Spending and human resources

From: Employment and Social Development Canada

Official title: Employment and Social development Canada, 2019–20 Departmental Plan

Planned Spending

Financial Resources (dollars)
  2019–20
Main Estimates*
2019–20
Planned Spending*
2020–21
Planned Spending
2021–22
Planned Spending
Planned Gross Spending 66,108,023,430 138,293,166,491 144,912,940,887 152,609,135,216
Less: Planned Spending in Specified Purpose Accounts 0 72,185,143,061 76,243,546,104 80,269,600,068
Less: Planned Revenues netted against expenditures 1,671,438,486 1,671,438,486 1,638,435,560 1,634,949,143
Planned Net Spending 64,436,584,944 64,436,584,944 67,030,959,223 70,704,586,005

Note: Please refer to ESDC's Financial Framework for a complete description of the departmental financial profile, including an explanation of gross planned spending.

* Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

For 2019–20, the Department has gross planned expenditures on programs and services of $138.3 billion. Of that amount, $131.0 billion directly benefit Canadians through statutory transfer payment programs such as Employment Insurance, the Canada Pension Plan, Old Age Security, the Canada Student Loans Program and Canada Apprentice Loans, the Canada Education Savings Program and the Canada Disability Savings Program.

Consolidated Total: $138,293.2 million
Chart of insert chart title: description follows
Text description of Figure 1
Details 2019–20 Planned spending
(in millions of dollars) Percent
Old Age Security/Guaranteed Income Supplement/Allowance 56,204.4 40.6%
Canada Pension Plan 49,722.4 36.0%
Employment Insurance 20,756.4 15.0%
Canada Student Loans / Other statutory payments 4,284.8 3.1%
Gross operating expenditures 2,906.0 2.1%
Voted grants & contributions 2,728.8 2.0%
Other - Workers' compensation and EI/CPP charges 1,690.4 1.2%
Consolidated total 138,293.2 100.0%
Employment And Social Development Canada — Gross Expenditures ($ millions)
Budgetary    
Net Operating Costs   1,234.6
Add Recoveries in relation to:    
Canada Pension Plan 266.6  
  Employment Insurance Operating Account 1,279.2  
Workers' Compensation 124.7  
  Government Employee Compensation Act 0.9 1,671.4
Gross Operating Costs   2,906.0
Voted Grants and Contributions   2,728.8
Total Gross Expenditures   5,634.8
Other- Workers' Compensation and    
EI/CPP Charges and Recoveries   1,690.4

*This amount includes $702.8 million in net voted operating expenditures, $214.7 million in contributions to employee benefit plans, $194.5 million for delivery service to the public on behalf of partners under the Department of Employment and Social Development Act, $78.2 million in statutory administrative fees related to Canada Student Loans and Apprentice Loans, $44.0 million in net expenditures for Federal Workers' Compensation and $0.4 million for other items. However, it does not include 2019 Budget Implementation measures included in the 2019–20 Main Estimates.

Statutory transfer payments ($ millions)
Grants and Contributions:    
  Old Age Security    42,754.3
  Guaranteed Income Supplement   12,895.0
  Allowance   555.1
  Other Statutory Payments:    
Canada Student Loans Program    
and Canada Apprentice Loans  2,311.9  
Canada Education Savings Grant 955.0  
Canada Disability Savings Program 767.3  
Canada Learning Bond 185.0  
Wage Earner Protection Program 49.3  
Universal Child Care Benefit 0.3 4,268.8
Sub-Total   60,473.2
Canada Pension Plan Benefits   49,722.4
Employment Insurance Benefits     
     Part I 18,357.0  
     Part II 2,399.4 20,756.4
Other Specified Purpose Accounts   16.0**
Total Statutory Transfer Payments   130,968.0

**This amount includes payments related to the Government Annuities Account and the Civil Service Insurance Fund.

2019–20 Planned Gross Spending Summary (dollars)
Core Responsibilities and Internal Services Planned
gross
spending*
Less: Planned gross spending in specified purpose accounts Less: Planned revenues netted against expenditures Planned net spending
Core Responsibility 1:
Social Development
759,435,703 0 0 759,435,703
Core Responsibility 2:
Pensions and Benefits
107,075,411,089 49,722,402,627 183,696,846 57,169,311,616
Core Responsibility 3:
Learning, Skills Development and Employment
27,402,184,747 20,772,367,777 805,565,446 5,824,251,524
Core Responsibility 4:
Working Conditions and Workplace Relations
298,909,369 0 125,900,000 173,009,369
Core Responsibility 5: Information Delivery and Services for Other Departments 225,074,106 0 0 225,074,106
Subtotal 135,761,015,014 70,494,770,404 1,115,162,292 64,151,082,318
Internal Services 841,778,820 0 556,276,194 285,502,626
Other Costs** 1,690,372,657 1,690,372,657 0 0
Total 138,293,166,491 72,185,143,061 1,671,438,486 64,436,584,944

Notes: Refer to the Department's Financial Framework for a complete description of the departmental financial profile, including explanation of gross planned spending.

* Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

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

ESDC's Financial Framework

The Department 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 (CRF);
  2. The Employment Insurance Operating Account;
  3. The Canada Pension Plan; and
  4. Crown corporations and other government departments for the administration of the Government Employee Compensation Act.

Planned expenditures related to the Employment Insurance Operating Account and the Canada Pension Plan, and planned expenditures that are recovered from Crown corporations and other government departments for the administration of the Government Employee Compensation Act, are excluded from the Department'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 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 the Department in the delivery of programs related to Employment Insurance and Canada Pension Plan are charged to their respective specified purpose accounts and reported as revenues netted against expenditures under the Department.

The Department of Employment and Social Development Act was amended in June 2018 to broaden the Department's mandate to include service delivery to the public with a view to improving services to Canadians. The Department now has the legislative authority to deliver services to the public for partners on a cost-recovery basis as well as to deliver select services for the Government of Canada. As a result, costs related to the delivery of programs and services for other government departments, such as for passport services and were reported in previous years as revenues netted against the Department's expenditures, will now be reported under a new statutory authority.

In addition, departmental costs related to the delivery of programs and services on behalf of other government departments for the administration of the Government Employee Compensation Act is also reported as revenues netted against the Department's expenditures.

These items are included in the Department's gross planned spending to provide readers with the full cost to the government of the Department's programs and services and present a complete picture of the resources managed by the Department 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 the Department's core responsibilities are as follows:

Core Responsibility 1: Social Development

  • Consolidated Revenue Fund

Core Responsibility 2: Pensions and Benefits

  • Consolidated Revenue Fund; and
  • 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; and
  • 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; and
  • Crown corporation 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

Internal Services

  • Consolidated Revenue Fund;
  • Canada Pension Plan (in gross planned spending only for Canada Pension Plan administrative costs); and
  • Employment Insurance Operating Account (in gross planned spending only for Employment Insurance administrative costs).

Financial Highlights

The overall gross increase in spending of $14.3 billion from fiscal year 2019-20 to fiscal year 2021-22 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 $55.6 billion in fiscal year 2021-22, an increase of $5.9 billion from the 2019-20 planned spending of $49.7 billion, mainly attributed to wage and inflation assumptions. Old Age Security benefits, including Guaranteed Income Supplement and Allowances, are expected to reach $63.3 billion in fiscal year 2021-22, which represents an increase of $7.1 billion from the 2019-20 planned spending of $56.2 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 $23.0 billion in fiscal year 2021-22, representing an increase of $2.2 billion from the 2019-20 planned expenditures of $20.8 billion. More specifically, Employment Insurance benefits are expected to increase by $1.1 billion (6.3 percent) from the 2018-19 forecasted spending to the 2019-20 planned spending due to expected increase in both regular and special benefits. The average weekly regular benefit rate and the number of regular benefit beneficiaries will contribute to the increase. In addition, the majority of the increase in special benefits expenditure reflects Budget 2018 changes such as the new five-week EI parental sharing benefit beginning in March 2019.

Those increases are offset by a decrease of $900 million in voted grants and contributions mainly explained by the sunsetting of funding for Early Learning and Child Care, Workforce Development Agreements and the Youth Employment Strategy.

Budgetary planning summary for Core Responsibilities and Internal Services – Gross (dollars)
Core Responsibilities and Internal Services 2016–17* Expenditures 2017–18* Expenditures 2018–19 Forecast spending 2019–20 Main Estimates** 2019–20 Planned Spending** 2020–21 Planned Spending 2021–22 Planned Spending
Core Responsibility 1:
Social Development
2,239,757,375 695,357,869 862,346,232 759,435,703 759,435,703 476,543,837 500,264,555
Core Responsibility 2:
Pensions and Benefits
91,631,984,510 96,051,202,359 101,906,202,872 57,353,008,462 107,075,411,089 113,530,640,317 120,171,303,549
Core Responsibility 3: Learning, Skills Development and Employment 26,317,816,518 26,086,783,929 26,611,889,819 6,629,816,970 27,402,184,747 27,866,496,714 28,900,542,309
Core Responsibility 4: Working Conditions and Workplace Relations 253,469,223 262,029,434 301,585,689 298,909,369 298,909,369 297,274,487 296,871,174
Core Responsibility 5: Information Delivery and Services for Other Departments 185,087,756 228,253,902 263,531,020 225,074,106 225,074,106 224,516,425 221,729,838
Subtotal 120,628,115,382 123,323,627,493 129,945,555,632 65,266,244,610 135,761,015,014 142,395,471,780 150,090,711,425
Internal Services 876,667,337 925,244,173 889,381,271 841,778,820 841,778,820 828,389,600 829,478,477
Other Costs*** 1,250,037,361 1,380,064,755 1,468,241,432 0 1,690,372,657 1,689,079,507 1,688,945,314
Revenues netted against expenditures 0 0 0 (1,671,438,486) 0 0 0
Total Gross Planned Spending 122,754,820,080 125,628,936,421 132,303,178,335 64,436,584,944 138,293,166,491 144,912,940,887 152,609,135,216

Notes:

Refer to the Department's Financial Framework for a complete description of the departmental financial profile, including explanation of gross planned spending.

* For comparative purposes, 2016-17 and 2017-18 actual expenditures have been restated according to the new Departmental Results Framework approved in 2018-19.

** Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

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

Budgetary planning summary for Core Responsibilities and Internal Services — Net (dollars)
Core Responsibilities and Internal Services 2016–17* Expenditures 2017–18* Expenditures 2018–19 Forecast spending 2019–20 Main Estimates** 2019–20 Planned Spending** 2020–21 Planned Spending 2021–22 Planned Spending
Core Responsibility 1: Social Development 2,239,757,375 695,357,869 862,346,232 759,435,703 759,435,703 476,543,837 500,264,555
Core Responsibility 2: Pensions and Benefits 48,917,558,758 51,362,618,315 54,586,997,358 57,169,311,616 57,169,311,616 60,730,874,424 64,432,934,599
Core Responsibility 3: Learning, Skills Development and Employment 4,689,694,911 5,416,434,813 5,976,446,602 5,824,251,524 5,824,251,524 5,152,876,232 5,102,586,976
Core Responsibility 4: Working Conditions and Workplace Relations 127,697,824 126,251,634 175,685,689 173,009,369 173,009,369 171,374,487 170,971,174
Core Responsibility 5: Information Delivery and Services for Other Departments 68,508,229 78,751,918 75,310,073 225,074,106 225,074,106 224,516,425 221,729,838
Subtotal 56,043,217,097 57,679,414,549 61,676,785,954 64,151,082,318 64,151,082,318 66,756,185,405 70,428,487,142
Internal Services 295,748,607 291,833,073 273,485,297 285,502,626 285,502,626 274,773,818 276,098,863
Total Net Planned Spending 56,338,965,704 57,971,247,622 61,950,271,251 64,436,584,944 64,436,584,944 67,030,959,223 70,704,586,005

Notes: Refer to the Department's Financial Framework  for a complete description of the departmental financial profile.

*For comparative purposes, 2016–17 and 2017–18 actual expenditures have been restated according to the new Departmental Results Framework approved in 2018–19.

** Amounts do not reflect 2019 Budget Implementation measures included in ESDC’s 2019–20 Main Estimates.

Departmental Spending Trend Graph
Image of Departmental Spending Trend Graph: description follows
Text description of Graph
Departmental Spending Trend: Total Net Consolidated Expenditures (dollars)
  Actual Spending Forecast Planned Spending
  2016–17 2017–18 2018–19 2019–20* 2020–21 2021–22
Statutory 53,599,988,764 54,607,489,480 58,372,260,271 61,004,972,545 64,647,390,537 68,304,275,565
Voted** 2,738,976,940 3,363,758,142 3,578,010,980 3,431,612,399 2,383,568,686 2,400,310,440
Total 56,338,965,704 57,971,247,622 61,950,271,251 64,436,584,944 67,030,959,223 70,704,586,005

Notes:

* Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019–20 Main Estimates.

**Voted expenditures include debt write-offs in 2016–17, 2017–18 and 2018–19.

Planned Human Resources

Human resources planning summary for Core Responsibilities and Internal Services (full-time equivalents)
Core responsibilities and Internal Services 2016–17 Actual Spending 2017–18 Actual Spending 2018–19 Forecast 2019–20 Planned Spending 2020–21 Planned Spending 2021–22 Planned Spending
Core Responsibility 1: Social Development       309 349 460 526 520 516
Core Responsibility 2: Pensions and Benefits     4,801 5,076 5,066 3,902 3,547 3,547
Core Responsibility 3: Learning, Skills Development and Employment     10,046 10,600 10,444 9,066 8,853 8,772
Core Responsibility 4: Working Conditions and Workplace Relations  647 651 698 691 683 683
Core Responsibility 5: Information Delivery and Services for Other Departments  2,179 2,316 2,814 2,507 2,508 2,487
Subtotal 17,982 18,992 19,482 16,692 16,111 16,005
Internal Services 3,843 4,114 4,503 4,462 4,404 4,397
Total 21,825 23,106 23,985 21,154 20,515 20,402

The overall decrease of 752 full-time equivalents from fiscal year 2019–20 to fiscal year 2021–22 is mainly explained by the following items:

  • Social Development: the decrease of 10 full-time equivalents is due to the decrease of temporary funding provided for the Early Learning and Child Care Strategy;
  • Pensions and Benefits: the decrease of 355 full-time equivalents is a result of a reduction in temporary resources provided to address Old Age Security and Canada Pension Plan workload issues;
  • Learning, Skills Development and Employment: the reduction of 294 full-time equivalents is mainly related to the decrease of temporary funding provided for the Youth Employment Strategy, the Temporary Foreign Worker Program, Canada Service Corps and for enhanced Indigenous community outreach activities;
  • Working Conditions and Workplace Relations: the decrease of 8 full-time equivalents is a result of the ending of temporary resources to address the administration of the pay transparency measure announced in Budget 2018 to provide online information on the pay practices of federally regulated employers;
  • Information Delivery and Services to Other Departments: the decrease of 20 full-time equivalents is due to a decrease in temporary resources provided to enhance Indigenous community outreach activities; and

Internal Services: the decrease of 65 full-time equivalents is mainly a result of the decrease of temporary resources associated with Old Age Security and Canada Pension Plan workload issues, the Old Age Security Service Improvement Strategy and the Youth Employment Strategy.

Estimates by Vote

Information on Employment and Social Development Canada’s organizational appropriations is available in the 2019–20 Main Estimatesi.

Consolidated Future-Oriented Condensed Statement of Operations

The Consolidated Future-Oriented Condensed Statement of Operations provides a general overview of the Department’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 the Department and all inter-organizational balances and transactions have been eliminated. However, the Canada Pension Plan is excluded from the Department's reporting entity because changes to the 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 Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Department’s website.

Consolidated Future-Oriented Condensed Statement of Operations for the year ending March 31, 2020 (dollars)
Financial Information 2018–19 Forecast Results 2019–20 Planned Results Difference (2019–20 Planned Results minus 2018–19 Forecast Results)
Total Expenses 84,517,487,028 87,760,048,887 3,242,561,859
Total Revenues 23,037,454,904 23,184,304,891 146,849,987
Net cost of operations 61,480,032,124 64,575,743,996 3,095,711,872

The increase of $3,095.7 million in the 2019–20 planned results of the net cost of operations, when compared to the 2018–19 forecast results is due to the following:

For expenses, the increase of $3,242.6 million is mainly attributable to:

  • An increase of $2,509.7 million in Pensions and Benefits expenses, mainly due to the projected increase in the eligible population of the Old Age Security and Guaranteed Income Supplement benefits.
  • An increase of $952.4 million in Learning, Skills Development and Employment expenses, mainly due to an expected increase in the average weekly regular benefit rate and the implementation in March 2019 of the new five-week Employment Insurance parental sharing benefit announced in Budget 2018.

For revenues, the increase of $146.8 million is mainly attributable to:

  • An increase of $272.5 million in Employment Insurance revenues, mainly due to the projected increase in the total insurable earnings resulting from the expected growth in employment and in the maximum insurable earnings.

Statutory Annual Reports

Employment Insurance Part II

Part II of the Employment Insurance Act requires the federal government to work in concert with provinces and territories to put in place Employment Benefits and Support Measures or similar programs and services to help Canadians integrate into the labour market.

Since provinces and territories are best placed to determine the mix of employment programming best suited to meet their local and regional labour market needs, Employment Benefits and Support Measures are delivered under bilateral transfer agreements between Canada and the provinces and territories called the Labour Market Development Agreements.

Employment Benefits and Support Measures are comprised of five employment benefit programs — Skills Development, Targeted Wage Subsidies, Self-Employment, Job Creation Partnerships, and Targeted Earnings Supplements — and three support measures — Employment Assistance Services, Labour Market Partnerships, which includes Employer Sponsored Training, and Research and Innovation.

More detailed information on Employment Insurance Part II is available on the Department’s website.

Financial Data

For fiscal year 2019–20, the total Employment Insurance Part II expenditure authority of $2.424 billion represents 0.38% of the total estimated insurable earnings figure of $646.1 billion. This represents a lower level of expenditures than the 0.8% ceiling imposed under the Employment Insurance Act, which is estimated at $5.169 billion in 2019–20. The amount of reinvestment reached maturity at $800 million in 2000–01.

2019–20 Employment Insurance Plan
($) Base Re-Investment Budget 2017* Total Plan
Newfoundland and Labrador 53,614,954 73,086,000 9,941,402 136,642,356
Nova Scotia 47,148,878 30,348,000 10,346,177 87,843,055
New Brunswick 46,749,407 42,116,000 9,968,437 98,833,844
Prince Edward Island 13,907,680 10,022,000 2,425,139 26,354,819
Quebec 315,721,746 248,071,000 65,578,583 629,371,329
Ontario 385,307,735 184,097,000 81,072,009 650,476,744
Manitoba 32,846,333 10,233,000 7,725,370 50,804,703
Saskatchewan 26,942,153 9,862,000 7,202,748 44,006,901
Alberta 99,026,001 35,921,000 29,685,602 164,632,603
Nunavut 1,755,742 954,000 302,713 3,012,455
Northwest Territories 1,357,524 1,552,000 339,815 3,249,339
British Columbia 123,790,390 151,732,000 25,184,810 300,707,200
Yukon 1,831,457 2,006,000 227,195 4,064,652
  1,150,000,000 800,000,000 250,000,000 2,200,000,000
Labour Market Development Agreements Targeted Funding – Steel and Aluminum 25,000,000 25,000,000
Labour Market Development Agreements Targeted Funding - Seasonal 20,500,000 20,500,000
Pan-Canadian Responsibilities** 153,879,877     153,879,877
Funds available for Employment Benefits and Support Measures 1,303,879,877 800,000,000 295,500,000 2,399,379,877

Notes:

*Additional Labour Market Development Agreements announced in Budget 2017 of $250 million for 2019-20.

**The amount for Pan-Canadian Responsibilities includes the ongoing envelope of $150,867,575 minus the permanent conversion to operating of $24,317,698. This also includes $27.33 million for the Indigenous Skills and Employment Training program and a temporary conversion (for 2019–20) from the Employment Insurance Part II Pan-Canadian program funds to operating of $5.518 million for the Education and Labour Market Longitudinal Platform.

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