not available
October 2020	3.7
November 2020	3.6
December 2020	3.6
January 2021	3.6
February 2021	3.9
March 2021	4.1
April 2021	4.1
May 2021	4.2
June 2021	4.8
July 2021	4.9
August 2021	5.2
September 2021	5.4
October 2021	5.4
November 2021	5.3
December 2021	5.7
January 2022	5.4
February 2022	5.3
March 2022	5.7
April 2022	5.7
May 2022	5.7
June 2022	5.6
July 2022	5.5
August 2022	5.2
September 2022	5.2
October 2022	5.0
November 2022	4.9
December 2022	4.8
January 2023	4.8
February 2023	4.7
March 2023	4.5
April 2023	4.5
May 2023	4.4
June 2023	4.2
July 2023	4.0
August 2023	3.9
September 2023	3.6
October 2023	3.7
November 2023	3.7
December 2023	3.6
January 2024	3.6

Canada's socio-economic context: financial and housing pressures

Table 7: Policy interest rate and Conventional mortgage lending rate (%), from January 2020 to March 2024
Period	Bank of Canada Policy Interest rate, end-period (%)	Conventional mortgage lending rate, 5-year term (%)
January 2020	1.8	4.1
February 2020	1.8	4.1
March 2020	0.3	3.9
April 2020	0.3	4.0
May 2020	0.3	3.9
June 2020	0.3	3.8
July 2020	0.3	3.6
August 2020	0.3	3.6
September 2020	0.3	3.5
October 2020	0.3	3.5
November 2020	0.3	3.4
December 2020	0.3	3.3
January 2021	0.3	3.3
February 2021	0.3	3.3
March 2021	0.3	3.3
April 2021	0.3	3.3
May 2021	0.3	3.3
June 2021	0.3	3.3
July 2021	0.3	3.2
August 2021	0.3	3.2
September 2021	0.3	3.2
October 2021	0.3	3.3
November 2021	0.3	3.4
December 2021	0.3	3.5
January 2022	0.3	3.4
February 2022	0.3	3.6
March 2022	0.5	3.8
April 2022	1.0	4.2
May 2022	1.0	4.6
June 2022	1.5	5.1
July 2022	2.5	5.5
August 2022	2.5	5.6
September 2022	3.3	5.6
October 2022	3.8	5.8
November 2022	3.8	5.9
December 2022	4.3	5.9
January 2023	4.5	5.9
February 2023	4.5	5.8
March 2023	4.5	5.8
April 2023	4.5	5.8
May 2023	4.5	5.7
June 2023	4.8	5.9
July 2023	5.0	6.0
August 2023	5.0	6.2
September 2023	5.0	6.3
October 2023	5.0	6.4
November 2023	5.0	6.5
December 2023	5.0	6.4
January 2024	5.0	6.3
February 2024	5.0	6.2
March 2024	5.0	6.1
April 2024	5.0	6.1

Table 8: Debt-to-income ratio (%), annual average, from 2020 to 2023
Period	Debt -to-Income ratio annual average (%)
2020	177
2021	182
2022	186
2023	187

Table 9: Home ownership rate (%), 2011 compared to 2021
Geography	Abbreviation	Home ownership rate, 2011 (%)	Home ownership rate, 2021 (%)
Canada	CA	69.0	66.5
Newfoundland and Labrador	NL	77.5	75.7
Prince Edward Island	PE	73.4	68.8
Nova Scotia	NS	70.8	66.8
New Brunswick	NB	75.7	73.0
Quebec	QC	61.2	59.9
Ontario	ON	71.4	68.4
Manitoba	MB	70.1	67.4
Saskatchewan	SK	72.6	70.7
Alberta	AB	73.6	70.9
British Columbia	BC	70	66.8
Yukon	YT	66.5	64.4
Northwest Territories	NT	51.5	53.5
Nunavut	NU	21.0	19.2

Canada's socio-economic context: demographic & labour market outcomes

Table 10: Growth rate and share of population 2024 (%)
Geography	Abbreviation	Population growth rate, Q1 2024 (%)	Canada growth rate, Q1 2024 (%)	Share of population, Q1 2024 (%)
Canada	CA	3.2	3.2	100.0
Newfoundland and Labrador	NL	1.0	3.2	1.3
Prince Edward Island	PE	3.7	3.2	0.4
Nova Scotia	NS	2.8	3.2	2.6
New Brunswick	NB	3.1	3.2	2.1
Quebec	QB	2.5	3.2	22.0
Ontario	ON	3.5	3.2	39.0
Manitoba	MB	2.9	3.2	3.6
Saskatchewan	SK	2.6	3.2	3.0
Alberta	AB	4.4	3.2	11.8
British Columbia	BC	3.3	3.2	13.8
Yukon	YT	2.3	3.2	0.1
Northwest Territories	NT	0.5	3.2	0.1
Nunavut	NU	0.5	3.2	0.1

Table 11: Unemployment rate, participation rate and wage rate (%) in March 2024
Geography	Unemployment rate, March 2024 (%)	Participation rate, March 2024 (%)	Average hourly wage rate, March 2024 (current $)
Canada	6.1	65.3	34.8
Newfoundland and Labrador	10.1	58.9	31.9
Prince Edward Island	7.4	66.7	29.5
Nova Scotia	6.2	62.4	30.1
New Brunswick	7.8	60.7	30.3
Quebec	5.0	64.5	33.6
Ontario	6.7	65.0	35.9
Manitoba	5.0	66.1	30.2
Saskatchewan	5.4	66.9	32.4
Alberta	6.3	69.5	36.1
British Columbia	5.5	65.3	36.4
Yukon	4.3	73.8	Not available
Northwest Territories	5	69.5	Not available
Nunavut	8.7	60.2	Not available

Canada's socio-economic context: under-represented groups

Table 12: Participation, rate employment rate and unemployment rate for selected under-represented groups(%) in 2023
Under-represented group	Participation rate, annual 2023 (%)	Employment rate, annual 2023 (%)	Unemployment rate, annual 2023 (%)
Working - age population (15-64 years)	80.2	75.8	5.5
Indigenous population (15-64 years)	72.5	66.1	8.9
Non-Indigenous population	80.4	76.1	5.4
Visible Minority (15 years and over)	71.1	66.2	6.9
Not a visible minority	63.4	60.4	4.8
Disabled (16-64 years)	69.9	65.1	6.9
Not disabled	83.2	80.1	3.8
Female (15-64 years)	77.2	73.0	5.3
Male	83.2	78.5	5.6
Younger people (15-24 years)	65.0	58.0	10.8
Older people (55-64 years)	68.0	64.8	4.7
Recent immigrants (15 years and over)	77.4	70.6	8.8
Established immigrants	62.3	59.2	5.0

Canada's socio-economic context: poverty

Table 13: Poverty rate and annual percentage point change (%) between 2020 and 2021
Geography	Poverty rate, 2021 (%)	Change from 2020 (percentage points)
Canada	7.4	1.0
Newfoundland and Labrador	8.1	1.1
Prince Edward Island	7.4	-0.2
Nova Scotia	8.6	0.9
New Brunswick	6.7	-0.9
Quebec	5.2	0.4
Ontario	7.7	0.9
Manitoba	8.8	2.0
Saskatchewan	9.1	2.4
Alberta	7.8	2.3
British Columbia	8.8	1.2
Yukon	7.7	-1.1
Northwest Territories	15	4.8
Nunavut	39.7	2.2

Table 14: Poverty rate in Canada, annual (%), from 2015 to 2021
Period	Canada's Official Poverty rate (%)
2015	14.5
2016	12.9
2017	11.9
2018	11.2
2019	10.3
2020	6.4
2021	7.4

Table 15: Poverty rate among selected groups (%), 2020 compared to 2021
Demographic group	Poverty rate, 2020 (%)	Poverty rate, 2021 (%)
Non-elderly persons not in an economic family	27.3	26.2
Indigenous population living off-reserve	10.9	12.3
Persons with disabilities aged 15 and over	8.5	10.6
Visible minority population	8.0	9.5
Immigrants aged 15 years and over	6.8	8.1
All persons	6.4	7.4

Canada's socio-economic context: annex

2.c. Mandate letter tracker

Overview of Minister Boissonnault's Mandate Letter Commitments - May 6, 2024

Train 5,000 to 50,000 new Personal Support Workers

Train 5,000 to 50,000 new Personal Support Workers - Progress 1

The Government is taking a holistic approach to fulfilling this commitment through its existing suite of skills and training programs and initiatives. To begin with, as announced in the 2020 Fall Economic Statement, the Government is currently funding a $38.5 million pilot project to help address labour shortages in long-term and home care.

The Long Term and Home Care Pilot Project continues to provide training. As of October 2023, there were 2,000 students in online training. 1,427 students have received paid work placements, 822 have already graduated and 129 are pursuing PSW certification.

Additionally, it is estimated that approximately 2,500 Personal Support Workers benefit from the Labour Market Transfer Agreements for training purposes each year. This means that up to 7,500 Personal Support Workers could be trained through these agreements by October 2025. The Future Skills Centre also supports the training of personal support workers through investments in 3 projects, which are expected to benefit up to 150 personal support workers.

In addition to training opportunities, a National Occupational Standard for Personal Support Workers has been developed. It serves as a set of voluntary guidelines to address skills gaps within the occupation as well as inconsistencies across jurisdictions. It can be used as a guideline to create workplace standards, performance expectations, and as the basis for developing training curriculum.

Train 5,000 to 50,000 new Personal Support Workers - Next steps 2

The Department continues collaborate with Health Canada and provinces and territories to explore other opportunities to train Personal Support Workers.

Budget 2024 proposed a Sectoral Table on the Care Economy that will consult and provide recommendations to the federal government on concrete actions to better support the care economy, including personal support workers.

Budget 2024 also announced the Government's intention to launch consultations on the development of a National Caregiving Strategy.

Develop and implement a plan to modernize the EI system for the 21st Century

Develop and implement a plan to modernize the EI system for the 21st Century - Progress 1

Millions of Canadians rely on Canada's Employment Insurance (EI) program every year, including when they find themselves out of work, starting a family, taking time to care for a loved one, or need to get better themselves.

The Government has already taken important steps to improve the program including:

the extension to EI sickness benefits from 15 to 26 weeks for new claims as of December 18, 2022; and,
the announcement in the 2023 Fall Economic Statement of a new 15-week shareable EI adoption benefit, meeting a government commitment and making the program more inclusive of working parents.

While taking steps to build a more inclusive modernized EI, the Government has continued to provide supports for workers and employers in seasonal industries, making additional weeks of EI regular benefits available to seasonal claimants in 13 EI regions. These temporary measures will help to inform the longer-term improvements to the EI program for seasonal workers.

Develop and implement a plan to modernize the EI system for the 21st Century - Next steps 2

Work continues to explore options for improvements to the EI program. Informed by what was heard during 2 years of consultations, work is underway to build an EI program that is simpler, more responsive to the needs of workers and employers, and financially sustainable.

Budget 2024 proposed to extend previous changes to Employment Insurance-which provided up to 5 additional weeks of support (for a maximum of 45 weeks) for eligible seasonal workers in 13 targeted economic regions-until October 2026. The cost of this measure is estimated at $263.5 million over 4 years, starting in 2024-2025.

Implement a new EI benefit for self-employed Canadians

Implement a new EI benefit for self-employed Canadians - Progress 1

Informed by lessons learned from the pandemic and what was heard during the 2 years of EI consultations, work is underway to improve the EI program and ensure the program remains financially sustainable.

Implement a new EI benefit for self-employed Canadians - Next steps 2

The Government will continue to explore options for improvements to the EI program, which will take into consideration the realities of self-employed workers.

Implement a new EI benefit for adoptive parents

Implement a new EI benefit for adoptive parents - Progress 1

The 2023 Fall Economic Statement announced a new 15-week shareable EI adoption benefit, at an estimated cost of $48.1 million over 6 years, starting in 2023-24, and $12.6 million per year ongoing.

Amendments to the Employment Insurance Act and the Canada Labour Code were introduced on November 30, 2023, in the Fall Economic Statement Implementation Act, 2023 (Bill C-59), which is currently under consideration by Parliament.

Implement a new EI benefit for adoptive parents - Next steps 2

The Government will continue to work towards the implementation of the EI benefit for parents through adoption or surrogacy, including support for the legislative process.

The benefit is expected to provide approximately 1,700 Canadian families each year with additional time and flexibility as they carry out the responsibilities related to the placement of children or arrival of a newborn under their care and will make the program more inclusive for various types of Canadian families, including 2SLGBTQI+ parents and families.

Implement a new Career Insurance Benefit for long-tenured workers

Implement a new Career Insurance Benefit for long-tenured workers - Progress 1

Implement a new Career Insurance Benefit for long-tenured workers - Next steps 2

The Department will continue to explore options for improvements to the EI program, which will take into consideration the specific needs of long-tenured workers.

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes - Progress 1

The Government of Canada has recently introduced a number of measures to make student loan repayment more affordable, including:

Enhancement of the Repayment Assistance Plan (RAP) by increasing the zero-payment income threshold from $25,000 to $40,000 for a single person, with commensurate adjustments for larger family sizes; indexing the zero-payment thresholds to inflation annually; and lowering the cap on student loan repayments from 20% to 10% of gross family income. The thresholds have already been indexed once (currently $42,720) and will be indexed again effective August 1, 2024 (expected to increase to $44,388). RAP enhancement started in November 2023.
The elimination of the accrual of interest on Canada Student Loans as of April 1, 2024;
On August 1, 2022, expansion of eligibility for disability-related supports - including for borrowers in repayment - to include student loan borrowers with persistent or prolonged disabilities.

In fall 2023, the Government completed consultations with provinces and territories on the path forward to improve repayment supports.

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes - Next step 2

The Government is committed to ensuring that post-secondary education is affordable and student debt is manageable for more borrowers, particularly those early in their careers who are earning less income than other workers, as well as those starting families, which adds to their financial obligations.

The changes to the disability definition, the RAP enhancements, and the elimination of interest provide a phased approach to improving RAP, the impacts of which will not be evident for several years.

The Government is working to advance this commitment in a way that complements other recent program enhancements, including giving consideration to the timing and sequencing of implementation which would require regulatory amendments and program delivery changes, in partnership with provincial/territorial governments and service delivery partners.

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five - Progress 1

The Government of Canada has recently introduced a number of measures to make student loan repayment more affordable, including:

Enhancement of the Repayment Assistance Program (RAP) by increasing the zero-payment income threshold from $25,000 to $40,000 for a single person with commensurate adjustments for larger family sizes, indexing the zero-payment thresholds to inflation annually, and lowering the cap on student loan repayments from 20% to 10% of gross family income. The thresholds have already been indexed once (currently $42,720) and will be indexed again effective August 1, 2024 (expected to increase to $44,388). RAP enhancement started in November 2023.
The elimination of the accrual of interest on Canada Student Loans as of April 1, 2024;
On August 1, 2022, expansion of eligibility for disability-related supports - including for borrowers in repayment - to include student loan borrowers with persistent or prolonged disabilities.

In fall 2023, the Government completed consultations with provinces and territories on the path forward to improve repayment supports.

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five - Next steps 2

The August 2022 changes to the disability definition, the November 2022 RAP enhancements and the April 2023 elimination of interest provide a phased approach to changing RAP, the impacts of which will not be evident for several years. In particular, the 2022 RAP enhancements and the annual indexation of RAP thresholds for larger family sizes are expected to benefit families with young children.

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas - Progress 1

Budget 2022 included funding to implement the 50% increase, starting in 2023-24. After regulatory approval, this measure was implemented in November 2023.

Funding received through Budget 2023 will expand loan forgiveness to a greater number of rural communities, including all communities with populations of 30,000 or less. Pending regulatory approval, the measure will be implemented in 2024-2025.

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas - Next steps 2

The Government is committed to improving access to health care and social services in underserved rural and remote communities.

Budget 2024 announced the Government's intent to introduce amendments to the Canada Student Financial Assistance Act and the Canada Student Loans Act to permanently expand the reach of the Canada Student Loan Forgiveness Program to more health care and social services professionals working in rural and remote communities. This measure is estimated to cost $253.8 million over 4 years, starting in 2025-2026, plus $84.3 million per year ongoing.

The Canada Student Financial Assistance Program is consulting with its third-party service provider to determine the impact the proposed changes would have on existing systems and processes, and to identify potential solutions to administer an expanded benefit.

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills - Progress 1

The 2022 Fall Economic Statement proposed to provide $250 million to fund several measures focusing on skills for a net-zero economy, including funding for Sustainable Jobs Training Centre. The Centre will bring together workers, unions, employers, and training institutions across the country to examine the skills of the labour force today, forecast future skills requirements, and help 15,000 workers upgrade or gain new skills for jobs in a low-carbon economy.

The Sustainable Jobs Training Centre, now labelled as a Fund, will focus on training 15,000 workers in specific areas in high demand, starting with Low-Carbon Energy and Carbon Management, Green Buildings and Retrofits and Electric Vehicle Maintenance and Charging Infrastructure.

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills - Next steps 2

The Call for proposals for the Sustainable Jobs Training Fund in 2024 was launched on March 8, 2024, and will be open until May 15, 2024.

Projects are expected to start in winter 2024-2025.

Redesign and implement the Canada Training Benefit

Redesign and implement the Canada Training Benefit - Progress 1

The Government is working on an approach for the redesign and implementation of the Canada Training Benefit.

Engagement with key stakeholders was completed in August and September 2022, building on input from the 2019 consultations on the Canada Training Benefit.

Key stakeholders included employers and businesses, labour groups and unions, education and training providers, and not-for-profit organizations.

These consultations revealed broad support for offsetting training costs and general recognition that training is underfunded by governments and employers.

However, participants noted a number of concerns with the initial proposal, for example, that many working adults with training needs would likely not qualify for EI (e.g., part time workers, gig workers).

Bilateral engagement with provinces and territories launched in fall 2022 has concluded.

Redesign and implement the Canada Training Benefit - Next steps 2

Budget 2023 announced a Treasury Board-led cross-government effectiveness review of skills training and youth programming to determine whether improvements can be made to help more Canadians develop the skills and receive the work experience they need to have successful careers. Results of the review will inform future directions to redesign the Canada Training Benefit.

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities - Progress 1

ESDC is working with other departments, such as Innovation, Science and Economic Development Canada and Natural Resources Canada, to support the skills dimension of the sustainable battery industry.

Launched in March 2022, the Sectoral Workforce Solutions Program (SWSP) funded a number of projects which supported various elements of the battery supply chain (e.g., mining, electric vehicles). The projects came to end on March 31, 2024.

In addition, the 2022 Fall Economic Statement proposed to launch a Sustainable Jobs Training Centre (now called Fund) to help workers upgrade or gain new skills for jobs in a low-carbon economy.

The Fund will focus on specific areas in high demand, starting with Low-Carbon Energy and Carbon Management, Green Buildings and Retrofits and Electric Vehicle Maintenance and Charging Infrastructure.

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities - Next steps 2

The Call for Proposals for the Sustainable Jobs Training Fund in 2024 was launched on March 8, 2024, and will be open until May 15, 2024.

Projects are expected to start in winter 2024-2025.

ESDC will continue to support the government's efforts to develop Canada's battery industry from a skills perspective, including by funding projects on electric vehicles and charging infrastructure through the Sustainable Jobs Training Fund.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers - Progress 1

Budget 2022 announced $29.3 million over 3 years to introduce a Recognized Employer Model under the Temporary Foreign Worker Program, with the objective of reducing red tape for repeat employers in designated occupations with established labour shortages, who meet the highest standards for working and living conditions, worker protections and wages in high-demand fields.

To improve administrative efficiencies, the Recognized Employer Pilot (REP) is testing a more rigorous upfront application process for repeat employers hiring in 84 high-demand occupations. The Pilot also introduces longer Labour Market Impact Assessment (LMIA) validity periods of up to 36 months.

This enables recognized employers to better plan for their long-term labour needs over a 3-year period and reduces the number of LMIA applications needed to hire temporary foreign workers, without undermining worker protections.

Recognized employers will gain access to simplified LMIA applications to address future hiring needs.

Recognized employers will also benefit from a visual identifier on the Temporary Foreign Workers section of Job Bank that shows their recognized status.

The Recognized Employer Pilot was launched on August 8, 2023.

To ensure that employers were able to understand the Pilot's requirements, technical briefings with key program stakeholders took place in late summer and early fall 2024.

Phase 1 intake for primary agriculture employers commenced on September 12, 2023.

On November 22, 2023, the Department introduced a policy variation that allows employers who experienced COVID-19 shutdowns to draw from earlier calendar years to fulfill REP eligibility criteria.

Intake commenced on January 1, 2024, for all other designated occupations (including high-demand sectors, such as tourism, trucking and caregivers).

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers - Next steps 2

The Recognized Employer Pilot will be evaluated to assess employer uptake, temporary foreign workers' experiences, and administrative efficiencies, and to inform future programming.

To manage application intake volumes and ensure that sufficient resources are available to meet expected employer demands, intake for the REP will close on Sep 16, 2024.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition - Progress 1

Through the Foreign Credential Recognition Program, the Government is supporting the labour market integration of skilled newcomers.

Budget 2022 announced an additional $115 million over 5 years, with $30 million ongoing, to expand the Foreign Credential Recognition Program with an initial focus on supporting internationally educated health professionals (IEHPs) integrating into the Canadian labour market.

Since 2020, the Program has invested approximately $144 million in 36 projects focused on the labour market integration of IEHPs, including $89 million in 16 new projects announced in early 2024 to support systems improvements and provide Canadian work experience to IEHPs.

The Program has also issued over $20 million in foreign credential recognition loans as of January 2024, two-thirds of which were borrowers in the health sector.

Immigration, Refugees and Citizenship Canada (IRCC) continues to support our objectives, including advancing occupation specific Educational Credential Assessments and improving communications on foreign credential recognition to newcomers, so that internationally trained professionals can make informed decisions about immigrating to Canada.

Through Budget 2024, the Federal Government called on provinces and territories to expedite removal of their barriers to foreign credential recognition, and to urgently streamline their trades certification standards for interprovincial consistency.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition - Next steps 2

The Federal Government will also continue to engage with provinces, territories, and regulatory bodies to understand their needs and priorities and to share best practices, including those that support IEHPs.

Budget 2024 announced $50 million over 2 years, starting in 2024-2025, to support the Foreign Credential Recognition program. This funding will improve labour mobility and at least half will be used to streamline foreign credential recognition for workers in the construction sector. The remaining funding will support foreign credential recognition in the health sector.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers - Progress 1

As part of plans to create a new foreign labour stream for Agriculture and Fish Processing, the Government has initiated consultations with key stakeholders on the design and implementation of measures that include a new sector-based work permit.

The sector-based work permit will help to improve worker protections as it will allow temporary foreign workers to move to another employer (with an approved LMIA) without need to first obtain a new work permit.

The sector-based work permit is a key feature of the foreign labour stream for Agriculture and Fish Processing, which was announced in Budget 2022. This important change will make it more feasible for workers to assert their rights, refuse poor working conditions, leave abusive employers, and better participate in enforcement processes.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers - Next steps 2

The health and safety of temporary foreign workers is of the utmost importance to the Government of Canada. Like every worker in Canada, they deserve to be safe in their workplaces.

Since March 2024, the Government has been engaging with key partners and stakeholders on the design of certain stream features and timelines for implementation. The objective is to obtain detailed feedback on new stream requirements and features by fall 2024 / winter 2025.

This approach will ensure employers and workers have a gradual transition to new TFW Program requirements, limiting any disruption to workers and employers in these sectors.

Significant information technology systems changes and regulatory amendments to the Immigration and Refugee Protections Regulations will be required to implement the new sector-based work permit. The Government continues to advance this work, which first commenced in fall 2023, with the objective of issuing sector-based work permits to temporary foreign workers starting as early as 2027.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers - Progress 1

Budget 2022 announced $14.6 million in 2022-23, and $3 million in remaining amortization, to improve the quality of employer inspections and hold employers accountable for the treatment of workers.

Budget 2023 provided $48.2 million in funding over 2 years to improve the employer compliance regime under the Temporary Foreign Worker (TFW) Program, including more program inspectors and the maintenance of the worker protection tip line.

The Department has continued strengthening the employer compliance regime by supporting the implementation of the following activities to better ensure the health and safety of foreign workers:

Improved quality control and review functions, to better detect and correct substantive errors within the inspection process.
Focusing inspections on high-risk areas and increasing on-site presence.
A simplified online reporting form for temporary foreign workers and others was created in 2022 to further help report situations of potential abuse or mistreatment.
An escalation process of any observed health and safety risks to temporary foreign workers to ensure that appropriate stakeholders, authorities and jurisdictions are aware of the situation.

The Government has the authority to suspend the processing of Labour Marker Impact Assessment applications for employers suspected of non-compliance with program requirements, and that non-compliance would, in the event of a work permit being issued, result in a serious risk to the health or safety of a temporary foreign worker.

Outreach and engagement sessions with employers, workers and key stakeholders to increase the awareness of employer obligations under the Program and the rights of temporary foreign workers while they are in Canada.

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers - Next steps 2

The 4-year compliance regime rebuild work is well underway, with the last year of implementation currently planned for 2025-26.

Efforts continue to build on measures including:

The TFW Program Tip Line and Consulate Liaison Service continue to provide better intelligence that helps to ensure inspections focus on high-risk areas;
Working on enhancing governance to address emerging issues affecting temporary foreign workers, bringing together stakeholders from policy, program, and service delivery to key interdepartmental and provincial tables to discuss and coordinate cross-cutting and emerging issues affecting the TFW Program; and,
Continue to improve the quality of inspections, regionally and nationally, supported by a strong quality management plan and multi-year maturity model.

Future plans include the implementation of enhanced inspector training, post-training and quality monitoring processes and tools.

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline - Progress 1

This mandate commitment is shared with the Minister of Immigration, Refugees and Citizenship, as work permit renewals are under his authority. It specifically relates to the Global Talent Stream of the TFW Program.

In April 2022, the maximum work duration for the Global Talent Stream Labour Market Impact Assessment was increased to 3 years, which will mean that fewer work permit renewals will be needed over time, and this allows temporary foreign workers the time they need to pursue permanent residence pathways if they choose to apply.

ESDC consistently meets or exceeds the 10-business day service standard for processing Labour Market Impact Assessments (LMIAs) under the Global Talent Stream.

An Employer contact centre hotline for the Temporary Foreign Worker Program is also already in place. Ongoing departmental modernization initiatives help prioritize higher LMIA application volumes, while improving national consistency in service delivery and processing times. The LMIA online portal became the default application method in April 2023, and over 99% of applications are now submitted online.

Global Skills Strategy (GSS) processing times were significantly reduced in the last year. For example, GSS processing times went from 41 days as of March 11, 2023, to 13 days as of March 9, 2024. This was achieved through strategies allowing for faster and more efficient decision-making, including identifying and grouping applications more efficiently, creating an automated triage tool to help with processing, reducing the burden of unnecessary or duplicative paperwork, and implementing calculated risk management procedures to minimize the need for additional document.

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline - Next steps 2

ESDC will continue to support Immigration, Refugees and Citizenship Canada's ongoing efforts towards reducing processing times for work permit applications under the Global Talent Stream (within 2 weeks, for 80% of applications received), and enhancing client experience for temporary foreign workers in relation to work permit renewals.

Immigration, Refugees and Citizenship Canada will continue to work towards reaching the 14-day processing commitment for the Global Skills Strategy, under the Global Talent Stream, including to introduce new automated tools to help process work permit extension applications.

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages - Progress 1

The Department has been working with Agriculture and Agri-Food Canada on a path forward to address the Agricultural sector's chronic labour shortages.

The labour market context has improved in the sector - vacancy rates are down and wages have increased. The changes to the Temporary Foreign Worker program have also had a positive impact on addressing labour shortages in the agricultural sector particularly related to meeting demand for seasonal agricultural work.

The results of public consultations on the National Agricultural Labour Strategy can be found in the "What We Heard" report which was published in May 2023.

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages - Next steps 2

The Government will continue to advance this important work.

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition - Progress 1

The Government released an interim Sustainable Jobs Plan in February 2023 that outlines ten current and planned actions to ensure Canada's workers and communities succeed in the economy of the future, including the commitment to introduce sustainable jobs legislation.

On June 15, 2023, the Government of Canada introduced Bill C-50, the Canadian Sustainable Jobs Act, which aims to facilitate and promote the creation of sustainable jobs and support workers and communities in Canada as the world advances toward a net-zero future. The bill puts workers and communities at the centre of federal policy and decision-making by establishing a framework for accountability, a governance structure and engagement mechanisms to guide effective federal action. The Bill is currently under consideration by Parliament.

In addition, the Sustainable Jobs Training Fund call for proposals was launched on March 8, 2024. As an action area under the interim Sustainable Jobs Plan, this initiative will support tens of thousands of workers across the country with a range of training projects to upgrade or gain new skills for jobs in the low-carbon economy.

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition - Next steps 2

The Government will continue to advance sustainable jobs related initiatives. This includes advancing legislation and standing up key sustainable jobs mechanisms, notably the Sustainable Jobs Partnership Council and Secretariat, and publishing a Sustainable Jobs Action Plan in 2025, supporting comprehensive action to achieve a sustainable future.

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters - Progress 1

Discussions continue between Women and Gender Equality Canada and other departments on enhancing Gender-Based Analysis Plus.

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters - Next steps 2

Going forward, the Government will continue to support the integration of intersectional analysis in departmental policies and programs by providing training to employees, and partnering with Women and Gender Equality Canada and other departments on knowledge sharing.

Met Commitments

2.d. Question and answers on ESDC contracting

Question 1

ESDC reports (OPQ 2364) that since 2015, it has awarded over $835M in contracts for consulting services to the following companies:

(i) McKinsey & Company
(ii) Deloitte
(iii) PricewaterhouseCoopers
(iv) Accenture
(v) KPMG
(vi) Ernst and Young
(vii) GC Strategies
(viii) Coredal Systems Consulting Inc.
(ix) Dalian Enterprises Inc.
(x) Coradix Technology Consulting Ltd
(xi) Dalian and Coradix in joint venture

Are contracting amounts reasonable?

ESDC awarded contracts to these consulting companies for high-level advisory services, specialized technical skills, as well as business intelligence. ESDC sought guidance on decreasing implementation risks, achieving sustainable results and bringing rapid performance improvements to the department for transformation projects including the Benefits Delivery Modernization (BDM) programme, a multi-year, multi-phase modernization to our benefits delivery systems.

Additionally, the pandemic saw an increase in ESDC's need for consultant services to support the increased delivery of benefits and other services rendered directly to Canadian citizens during exceptional times. ESDC acquired the services of resources with application maintenance skills that were not part of the core skillset of internal employees. In some instances, supplier resources and skillsets were retained to transfer knowledge to employees, thereby increasing the benefits obtained from the contract by increasing the public service's skillset and maturing the department's capabilities in the realm of Information Management (IM) and Information Technology (IT) solutions. Furthermore, ESDC major initiatives (i.e., BDM) also leveraged vendors with extensive global experience in executing large-scale business transformations and engaged external firms for independent third-party assessments.

Question 2

What percentage of the Department's budget was spent on these companies and what has been the contracting trends since 2015?

Trend over past years:

Fiscal years 2015-16 to 2018-19 remained relatively stable in contract values for the suppliers listed in the question, with a slight increase of 13% between 2017-18 and 2018-19.
Fiscal Year 2019-20 had a 100% increase over the previous year, this can be attributed to an increase in awards geared towards the design phase of the BDM programme, with several contracts awarded to Deloitte and PricewaterhouseCoopers for support with programme and technical analysts, software architects, and project management.
Fiscal Year 2020-21 had a 192% increase over the previous year. Consideration should be given to the unpredictable effect of the pandemic on departmental contracting activities, which saw a marked increase in ESDC's need for external consultant services to support the delivery of programmes, benefits, and services to Canadians in the face of the rapidly changing public health landscape. 44% of the total value for 2020-21 consultant services are COVID-19 related contracts.
Fiscal Year 2021-22 had a 44% decrease over the previous year.
Fiscal Year 2022-23 had a 235% increase over the previous year, which can be attributed to an increase in awards geared towards the BDM Programme, which saw a major multi-year contract awarded to Deloitte to support ESDC through the modernization of Old Age Security (OAS) benefits delivery.

Percentage (%) of the Department's total budget

Table 16: Percentage (%) of the Department's total budget
Fiscal Year	Value of Contracts Awarded to Consulting Companies (McKinsey & Co., Deloitte, PricewaterhouseCoopers, Accenture, KPMG, Ernst & Young, GC Strategies, Coredal Systems Consulting Inc., Dalian Enterprises Inc, Coradix Technology Consulting Ltd, Dalian and Coradix in Joint Venture)	ESDC Authorities Available for Use (Operating and Statutory)	Percentage of Departmental Budget
2015-2016	$26,896,693.98	$3,073,684,687	0.88%
2016-2017	$25,782,483.90	$3,294,334,843	0.78%
2017-2018	$25,366,225.80	$3,551,344,895	0.71%
2018-2019	$28,711,947.25	$3,492,395,646	0.82%
2019-2020	$57,506,302.45	$3,637,240,451	1.58%
2020-2021	$167,696,239.98	$4,660,947,009	3.6%
2021-2022	$93,090,430.03	$5,342,967,694	1.74%
2022-2023	$311,801,882.25	$5,596,852,689	5.57%

Question 3

What is the rationale for hiring consultants?

Consultants provide a flexible and rapid deployment of resources with specialized skills and expertise to support ESDC's operational requirements and internal systems, specifically providing guidance for the department's transformation efforts, and to help ensure ESDC programs and services are delivered efficiently, effectively, and prudently. The contracts awarded to the aforementioned consulting companies (see question 1) provided resources with specialized skills and expertise to support ESDC operational requirements and internal systems, such as the Job Bank, Employment Insurance (EI), Old Age Security (OAS), Canada Student Loans and Grants, and 1-800-O-Canada.

Question 4

Does hiring consultants amount to using "replacement workers" instead of public servants?

ESDC retained the services of consultants where it was deemed that no employee was available, or that certain skillsets or specialized knowledge were lacking. Some contracts were awarded to supplement ESDC's in-house capacity to manage large projects for the department, specifically during the development and deployment of programmes related to social services and support required during the early stages of the pandemic, which saw an unprecedented and unpredictable increase in demand for services for Canadians. The department continues to ensure that contracts include a knowledge-transfer component or plans for sustained management of solutions to be less reliant on consultants as we move from the building and implementation stages to the management of solutions.

Question 5

What is the difference between contracts with companies that have global expertise and "staff augmentation" companies?

At times, ESDC engages with major multinational firms (Accenture, PwC, Deloitte, KPMG, etc.) to support large-scale transformations and implementations. These contracts provide ESDC with access to comprehensive skill sets essential for navigating the complexities of modernization projects across all phases. Leveraging the extensive expertise of these firms ensures that ESDC's initiatives are equipped with the necessary resources and capabilities to achieve success.

Additionally, ESDC collaborates with "staff augmentation" companies when consultants with specific skill sets or experiences are required to complement the capabilities of internal public servants. These contracts are typically awarded using Public Services and Procurement Canada's (PSPC) methods of supply for professional services, ensuring a streamlined and transparent procurement process.

By strategically leveraging the strengths of both large multinational firms and consulting companies with specialized skillsets, ESDC can effectively address diverse project requirements while optimizing resource allocation and fostering innovation.

Question 6

How does ESDC ensure integrity of its contracting process?

ESDC follows all applicable policies, directives, laws, and trade agreements, in all its procurement activities. Notably, ESDC, conducts procurements inline with the key principles found in Treasury Board's Directive on the Management of Procurement, the Government Contracts Regulations (GCRs), and the guidance provided in PSPC's Supply Manual. Furthermore:

Per the requirements outlined in the Guide to the Proactive Publication of Contracts, ESDC proactively discloses all contracts/amendments valued over $10,000.00, on a quarterly basis.
The Procurement Review Committee (PRC) at ESDC provides ongoing procurement oversight to ensure that ESDC's contracting activities are carried out in accordance with the applicable legislation, policies, and procedures, while considering national and departmental priorities. The PRC provides oversight of high-risk procurement activities for the department and provides a challenge function aimed at upholding the principles of fairness, openness, transparency, and sound contract management.
ESDC utilizes Public Services and Procurement Canada (PSPC) mandatory government-wide vehicles for its professional services contracts. PSPC is developing new processes for its methods of supply for professional services requirements for all GoC departments. ESDC is updating internal processes and working with PSPC to ensure conformity.

Question 7

Investigations by PSPC found that 3 subcontractors for professional services undertook contract work across 36 Government of Canada departments and agencies. These individuals fraudulently billed the Government of Canada by an estimated $5 million by billing multiple organizations for the same period under multiple separate contracts. Is ESDC one of those 36 Departments?

Yes. The contracts in question are:

Contract no. 2000126 with Eagle Professional Services;
Contract no. 2000160 (G9292-201781/001/ZM) with IPSS Cyber Solutions; and
Contract no. 2000065 (G9321-130001-010-ZM) with Veritaaq Technology House.

Will ESDC recover overpayments under these contracts?

Yes, the restitution process is centralized and led by PSPC on behalf of all affected departments. PSPC has the authority to seek restitution from suppliers.

Question 8

What does ESDC do to detect and prevent fraud?

ESDC performs integrity checks on suppliers and verifies the security clearance of resources, when applicable, and consults the Ineligible and suspended suppliers under the Ineligibility and Suspension Policy list maintained by PSPC prior to contract award. The department also relies on the Treasury Board's Directive on Delegation of Spending and Financial Authorities to ensure a scaffolded, risk-based approach by financial delegations in every step of the procurement process. Finally, ESDC's procurement operations are routinely audited and reviewed by the department's Internal Audit branch, which serves as an accountability measure as required in the Financial Administration Act.

Question 9

Can you confirm that you have had contracts with GC Strategies Inc. and if so:

What was the amount?

ESDC awarded three contracts to GC Strategies Inc. for a combined total of $3,132,343.05.

Will you be getting that money back?

ESDC did not find GC Strategies Inc. to be in violation of any contractual clauses and we have not contested any work delivered. As such there are no grounds to seek restitution. ESDC has no active contracts with GC Strategies Inc. Additionally, the PSPC Contract Security Program (CSP) has revoked the organization security clearance held by GC Strategies Inc. effective April 3, 2024. As a result, no further contracts will be awarded by or on behalf of ESDC to this supplier.

Did you get value for money?

The competitive procurement process enabled us to maximize value for money by leveraging vendor competition, which drove down costs while maintaining stringent quality standards and ensuring the suitability of the chosen vendor. The resources provided under each contract were retained for the duration of the contract and provided expertise that was otherwise not available through internal public servants at ESDC.

What did they do and why couldn't that have been done in house?

These contracts provided resources with specialized technical skills in the areas of Microsoft Project Server and Business Intelligence. These specialized resources were needed to support decision making within the organization by analysing, developing, testing, and deploying key IT solution modules for ESDC's Project Management Information Solutions (PMIS). These professional services were acquired to perform the work and transfer of knowledge to ESDC employees. The details for each contract are listed below:

Contract 1 signed December 2, 2015: The purpose of this contract was to support implementation of PMIS Phase 2.

Contract 2 signed July 11, 2017: The purpose of this contract was to support PMIS Phase 3.

Contract 3 signed April 1, 2022: The purpose of this contract was to continue support and further enhance PMIS to support the ESDC investment initiatives and improve the current functionalities of the PMIS product to align with departmental Project and Programme Management Maturity.

Details deposed to Parliament regarding GC Strategies Inc.

Statement: Employment and Social Development Canada (ESDC) has reviewed the information available in its financial system and found 3 contracts for GC Strategies Inc. since November 4, 2015.

Amount of GC Strategies Inc. contracts: $3,132,343.05

Due diligence practices and status of contracts: All three contracts were awarded following competitive procurement processes under a PSPC method of supply. One contract was awarded on December 2, 2015; another on July 11, 2017; and a third on April 1, 2022. All contracts have expired - ESDC has no active contracts with GC Strategies Inc.

3. Employment Insurance (EI) - Hot issues

3.a. Benefits Delivery Modernization

Issue

ESDC's Benefits Delivery Modernization (BDM) Programme is modernizing the delivery of benefits.

Background

The BDM Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP) benefits to Canadians.

OAS is the first benefit to onboard to the BDM Common Benefits Delivery platform. The first release was achieved in June 2023 with the full implementation on track for December 2024.

This next phases of the OAS migration, will see approximately 7.3 million new and existing OAS clients transitioned onto the new platform.

EI will be the second benefit to onboard onto BDM's new platform. Planning for the onboarding has begun with implementation beginning in 2025 with multiple releases planned between 2025 and 2028.

Key facts

OAS Release 1 went live on June 12, 2023, and enables 600,000 OAS Foreign Benefits clients to be served through the modernized system. The successful deployment of Release 1 demonstrated that we have a stable and secure solution for the delivery of benefits to Canadians.

The Planning Phase for EI on BDM began in 2023 and provided insights on how to optimize the onboarding through a phased and measured approach.

The Planning, Design, and Proof of Concept (PDPoC) phase is scheduled for completion in 2024. Successful completion of the PDPoC phase will create the foundation needed to support the iterative deployment of EI during the project's subsequent, Build and Implementation phase.

The EI program serves three distinct client groups: employees, fishers, and the self-employed. These cohorts enable BDM to explore a more iterative deployment approach that will be delivered over multiple releases across each of the three cohorts.

This iterative deployment approach will also allow BDM to begin with a small cohort and will provide the opportunity to learn how a transformed service can be delivered while simultaneously reducing the risk to the existing service delivery.

Key messages

The BDM Programme is the core initiative that will deliver on the Minister of Citizens' Services 2023 mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live."

At the heart of this mandate are the policies, programs, services and benefits that support our most vulnerable: the elderly and the unemployed. But all Canadians will, at some point or another, interact with Service Canada for services, and these services should be as accessible as possible.

Key drivers of change to modernize benefits delivery are:

Clients' needs and expectations are rapidly changing regarding how they interact with the government
Systems are aging and the skills needed to support those technologies are in short supply
Lack of flexibility to make changes in the current systems impacts policy agility
Employees do not have the modern tools needed to serve clients best
ESDC is mandated to help build a stronger and more inclusive Canada, help Canadians live productive and rewarding lives, and improve Canadians' quality of life

While the BDM programme is a very sizable investment, during the 10-year life of the programme, over $1.5 trillion in EI, OAS and CPP benefits will be paid out, and the current and projected costs are consistent with similar transformations undertaken in other jurisdictions.

BDM works in close collaboration with Public Services and Procurement Canada on all procurement and contract files. The Programme has robust documentation and structured Governance processes throughout every phase of procurement.

BDM has a vendor ecosystem comprised of external vendors who, where appropriate, are engaged in solution planning, design, and implementation, along with BDM public servants.

BDM has defined accountabilities at all levels as well as with partner departments, including Memoranda of Understanding, as well as the external consulting firms/vendors.

3.b. Employment Insurance (EI) modernization

Issue

When will the plan for Employment Insurance (EI) modernization be presented, why were the COVID-19 EI temporary measures terminated before the modernization plan was announced or put in place, and is the EI program nimble enough to provide support to Canadians should a recession come?

Background

In Budget 2021, the Government of Canada announced $5 million over two years to conduct targeted consultations on designing an EI program for the future.

Budget 2022 reaffirmed the Government's commitment to EI modernization and to continuing consultations on how to build an EI program that better meets the current and future needs of workers and employers.

In 2021 and 2022, comprehensive consultations on the EI program were co-led by the then Minister of Employment Workforce Development and Disability Inclusion (EWDDI) and the EI Commissioners for workers and employers. A phased approach was used for these consultations to support broad engagement with workers, employers, expert stakeholders and Canadians (Phase I: August 2021 to February 2022; Phase II: April 2022 to July 2022), including stakeholder roundtables, written submissions and an online survey.

The What We Heard reports from the first and second phase of the consultations were published online (Phase 1 report - April 2022; Phase II report - September 2022).

The 2021 Mandate Letter for the then Minister of EWDDI committed to bring forward and begin implementing a plan to modernize EI, taking into account input from consultations. This included a commitment to build a stronger and more inclusive EI program that covers all workers, including seasonal workers, new supports for the self-employed, adoptive parents, long-tenured workers and consideration of the realities of artists and cultural workers.

In support of the Minister's mandate commitment, Budget 2022 announced the implementation of the extension t o the duration of EI sickness benefits from 15 to 26 weeks in summer 2022. This change came into effect on December 18, 2022 for all new sickness benefit claims established on or after that date.

Budget 2023 extended the temporary legislated measure of up to five additional weeks of regular benefits for seasonal EI claimants until October 2024; ensured the Work-Sharing Program provides timely supports to employers; improved the recourse process for EI appeals; and continued investments in the Labour Market Transfer Agreements with provinces and territories.

In support of the Minister's mandate commitment, the 2023 Fall Economic Statement announced a new shareable 15-week EI benefit for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code. This measure will help build an EI program that is more inclusive of all families.

In addition, FES 2023 announced a new EI temporary measure providing up to four additional weeks of regular benefits for seasonal workers, on top of the up to five additional weeks available under the existing temporary legislated measure, to eligible seasonal claimants in the 13 targeted EI regions who establish an EI claim between September 10, 2023, and September 7, 2024.

Budget 2024 announced a further two-year extension to October 2026 of the temporary seasonal measure that provides up to an additional five weeks of regular benefits to eligible seasonal workers in 13 targeted EI regions. It also indicated that to make it easier for young people to start a career in the skilled trades, the government will continue to explore options to make apprenticeships more affordable.

Key facts

On Temporary EI Measures

According to administrative EI data from September 2021-September 2022, the number of claims that benefitted from the temporary EI Covid-19 measures that ended in September 2022 are detailed below:

About 150,000 new regular claims and 30,000 new special benefit claims were able to qualify as a result of the temporary 420-hour common entrance requirement;

Approximately 60,000 new regular claims were able to qualify as result of the temporary reasons for separation measure. Approximately 90,000 claims benefited from the temporary monies on separation measure.

The Canadian economy was recovering from the pandemic and slightly more EI regular claims were established during this one-year period than before the pandemic. Therefore, the number of impacted claims could be lower in a more normal economic context.

As Canada recovered from the pandemic, unemployment rates across the country declined and hit historical lows, which is good news for most workers.

Budget 2024 predicts that the unemployment rate will rise to a peak of 6.5 per cent in the fourth quarter of this year and average 6.3 per cent in 2024 (compared to, respectively, 6.5 per cent and 6.4 per cent in the 2023 Fall Economic Statement).

On EI Consultations

The EI Consultations that were completed in 2021 and 2022 included over 35 virtual Ministerial national and regional roundtables, co-led with the EI Commissioner for Workers and the EI Commissioner for Employers.

Consultations had active participation from over 200 stakeholders: employer and labour groups, community organizations, sector groups, self-employed and gig-worker associations, parent and family associations, and academics.

Over 1,900 individuals and organizations participated in the online survey.

Received over 160 written submissions.

Topics for the consultations included EI access and simplification, adequacy of benefits, supports for workers experiencing life events, workers in seasonal industries, supports for self-employed and gig workers, including artists and cultural workers, the Premium Reduction Program, and the financing of the EI program.

On EI support during a recession

The current EI program is built to respond to changing economic conditions ( the entrance requirements, benefit rate, and benefit duration all vary based on the regional unemployment rate (UR)).

EI can also serve as an economic stabilizer, providing income stability and helping to maintain a certain level of consumer spending activity.

There is also a suite of well-proven tools that are available within and outside of EI to support workers in case of recession, including proactive outreach to ensure individuals can quickly apply for and access their EI benefits, Work-Sharing, skills and training programs, etc.

As Canada recovered from the pandemic, unemployment rates across the country have declined and hit historical lows, which is good news for most workers.

However, for some seasonal workers in targeted regions, declining rates of unemployment may have negatively impacted their weeks of EI entitlement, which led the Government to announce a one-year temporary measure in the 2023 Fall Economic Statement to support seasonal claimants facing the likelihood of or a longer income gap duration before their return to seasonal work.

The projections in Budget 2024 are that the unemployment rate will rise from 6.1 per cent (as of April 2024) to 6.5 per cent in the fourth quarter of 2024, remaining historically low.

Key messages - EI Modernization

The Employment Insurance (EI) program is Canada's largest income support program and a critical component of Canadians' social safety net, supporting approximately 2 million Canadians each year, like when they find themselves out of work, starting a family, taking time to care for a loved one, or need to get better themselves.

Given cost-of-living and inflationary pressures, the government is taking a cautious approach to putting in place new EI measures that could increase EI premiums and make it harder for workers and employers to make ends meet.

The pandemic highlighted long-standing gaps with the program and the Government held comprehensive consultations on the EI program with workers, employers, expert stakeholders and Canadians in 2021 and 2022 to inform improvements. Feedback from these consultations was published in What We Heard reports.

We heard from stakeholders on how to make the program simpler, fairer, more accessible, more inclusive and more responsive, while remaining financially sustainable.

The Government is considering how it can respond to the differing views expressed while maintaining a program that is fiscally responsible in the current economic context.

It is important for the EI program to be responsive in all labour market circumstances, whether in high or low unemployment to effectively support workforce development and worker transitions in a changing economy.

Key recent steps taken to make the program more responsive

The Government has already taken important steps to modernize the program with the extension to EI sickness benefits from 15 weeks to 26 weeks for new claims as of December 18, 2022. This will provide additional weeks of income support to approximately 169,000 Canadians who need more time to recover from their illness, injury, or quarantine before being able to return to work.

As part of the way forward on EI, Budget 2023 announced continued investments in the program. This includes an extension to the financial supports for workers in seasonal industries, ensuring the Work-Sharing program provides timely supports to employers.

Building on these improvements, the Fall Economic Statement 2023 announced a new shareable 15-week EI benefit for parents through adoption or surrogacy, along with corresponding changes to leave provisions under the Canada Labour Code. These proposed EI legislative amendments were introduced in the Fall Economic Statement Implementation Act, 2023 (Bill C-59) which is in Parliament for review. Once this new EI benefit is in place, it would support approximately 1,700 parents each year with additional EI support to carry out responsibilities related to the placement or arrival of their child or children.

Seasonal workers

The Government recognizes that seasonal workers are an important part of Canada's local economies and many of them rely on EI for the support they need between work seasons. To ensure continued support for these workers:

Budget 2023 extended the existing temporary measure that provides up to an additional five weeks of regular benefits to eligible seasonal workers in 13 targeted EI regions (up to a maximum of 45 weeks) until October 2024. Budget 2024 proposes to further extend this measure for two years until October 2026.

In addition, the 2023 Fall Economic Statement announced a temporary one-year measure that provides up to four more weeks of EI regular benefits to eligible seasonal claimants and who live in the same 13 economic regions targeted by the existing legislative measure providing up to five additional weeks of benefits, for a total of up to nine additional weeks. These additional up to four weeks are available to eligible claims established between September 10, 2023, and September 7, 2024.

The Government will also continue work to improve the program, including for seasonal workers, that supports workforce development and labour market transitions, informed by the valuable input received from employer and labour stakeholders during consultations and through ongoing engagements.

Temporary EI Measures in response to COVID-19

Background

On September 24, 2020, a set of temporary changes to EI rules were implemented to facilitate the transition for workers from the Canada Emergency Response Benefit (CERB) to EI during the COVID-19 pandemic. These one-year measures came to an end on September 25, 2021.

On September 26, 2021, a suite of new EI temporary measures came into force for a one-year period to support workers during the pandemic recovery period when jobs were sporadic and scarce. These measures were announced as part of Budget 2021 and included:

A common entrance requirement of 420 hours for regular and special benefits (with corresponding changes to fishing and special benefits for self-employed), and

Simplified treatment of reasons for separation and monies paid on separation.

All of the EI temporary measures in response to COVID-19 ended on September 24, 2022, after which the program has returned to regular EI rules.

Key messages

On September 24, 2022, the EI temporary measures announced in Budget 2021 ended.

These measures were put in place for a one-year period to address the challenges faced by many workers during the economic recovery from the COVID-19 pandemic when work was scarce or sporadic. As of September 25, 2022, the EI program returned to the following regular rules on eligibility for benefits:

Regular benefits: Between 420 and 700 hours of insurable employment in the qualifying period, depending on the regional unemployment rate.

Special benefits: 600 hours of insurable employment in the qualifying period.

Fishing benefits: $2,500 to $4,200 in earnings from self-employment in fishing based on the regional unemployment rate.

Self-employed special benefits: The earnings threshold for self-employed workers registered for special benefit coverage is $8,255 in self-employment earnings in the 2022 taxation year.

As Canada recovers from the pandemic, unemployment rates across the country have declined and hit historical lows, which is good news for most workers.

Work is underway to improve the program informed by lessons learnt from the pandemic, including from these EI temporary measures, and what we heard during the two years of EI consultations and to ensure the program remains financially sustainable.

3.c. Employment Insurance (EI) claims

Issue

What are the current service standards for Employment Insurance (EI) claims?

Key facts

In 2023-24, as of March 31, 2024, 86.4% of EI payments, or notifications of non-payment, were made within 28 days for the whole of Canada.
In 2023-24, as of March 31, 2024, the average number of days it took for a client to receive their first EI benefit payment was 18 days, compared to an average of 24 days in 2022-23.
In 2023-24, as of October 31, 2023, 1,647,190 EI Initial and Renewal applications were received and 1,662,919 were processed.
For 2022-23, the EI Call Centre answered approximately 6.2 million calls. Of these calls, 40% were answered by an agent within 10 minutes and the average wait time was 18 minutes.
As of November 4, 2023, the EI Call Centre answered over 3.5 million calls. Of these calls, approximately 86% were answered by an agent within 10 minutes and the average wait time was 3.6 minutes.
The EI Call Centre has improved its accessibility to be near 100% for callers accessing the queue to speak to an agent, compared to 50% in 2020-21.

Response

The EI Program, including its Call Centres, remains at the forefront of the Government of Canada's service to Canadians. On November 3, 2022, the Fall Economic Statement announced $1.02B for Service Canada to process EI and Old Age Security claims faster, while reducing the EI claim inventory. In addition, $574M was announced to reduce the EI and Pensions Call Centre wait times.
As Canada moves into a post-pandemic era, yearly peak periods of demand will continue to affect some Canadians as they wait longer for their claims to be processed and for their calls to the EI Call Centre to be answered.
In 2022-23, Service Canada Delivered $21.9 billion in direct EI benefits to ensure the economic and social well-being of Canadians.

If Pressed (Quebec Region)

In 2023-24, as of March 31, 2024, 82.8% of EI payments, or notifications of non-payment, in the Quebec region were made within 28 days.
In 2023-24, as of March 31, 2024, the average number of days it took for a client to receive their first EI benefit payment in Quebec was 19 days, compared to an average of 18 days in Canada.
The results in the Quebec region are lower than the national results because the EI network has focused on reducing the volume and age of claims specifically in this region. As more claims were processed past the 28-day service standard, Speed of Pay results were impacted and below target.

These efforts are having a positive impact on clients from the QC region. As of November 25, 2023, the volume of Initial and Renewal pending claims is 22% lower in comparison to the same week last year, and the claims that are 28 days or older is 75% lower.
Service standard results for the Quebec region are expected to significantly improve moving forward.
In 2023-24, as of October 31, 2023, 407,571 EI Initial and Renewal applications were received in Quebec and 423,364 were processed.

Background

Service Canada's key client service performance indicator for timeliness of EI claims processing is Speed of Payment (SOP). The target is to issue a payment, or notification of non-payment, to claimants within 28 days of filing their application for benefits, 80% of the time.

Service Canada makes every effort to meet EI's service standard. However, there are situations that prevent the Department from meeting this objective, particularly during the annual summer and winter peak periods, or because of missing documents or incorrect information.

3.d. New Employment Insurance (EI) Benefit for parents through adoption or surrogacy

Issue

The Fall Economic Statement announced on November 21, 2023, the introduction of a new, 15-week shareable benefit in the Employment Insurance (EI) program for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code to ensure job-protected leave for employees in the federally regulated private sector. The legislative amendments were introduced in the Fall Economic Statement Implementation Act, 2023, which is undergoing the Parliamentary process.

Background

The new benefit would fulfill the Government of Canada's commitment to "introduce a new 15-week benefit for adoptive parents," as outlined in the 2021 mandate letter to the then Minister of Employment, Workforce Development and Disability Inclusion.

It would apply to the same types of placements for the purposes of adoption already covered by parental benefits, such as those under the adoption law in a province or territory, Indigenous customary adoptions under an applicable Indigenous law in the province or territory in which the person resides, and placements under a foster-to-adoption program.

Parents through adoption or surrogacy would be able to combine the new benefit with parental benefits, which would provide access to the same total number of weeks of EI income support as birth parents, that is, 15 weeks of maternity or adoption benefits, combined with parental benefits (up to 40 shareable weeks of standard parental benefits at 55% replacement rate or up to 69 shareable weeks under the extended parental option at 33% replacement rate).

A surrogate can receive maternity benefits because they experienced pregnancy or childbirth, but not parental benefits.

Once this benefit is in place, it would also bring EI more in line with benefits offered to parents in Quebec through the Quebec Parental Insurance Plan (QPIP). Parents through birth, adoption or surrogacy would have access to the same number of weeks of benefits available under their regime (EI or QPIP).

The new EI benefit for parents through adoption or surrogacy would focus on the responsibilities carried out by parents related to the placement of a child(ren) for the purpose of adoption or, in situations such as surrogacy, related to the arrival of a new-born child(ren) under their care.

As such, parents could receive the benefit within a period that would begin the earlier of five weeks prior to the week of the expected placement of the child(ren) or arrival of the new-born child(ren), or the week in which the actual placement or arrival occurs. Benefits would be payable up to 17 weeks after the week of the actual placement or arrival. This period would provide flexibility to parents to claim the benefit in a way that best suits their needs.

Associated amendments to the Canada Labour Code would provide employees in the federally regulated private sector with up to 16 weeks of unpaid job-protected leave. The leave duration provides one additional week of job-protected leave to allow EI claimants to serve the one-week waiting period prior to receiving their benefits.

The federally regulated private sector includes about 990,000 employees (or 6% of all Canadian employees) working for 19,150 employers in industries such as banking, telecommunications, broadcasting, and inter-provincial and international transportation (including air, rail, maritime, and trucking), as well as federal Crown corporations. Part III does not apply to the federal public service.

Private Member's Bill C-318, introduced on March 8, 2023, by MP Rosemarie Falk (Battleford-Lloydminster, Conservative Party of Canada), aims to introduce a similar benefit that targets a similar population group with the same benefit length and qualifying criteria as the new benefit. However, the proposed benefit under Bill C-318 differs in policy intent, as it focuses on attachment of the child (similar to the parental benefit) while the government proposal focuses on the responsibilities related to the placement or arrival of the child. It also differs in implementation timelines, as C-318 would be implemented on royal assent which would be challenging while government proposal would be by Order approved by Governor in Council.

Bill C-318 was studied by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities in January 2024. MP Leah Gazan (Winnipeg Centre, NDP) successfully brought forward amendments to explicitly recognize child placements aligned with Indigenous customs and traditions. The amendments were ruled inadmissible by the Speaker of the House given their financial implications. The bill is expected to die on the order paper due to lack of royal recommendation after its second and final hour of debate at third reading scheduled for May 27, 2024, and not proceed to a vote.

Key facts

The 2023 Fall Economic Statement announced the introduction of a new 15‑week shareable EI adoption benefit, at an estimated cost of $48.1 million over six years and $12.6 million per year ongoing from the EI Operating Account.

This benefit is expected to support approximately 1,700 Canadian families each year, including 2SLGBTQI+ parents, providing additional EI support to those who become parents through adoption and surrogacy and need to step away from work as they finalize the placement of the child(ren).

Providing adoptive parents with more time and flexibility to spend with their child in the critical period surrounding the placement for adoption can lead to more successful family formation, reduce anxiety for the parents and child, who often experienced traumatic events, and establish trust. This would indirectly help the child(ren) adapt to a new home, school, routines and access services.

Key messages

On November 21, 2023, the Minister of Finance announced that a new, 15-week shareable benefit for parents through adoption or surrogacy would be introduced in the EI program in her Fall Economic Statement.

The new benefit would support approximately 1,700 parents through adoption or surrogacy each year with additional EI benefits to carry out their responsibilities related to the placement or arrival of the child or children and will make the program more inclusive for various types of Canadian families, including 2SLGBTQI+ parents and families.

Parents could combine the new benefit with the existing EI parental benefit, making the total number of weeks of income support the same as that of birth parents who can combine maternity and parental benefits.

3.e. Employment Insurance (EI) Premiums

Issue

What is the Government doing to ensure that Employment Insurance (EI) premium rates remain stable and predictable for workers and employers? Will the Government credit the EI Operating Account (EIOA) for costs of EI temporary measures during the pandemic?

Background

The EI program is financed by premium contributions from employees engaged in insurable employment in Canada and their employers. Employers pay 1.4 times this rate and Quebec residents receive a premium reduction to account for the Quebec Parental Insurance Plan (QPIP) replacing EI maternity and parental benefits.

As legislated under EI Act, the EI premium rate setting process is carried out by the Canada Employment Insurance Commission (the Commission), a tripartite organization representing business, labour and the Government of Canada.

Since 2017, the Commission has set the EI premium rate according to a seven-year forecast break-even rate, determined by the EI Senior Actuary. This mechanism, set out in the Act, ensures that EI premiums collected are equal to the total amounts charged to that account at the end of a seven-year period.

There is also a legislated five-cent limit on annual changes to the EI premium rate. This, along with the 7-year break-even period, ensures affordability for premium payers while offering ongoing predictability and stability.

Given the economic impact of the COVID-19 pandemic, the Government used its authority under the EI Act to freeze the EI premium rate for 2021 and 2022 at the 2020 level ($1.58). The 2023 EI premium rate was set at $1.63, thereby ending the two-year freeze on premium rate increases.

In the 2024 Actuarial Report on the EI Premium Rate, released in August 2023, the EI Senior Actuary forecasted the seven-year break-even rate at $1.66 per $100 of insurable earnings.

On September 14, 2023, the Commission set the 2024 EI premium rate at $1.66 per $100 of insurable earnings. This represents a three-cent increase to the premium rate (from $1.63 in 2023 to $1.66 in 2024). The employer rate is $2.32, or 1.4 times the employee rate.

This 2024 EI premium rate of $1.66 is expected to pay down the costs of the current cumulative deficit in the EI Operating Account by 2030 (7-year break-even period between 2024 to 2030).

While the premium rate for 2025 will be determined by the EI Actuarial Report that will be released in August 2024, the latest public figures from Budget 2024 projected the EI break-even premium rate for 2025 at $1.62 per $100 of insurable earnings. If premiums were held at this rate, the EIOA would be brought to near cumulative balance by 2031. This is four cents lower than the forecast break-even rate of $1.66 per $100 of insurable earnings calculated by the EI Senior Actuary in the 2024 EI Actuarial Report.

This is also 1-cent lower than the projected $1.63 from FES 2023. Budget 2024 explains that year-to-date premium revenues in 2023-24 have been higher than expected due to stronger labour market and wage projections. This is expected to reduce the cumulative deficit in the EI Operating Account by about $400M compared to FES 2023.

The expected 4-cent decrease in 2025 is reasonable given a lower cumulative deficit, higher expected revenue growth, and the seven-year break-even period being pushed out another year (to 2031), all putting downward pressure on the break-even rate.

The program and administrative costs of the EI Emergency Response Benefit (EI-ERB), which totalled $26.8 billion, were credited to the EI Operating Account (EIOA) from the Consolidated Revenue Fund (CRF). This means that all CERB and EI-ERB costs were ultimately borne by the CRF rather than the EIOA.

During the pandemic, the Government also introduced a suite of temporary measures to facilitate access to the program. The costs stemming from the COVID-19 temporary measures were estimated at $23.2 billion. No further credit to the EIOA has been provided and as such, deficits accumulated due to these measures contribute to the existing cumulative deficit, projected to be $18.5 billion as of December 31, 2024.

Key facts

While the 2024 EI premium rate represents an increase of three cents from the 2023 rate, the 2024 EI premium rate remains at a near record historical low. It is 7 cents lower than it was between 2008 and 2010 and 22 cents lower than the 2015 EI premium rate of $1.88 per $100 of insurable earnings, having reached its lowest levels ($1.58) in 2020, 2021, and 2022.

With the three-cent increase in 2024, workers earning at or above the maximum insurable earnings threshold are paying $46.67 more in premiums than they did in 2023, while employers are paying $65.34 more for each of their employees.

Budget 2024 projected a cumulative deficit of $18.1 billion in the EIOA by the end of 2024, $0.7 billion lower than what the EI Senior Actuary forecasted.

None of the current projections for EI premiums and the EIOA cumulative deficit account for costs (expenditures and revenues) of any future measures that may be implemented as part of modernizing the program or in response to emerging program needs, such as a possible economic downturn.

By and large, future improvements to the access and adequacy of the program will likely put upward pressure on premium rates. This could be mitigated by other measures to support the financial sustainability of the EIOA.

Key messages

The Canada Employment Insurance Commission sets the annual EI premium rate according to a seven-year forecast break-even rate, determined by the EI Senior Actuary and annual adjustments to the premium are limited to five cents. Together this EI financing mechanism ensures affordability for premium payers while offering ongoing predictability and stability.

This 2024 EI premium rate remains at a near-record historical low (22 cents below high of $1.88 in 2016) and is based on forecasts and estimates prepared by the EI Senior Actuary.

The Government continues to assess what was heard during consultations held in 2021 and 2022; however, there is not always consensus on how EI reforms could best meet the needs of both workers and employers. Stakeholders agreed that EI changes should not put undue financial pressure on workers and small businesses, many of whom are already struggling to make ends meet in the current context of persistent inflation and the rising cost of living. It is important for the Government to consider improvements to EI in a manner that is fiscally responsible and keeps EI premium rates low and stable.

The Government remains committed to ensuring that the EI program is accessible, adequate, and affordable for employees and employers while remaining financially sustainable in the long-term.

If a question is raised on the difference between the projections in the Chief Actuary's Report and the Budget:

The 2024 Actuarial Report on the EI Premium Rate, released in August 2023 forecasted the seven-year break-even rate at $1.66 per $100 of insurable earnings.

The Budget 2024, released in April 2024, projected the 2025 break-even rate at $1.62. This updated projection was based on the newest available information on the economic and labour market projections available at the time.

The actual 2025 premium rate will be set by the EI Commission in September 2024 based on the EI Actuarial Report that will be released in August 2024.

3.f. New temporary measure for seasonal workers

Issue

The 2023 Fall Economic Statement announced a new, temporary one-year measure that provides up to four more weeks of Employment Insurance (EI) regular benefits, on top of the up to five additional weeks available under the existing temporary legislated measure, to eligible seasonal claimants in 13 targeted EI regions who establish an EI claim between September 10, 2023, and September 7, 2024. This measure, along with the legislated measure, provides a total of up to nine additional weeks of regular benefits automatically to eligible claimants to help mitigate the increased risk for these workers of an income gap between work seasons due to low unemployment rates combined with shorter than usual work seasons.

Background

Unusual labour market conditions that led to shorter work seasons for some workers in seasonal industries and the decline of unemployment rates in some EI regions in the summer and fall of 2023 compared to the previous year, caused changes in the maximum EI benefit duration for some of the seasonal workers in the 13 regions targeted by the existing temporary legislated measure. When claimants receive fewer weeks of income support during the off-season, they may be at greater risk of an income gap before their return to work.

Since 2018, a temporary EI measure has been in place (and subsequently extended via legislation) to provide up to five additional weeks of EI regular benefits (up to a maximum of 45 weeks of entitlement) to eligible seasonal claimants in 13 targeted EI regions. Budget 2024 extended these temporary rules for two years until October 2026; the cost of this support is estimated at $263.5 million over four years, starting in 2024-25 (see list of 13 regions below).

The Government has made successive commitments regarding a long-term approach to support seasonal workers. This includes considering a long-term approach that best targets the needs of seasonal workers in Budget 2022 and building a stronger and more inclusive EI system that "covers all workers, including workers in seasonal employment" in the December 2021 mandate letter to the then Minister of Employment, Workforce Development and Disability Inclusion.

Key facts

Many seasonal claimants rely on the EI program to provide income support through recurring periods of unemployment. In 2021/22, seasonal claims made up 342,800 of the 1,457,750 claims established for EI regular benefits. Every year, approximately 10% of seasonal claimants face an income gap between the end of their EI benefits and the start of their next work season.

In some areas, the steep decline in unemployment rates and quick changes in labour market conditions in summer and fall 2023, meant some EI claimants in seasonal industries were entitled to fewer weeks of regular benefits than in previous years and are at greater risk of facing an income gap. The greatest impacts of the decline in the unemployment rates in these regions were expected to be felt on claims established from September to December as the majority of all seasonal claims in these regions are established during that period each year (for example, 59% in 2019).

On November 21, 2023, the Fall Economic Statement announced up to four additional weeks of regular benefits for eligible EI seasonal claimants in the same 13 regions targeted by the existing legislated temporary measure who establish an EI claim between September 10, 2023, and September 7, 2024. These weeks are automatically applied to eligible claims by Service Canada, with no need for further action by claimant that meets EI requirements (for up to a maximum of 9 additional weeks).

The temporary one-year measure is expected to benefit around 42,000 of the 62,000 EI seasonal claimants who are at risk of experiencing a greater income gap this year due to atypical changes in labour market conditions in these regions.

It is estimated that seasonal claimants will receive, on average, 3.3 additional weeks of benefits under the new temporary measure. As of April 14, 2024, a total of 2,688 seasonal claimants received at least one additional week of benefits under the measure (for a total value of approximately $2.8M).

Key messages

Over the last year, the unemployment rate has hit historic lows in some regions. While this is good news for most people, the increase in available jobs is not always evenly distributed across industries and regions.

Seasonal workers are an important part of Canada's local economies and many of them rely on Employment Insurance for the support they need between work seasons and to avoid an income gap until the return to seasonal employment.

This is why Budget 2024 extended the existing temporary legislated measure to support seasonal workers until October 2026.

This extension will help mitigate the risk for these Canadians as they continue to contend with affordability challenges, elevated costs for essentials such as groceries and housing and sustained economic uncertainty caused by climate change and other emerging factors. A two-year extension of the temporary measure will provide additional stability and predictability for workers in seasonal employment who face re-occurring periods of unemployment, increasing risk of income gap in the off-season.

Due to sudden changes in regional unemployment rates and labour market conditions in summer and fall 2023, some seasonal workers may have qualified for fewer weeks of benefits than usual, resulting in a greater risk of an income gap.

In recognition of this, the Government put in place a one-year measure to provide additional temporary support for these workers. This measure provides up to four additional weeks of Employment Insurance regular benefits to eligible seasonal claimants in the 13 targeted regions, on top of the up to five additional weeks already available, reducing the risk of income gap.

Additional weeks are added automatically to eligible seasonal claims, no additional action is required by the claimant. The maximum number of weeks for regular benefit remains 45 weeks.

The Government continues to monitor the evolving labour market conditions and the impact of this measure as part of the ongoing work on EI modernization.

Footnote: List of 13 regions targeted by the seasonal measures extended by Budget 2024 and announced in Fall Economic Statement 2023:

Newfoundland and Labrador (excludes St. John's)
Eastern Nova Scotia
Western Nova Scotia
Prince Edward Island (excludes Charlottetown)
Charlottetown
Madawaska-Charlotte
Restigouche-Albert
Gaspésie-Îles-de-la-Madeleine
Lower Saint Lawrence and North Shore
Central Québec
Chicoutimi-Jonquière
North Western Québec
Yukon (excludes Whitehorse)

3.g. Employment Insurance (EI) board of appeal

Issue

What is the government doing to implement the Employment Insurance (EI) Board of Appeal?

Key facts

In Budget 2023, the Government proposed to introduce amendments to the Department of Employment and Social Development Act (DESDA) and consequential amendments to other Acts to establish a new independent tripartite Board of Appeal.
Bill C-47, the Budget Implementation Act, received Royal Assent on June 22, 2023, and enabled the creation of the EI Board of Appeal.
This allows the Department to complete readiness and implementation activities to fulfill the Government's commitment to replace the Employment Insurance Section of the Social Security Tribunal (SST) General Division with the EI Board of Appeal for first-level EI appeals.

Response

The Government is committed to reforming the appeal process by making it more responsive to the needs of Canadians.
Modernizing the EI program is a serious undertaking that requires careful consideration. The intent is to build an EI program that is simpler, responsive to all labour market conditions, and financially sustainable.
Until the EI Board of Appeal is operational, the Social Security Tribunal will continue to hear first level EI appeals. To ensure seamless operations following the launch of the EI Board of Appeal, there will be a transition period during which the new Board of Appeal and Social Security Tribunal will run in parallel.
The Department continues to advance activities for the implementation of the EI Board of Appeal.

Background

In August 2019, the Government announced significant changes to the Employment Insurance (EI) and Income Security (IS) recourse processes. These changes included client-centric improvements within the Social Security Tribunal (SST) and a return to a locally based tripartite decision-making model for first-level EI appeals (called EI Board of Appeal) outside of the SST.

Over summer 2022, consultations were held to review issues previously raised by stakeholders and parliamentarians, to examine possible solutions and to identify any remaining concerns relating to the proposed legislation. In parallel, consultation in the form of an online survey, open to the public, was also conducted to review certain aspects of the EI appeal process.

In Budget 2023, following consultations with Canadians and stakeholders, the Government proposed to introduce amendments to the DESDA (and consequential amendments to other Acts) to establish a new independent tripartite Board of Appeal. The Budget Implementation Act, which received Royal Assent on June 22, 2023, establishes the Board of Appeal and the legislation stipulates that the tribunal will begin to receive EI appeals at a date to be set by Order in Council. On that date, both the Board of Appeal and the SST - General Division, will operate in parallel until a date set by a second Order in Council dissolves the EI Section of the SST - General Division.

As a tripartite organization, the new EI Board of Appeal will represent the interests of government, workers and employers, helping put first-level EI appeal decisions back into the hands of those who pay into the EI system. The EI Board of Appeal will hear first level EI appeals. Until the EI Board of Appeal is operational, the SST will continue to hear first level EI appeals. To ensure seamless operations following the launch of the EI Board of Appeal, there will be a transition period during which the new Board of Appeal and the SST will run in parallel.

3.h. COVID benefit recovery and amnesty

Issue

What is the Government doing to help low-income Canadians who have to repay COVID emergency benefits they received, and why is there no amnesty for low-income debtors?

Background

The Government delivered the Canada Emergency Response Benefit (CERB) and Employment Insurance Emergency Response Benefit (EI-ERB) through a simplified attestation-based approach, which was designed to verify recipients' eligibility through strong post-payment integrity measures.

Although it was understood that an attestation-based approach created the potential for some Canadians to receive COVID-19 benefits for which they were ineligible, this approach was taken to ensure that income support went to vulnerable Canadians and residents as quickly as possible.

Under this approach, the Canada Revenue Agency (CRA) is responsible for integrity measures for the CERB, while Employment and Social Development Canada (ESDC) oversees the integrity measures for the EI-ERB.

As part of their integrity work, ESDC and the CRA have assessed all COVID-19 benefit program applications against the eligibility criteria and are applying a risk-based approach to post payment verifications that focuses on the highest risk files and the greatest dollar value at risk. The approach to post-payment verifications is intended to balance the need for program integrity, financial stewardship and compassion for Canadians facing financial hardship due to the COVID-19 pandemic.

Under the Financial Administration Act, the CRA and ESDC have an obligation to take timely and cost-effective collection actions to pursue amounts owed to the Government, including debts resulting from CERB and EI-ERB overpayments.

With regard to an amnesty, establishing a specific income threshold as a qualifier for broad-based debt forgiveness would ultimately be arbitrary in application as there would be individuals who do not meet the income threshold but continue to be in a vulnerable situation.

The flexible payment arrangements currently in place represent a person-centred approach to repayment and respond to individual's financial circumstances.

Key facts

The Government has clearly communicated its intent to recover ineligible payments via post-verification work in order to maintain the integrity of the benefits.

It has committed to providing an empathetic, people-first approach to all Canadians, and to work with individuals who need to repay benefits to help them find the payment arrangement best suited to their situation.

Under the current flexible repayment approach, these individuals would have their cases reviewed holistically, reducing their vulnerability.

Those who are experiencing financial hardship will be assessed considering the client's ability to pay based on the debtor's individual financial situation. In cases of hardship, debts may be deferred or written off. In addition, penalties or interest are not charged on emergency benefit overpayments.

This approach is more responsive to people's unique financial situations than an amnesty would be. An amnesty would rely on arbitrary eligibility criteria that may not reflect everyone's financial circumstances and could risk excluding some claimants.

Key messages

The delivery model for the CERB program based on attestations was chosen deliberately to maximize speed of delivery under urgent circumstances with the consequence being that some individuals received benefits in error or are in an overpayment situation.

Preventing and recovering overpayments is critical to maintaining the public's trust in the Government and contributes to long-term sustainability of its programs.

3.i. Senate Bill S-244 EI council

Issue

Bill S-244 would amend the Department of Employment and Social Development Act (DESDA) and the Employment Insurance (EI) Act to create a new EI Council that would provide advice and make recommendations to the Canadian Employment Insurance Commission (CEIC). The creation of the EI Council would formalize the consultative mandate of the CEIC and would also increase social dialogue on EI and labour market issues.

Background

Currently, the longstanding government commitment to tripartite engagement is enshrined in the EI program through the CEIC which includes representatives of the government, workers and employers, and plays a key role in overseeing the EI program. Bilateral stakeholder engagement is led by the EI Commissioner for Workers and the EI Commissioner for Employers with their respective constituencies.

The Bill has received broad support in the Senate. It is also supported by both EI Commissioners and EI stakeholders. During the EI consultations in 2021 and 2022, stakeholders suggested enhancing the tripartite governance of EI by establishing regular meetings.

Bill S-244 is currently at Third Reading stage in the Senate, following which it will be referred to the House of Commons. A government position will be required once the Bill reaches Second Reading in the House of Commons.

A key consideration is that Bill S-244 as currently drafted could encroach upon Ministerial powers, duties, and functions for the EI program and those of the CEIC for EI administration. Amendments could be considered that would ensure the EI Council's mandate is clearly articulated and limited in legislation.

Key Facts

Bill S-244 would:

Create an EI Council composed of a minimum of six employer and labour groups each, as members and non-voting observing members, that could also be called upon to provide their perspectives.

Formalize CEIC's stakeholder engagement mandate by creating a statutory requirement and structure around formal engagement and dialogue with worker and employer stakeholders.

Provide the ability for the Council to prepare reports relating to the work of the CEIC that could be presented for tabling in Parliament.

Key Messages

The Government heard through the EI consultations, and then more recently through the Senate Committee study of Bill S-244, that there is strong stakeholder interest in ensuring employer and labour groups have a greater voice in the EI program.

We are committed to strong collaboration with labour market partners, in the context of the EI program, consultations of a tripartite nature. It goes without saying that workers, employers, and the Government all have an important role to play in the areas of labour market planning, employment insurance, workforce development, and sectoral issues.

The issues of social dialogue and labour market partnerships will be an important part of the discussions at the upcoming 5th Jobs and Skills Forum organized by the EI Commissioners in June.

Additionally, I am planning to convene a Workforce Summit in Fall 2024. This event will bring together governments, employers, unions and public, private, Indigenous and not-for-profit organizations to facilitate discussion on changing labour market dynamics, and opportunities for collaboration.

4. Temporary Foreign Worker Program - Hot issues

4.a. Temporary Foreign Worker Program (TFWP)

Issue

This note provides general information on the Temporary Foreign Worker (TFW) Program, including its overall purpose and design.

Background

The TFW Program enables employers to fill labour and skills shortages on a temporary basis when Canadians and permanent residents are not available, while protecting foreign workers while in Canada. The Program is particularly important in seasonal work and is a key source of labour for Canada's agricultural sector. Other sectors that rely on the Program include meat and fish processing, tourism, trucking, construction, digital media and technology firms, among others.

Along with the International Mobility Program (IMP), which is administered by IRCC, the TFW Program is one of Canada's two temporary work entry programs. Unlike the IMP, the TFW Program requires employers to undertake a Labour Market Impact Assessment (LMIA) to demonstrate that there is a genuine labour market need that cannot be filled by a Canadian or permanent resident.

The LMIA is an important tool that helps ensure hiring temporary foreign workers is in line with Canadian labour market needs, and that asses the risk of downward pressure on Canadian wages. The assessment also helps protect workers by ensuring that the business and job being offered are legitimate. It reinforces Program conditions and employer obligations and ensures that workers are paid a fair wage.

The TFW Program is jointly administered by three federal departments: ESDC, IRCC, and the Canada Border Services Agency (CBSA):

ESDC is responsible for processing employers' requests for LMIAs and for the TFW Program's employer compliance regime, including employer inspections;
IRCC processes and determines eligibility for work permits; and,
CBSA, at the port of entry, is responsible for the issuance of work permits.

The Program has implemented a number of measures over the last year to further enhance worker protections.

For example, the Migrant Worker Support Program (MWSP) helps to inform temporary foreign workers of their rights in Canada and protect them from mistreatment and abuse.

The MWSP funds 10 community-based organizations, and over 100 sub-agreement holders across Canada, to deliver community-based services, including, on-arrival orientation, assistance in emergency and at-risk situations, and tools to help workers better understand and exercise their rights.

The Government also implemented key regulatory amendments in September of 2022 to better protect temporary foreign workers and help prevent mistreatment and abuse during their stay in Canada by:

Ensuring that employers provide all temporary foreign workers with information about their rights in Canada (facilitated by the published guide entitled ‘Temporary foreign workers: your rights are protected');
Prohibiting reprisal by employers against workers, for instance against those who come forward with complaints;
Preventing employers from charging recruitment fees to workers and holding them accountable for the actions of recruiters in this regard; and,
Requiring employers to provide reasonable access to health-care services. Employers using the TFW Program are also required to provide private health insurance when needed.

These regulations further deter bad actors from participating in the Program and improve the Program's ability to conduct inspections and administer consequences for those who do not follow the rules.

Key facts

In 2023, there were just under 185,000 temporary foreign workers with valid work permits.

While program volumes have increased in recent years due to domestic labour shortages, the TFW Program represents less than 1% of Canada's total labour force.

Note that this figure does not include temporary residents from IRCC's International Mobility Program or International students, which make up 87% of Canada's temporary residents, with the remaining 12% coming from the TFW Program.

The TFW Program experienced a surge in demand due to the post-pandemic economy, low unemployment rates, and record-high job vacancy rates in 2022. To address those labour shortages, the Program adopted a series of policy changes.

With changing labour market conditions and declining job vacancies, the Government is adjusting the TFW Program to ensure the Program continues to only be used in cases where there are no workers in Canada that can fill the necessary role.

To achieve this, several temporary measures under the Temporary Foreign Worker Program Workforce Solutions Road Map will not be renewed and will end this spring, ahead of schedule. Effective May 1, 2024.

Labour Market Impact Assessments (LMIAs) will be valid for six months (a decrease from 12 months) to ensure accurate labour market needs.

To ensure key sectors continue to have the workers they need, only employers in the construction and health-care sectors will continue to be allowed to hire up to 30% of their workforce through the TFW Program for eligible positions.
Asylum seekers will be added to the list of designated, under-represented groups to be targeted by employers before applying for a LMIA to hire temporary foreign workers for positions under the provincial or territorial median hourly wage.
The Government of Canada will continue to monitor labour market conditions to ensure that the TFW Program reflects current economic needs, and that Canadians are considered first for job opportunities,

Key messages

The Temporary Foreign Worker Program helps Canadian employers hire foreign workers to fill temporary labour and skills shortages when qualified Canadians and permanent residents are not available.

While in Canada, temporary foreign workers have the same workplace protections under applicable federal, provincial, and territorial employment standards as Canadians and permanent residents.

The Program has several measures in place to ensure that workers, and the Program, are protected from abuse.

Employers are expected to uphold certain conditions and be aware of their responsibilities and obligations. A comprehensive compliance regime is in place to help protect workers by verifying, through inspections, that employers are meeting their obligations.

The government continues to work towards better protecting the health and safety of temporary foreign workers and ensuring that the rights are protected while they are in Canada

4.b. Work permits

Issue

This note provides general information on work permits under the Temporary Foreign Worker (TFW) Program.

Background

The TFW Program is jointly administered by three federal departments: ESDC (Employment and Social Development Canada), Immigration, Refugees and Citizenship Canada (IRCC), and the Canada Border Services Agency (CBSA). ESDC is responsible for the administration of the Labour Market Impact Assessment (LMIA), and for the TFW Program's employer compliance regime. IRCC is responsible for the processing, determination of eligibility, and is the policy lead for work permits. CBSA, at the port of entry, is responsible for the issuance of work permits.

Most work permits issued to foreign workers under the TFW Program are closed or "employer-specific" work permits, meaning that it is for a designated role with a specific Canadian company, in accordance with specific conditions, such as length of employment and location. The TFW Program requires employers to undertake an LMIA.

Once an employer has an approved LMIA, the worker can apply to IRCC for a closed work permit, which authorizes them to work for a specific employer, occupation, and time period.
Under the Seasonal Agricultural Workers Program (SAWP), with a positive transfer LMIA, workers can transfer to work for another SAWP employer, provided the worker has a valid work permit and has not completed 8 months of employment, without having to apply for a new work permit, subject to agreements between the source country, employer, and employee.
Once the whole process is approved, it should be documented. In addition, the worker and new employer must sign a new SAWP employment contract.
Temporary foreign workers who have a valid employer-specific work permit, or a work permit under the SAWP, and who are experiencing or are at risk of abuse in their jobs can apply for an Open Work Permit for Vulnerable Workers (OWP-V) (IRCC).
This permit allows temporary foreign workers to work temporarily for any employer, typically for one year, without the need for an LMIA.

There have been calls from various stakeholders and Parliamentarians to move away from employer-specific work permits, as these are seen to contribute to a power imbalance between the temporary foreign workers and employers by tying workers' authorization to work in Canada - and their livelihood - to one employer.

Closed work permits help the TFW Program protect some of the most vulnerable temporary foreign workers, as they allow Service Canada officers to review whether the employer and job offers are legitimate and to verify whether employers have adhered to program requirements.

Changes to Visa Requirements for Mexican Nationals

On February 29, 2024, Canada initiated to re-impose a visa requirement on Mexican nationals. This change aims to balance mobility for Mexican visitors with the sustainability of Canada's immigration program and supporting services at all levels of government.

This requires some additional steps to the application process for Mexican temporary foreign workers, such as submitting their passport for the issuance of their visa counterfoil. IRCC is ramping up operations in its visa application centres and have opened additional offices. In addition, IRCC has proposed to provide support at the airport in the months to come to smooth over the process as required.

Key facts

In 2023, there were 184,485 temporary residents with a valid work permit under the TFW Program, representing roughly 1% of the Labour Force (21.38 million).

In 2023, 184,235 work permits issued under the TFW Program.

Key messages

Temporary foreign workers under the Program are issued closed work permits, as the Program is intended to fill a specific temporary need when Canadians or Permanent Residents are not available.

Once an employer has an approved LMIA, the worker can apply to IRCC for a closed work permit, which authorizes them to work for a specific employer, occupation, and time period.

Temporary foreign workers who have a valid employer-specific work permit, or a work permit under the SAWP, and who are experiencing or are at risk of abuse in their jobs can apply for an Open Work Permit for Vulnerable Workers (OWP-V).

This permit allows temporary foreign workers to work temporarily for any employer, typically for one year, without the need for a LMIA.

If pressed

Changes to Visa requirements for Mexican nationals

We understand the importance of ensuring that SAWP and TFW Program workers from Mexico can enter Canada in a timely and efficient manner.

ESDC officials are working collaboratively with IRCC and CBSA officials to support Mexican nationals travelling to Canada for work.

Sector specific work permits

ESDC and IRCC are jointly working to deliver on the Budget 2022 announcement to create a new streamlined foreign worker program for agricultural and fish processing employers.

The new program will help strengthen worker protections and help ensure Canada's food producers have access to a stable and reliable supply of labour, which includes increased worker mobility for work permit holders within the primary agriculture, and fish and food processing sectors.

4.c. Recognized employer pilot

Issue

The Recognized Employer Pilot (REP) is a three-year pilot program designed to be more responsive to established labour market shortages and to reduce administrative burden for repeat employers hiring within in high-demand fields when they meet the highest standards for wages, working and living conditions and worker protection.

Background

On August 8, 2023, the Minister of Employment, Workforce Development and Official Languages announced REP.

The Pilot will test whether a more rigorous upfront application process for repeat employers in high-demand sectors would result in administrative efficiencies for stakeholders, while not undermining efforts to improve worker protections.

The REP builds on the 2021 mandate letters for the then Minister of Employment, Workforce Development and Disability Inclusion, and the then Minister of Immigration, Refugees and Citizenship Canada (IRCC). It also builds on a 2021 Government of Canada announcement to design a Trusted or Recognized Employer Model that streamlines the current application process for returning employers with a good record of hiring temporary foreign workers to fill positions that cannot be filled by domestic workers.

On November 22, 2023, the Department introduced a policy variation for REP that would allow employers who experienced COVID-19 shutdowns to draw from earlier calendar years to fulfill a REP eligibility criterion requiring repeat employers to have received a minimum of three positive LMIAs over the last five years. These employers would be required to have received at least one recent positive LMIA (in 2022 or 2023) plus two others in any of 2023, 2022, 2019, 2018, 2017 or 2016.

Employment and Social Development Canada (ESDC) will complete an assessment of the REP to test administrative efficiencies and inform future programming.

Key facts

84 occupations are designated for the REP using the 2021 National Occupation Classification (NOC) codes that are deemed to be in shortage based on the Canadian Occupational Projection System (COPS) assessment of recent labour market conditions (2019-2021).

The following seven 2021 NOC codes deemed to be in shortage are excluded from the REP to avoid program overlap with the Global Talent Stream (GTS):

20012 - Computer and information system managers
21300 - Civil engineers
21310 - Electrical and electronics engineers
21311 - Computer Engineers (except software engineers and designers)
21210 - Mathematicians, statisticians, and actuaries
21211 - Data Scientists
21230 - Computer systems developers and programmers

To manage application intake volumes and ensure that sufficient resources are available to meet expected employer demands, a phased approach to REP is as follows: September 12, 2023: Intake for the Agricultural sector. Retroactive eligibility for employers that applied between July 1 and September 12, 2023, was granted to align with peak agricultural application timing for the following season.

January 1, 2024: Intake was aligned for all the other designated occupations.

September 16, 2024: Intake for the REP closes and the dual-purpose application to become a recognized employer would cease to be available.

December 31, 2026: Proposed end date for the REP

Key messages

The TFW Program aims to ensure the rights of temporary foreign workers are protected, while striking a balance between timely access to temporary foreign workers and protecting the labour market for domestic job seekers.

The REP will streamline service delivery for returning employers across Canada that have met a high standard with respect to TFW Program compliance, and who will commit to exemplary activities and employment practices in support of worker protection and developing the labour market.

The REP will reduce red tape by introducing longer LMIA validity periods of up to 36 months when hiring in 84 designated occupations in shortage.
Recognized employers will gain access to simplified LMIA applications to address future hiring needs for designated occupations.
Recognized employers will also benefit from a visual identifier on the temporary foreign worker section of Job Bank that shows their recognized status.

In exchange for more flexibility in how recognized employers can fill labour market gaps, employers must also commit to participate in random check-ins that will serve to validate that employers are maintaining the highest standards and for the purpose of evaluating the pilot to inform long term program design decisions.

4.d. Temporary Foreign Worker Program (TFWP) inspections

Issue

What is the government doing to improve the quality of the Temporary Foreign Worker (TFW) Program inspections?

Background

Employers who use the TFW Program may be subject to inspections to verify their compliance with program conditions.

Since 2011, Employment and Social Development Canada (ESDC) has been working to adapt the compliance regime to meet evolving needs.

Presently, employers must demonstrate compliance with up to 28 conditions designed to better protect temporary foreign workers from abuse and exploitation. Findings of non-compliance result in administrative monetary penalties and, in some cases, bans from participating in the Program.

Many efforts to enhance the compliance regime were already underway prior to the pandemic; however, the realities of COVID-19 introduced a set of new issues and challenges for the Department. The impacts of this were highlighted in the Report on the Auditor General's audit of the Department's new quarantine and outbreak inspections, conducted during the pandemic. Report findings revealed issues in the timeliness of completing inspections, the quality of inspections, and proper documentation, with a focus on the impact to the health and safety of temporary foreign workers in the agriculture sector.

Rebuilding the Compliance Regime

On December 9, 2021, the Auditor General tabled a report on the TFW Program that provided recommendations to improve the Program's compliance regime. In response to the report's findings, the Department immediately started working on rebuilding the compliance regime and successfully delivered on four priority commitments. Specifically, the Department:

Established a protocol to take immediate action if a temporary foreign worker's health and safety is suspected to be at risk, including notifying stakeholders, authorities, and other jurisdictions.
Developed a plan to target areas of higher risk, to reduce backlogs and ensure timely inspections.
Exceeded an 80% rate of inspection files without substantive errors by March 2022 (and 90% by September 2022).
Provided supplementary training to all inspection staff in key areas to strengthen quality and ensure timely inspections.

The Department continues to make progress in rebuilding the compliance regime by successfully implementing a series of measures aimed at enhancing the quality, timeliness and reach of inspections. This includes: improving training; implementing a workload strategy; conducting outreach and engagement sessions with employers; increasing its collaboration with stakeholders; information sharing with key partners; operating a confidential tip line; and maintaining a liaison service with consulates and Migrant Worker Support Organisations.

In the year 2022-23, the TFW Program completed 2,141 employer inspections and received over 5,450 tips and leads. Approximately 5% of employers inspected were deemed to be non-compliant, leading to 23 warnings; 93 administrative monetary penalties; and 7 bans issued by the Program that year. From April 1, 2023, to February 29, 2024, the TFW Program completed 1,964 employer inspections and received over 6,800 tips and leads. Approximately 7% of employers inspected were deemed to be non-compliant, which subsequently led to 18 warnings; 109 administrative monetary penalties; and 11 bans issued by the Program that year.

Key facts

To help improve inspection quality, the Department used funding from Budget 2022 to invest in measures such as quality control and review functions, to better detect and correct substantive errors within the inspection process. In addition to the quality control function, funding was used to advance the:

modification of IT tools to allow for the better documentation of evidence;
implementation of enhanced training for inspection staff;
implementation of a workload management approach to target high risk areas and reduce inspection backlogs; data capabilities to better identify high-risk areas, so that resources can be maximized and focused on cases with a higher risk of non-compliance;
outreach and engagement sessions to increase awareness on temporary foreign worker rights and employer obligations; the reporting tools in place; and,
collaboration efforts and information sharing with partners to facilitate more timely interventions.

The initiatives above have positively contributed to the increase of quality and reach of inspections, which means leveraging the Department's compliance regime to enhance the impact on the protection of the health and safety of temporary foreign workers.

Additional funding announced in Budget 2023 invested $48 million over two years to improve the TFW Program Employer Compliance Regime, including more program inspectors and the maintenance of the worker protection tip line.

The TFW Program operates a confidential tip line and Concierge Service to assist workers who report allegations of abuse and mistreatment.

Through the Tip Line, workers are offered a personalized service, based on their needs, to report allegations of abuse or mistreatment, as they arise. Agents answer the phone seven days per week with the support of interpretation services in over 200 languages available five days per week (with weekend voicemail service).

All leads, tips and allegations received by the Department, whether through the tip line or the Concierge Service, are reviewed and flagged based on their level of risk.

Leads that are considered high-risk are assessed as a priority, ensuring appropriate action can be taken as quickly as possible. The numbers of tips and allegations assessed continues to increase year over year, for example, in fiscal year 2023-24, the Department saw a 72% increase in volume, compared to the same period last fiscal year.

Key messages

The Government takes the health, safety, and protection of temporary foreign workers very seriously, and will not tolerate any abuse or misuse of the Program.

To help improve inspection quality, the Department used funding from Budget 2022 and Budget 2023 to invest in measures that are positively impacting the quality of inspections such as:

Quality control and review functions.
National workload management strategy and oversight.
System enhancements.
Training, guidance, and enhanced tools for inspectors.
Process simplifications and streamlined inspections.
Increased collaboration with partners through enhanced information sharing.

4.e. Temporary Foreign Worker Program (TFWP) operations - Labour Market Impact Assessment processing

Issue

Over the last three years, there has been a persistent increase in demand from employers wanting to hire through the Temporary Foreign Worker (TFW) Program. This surge can be attributed to low unemployment and recent policy measures designed to alleviate labour shortages.

Background

The Program is designed to be responsive to the Canadian labour market by ensuring that Canadians and Permanent Residents are first considered for available jobs. The Labour Market Impact Assessment (LMIA) process is the key labour market test that provides the government with assurances that hiring temporary foreign workers is aligned with Canadian labour market needs. The LMIA also establishes Program conditions that identify standards to ensure the health, safety, and protection of temporary foreign workers.

On April 4, 2022, Employment and Social Development Canada (ESDC) implemented measures to address labour shortages through the Workforce Solutions Road Map, including making the Seasonal Cap Exemption permanent; increasing the validity of LMIAs from 9 months to 18 months; and increasing the maximum employment duration for High-Wage and Global Talent Stream workers from two to three years.

Further changes took effect on April 30, 2022, including increasing the cap on low-wage temporary foreign workers as a percentage of an employer's workforce from 10% to 20% for all occupations, and to 30% for sectors with labour shortages. Moreover, the Program removed a policy that automatically refused the processing of LMIA applications for low-wage occupations in the accommodations and food services and retail sectors, where there is an unemployment rate of 6% or higher.

In October 2023, the measures were initially extended until August 30, 2024, with the validity period being lowered from 18 months to 12 months. These policy measures made more employers eligible for the Program and increased the number of temporary foreign workers they could hire.

In March 2024, ESDC announced the end of certain time-limited measures from the Road Map to respond to declining job vacancies. Effective May 1, 2024, LMIA validity will be reduced to six months; the cap on low-wage-stream temporary foreign workers will be reduced from 30% to 20% of an employer's workforce, with an exception for the construction and health care sectors; and employers will be required to include asylum seekers in their recruitment efforts before applying for an LMIA.

Key facts

To maintain client service in the face of record demand, in fiscal year (FY) 2022-2023, the TFW Program obtained additional funds and modernized its processing with several initiatives, including transitioning to a paperless application model, which made LMIA Online the default application method in April 2023 and reduced the Program's administrative burden (99% of applications are currently submitted online).

The Program has undertaken various workload management initiatives to distribute files amongst regions (e.g., manual batch transfers of received files; proactive changes to distribution settings for automated file assignment) to leverage available internal capacity.

In addition, the Program has introduced a series of measures to help expedite LMIA processing by simplifying administrative steps and reducing touchpoints with employers, including the introduction of the Recognized Employer Pilot in September 2023.

Due to these measures, the program experienced a twofold increase in productivity during 2022-2023 and has sustained progress in the 2023-24 fiscal year. For the 2023-24 fiscal year, the Program processed 21.8% more files compared to the same period last year, which itself marked a record-breaking year for processing volumes.

Key messages

The LMIA process is key to ensuring that hiring temporary foreign workers is in line with Canadian labour market needs.

LMIAs establish Program conditions that identify standards to ensure the protection of temporary foreign workers and prevents bad actors from accessing the Program.

The Program has experienced an increase of LMIA applications since 2022-23 fiscal year, due to low unemployment, increased demand, and measures designed to address labour shortages.

Through ongoing modernization, streamlining, and workload management, the Program has increased its processing capacity and maintained client service for priority processing streams.

For FY 2023-24, the data indicates a 33.5% increase in file creation compared to the corresponding period last year.

4.f. Workforce solutions roadmap

Issue

With changing labour market conditions and declining job vacancies, the Government of Canada is adjusting the Temporary Foreign Worker (TFW) Program to ensure the program continues to only be used in cases where there are no workers here in Canada that can fill the necessary role.

Background

The TFW Program helps Canadian employers hire foreign workers to fill temporary labour and skills shortages when qualified Canadians and permanent residents are not available.

The TFW Program experienced a surge in demand in the past few years due to the post-pandemic economy, low unemployment rates, and record-high job vacancy rates in 2022.

To help address those labour and skills shortages and as part of the Government of Canada's ongoing efforts to maintain a TFW Program that is responsive to changing labour market conditions, the Program implemented a suite of permanent and temporary measures in April 2022, known as the Workforce Solutions Road Map, which was renewed in April 2023 and October 2023.

In response to recently changing labour market conditions and declining job vacancies, it was announced on March 21, 2024 that some time-limited measures under the Road Map will not be renewed and will end, earlier than planned, on May 1, 2024.

Key facts

Effective May 1, 2024:

New Labour Market Impact Assessments (LMIAs) will be valid for 6 months (a decrease from 12 months) to ensure accurate labour market needs.
Employers who are approved for the Recognized Employer Pilot will continue to benefit from validity periods of up to 36 months for applications that receive a positive decision.
To ensure key sectors continue to have the workers they need, only employers in the construction and health-care sectors will continue to be allowed to hire up to 30% of their workforce through the TFW Program for eligible positions. All other employers identified in the Road Map will have a reduction from 30% to 20% of their total workforce that can come in through the Low-wage Stream.
These measures were previously set to expire on August 30, 2024.
Furthermore, asylum seekers will be added to the list of designated, under-represented groups to be targeted by employers before applying for a Labour Market Impact Assessment to hire temporary foreign workers for positions under the provincial or territorial median hourly wage.

Key messages

The TFW Program is designed to be responsive to labour market conditions, ensuring that there is a genuine need for foreign labour, and to protect against wage suppression.

During times of economic uncertainty, the Government of Canada facilitated recruitment of workers through the TFW Program Workforce Solutions Road Map.

As Canada's labour market shifts, and pressures on our social systems rise, the government is signalling its intention to reduce Canada's reliance on temporary foreign workers and help employers find the talent they need here at home.

The Program examined key sources of labour market information, including data from the Labour Force Survey and the Job Vacancy and Wage Survey. Economic indicators demonstrate that the construction and health care sectors continue to face the most acute labour market shortages.

As a result, these two sectors will continue to be allowed to hire up to 30% of their workforce through the TFW Program to ensure they have the workers they need.

Requiring employers to target asylum seekers in Canada with valid work permits before applying for a Labour Market Impact Assessment could help relieve the pressures related to providing temporary housing to asylum claimants and reduce their dependence on public supports.

The Government of Canada will continue to monitor labour market conditions to ensure that the TFW Program reflects current economic needs, and that Canadians are considered first for job opportunities, while also ensuring that the rights of temporary foreign workers in Canada are protected.

4.g. Temporary Foreign Worker (TFW) accommodations

Issue

Employer-provided accommodations requirements under the Temporary Foreign Worker (TFW) Program is a complex, multi-jurisdictional issue, and work is underway with provinces and territories (P/Ts) to introduce a more consistent and reliable process for annual employer-provided accommodations inspections.

Background

Employers hiring workers under the Seasonal Agricultural Worker Program (SAWP) and the Agricultural Stream must provide housing to temporary foreign workers and are required to submit a Housing Inspection Report (HIR) to Service Canada as part of their Labour Market Impact Assessment (LMIA) application.

While P/T governments are generally responsible for setting accommodation standards and inspecting against them, TFW Program policy is not prescriptive on whether government or private inspectors complete the HIR, nor is it prescriptive with the housing standards against which the accommodation is inspected.

Employer-provided accommodations under the TFW Program have been the subject of several consultation processes, such as the 2020 Consultation captured by the 2021 ‘What We Heard' Report, as well as the 2022 Ministerial Roundtable. It is also currently the basis for a Federal, Provincial, and Territorial (FPT) Working Group on Accommodations, wherein ESDC is working with P/T officials to develop a more consistent and reliable process for annual employer-provided accommodations inspections.

As a result of the work done and feedback received, 12 essential health and safety requirements have been developed which are focused on addressing the most pressing, and non-negotiable, health and safety concerns related to employer-provided accommodations to temporary foreign workers. Elements included are the availability of potable water and clean air, overcrowding, and the proximity of living quarters to hazardous material.

Going forward, ESDC is proposing a phased approach to ensure impacted employers and P/Ts have sufficient time to prepare and adapt. Note that the intent is not to change existing P/T standards, but rather to seek greater assurances that P/T standards related to the 12 essential health and safety requirements as a condition for participation in the Program have been met.

ESDC is currently consulting stakeholders on the new foreign labour program for agriculture and fish processing, which will be implemented as early as 2027. As part of those consultations, ESDC will be seeking stakeholder feedback on the proposed accommodation approach, amongst other key design elements, as a final round of consultations on this matter.

Key facts

Temporary foreign workers have the same rights to workplace protections as Canadians and permanent residents under applicable FPT employment standards and collective agreements.

Approximately 40% of all temporary foreign workers coming to Canada have access to employer-provided accommodations. Based on a housing survey conducted in 2020 by Agriculture and Agri-Food Canada for temporary foreign workers employed in the agricultural sector (sample of 2,414 dwellings), most reported being housed in single-family dwellings (40%), followed by bunkhouses (23%), and mobile homes (19%). Single-family dwellings were the most popular dwelling type in most regions except for Ontario where 44% were dorm/bunkhouses.

While most employers take the health and safety of temporary foreign workers seriously, there are instances where workers are found to be living in poor conditions, despite federal and provincial requirements in this area.

Accommodations standards are under the jurisdiction of P/Ts or local authorities. This means that the federal government cannot set or directly enforce housing standards, including for employer-provided accommodations, to temporary foreign workers.

Stakeholders have been consulted extensively on this issue in recent years. First in 2020 as COVID-19 exacerbated concerns in this area the Government led an official consultation with the subsequent release of the What We Heard report in 2021, followed by the Ministerial Roundtable on Housing Standards in 2022.

As this complex issue is multi-jurisdictional in nature, ESDC has been leading an FPT Working Group on Accommodations since March 2022. The FPT Working Group facilitates collaboration across jurisdictions in the development and implementation of proposed new requirements in this area, while working through challenges P/Ts come across in developing/refining their jurisdictional requirements in relation to the 12 essential health and safety requirements.

In recent years, stakeholders have been consulted extensively on this issue, and progress has been achieved in determining a feasible way forward.

12 essential health and safety requirements have been developed and include: the availability of potable water and clean air, overcrowding, and the proximity of living quarters to hazardous material.

The intent is not to change existing P/T standards but to seek greater assurances that P/T standards in these areas have indeed been met, as a condition for participation in the Program.

Key messages

Many temporary foreign workers in the agricultural sector rely on their employer for housing, and often face unique economic and social vulnerabilities related to low wages, restricted immigration status, and potential language barriers.

The Government of Canada recognizes the importance of safe accommodations to protect the health and safety of temporary foreign workers and remains committed to continuing to work with P/Ts and other stakeholders in this area.

ESDC will continue to advance on this work in this area via the FPT Working Group on Accommodations, and with the wider stakeholder community through consultations on the new foreign labour program for agriculture and fish processing.

The government will work to gradually implement enforceable program requirements to ensure employer-provided housing is inspected and that employers are providing safe and suitable accommodations to temporary foreign workers.

5. Labour Market - Hot issues

5.a. Foreign credential recognition

Issue

Skilled newcomers face higher unemployment and under-utilization rates than their Canadian-educated peers due to unique barriers they face, such as a lack of Canadian work experience and the foreign credential recognition (FCR) process for regulated occupations (for example, nurses, doctors, engineers), which can be lengthy, complicated, and costly.

Background

Outside of a few federally regulated occupations, FCR and licensure are provincial and territorial responsibilities that are often delegated through legislation to regulatory authorities. There are approximately 600 regulatory authorities in Canada. The number of regulated occupations and compulsory skilled trades varies significantly, ranging from around 65 to 275 per jurisdiction.

Through the Foreign Credential Recognition Program (FCRP), the Government helps to develop and strengthen Canada's foreign credential assessment and recognition capacity, contribute to improving the labour market integration outcomes of skilled newcomers, and support interprovincial labour mobility.

The FCRP provides funding provinces and territories, regulatory authorities and other organizations to:

enhance FCR processes by funding projects to standardize national exams, centralize information portals, and provide alternative assessment processes
provide loans and support services to help skilled newcomers navigate FCR processes, and
provide employment supports, such as training, work placements, wage subsidies, mentoring and coaching to help skilled newcomers gain Canadian work experience in their field of study and fully use their talents

The Program supports the Minister's mandate commitment to continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition.

Key facts

The total annual budget for the FCRP is $57.3 million ongoing.

Budget 2024 proposes an additional $50 million for the FCRP ($25 million in 2024 to 2025 and $25 million in 2025 to 2026), with a focus on residential construction and the health care sector

Since 2015, the Program has invested nearly $270 million in 115 projects to support skilled newcomers. This includes:

system improvement projects that to make processes faster and more efficient
- For example, the FCRP is currently providing $2.7 million over 4 years to the Canadian Association of Medical Radiation Technologists to create an online portal for educational credential assessment which will reduce the number of steps required and time needed for credential recognition. The project will also implement a national bridging program to support the labour market integration of internationally educated medical radiation technologists
loans projects that help newcomers cover FCR expenses
- From October 2018 to September 2022, $17.3 million in loans were issued to 1,888 newcomers. To-date, 39% of borrowers completed the FCR process and 47% found employment in their field of expertise or related occupation. These results will continue to increase during the loan repayment phase
- in 2022 to2023, the FCRP launched 7 new 10-year agreements totaling $43 million, which are now issuing new loans
employment support projects to help newcomers gain Canadian work experience
- Since 2021, 5,655 new participants were provided with employment supports. To-date, 1,231 newcomers have found employment in their field of expertise and 580 have completed the FCR process

Key messages

Provinces and territories are primarily responsible for credential recognition and licensure for regulated occupations and often delegate this authority through legislation to regulatory authorities.

The Government of Canada recognizes the challenges skilled newcomers face. The Foreign Credential Recognition Program supports the labour market integration of skilled newcomers by funding provinces and territories, regulatory bodies and other stakeholders to improve foreign credential recognition systems, provide loans and support services to help skilled newcomers navigate FCR processes, and provide Canadian work experience to skilled newcomers to support their labour market integration.

Budget 2024 announced an additional $50 million over 2 years starting in 2024 to 2025 for the Foreign Credential Recognition Program, with a focus on residential construction and health care.

This builds on Budget 2022 investments of $115 million over 5 years starting in 2022 to 2023 and $30 million ongoing for the Foreign Credential Recognition Program, starting with a focus on supporting the labour market integration of internationally educated health professionals.

Since 2020, the Program has invested nearly $114 million in 36 projects focusing on the labour market integration of internationally educated health professionals.

5.b. Labour market agreements

Issue

Canada's labour market continues to face many challenges and opportunities, including responding to labour and skills shortages across key sectors and regions, and maintaining core investments in skills training and employment supports in the context of demographic pressures and changes in the nature of work.

Background

The Government of Canada's largest investment in training is through bilateral labour market transfers with provinces and territories (PTs). Each year, the Government of Canada provides approximately $3 billion in funding through the bilateral Labour Market Development Agreements (LMDAs) and the Workforce Development Agreements (WDAs).
Over the past two decades, these agreements have supported millions of Canadians to find and keep good jobs, reducing the poverty rate, and helping mid-career workers reskill/retool at critical points in their careers.
The Government of Canada made significant investments into the Canadian labour market at the beginning of the pandemic, including through the labour market agreements, with an additional $1.5 billion investment so PT governments could respond to local labour market conditions.
Budget 2024 reflects a strong labour market, showing the results of these significant investments into Canadian workers and employers since 2020.
As announced in Budget 2024, the Government of Canada will continue to provide nearly $3 billion per year, to ensure Canadians continue to have access to skills training and labour market supports to take advantage of economic opportunities.
Complementary to the investment under these agreements, the Government of Canada has its own labour market programs that target issues of national importance, such as labour market supports for key sectors, Indigenous Peoples, persons with disabilities, youth, and official language minorities. These programs allow the federal government to support issues that cross jurisdictions.

Key facts

In Canada, training is a shared responsibility between the federal and provincial/territorial governments. The labour market agreements are the Government of Canada's single largest investment in training. These agreements reach approximately one million Canadians across the country through flexible, regionally adapted employment and training supports.

Last year, these agreements were leveraged to tackle a range of issues for the economy:
- Early Childcare, health, and dental care - 500,000 women trained to feed into predominantly female occupations such as Early Childhood Educators, dental assistants and personal support workers. More than 10,000 trained from health care related sectors. From a training and employment perspective, this proposal will be crucial to Canada's Health Care Strategy, which will have a significant focus on addressing health human resources shortages, recruitment, retention, HR planning and innovation.
- Construction, electricians, welders, plumbers - 130,000 trained from the trades needed to advance new and affordable housing and building retrofits.
- Net-zero economy - 72,000 individuals trained. One in five individuals in green sector occupations in Canada received training through these labour market agreements, including many who work in construction and trades who play a key role in the retrofit of existing buildings and for new builds. Canada's net-zero agenda and national housing strategy will require adequate labour market investments to ensure our workforce is prepared to tackle these issues. For example, approximately 700,000 skilled trades workers are set to retire by 2028. Any reduction of training supports will undermine the ability for firms to capture the opportunities of set out in the net-zero agenda and Canada's housing strategy.
- 500,000/year Immigration Target - more than one fifth of the labour market agreements clients are recent immigrants and WDA training led to average of $11,000/year more in earnings for this population.
- Indigenous Peoples - Indigenous population is the youngest and fastest growing. Almost one in 10 clients served is Indigenous, double labour force availability. Training led to average of $1,900/year more in earnings. Some 9 out of 10 Nunavut participants gained employment after receiving training.
- Inclusive Growth - 852,000 persons with disabilities (PWDs) have the potential to work but are not working. A third of clients served are PWD, double labour force availability. The WDAs are the Government of Canada's largest targeted investment in PWD labour market supports, requiring PTs to spend $220 million/year from the $722 milllion/year WDAs, and requiring them to cost-match the federal investment. One third of all clients under the labour market agreements are PWD, with strong results. Training led to average of $2,600/year more in earnings for PWD participants.

Key messages

The Government of Canada's largest investment in the labour force is through the Labour Market Development Agreements (LMDAs), and the Workforce Development Agreements (WDAs) with provinces and territories (PTs), providing nearly $3 billion annually, supporting approximately one million Canadians annually and training workers across key sectors.
Budget 2024 announced a return to pre-pandemic, core-funding levels under these agreements and signalled a need to further enhance the efficiency of labour market investments. The Government of Canada will continue working with PTs to ensure these investments complement federal priorities and efforts across the Canadians labour market and economy more broadly.
The Canadian labour market has undergone many changes since these agreements were put in place. As such, we must continue working in close partnership with PTs and stakeholders to respond successfully to the evolving needs of Canadians and to bolster Canada's economic prosperity.
Through this partnership, we remain committed to ensuring Canadians continue to have access to skills training and labour market supports needed to succeed in the labour market of today and tomorrow.

5.c. Community workforce development program

Issue

Employment and Social Development Canada (ESDC) requested $19.8 million for new supplemental supports through the Community Workforce Development Program in the Supplementary Estimates (B) for fiscal year ending March 31, 2024.

Background

The Fall Economic Statement 2022 announced $60 million over three years, starting in 2023-24, to create new supplemental supports to existing federal and provincial or territorial programming.

This will contribute to advancing the Mandate Letter Commitment to support the future and livelihood of workers and their communities.

Key facts

The funding requested through the Supplementary Estimates B process, includes funding for seven FTEs and approximately $19 million in grants and contributions.

Efforts are underway by the Department to support the Government's implementation of this commitment.

Key messages

The Fall Economic Statement 2022 provided funding to help ensure Canadian workers can thrive in a changing global economy.

The $60 million announced over three years, starting in 2023-24, to create new supplemental supports to existing federal and provincial or territorial programming will contribute to helping Canadian workers lead the way and thrive in good-paying jobs.

This will be essential to Canada's long-term prosperity.

More information on the implementation of this Fall Economic Statement 2022 commitment will be forthcoming in the coming months.

5.d. Employment statistics and potential rising unemployment

Issue

Despite a resilient post-pandemic labour market and strong employment growth in 2022 and 2023, labour demand seems to have weakened in recent months. Recession risks persist as Canadian consumer demand has been constrained by high interest rates and geopolitical tensions have risen.

Background

Elevated consumer prices have placed consistent pressure on households. Although inflation has fallen to 2.8% in February 2024 from its peak (8.1%) in June 2022, many Canadians still struggle with affordability challenges, especially those in the lowest income bracket. To counter heightened inflation, the Bank of Canada has increased its policy interest rate from 0.5% to 5% over a 15-month span, increasing the cost of borrowing for consumers and businesses.
The risk of a global recession has declined, largely because of the strength of the U.S. economy, but geopolitical tensions could create new challenges for the world economy. Global growth is expected to slow from 2.6% in 2023 to 2.4% in 2024.
Contrary to many economists' expectations, Canada avoided a recession in the second half of 2023. Real gross domestic product (GDP) edged up (0.2%) in the fourth quarter of 2023, following a slight decline (0.1%) in the third quarter.
In the most recent Fall Economic Statement, Finance Canada predicted that in the event of a recession, real GDP would contract by 1.7% and the unemployment rate could rise to 7.1% in the second quarter of 2024. As a result, the number of unemployed Canadians might increase by up to 222,000 compared to March 2024.

Key facts

Canada's population reached almost 40.8 million on January 1, 2024, a rise of 3.2% compared to one year earlier. This was the highest annual population growth rate since 1957 (+3.3%), driven by permanent and temporary immigration in 2023.
Employment in Canada stood at 20.4 million in March 2024, up by close to 325,000 compared to March 2023. This notable increase occurred on the background of fast population growth. However, Canada's employment rate stood at 61.4% in March 2024, down from a recent high in January 2023 as population growth outpaced employment growth.
In March 2024, the U.S. employment rate stood at 60.3%, about a percentage point lower than in Canada (at 61.4%). While both countries employ similar methods in their estimations, there are some key differences. For one, Canada includes persons 15 years and older in their estimates, while the U.S. sets their threshold at age 16. In addition, the U.S. requires unpaid family workers to work at least 15 hours during the reference week to be considered employed, whereas Canada does not impose a minimum. These differences mean the rates are not directly comparable.
While Canada's unemployment rate was in record-low territory in 2022 and 2023, it has been edging up since the Spring of 2023. At 6.1% in March 2024, the unemployment rate is still lower than during the five years before the pandemic (when it averaged 6.3%).
As per projections from Finance Canada, GDP decline and unemployment rate increase in the event of a recession would be less severe than in the 2008-2009 recession. During that recession the unemployment rate reached 8.8% and unemployment increased by 446,000 between October 2008 and July 2009.
While Canada's economy has been more resilient than expected up to the first quarter of 2023, real GDP was relatively unchanged over recent quarters. On an annual basis, real GDP rose at its slowest pace since 2016 (except 2020).

Key messages

Demographic forces, such as aging populations and shifting workforce dynamics will continue to exert their influence on the labour market. While the labour market shows signs of slowing, employment levels are robust and unemployment rates remain low (by historical standards).
Employment and Social Development Canada is committed to helping Canadians succeed in an evolving economy and changing labour market, through skills development programs, student loans and student work placement programs.
In the unlikely event of a recession, through programs such as EI and LMDAs, ESDC is prepared to support those negatively affected by a recession by providing temporary income support to unemployed workers while they look for employment or to upgrade their skills.

5.e. Sectoral workforce solutions program

Issue

Canada is facing chronic labour shortages and skills mismatches in sectors that are critical to the well-being of its citizens, the Sectoral Workforce Solutions Program aims to help remedy these issues.

Background

Budget 2024 announced 2 new funding envelopes for the Sectoral Workforce Solutions Program (SWSP): $50 million over 4 years starting in 2025 to 2026 to support workers who may be impacted by Artificial Intelligence (AI) and $10 million over two years, starting in 2024 to 2025 to increase training for early childhood educators (ECE).

The Sectoral Workforce Solutions Program (SWSP) is a contribution program that funds projects to help key sectors of the economy implement solutions to address their current and emerging workforce needs.

The existing authorities of the SWSP have flexible terms and conditions that allow for a wide range of activities to be funded such as:

training and reskilling to help workers gain new skills to meet the needs of employers and transition to in-demand jobs
supporting employers, in particular small and medium-sized businesses, attract and retain a skilled and innovative workforce
helping equity-deserving groups get the skills they need to find work and succeed
implementing other creative solutions, standards and tools to address sectoral labour market needs

The Federal government is uniquely positioned to invest in sectoral workforce programming and lead systemic and enduring change in key economic sectors such as housing, artificial intelligence and sustainable jobs.

Key facts

Over the last four years, the SWSP invested $562.4 million in 55 projects, including 21 projects across eight key economic sectors, ten projects supporting persons with disabilities, 22 projects in the tourism sector, and two projects dedicated to training, employer supports and labour market information in the long-term care and energy sectors.

Since its inception, the SWSP has supported 28,473 individual participants, 13,030 or 48% of which belong to at least one equity-deserving group, 5,463 employers, and over 300 workforce solutions and tools.

Key messages

On artificiel intelligence

In the past year, job growth in AI increased by nearly one third in Canada, among the highest growth of any sector. The Sectoral Workforce Solutions Program is an important lever to help industries where AI is impacting workers.

AI-driven industries will benefit from the coordinated sector-based approach SWSP provides to address its distinct and complex workforce challenges.

On early learning and childcare

Over the last 3 years, Canada has made incredible progress in building the Canada-wide early learning and childcare system, saving families significant funds, an average of $6,853 per child each year. With the help of provinces and territories, Canada has supported over 100,000 new childcare spaces, well on the way to reaching 250,000 by March 2026. To help staff these new affordable childcare spaces, the sector needs an influx of workers.

With this sector in a period of rapid growth, the Sectoral Workforce Solutions Program will help implement solutions that address current and emerging workforce needs.

On the Sustainability Job Training Fund

On March 8, 2024, the Department launched a Call for Proposals for the Sustainable Jobs Training Fund. It will support a series of training projects that will help workers upgrade or gain new skills for jobs in the low-carbon economy. Applications are being accepted until May 15, 2024.

6. Students - Hot issues

6.a. Eliminating Interest on Student and Apprentice Loans

Issue

The Government committed to permanently eliminating interest accrual on Canada Student Loans and Canada Apprentice Loans to help borrowers manage their repayment.

Background

The Canada Student Financial Assistance Program provides need-based grants and interest-free loans to help students access post-secondary education and offers the Repayment Assistance Plan to borrowers with financial difficulty.

To help mitigate the economic impact of COVID-19 on Canada Student Loan and Canada Apprentice Loan borrowers, a moratorium on payments and interest accrual was implemented for six months (March 31 to September 30, 2020). An additional two-year interest waiver was introduced on April 1, 2021.

The permanent elimination of interest accrual on Canada Student Loans and Canada Apprentice Loans took effect on April 1, 2023, fulfilling the Minister's mandate commitment to permanently eliminate interest accrual. Borrowers continue to be responsible for any previously accrued interest.

Loans are payment-free for borrowers enrolled in post-secondary studies or an apprenticeship program, and for six months after they leave their studies or apprenticeship.

Key facts

As part of the 2022 Fall Economic Statement, the Government announced an investment of $2.7 billion over five years and $556.3 million ongoing to permanently eliminate interest on Canada Student Loans and Canada Apprentice Loans.

The elimination of interest accrual will help 1.2 million student loan and apprentice loan borrowers by ensuring that the repayment of their loans remains affordable.

The elimination of interest will save an average student loan borrower $610 per year.

Key messages

Canadians are facing affordability pressures, including significant increases in the cost of living. Post-secondary education is a key driver of inclusive economic growth, and the Government is committed to ensuring that it remains accessible and affordable for all Canadians.

Loans are an important and cost-effective student support, and the Government is committed to ensuring that repayment remains manageable.

Interest on Canada Student Loans and Canada Apprentice Loans was permanently eliminated on April 1, 2023, building on the temporary interest waiver introduced during the COVID-19 pandemic. This will result in a savings for the average student loan borrower of $610 per year and will help 1.2 million student and apprentice loan borrowers.

6.b. Canada Student Grant / Affordability pressures for students

Issue

Post-secondary students are facing rising costs, and stakeholders have raised concerns about their ability to continue to afford post-secondary education (PSE).

Background

The Canada Student Financial Assistance (CSFA) Program helps students from low- and middle-income families afford PSE through non-repayable grants, interest-free loans, and repayment assistance.

Canada Student Grants (CSGs) are need-based and targeted at students who are underrepresented in PSE. To help with rising costs, the Government doubled most CSGs over pre-pandemic amounts for two years (2020-2021 through 2022-2023) and increased CSGs by 40 percent over pre-pandemic amounts for the current school year. Budget 2024 further announced an extension of the 40 percent increase to CSGs for the 2024-2025 school year. As a result, full-time students from low- and middle-income families can receive up to $4,200 in 2023-2024 and 2024-2025, and grants for part-time students, students with dependants, and students with disabilities are also temporarily higher.

To further help with upfront PSE affordability, the weekly loan limit for Canada Student Loans (CSLs) has been temporarily increased from $210 to $300 for the current school year, and Budget 2024 also committed to extending this measure for 2024-2025. CSLs are now permanently interest-free, and to help borrowers in repayment, the Repayment Assistance Plan was also enhanced so that no borrower must repay a CSL until they are earning at least $42,720 per year, with higher thresholds for higher family sizes.

To reflect the true rental housing costs faced by most post-secondary students, Budget 2024 also proposes to modernize the CSFA Program shelter allowance when determining financial need. This new approach will provide additional student aid to approximately 79,000 students each year.

Although the Minister's most recent mandate letter does not mention CSGs, the temporary CSG increase reflects the 2019 mandate letter commitment to increase CSGs by up to an additional $1,200 per year (a 40 percent increase). The permanent elimination of interest accrual fulfilled a 2021 mandate letter commitment.

Key facts

Stakeholders representing students have been vocal in arguing that students are experiencing significant affordability pressures due to rising tuition and living costs, particularly as the price of necessities like transportation, food, and shelter have all increased.

CSGs provide significant support to low- and middle-income students to help with PSE and living costs. In 2021-2022, 53% of total federal student financial assistance was in the form of non-repayable grants. 544,000 students received $3.3 billion in CSGs. This included approximately:

471,000 grants to full-time students from low- and middle-income families for a total of $2.3 billion dispersed
91,100 grants for students with dependants for a total of $434.4 million dispersed
60,200 grants for students with permanent disabilities for a total of $230.8 million dispersed

To provide further help with the costs of attending PSE, 558,000 students received a total of $2.9 billion in CSLs in 2021-2022.

Key messages

Post-secondary education is a key driver of inclusive economic growth, and the Government is committed to ensuring that it remains accessible and affordable for all Canadians.

To help students afford post-secondary education, the Government has increased Canada Student Grants by 40 percent over pre-pandemic amounts for the current school year and has committed in Budget 2024 to continuing this increase to CSGs in 2024-2025. This is expected to support 587,000 students in 2024-2025 and means that full-time students from low- and middle-income families can continue to receive up to $4,200, which they do not have to pay back.

Canada Student Loan debt has remained stable for over a decade due to significant increases in Canada Student Grant amounts.

To further help ensure post-secondary education remains accessible, the Government has also increased the weekly limit for Canada Student Loans, which are now permanently interest-free, from $210 to $300 for the 2023-2024 school year, and committed in Budget 2024 to continuing this in 2024-2025. This is expected to help 652,000 students pay for their post-secondary education costs and increased living expenses in 2024-2025.

As announced in Budget 2023, the Government undertook consultations with students on student financial assistance and will continue to take their suggestions into consideration in ongoing efforts to keep post-secondary education accessible and affordable.

6.c. Skilled trades

Issue

Encouraging youth to choose the skilled trades as first-choice careers and creating more apprenticeship opportunities.

Background

Employment and Social Development Canada's Canadian Apprenticeship Strategy supports a trades workforce that is skilled, inclusive, certified and productive. It aims to:
- promote the skilled trades as a good career option
- develop initiatives that help Canadians explore, prepare for, participate, and succeed in apprenticeship
- facilitate the participation of employers and unions in apprenticeship and
- encourage innovative tools and approaches to better prepare pre-apprentices, apprentices and journeypersons for the jobs of tomorrow
A number of measures funded under the Canadian Apprenticeship Strategy are aimed at attracting youth to apprenticeship and the skilled trades and creating more apprenticeship opportunities:
- First announced in Budget 2018, the Skilled Trades Awareness and Readiness Program provides funding to support projects that encourage Canadians, including groups that face barriers (including women, Indigenous people, newcomers to Canada, persons with disabilities and youth), to explore and prepare for careers in the skilled trades
- Skills/Compétences Canada and its regional organizations work with employers, educators, labour groups and governments to promote skilled trades and technology careers to Canadian youth. Activities include skilled trades awareness programs such as in-school presentations and career fairs, annual regional skills competitions, and an annual National Competition that brings together students and apprentices to compete in 40 skills areas
- The Apprenticeship Grants are intended to help apprentices progress and complete their training in Red Seal trades. 2 types of grants are available: the Apprenticeship Incentive Grant, and the Apprenticeship Completion Grant
- The Apprenticeship Service aims to help apprentices get the hands-on experience they need for a career in the skilled trades by providing hiring incentives to small and medium-sized employers
To complement these measures, the Government is investing in a national campaign for youth, their parents and caregivers, to promote the skilled trades as a first-choice career and to change the perception around careers in the trades. The campaign has won multiple Davey Awards, the Communications community office Diamond Award of Communications Excellence, and has received positive feedback from industry stakeholders.
- Last fall, interactive exhibits were held across Canada to help raise awareness of the value of a career in the skilled trades
To encourage more people to pursue a career in the skilled trades, the federal government is creating apprenticeship opportunities to train and recruit the next generation of skilled trades workers. Budget 2024 proposes:
- $90 million over 2 years, starting in 2024 to 2025, for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices in the residential construction sector. Of this amount, $10 million in 2025 to 2026 would be sourced from existing departmental resources
- $10 million over 2 years, starting in 2024 to 2025, for the Skilled Trades Awareness and Readiness Program to encourage Canadians to explore and prepare for careers in the skilled trades. This funding would be sourced from existing departmental resources

Key facts

Canada is facing significant labour shortages across the country, yet skilled trades continue to be perceived as a "second choice" career by youth. Over three-quarters of Canadian youth 16 to 19 years of age expect to enroll in post-secondary education after high school (i.e., university or college), whereas less than 1 in 10 Canadian youth expect to enroll in a trade school (Earnscliffe Strategy Group public opinion research, 2023).
The Canadian Apprenticeship Strategy also includes measures to improve apprenticeship outcomes and to engage unions and other organizations involved in apprenticeship, such as the Canada Apprentice Loan, the Union Training and Innovation Program and the Women in the Skilled Trades initiative.
These measures are complemented by the Canada Revenue Agency's Apprenticeship Job Creation Tax Credit, Tradesperson's Tools Deduction, Tuition Tax Credit and Labour Mobility Deduction, and by Employment Insurance for Apprentices during in-class training.

Key messages

Our Government is a strong supporter of apprenticeship and the skilled trades that provide Canadians with rewarding careers. Our Government also understands that Canada needs more skilled trades workers building homes.
That is why Budget 2024 proposes to provide:
- $90 million over 2 years, starting in 2024 to 2025, for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices in the residential construction sector; and
- $10 million over 2 years, starting in 2024 to 2025, for the Skilled Trades Awareness and Readiness Program to encourage Canadians to explore and prepare for careers in the skilled trades
It is also why our Government invests nearly $1 billion annually in a broad array of apprenticeship supports through grants, loans, Employment Insurance benefits to eligible apprentices attending full-time technical training, tax credits, deductions, the Red Seal program, and project funding under the Canadian Apprenticeship Strategy.
These investments will encourage more young people to consider an exciting new career in the skilled trades, improve the quality of training in the skilled trades and help apprentices connect with job opportunities in the trades.

7. Estimates

7.a. 2023 to 2024 Supplementary estimates C overview

Issue

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (C) for fiscal year ending March 31, 2024?

Key Facts

Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year.

ESDC is requesting a total of $1.5 billion in additional authorities through the Supplementary Estimates (C).

An increase of $55.1 million in Vote 1 Operating expenditures
An increase of $4.4 million in Vote 5 Grants and Contributions
An increase of $215.5 million in Vote 10 Debt write-off
A decrease of $28.0 million in Statutory items
An increase of $1,260.3 million in non-budgetary Statutory items

Response

ESDC is requesting adjustments for:

Table 17: Voted Appropriations (in dollars)
A. Voted Appropriations	Operating Vote 1	Grants and Contributions Vote 5	Debt Write-Off Vote 10	Total
1. Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans	0	0	215,518,566	215,518,566
2. Funding for onboarding Old Age Security under Benefits Delivery Modernization (Budget 2023)	37,707,092	0	0	37,707,092
3. Funding for employment assistance services under the Enabling Fund for Official Language Minority Communities (Budget 2023)	3,656,092	6,000,000	0	9,656,092
4. Funding for a sustainable jobs training stream under the Canadian Apprenticeship Strategy	4,143,074	5,079,932	0	9,223,006
5. Funding for a new agriculture and fish processing stream within the Temporary Foreign Worker Program (horizontal item)	5,543,622	0	0	5,543,622
6. Funding for the Action Plan for Official Languages 2023-2028 (Budget 2023) (horizontal item)	1,518,488	1,126,904	0	2,645,392
7. Funding for the Registration and Authentication Call Centre (Budget 2023)	1,924,765	0	0	1,924,765
8. Funding to launch a Sustainable Jobs Training Fund through the Sectoral Workforce Solutions Program	1,471,175	0	0	1,471,175
9. Funding to improve external identity validation measures	376,442	0	0	376,442
Sub-total Voted Appropriations	56,340,750	12,206,836	215,518,566	284,066,152

Table 18: Transfers (in dollars)
B. Transfers	Operating Vote 1	Grants and Contributions Vote 5	Total
10. From the Public Health Agency of Canada to the Department of Employment and Social Development for activities related to the Indigenous Early Learning and Child Care Transformation Initiative	0	890,149	890,149
11. From various organizations to the Treasury Board Secretariat for the Transfer Payments Innovation Agenda	-15,000	0	-15,000
12. From the Department of Employment and Social Development to the Canadian Accessibility Standards Development Organization for the reallocation of compensation adjustments	-225,000	0	-225,000
13. From the Department of Employment and Social Development to the Office of Infrastructure of Canada for compensation adjustments as well as for the costs of providing information technology services for the Reaching Home Project Results Reporting Platform	-974,619	0	-974,619
14. From the Department of Employment and Social Development to the Department of Indigenous Services for the Indigenous Early Learning and Child Care Transformation Initiative	0	-3,332,300	-3,332,300
15. From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Early Learning and Child Care	0	-5,344,730	-5,344,730
Sub-total Transfers	-1,214,619	-7,786,881	-9,001,500

Table 19: Budgetary Statutory Authorities (in dollars)
C. Budgetary Statutory Authorities	Total
16. Old Age Security Payments Guaranteed Income Supplement Payments Allowance Payments	-437,000,000 -12,000,000 1,000,000
17. Canada Student Grants Payments under the Canada Student Financial Assistance Act (CSFAA) Payments under the Apprentice Loans Act (ALA) Interest and other liabilities under the CSFAA	499,201,074 30,648,045 939,894 -45,412
18. Canada Education Savings Grant payments Canada Learning Bond payments	-10,000,000 -9,000,000
19. Canada Disability Savings Bond payments Canada Disability Savings Grant payments	-72,887,482 -171,957,262
20. 20.1 Canada Recovery Benefit 20.2 Canada Recovery Caregiving Benefit 20.3 Canada Recovery Sickness Benefit 20.4 Canada Worker Lockdown Benefit	4,661,541 14,410,894 474,838 -787,009
21. Spending of revenues pursuant to subsection 5.2(2) of the Department of Employment and Social Development Act (DESDA)	125,818,612
22. Contributions to employee benefit plans	8,487,664
Sub-total Budgetary Statutory Authorities	-28,034,603

Table 20: Summary of Total Budgetary Authorities (in dollars)
Budgetary Authorities	Transfers	Adjustments	Total
Vote 1 - Operating expenditures	-1,214,619	56,340,750	55,126,131
Vote 5 - Grants and Contributions	-7,786,881	12,206,836	4,419,955
Vote 10 - Debt Write-Off	0	215,518,566	215,518,566
Total Voted Appropriations	-9,001,500	284,066,152	275,064,652
Statutory	0	-28,034,603	-28,034,603
Total Budgetary Authorities	-9,001,500	256,031,549	247,030,049

Table 21: Statutory Non-Budgetary Authorities (in dollars)
D. Statutory Non-Budgetary Authorities	Total
23. Loans disbursed under the Canada Student Financial Assistance Act Loans disbursed under the Apprentice Loans Act	1,255,256,815 5,007,911
Total Statutory Non-Budgetary Authorities	1,260,264,726

Background

A. Voted Appropriations

1- Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans - $215.5 million

ESDC is requesting an amount of $215.5 million to write-off 20,201 debts related to Canada Student Direct Loans (CSL) and Canada Apprentice Loans (CAL) in these Supplementary Estimates. A very small amount ($2,711) is associated to the write-off of 23 Canada Apprentice Loans.

The CSL and CAL write-off is related to student loan debts for which all reasonable collection efforts have been exhausted.

The write-off of unrecoverable Canada Student Loans and Canada Apprentice Loans is an annual accounting exercise, approved by the National Write-Off and Remissions Review Committee.

Removing these student loan debts from Canada Student Financial Assistance Program accounts reduces the total portfolio size, providing room within the portfolio's regulatory limit, allowing for more student loans to be available to Canadians.

This year's write-off of $215.5 million (compared to a final write-off amount of $220.6 million in the fiscal year 2022 to 2023) represents less than one percent of the Canada Student Loan Program and Canada Apprentice Loans portfolio value, which is consistent with the proportion of loans written-off in previous years. This trend is expected to continue.

ESDC is requesting authority to include $215,518,566 in Vote 10 (Debt write-off) to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans as part of the Supplementary Estimates (C) 2023‑24.

2- Funding for onboarding Old Age Security under Benefits Delivery Modernization (Budget 2023) - $37.7 million

ESDC delivers more than $60 billion in OAS benefits. Budget 2023 announced a funding of $123.9 million over seven years, starting in the fiscal year 2023 to 2024 to complete OAS IT modernization to ensure the timely and reliable delivery of these critical benefits.

The Benefits Delivery Modernization (BDM) Programme is the largest Information Technology (IT) transformation initiative ever undertaken by the Government of Canada. The goal of BDM is to modernize the technology that administers Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP).

OAS is the first benefit to onboard onto the BDM platform. The most significant milestone to date of the BDM Programme was achieved in June 2023 with the successful deployment of the first release of OAS onto BDM, covering over 600,000 Foreign Benefits clients. The OAS on BDM project remains on track for the full migration of the remaining 7.3 million clients by December 2024 followed by a 9‑month stabilization period.

The amount of $37.7 million represents the Consolidated Revenue Fund (CRF) portion of the funding required for the fiscal year 2023 to 2024. An additional $53.3 million is funded from the Employment Insurance (EI) Operating Account for the EI Planning, Design, and Proof of Concept. EI funding is not included in the Estimates.

ESDC is requesting authority to include $37,707,092 in Vote 1 (operating expenditures, excluding EBP costs of $5,065,891) for onboarding Old Age Security under Benefits Delivery Modernization as part of the Supplementary Estimates (C) 2023‑24.

3- Funding for employment assistance services under the Enabling Fund for Official Language Minority Communities (Budget 2023) - $9.7 million

Budget 2023 announced a funding of $208 million over five years, starting in the fiscal year 2023 to 2024, and $54.0 million ongoing to expand the Enabling Fund for Official Language Minority Communities (OLMC) program to support official language minority community organizations to deliver employment assistance services (EAS).

In the fiscal year 2023 to 2024, ESDC is requesting $9.7 million to start operationalizing the program to respond to OLMC EAS needs across Canada.

This new EAS stream and the Enabling Fund for Official Language Minority Communities core program supports the Department's contribution to the Action Plan for Official Languages 2023‑2028: Protection - Promotion - Collaboration.

The Enabling Fund is the Department's main program for meeting its responsibilities under the Official Languages Act to enhance the vitality of Official Language Minority Communities in Canada.

This new stream strengthens this commitment by ensuring Canadians living in linguistic minority communities have access to employment assistance services provided in the official language of their choice, and by organizations that best understand their unique needs.

ESDC is requesting authority to include $3,656,092 in Vote 1 (operating expenditures, excluding EBP costs of $782,894) and $6,000,000 in Vote 5 (Grants and Contributions) for employment assistance services under the Enabling Fund for Official Language Minority Communities as part of the Supplementary Estimates (C) 2023‑24.

4 - Funding for a sustainable jobs training stream under the Canadian Apprenticeship Strategy - $9.2 million

The Fall Economic Statement 2022 announced $250 million over five years, starting in the fiscal year 2023 to 2024 to help ensure Canadian workers can thrive in a changing global economy. Specific measures include the Sustainable Jobs Training Centre, a new sustainable jobs stream under the Union Training and Innovation Program and the Sustainable Jobs Secretariat.

The funding of $9.2 million requested for the fiscal year 2023 to 2024 will support a new sustainable jobs stream under the Union Training and Innovation Program, which is now part of the Canadian Apprenticeship Strategy program. This measure will provide funding for union-led green skills training for 20,000 apprentices and journeypersons in the Red Seal trades, helping to better equip them with the skills needed to succeed in the clean economy.

ESDC is requesting authority to include $4,143,074 in Vote 1 (operating expenditures, excluding EBP costs of $676,737) and $5,079,932 in Vote 5 (Grants and Contributions) to implement a sustainable job training stream under the Canadian Apprenticeship Strategy as part of the Supplementary Estimates (C) 2023‑24.

5 - Funding for a new agriculture and fish processing stream within the Temporary Foreign Worker Program (horizontal item) - $5.5 million

Every year, over 66,000 temporary foreign workers enter Canada to work in the country's primary agriculture and fish and seafood processing sector, which represents approximately 43% of all temporary foreign worker positions approved by Employment and Social Development Canada (ESDC) in 2022.

Budget 2022 announced $48.2 million over three years, to create a new Foreign Labour Program for agricultural and fish processing. This program will help further strengthen worker protection and better support the labour needs of Canada's food producers.

In collaboration with Immigration, Refugees and Citizenship Canada (IRCC), ESDC is actively working to deliver on the Federal 2022 Budget commitment to develop the new foreign labour program for agriculture and fish processing.

Funding of $5.5 million requested by ESDC for the fiscal year 2023 to 2024 will support the creation of the new stream, including a sector-specific work permit, and expanded and modernized partner country agreements.

The objective is to have the new stream implemented by January 1, 2027, with transitional measures and benefits being rolled out to employers and workers starting in 2025.

ESDC is requesting authority to include $5,543,622 in Vote 1 (operating expenditures, excluding EBP costs of $916,710) for a new agriculture and fish processing stream within the Temporary Foreign Worker Program as part of the Supplementary Estimates (C) 2023‑24.

6 - Funding for the Action Plan for Official Languages 2023-2028 (Budget 2023) (horizontal item) - $2.6 million

Budget 2023 proposed to provide $373.7 million over five years, starting in the fiscal year 2023 to 2024, to support new and enhanced federal initiatives under the Action Plan for Official Languages 2023‑2028.

The funding of the Action Plan for Official Languages 2023‑2028: Protection - Promotion - Collaboration, released on April 26, 2023 will be distributed across 24 initiatives, which are divided among 6 federal institutions (Canadian Heritage, Immigration, Refugees and Citizenship Canada, Health Canada, Justice Canada, Statistics Canada and Employment and Social Development Canada) and would be implemented by each of them.

This funding will address the demographic weight of Francophone minority communities; support the development of Quebec's English-speaking communities; revive the growth of bilingualism among Canadians; further support Francophone immigration outside Quebec; protect and promote the French language; provide more opportunities for everyone to learn and appreciate the official languages throughout life; and support sectors essential to the vitality of official language minority communities: immigration, employment, education, justice, health, arts and culture.

ESDC is requesting authority to include $1,518,488 in Vote 1 (operating expenditures, excluding EBP costs of $337,717) and $1,126,904 in Vote 5 (Grants and Contributions) for the Action Plan for Official Languages 2023-2028 as part of the Supplementary Estimates (C) 2023‑24.

7 - Funding to support the Registration and Authentication Call Centre (Budget 2023) - $1.9 million

Budget 2023 proposed $30.3 million over two years, starting in the fiscal year 2023 to 2024, to support the Registration and Authentication (R&A) Call Centre. This funding will ensure the R&A Call Centre will have the capacity to maintain service levels to support Canadians having technical challenges with their My Service Canada Account.

The amount of $1.9 million represents the Consolidated Revenue Fund (CRF) portion of the funding required for the fiscal year 2023 to 2024. Additional $10.5 million is funded from the Employment Insurance (EI) Operating Account and $0.8 million is funded from Canada Pension Plan. EI and CPP funding are not included in the Estimates.

This funding will ensure ESDC can continue to provide clients with timely access to agents to resolve enquiries and improve the ability of clients to access secure online services and programs for which they are eligible.

ESDC is requesting authority to include $1,924,765 in Vote 1 (operating expenditures, excluding EBP costs of $392,829) to support the Registration and Authentication Call Centre as part of the Supplementary Estimates (C) 2023‑24.

8 - Funding to launch a Sustainable Jobs Training Fund through the Sectoral Workforce Solutions Program - $1.4 million

In 2022, the Government announced the 2030 Emissions Reduction Plan, an achievable sector-by-sector roadmap for Canada to reach its climate targets in a manner that will help ensure economic competitiveness, prosperity and create good jobs.

Subsequently, through the Fall Economic Statement 2022 and Budget 2023, the Government of Canada announced $125 million over five years, starting in the fiscal year 2023 to 2024, to launch the Sustainable Jobs Training Centre.

The funding of $9.2 million requested for the fiscal year 2023 to 2024 will support the work necessary to launch the new Sustainable Jobs Training Centre, now called the Sustainable Jobs Training Fund, to help workers upgrade or gain new skills for jobs in the low-carbon economy.

Through a Call for Proposals, this Fund will support a series of training projects to help 15,000 workers across the country upgrade or gain new skills for jobs in the low carbon economy.

The Department is advancing work on this commitment and it is anticipated that a Call for proposals will take place in 2024.

ESDC is requesting authority to include $1,471,175 in Vote 1 (operating expenditures, excluding EBP costs of $314,886) to launch a Sustainable Jobs Training Fund through the Sectoral Workforce Solutions Program as part of the Supplementary Estimates (C) 2023‑24.

9 - Funding to improve external identity validation measures - $0.4 million

ESDC is seeking to access $17.1 million over five years, starting in the fiscal year 2023 to 2024, to maintain strong authentication tools and processes to support identity validation and prevent external fraud such as identity theft.

This funding will ensure that the Department can continue to protect the personal information contained in the Department digital service delivery platforms such as My Service Canada Account (MSCA), validate client identity and ensure that benefits are paid to the right individuals.

The amount of $0.4 million represents the Consolidated Revenue Fund (CRF) portion of the funding required for the fiscal year 2023 to 2024. In addition, $2.7 million is funded from the Employment Insurance (EI) Operating Account and $0.3 million is funded from Canada Pension Plan which are not included in the Estimates.

B. Transfers

10 - From the Public Health Agency of Canada to the Department of Employment and Social Development for activities related the Indigenous Early Learning and Child Care Transformation Initiative - $0.9 million

Under the IELCC Initiative, Indigenous partners have the flexibility to request that some or all of their funding be advanced through existing funding agreements with a selection of federal departments that deliver IELCC programs, namely, ESDC, Indigenous Services Canada (ISC), Public Health Agency of Canada (PHAC), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

A Memorandum of Understanding (MOU) between ESDC, PHAC, and ISC was developed to set out the terms and conditions for the transfer of funds between the departments, be used to fund recipients responsible for the implementation of the Indigenous Early Learning and Child Care (IELCC) Transformation Initiative, as per IELCC plans and leadership endorsed resolutions determined by Indigenous partners.

A selection of First Nations partners in Alberta have requested that ELCC funding they previously received through PHAC be advanced through their agreements with ESDC.

ESDC is requesting authority to include a transfer of $890,149 in Vote 5 (Grants and Contributions) from the Public Health Agency of Canada for activities related to the Indigenous Early Learning and Child Care Transformation Initiative as part of the Supplementary Estimates (C) 2023‑24.

11 - From various organizations to the Treasury Board Secretariat for the Transfer Payments Innovation Agenda - $15 thousand

The Office of the Comptroller General (OCG) leads the Grants and Contributions (Gs and Cs) Innovation Agenda, called the Policy on Transfer Payments Renewal and Innovation Agenda (Agenda), in partnership with the transfer payment community.

The Agenda consists of an enterprise-wide approach that addresses key enabling systems and resources that would lead to broader and more meaningful impact on digital and data capabilities; policies and processes flexibility, integrity and results; and supporting the Gs and Cs practitioners and enabling innovation.

In the fiscal year 2023 to 2024, TBS signed Memorandum of Understanding (MOU) with the largest seventeen Gs and Cs delivery departments, including ESDC, to support the OCG in the delivery of the Agenda.

For the period covered by this MOU, the estimated total cost to ESDC will be $65 thousands in Vote 1 over 2 years, starting in the fiscal year 2023 to 2024.

ESDC is requesting authority to include a transfer of $15,000 in Vote 1 (Operating expenditures) to the Treasury Board Secretariat for the Transfer Payments Innovation Agenda as part of the Supplementary Estimates (C) 2023‑24.

12 - From the Department of Employment and Social Development to the Canadian Accessibility Standards Development Organization for the reallocation of compensation adjustments - $225 thousand

The transfer of $225 thousand represents funding for the economic increase resulting from the PSAC, EC, CT and EX collective agreements recently ratified.

The funding tied to CASDO employees was incorrectly allocated to ESDC by the Treasury Board Secretariat, resulting in a salary shortfall for CASDO.

An agreement was reached between both organizations, for ESDC to transfer salary funding to CASDO.

ESDC is requesting authority to include a transfer of $225,000 in Vote 1 (Operating expenditures) to the Canadian Accessibility Standards Development Organization for the reallocation of compensation adjustments as part of the Supplementary Estimates (C) 2023‑24.

13 - From the Department of Employment and Social Development Canada to the Office of Infrastructure of Canada for compensation adjustments as well as for the costs of providing information technology services for the Reaching Home Project Results Reporting Platform - $1.0 million

On October 26, 2021, an Order in Council transferred the Reaching Home program from ESDC to Infrastructure Canada (INFC).

A Memorandum of Understanding (MOU) is in place between ESDC and INFC, for ESDC to provide implementation and technical support to INFC. As part of this MOU, ESDC provided Information Technology (IT) support for a number of Infrastructure Canada IT business solutions in the fiscal year 2023 to 2024. The services provided are valued at $467,119.

ESDC and INFC are collaborating on the eventual transfer of IT services to INFC in the coming years.

The transfer also includes $0.5 million of funding for the recently ratified collective agreements. The funding for the economic increase tied to the Homelessness program was allocated to ESDC as opposed to INFC and consequently, INFC is facing a salary shortfall.

An agreement was reached between both organizations, for ESDC to transfer salary funding to INFC.

ESDC is requesting authority to include a transfer of $974,619 in Vote 1 (Operating expenditures) to the Office of Infrastructure of Canada for compensation adjustments as well as for the costs of providing information technology services for the Reaching Home Project Results Reporting Platform program as part of the Supplementary Estimates (C) 2023‑24.

14 - From the Department of Employment and Social Development to the Department of Indigenous Services for the Indigenous Early Learning and Child Care Transformation Initiative - $3.3 million

A selection of First Nations partners in the Atlantic region, Ontario and Alberta have requested that their ELCC funding be advanced through their agreements with ISC.

ESDC is requesting authority to include a transfer of $3,332,300 in Vote 5 (Grants and Contributions) to the Department of Indigenous Services for the Indigenous Early Learning and Child Care Transformation Initiative as part of the Supplementary Estimates (C) 2023‑24.

15 - From the Department of Employment and Social Development to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Early Learning and Child Care - $5.3 million

Under the Indigenous Early Learning and Child Transformation Initiative (IELCC Initiative), Indigenous partners have the flexibility to request that some or all their funding be advanced through existing funding agreements with federal departments that deliver IELCC programs. These departments include ESDC, Indigenous Services Canada (ISC), the Public Health Agency of Canada (PHAC), and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC).

ESDC and CIRNAC are entering an Interdepartmental Letter of Agreement (ILA) to provide for the transfer of funds from ESDC to CIRNAC to support the transfer of IELCC through the Recipient's Financial Transfer Agreement (FTA).

A selection of Inuit partners, Self-Governing First Nations in the Yukon, and Métis Nation partners have requested that their ELCC funding be advanced through their agreements with CIRNAC.

ESDC is requesting authority to include a transfer of $5,344,730 in Vote 5 (Grants and Contributions) to the Department of Crown-Indigenous Relations and Northern Affairs to support Indigenous Early Learning and Child Care as part of the Supplementary Estimates (C) 2023‑24.

C. Statutory Budgetary Authorities

16 - Elderly Benefits - Decrease of $448.0 million

It is estimated that $75.5 billion in Old Age Security (OAS) program benefits will be paid in the fiscal year 2023 to 2024. The decrease in the estimated expenditures for OAS program benefits is mainly due to:

a lower estimated number of beneficiaries for all the benefits under the program;
a lower estimated average monthly benefit for the OAS pension; and
an increase in the estimated amount recovered from higher-income seniors through the OAS Recovery Tax.

Old Age Security Payments - Decrease of $437.0 million

There is an overall decrease of $437.0 million in forecasted expenditures for the OAS pension - representing 0.8% - for the fiscal year 2023 to 2024, as estimated by Finance Canada in the Fall Economic Statement 2023. This decrease is an amalgamation of three components:

A decrease in the forecasted number of OAS pension beneficiaries from 7.24 million to 7.21 million, accounting for a decrease of $218 million.
A decrease in the forecasted average monthly rate for the OAS pension from $693.68 to $691.89, mainly due to a higher forecasted inflation rate, accounting for an increase of $156 million.
An increase in the forecasted amount of Benefit Repayment for the OAS pension from $2.74 billion to $2.80 billion, accounting for a decrease of $64 million.

Guaranteed Income Supplement Payments (GIS) - Decrease of $12.0 million

There is an overall decrease of $12.0 million in forecasted expenditures for the GIS - representing 0.1% - for the fiscal year 2023 to 2024, as estimated by Finance Canada in the Fall Economic Statement 2023. This decrease is an amalgamation of two components:

A decrease in the estimated number of beneficiaries from 2.45 million to 2.42 million, accounting for a decrease of $202 million.
An offsetting increase in the estimated average monthly GIS benefit from $602.06 to $607.65, accounting for an increase of $190 million.

Allowance Payments - Increase of $1.0 million

There is an overall increase of $1 million in forecasted expenditures for the Allowances - representing 0.2% - for the fiscal year 2023 to 2024, as estimated by Finance Canada in the Fall Economic Statement 2023. This increase is an amalgamation of two components:

An increase in the forecasted average monthly rate from $686.12 to $707.56, which accounts for an increase of $13 million.
An offsetting decrease in the estimated number of beneficiaries from 78,825 to 76,554, which accounts for a decrease of $12 million.

17 - Canada Student Loans Programs - Increase of $530.7 million

Canada Student Grant - Increase of $499.2 million

The estimated Canada Student Grants for the fiscal year 2023 to 2024 have been increased by $499.2 million due to the new measure announced in the Budget 2023 increasing the maximum Canada Student Grants amount by 40% above pre-pandemic levels.

Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act - Increase of $30.6 million

The estimated cost related to the direct financing arrangement under the Canada Student Financial Assistance Act for the fiscal year 2023 to 2024 has been increased by $30.6 million. This is mainly due to a higher-than-expected alternative payment to non-participating jurisdictions as a result of higher borrowing cost.

Payments related to the direct financing arrangement under the Apprentice Loan Act - Increase of $939.9 thousand

The estimated cost related to the direct financing arrangement under the Apprentice Loan Act for the fiscal year 2023 to 2024 has been increased by $939.9 thousand. This is mainly due to the following factors:

An increase to the estimated Special Payment to Quebec of $991 thousand to reflect the decrease in interest revenue due to the permanent elimination of interest on apprentice loans as announced in the 2022 Fall Economic Statement and Budget 2023.
An increase to the estimated Loans Forgiven of $214 thousand to reflect the current trend observed.
An offsetting decrease to the estimated Repayment Assistance Plan of $265 thousand to reflect the permanent elimination of the interest on apprentice loans as announced in the 2022 Fall Economic Statement and Budget 2023.

Interest and other Liabilities under the Canada Student Financial Assistance Act (Risk Shared Loans) - Decrease of $45.4 thousand

The estimates for Interest payments and liabilities have been adjusted to take into consideration the cost of buying-back Scotia Bank's portfolio net of the expected increase in recoveries following the recent re-purchase of multiple bank portfolios.

18 - Adjustment to Canada Education Savings grant and Canada Learning Bond payments - Decrease of $19.0 million

Canada Education Savings Grants - Decrease of $10.0 million

The main drivers behind this decline are the drop in performance of financial markets, high inflation, and economic uncertainty, which caused a decline in Canada Education Savings Grants (CESG) uptake and savings by families into RESPs as well as an increase in the number of families withdrawing contributions from RESPs prematurely which triggered CESG repayments.

Canada Learning Bond payments - Decrease of $9.0 million

The decrease in Canada Learning Bond (CLB) payments is a result of the lingering negative impact of the COVID-19 pandemic on the number of CLB beneficiaries. The number of children eligible for the CLB as well as the number of new and existing CLB beneficiaries dropped during the pandemic and are taking longer than expected to recover.

19 - Canada Disability Savings Program (Grant and Bond) - Decrease of $244.8 million

The decrease of $244.8 million in Canada Disability Savings Program expenditures in the fiscal year 2023 to 2024 is mainly due to:

a decrease of $171.9 million in Canada Disability Savings Grant (CDSG) expenditures
a decrease of $72.9 million in Canada Disability Savings Bond (CDSB) expenditures

The decrease in forecasts for the number of Registered Disability Savings Plans (RDSP) as well as CDSG and CDSB payments is due to the following factors:

Budget 2022 changes to the Income Tax Act permitted persons with type one diabetes (T1D) to be eligible for the Disability Tax Credit; the increase in the number of RDSPs opened as a result of this change was lower than expected in the first 6 months of the fiscal year 2023 to 2024.
A reduction of average annual contributions from beneficiaries led to lower grant payments.
A larger proportion of new RDSPs being opened by beneficiaries with higher income, and therefore ineligible for bond and lower grant amounts. We expect these trends to continue in the near future.

20 - Adjustment to Canada Recovery Benefits and Canada Worker Lockdown Benefit - Increase of $18.8 million

As part of Canada's COVID-19 Economic Response Plan, effective September 27, 2020, the Government introduced a suite of three new benefits to provide income support to Canadians: the Canada Recovery Benefit, the Canada Recovery Sickness Benefit and the Canada Recovery Caregiving Benefit.

Payments for the Canada Recovery Benefit - Increase of $4.7 million

The Canada Recovery Benefit (CRB) was available to those who were not employed or self-employed for reasons related to COVID-19 and were not eligible for EI, or who were working and had a reduction of at least 50% in their employment/self-employment income for reasons related to COVID-19.

The CRB was initially available for a maximum of 26 weeks. However, as the course of the pandemic evolved, the Government extended the benefit on several occasions, most recently increasing the maximum duration from 50 to 54 weeks in July 2021. The benefit program ended on October 23, 2021.

The CRB provided a weekly benefit amount of $500 paid for up to 42 weeks. Claimants who had already received CRB payments for 42 weeks and new CRB claimants as of July 18, 2021 received a weekly benefit of $300 for up to 54 weeks.

The overall increase of $4.7 million in forecasted expenditures for the CRB for the fiscal year 2023 to 2024, as estimated by Finance Canada and the Canada Revenue Agency (CRA), is reflective of the extension of income support available from a maximum of 50 to a maximum of 54 weeks, as well as revised projected take-up rates based on take-up to date, and CRA's continued administration of the program including compliance and collection.

Payments for the Canada Recovery Caregiving Benefit - Increase of $14.4 million

The Canada Recovery Caregiving Benefit (CRCB) provided $500 per week for up to 44 weeks for workers who were unable to work at least 50% of their scheduled work week because they had to stay at home to provide care to a young child or a family member who required supervision when they were not able to attend their school or facility due to COVID-19.

As COVID-19 public health measures remained in place, on December 17, 2021, the Government of Canada extended the CRCB until May 7, 2022, and increased the maximum duration of benefits by an additional two weeks, from 42 to a maximum of 44 weeks, to ensure that workers continued to have income support if they could not work because they had to provide care to a child or a family member.

The CRCB ended on May 7, 2022, with last period for retroactive applications closing on July 6, 2022.

The overall increase of $14.4 million in forecasted expenditures for the CRCB for the fiscal year 2023 to 2024, as estimated by Finance Canada and the Canada Revenue Agency (CRA), is reflective of the revised projected take-up rates based on take-up trends.

Payments for the Canada Recovery Sickness Benefit - Increase of $0.5 million

The Canada Recovery Sickness Benefit (CRSB) provided $500 per week for up to six weeks for workers who were unable to work at least 50% of their scheduled work week because they contracted COVID-19, must self-isolate for reasons related to COVID-19, or had an underlying health condition that makes them more susceptible to COVID-19.

As COVID-19 public health measures remained in place, to ensure that impacted workers continued to have income support during the pandemic, on December 17, 2021, the Government extended of the CRSB until May 7, 2022 and increased the maximum duration of benefits by an additional two weeks, from four weeks to six weeks.

The CRSB ended on May 7, 2022, with its last period for retroactive applications closing on July 6, 2022.

The overall increase of $0.5 million in forecasted expenditures for the CRSB for the fiscal year 2023 to 2024, as estimated by Finance Canada and the Canada Revenue Agency (CRA), is reflective of the revised projected take-up rates based on take-up trends, and Canada Revenue Agency's continued administration of the program including compliance and collection.

Payments for the Canada Worker Lockdown benefit - Decrease of $0.8million

From the beginning of the COVID-19 pandemic, the Government of Canada has put Canadians first, providing them with the support they need to stay safe and healthy.

In December 2021, to support workers affected by a COVID-19 public health lockdown, the Government of Canada established the Canada Worker Lockdown Benefit (CWLB).

The CWLB provided a benefit amount of $300 per week for the duration of the lockdown and was available to workers who temporarily lost their employment or self-employment or experienced a reduction of at least 50% in their average weekly income for reasons related to a COVID-19 lockdown order in a designated region.

Once an Order designating lockdown region(s) for the CWLB was approved by the Governor in Council, eligible workers in these regions were able to access the benefit for specific weeks.

The CWLB was available to eligible workers from October 24, 2021 to May 7, 2022.

The overall decrease of $0.8 million in forecasted expenditures for the CWLB for the fiscal year 2023 to 2024, as estimated by Finance Canada and the Canada Revenue Agency (CRA), is reflective of the fact that the provinces and territories reopened quicker than expected following the Omicron wave. This resulted in a decrease in CRA's administration work and associated costs.

**21 - Adjustment to Spending of revenues pursuant to subsection 5.2(2) of the Department of Employment and Social Development Act (DESDA) - Increase of $125.8 million**

The increase to the estimated Spending of revenues pursuant to subsection 52.2(2) of DESDA of $125.8 million for the fiscal year 2023 to 2024 is due to the new service delivery partnership with Health Canada to support service delivery of the Canadian Dental Care Plan to the public.

Announced in Budget 2023, the Canadian Dental Care Plan will help ease the financial barriers to accessing oral health care for up to nine million uninsured Canadian residents with an annual family income of less than $90,000. On December 11, 2023, the Government of Canada announced the details of the phased roll-out of the Canadian Dental Care Plan, with enrolled Canadians to start seeing an oral health provider as early as May 2024.

22 - Contributions to employee benefit plans - Increase of $8.5 million

Contributions to employee benefit plans (EBP) include costs to the government for the employer's matching contributions and payments to the Public Service Superannuation Plan, the Canada and the Quebec Pension Plans, death benefits, and the Employment Insurance Operating Account.

The forecasted increase of $8,487,664 is directly linked to the Vote 1 - Operating funding being requested through the Supplementary Estimates (C) for the Voted Appropriations items presented in Section A (items 2, 3, 4, 5, 6, 7 and 8 above). The total EBP for each item is as follow:

Funding for onboarding Old Age Security under Benefits Delivery Modernization ($5,065,891)
Funding for employment assistance services under the Enabling Fund for Official Language Minority Communities ($782,894)
Funding for a sustainable jobs training stream under the Canadian Apprenticeship Strategy ($676,737)
Funding for a new agriculture and fish processing stream within the Temporary Foreign Worker Program ($916,710)
Funding for the Action Plan for Official Languages 2023-2028 ($337,717)
Funding for the Registration and Authentication Call Centre ($392,829)
Funding to launch a Sustainable Jobs Training Fund through the Sectoral Workforce Solutions Program ($314,886)

D. Statutory Non- Budgetary Authorities

23 - Adjustment to Loans - Increase of $1,260.3 million

Loans disbursed under the Canada Student Financial Assistance Act - Increase of $1,255.3 million

The increase to the estimated Loans disbursed under the Canada Student Financial Assistance Act (CSFAA) of $1,255.3 million for the fiscal year 2023 to 2024, is mainly due to the following factors:

Estimated loan disbursements under the CSFAA have been increased by $619.5 million due to new measures announced in Budget 2023, mainly, raising the interest-free Canada Student Loan limit from $210 to $300 per week of study.
Estimated repayments have decreased by $713.3 million under the CSFAA. Program data shows that there has been slight growth in principal amounts being paid down by the Government through the Repayment Assistance Plan (RAP) in recent years, and the recent increase in RAP eligibility thresholds will likely continue this trend.
Decrease of $77.6 million to other adjustments.

Loans disbursed under the Apprentice Loan Act - Increase of $5.0 million

The increase to the estimated Loans disbursed under the Canada Apprentice Loan Act (CAL) of $5.0 million for the fiscal year 2023 to 2024, is mainly due to the following factors:

Estimated Canada Apprentice Loan (CAL) disbursements have been decreased by $5.6 million to align with current trends observed since the beginning of the fiscal year.
The estimated repayments have decreased by $9.6 million under the CLA. Program data shows that there has been slight growth in principal amounts being paid down by the Government through the Repayment Assistance Plan (RAP) in recent years, and the recent increase in RAP eligibility thresholds will likely continue this trend.
Increase of $1.0 million to other adjustments.

Key Quotes

Nil

Table 22: 2023 to 2024 Supplementary estimates C - Team
Prepared by	Key contact	Approved by	Date
Isabelle Goudreau A/Senior Director, Planning and Expenditure Management, CFOB	Brian Leonard Deputy Chief Financial Officer - Corporate Financial Planning [Redacted, Telephone number]	Karen Robertson Chief Financial Officer [Redacted, Telephone number]	February 09, 2024

7.b. EWDOL 2023 to 2024 supplementary estimates C placemat

ESDC is requesting a total of $247.0 million in additional authorities through the Supplementary Estimates (C), which would bring the total planned spending to $187.0 billion.

Figure of ESDC Total Planned Spending and Estimates to Date: description follows — **Figure 8: ESDC Total Planned Spending and Estimates to Date**

Of the $187.0 billion in planned spending for the fiscal year 2023 to 2024, $94.3 billion is reported in the Estimates, of which $92,5 billion are statutory and voted transfer payment programs. Here are a few programs included in ESDC's Estimates to date:

Old Age Security Program = $75,465.0 million
Early Learning and Child Care = $6,197.3 million
Canada Student Financial Assistance Program and Canada Apprentice Loans = $3,820.4 million
Canada Education Savings Program = $1,201.0 million
Workforce Development Agreements = $922.0 million
Canada Disability Savings Program = $652.6 million
Youth Employment and Skills Strategy= $483.8 million
Canada Apprenticeship Strategy = $394.8 million
Sectoral Workforce Solutions Program = $353.2 million
Indigenous Early Learning and Child Care = $278.9 million

Table 23: ESDC - Summary of Budgetary Authorities as reported in Supplementary Estimates (C) in millions of dollars
Budgetary Authorities	Approved Authorities to Date	Supplementary Estimates C	Proposed Authorities to Date (Estimates to Date)
Vote 1 - Operating	1,591.1	55.1	1,646.2
Vote 5 - Grants and Contributions	10,117.5	4.4	10,121.9
Vote 10 - Debt write-off	0	215.5	215.5
Total Voted Authorities	11,708.6	275.0	11,983.6
Statutory	82,379.0	-28.0	82,351.0
Total Budgetary Authorities	94,087.6	247.0	94,334.6

Descriptive Text:

Of the $247.0 million requested through Supplementary Estimates (C), the following items fall under the responsibility of the Minister of Employment, Workforce Development and Official Languages:

Funding to write off unrecoverable debts owed to the Crown for Canada Student Loans and Canada Apprentice Loans = $215.5 million
Funding for employment assistance services under the Enabling Fund for Official Language Minority Communities (B2023) = $9.7 million
Funding for a sustainable jobs training stream under the Canadian Apprenticeship Strategy (B2023) = $9.2 million
Funding for a new agriculture and fish processing stream within the Temporary Foreign Worker Program = $5.5 million
Funding for the Action Plan for Official Languages 2023-2028 (B2023) = $2.6 million
Funding to launch a Sustainable Jobs Training Fund through the Sectoral Workforce Solutions Program = $1.4 million
Transfer to TBS for the Transfer Payments Innovation Agenda = -$0.01 million
Transfer to CASDO for the reallocation of compensation adjustments = -$0.2 million
Transfer to INFC for compensation adjustments as well as for the costs of providing IT services for the Reaching Home Project Results Reporting Platform = -$1.0 million
Statutory adjustment to the Canada Student Financial Assistance Program = $530.7 million
Statutory adjustment to the Canada Education Savings Program = -$19.0 million
Statutory adjustment to Canada Recovery Benefits and Canada Worker Lockdown Benefit = $18.8 million

7.c. 2024 to 2025 Main estimates overview

Issue

What are the financial highlights for the Department of Employment and Social Development's Main Estimates for the fiscal year ending March 31, 2025?

Key Facts

In Part II of Main Estimates for the fiscal year ending March 31, 2025, the Department of Employment and Social Development presents planned budgetary expenditures of $98.7 billion, which is over $4.5 billion higher than the planned budgetary expenditures of $94.2 billion for the fiscal year ending March 31, 2024.

Response

Planned budgetary expenditures for the fiscal year ending March 31, 2025, totalling $98.7 billion for the Department of Employment and Social Development, are showing a net increase of more than $4.5 billion (approximately 5%) over the Main Estimates of $94.2 billion for the fiscal year ending March 31, 2024.
The increase is primarily attributable to statutory items. The most significant item being an increase of $4.5 billion to the Old Age Security Pension, the Guaranteed Income Supplement and Allowance forecasts resulting from an expected increased number of beneficiaries due to the aging population and expected increases to average monthly amounts paid mainly due to the indexation of benefits.

Background

Table 24: Variance planned budgetary expenditures for the year ending March 31, 2025 compared to the year ending March 31, 2024 (in millions of dollars)
Main Estimates by fiscal year	Vote 1 Operating	Vote 5 Grants and Contributions	Statutory Items	Total
2024‑25 Main Estimates	1,296.7	10,185.6	87,249.9	98,732.2
2023‑24 Main Estimates	1,273.3	9,892.3	82,986.7	94,152.3
Variance	23.4	293.3	4,263.2	4,579.9

Approximately $98,732.2 million in total budgetary funding is anticipated through the Main Estimates ($11,482.3 million in voted appropriations and $87,249.9 million in statutory spending). This excludes funding anticipated through Budget 2024. Over 88% of planned budgetary expenditures will directly benefit Canadians through statutory transfer payment programs, including the Old Age Security (OAS) program. Please note Employment Insurance and Canada Pension Plan benefits and related administrative costs are not included in the Estimates but are reflected in the Departmental Plan.

Overall, the Department of Employment and Social Development's total budgetary authorities for the year ending March 31, 2025 show a net increase of $4,579.9 million, or approximately 4.9%, from the previous year's total Main Estimates of $94,152.3 million.

This increase is primarily attributable to statutory items:

An increase of $4,538.0 million to the OAS pension, Guaranteed Income Supplement (GIS) and Allowances, mainly explained by an expected increased number of OAS pensioners and GIS recipients due to the aging population, and expected increases to average monthly amounts paid, resulting mainly from the indexation of benefits.
An increase of $187.6 million for service delivery to the public on behalf of other government departments under the Department of Employment and Social Development Act, which is mainly due to a new 2‑year agreement with Health Canada for the Canadian Dental Care Plan.
An increase of $40.0 million to Canada Education Savings Grants and to Canada Learning Bonds, mainly due to payments and the number of beneficiaries returning to pre-pandemic levels in 2024.
These increases are offset by the following decreases:
- A decrease of $324.3 million to the Canada Student Financial Assistance Program and Canada Apprentice Loans, mainly due to decreased expected expenses for the Repayment Assistance Plan and alternative payments to non-participating provinces and territories due to the permanent elimination of interests on Canada Student Loans announced in the Fall Economic Statement 2022 and Budget 2023.
- A decrease of $168.4 million to Canada Disability Savings Grants and Bonds, mainly due to a reduction in average contributions from beneficiaries as well as a larger proportion of new Registered Disability Savings Plans being opened by beneficiaries with higher income, and therefore eligible for lower grant amounts and/or ineligible for bonds.
- A decrease of $9.7 million for other items.

Voted grants and contributions (Vote 5) are expected to reach $10,185.6 million by March 31, 2025, an increase of $293.3 million from the Main Estimates for the year ending March 31, 2024 mainly attributable to an increase to payments to provinces and territories for Early Learning and Child Care, partly offset by a decrease in funding related to the Sectoral Workforce Solutions Program, the Apprenticeship Service, Skills for Success, the Youth Employment and Skills Strategy and the Social Finance Fund.

In addition, the Department plans to spend $1,296.7 million in net operating expenditures (Vote 1) in the year ending March 31, 2025, representing an increase of $23.4 million from previous year's total Main Estimates of $1,273.3 million. The increase is mainly related to compensation adjustments for new collective agreements.

Figures in the 2024‑25 Main Estimates include a reduction of $40.5 million for the Refocusing Government Spending exercise announced in the Budget 2023.

Regarding non-budgetary loans, there is a net increase in authorities of $1,048.4 million from the Main Estimates for the year ending March 31, 2024, mainly due increased Canada Student Loans disbursements related to the temporary measure announced in the Budget 2023, which proposed to raise the Canada Student Loan limit from $210 to $300 per week for the 2023‑24 academic year, and to lower Canada Student Loans repayments, mainly due to the economic situation and the permanent elimination of interests accrued, which can allow some borrowers to elect to pay off other debts with higher interest rates.

Key Quotes

Nil

7.d. EWDOL 2024 to 2025 Main estimates placemat

Figure of ESDC Total Planned Spending and Main Estimates: description follows — **Figure 9: ESDC Total Planned Spending and Main Estimates**

Of the $194.2 billion in planned spending for 2024‑25, $176.5 billion (91%) directly benefits Canadians through the following statutory transfer payment programs:

Old Age Security Program = $81.1 billion
Canada Pension Plan = $65.3 billion
Employment Insurance = $25.1 billion
Canada Student Grants and Loans and Canada Apprentice Loans = $3.0 billion
Canada Education Savings Program = $1.3 billion
Canada Disability Savings Program = $0.7 billion
Total = $176.5 billion

Of the $10.2 billion in voted grants and contributions included in ESDC's 2024‑25 Main Estimates, the following programs fall under the responsibility of the Minister of Employment, Workforce Development and Official Languages:

Workforce Development Agreements = $722.0 million
Indigenous Skills and Employment Training Program = $235.5 million
Canadian Apprenticeship Strategy = $194.9 million
Future Skills = $72.7 million
Skills and Partnership Fund = $60.0 million
Enabling Fund for Official Languages Minority Communities = $48.7 million
Foreign Credential Recognition Program = $47.8 million
Supports for Student Learning = $47.8 million
Canada Emergency Response Benefit = $43.3 million
Sectoral Workforce Solutions Program = $29.1 million
Skills for Success = $21.5 million
Community Workforce Development Program = $18.3 million
Canadian Benefit for Parents of Young Victims of Crime = $10.0 million
Canada Emergency Student Benefit = $2.1 million
Support for Labour Market Information in Canada = $1.3 million
SDPP - Official Languages = $1.0 million
Strategic Engagement and Research Program = $0.1 million

Additional information [text not in original document]

Figure of Canadians have access to ESDC services through: description follows — **Figure 10: Canadians have access to ESDC services through**

Service Canada's in-person service network as of December 11, 2023.

As of April 1, 2024, ESDC's total number of Full-Time Equivalents (FTE) is 36,543.

For fiscal year 2024‑25, ESDC has reductions of $40.5 million related to the Refocusing Government Spending exercise. Reductions are as follow:

Grants and Contributions = $24.3 million
Travel and Professional Services = $8.0 million
Operating expenses = $8.2 million

Page details

2024-09-13

HUMA Committee briefing binder: Appearance by the Minister of Employment, Workforce Development and Official Languages - May 6, 2024

On this page

1. Opening remarks

1.a. Minister's opening remarks

2. Background information

2.a. Parliamentary environment scenario note

Overview

Committee proceedings

Parliamentary environment

2.b. Placemat on Canada's socio-economic situation

Canada's socio-economic context: economic context

Canada's socio-economic context: key labour market issues

Canada's socio-economic context: financial and housing pressures

Canada's socio-economic context: demographic & labour market outcomes

Canada's socio-economic context: under-represented groups

Canada's socio-economic context: poverty

Canada's socio-economic context: annex

Definitions

Data sources

2.c. Mandate letter tracker

Overview of Minister Boissonnault's Mandate Letter Commitments - May 6, 2024

Train 5,000 to 50,000 new Personal Support Workers

Train 5,000 to 50,000 new Personal Support Workers - Progress 1

Train 5,000 to 50,000 new Personal Support Workers - Next steps 2

Develop and implement a plan to modernize the EI system for the 21st Century

Develop and implement a plan to modernize the EI system for the 21st Century - Progress 1

Develop and implement a plan to modernize the EI system for the 21st Century - Next steps 2

Implement a new EI benefit for self-employed Canadians

Implement a new EI benefit for self-employed Canadians - Progress 1

Implement a new EI benefit for self-employed Canadians - Next steps 2

Implement a new EI benefit for adoptive parents

Implement a new EI benefit for adoptive parents - Progress 1

Implement a new EI benefit for adoptive parents - Next steps 2

Implement a new Career Insurance Benefit for long-tenured workers

Implement a new Career Insurance Benefit for long-tenured workers - Progress 1

Implement a new Career Insurance Benefit for long-tenured workers - Next steps 2

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes - Progress 1

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes - Next step 2

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five - Progress 1

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of five - Next steps 2

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas - Progress 1

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas - Next steps 2

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills - Progress 1

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills - Next steps 2

Redesign and implement the Canada Training Benefit

Redesign and implement the Canada Training Benefit - Progress 1

Redesign and implement the Canada Training Benefit - Next steps 2

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities - Progress 1

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities - Next steps 2

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers - Progress 1

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers - Next steps 2

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition - Progress 1

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to improve foreign credential recognition - Next steps 2

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers - Progress 1

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers - Next steps 2

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers - Progress 1

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers - Next steps 2

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline - Progress 1

Simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline - Next steps 2

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages - Progress 1

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages - Next steps 2

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition - Progress 1

Supporting the Minister of National Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition - Next steps 2

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters - Progress 1

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters - Next steps 2

Met Commitments

Double the Union Training and Innovation Program and target greater participation from more diverse populations