Operating Context, ESDC Departmental plan for fiscal year 2024 to 2025

At Employment and Social Development Canada, our programs and services help Canadians move through life transitions. From income support to seniors to student jobs to ensuring safe workplaces, we help to maintain Canadians' quality of life.

We have emerged from the challenging times of the pandemic, and the country is recovering. From an economic point of view, the Canadian economy is expected to grow at modest rates in 2024. The measures put in place by the Bank of Canada have shown we are headed towards an economic recovery, yet inflation is expected to remain high in 2024. The rising costs of essential goods and services (food, housing, transportation, etc.), combined with higher borrowing costs, have raised affordability concerns for many Canadians and may impact poverty rates.

In this new economic environment, we will continue to support the Government of Canada in delivering on its commitment of responsible fiscal management and ensuring sound stewardship. We will support this objective by reducing our spending and while continuing efforts to improve service delivery to Canadians.

Canada's labour market is remarkably strong, fueled by a high demand for workers and a new approach to flexible work arrangements by employers. However, high inflation and low projected economic growth in 2024 to 2025 are expected to soften some of the gains. While job availability is strong, employers still struggle to find and retain skilled workforce, as demonstrated by labour shortages in health, some trade occupations, and natural and applied science.

From a social point of view, we will continue to move forward on reconciliation as we deliver programs and services. To support strong and healthy communities, and advance self-determination and prosperity, we will work in partnership with Indigenous Peoples on initiatives directed for them. We will also facilitate the integration of newcomers to Canada and help them thrive in Canada's strong labour market. We know that immigration helps to drive our economy and fill critical labour shortages.

Harmonious labour relations are beneficial to both the economic security of individuals and the economic prosperity of our country. This is why we will continue to ensure labour relations stability. We protect workers by promoting fair, safe, and healthy workplace conditions, decent work, employment equity, and respect for international labour standards.

The world continues to become more dependent on the use of electronic data and systems for individuals to access information, services and benefits. This is why data, privacy, and integrity remain priorities as we continue to improve how we serve Canadians. We need to take into account the impact that modern technologies, systems, and business processes can have on Canadians. We will keep abreast of the latest technologies to proactively prevent issues, such as fraud. Artificial intelligence (AI) is beginning to play a key role in service delivery and we will keep up with technology to improve efficiency, accuracy, and overall client experience.