2015–16 Report on Plans and Priorities - Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Ministers:

The Honourable Pierre Poilievre

The Honourable Dr. K. Kellie Leitch

The Honourable Candice Bergen

The Honourable Alice Wong

Institutional Head:

Ian Shugart

Deputy Minister of Employment and Social Development

Ministerial Portfolio:

Minister of Employment and Social Development, Democratic Reform and Minister for the National Capital Commission

Minister of Labour and Minister of Status of Women

Minister of State (Social Development)

Minister of State (Seniors)

Enabling Instruments:

Department of Employment and Social Development Act (S.C. 2005, c. 34) Footnote 1 ; additional information on Acts and Regulations can be found on the Employment and Social Development Canada website Footnote 2 .

Year of Incorporation/Commencement:

2005

Other:

For more information on the Department’s role, please visit the Employment and Social Development Canada website Footnote 3 .

Organizational Context

Raison d’être

The mission of Employment and Social Development Canada (ESDC), including the Labour Program and Service Canada, is to build a stronger and more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives and to improve Canadians’ quality of life.

ESDC delivers a range of programs and services that affect Canadians throughout their lives. The Department provides seniors with basic income security, supports unemployed workers, helps students finance their post-secondary education and assists parents who are raising young children. The Labour Program is responsible for labour laws and policies in federally regulated workplaces. Service Canada helps citizens access ESDC’s programs, as well as other Government of Canada programs and services.

Responsibilities

To fulfill its mission, the Department is responsible for:

ESDC assists millions of Canadians each year
  • 81.5 million visits to the Service Canada website
  • 1.9 million calls answered by 1 800-O-Canada agents
  • 8.1 million in-person visits to Service Canada centres
  • 4.7 million passports issued
  • 2.78 million Employment Insurance claims, 1.3 million Canada Pension Plan and 2.6 million Old Age Security and Guaranteed Income Supplement applications processed
  • 356,916 students withdrew $2.74 billion from their RESPs to help fund their post-secondary education
  • 94% of labour disputes were settled as part of the collective bargaining process
  • developing policies that ensure all can use their talents, skills and resources to participate in learning, work and their community
  • delivering programs that help Canadians move through life’s transitions, from school to work, from one job to another, from unemployment to employment, from the workforce to retirement;
  • providing income support to seniors, families with children and Employment Insurance beneficiaries;
  • helping Canadians with distinct needs such as Aboriginal people, people with disabilities, homeless people, travellers and recent immigrants;
  • overseeing federal labour responsibilities; and
  • delivering programs and services on behalf of other departments and agencies.

Included in these core roles are responsibilities for the design and delivery of some of the Government of Canada’s most well-known programs and services, including:

  • Old Age Security;
  • the Canada Pension Plan;
  • Employment Insurance;
  • Canada Loans and Grants for Students and Apprentices Program;
  • the Canada Education Savings Program;
  • the National Child Benefit;
  • the Universal Child Care Benefit;
  • the Wage Earner Protection Program; and
  • passport services.
Key service standard expectations for 2015–16
  • 80% of Employment Insurance (EI) benefit payments or non-payment notifications issued within 28 days
  • 80% of EI calls answered by an agent within 10 minutes
  • 95% payment accuracy for EI, the Canada Pension Plan and Old Age Security
  • 90% of grant payments within 15 days and contribution payments within 28 days
  • 90% of passports issued on time

These direct benefits to Canadians are part of Canada’s social safety net and represent 95 percent of the Department’s expenditures.

The Labour Program is responsible for overseeing federal labour regulatory responsibilities, including facilitating compliance with occupational health and safety, labour standards and employment equity legislation, as well as assisting trade unions and employers in the negotiation of collective agreements and their renewal in federally regulated workplaces. The Labour Program also represents Canada in international labour organizations and negotiates and implements labour provisions in the context of trade liberalization initiatives.

615 Points of Service in Canada: description follows
Text description of 615 Points of Service

Western Canada and Territories:

  • 87 Service Canada Centres including: 60 Passport Receiving Agents, 9 Part-time Service Canada Centres, and 32 Bilingual Service Canada Centres.
  • 117 Scheduled Outreach Sites
  • 11 Passport Offices

Ontario

  • 92 Service Canada Centres indluding: 31 Passport Receiving Agents and 41 Bilingual Service Canada Centres
  • 93 Scheduled Outreach Sites
  • 13 Passport Offices

Quebec

  • 77 Service Canada Centres including: 25 Passport Receiving Agents, 1 Part-time Service Canada Centres and 33 Bilingual Service Canada Centres
  • 19 Scheduled Outreach Sites
  • 7 Passport Offices

Atlantic Canada

  • 58 Service Canada Centres including: 28 Passport Receiving Agents and 26 Bilingual Service Canada Centres
  • 28 Scheduled Outreach Sites
  • 3 Passport Offices

Total

  • 324 Service Canada Centres
  • 257 Scheduled Outreach Sites
  • 10 Part-time Service Canada Centres (of the 324 Service Canada Centres)
  • 144 Passport Receiving Agents (of the 324 Service Canada Centres)
  • 34 Passport Offices
  • 132 Bilingual Service Canada Centres (of the 324 Service Canada Centres)

Through Service Canada, the Department helps Canadians access departmental programs as well as other Government of Canada programs and services at 615 points of service across the country (581 Service Canada points of service and 34 Passport offices). In addition to in-person services, the organization also serves the needs of Canadians online at servicecanada.gc.ca as well as Canada.ca, through My Service Canada Account and by telephone through 1 800 O-Canada and its network of call centres.

Finally, through grants and contributions, the Department provides funding to other orders of government and organizations in the voluntary and private sectors, educators and community organizations to support projects that meet the labour market and social development needs of Canadians.

Strategic Outcomes and Program Alignment Architecture

ESDC’s 2015–16 Program Alignment Architecture (PAA) is presented below. It lists the programs offered by the Department that are designed to support the achievement of its four strategic outcomes. The Department has realigned its PAA to foster a stronger emphasis on horizontal collaboration and integration by bringing together all elements on the spectrum of policy development to service delivery.

  • 1. Strategic Outcome: Government-wide service excellence
    • 1.1 Program: Service Network Supporting Government Departments
      • 1.1.1 Sub-Program: Government of Canada Telephone General Enquiries Services
      • 1.1.2 Sub-Program: Government of Canada Internet Presence
      • 1.1.3 Sub-Program: In-Person Points of Service
    • 1.2 Program: Delivery of Services for Other Government of Canada Programs
      • 1.2.1 Sub-Program: Passport
      • 1.2.2 Sub-Program: Other Government Department Programs
  • 2. Strategic Outcome: A skilled, adaptable and inclusive labour force and an efficient labour market
    • 2.1 Program: Skills and Employment
      • 2.1.1 Sub-Program: Employment Insurance
      • 2.1.2 Sub-Program: Labour Market Development Agreements
      • 2.1.3 Sub-Program: Canada Job Fund Agreements
      • 2.1.4 Sub-Program: Labour Market Agreements for Persons with Disabilities
      • 2.1.5 Sub-Program: Opportunities Fund for Persons with Disabilities
      • 2.1.6 Sub-Program: Youth Employment Strategy
      • 2.1.7 Sub-Program: Targeted Initiative for Older Workers
      • 2.1.8 Sub-Program: Enabling Fund for Official Language Minority Communities
      • 2.1.9 Sub-Program: Aboriginal Skills and Employment Training Strategy
      • 2.1.10 Sub-Program: Skills and Partnership Fund
      • 2.1.11 Sub-Program: First Nations Job Fund
      • 2.1.12 Sub-Program: Job Bank
      • 2.1.13 Sub-Program: Sectoral Initiatives Program
      • 2.1.14 Sub-Program: Literacy and Essential Skills
      • 2.1.15 Sub-Program: Skilled Trades and Apprenticeship (Red Seal Program)
      • 2.1.16 Sub-Program: Apprenticeship Grants
      • 2.1.17 Sub-Program: Foreign Credential Recognition Program
      • 2.1.18 Sub-Program: Temporary Foreign Worker Program
    • 2.2 Program: Learning
      • 2.2.1 Sub-Program: Canada Loans and Grants for Students and Apprentices Program
      • 2.2.2 Sub-Program: Canada Education Savings Program
  • 3. Strategic Outcome: Safe, fair and productive workplaces and cooperative workplace relations
    • 3.1 Program: Labour
      • 3.1.1 Sub-Program: Labour Relations
      • 3.1.2 Sub-Program: Workplace Health and Safety
        • 3.1.2.1 Sub-Sub-Program: Occupational Health and Safety
        • 3.1.2.2 Sub-Sub-Program: Federal Workers’ Compensation
      • 3.1.3 Sub-Program: Labour Standards and Equity
        • 3.1.3.1 Sub-Sub-Program: Labour Standards
        • 3.1.3.2 Sub-Sub-Program: Workplace Equity
        • 3.1.3.3 Sub-Sub-Program: Wage Earner Protection Program
      • 3.1.4 Sub-Program: International Labour Affairs
  • 4. Strategic Outcome: Income security, access to opportunities and well-being for individuals, families and communities
    • 4.1 Program: Income Security
      • 4.1.1 Sub-Program: Old Age Security
      • 4.1.2 Sub-Program: Canada Pension Plan
      • 4.1.3 Sub-Program: Canada Pension Plan Disability Benefits
      • 4.1.4 Sub-Program: Canada Disability Savings Program
      • 4.1.5 Sub-Program: National Child Benefit
    • 4.2 Program: Social Development
      • 4.2.1 Sub-Program: Homelessness Partnering Strategy
      • 4.2.2 Sub-Program: Social Development Partnerships Program
        • 4.2.2.1 Sub-Sub-Program: Children and Families
        • 4.2.2.2 Sub-Sub-Program: Disability
      • 4.2.3 Sub-Program: New Horizons for Seniors Program
      • 4.2.4 Sub-Program: Universal Child Care Benefit
      • 4.2.5 Sub-Program: Enabling Accessibility Fund
      • 4.2.6 Sub-Program: Federal Income Support for Parents of Murdered or Missing Children
  • Internal Services
    • 5.1 Program: Internal Services

Organizational Priorities

Priority

1. Deliver high-quality programs and services

Type

New

Strategic Outcomes/Program
  • Government-wide service excellence
  • A skilled, adaptable and inclusive labour force and an efficient labour market
  • Safe, fair and productive workplaces and cooperative workplace relations
  • Income security, access to opportunities and well-being for individuals, families and communities
  • Internal Services
Description
Why is this a priority?

The Department helps Canadians in all stages of their lives and its employees touch the lives of Canadians across the country on a daily basis. As the Department implements its new service strategies to meet the Government of Canada Service Strategy, it needs to be innovative in the way it designs and delivers programs, while ensuring that Canadians receive timely and accurate delivery of benefits and services in the manner of their choice. Horizontal collaboration and integration between program and service delivery will ensure that policies and programs are developed with service delivery in mind and that processes are simple and automated. This in turn will support a consistently high quality of service that clients receive.

This priority is linked to the Government of Canada’s Service Strategy.

What are the plans for meeting this priority?
  • Modernization of Government of Canada Web presence
  • Modernization of passport services
  • Implement the EI Workload Inventory Reduction Strategy
  • Advance Risk-based Program Integrity Measures across departmental programs
  • Advance Canada’s international trade and human rights agenda through the negotiation of bilateral and multilateral agreements and through multilateral fora
Priority

2. Implement ESDC service strategies

Type

New

Strategic Outcomes/Program
  • Government-wide service excellence
  • A skilled, adaptable and inclusive labour force and an efficient labour market
  • Safe, fair and productive workplaces and cooperative workplace relations
  • Income security, access to opportunities and well-being for individuals, families and communities
  • Internal Services
Description
Why is this a priority?

Advances in technology have made it easier and cheaper for people to go online to find information or purchase goods and services. Use of the Internet by Canadians has increased steadily over the last decade and in 2012, according to Statistics Canada, nearly two thirds of Canadians (63 percent) used the Internet for visiting or interacting with the Government. Canadians expect the Government to keep pace and provide them with online information and services that meet their needs. In line with this, ESDC has made a number of improvements to online services over the last six years, such as providing the ability to view Records of Employment, to access T4E slips, to report Employment Insurance income and to update personal information for Employment Insurance, the Canada Pension Plan and the Old Age Security pension. ESDC will implement a new service strategy to address the changing expectations of citizens with respect to online service to make service delivery more affordable, secure and accessible and to meet the requirements of Treasury Board Secretariat’s new Service Policy. ESDC will continue to modernize Grants and Contributions by increasing efficiency through streamlined, simplified and standardized processes and tools and improving the web-based experiences of Canadians through enhanced Gs&Cs Online Services.

This priority is linked to the Government of Canada Service Strategy, Digital Service Strategy and Service Canada Vision 2020.

What are the plans for meeting this priority?
  • Complete the latest phase of the Employment Insurance automation agenda
  • Plan the Employment Insurance service delivery modernization
  • Finalize the Old Age Security/Guaranteed Income Supplement and Canada Pension Plan service improvement strategies
  • Strengthen identity management
  • Continue to modernize grants and contributions
  • Advance the development of a secure e-account for citizens, business and stakeholders
  • Advance the Digital Service Strategy
  • Complete the Canada Loans and Grants for Students and Apprentices Service Provider re procurement
  • Implement the Government of Canada and ESDC Service Strategy and the Treasury Board Service Policy
Priority

3. Support in-demand skills acquisition leading to employment

Type

New

Strategic Outcome
  • A skilled, adaptable and inclusive labour force and an efficient labour market
Description
Why is this a priority?

The Government of Canada invests over $13.5 billion each year in skills training. Despite this significant investment, a skills shortage in various regions and the lack of skilled labour for in-demand jobs remain as challenges, particularly with higher job vacancy rates in the skilled trades and science-based occupations. There is a need to further improve the alignment of education and training to in-demand employment as well as the process of matching Canadians with available jobs.

The Department announced and implemented a number of measures that focus on equipping Canadians with the skills and training they need to succeed in the labour market, while also connecting them to available jobs. To ensure that Canadians are able to acquire the skills and expertise in demand by employers and to improve the quality of information available, the Department will continue to support the acquisition of the skills and expertise needed for in-demand jobs and will further improve the quality and availability of information regarding in-demand skills and expertise. The Department is also encouraging greater employer participation in skills training decisions to ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.

This priority is related to the Government of Canada priority of jobs, growth and prosperity as well as Economic Action Plan 2014.

What are the plans for meeting this priority?
  • Negotiate and implement amended Labour Market Development Agreements
  • Continue to implement the Job Match service that will enable employers to access Express Entry candidates
  • Strengthen apprenticeship systems by ensuring the Red Seal program is the recognized standard certificate of competency in the skilled trades
Priority

4. Maximize labour market participation of under-represented groups

Type

New

Strategic Outcome
  • A skilled, adaptable and inclusive labour force and an efficient labour market
Description
Why is this a priority?

While Canada has enjoyed significant job creation in recent years, a number of Canadians continue to face challenges in finding and securing employment. The labour market participation rate of Aboriginal people lags behind that of the non-Aboriginal population. In 2013, the Panel on Labour Market Opportunities for Persons with Disabilities highlighted that there are approximately 800,000 working-age Canadians with a disability who are not working even though their disability does not prevent them from doing so. The labour market outcomes of recent immigrants are also weaker than Canadian-born workers despite their high levels of educational attainment. While the participation rate of older Canadians is increasing, it remains lower than in a number of Organisation for Economic Co-operation and Development countries. Action is needed to remove barriers to employment for these populations and improve access to relevant training and post-secondary education leading to employment.

Maximizing the participation of under-represented groups in the labour market, including recent immigrants, Aboriginal people, persons with disabilities, youth and older Canadians, is a priority for ESDC in order to achieve the full utilization of the labour force. To improve the employability of these groups, the Department is committed to creating new opportunities for the acquisition of in-demand skills and expertise, strengthening existing supports for the acquisition of in-demand skills and expertise, and ensuring access to job training and post-secondary education leading to employment.

This priority is also related to the Government of Canada priority of jobs, growth and prosperity as well as Economic Action Plan 2014.

What are the plans for meeting this priority?
  • Renewal of the Aboriginal Skills and Employment Training Strategy and the Skills and Partnerships Fund
  • Improve Foreign Credential Recognition
Priority

5. Implement efficient enterprise solutions that support the business vision

Type

New

Strategic Outcomes/Program
  • Government-wide service excellence
  • A skilled, adaptable and inclusive labour force and an efficient labour market
  • Safe, fair and productive workplaces and cooperative workplace relations
  • Income security, access to opportunities and well-being for individuals, families and communities
  • Internal Services
Description
Why is this a priority?

In the new “digital” era, the Department’s IT investments must be focused to meet business objectives. Whole-of-government solutions; secure information systems; common information technology services, processes and systems; fewer and cheaper technology platforms; and a modern workplace for a technology-savvy workforce are all important areas of focus. Treasury Board Secretariat has launched a government-wide program to identify Government of Canada mission-critical business applications; improve the maturity of application portfolio management practices across government; support government-wide strategies on the renewal and ever-greening of aging applications; and implement multi-year investment planning for applications.

The Department’s application portfolio is relatively stable and is of reasonable quality to support current needs, but it is not well positioned to respond quickly to new, more modern requirements. ESDC has many custom applications that are largely based on aging and customized technology with duplicate or very similar functionality that will either need to be retired or updated.

Through implementation of cost-effective and uninterrupted enabling support, the Department will reduce the risks and costs associated with the aging of hardware and software as well as the costs and processing times for human resources, finance and contracting services. In addition, the updating of information technology infrastructure and platforms will support external and internal service delivery.

What are the plans for meeting this priority?
  • Complete the Mainframe Legacy Application Migration Project (update the departmental platform that supports approximately 130 applications)
  • Update the Department’s IT infrastructure through the following Shared Services Canada-led initiatives: Consolidation of Data Centres; Transformation of Telecommunications; Email and Workplace Technology Devices
  • Continue the implementation of Enabling Services Renewal Program (electronic service delivery of key internal services)
  • Renew Contact Centre Technology
  • Continue to enhance Investment Planning and Project Management Processes and Capacity
  • Implement the Government of Canada Transformation of Pay Administration Initiative
Priority

6. Value information as a business asset

Type

New

Strategic Outcomes/Program
  • Government-wide service excellence
  • A skilled, adaptable and inclusive labour force and an efficient labour market
  • Safe, fair and productive workplaces and cooperative workplace relations
  • Income security, access to opportunities and well-being for individuals, families and communities
  • Internal Services
Description
Why is this a priority?

Information is recognized as an important and strategic asset. A large share of organizational resources is devoted to the effective storage, retrieval and maintenance of information. This information provides the capability to deliver services, make better decisions and improve performance. At the same time, the responsible management and protection of information is fundamental to everything the Department does. ESDC manages more of the personal information of Canadians than any other organization in Canada and is committed to meeting the highest standards of respect for the privacy rights of Canadians and the protection of their personal information.

Good information management practices are critical to the continued effectiveness and improvement of the organization as well as to the privacy and security of personal information. Multi-year planning and decision-making informed by business and predictive analytics and performance information are needed to ensure that information resources can be leveraged to identify opportunities and to provide enhanced support for decision-making. In addition, the Department needs to ensure that the private/sensitive information under its control is safeguarded, that best practices are in place to protect personal and sensitive information and that record keeping practices comply with the Treasury Board of Canada Secretariat Record Keeping directive.

What are the plans for meeting this priority?
  • Full implementation of the Electronic Documents and Records Management Solutions (EDRMS)
  • Continue the implementation of the Privacy Management Action Plan that supports the continuous improvement of controls and practices related to sensitive information
  • Improve departmental security including implementing the Information Technology Security Plan that will result in more robust controls and preventative measures to protect against cyber threats
  • Advance the e-Payroll Information Service

Risk Analysis

ESDC has identified the following four key corporate risks areas that could have an impact on the Department's ability to meet the objectives outlined in the 2015–16 plans and priorities:

Risk Areas Risk Response Strategies Link to Program Alignment Architecture

Project management

Given the complexity of projects, there is a risk that ESDC will encounter difficulties in meeting project deadlines due to insufficient capacity and skills in project management.

  • Continue and expand the use of current project management tools
  • Provide training and support on project management to employees in enabling services and other key areas
  • Continue monitoring major projects through governance committees
  • Continue to enhance investment planning and project management processes and capacity

Link to Strategic Outcome 1: Government-wide service excellence

Link to Program 5.1: Internal Services

Privacy/security

Given the volume and sensitivity of ESDC's data along with the proliferation of online threats, there is a risk that information collected by the Department is inadvertently accessed, inappropriately handled, used and/or disclosed by ESDC or its clients.

  • Increase awareness regarding cyber threats both internally and externally
  • Expand and continue the implementation of the Departmental Data Protection Strategy
  • Provide support to employees by developing data management tools

Link to Strategic Outcome 1: Government-wide service excellence

Information technology

Given that the technologies that support the delivery of ESDC’s programs are aging, there may be a risk that the Department’s information technology (IT) capacity and the replacement of obsolete technologies, both the infrastructure and applications, may result in temporary service disruptions.

  • Implementation of ongoing investments to modernize aging applications and technologies
  • Continue with the renewal of the Enterprise Application Portfolio Management framework
  • Continue with the development of a Department-wide IT framework

Link to Strategic Outcome 1: Government-wide service excellence

Link to Program 5.1: Internal Services

Human resource management

As the public service ages, there is a risk that ESDC will lose valuable historical knowledge that will not be adequately replaced to meet its future needs.

  • Integrate corporate workforce and operational human resources planning to recruit skilled resources and strengthen workforce capacity
  • Through the new Performance Management Agreements and Talent Management Strategy, provide support for learning and skills development and career advancement
  • Encourage collaboration and partnerships to ensure efficiencies and eliminate duplication of effort

Link to Program 5.1: Internal Services

Risk Narrative

Canada’s social and economic trends are influenced by a wide range of factors, both domestic and international, that have an impact on how the Department carries out its mandate. The current socio-economic environment and the broad span of programs and services comprising the ESDC portfolio bring forward risks that are dynamic and complex.

Technological developments and the rapid adoption of new platforms as a means of communication are changing the way the Department provides services to citizens. The Department must be innovative in order to more effectively deliver its programs and services.

One way to ensure greater efficiency and effectiveness is through an integrated risk management process. At ESDC, risk management principles are integrated into business planning, decision-making and organizational processes to minimize the impacts and maximize the opportunities across programs and services.

The risks identified under each of the key risk areas below are the result of risk management self-assessment activities and independent reviews conducted by the Department. These risks will be monitored by senior management throughout the year to ensure adequate measures are implemented to mitigate their impacts.

1. Project Management

In support of the Government’s priority to modernize service delivery, the Department manages a number of complex projects in order to enhance services to Canadians. These projects must be managed effectively and efficiently to maintain high service standards. Given the scope and complexity of projects associated with the modernization agenda, it is increasingly imperative that ESDC has the project management capacity and resources to meet departmental priorities and objectives. This risk is further compounded by interdependencies between service and client branches, driving the need for collaboration and establishment of strong partnerships with enabling services.

The Department will continue relying on risk mitigation strategies and monitoring tools, including the Investment Management Process and the Project Management Framework, to ensure that all projects undertaken are planned, managed and delivered in a consistent and timely manner. To increase its capacity, the Department will recruit employees with project management skills as well as provide training to existing employees to support the implementation of large projects. Additionally, various governance structures are established to monitor and manage project expenditures and resource allocation.

2. Privacy/Security

Over the past decade, use of the Internet has significantly increased across the Government to enhance services and meet the evolving needs of clients. To help ensure the protection of personal and sensitive information, the Department will continue expanding and implementing its Data Protection Strategy; providing support to employees through training and development of Data Management tools; and increasing its awareness efforts to ensure that both employees and clients are aware of the threats or other attempts to gather personal information through various methods and techniques.

3. Information Technology

To support the changing needs of Canadians, ESDC must ensure that its programs and service delivery channels evolve at the same pace as the technologies used to support them. Maintaining a high service delivery standard requires investments by the Department in information technology applications to replace aging applications and develop systems, infrastructure and business applications that meet clients’ demand for fast, efficient, timely and secure service.

Through the implementation of the Digital Service Strategy, the Department supports Service Canada’s Vision 2020 by developing operating models and a coordinated approach to transforming and modernizing service delivery. ESDC will also work closely with Shared Services Canada to ensure that new applications and technologies are aligned with government-wide solutions.

4. Human Resource Management

To ensure sufficient capacity and the right mix of skills and competencies, the Department will continue to maintain an integrated approach to workforce planning and management to assist managers and employees in delivering on business objectives. The Department’s approach includes implementation of a five-year ESDC Workforce Plan (2015-2020) containing numerous initiatives to attract and maintain a skilled and diverse workforce.

Planned Expenditures

Budgetary Financial Resources (Planned Spending – dollars)*

2015–16

Main Estimates
2015–16

Planned Spending
2016–17

Planned Spending
2017–18

Planned Spending
54,265,536,116 116,790,417,713 122,186,900,579 127,899,574,107
* Employment Insurance and Canada Pension Plan benefits are excluded from the 2015–16 Main Estimates, while they are included in the 2015–16, 2016–17 and 2017–18 planned spending.

Human Resources (Full-Time Equivalents – FTEs)

2015–16 2016–17* 2017–18*
20,584 17,409 17,391
* Following the Order-in-Council amending the Canadian Passport Order (P.C. 2013-541) and the Public Service Rearrangement and Transfer of Duties Act (P.C. 2013-540) in May 2013, the responsibilities for passport operations were transferred to ESDC as of July 2, 2013. Resources for passport services were approved December 5, 2013, from 2013–14 to 2015–16. As the resources are sunsetting in 2015–16, the FTE figures reported above reflect a reduction mainly associated with passport services (total of 2,426 FTEs). The Department will seek vote-netting authorities from Treasury Board in 2015–16 for the delivery of passport services for 2016–17 and future years.

Budgetary Planning Summary for Strategic Outcomes and Programs (dollars)*

Strategic

Outcomes,

Programs

and Internal

Services
2012–13

Expenditures**
2013–14

Expenditures**
2014–15

Forecast

Spending**
2015–16

Main Estimates
2015–16

Planned Spending
2016–17

Planned Spending
2017–18

Planned Spending
Strategic Outcome 1: Government-Wide Service Excellence
Program 1.1: Service Network Supporting Government Departments 65,335,873 56,155,311 56,374,478 63,199,999 63,199,999 62,876,459 62,876,459
Program 1.2: Delivery of Services for Other Government of Canada Programsb 9,479,172 114,011,116 182,328,653 160,024,593 160,024,593 2,378,492 2,384,455
Strategic Outcome 1 Sub-total 74,815,045 170,166,427 238,703,131 223,224,592 223,224,592 65,254,951 65,260,914
Strategic Outcome 2: A skilled, adaptable and inclusive labour force and an efficient labour market
Program 2.1: Skills and Employmentc 19,950,478,391 19,798,499,077 20,302,524,363 2,384,959,874 20,563,499,451 21,049,664,336 21,578,056,571
Program 2.2: Learningd 2,276,213,229 2,194,839,183 2,596,616,385 2,391,384,094 2,391,384,094 2,467,990,230 2,547,936,794
Strategic Outcome 2 Sub-total 22,226,691,620 21,993,338,260 22,899,140,748 4,776,343,968 22,954,883,545 23,517,654,566 24,125,993,365
Strategic Outcome 3: Safe, fair and productive workplaces and cooperative workplace relations
Program 3.1: Laboure 259,265,381 269,144,868 294,500,315 289,750,470 289,750,470 289,375,419 288,927,778
Strategic Outcome 3 Sub-total 259,265,381 269,144,868 294,500,315 289,750,470 289,750,470 289,375,419 288,927,778
Strategic Outcome 4: Income security, access to opportunities and well-being for individuals, families and communities
Program 4.1: Income Securityf 76,648,690,349 79,787,670,175 83,944,117,548 46,817,095,262 88,450,510,738 93,298,805,587 98,374,802,359
Program 4.2: Social Developmentg 2,997,506,246 2,992,893,293 3,053,517,422 3,081,658,183 3,081,658,183 3,113,500,807 3,142,954,606
Strategic Outcome 4 Sub-total 79,646,196,595 82,780,563,468 86,997,634,970 49,898,753,445 91,532,168,921 96,412,306,394 101,517,756,965
Support to achieve all Strategic Outcomes
Program 5.1: Internal Services 943,218,960 949,352,111 969,992,869 906,173,311 906,173,311 852,189,052 851,393,118
Internal Services Sub-totalh 943,218,960 949,352,111 969,992,869 906,173,311 906,173,311 852,189,052 851,393,118
Other costsi*** 707,350,299 767,901,937 868,205,002 - 884,216,874 1,050,120,197 1,050,241,967
Vote-Netted Revenues - - - (1,828,709,670) - - -
Sub-total 707,350,299 767,901,937 868,205,002 (1,828,709,670) 884,216,874 1,050,120,197 1,050,241,967
Totala 103,857,537,900 106,930,467,071 112,268,177,035 54,265,536,116 116,790,417,713 122,186,900,579 127,899,574,107

* Employment Insurance and Canada Pension Plan benefits are excluded from the 2015–16 Main Estimates, while they are included in the 2012–13 and 2013–14 expenditures, the 2014–15 forecast spending, the 2015–16, 2016–17 and 2017–18 planned spending.

Employment Insurance benefits are shown under the Skills and Employment program (Employment Insurance sub-program and Labour Market Development Agreements) and the Canada Pension Plan benefits are under the Income Security program (Canada Pension Plan and Canada Pension Plan Disability Benefits sub-programs).

** For comparative purposes, 2012–13 and 2013–14 actual expenditures as well as 2014–15 forecast spending by program have been restated according to the new Program Alignment Architecture approved for 2015–16.

*** Other costs include administrative costs of other government departments charged to the Employment Insurance Operating Account and the Canada Pension Plan. It also includes Employment Insurance doubtful accounts and recoveries from other government departments.

aThe overall increase in spending of $24.0 billion from 2012–13 to 2017–18 can mainly be explained by increases to Canada Pension Plan benefits, Old Age Security payments and Employment Insurance benefits (for more details, see Departmental Spending Trend ).

bThe significant reduction in planned spending from 2015–16 to 2016–17 for Delivery of Services for Other Government of Canada Programs is mainly explained by the sunsetting in 2015–16 of the passport services funding. The Department will have to request funding for 2016–17 and future years, including FTEs.

cUnder Skills and Employment, the increase of $1.6 billion from 2012–13 to 2017–18 is mainly due to an increase of $2.2 billion in Employment Insurance benefits, offset by a decrease related to the Employment Insurance benefits enhancement measures in accordance with the Budget Implementation Act (2009) paid in 2012–13. Employment Insurance benefits are expected to increase by $0.3 billion (2.2 percent) from the 2014–15 forecasted spending to the 2015–16 planned spending as a result of expected increases in the average benefit rate due to the increase in the maximum insurable earnings, which is partially offset by a decrease in the number of beneficiaries due to an improving labour market.

dSpending under Learning is expected to increase by $0.3 billion between 2012–13 and 2017–18 mainly due to increases of $0.5 billion to the Canada Loans and Grants for Students and Apprentices Program, including the Canada Education Savings Grant and the Canada Learning Bond. The increases are offset by a decrease of $0.2 billion to Canada Student Loan write-offs (Vote 7).

eThe variances related to Labour are mostly attributable to changes in Wage Earner Protection Program and Federal Workers’ Compensation payments.

fThe increase of $21.7 billion from 2012–13 to 2017–18 in planned spending related to Income Security is mainly related to expected increases to Canada Pension Plan benefits ($10.7 billion) and Old Age Security Program payments ($11.0 billion).

gSocial Development planned spending for 2017–18 is expected to reach $3.1 billion, representing an increase of $0.2 billion from the 2012–13 actual expenditures, mostly due to an increase in Universal Child Care Benefit payments. Planned spending amounts do not include the proposed enhancements announced on October 30, 2014.

hThe decrease of $0.1 billion in Internal Services spending between 2012–13 and 2017–18 is mainly due to internal efficiencies and savings identified as part of the 2010 Strategic Review and Budget 2012 and the sunsetting in 2013–14 of the New Gatineau Tower funding.

iThe increase of $0.3 billion to other costs is mainly related to an increase in the Canada Pension Plan Investment Board charges to the Canada Pension Plan.

Alignment of Spending with the Whole-of-Government Framework

Alignment of 2015–16 Planned Spending with the Whole-of-Government Framework Footnote 4 (dollars)

Strategic Outcomes Programs Spending Areas Government of Canada

Outcomes
2015–16

Planned Spending
Strategic Outcome 1:

Government-Wide Service Excellence
Program 1.1:

Service Network Supporting Government Departments
Government Affairs A transparent, accountable and responsive federal Government 63,199,999
Program 1.2:

Delivery of Services for Other Government of Canada Programs
Government Affairs A transparent, accountable and responsive federal Government 160,024,593
Strategic Outcome 2:

A skilled, adaptable and inclusive labour force and an efficient labour market
Program 2.1:

Skills and Employment
Economic Affairs Income security and employment for Canadians 20,563,499,451
Program 2.2:

Learning
Economic Affairs An innovative and knowledge-based economy 2,391,384,094
Strategic Outcome 3:

Safe, fair and productive workplaces and cooperative workplace relations
Program 3.1:

Labour
Economic Affairs A fair and secure marketplace 289,750,470
Strategic Outcome 4:

Income security, access to opportunities and well-being for individuals, families and communities
Program 4.1:

Income Security
Economic Affairs Income security and employment for Canadians 88,450,510,738
Program 4.2:

Social Development
Social Affairs A diverse society that promotes linguistic duality and social inclusion 3,081,658,183

Total Planned Spending by Spending Area (dollars)

Spending Areas Total Planned Spending
Economic Affairs 111,695,144,753
Social Affairs 3,081,658,183
International Affairs -
Government Affairs 223,224,592

Departmental Spending Trend

For 2015–16, the Department has planned expenditures on programs and services of $116.8 billion. Of that amount, $111.4 billion directly benefit Canadians through statutory transfer payment programs such as Employment Insurance, the Canada Pension Plan, the Universal Child Care Benefit, Old Age Security and the Canada Loans and Grants for Students and Apprentices Program.

CONSOLIDATED TOTAL: $116,790.4 M

Employment and Social Development Canada (ESDC) planned expenditures on programs and services
Chart of ESDC expenditures on programs and services: description follows
Text description of ESDC planned expenditures on programs and services chart
Programs (in millions of dollars) Percentage
Old Age Security / Guaranteed Income Supplement / Allowance 46,072.4 39.4%
Canada Pension Plan 41,633.4 35.6%
Employment Insurance 18,153.6 15.5%
Universal Child Care Benefit / Canada Student Loans / Other Statutory Payments 5,569.9 4.8%
Gross Operating Expenditures 2,764.2 2.4%
Voted Grants and Contributions 1,712.7 1.5%
Other - Passport Services, Workers' Compensation and EI/CPP charges 884.2 0.8%
Loans disbursed under the Canada Student Financial Assistance Act (Non-Budgetary) - 0.0%
Consolidated Total $116,790.4 M 100.0%
Employment and Social Development Canada - Gross Expenditures

($ millions)
Budgetary
Net Operating Costs 935.4
Add Recoveries in relation to:
Canada Pension Plan 288.5
Employment Insurance Operating Account 1,234.8
Workers' Compensation 128.4
Passport Services 170.2
Other 6.9 1,828.8
Gross Operating Costs 2,764.2
Voted Grants and Contributions 1,712.7
Total Gross Expenditures 4,476.9
Other - Workers' Compensation and EI/CPP Charges and Recoveries 884.2
Statutory Transfer Payments ($ millions)
Grants and Contributions:
Old Age Security 34,921.0
Guaranteed Income Supplement 10,605.5
Allowance 545.9
Other Statutory Payments:
Universal Child Care Benefit 2,851.4
Canada Loans and Grants for Students and Apprentices Program 1,316.4
Canada Education Savings Grant 800.0
Canada Disability Savings Program 397.9
Canada Learning Bond 130.0
Wage Earner Protection Program 49.3 5,545.0
Sub-Total 51,617.4
Canada Pension Plan benefits 41,633.4
Employment Insurance benefits
Part I 16,080.0
Part II 2,073.6 18,153.6
Other Specified Purpose Accounts 24.9*
Total Statutory Transfer Payments 111,429.3
* This amount includes payments related to Government Annuities Account and the Civil Service Insurance Fund.

The figure below illustrates the departmental spending trend from 2012–13 to 2017–18. From 2012–13 to 2014–15, total spending includes all Parliamentary appropriations and revenue sources, Main Estimates and Supplementary Estimates. From 2015–16 to 2017–18, total spending represents planned spending.

ESDC’s spending trend graph: description follows
Text description of Departmental Spending Trend Graph
Actual Spending Forecast Spending Planned Spending
2012-13 2013-14 2014-15 2015-16 2016-17* 2017-18*
Sunsetting Programs - - - - - -
Statutory 99,393,013,752 102,848,143,370 107,808,397,886 112,816,439,699 118,493,788,388 124,287,852,456
Voted ** 4,464,524,148 4,082,323,701 4,459,779,149 3,973,978,014 3,693,112,191 3,611,721,651

* Following the Order-in-Council amending the Canadian Passport Order (P.C. 2013-541) and the Public Service Rearrangement and transfer of duties Act (P.C. 2013-540) in May 2013, the responsibilities for Passport Operations were transferred to ESDC as of July 2, 2013. Resources for passport services were approved December 5, 2013 from 2013–14 to 2015–16. As the resources are sunsetting in 2015–16, the Department will seek vote-netting authorities from Treasury Board in 2015–16 for the delivery of passport services for 2016–17 and future years. Final amounts have yet to be finalized.

** Voted expenditures include vote-netted revenues.

The overall increase in spending of $24.0 billion from 2012–13 to 2017–18 can mainly be explained by increases to Canada Pension Plan benefits, Old Age Security payments and Employment Insurance benefits.

Planned Canada Pension Plan benefits are at $46.3 billion in 2017–18, an increase of $10.7 billion from the 2012–13 actual spending of $35.6 billion. Old Age Security benefits, including the Guaranteed Income Supplement and Allowances, are expected to reach $51.3 billion in 2017–18, which represents an increase of $11.0 billion from the 2012–13 actual spending of $40.3 billion. Annual increases are associated with a higher number of beneficiaries due to the aging population and planned increases in the average monthly benefits.

Employment Insurance benefits fluctuate every year mainly due to changes in the average unemployment rate. Employment Insurance benefits are expected to reach $19.3 billion in 2017–18, representing an increase of $2.2 billion from the 2012–13 expenditures of $17.1 billion. More specifically, Employment Insurance benefits are expected to increase by $0.3 billion (2.2 percent) from the 2014–15 forecasted spending to the 2015–16 planned spending as a result of expected increases in the average benefit rate due to the increase in the maximum insurable earnings, which is partially offset by a decrease in the number of beneficiaries due to an improving labour market.

Estimates by Vote

For information on Employment and Social Development Canada’s organizational appropriations, consult the 2015–16 Main Estimates on the Treasury Board of Canada Secretariat website. Footnote 5

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