2016–17 Report on Plans and Priorities - Section I: Organizational Expenditure Overview

Organizational Profile

Appropriate Ministers:

The Honourable Jean-Yves Duclos

The Honourable MaryAnn Mihychuk

The Honourable Carla Qualtrough

Institutional Heads:

Ian Shugart

Deputy Minister of Employment and Social Development

Ministerial Portfolio:

Minister of Families, Children and Social Development

Minister of Employment, Workforce Development and Labour

Minister of Sport and Persons with Disabilities

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.

The Department 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 delivers ESDC’s programs to citizens, as well as other Government of Canada programs and services.

The Minister of Families, Children and Social Development, the Minister of Employment, Workforce Development and Labour and the Minister of Sport and Persons with Disabilities are responsible for this organization.

Responsibilities

To fulfill its mission, the Department is responsible for:

  • 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 those unemployed due to job loss, illness or caregiving responsibilities;
  • helping Canadians with distinct needs such as Indigenous peoples, persons with disabilities, homeless people, travellers and recent immigrants;
  • overseeing federal labour responsibilities; and
  • delivering programs and services on behalf of other departments and agencies.
ESDC assists millions of Canadians each year*
  • 82.3 million visits to the Service Canada website
  • Close to 2 million calls answered by 1 800 O-Canada agents
  • 8.2 million in-person visits to Service Canada centres
  • 4.9 million passports issued
  • 2.8 million applications processed for Employment Insurance (initial and renewal); 663,355 applications processed for the Canada Pension Plan; 835,331 applications processed for Old Age Security
  • 23.2 million payments issued for Employment Insurance (initial and renewal); 62.5 million payments issued for the Canada Pension Plan; 66.7 million payments issued for Old Age Security
  • 634,000 full-time post-secondary students received federal student financial assistance, which includes students who received a Canada Student Loan, a Canada Student Grant and/or those who benefited from an in-study interest subsidy
  • 379,120 students withdrew $3.04 billion from their Registered Education Savings Plans to help fund their post-secondary education
  • 95 percent of labour disputes were settled as part of the collective bargaining process

* Actual results are for reference year 2014-15.

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 (OAS);
  • the Canada Pension Plan (CPP);
  • Employment Insurance (EI);
  • Canada Student Loans and Grants;
  • the Canada Education Savings Program;
  • the Wage Earner Protection Program; and
  • passport services.
Key service standard expectations for 2016–17
  • 80% of EI benefit payments or non-payment notifications issued within 28 days of filing
  • 90% of OAS basic benefits paid within the first month of entitlement
  • 90% of CPP retirement benefits paid within the first month of entitlement
  • 80% of EI, CPP, OAS and Employer Contact Centre calls answered by an agent within 10 minutes
  • 95% payment accuracy for EI, CPP and OAS
  • 90% of grants and contributions proposals are acknowledged within 21 calendar days of receiving an application package
  • 90% of contribution payments are processed within 28 calendar days of receiving a completed claim package for approved contribution projects
  • 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 ensuring safe, fair and productive workplaces and cooperative workplace relations in the federal jurisdiction and achieves this through 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.

588 points of Service (as of december 31, 2015)
588 Points of Service in Canada: description follows
Text description of 588 Points of Service

Western Canada and Territories:

  • 97 Service Canada Centres including: 60 Passport Receiving Agents.
  • 115 Scheduled Outreach Sites
  • 10 Passport Offices

Ontario

  • 91 Service Canada Centres indluding: 38 Passport Receiving Agents
  • 76 Scheduled Outreach Sites
  • 13 Passport Offices

Quebec

  • 75 Service Canada Centres including: 24 Passport Receiving Agents
  • 18 Scheduled Outreach Sites
  • 6 Passport Offices

Atlantic Canada

  • 57 Service Canada Centres including: 29 Passport Receiving Agents
  • 27 Scheduled Outreach Sites
  • 3 Passport Offices

Total

  • 320 Service Canada Centres
  • 236 Scheduled Outreach Sites
  • Passport Receiving Agents (151 of the 320 Service Canada Centres)
  • 32 Passport Offices

The organization also serves the needs of Canadians online through Canada.ca, servicecanada.gc.ca and 13 other websites, as well as through its My Service Canada Account and by telephone through 1 800 O-Canada and its network of specialized call centres. Through Service Canada’s in-person services, the Department helps Canadians access departmental programs as well as other Government of Canada programs and services at 588 points of service across the country (320 Service Canada Centres, 236 Scheduled Outreach sites and 32 Passport Offices).

Finally, through grants and contributions (Gs & Cs), 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

Employment and Social Development Canada’s Program Alignment Architecture is presented below. It lists the programs offered by the Department that are designed to support the achievement of its four strategic outcomes.

  • 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 Student Loans and Grants and Canada Apprentice Loans 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

Organizational Priorities

Strategic Direction: Develop economic and social policies and programs that support and improve the well-being of families, children and vulnerable groups.

Priority 1: Strengthen income security programs and services, and work with provinces and territories in reducing poverty.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Increase the Guaranteed Income Supplement (GIS) for low-income seniors living alone and cancel the increase in age eligibility (from 65 to 67) for Old Age Security (OAS), working with the provinces and territories to ensure a coordinated approach for seniors. April 2016 March 2017 4.1.1
Support Statistics Canada in developing a new Seniors Price Index and undertake legislative and operational changes needed to use the new measure to index OAS payments. April 2016 TBD 4.1.1
Support Finance Canada in developing options to enhance the Canada Pension Plan, consult with Canadians and lead legislative changes required to implement. April 2016 TBD 4.1.2
Renew the Canada Pension Plan Disability Program to ensure the program is responsive to the needs of Canadians with severe and prolonged disabilities. April 2016 TBD 4.1.3
Develop a Canadian Poverty Reduction Strategy that will align with and support existing provincial and municipal poverty reduction strategies.
  • Set targets to reduce poverty, measure and publicly report on progress.
  • In support of the Strategy and in response to the federal report “Fairness at Work: Federal Labour Standards in the 21st Century,” develop initiatives that will promote good jobs and decent work.
April 2016 TBD 4.2.2.1

3.1

4.2
Work with the Department of Finance, building on the existing Canada Child Tax Benefit and the National Child Benefit Supplement, to design and implement the Canada Child Benefit (CCB) and replace the Universal Child Care Benefit. April 2016 TBD 4.2.4

Priority 2: Develop social policy initiatives that address the needs of families and of vulnerable groups, support communities in the development of social infrastructure, and advance solutions to social issues through innovative approaches.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Work on the development and implementation of a Social Infrastructure Program that will include affordable housing, early learning and child care and cultural and recreational infrastructure. Initiatives under this program will include:

  • supporting the development of a strategy to re-establish the Government’s role in affordable housing; and
  • providing communities the money they need for Housing First initiatives that help homeless Canadians find stable housing.
April 2016

April 2016
TBD

TBD
4.1 and 4.2

4.2.1
Develop an Early Learning and Childcare Framework in consultation with provinces and territories and Indigenous peoples. April 2016 TBD 4.1 and 4.2
Lead an engagement process with Canadians with disabilities and a broad range of other stakeholders and partners, and provide policy analysis to develop a Canadians with Disabilities Act that will ensure greater accessibility and remove barriers for Canadians with disabilities. April 2016 TBD 4.1
Begin an engagement process to develop a social innovation and social finance strategy that will focus on testing and implementing innovative initiatives and tools that advance solutions to social issues in communities. April 2016 TBD 4.2

Strategic Direction: Transform employment, workforce development and labour policies and programs to address the needs of all Canadians, and support inclusion.

Priority 3: Develop and implement policies, programs and services that support workers and employers, and work with provinces and territories to respond to the realities of today’s labour market.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Provide enhanced Employment Insurance supports and help Canadians find good-quality employment. April 2016 TBD 2.1

2.1.1
In collaboration with other federal departments:

  • repeal Bills C-377 and C-525;
  • implement a modern Fair Wages Policy; and
  • propose initiatives to ensure that federal institutions are workplaces free from harassment and sexual violence.
April 2016 TBD 3.1.1

3.1.2.1
Develop proposals to provide more generous and flexible leave for caregivers and more flexible parental leave. April 2016 TBD 3.1.3.1
Develop amendments to the Canada Labour Code to allow workers in federally regulated workplaces to formally request flexible work arrangements, to provide for enhanced leaves and to expand compliance measures. April 2016 TBD 3.1.3.1

Priority 4: Strengthen training and access to post-secondary education and support individuals, including youth and those from vulnerable groups, in acquiring the skills and information they need to participate in the labour market.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Improve opportunities for youth to acquire good-quality and permanent jobs. April 2016 TBD 2.1

2.1.6, 2.1.14 and 2.1.15
Support the development of a skilled and well-prepared workforce by improving workers’ access to good-quality training that provides pathways to good careers. April 2016 TBD 2.1

2.1.2–7 and 2.1.15
Improve labour market outcomes for Indigenous peoples by supporting economic development and job creation. April 2016 TBD 2.1

2.1.9, 2.1.10 and 2.1.11
Improve labour market outcomes for new Canadians by supporting the integration of immigrants and refugees into the labour market. April 2016 TBD 2.1

2.1.17
In collaboration with partnering provinces and territory, explore options to make post-secondary education more affordable for students from low- and middle-income families, including reviewing the eligibility thresholds and amounts of the Canada Student Grant, and revision of income thresholds associated with the Repayment Assistance Plan. April 2016 TBD 2.2.1
In collaboration with stakeholders, promote the benefits of education savings to all Canadians through Registered Education Savings Plans and improve accessibility to the Canada Learning Bond for low-income families. April 2016 TBD 2.2.2

Strategic Direction: Implement a service strategy to design and deliver client-focused, convenient and secure services.

Priority 5: Develop and implement digital tools and automate processes wherever possible across all Employment and Social Development Canada services so Canadians have timely, accurate and responsive access to the information they need and can access all services using digital self-service.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Improve the client service experience by:

  • implementing improvements to digital services (self-serve options);
  • supporting service integration across channels; and
  • improving client feedback mechanisms.
Carry-over March 2017 1.1.2
Continue implementing the OAS Service Improvement Strategy, developing proactive and automatic enrolment processes and streamlining applications through a combination of client and service research, citizen-centred design and user experience testing, while migrating older legacy systems to the newer CPP platform to allow for further integration of processing and expansion of eServices. September 2013 March 2020 4.1.1
Implement CPP Service Improvement Strategies by: enhancing electronic services and streamlining applications through a combination of client and service research, citizen-centred design and user experience testing; increasing the number of online applications; and increasing processing automation. April 2015 March 2019 4.1.2

4.1.3
Complete the last phase of the EI Automation Agenda, reducing the level of manual effort for staff and enhancing self-service functionality for clients, further increasing the efficiency and effectiveness of the EI processing model. January 2015 December 2016 2.1.1
Plan the Benefits Delivery Modernization to introduce a target state service delivery model that will result in increased self-service and automation across benefit programs. April 2014 April 2017 2.1.1

4.1.1, 4.1.2 and 4.1.3
Modernize the Government of Canada’s web presence and migrate Government of Canada web content and that of other Government of Canada institutions to the new Canada.ca. Carry-over March 2017 1.1.2
Implement the Call Centres Improvement Strategy by working with Shared Services Canada on the acquisition of a common call centre platform for the Government of Canada. April 2013 February 2018 Links to 21 sub-programs under: 1.1, 1.2, 2.1, 2.2, 3.1, 4.1, 4.2

Priority 6: Build and connect user-friendly infrastructure across services and other departments, working with other government departments to develop a secure single sign-on so clients can access bundled and connected services seamlessly across channels.

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Work with Immigration, Refugees and Citizenship Canada on:

  • modernizing passport services by developing a project roadmap which includes a new service delivery model; and
  • development of a Vital Events Linkages solution.
April 2016 TBD 1.2.1
Work with the Canada Revenue Agency (CRA) to provide clients with access to both My Service Canada Account and CRA My Account through a single log in. October 2015 March 2017 1.1.2 and 1.2.2
Advance the development of an administrative proposal to improve Employment Insurance speed of pay and reduce burden on employers and claimants. April 2016 TBD 2.1.1

Priority 7: Organize for delivery on the service management vision

Key Supporting Initiatives

Planned Initiatives Start Date End Date Link to Department’s Program Alignment Architecture
Complete the Inventory Reduction Strategy to reduce the inventory of Employment Insurance claims to levels that will allow the service delivery model to achieve its built-in efficiencies and meet annual speed of payment target of 80%. October 2014 September 2016 2.1

2.1.1
Strengthen pensions workload management to address ongoing workload pressures associated with aging of the population. April 2016 TBD 4.1.1

4.1.2

4.1.3

Strategic Direction: Strengthen internal infrastructure to support efficient, cost-effective and secure operations in the organization.

See Section II, Internal Services for further details on priorities and initiatives that support this Strategic Direction.

For more information on organizational priorities, see the Ministers’ mandate letters on the Prime Minister of Canada’s website.

Risk Analysis

ESDC has identified the following three key corporate risk areas that could have an impact on the Department’s ability to meet the objectives outlined in the 2016-17 plans and priorities.

Risk Risk Response Strategies Link to Program Alignment Architecture
Privacy/Security of Personal Information

There is an inherent risk of privacy breach that could have a significant impact on affected citizens given the nature of the Department's work and the need for a very high level of security safeguards.
  • Continue to ensure robust privacy policies and processes and a strong approach to privacy management are in place.
  • Use Shared Services Canada Internet gateways to adequately monitor and protect departmental networks.
  • Ensure strong communications to staff on a variety of security requirements, including the safeguarding of information with a view to increasing awareness.
  • Portfolio mission-critical services and their supporting IT applications and services are defined; each with corresponding business and IT service continuity plans developed and verified.
  • Physical and digital vulnerabilities are consistently identified and assessed against business impact and employee and public safety, resulting in proactive remediation plans
Strategic Outcome 1: Government-wide service excellence

Program 5.1: Internal Services
Human Resources (HR) Management

Given high retirement/attrition rates, changing skillsets and capacity concerns, there is a risk that the Department will not be able to sustain a sufficient workforce or attract skilled employees with the appropriate competencies to meet current and future organizational needs.
  • Continue to integrate workforce planning into business planning to recruit skilled resources and strengthen workforce capacity.
  • Implement initiatives to enhance leadership development, recruitment and staffing, official languages, learning and mental health.
Strategic Outcome 1: Government-wide service excellence

Program 5.1: Internal Services
Information technology (IT) sustainability

Given the constantly evolving landscape of Information Technology (IT), there is a need for the Department to meet Canadians’ expectations of GoC services by continuing to rapidly advance technology while protecting private information. With this, there is a risk that IT may not be able to continuously transform, innovate, re-skill and invest at the nimble and flexible pace required to support ESDC programs and services.

Through the use of the Departmental Business Capability Model and sound Application Portfolio Management practices, ESDC will:

  • rationalize IT investments while ensuring alignment to strategic priorities for a timely and effective roll out of new online service delivery platforms; and
  • continue to strengthen business continuity planning.

Strategic Outcome 1: Government-wide service excellence

Strategic Outcome 2: A skilled, adaptable and inclusive labour force and an efficient labour market

Strategic Outcome 4: Income security, access to opportunities and well-being for individuals, families and communities

Program 5.1: Internal Services

Risk Narrative

Employment and Social Development Canada (ESDC) continues to operate in an ever-changing environment characterized by significant demographic changes in Canadian society, global economic conditions that impact social and economic opportunities for Canadians, and rising service expectations.

ESDC’s risk environment is influenced by these external factors as well as the Department's mandate, objectives and activities, and broader government policies, legislation and priorities. Combined with the varied range of programs and services comprising the Department’s portfolio, these elements pose a variety of risks that are dynamic and complex.

Expectations regarding government services have increased as Canadians routinely access government and other services online and are able to compare their experiences. As the Department develops tools and platforms to expand access to online services and content, it must continue to uphold a high level of security and protection of information. To protect personal information, ESDC has devoted resources to the modernization of its privacy policies and processes as well as to strengthening the overall approach to privacy management, and security of ESDC information holdings. The Department has also increased its communication to staff to increase awareness and encourage the use of best practices.

To meet these rapidly evolving needs, ESDC must also support a workforce in the development of appropriate skillsets, and the technical expertise required to provide services in a variety of formats/channels, including online services. Through the implementation of the 2015–20 Workforce Strategy and annual workforce action plans, ESDC will undertake initiatives and activities to support the maintenance of a skilled and diverse workforce ready to meet current and future needs.

In addition, supporting a responsive and flexible IT infrastructure is necessary to the maintenance and expansion of online services. Through collaboration with a number of departments, ESDC continues to invest in IT enhancements that will improve online service delivery channels, while maintaining a high level of security. Through on-going business continuity planning, ESDC will safeguard the continued availability of services that are critical to the economic well-being of Canadians and the effective functioning of government. Ongoing investments to modernize the Department’s IT infrastructure and strong governance structures will assist in timely and effective implementation of secure, interactive online services.

Planned Expenditures

Budgetary Financial Resources (Planned Spending - dollars)*

2016–17

Main Estimates
2016–17

Planned Spending
2017–18

Planned Spending
2018–19

Planned Spending
61,637,881,808 128,078,551,139 133,440,461,764 139,428,408,553
* Employment Insurance and Canada Pension Plan benefits are excluded from the 2016–17 Main Estimates, while they are included in the 2016–17, 2017–18 and 2018–19 Planned Spending. The Employment Insurance Operating (EIO) Account and the Canada Pension Plan are Specified Purpose Accounts. The transactions of these accounts are to be accounted for separately.

Human Resources (Full-Time Equivalents - FTEs)

2016–17* 2017–18* 2018–19
20,881 17,562 17,562
** The FTE figures reported above reflect a reduction mainly associated with passport services (total of 2,438 FTEs). FTEs for passport services were approved for 2016–17 and are not included in 2017–18 and 2018–19. The Department will seek authorities from Treasury Board for the delivery of passport services for 2017–18 and future years.

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

Strategic Outcomes, Programs and Internal Services 2013–14

Expenditures**
2014–15 Expenditures** 2015–16

Forecast Spending
2016–17

Main Estimates
2016–17

Planned Spending
2017–18 Planned Spending 2018–19

Planned Spending
Strategic Outcome 1: Government-wide service excellence
Program 1.1: Service Network Supporting Government Departments 56,155,311 55,744,363 62,989,263 59,958,885 59,958,885 59,958,885 57,475,129
Program 1.2: Delivery of Services for Other Government of Canada Programsb 114,011,116 157,236,664 174,570,288 164,172,167 164,172,167 1,691,223 1,694,345
Sub-total 170,166,427 212,981,027 237,559,551 224,131,052 224,131,052 61,650,108 59,169,474
Strategic Outcome 2: A skilled, adaptable and inclusive labour force and an efficient labour market
Program 2.1: Skills and Employmentc 19,798,499,077 20,440,879,133 21,788,592,120 2,436,178,048 22,187,663,325 22,318,244,911 22,755,175,887
Program 2.2: Learningd 2,194,839,183 2,555,842,600 2,538,525,756 2,479,065,886 2,479,065,886 2,616,586,101 2,725,682,081
Sub-total 21,993,338,260 22,996,721,733 24,327,117,876 4,915,243,934 24,666,729,211 24,934,831,012 25,480,857,968
Strategic Outcome 3: Safe, fair and productive workplaces and cooperative workplace relations
Program 3.1: Laboure 269,144,868 248,564,407 290,845,762 276,475,615 276,475,615 276,120,673 276,120,673
Sub-total 269,144,868 248,564,407 290,845,762 276,475,615 276,475,615 276,120,673 276,120,673
Strategic Outcome 4: Income security, access to opportunities and well-being for individuals, families and communities
Program 4.1: Income Securityf 79,787,670,175 83,569,177,338 88,489,280,726 49,194,616,913 92,909,168,672 97,980,126,626 103,347,698,536
Program 4.2: Social Developmentg 2,992,893,293 2,940,137,196 7,869,879,588 7,933,212,853 7,933,212,853 8,002,511,370 8,083,184,061
Sub-total 82,780,563,468 86,509,314,534 96,359,160,314 57,127,829,766 100,842,381,525 105,982,637,996 111,430,882,597
Support to achieve all Strategic Outcomes
Internal Servicesh 949,352,111 899,807,522 935,409,467 860,183,573 860,183,573 798,068,146 798,072,404
Other Costi*** 767,901,937 1,064,277,814 1,234,525,833 - 1,208,650,163 1,387,153,829 1,383,305,437
Vote-Netted Revenues - - - (1,765,982,132) - - -
Sub-total 767,901,937 1,064,277,814 1,234,525,833 (1,765,982,132) 1,208,650,163 1,387,153,829 1,383,305,437
Totala 106,930,467,071 111,931,667,036 123,384,618,803 61,637,881,808 128,078,551,139 133,440,461,764 139,428,408,553

* Employment Insurance and Canada Pension Plan benefits are excluded from the 2016–17 Main Estimates, while they are included in the 2013–14 and 2014–15 expenditures, the 2015–16 forecast spending, the 2016–17, 2017–18 and 2018–19 planned spending. Employment Insurance benefits are shown under the Skills and Employment program (Employment Insurance and Labour Market Development Agreements sub-programs) and Canada Pension Plan benefits are under the Income Security program (Canada Pension Plan and Canada Pension Plan Disability Benefits sub-programs).

** For comparative purposes, 2013–14 and 2014–15 actual expenditures 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.

Budgetary Planning Summary for Strategic Outcomes and Programs

aThe overall increase in spending of $32.5 billion from 2013–14 to 2018–19 can mainly be explained by increases to Canada Pension Plan benefits, Old Age Security payments, the Universal Child Care Benefit and Employment Insurance benefits (for more details, see Departmental Spending Trend) Planned spending will change when new program authorities are implemented for the Canada Child Benefit, which will build on the existing Canada Child Tax Benefit and the National Child Benefit Supplement and will replace the Universal Child Care Benefit.

bThe significant reduction in planned spending from 2016–17 to 2017–18 for Delivery of Services for Other Government of Canada Programs is mainly explained by the sunsetting in 2016–17 of passport services funding. The Department will have to request funding for 2017–18 and future years, including FTEs.

cUnder Skills and Employment, the expected increase of $3.0 billion from 2013–14 to 2018–19 is mainly due to an increase of $3.1 billion in Employment Insurance benefits. Employment Insurance benefits are expected to increase by $432 million (+2.5%), from $17.2 billion for the 2015–16 forecasted spending to $17.7 billion in 2016–17 planned spending. The increase in regular benefits is due to a 2.9% increase in the average weekly benefit rate partially offset by a 1.4% decrease in the number of beneficiaries.

dSpending under Learning is expected to increase by $0.5 billion between 2013–14 and 2018–19 mainly due to an increase of $0.5 billion to the Canada Student Loans and Grants and Canada Apprentice Loans Program, including the Canada Education Savings Grant and the Canada Learning Bond.

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

fThe increase of $23.6 billion from 2013–14 to 2018–19 in planned spending for Income Security is mainly related to expected increases to Canada Pension Plan benefits ($11.2 billion) and Old Age Security program payments ($12.1 billion).

gSocial Development planned spending for 2018–19 is expected to reach $8.1 billion, representing an increase of $5.1 billion from the 2013–14 actual expenditures, mostly due to an increase in Universal Child Care Benefit payments. Planned spending will change when new program authorities are implemented for the Canada Child Benefit, which will build on the existing Canada Child Tax Benefit and the National Child Benefit Supplement and will replace the Universal Child Care Benefit.

hThe decrease of $0.2 billion in Internal Services spending between 2013–14 and 2018–19 is mainly due to internal efficiencies and savings identified as part of the 2010 Strategic Review, Budget 2012 and the sunsetting in 2013–14 of the New Gatineau Tower funding.

iThe increase of $0.6 billion to Other Costs is mainly related to an increase in the Canada Pension Plan Investment Board ($0.4 billion) charges to the Canada Pension Plan.

Alignment of Spending with the Whole-of-Government Framework

Alignment of 2016-17 Planned Spending with the Whole-of-Government Framework Footnote 4 (dollars)

Strategic Outcomes Programs Spending Areas Government of Canada Outcomes 2016–17

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
59,958,885
Program 1.2:

Delivery of

Services for Other Government of Canada Programs
Government Affairs A transparent,

accountable and responsive federal

government
164,172,167
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 22,187,663,325
Program 2.2: Learning Economic Affairs An innovative and

knowledge-based

economy
2,479,065,886
Strategic Outcome 3: Safe, fair and productive workplaces and cooperative workplace relations Program 3.1:

Labour
Economic Affairs A fair and secure marketplace 276,475,615
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 92,909,168,672
Program 4.2:

Social Development
Social Affairs A diverse society that promotes linguistic duality and social inclusion 7,933,212,853

Total Planned Spending by Spending Area (dollars)

Spending Areas Total Planned Spending
Economic Affairs 117,852,373,498
Social Affairs 7,933,212,853
Government Affairs 224,131,052

Departmental Spending Trend

For 2016-17, the Department has planned expenditures on programs and services of $128.1 billion. Of that amount, $122.4 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 Student Loans and Grants and Canada Apprentice Loans Program.

CONSOLIDATED TOTAL: $128,078.5 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 48,406.7 37.8%
Canada Pension Plan 43,714.6 34.2%
Employment Insurance 19,728.5 15.4%
Universal Child Care Benefit / Canada Student Loans / Other Statutory Payments 10,548.9 8.2%
Gross Operating Expenditures 2,778.8 2.2%
Voted Grants and Contributions 1,692.4 1.3%
Other 1,208.7 0.9%
Consolidated Total $28,078.5 M 100.0%
Employment and Social Development Canada - Gross Expenditures

($ millions)
Budgetary
Net Operating Costs 1,012.6
Add Recoveries in relation to:
Canada Pension Plan 242.8
Employment Insurance Operating Account 1,218.7
Workers' Compensation 114.6
Passport Services 176.1
Other 13.9 1,766.1
Gross Operating Costs 2,778.7
Voted Grants and Contributions 1,692.4
Total Gross Expenditures 4,471.1
Other - Workers' Compensation and EI/CPP Charges and Recoveries 1,208.7
Statutory Transfer Payments ($ millions)
Grants and Contributions:
Old Age Security 37,086.5
Guaranteed Income Supplement 10,804.4
Allowance 515.8
Other Statutory Payments:
Universal Child Care Benefit 7,697.3
Canada Loans and Grants for Students and Apprentices Program 1,357.3
Canada Education Savings Grant 824.0
Canada Disability Savings Program 465.1
Canada Learning Bond 133.0
Wage Earner Protection Program 49.3 10,526.0
Sub-Total 58,932.7
Canada Pension Plan benefits 43,714.6
Employment Insurance benefits
Part I 17,652.0
Part II 2,076.5 19,728.5
Other Specified Purpose Accounts 22.9*
Total Statutory Transfer Payments 122,398.7
* This amount includes payments related to Government Annuities Account and the Civil Service Insurance Fund.

The figure below illustrates the departmental spending trend from 2013–14 to 2018–19. From 2013–14 to 2015–16, total spending includes all Parliamentary appropriations and revenue sources, Main Estimates and Supplementary Estimates. From 2016–17 to 2018–19, total spending represents planned spending.

Departmental spending trend from 2013-14 to 2018-19
ESDC’s spending trend graph: description follows
Text description of Departmental Spending Trend Graph
Actual Spending Forecast Spending Planned Spending
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Sunsetting Programs - - - - - -
Statutory 102,848,143,370 107,738,209,017 119,097,734,900 124,127,125,603 129,833,127,511 135,834,105,657
Voted * 4,082,323,701 4,193,458,019 4,286,883,903 3,951,425,536 3,607,334,253 3,594,302,896
Total 106,930,467,071 111,931,667,036 123,384,618,803 128,078,551,139 133,440,461,764 139,428,408,553

* Voted expenditures include vote-netted revenues, as well as debt write-offs in 2014-15 and 2015-16.

The overall increase in spending of $32.5 billion from 2013–14 to 2018–19 can mainly be explained by increases to Canada Pension Plan benefits, Old Age Security payments, the Universal Child Care Benefit and Employment Insurance benefits. Planned spending will change when new program authorities are implemented for the Canada Child Benefit, which will build on the existing Canada Child Tax Benefit and the National Child Benefit Supplement and will replace the Universal Child Care Benefit.

Planned Canada Pension Plan benefits are at $48.5 billion in 2018-19, an increase of $11.2 billion from the 2013-14 actual spending of $37.3 billion. Old Age Security benefits, including the Guaranteed Income Supplement and Allowances, are expected to reach $53.9 billion in 2018-19, which represents an increase of $12.1 billion from the 2013-14 actual spending of $41.8 billion. Annual increases are associated with a higher number of beneficiaries due to the aging population and planned increases in the average monthly benefits.

An increase of $5.2 billion in the Universal Child Care Benefit from the actual spending of $2.7 billion in 2013–14 to a planned spending of $7.9 billion in 2018–19 is due to Budget 2015 enhancements. Planned spending will change when new program authorities are implemented for the Canada Child Benefit, which will build on the existing Canada Child Tax Benefit and the National Child Benefit Supplement and will replace the Universal Child Care Benefit.

Employment Insurance benefits fluctuate every year mainly due to changes in the unemployment rate. Employment Insurance benefits are expected to reach $20.4 billion in 2018–19, representing an increase of $3.1 billion from the 2013–14 expenditures of $17.3 billion. More specifically, Employment Insurance benefits are expected to increase by $0.4 billion (2.5 percent) from the 2015–16 forecasted spending to the 2016–17 planned spending, largely reflecting 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.

Estimates by Vote

For information on Employment and Social Development Canada’s organizational appropriations, consult the 2016-17 Main Estimates. Footnote 5

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