Spending and human resources

From: Employment and Social Development Canada

Official title: Employment and Social Development Canada, 2018–19 Departmental Plan

On this page

Planned spending

Planned expenditures

Financial resources

Financial resources (dollars)Table note a
Details Main estimates Planned spending
2018–19 2018–19 2019–20 2020–21
Planned gross spending 68,852,702,143 132,192,657,884 138,363,247,896 144,448,902,303
Planned spending in specified purpose accounts 0 69,339,955,741 72,856,994,936 76,460,452,004
Planned revenues netted against expenditures 1,927,232,359 1,927,232,359 1,654,330,920 1,639,748,363
Planned net spending 60,925,469,784 60,925,469,784 63,851,922,040 66,348,701,936

Departmental spending trend

For 2018–19, the Department has gross planned expenditures on programs and services of $132.2 billion. Of that amount, $125.4 billion directly benefit Canadians through statutory transfer payment programs such as Employment Insurance, the Canada Pension Plan, Old Age Security and the Canada Loans and Grants and Canada Apprentice Loans Program.

Figure 1: ESDC 2018–19 consolidated planned spending by category
Graph of departmental gross planned expenditures on programs and services. Text version following below.
Figure 1 - Text description
Details 2018–19 Planned spending
Amount (in millions of dollars) Percent
Old Age Security/Guaranteed Income Supplement/Allowance 53,667.0 40.7%
Canada Pension Plan 47,012.5 35.6%
Employment Insurance 20,924.1 15.8%
Canada Student Loans / Other statutory payments 3,754.1 2.8%
Gross operating expenditures 3,010.5 2.3%
Voted grants & contributions 2,439.8 1.8%
Other - Workers' compensation and EI/CPP charges 1,384.6 1.0%
Consolidated total 132,192.6 100.0%
ESDC Gross expenditures (in millions of dollars)
Budgetary Amount
Net operating costs 1,083.3
Add recoveries in relation to 1,927.2Table note a
Gross operating costs 3,010.5
Voted grants and contributions 2,439.8
Total gross expenditures 5,450.3
Other – Workers' compensation and EI/CPP charges and recoveries 1,384.6
ESDC Statutory transfer payments (in millions of dollars)
Grants and contributions Amount 
Old Age Security 40,854.8
Guaranteed Income Supplement 12,262.0
Allowance 550.2
Other statutory paymentsTable note a 3,735.4
Sub-total 57,402.4
Canada Pension Plan benefits 47,012.5
Employment Insurance benefitsTable note b 20,924.1
Other specified purpose accounts 18.7Table note c
Total statutory transfer payments 125,357.7
2018–19 Planned gross spending summary
2018–19 Planned gross spending summary (dollars)Table note a
Details 2018–19
Planned gross spending Planned gross spending in specified purpose accounts Planned revenues netted against expenditures Planned net spending
Core responsibilities Core responsibility 1: Social development 718,598,615 0 0 718,598,615
Core responsibility 2: Pensions and benefits 101,826,497,339 47,012,533,751 240,864,504 54,573,099,084
Core responsibility 3: Learning, skills development and employment 26,895,560,973 20,942,844,048 804,409,119 5,148,307,806
Core responsibility 4: Working conditions and workplace relations 292,192,487 0 125,235,000 166,957,487
Core responsibility 5: Information delivery and services for other departments 250,235,842 0 179,860,543 70,375,299
Subtotal 129,983,085,256 67,955,377,799 1,350,369,166 60,677,338,291
Internal services 824,994,686 0 576,863,193 248,131,493
Other costsTable note b 1,384,577,942 1,384,577,942 0 0
Total 132,192,657,884 69,339,955,741 1,927,232,359 60,925,469,784

ESDC’s Financial framework

ESDC has a complex financial structure, with various funding mechanisms used to deliver its mandate. The Department is financed by four main sources of funds:

  1. appropriated funds from the Consolidated Revenue Fund
  2. the Employment Insurance Operating Account
  3. the Canada Pension Plan; and
  4. Crown corporations and other government departments

Planned expenditures related to the Employment Insurance Operating and Canada Pension Plan accounts and planned expenditures that are recovered from Crown corporations and other government departments for the delivery of programs and services on their behalf are excluded from ESDC’s Main and Supplementary Estimates and net planned spending because they are not voted by Parliament.

Employment Insurance and Canada Pension Plan benefits and related administrative costs are charged against revenues earmarked in separate specified purpose accounts. The Employment Insurance program provides financial support and other assistance to eligible workers and is entirely financed by contributions from employees and employers. The Canada Pension Plan is an income security plan which is funded by the contributions of employees, employers and self-employed persons and by the revenue earned on Plan investments. It provides partial income protection in the case of the retirement, disability or death of a contributor to virtually all employed and self-employed persons in Canada, excluding Quebec which operates its own comprehensive pension plan, the Quebec Pension Plan. Administrative costs incurred by ESDC in the delivery of programs related to Employment Insurance and the Canada Pension Plan are charged to their respective specified purpose accounts and reported as revenues netted against expenditures under ESDC.

In addition, departmental costs related to the delivery of programs and services on behalf of other government departments, which are mainly for passport services and the administration of the Government Employee Compensation Act, are also reported as revenues netted against ESDC’s expenditures.

These items are included in ESDC’s gross planned spending to provide readers with the full cost to government of ESDC’s programs and services and present a complete picture of the resources managed by ESDC to deliver its mandate, even if these expenditures are ultimately recorded under separate legal entities.

The sources of funds, including specified purpose accounts, for each of ESDC’s core responsibilities are as follows:

  • Core responsibility 1: Social development
    • Consolidated Revenue Fund
  • Core responsibility 2: Pensions and benefits
    • Consolidated Revenue Fund
    • Canada Pension Plan (in gross planned spending only for Canada Pension Plan benefits and related administrative costs)
  • Core responsibility 3: Learning, skills development and employment
    • Consolidated Revenue Fund
    • Employment Insurance Operating Account (in gross planned spending only for Employment Insurance benefits and related administrative costs)
  • Core responsibility 4: Working conditions and workplace relations
    • Consolidated Revenue Fund
    • Crown corporations and other departments (in gross planned spending only for the administration of the Government Employee Compensation Act)
  • Core responsibility 5: Information delivery and services for other departments
    • Consolidated Revenue Fund
    • other departments (in gross planned spending only mainly for passport services)
  • Internal services
    • Consolidated Revenue Fund
    • Canada Pension Plan (in gross planned spending only for Canada Pension Plan administrative costs)
    • Employment Insurance Operating Account (in gross planned spending only for Employment Insurance administrative costs)
    • other departments (in gross planned spending only mainly for passport services)

Financial highlights

The overall gross increase in spending of $12.3 billion from 2018–19 to 2020–21 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 $52.6 billion in 2020–21, an increase of $5.6 billion from the 2018–19 planned spending of $47.0 billion. Old Age Security benefits, including the Guaranteed Income Supplement and Allowances, are expected to reach $60.1 billion in 2020–21, which represents an increase of $6.4 billion from the 2018–19 planned spending of $53.7 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 $22.3 billion in 2020–21, representing an increase of $1.4 billion from the 2018–19 planned expenditures of $20.9 billion. More specifically, Employment Insurance benefits are expected to increase by $0.3 billion (1.7 percent) from the 2017–18 forecasted spending to the 2018–19 planned spending due to an expected increase in special benefits reflecting the changes announced in Budget 2017. Expenditures on regular benefits are relatively stable, reflecting continued labour market strength.

Those increases are offset by a decrease of $1.2 billion in voted grants and contributions mainly explained by the sun-setting of funding for Early Learning and Child Care, the Workforce Development Agreements and the Homelessness Partnering Strategy.

Planning summary for core responsibilities and internal services (Gross)
Planning summary for core responsibilities and internal services – Gross (dollars)Table note a
Details Expenditures Forecast spending Main estimates Planned spending
2015–16Table note b 2016–17Table note b 2017–18Table note b 2018–19 2018–19 2019–20 2020–21
Core responsibilities Core responsibility 1: Social development 8,961,100,867 2,239,757,375 717,288,775 718,598,615 718,598,615 536,141,594 121,167,835
Core responsibility 2: Pensions and benefits 87,042,524,292 91,631,984,510 96,696,171,534 54,813,963,588 101,826,497,339 107,603,951,388 113,841,526,167
Core responsibility 3: Learning, skills development and employment 24,284,295,030 26,317,816,518 26,796,821,132 5,952,716,925 26,895,560,973 27,482,886,346 27,747,144,106
Core responsibility 4: Working conditions and workplace relations 251,871,310 253,469,223 288,197,556 292,192,487 292,192,487 290,064,404 289,603,465
Core responsibility 5: Information delivery and services for other departments 189,006,088 185,087,756 267,401,146 250,235,842 250,235,842 55,932,238 55,591,874
Subtotal 120,728,797,587 120,628,115,382 124,765,880,143 62,027,707,457 129,983,085,256 135,968,975,970 142,055,033,447
Internal services 892,479,726 876,667,337 897,799,591 824,994,686 824,994,686 796,672,871 792,405,618
Other costsTable note c 1,222,434,781 1,250,037,361 1,391,202,912 0 1,384,577,942 1,597,599,055 1,601,463,238
Revenues netted against expenditures 0 0 0 (1,927,232,359) 0 0 0
Total gross planned spending 122,843,712,094 122,754,820,080 127,054,882,646 60,925,469,784 132,192,657,884 138,363,247,896 144,448,902,303
2018–19 Planned net spending summary (dollars)
Planning summary for core responsibilities and internal services – Net (dollars)Table note a
Details Expenditures Forecast spending Main estimates Planned spending
2015–16Table note a 2016–17Table note a 2017–18Table note a 2018–19 2018–19 2019–20 2020–21
Core responsibilities Core responsibility 1: Social development 8,961,100,867 2,239,757,375 717,288,775 718,598,615 718,598,615 536,141,594 121,167,835
Core responsibility 2: Pensions and benefits 46,108,407,990 48,917,558,758 51,898,071,217 54,573,099,084 54,573,099,084 57,676,983,968 60,098,005,165
Core responsibility 3: Learning, skills development and employment 4,076,678,057 4,689,694,911 5,351,258,732 5,148,307,806 5,148,307,806 5,177,094,270 4,670,543,664
Core responsibility 4: Working conditions and workplace relations 123,719,176 127,697,824 162,297,556 166,957,487 166,957,487 164,829,404 164,368,465
Core responsibility 5: Information delivery and services for other departments 66,701,552 68,508,229 83,011,096 70,375,299 70,375,299 49,030,028 49,026,531
Subtotal 59,336,607,642 56,043,217,097 58,211,927,376 60,677,338,291 60,677,338,291 63,604,079,264 66,103,111,660
Internal services 261,420,378 295,748,607 273,383,107 248,131,493 248,131,493 247,842,776 245,590,276
Total net planned spendingTable note b 59,598,028,020 56,338,965,704 58,485,310,483 60,925,469,784 60,925,469,784 63,851,922,040 66,348,701,936

Departmental spending trend

Figure 2: Departmental spending trend: Employment and Social and Development total consolidated expenditures (in dollars)
Graph showing ESDC Employment and Social and Development total consolidated expenditures for departmental spending trend. Text version following below.
Details Actual spending Forecast spending Planned spending
2015–16 2016–17 2017–18 2018–19 2019–20 2020–21
Statutory 57,237,532,414 53,599,988,764 55,085,146,818 57,808,926,247 60,954,150,115 64,480,077,878
VotedTable note a 2,360,495,606 2,738,976,940 3,400,163,665 3,116,543,537 2,897,771,925 1,868,624,058
Total 59,598,028,020 56,338,965,704 58,485,310,483 60,925,469,784 63,851,922,040 66,348,701,936

Planned human resources

Human resources planning summary for core responsibilities and internal services (full-time equivalents)
Details Actual Forecast Planned
2015–16 2016–17 2017–18 2018–19 2019–20 2020–21
Core responsibilities Core responsibility 1:
Social development
289 309 366 386 252 241
Core responsibility 2:
Pensions and benefits
4,381 4,801 5,075 5,019 3,875 3,506
Core responsibility 3:
Learning, skills development and employment
9,376 10,046 10,506 8,955 8,687 8,649
Core responsibility 4:
Working conditions and workplace relations
645 647 653 673 656 654
Core responsibility 5:
Information delivery and services for other departments
2,376 2,179 2,656 2,738 338 338
Subtotal 17,067 17,982 19,256 17,771 13,808 13,388
Internal services 3,943 3,843 4,328 4,416 4,268 4,238
Total 21,010 21,825 23,584 22,187 18,076 17,626

The overall decrease of 4,561 full-time equivalents (FTEs) from 2018–19 to 2020–21 is mostly explained by the following items:

  • Under Social development, the sun-setting of the Homelessness Partnering Strategy funding in 2018–19 mainly explained the reduction of 145 FTEs from 2018–19 to 2020–21. It is to be noted that since operating requirements for the Strategy were financed within existing resources, 115 FTEs were actually returned to Internal services
  • FTEs under Pensions and benefits are decreasing by 1,513 FTEs from 2018–19 to 2020–21 mainly due to a reduction in resources to address Old Age Security and the Canada Pension Plan workload issues and the Service Improvement Strategies
  • The reduction of 306 FTEs under Learning, skills development and employment is mainly related to the sun-setting of resources for Employment Insurance initiatives announced in Budgets 2016 and 2017, the Youth Employment Strategy and the Temporary Foreign Worker Program
  • The decrease of 19 FTEs under Working conditions and workplace relations is the result of temporary resources that were hired to address the labour standards complaints backlog
  • FTEs under Information Delivery and services to other departments show a decrease of 2,400 FTEs between 2018–19 and 2020–21 as FTEs for the delivery of passport services were approved for 2018–19 only and authorities will be sought from Treasury Board for 2019–20 and future years
  • Under Internal services, the decrease of 178 FTEs is mainly explained by the sun-setting of resources for Old Age Security and Canada Pension Plan workload and Service Improvement Strategies and passport delivery services

Estimates by vote

For information on ESDC’s organizational appropriations, consult the 2018–19 Main estimates.Endnote i

Future-oriented condensed statement of operations

The Consolidated Future-Oriented Condensed Statement of Operations provides a general overview of ESDC’s operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the Consolidated Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis, amounts may differ.

The Consolidated Future-Oriented Condensed Statement of Operations includes the transactions of the Employment Insurance Operating Account, a consolidated specified purpose account which includes revenues credited and expenses charged under the Employment Insurance Act. The accounts of the Employment Insurance Operating Account have been consolidated with those of ESDC and all inter-organizational balances and transactions have been eliminated. However, the Canada Pension Plan is excluded from ESDC's reporting entity because changes to Canada Pension Plan require the agreement of two-thirds of participating provinces and it is therefore not controlled by the Government.

A more detailed Consolidated future-oriented condensed statement of operationsEndnote ii and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on ESDC’s website.

Consolidated future-oriented condensed statement of operations for the year ending March 31, 2019 (dollars)
Financial information 2017–18 Forecast results 2018–19 Planned results Difference
(2018–19 Planned results minus 2017–18 Forecast results)
Total expenses 81,436,569,013 84,297,079,658 2,860,510,645
Total revenues 22,086,746,642 22,899,949,918 813,203,276
Net cost of operations 59,349,822,371 61,397,129,740 2,047,307,369

The increase of $2,047.3 million in the 2018–19 planned results of the net cost of operations, when compared to the 2017–18 forecast results, is due to the following:

  • For expenses, the increase of $2,860.0 million is mainly attributable to:
    • An increase of $2,656.0 million in Pensions and Benefits expenses mainly due to the projected increase in the eligible population of Old Age Security and Guaranteed Income Supplement benefits and an increase related to the Guaranteed Income Supplement Top-Up brought in from Budget 2016
    • An increase of $331.8 million in Learning, Skills Development and Employment expenses mainly due to enhancements to Employment Insurance maternity, parental and caregiver benefits that came into effect in December 2017
  • For revenues, the increase of $813.2 million is mainly attributable to:
    • An increase of $842.7 million in Employment Insurance revenues mainly due to the increase in the premium rate (1.63 in 2017 and 1.66 in 2018) and the projected increase in the total insurable earnings resulting from the expected growth in employment and in the maximum insurable earnings
Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: