PACP committee briefing binder: Appearance of the Deputy Minister of Employment and Social Development - June 7, 2022

Preparedness for a Just Transition

Planning the next phase

Just Transition legislation

3.A Committee Context (title not inlcuded in original binder)

3. B Committee overview

Committee members

Name and role

John Williamson (chair)

Party

Conservative

Riding

New Brunswick Southwest

PACP member since

February 2022

Name and role

Jean Yip (vice-chair)

Party

Liberal

Riding

Scarborough—Agincourt

PACP member since

January 2018

Name and role:

Nathalie Sinclair-Desgagné (vice-chair)

Critic for Public Accounts; Pandemic Programs; Economic Development Agencies

Party

Bloc Québécois

Riding

Terrebonne

PACP member since

December 2021

Name and role:

Eric Duncan (Member)

Party

Conservative

Riding

Stormont—Dundas—South Glengarry

PACP member since

February 2022

Name and role

Jeremy Patzer (Member)

Party

Conservative

Riding

Cypress Hill—Grasslands

PACP member since

February 2022

Name and role

Phillip Lawrence-Critic for Federal Economic Development Agency for Eastern, Central and Southern Ontario (Member)

Party

Conservative

Riding

Northumberland—Peterborough South

PACP member since

October 2020

Name and role

Blake Desjarlais-Critic for TBS; Diversity and Inclusion; Youth; Sport and PSE (Member)

Party

New Democratic Party

Riding

Edmonton Greisbach

PACP member since

December 2021

Name and role

Valerie Bradford (Member)

Party

Liberal

Riding

Kitchener South – Hespeler

PACP member since

December 2021

Name and role

Han Dong (Member)

Party

Liberal

Riding

Don Valley North

PACP member since

December 2021

Name and role

Peter Fragiskatos-Parliamentary Secretary National Revenue (Member)

Party

Liberal

Riding

London North Centre

PACP member since

December 2021

Name and role

(Member) Brenda Shanahan

Party

Liberal

Riding

Châteauguay—Lacolle

PACP member since

December 2021; and Jan 2016 – Jan 2018

Bios of the committee members

John Williamson (New Brunswick Southwest) - Conservative, Chair

• Elected as MP for New Brunswick Southwest in 2011, he was then defeated in 2015 and re-elected in 2019 and 2021
• Currently also serves as a Member of the Liaison Committee
• Previously served on many committees, including PACP for a brief time in 2013
• Prior to his election, M. Williamson occupied different positions. He was an editorial writer for the National Post from 1998 to 2001, then joined the Canadian Taxpayers Federation until 2008. In 2009, he was hired by Stephen Harper as director of communications in the PMO

Jean Yip (Scarborough - Agincourt)-Liberal, First Vice-Chair

• Elected as MP for Scarborough—Agincourt in a by-election on December 11, 2017, and re-elected in 2019 and 2021
• Has served on Public Accounts (since 2018), as well as Government Operations and Canada-China committees in the past
• Before her election, Ms. Yip was an insurance underwriter and constituency assistant

Nathalie Sinclair-Desgagné (Terrebonne)-Bloc Québécois, Second vice-chair

• Elected as MP for Terrebonne in the 2021 federal election
• BQ Critic for Public Accounts; Pandemic Programs; and Federal Economic Development Agencies
• Worked at the European Investment Bank and at PWC London
• Return to Quebec in 2017 to pursue a career in the Quebec business world

Eric Duncan (Stormont-Dundas-South Glengarry)-Conservative, Member

• Elected as MP for Stormont-Dundas-South Glengarry in 2019, and re-elected in 2021
• Vice-Chair of Procedure and House Affairs Committee
• Has served on COVID-19 Pandemic, Procedure and House Affairs and Library of Parliament committees in the past
• Prior to his election, Mr. Duncan was one of the youngest elected officials in Canadian History as a municipal Counsellor in North Dundas at the age of 18, and was elected mayor at the age of 22 (from 2010 to 2018)

Jeremy Patzer (Cypress Hills-Grasslands)-Conservative, Member

• Elected as MP for Cypress Hills-Grasslands in 2019, and re-elected in 2021
• Member of the Standing Committee on International Trade
• Has served on Natural Resources, Industry, Science and Technology and COVID-19 Pandemic committees in the past
• Prior to his election, Mr. Patzer worked in the telecommunications industry for 10 years

Phillip Lawrence (Northumberland—Peterborough South)-Conservative, Member

• Elected as MP for Northumberland—Peterborough South in 2019, and re-elected in 2021
• CPC Critic for the Federal Economic Development Agency for Eastern, Central and Southern Ontario
• Has served on Public Accounts (since 2020), as well as the Justice committees in the past
• Prior to his election, Mr. Lawrence received his BA from Brock University in Political Science, he attended Osgoode Hall Law School and the Schulich School of business to obtain his law degree and MBA, and volunteered at the Financial Planning Standards Council

Blake Desjarlais (Edmonton Greisbach)-NDP, Member

• Elected as MP for Edmonton Greisbach in 2021
• NDP Critic for Treasury Board; Diversity and Inclusion; Youth; Sport; and Post-secondary Education
• First openly 2-Spirit person and Alberta’s only Indigenous Member of Parliament

Valerie Bradford (Kitchener South – Hespeler)-Liberal, Member

• Elected as MP for Kitchener South – Hespeler in 2021
• Also sits on the Science and Research committee
• Prior to her election, Ms. Bradford worked as an economic development professional for the City of Kitchener

Han Dong (Don Valley North)-Liberal, Member

• Elected as MP for Don Valley North in 2019, and re-elected in 2021
• Also sits on the Industry and Technology committee
• Has served on the Ethics, and Human Resources committees in the past
• Prior to his election, Mr. Dong worked with Toronto-based high-tech company dedicated to building safer communities and served as the leader of the Chinatown Gateway Committee established by Mayor John Tory

Peter Fragiskatos (London North Centre)-Liberal, Member, Parliamentary Secretary to the Minister of National Revenue

• Elected as MP for London North Centre in 2015, and re-elected in 2019 and 2021
• Serves as Parliamentary Secretary to the Minister of National Revenue
• Has served on the Finance, Canada-China, Human Resources, Public Safety, and Foreign Affairs committees in the past
• Served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP)
• Prior to his election, Mr. Fragiskatos was a political science professor at Huron University College and King’s University College, as well as a frequent media commentator on international issues

Brenda Shanahan (Châteauguay—Lacolle)-Liberal, Member

• Elected as MP for Châteauguay—Lacolle in 2015, and re-elected in 2019 and 2021
• Has served on Public Accounts (2016 to 2018), as well as Ethics, Government Operations, and MAID committees in the past
• Has served as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP)
• Prior to her election, Ms. Shanahan was a banker and social worker, who has also been involved in a number of organizations such as Amnesty International and the Canadian Federation of University Women

Issue

The audit report on the progress made by the federal government towards a ‘Just Transition to a Low Carbon Economy’ from January 2018 to September 2021 found that the Government did not adequately support workers and communities affected by the coal phase out and is not prepared for the transition.

The purpose of this Standing Committee on Public Accounts Meeting to be held on June 7, 2022 is to discuss the federal action plans in response to the audit’s recommendations.

Background

Canada has committed to reducing greenhouse gas emissions to net zero by 2050. Achieving this ambitious target will require large scale changes and climate actions, which will affect the economy and the labour market in significant ways. This is referred to as a ‘Just Transition’.

As a first step, the Government committed to the phase out of traditional coal fired electricity across the country by 2030. To support workers through this transition, Budget 2019 committed $185 million for worker transition centres (funding sunsets 2023) and an infrastructure fund (funding sunsets 2025), to be delivered by Atlantic Canada Opportunities Agency (ACOA) and Prairies Economic Development Canada (PrairiesCan)

Moving forward, there is a commitment in Minister Qualtrough’s mandate letter to support the whole of government effort to reduce emissions, create clean jobs and address the climate related challenges communities are already facing. More specifically:

• support the Minister of Natural Resources and the Minister of Labour in moving forward with legislation to achieve a Just Transition
• launch a Clean Jobs Training Centre, and
• address gaps in training and upskilling in the battery industry

Key facts

The Commissioner of the Environment and Sustainable Development’s audit report on the progress made towards a Just Transition determined the government’s actions were insufficient and recommends to:

• establish a Just Transition governance structure, strategy, stakeholder engagement plan, and various measuring and monitoring practices to report on phases of the transition (including the coal phase out), and
• integrate Just Transition principles in the design of new federal programs and when leveraging existing mechanisms to support affected workers and communities

A Deputy Minister approved Management response where ESDC agreed with all 5 recommendations was developed with Natural Resources Canada (NRCan) and submitted to the Office of the Auditor General on March 25, 2022

The audit was tabled in parliament on April 26, 2022. Following this, the report was published online along with the Management responses from implicated federal parties

Each department’s action plan will be tabled in advance of this meeting and provides key milestones, expected timelines, and a description of the final expected outcome and results in response to the audit’s recommendations

Key messages

Does ESDC agree with all the findings and recommendations of the OAG report?

Yes, ESDC agrees with the audit and is well positioned to respond to the recommendations. The department’s action plan outlines the work underway to support workers affected by the transition to a low carbon economy. This includes:

• developing Just Transition legislation ESDC is supporting NRCan with the public consultations on the Just Transition legislation. These discussions will inform the next steps for a comprehensive Just Transition strategy
• funding projects to build talent for the clean economy ESDC is leveraging existing program flexibility to support priorities such as the transition to a low carbon economy. The following skills programs will prioritize projects that support the green economy:
  • Sectoral Workforce Solutions
  • Union Training and Innovation Program
  • Community Workforce Development Program
  • Skill and Partnership Fund
• launching a Clean Jobs Training Centre ESDC is leveraging the Just Transition consultations to seek stakeholders’ views on the proposed Clean Jobs Training Centre

We will continue to work closely with our federal colleagues to help ensure Canadians will benefit from a transition to a low carbon economy.

Issue

The audit report on the progress made by the federal government towards a ‘Just Transition to a Low Carbon Economy’ from January 2018 to September 2021 found that the Government did not adequately support workers and communities affected by the coal phase out and is not prepared for the transition.

The purpose of this Standing Committee on Public Accounts Meeting to be held on June 7, 2022 is to discuss the federal action plans in response to the audit’s recommendations.

Background

Canada has committed to reducing greenhouse gas emissions to net zero by 2050. Achieving this ambitious target will require large scale changes and climate actions, which will affect the economy and the labour market in significant ways. This is referred to as a ‘Just Transition’.

As a first step, the Government committed to the phase out of traditional coal fired electricity across the country by 2030. To support workers through this transition, Budget 2019 committed $185 million for worker transition centres (funding sunsets 2023) and an infrastructure fund (funding sunsets 2025), to be delivered by Atlantic Canada Opportunities Agency (ACOA) and Prairies Economic Development Canada (PrairiesCan).

Moving forward, there is a commitment in Minister Qualtrough’s mandate letter to support the whole of government effort to reduce emissions, create clean jobs and address the climate related challenges communities are already facing. More specifically:

• support the Minister of Natural Resources and the Minister of Labour in moving forward with legislation to achieve a Just Transition
• launch a Clean Jobs Training Centre, and
• address gaps in training and upskilling in the battery industry

Key facts

The Commissioner of the Environment and Sustainable Development’s audit report on the progress made towards a Just Transition determined the government’s actions were insufficient and recommends to:

• establish a Just Transition governance structure, strategy, stakeholder engagement plan, and various measuring and monitoring practices to report on phases of the transition (including the coal phase out), and
• integrate Just Transition principles in the design of new federal programs and when leveraging existing mechanisms to support affected workers and communities

A Deputy Minister approved Management response where ESDC agreed with all 5 recommendations was developed with Natural Resources Canada (NRCan) and submitted to the Office of the Auditor General on March 25, 2022.

The audit was tabled in parliament on April 26, 2022. Following this, the report was published online along with the Management responses from implicated federal parties.

Each department’s action plan will be tabled in advance of this meeting and provides key milestones, expected timelines, and a description of the final expected outcome and results in response to the audit’s recommendations.

Key messages

Does ESDC agree with all the findings and recommendations of the OAG report?

Yes, ESDC agrees with the audit and is well positioned to respond to the recommendations. The department’s action plan outlines the work underway to support workers affected by the transition to a low carbon economy. This includes:

• developing Just Transition legislation ESDC is supporting NRCan with the public consultations on the Just Transition legislation. These discussions will inform the next steps for a comprehensive Just Transition strategy
• funding projects to build talent for the clean economy ESDC is leveraging existing program flexibility to support priorities such as the transition to a low carbon economy. The following skills programs will prioritize projects that support the green economy:
  • Sectoral Workforce Solutions
  • Union Training and Innovation Program
  • Community Workforce Development Program
  • Skill and Partnership Fund
• launching a Clean Jobs Training Centre ESDC is leveraging the Just Transition consultations to seek stakeholders’ views on the proposed Clean Jobs Training Centre

We will continue to work closely with our federal colleagues to help ensure Canadians will benefit from a transition to a low carbon economy.

Issue

It is expected that there will be questions relating to the Coal Task Force Recommendations. While NRCan will be best placed to answer questions on the majority of the recommendations, you may be asked questions on the audit’s findings that Employment and Social Development Canada (ESDC) and the regional development agencies used existing mechanisms to support workers and communities affected by the coal phase out, but fell short of a Just Transition.

Background

The Task Force on the Just Transition for Canadian Coal Power Workers provided 10 recommendations to the federal government (see Annex A).

In response to these recommendations, Budget 2019 committed $185 million for worker transition centres and an infrastructure fund (addressing recommendations 4 and 8), as well as to exploring new ways to protect wages and pensions.

The government did not commit to implementing the remaining recommendations.

In the audit report, the Commissioner outlined how the government could have met the remaining recommendations. The following recommendations implicate ESDC:

• Recommendation 2 Include provisions for Just Transition in federal environmental and labour legislation and regulations, as well as relevant intergovernmental agreements:
  • the audit found that ESDC could work with provinces to support affected workers under labour market transfer agreements
• Recommendation 5 Create a pension bridging program for workers who will retire earlier than planned due to the coal phase out:
  • the audit found no evidence that the government explored new ways to protect wages and pensions
• Recommendation 6 Create a detailed and publicly available inventory with labour market information pertaining to coal workers, such as skills profiles, demographics, locations, and current and potential employers:
  • the audit found no federal commitment was made
• Recommendation 7 Create a comprehensive funding program for workers staying in the labour market to address their needs across the stages of securing a new job, including income support, education and skills building, re‑employment, and mobility:
  • the audit found that in lieu of a comprehensive funding program, ESDC relied on Employment Insurance benefits to support affected workers, which was not sufficient to meet their needs. The department had also not delivered the Employment Insurance Training Support Benefit

Key facts

As a federal department, ESDC’s programs are broad and flexible by design, to expand their reach to as many Canadians as possible in a diverse labour market. The department was not directed to tailor employment programming to coal workers.

Since ESDC does not have programs tailored to coal workers and does not collect or track disaggregated data on topics as granular as coal workers (less than 10,000 workers), recommendations concerning the monitoring of the coal phase out falls outside the mandate of ESDC.

On the topic of pensions, ESDC has not been mandated to create a pension bridging program and therefore did not implement this recommendation. Alberta has put in place a pension bridging program for coal power workers.

Key messages

Why did you not focus on a tailored approach for coal workers instead of relying on existing programs?

ESDC’s federal programming was created with the intention of having flexibility to support a variety of workers across the country.

ESDC is supporting a Just Transition through a suite of flexible skills programming that is prioritizing projects to support the green economy.

Why did the Government not implement a pension bridging program as recommended by the Task Force?

ESDC has not been mandated to create a pension bridging program, and therefore did not implement this recommendation.

How is ESDC offering retraining and employment opportunities to workers affected by the transition?

ESDC has a wide range of program to support workers affected by the transition. For example, the following skills programs will prioritize projects that support the green economy:

• Sectoral Workforce Solutions Program to help key economic sectors implement solutions to address current and emerging workforce needs
• Union Training and Innovation Program to support union based apprenticeship training in the Red Seal trades and provide investments in training equipment and materials
• Community Workforce Development Program a pilot that will help communities with local workforce development plans that identify high growth areas and connect employers and training providers to upskill and reskill jobseekers and workers to fill emerging jobs
• Skill and Partnership Fund a project based fund that supports partnerships between Indigenous organizations and industry employers to provide skills training for Indigenous people

Further, ESDC is working on the mandate commitment to launch a Clean Jobs Training Centre to help workers across key sectors and occupations improve or gain new skills in order to be on the leading edge of the zero carbon industry.

The Department is consulting with external stakeholders on the Centre’s design and function via Natural Resources Canada’s Just Transition legislation consultations.

Annex A

Recommendation 1: Develop, communicate, implement, monitor, evaluate, and publicly report on a Just Transition plan for the coal phase out, championed by a lead minister to oversee and report on progress.

Recommendation 2: Include provisions for Just Transition in federal environmental and labour legislation and regulations, as well as relevant intergovernmental agreements.

Recommendation 3: Establish a targeted, long term research fund for studying the impact of the coal phase out and the transition to a low carbon economy.

Recommendation 4: Fund the establishment and operation of locally driven transition centres in affected communities.

Recommendation 5: Create a pension bridging program for workers who will retire earlier than planned due to the coal phase out.

Recommendation 6: Create a detailed and publicly available inventory with labour market information pertaining to coal workers, such as skills profiles, demographics, locations, and current and potential employers.

Recommendation 7: Create a comprehensive funding program for workers staying in the labour market to address their needs across the stages of securing a new job, including income support, education and skills building, re employment, and mobility.

Recommendation 8: Identify, prioritize, and fund local infrastructure projects in affected communities.

Recommendation 9: Establish a dedicated, comprehensive, inclusive, and flexible Just Transition funding program for affected communities.

Recommendation 10: Meet directly with affected communities to learn about their local priorities and to connect them with federal programs that could support their goals.

Issue

The Audit Report highlights that the gender‑based analysis plus (GBA Plus) undertaken for the 2 coal‑transition programs did not reflect the diversity of the workers. While Natural Resources Canada (NRCan) is best placed to answer questions on this issue, there may be an opportunity for ESDC to highlight the significant focus placed on supporting underrepresented groups through our programming.

Background

With the support of regional development agencies, the Minister of Natural Resources is responsible for reporting on the 2 coal transition programs, which aim to support skills development and economic diversification for coal workers and communities affected by the accelerated federal phase out of coal fired electricity.

The Audit report finds that the GBA Plus analysis undertaken by the 2 programs did not consider the diversity of the coal worker population, nor the indirect effects of a coal transition on other members of the community.

Key facts

People who are marginalized through social, economic, cultural, political, or other factors are disproportionately vulnerable to the risks posed by climate change. This is why climate action is expected to benefit Canadians, particularly marginalized groups, by helping to alleviate the negative impacts of climate change.

ESDC plays a crucial role in supporting underrepresented groups and ensuring that principles of diversity and inclusion are embedded in skills and training programs.

The Department ensures that skills and employment policies and programs are informed by and developed though an intersectional lens, applying frameworks such as GBA Plus in decision making.

Key messages

Why gender‑based analysis plus for the 2 coal‑transition programs did not reflect the diversity of the workers?

As the 2 coal transition programs do not fall under ESDC’s purview, NRCan is best placed to respond to your question.

However, I will take this opportunity to highlight the crucial role that ESDC plays in supporting underrepresented groups, including women, newcomers, persons with disabilities, Indigenous peoples, and racialized Canadians.

Recognizing the additional barriers to full and equal participation that these groups face, and their heightened vulnerability in the face of uncertainty, ESDC dedicates significant investments to support underrepresented groups’ access to skills, training and employment opportunities.

For instance, the new Sectoral Workforce Solutions Program (SWSP) announced in Budget 2021 helps key sectors of the economy implement solutions to address their current and emerging workforce needs. With funding of $960 million over 3 years, a key feature of the program is to support equity deserving groups by promoting a diverse and inclusive workforce and providing wrap around supports such as transportation, accommodations, and childcare costs to reduce barriers to participation.

The Apprenticeship Service helps promote careers in the skilled trades and will invest $470 million over 3 years, beginning in 2021 to 2022, to provide targeted support to employers who hire apprentices. An additional $5,000 financial incentive is provided to eligible employers who hire the apprentice from an equity deserving group.

Lastly, the Community Workforce Development Program will test innovative approaches to help supports communities recover and improve resiliency through workforce planning and skills training, with a focus on addressing the needs of underrepresented groups.

The pilot program will support communities to develop local plans that identify high growth areas and connect employers with training providers to upskill and reskill jobseekers to fill current and emerging jobs. Through local economic diversification efforts, communities will build resiliency contributing to sustainability.

How are underrepresented groups affected by the transition?

People who are marginalized through social, economic, cultural, political, or other factors are disproportionately vulnerable to the risks posed by climate change. This is why climate action is expected to benefit Canadians, particularly marginalized groups, by helping to alleviate the negative impacts of climate change.

At the same time, climate action and the transition to a low carbon economy will have uneven impacts and risks on Canadian sectors, communities and individuals, leaving certain segments of the Canadian economy and workforce deeply vulnerable.

Dozens of communities across Canada are dependent on sectors that face disruption in light of the transition to a low carbon economy.

For example, workers with lower education levels or limited skills could face greater challenges in replacing lost jobs. Indigenous Peoples and visible minorities, who are overrepresented in many transition vulnerable sectors, may be more vulnerable to market disruptions.^{Endnote 1}

Therefore, it is necessary to be proactive in developing talent for emerging industries and help workers in declining sectors to retrain for new jobs. Workers will need support transitioning to new, growing areas of the economy.

What is ESDC doing to support diversity and inclusion?

ESDC continues to demonstrate its unwavering commitment to diversity and inclusion. We recognize that skills, training and capacity development efforts must incorporate approaches to reduce barriers that prevent or discourage the full participation of all Canadians alike.

Diversity and inclusion is and will continue to be a major pillar of our strategy, through specific targeted programs and focused components of larger programs.

To this end, the Women’s Employment Readiness Pilot Program funds organizations to provide and test pre employment and skills development supports for women in 4 groups: racialized and/or Indigenous women; women with disabilities; women from the LGBTQ2 community; and women with prolonged labour force detachment.

Up to 75% of funding is for projects that include testing models to improve workplace inclusivity for 1 or more of the target groups. The results of the pilot program will be used to inform systemic changes to skills and employment programming to ultimately improve labour market outcomes for women more broadly.

The Opportunities Fund for Persons with Disabilities (OF) is a $40 million per year contributions program that assists persons with disabilities prepare for, obtain and maintain employment or self employment, and progress in their careers. The OF also provides supports to employers to help them create more inclusive and accessible workplaces.

Budget 2022 provided $272.6 million in new funding over 5 years, to support the implementation of an employment strategy for persons with disabilities through the OF. Of this funding, $20 million will be allocated to the Ready, Willing and Able program to help persons with Autism Spectrum Disorder or intellectual disabilities find employment.

ESDC also has 2 Indigenous labour market programs that aim to reduce the skills and employment gaps that exist between Indigenous and non-Indigenous peoples.

The Indigenous Skills and Employment Training (ISET) Program is a distinctions based labour market program designed to support First Nations, Inuit, Metis and Urban/Non affiliated Indigenous peoples improve their skills and meet their long term career goals. Between the launch of the ISET in April 2019 and January 2022, 104,223 clients were served, with 40,459 finding employment and 12,283 returning to school.

The Skills and Partnership Fund (SPF) is a project based program that funds partnerships between Indigenous organizations and industry employers to provide skills training for Indigenous peoples linked to economic opportunities at the local, regional and national level. The SPF plays a key role in directly linking Indigenous peoples to specific jobs and improving their employment outcomes.

There have been a total of 4 calls for proposals since SPF was created in 2010, leading to 130 funded projects. Between April 2010 and January 2022, 46,429 clients were served, with 18,937 finding employment and 2,832 returning to school. A fifth call for proposals with a specific focus on 5 priority sectors (for example, the Green Economy, Information and Communications Technology, Infrastructure, the Blue Economy, and Indigenous Public Sector) closed on May 9th, with projects expected to start in the fall of 2022.

With a focus on supporting the upskilling and reskilling of underrepresented groups, the Future Skills Centre funded by the Government of Canada, announced 64 innovation projects as part of a $32 million investment to provide practical solutions for thousands of workers and employers impacted by the COVID 19 pandemic across Canada.

For example, 1 project is the ELITE program for Black youth. This project provides Black youth aged 15 to 22 years old with access to hands on learning and paid work integrated training in science, technology, engineering, and mathematics fields and entrepreneurship.

Actions such as these help create the foundation needed to make workplaces accessible and eliminate barriers to labour market participation.

Issue

It is expected that you may be asked questions on the Government’s plan to address labour shortages.

Key facts

As of March 2022, there were more than 1 million job vacancies across Canada, which is still significantly higher than pre pandemic levels.

62% of current vacancies are in jobs that require high school or less. Many of these vacancies are expected to be cyclical and be filled in a post COVID economy. For instance, the number of vacancies in accommodation and food services is now half what it was last summer.

Other shortages are a result of structural factors, such as our aging population and rising skills requirements. This is increasing job vacancies in key sectors such as construction and professional, scientific and technical services as well as healthcare.

These vacancies will take longer to fill given the scarcity of such highly qualified workers among the unemployed and the need for specialized training.

Small and medium sized enterprises (SMEs) were severely impacted by the pandemic and recorded the largest decline in the number of employees in spring 2020.

Key messages

What is the current situation with regards to labour shortages?

Labour market pressures are affecting practically all sectors of the economy and most regions of the country. Automation, digital innovation, and a transition to a low carbon economy are also driving key shifts that present opportunities for all Canadians.

There were 1 million job vacancies reported in Canada in March 2022. This is almost double the number of vacancies prior to the Covid19 Pandemic. Sectors with the highest numbers of job vacancies are: health care and social assistance (154,540 vacancies), accommodation and food services (158,055), manufacturing (87,505), retail trade (109,180), professional, scientific and technical services (69,955) and construction (81,870).

In the medium term, we know that demographic shifts that are rooted in an ageing population and expected retirements are going to put additional pressure on the labour market. Population ageing and declining participation will exacerbate shortages over the long term. Based on current projections, there could be a 1.4% drop in labour market participation by 2028. Without increasing the labour market participation of under represented groups, the current shortages may become entrenched.

The need for new skills, including digital skills, to support the green economy have never been so strong. For example, jobs to support the low carbon economy are expected to increase at 3 times the rate of total employment.

As we transition to a low carbon economy, ensuring a Just Transition for workers in carbon intensive sectors such as oil and gas to other sectors will be critical to ensure that we continue to leverage the skills and contributions of those workers. Wide spread labour shortages means that we need to leverage existing and new sources of labour.

There are 3 potential sources of labour supply in Canada:

1. new entrants to the labour market, which are primarily youth and immigrants
2. groups under represented in the labour market, and 
3. individuals already working who need upskilling and reskilling to adapt and stay in the labour force longer

To address the labour shortages facing the Canadian economy it will be necessary to maximize all 3 sources of labour.

Youth are our biggest source of new entrants to the labour market with 4.9 million young job seekers expected to enter the workforce by 2028 and many face additional barriers, including Indigenous youth, and youth with disabilities.

The next source of new labour supply is from immigration. However, accessing this supply of labour will require addressing barriers many newcomers face to securing jobs, including English or French proficiency, difficulties obtaining recognition of foreign credentials and a lack of Canadian work experience.

• Canada is expected to welcome 431,600 new permanent residents in 2022, 447,000 in 2023 and 451,000 in 2024

Approximately 100,000 temporary foreign workers enter Canada every year. Recent changes allow employers to hire up to 30% of their workforce through the TFW Program for low wage positions for 1 year in sectors experiencing significant shortages (for example Accommodation and Food Services). Other employers will be allowed to hire up to 20% of their workforce for low wage positions until further notice, an increase from the former 10% cap for many employers. Pressure to fill positions in lower wage positions is likely to continue as labour shortages become entrenched.

Temporary foreign workers play a critical role in filling jobs in the agriculture, food and fish processing sectors, in fact 80% are working in agriculture, but it is important to underscore that they make up only 0.5% of the labour force.

Another source of supply is under represented groups. Increasing the participation rate of women, Indigenous People, persons with disabilities and visible minorities in the workplace could add over 2 million new workers into the labour market.

Finally, 3/4 of the labour force of 2028 is already working. This is critical context, as labour shortages is not a purely numbers issue, but also a skills mismatch issue.

As the skills required for jobs continues to rise with the introduction of new technologies, most workers will need to upgrade their skills. As some jobs disappear, it will be important for workers to have access to training to upskill and reskill so they can fill new and emerging opportunities in other sectors.

What is the Government’s plan to address labour shortages?

Recognizing provincial and territorial jurisdiction in this field, the federal government is acting as a convenor to bring partners together on initiatives to help address labour shortages in the economy.

To this end, the Government of Canada has taken concrete measures to help reduce shortages and support SMEs. To help ensure employers can quickly bring in workers to fill short-term labour market gaps:

• Budget 2022 proposes to introduce a Trusted Employer Model to reduce red tape for employers hiring temporary foreign workers ($29.3 million), a new foreign labour program for fish and agriculture ($48.2 million), improvements to employer inspections ($14.6 million), and increased capacities for processing employer applications ($64.6 million)
• Budget 2022 also allocates $115 million over 5 years, with $30 million ongoing, to expand the Foreign Credential Recognition Program and help up to 11,000 skilled newcomers, including internationally trained health care professionals, per year get their credentials recognized and find work in their field

Time permitting: This builds on other recent investments that will help address the labour market shortage issue over the longer term by making the following investments:

• $720 million to help youth and students build job skills and connect with employers through additional funding for the Youth Employment and Skills Strategy, the Student Work Placement Program, and the Canada Summer Jobs program
• $470 million over 3 years to establish a new Apprenticeship Service to help up to 55,000 first year apprentices in eligible Red Seal trades connect with opportunities at SMEs and increase diversity in the trades
• $84.2 million over 4 years to double funding for the Union Training and Innovation Program and help 3,500 apprentices from underrepresented groups per year succeed in careers in the skilled trades through mentorship, career services, and job matching
• $298 million over 3 years for a new Skills for Success program that helps Canadians improve their foundational and transferable skills
• $960 million over 3 years, for a new Sectoral Workforce Solutions Program to assist key sectors by funding industry driven activities that assist workers through training and reskilling, and help SMEs attract and retain a skilled workforce
• $55 million over 3 years for a Community Workforce Development Program to support communities in developing plans that identify high growth areas and connect employers and training providers to upskill and reskill jobseekers and workers to fill in demand jobs

Issue

It is expected that questions will arise on the transition to a low carbon economy as it will have uneven labour market impacts across sectors, occupations, and regions. ESDC is the lead on labour market issues relating to a Just Transition.

Background

The low carbon economy is projected to grow faster than the rest of the economy over the next decade, and shortages of workers with the right set of skills and qualifications are expected in transportation, natural resources, and construction.

Employment and Social Development Canada (ESDC) has a large suite of skills and employment programming and we are currently exploring how these programs can also be leveraged to support a transition to a low carbon economy.

For example, the Minister of Employment Workforce Development and Disability Inclusion (EWDDI) has a mandate commitment to launch a Clean Jobs Training Centre (see Hot Issue 5.D), and a Budget 2021 commitment to implement the Sectoral Workforce Solutions Program (see Hot Issue 5.C).

ESDC’s workforce development efforts will also help minimize the negative impacts of decarbonisation on workers, vulnerable people, and their communities, support a Just Transition, and support a more inclusive and diverse workforce for the future.

Key facts

In April 2021, the Government committed to reducing greenhouse gas emissions by 40% to 45% below 2005 levels by 2030, and net zero emissions by 2050.

Clean energy jobs will grow almost 50%, while jobs in fossil fuels are set to drop 9%, with 208,700 more jobs in clean energy in 2030, and 125,800 fewer jobs in fossil fuels. (Clean Energy Canada, 2021)

In 2030, the following clean energy sub sectors will be important sources of employment: clean energy supply (for example wind, solar, hydro, bioenergy); clean buildings (for example building envelopes; HVAC and building control systems; high efficiency appliances and lighting) and clean transport (plug in electric vehicles, public transit and rail, hydrogen consumption technologies). (Clean Energy Canada, 2021)

According to ECO Canada, job growth and retirement will account for 173,000 net environmental job openings by 2025, equivalent to 25% of 2020 employment levels^{Endnote 2}.

Key messages

What sectors will have a lower demand for labour following the transition? What sectors will see an increase in the demand for labour?

It is difficult to predict the impacts of the transition to a low carbon economy on the scope and pace of sectoral employment. Many factors such as industry investments, government actions and technology developments, will affect job numbers.

However, we know that the low carbon economy is projected to grow faster than the rest of the economy over the next decade, and shortages of workers with the right set of skills and qualifications are expected in transportation, natural resources, and construction.

We also expect that growth in Canada’s clean energy sector will continue to accelerate and clean energy supply, clean buildings, and clean transport, will be important sources of employment.

• If pressed:
  • clean energy supply (for example wind, solar, hydro, bioenergy);
  • clean buildings (for example heating ventilation and air conditioning, high efficiency appliances and lighting), and
  • clean transport (plug in electric vehicles, including battery supply chain, public transit and rail, hydrogen consumption technologies)

Innovation in the green economy will require a core workforce with the latest training in emerging technologies and/or a different mix of skills and knowledge, which may cumulate in new green occupations.

ESDC is working with other government departments to study the impacts of climate change on sectors and occupations.

Issue

It is expected that questions will arise on addressing gaps in skills and training in the context of the transition.

Background

The transition to a green economy will require a core workforce with the latest training in emerging technologies and/or a different mix of skills and knowledge, which may cumulate in new green occupations.

Skills requirements for “green” jobs will vary, necessitating innovative, agile, and nimble training approaches.

• Some jobs will require extensive green skills or knowledge (in other words environmental impact assessor or a sustainability manager at a company)
• Some jobs will require workers to have some green skills to perform their job (in other words an accountant at an environmental firm of a heating, ventilation and air conditioning sales representative)
• Some green jobs will not require workers with green skills to perform their jobs (in other words janitor or driver working for a solar energy company)

The right supports for training and upskilling are critical to a Just Transition, particularly when success will be measured by the Government’s ability to provide support for workers at risk of being left behind.

Key facts

Training and upskilling are shared areas of responsibility with provinces and territories (PT). ESDC works collaboratively with PT counterparts to help ensure the right combination of supports are in place to support workers.

ESDC implements programs that respond to current and emerging labour market needs including those stemming from a transition to a low carbon economy such as (see backgrounder 7.B for additional details):

• the Sectoral Workforce Solutions Program (SWSP) helps key economic sectors implement solutions to address current and emerging workforce needs
• the Skills and Partnership Fund (SPF) is a project based fund that supports partnerships between Indigenous organizations and industry employers to provide skills training for Indigenous peoples
• the Indigenous Skills and Employment Training (ISET) Program supports skills and job training to prepare Indigenous people for available jobs
• the Union Training and Innovation Program (UTIP) provides union based apprenticeship training, innovation and enhanced partnerships in the Red Seal trades, as well as investments in training equipment and materials
• the Community Workforce Development Program (CWDP) will help communities develop local workforce development plans that identify high growth areas
• the Canadian Apprenticeship Strategy aims to increase the impact of the Government’s current suite of apprenticeship supports and help address ongoing challenges (such as increasing diversity in the trades)
• the Red Seal Program sets common standards to assess the skills of tradespeople across Canada
• the Future Skills Centre (FSC) (an independent organization supported by ESDC) has engaged with some provincial and territorial governments to focus on transitions within existing sectors that are being disrupted or will be soon, including oil, gas and coal
• the Employment Insurance (EI) program provides temporary income support to unemployed workers while they look for employment or to upgrade their skills

The Minister also has a mandate commitment to launch a Clean Jobs Training Centre to help workers across key sectors and occupations, improve or gain new skills in order to be on the leading edge of the zero carbon industry.

Key messages

How does ESDC support workers getting the skills they need to adapt and succeed in a low carbon economy?

ESDC has a large suite of skills and employment programming and we are currently exploring how these programs can also be leveraged to support a transition to a low carbon economy. For example:

• the Sectoral Workforce Solutions Program, which helps key sectors of the economy implement solutions to address workforce needs, including training and upskilling initiatives to build talent for the low carbon economy
• the new Community Workforce Development Program, which plans to support communities in developing local plans that identify high growth areas and connect employers with training providers to upskill and reskill jobseekers, with a priority focus on decarbonisation
• the Union Training and Innovation Program, which aims to improve the quality of training in the skilled trades and included a priority in their last call for proposals for equipment and material purchases that support the development of environmental skills in the Red Seal trades

In addition, the Labour Market Development Agreements and the Workforce Development Agreements with provinces and territories are the Government of Canada’s largest investment in training at $3 billion annually. Each year, more than a million training and employment supports are offered to individuals and employers under these agreements including Canadian workers looking to re enter the workforce, particularly those in hard hit sectors.

Most recently, the Government of Canada committed to launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills so as to be on the leading edge of the zero carbon industry.

ESDC will continue to work with key stakeholders including other government departments and provincial and territorial partners to identify emerging areas where skills and training support can help ensure Canada has the workforce it needs to succeed in the low carbon economy, and better support skilled workers as they navigate through a Just Transition.

Issue

This note provides key information on the new Sectoral Workforce Solutions Program (SWSP) and its contribution to a Just Transition.

Background

The audit recommended the federal government establish an approach to integrate Just Transition principles into federal programs. This could include the design of new federal programs to support a Just Transition to a low carbon economy that meet the diverse needs of affected workers and communities.

The Management response identifies the SWSP as 1 of ESDC’s existing Programs that could support workers affected by the transition to a low carbon economy.

Key facts

Budget 2021 announced $960 million over 3 years for the SWSP to help key sectors of the economy implement solutions to address their current and emerging workforce needs.

The Program places priority on building talent for the low carbon economy, and will fund sectoral projects that support workers and employers through a wide range of activities such as:

• training and reskilling to help workers gain new skills to meet the needs of employers and transition to in demand jobs in key sectors
• helping employers, in particular small and medium sized businesses, attract and retain a skilled and innovative workforce

The SWSP just closed a Call for Proposals on March 18, 2022, which focused on building talent for the clean economy; investing in the health sector; and, supporting demand driven solutions for sectors hardest hit by the pandemic and those key to recovery. Projects should start as early as summer 2022.

Key messages

How will the Sectoral Workforce Solutions Program support Canadians in obtaining the skills they need for a Just Transition?

The new Sectoral Workforce Solutions Program is well placed to contribute to a Just Transition. It supports key sectors of the economy, including sectors linked to the low carbon economy, implement solutions to address their current and emerging workforce needs, through training and upskilling initiatives. It will also help workers transition from sectors in decline to high growth sectors.

The Program funds sectoral projects that support workers and employers through a wide range of activities:

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

The Program will help thousands of employers and connect Canadians with the training they need to access good jobs in sectors where employers are looking for skilled workers.

It will also support equity deserving groups by promoting a diverse and inclusive workforce and providing wrap around supports as needed to those facing barriers to participation.

The Program just closed a Call for Proposals on March 18, 2022, with a focus on building talent for the clean economy. Projects should start in summer 2022.

Issue

This note provides key information on the Minister’s mandate commitment to launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills so as to be on the leading edge of the zero carbon industry.

Background

Employment and Social Development Canada (ESDC) is working towards the implementation of this mandate commitment. Current work includes developing options for implementation informed by stakeholder consultations.

The Department is leveraging the ongoing Just Transition consultations, led by Natural Resources Canada (NRCan), to inform the design and delivery of a Clean Jobs Training Centre.

Stakeholders are invited to provide input on topics including:

• what sectors and/or sub sectors will require considerable upgrading or new skills to transition to clean economy jobs in the coming years?
• how best could the Centre deliver on its objectives to help workers upgrade or gain new skills to prepare for future clean jobs?
• what should the delivery model look like? How can the Centre ensure it reaches all parts of the country?
• what are some of the main activities the Centre should focus on and what type organizations would be well placed to implement them?

Key messages

A skilled workforce is essential to realizing the Government’s ambitious goal of net zero emissions by 2050. The clean economy is projected to grow faster than the rest of the economy over the next decade, and shortages of workers with the right set of skills and qualifications are expected in key sectors such as transportation, natural resources, and construction for example.

The Government is committed to launch a Clean Jobs Training Centre to help workers in all regions of Canada looking to upgrade or acquire new skills required to fill jobs essential to a clean economy.

As a first step, ESDC is leveraging NRCan’s public consultations on a Just Transition to seek stakeholders’ views on the proposed Clean Jobs Training Centre. These discussions will be key to informing the path forward for the launch of the Centre.

Issue

It is expected that there will be questions about Just Transition legislation, which could include timelines for legislation introduction or the status of the public consultations. Natural Resources Canada (NRCan) is the lead and will answer most questions. You may be asked about ESDC’s role in the consultations.

Background

In 2019, the federal government committed to advancing Just Transition legislation following the recommendations from the Task Force on Just Transition for Canadian Coal Power Workers and Communities. NRCan is still consulting Canadians on the proposed legislation. ESDC participates in these consultations in a support role and to consult on a proposed Clean Jobs Training Centre.

Due to COVID 19 and the oil price shock of March 2020, NRCan did not start its work on developing Just Transition legislation until 2021. That July, NRCan launched a public consultation process for feedback. This process was paused for the 2021 federal election and resumed in April 2022.

The purpose of Just Transition legislation is as a framework to help prepare Canada’s workers and communities to take full advantage of the transition to a low carbon economy.

Potential elements for the legislation could include people centred Just Transition principles that put workers and communities at the centre of the government’s policy and decision making processes on climate action, as well as establish an external Just Transition Advisory Body to provide the government with advice on regional and sectoral Just Transition strategies that support workers and communities.

Virtual stakeholder consultations concluded on May 25.

In addition to these virtual meetings and gathering online feedback, NRCan will be meeting with national Indigenous organizations and Indigenous energy sector workers. NRCan will also continue to engage with provinces and territories through the Regional Energy and Resources Tables.

A “What We Heard” report expected to be released in the summer.

There is currently no timeline for tabling the legislation.

Key facts ESDC’s role

ESDC officials have been participating in the consultation sessions since July 2021 with workers and labour organizations, industry, academia, non governmental organizations, youth, and experts in skills, training, and diversity and inclusion.

With the Minister’s new mandate commitment to launch a Clean Jobs Training Centre, ESDC is leveraging the consultations to gather stakeholder feedback on the possible functions of the Centre. Additionally, feedback from these consultations on labour market, jobs, skills and training is also useful for policy and program development and to inform workforce development strategies.

Key takeaways from the stakeholder consultations include:

• some stakeholders felt that the government is delivering mixed signals on the transition (raising Baie du Nord as an example) and would like more concrete action on the transition sooner
• others felt that industries like oil and gas cannot sunset because new green jobs do not exist yet
• many stakeholders felt that the workers and communities most impacted by the transition need to be actively engaged in the process, including in the Advisory Body
• a number of stakeholders felt that workers need to believe that their skills will be valuable and desirable in the green economy
• specific to the Clean Jobs Training Centre, the feedback heard most often was to not reinvent the wheel on training programs when so many already exist (for example, through unions, employers and academic/training institutions)
• stakeholders felt that the government should be working to fill gaps in labour market information about green skills and jobs, while acting as a broker between industry employers and training opportunities

Officials from the Labour program have also been attending the consultations since the spring 2022 relaunch, as a result of their Minister’s mandate commitment to support the work on Just Transition.

Key messages

What is ESDC’s role in the consultations?

Natural Resources Canada is leading the consultations, which are well underway and are set to conclude this spring.

ESDC officials have been participating in the consultations since they launched in July 2021.

With the resumption of consultations in April of 2022, ESDC has used the virtual sessions to consult on the Minister’s mandate commitment to launch a Clean Jobs Training Centre.

Specifically, department officials are gathering suggestions from stakeholders on the design of the Centre and the possible activities it could conduct, to be complementary to the existing skills and training ecosystem already focused on the transition.

Considering the government’s unfulfilled pledge from 2019 to pass a "Just Transition Act," what is the timeline on introducing government legislation?

[This question is an NRCan lead]

• If pressed: The Government of Canada has committed to moving forward with legislation and comprehensive action to achieve a Just Transition

Any lessons learned from past “transitions”?

[This question is an NRCan lead]

• If pressed: The impacts on communities are multi faceted and varied, and past transitions have shown the importance of using a variety of tools, including place based approaches

Issue

It is expected that there may be questions about Canada’s international role on achieving a Just Transition, or lessons learned from other countries. Natural Resources Canada (NRCan) is the lead and will answer most questions.

Background

Internationally, Canada is working to promote the principles of Just Transition, including through co leadership with the United Kingdom of the Powering Past Coal Alliance, the driving force behind global efforts to accelerate the phase out of coal power.

The Alliance brings together over 125 members and hosts a Just Transition Taskforce, where members and expert stakeholders work together to advocate for a sustainable and inclusive transition away from coal power for workers and communities.

Other international leadership includes the European Union, New Zealand, and Scotland, which have all established governance structures to coordinate activities that support a Just Transition.

Key facts

On the international stage, Canada is working with key partners to advocate for a just, inclusive and equitable transition. This includes:

• participating as a central member on the International Energy Agency’s Global Commission on People Centred Clean Energy Transitions
• as co leads, Canada, the European Commission, and the U.S. launched the Empowering People Initiative at the Clean Energy Ministerial in June 2021, seeking to highlight critical socio economic elements of the energy transition as it relates to advancing skills, inclusivity and workforce development in clean energy
• joining IRENA’s Collaborative Framework on Just and Inclusive Energy Transitions in May 2021 to focus on employment, gender and social inclusion, which is critical to finding lasting solutions needed to ensure that all workers and communities have opportunities to succeed in the low carbon energy transition

Additionally, ESDC is supporting Labour in preparing Canada’s position for the International Labour Organization’s (ILO) annual International Labour Conference in June 2023, which will include a Committee dedicated to holding a general discussion on a Just Transition.

Key messages

What have you learned from other countries and their experiences with transition?

As Natural Resources Canada is the lead on a Just Transition, they are best placed to provide insight on international experiences.

On the workforce development side, ESDC is gathering best practices and lessons learned from our international colleagues.

For example, ESDC attended in December 2021 the Just Transition Forum that addressed issues such as workforce development strategies that link enhanced social protections to active labour market policies.

We continue to gather information from our international counterparts on skills and employment with respect to a Just Transition, and will continue examining the ways in which these lessons learned can benefit Canadians.

Have you commissioned any studies on best practices on skills for the transition?

ESDC, along with NRCan, are collaborating with the International Energy Agency and other countries (still to be determined) on a project to develop analysis and guidance on the topic of new skills and quality jobs in the clean energy transition.

This project falls under the Clean Energy Ministerial initiative of Empowering People: Advancing Skills and Inclusivity for a Just Clean Energy Transition, and initial findings are scheduled to be released at the Clean Energy Ministerial in September of 2022.

Additional information on key sectors and sub sectors

Program

Sectoral Workforce Solutions Program (SWSP)

Program

Skills and Partnership Fund (SPF)

Program

Indigenous Skills and Employment Training (ISET) Program

Program

Union Training and Innovation Program (UTIP)

Program

Community Workforce Development Program (CWDP)

Program

Canadian Apprenticeship Strategy

Program

Sustainable Development Goals (SDG) Funding Program

Program

Red Seal Program

Program

Future Skills Centre (FSC)

Program

Employment Insurance (EI)

Program

Labour Market Development Agreements (LMDAs) and Workforce Development Agreements (WDAs)

1) Don’t let history repeat: Canada’s energy sector transition and the potential impact on workers (TD, April 2021)^{Endnote 13}

Canada had a net zero carbon emission goal for 2050, with a plan to reduce emissions by 32 to 40% by 2030.

The Oil and Gas industry accounts for more than 1 quarter of Canada’s green house gas emissions and nearly 2 thirds of Canada’s primary energy consumption (in 2019).

The plan to reduce emissions will need to come in 2 forms:

• the first is reducing the dependence on fossil fuels and shifting towards other forms of renewable energy
• the second is through technological innovation to reduce emission intensity when fossil fuel is used. A net zero scenario still includes the use of fossil fuels

50 to 75% of current oil and gas workers are at risk of displacement through the 2050 transition:

• this displacement could impact 312,000 to 450,000 workers in the next 3 decades
• the assumption is that many displaced workers will find jobs in the clean energy sector, but the transition will not absorb all
• this parallels the manufacturing industry, in which the share of employment has fallen more than half since 1980 due to automation and skill based technology changes

It is recommended that the transition policy framework have 3 main elements:

• an upskilling/retraining framework that compliments the Canada training benefit and identifies a taxonomy of skills needed in the clean energy sector
• focus clean energy infrastructure and development in communities that will be hit hardest by the transition
• broad based income supports to offset losses due to displacement, including support for older workers

2) Clean Technology Canada: The new reality (Clean Energy Canada, June 2021)^{Endnote 14}

In 2020, Canada’s clean energy sector employed 430,500 people. By 2030, that number is projected to grow almost 50% to 639,200. At the same time, Canada’s fossil fuel sector will see a 9% drop in employment. In terms of raw numbers, the 208,700 new clean energy jobs added by 2030 far exceed the 125,800 lost in fossil fuels.

The clean energy sector’s GDP is forecast to grow by 58% by 2030 significantly, more than the 9% growth expected in fossil fuels.

Clean energy jobs in Alberta are set to increase 164% over the next decade the greatest increase of any Canadian province while Saskatchewan will also see clean energy jobs double.

Canada’s clean energy sector is made up of companies and jobs that help reduce carbon pollution, whether by generating clean energy, helping move it, reducing energy consumption, or making low carbon technologies. It includes a wide range of jobs, from technicians working in renewable energy generation, like wind and solar, to the worker assembling battery packs for new electric buses to the insulator retrofitting homes so they waste less energy.

In 2030, the following clean energy sub sectors will be important sources of employment: clean energy supply (such as wind, solar, hydro, bioenergy); clean buildings (such as building envelopes; HVAC and building control systems; high efficiency appliances and lighting) and clean transport (plug in electric vehicles, public transit and rail, hydrogen consumption technologies).

Text description of figure 1

Table 1: text description of image 1

Sector	Number of Jobs
Clean Transportation	363,700
Industry	24,000
Clean Energy Supply	111,100
Grid Infrastructure	29,900
Clean Buildings	110,600

3) From recession to recovery: Environmental workforce needs, trends and challenges updated Labour Market outlook to 2025 (ECO Canada, March 2021)^{Endnote 15}

While Canada’s employed labour force shrank in 2020, the environmental sector added 35,000 net new jobs, reflecting a 5% increase.

Environmental workers are present in every Canadian region, industry and practically every occupation.

About 1 in 26 workers in Canada (689,000 workers) was in a green jobs in 2020, up from 1 in 30 in 2019.

Job growth and retirement will account for 173,000 net environmental job openings by 2025, equivalent to 25% of 2020 employment levels.

• About 43% of net job openings will stem from expansion demand, while 57% will be due to replacement demand
• About 37% of net hiring requirements (108,000 jobs) will be for core environmental workers (or those in roles that require environmental competencies

Labour shortages are expected across a wide range of different occupations, including senior government managers, physical and life science professionals, inspectors in public and environmental health and occupational health and safety and urban and land use planners.

4) Green collar jobs: The skills revolution Canada needs to reach net zero (RBC, January 2021)^{Endnote 16}

3.1 million Canadian jobs or 15% of the labour force will be disrupted over the next 10 years as the country transitions toward a Net Zero economy.

Eight of 10 major economic sectors will be affected as the workforce adapts.

Canada’s transportation, energy and manufacturing sectors will undergo the most significant early shifts, as 46% of new jobs in natural resources and agriculture and 40% of new jobs in trades, transport, and equipment require an enhanced skillset.

Initial changes will affect highly paid, highly skilled workers more dramatically. Managers in engineering, architecture, utilities and manufacturing are already seeing over 50% of their tasks shift due to the climate transition 5 times that of managers on average.

For workers, upskilling could also bring significant opportunities. Between 235,000 to 400,000 new jobs will be added in fields where enhanced skills will be critical.

A highly skilled Net Zero workforce could establish Canada as a top destination for green investment, building on existing advantages, including a free trade pact with the U.S. and Mexico and large deposits of natural resources critical to clean technology.

A comprehensive skills strategy must be a key pillar of Canada’s $2 trillion Net Zero transition, particularly as other countries compete for investment.

Issue

The intergovernmental community meets regularly on the Climate Plan Implementation at the Deputy Minister, Assistant Deputy Minister and Director General levels to coordinate the Government’s actions towards its commitments to reduce Canada’s greenhouse gas emissions by 40% to 45% below 2005 levels by 2030, and net zero emissions by 2050.

Given there are labour market challenges and opportunities arising from the Government climate actions, a Director level Working Group on Employment and Skills is being established in June 2022.

Background

The Working Group on Employment and Skills will be under the Director General Committee on Climate Plan Implementation.^{Endnote 17}

The mandate of the working group is to bring federal government departments and agencies together to work collaboratively to identify skills needs, support innovative training approaches and foster information sharing.

The working group will deliver on this mandate by reviewing and sharing labour market information, gathering data, undertaking analysis on labour supply/demand and labour market outcomes, existing federal programming, developing diagnostic materials and providing recommendations on skills, jobs and training needed for the transition to an inclusive low carbon economy.

The Secretariat will be managed by ESDC’s Sectoral Workforce Solutions Program.

Working Group meetings will be scheduled monthly, or as needed, for a duration of 2 years, which can be extended as needed.

Membership

The Working Group will be co chaired by the Director of ESDC’s Sectoral Workforce Solutions Program and the Director of Natural Resources Canada’s (NRCan) Just Transition Team.

The Working Group will include representatives from:

• Employment and Social Development Canada
• Environment and Climate Change Canada
• Fisheries and Oceans Canada
• Immigration, Refugees and Citizenship Canada
• Indigenous Services Canada
• Infrastructure Canada
• Innovation, Science and Economic Development Canada
• Natural Resources Canada
• Regional Development Agencies
• Statistics Canada
• Transport Canada
• Women and Gender Equality Canada
• other Departments (TBD)

Other Departments may be invited on an ad hoc basis to discuss specific issues.

OAG recommendation (report reference number: para 30)

Natural Resources Canada (NRCan), with the support of Employment and Social Development Canada (ESDC), should define how the federal government will support workers and communities in a Just Transition to a low carbon economy. NRCan should:

• outline the federal government’s approach to supporting a Just Transition to a low carbon economy
• develop an engagement strategy that includes key stakeholders that represent the diversity of affected workers and communities
• review the federal programming to determine how existing federal policies and programs can contribute to a Just Transition for workers and communities
• undertake a gap analysis to determine which policies and programs should be scaled up to support a Just Transition

OAG recommendation (report reference number: para 33)

To enable a coordinated approach to planning and implementing a Just Transition for Canadians, Natural Resources Canada, with the support of ESDC, should formalize a governance structure to ensure that all relevant federal departments and agencies have clear roles, responsibilities, and accountabilities for advancing the federal support for a Just Transition to a low carbon economy.

OAG recommendation (report reference number: para 36)

Natural Resources Canada, with the support of ESDC, should work with relevant federal organizations to determine an approach to measure, monitor and report on progress towards a Just Transition to a low carbon economy. This approach should:

• establish what data is needed related to sectors, skills, occupations, and the diversity of workers and communities
• develop the tools for measuring and monitoring affected workers and communities
• establish public reporting requirements for measuring progress towards a Just Transition for workers and communities to a low carbon economy

OAG recommendation (report reference number: para 58)

To better integrate Just Transition principles in federal programs, the Atlantic Canada Opportunities Agency, Prairies Economic Development Canada, and Employment and Social Development Canada should work with Natural Resources Canada to establish the federal government’s approach, which could include the  design of new federal programs, and leverage existing mechanisms to support a Just Transition to a low carbon economy that meets the diverse needs of affected workers and communities.

OAG recommendation (report reference number: para 63)

Natural Resources Canada, the Atlantic Canada Opportunities Agency, and Prairies Economic Development Canada, with the support of Employment and Social Development Canada, should work together to measure, monitor and report on Just Transition outcomes. This would include:

• establishing indicators and determining data requirements to measure and monitor the long term effects of the coal phase out on affected workers and communities
• tracking progress based on indicators aligned with the Canadian Indicator Framework for the Sustainable Development Goals that reflect the diversity of directly and indirectly affected workers and communities
• establishing results to be achieved for workers and communities that support a Just Transition to a low carbon economy
• establishing a reporting schedule to publically report on the outcomes of the Just Transition programs