Evaluation of the Canada-Alberta Labour Market Development Agreement

Effectiveness and efficiency of EBSMs

Overall, incremental impacts demonstrate that participants in FLS/OT improve their labour market attachment (employment and earnings) and reduce their dependence on government income supports (that is, the combination of EI and social assistance) compared to similar non-participants.

FLS/OT also improves the labour market attachment of most subgroups of active and former EI claimant participants. Most former EI claimants also reduce their dependence on government income supports following participation.

A regional analysis of FLS/OT found that former claimant participants outside of Calgary improved their labour market attachment and reduced their dependence on government income supports compared to similar non-participants. Active claimant participants in Calgary and outside of Calgary increase their incidence of employment relative to their respective comparison groups. Other results were mixed and not statistically significant.

Moreover, the social benefits of participating in FLS/OT exceed the costs of investments over time.

Active EI claimants in CEAS alone have a small negative, but not statistically significant, impact on the probability of being employed, as well as decreases in employment earnings. These participants also increase their dependence on government income supports.

Chart i presents the incremental impacts on the incidence of employment for active and former claimant participants. The estimates can be interpreted as a chance in the probability of being employed following participation. For example, participation in FLS/OT increases the probability of being employed by 6.7 percentage points for active EI claimants relative to non-participants.

Chart ii presents the annual average change in employment earnings for active and former claimants over the post-participation period. For example, former EI claimants in FSL/OT earn, on average, $1,705 more than similar non-participants.

Chart iii presents the change in dependence on government income supports for active and former claimants over the post-participation period. For example, former EI claimants in FSL/OT reduced their dependence on government income support by 2.4 percentage points.

Table ii presents the number of years required for the social benefits to exceed FLS/OT program costs. Social benefits to participation exceed investment costs in a period ranging from 7.2 for former claimants to 16 years for active claimants.

Supplemental studies

A series of supplemental studies address information gaps previously identified in LMDA evaluations regarding the design and delivery, challenges and lessons learned for Self-Employment, Integrated Training, Labour Market Partnerships and FLS/OT-apprentices. Using a mix of qualitative and quantitative methods, questions regarding design and delivery, lessons learned, and challenges are examined in detail. When relevant, key considerations are included to help guide future program and policy discussions.

Sources of data and information

The analysis considers all the quantifiable costs and benefits directly related to EBSM delivery and participation that can be measured given the information available. The analysis is comprehensive in that it accounts for the vast majority of possible direct costs and benefits.

However, the analysis does not account for all costs and benefits. For example, there are factors that can lead to an understatement of the benefits (for example, positive spillovers to other family members) and other factors that can lead to an overstatement of the benefits (for example, effects on skill prices or displacement).

This study relied on integrated data from the EI Part I and II Databank and Income Tax records from the Canada Revenue Agency. Information about earnings, use of EI, and use of SA was taken from the study of incremental impacts. ^{Footnote 20} The program costs were calculated using information available in the EI Monitoring and Assessment Reports.

Relative to the previous cycle of evaluation, the methodology has been extended to incorporate one of the indirect health benefits associated with increased labour market attachment. In particular, the methodology includes an estimate of the change in public health care cost due to the decline in health care utilization resulting from program participation.

Data on average public healthcare costs by income quintiles are taken from the report Lifetime Distributional Effects of Publicly Financed Health Care in Canada (2013) by the Canadian Institute for Health Information.

Program costs are measured using information on LMDA expenditures and new interventions reported in the EI Monitoring and Assessment Report. Other costs and benefits are assessed using integrated administrative data from the EI Part I and II databank and the Canada Revenue Agency.

Incremental impacts measured over the second year of participation and up to 5 post-program years are discounted by 3% to bring them to a common base with the program cost and benefits incurred in the program start year. This 3% rate accounts for the interest the government could have collected if the funds used to pay for the program had been invested. Incremental impacts are estimated using 2010 constant dollars and this accounts for inflation.

Costs and benefits accounted for in the calculations

Program cost: cost incurred by the government for delivering the program (that is, administration and direct program costs calculated from data reported in the EI Monitoring and Assessment Reports).

Marginal social cost of public funds: loss incurred by society when raising additional revenues such as taxes to fund government spending. The value is estimated as 20% the program cost, sales taxes, income taxes, impacts on EI and impacts on SA paid or collected by the government.

Foregone earnings: estimated net impacts on participants’ earnings during the participation period. During labour market program participation, some individuals have lower earnings than what they would have received if they had not participated.

Employment earnings: incremental impacts on participants’ earnings during and after participation. In-program earnings represent the foregone earnings for participants.

Fringe benefits: the employer-paid health and life insurance as well as pension contributions. They are estimated as 15% of incremental impacts on earnings.

Federal and provincial income taxes: incremental impacts on federal, provincial and territorial taxes paid by participants.

Sales taxes: the sales taxes paid by participants estimated as incremental impacts on earnings multiplied by the propensity to consume (97%), the proportion of household spending on taxable goods and services (52%) and the total average federal and provincial sales tax rate (11%).

Social assistance and Employment Insurance benefits collected: incremental impacts on SA and EI benefits use by participants following participation.

Canada Pension Plan contribution and Employment Insurance premiums: these contributions and premiums were identified from the Canada Revenue Agency data and then, the incremental impacts on Canada Pension Plan contributions and EI premiums were estimated.

Public health care costs savings: estimated impact of participation in EBSMs on public health care costs shown as an average change per participant over the post-program period examined.

Incidence of employment

Chart 1 presents the incremental impacts on the incidence of employment for active and former claimants by type of program.^{Footnote 22} The estimates can be interpreted as a change in the probability of being employed following participation.

Active and former EI claimants who participate in FLS/OT increase their incidence of employment relative to similar non-participants.

For active claimants who participated in CEAS-only, the average annual incremental impact was not statistically significant. However, participants experienced statistically significant decreases in their incidence of employment in years 3 and 5 post-participation (-1 and -1.1 percentage points respectively). CEAS are relatively modest activities such as counselling, job search assistance and case management, which focus on quicker returns to work for participants. CEAS supports that are not provided with longer interventions, are not expected to increase participants’ skills or influence their employment levels to a large extent.^{Footnote 23}

Employment earnings

Chart 2 presents the average annual increase in employment earnings for active and former EI claimants in the post-participation period.

Active EI claimants in FLS/OT experience positive, but not statistically significant, impact on their average annual average employment earnings relative to similar non-participants. While the impact is not statistically significant for the entire post-program period, participants experience a statistically significant increase in earnings ($1,724) in year 2 post-program participation.

Active EI claimants who participated in CEAS experience a negative, but not statistically significant, impact on their annual average employment earnings relative to similar non-participants. While the impact is not statistically significant for the entire post-program period, a statistically significant decrease in employment earnings of -$488 was found in year 1 post-program participation. However, as noted above, these services are relatively modest activities and, by themselves, are not expected to lead to greatly influence labour market outcomes. In addition, these services do not aim to upgrade participants’ level of education and/or skills and are therefore not necessarily expected to assist them in securing higher paying jobs. Securing higher paying jobs is more dependent on participants’ prior levels of education and skills.

Former EI claimants who participated in FLS/OT increase their employment earnings relative to similar participants who received CEAS-only services.

Use of EI benefits

Chart 3 presents the annual average incremental impacts on the use of EI benefits for active and former EI claimant participants.

Active EI claimant participants in FLS/OT have not statistically significant increase in their annual average use of EI benefits in the post-program period, relative to similar non-participants. However, a statistically significant increase of $405 was found in year 2 post-program.

Active EI claimant participants in CEAS reduce their annual average receipt of EI benefits.

Former EI claimants who participate in FLS/OT increase their use of EI benefits in the post-program period. In the case of FLS/OT, the increase in the use of EI by former claimant participants is consistent with previous evaluations. For FLS/OT former claimants the increase is not necessarily a negative impact. Following their participation in these interventions, former EI claimants are more likely to requalify for EI benefits due to their stronger labour market attachment demonstrated by increases in employment and earnings.

Use of SA benefits

As shown in Chart 4, active and former EI claimants who participate in FLS/OT decrease their use of SA benefits in the post-program period. While the annual average for active claimants is not statistically significant over the entire post-program period, participants decreased their use of SA benefits in years 3 and 4 post-program by $211 and $148 respectively.

Active EI claimants who participated in CEAS increased their use of SA benefits compared to similar non-participants.

Dependence on income support

As shown in Chart 5, active and former EI claimants in FLS/OT reduce their overall level of dependence on income support (combined EI and SA benefits). While the finding for active FLS/OT participants is not statistically significant over the entire post-program period, participants did reduce their dependence by 1.4 percentage points in year 3 post-program.

Active EI claimants in CEAS increase their use of government income support.

Female participants

Nearly 35,625 EI active and former claimant participants in Alberta between 2010 and 2012 are female, representing nearly 49% of participants.

The profile of female participants is presented in Table 4 by age, sociodemographic group, and marital status. Information about their educational attainment, occupation and industry is based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for female participants ^{Footnote 24}

 Active claimants:

• intermediate sales and service personnel = 19%
• clerical personnel = 18%
• other sales and service professionals = 14%

Former claimants:

• intermediate sales and service personnel = 22%
• clerical personnel; other sales and service professionals = 17% each
• semi-professionals and technicians = 7%

Top 3 industries for female participants

Active claimants:

• retail trade = 15%
• accommodation and food services = 12%
• healthcare and social assistance = 11%

Former claimants:

• retail trade = 17%
• accommodation and food services = 13%
• healthcare and social assistance = 10%

Main findings: Female active and former EI claimant participants in FLS/OT improve their labour market attachment through increases in their incidence of employment and earnings. Only former claimant participants decrease their dependence on government income supports (that is, the combined use of EI and SA benefits). In the case of CEAS, female participants are found to increase their annual average dependence on government income supports following participation, due to increases in SA benefits.

Table 5 presents the detailed incremental impacts. For example, the results reveal that relative to the comparison groups, female active EI claimant participants in FLS/OT have higher annual average earnings (+ $2,489) and incidence of employment (+ 6.6 percentage points).

Female former EI claimant participants in FLS/OT have higher annual average earnings (+ $1,710) and incidence of employment rate (+ 6.1 percentage points). They also decreased their annual average use of government income supports (-2.6 percentage points), due mainly to a decrease in the use of SA benefits (- $420 per year). 

Female active EI claimant participants in CEAS increase their use of government income supports (+ 3 percentage points) due to increases in SA benefits receipt ($410 per year). The annual average results for incidence of employment and earnings are not statistically significant.

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 4 post-program years for FLS/OT and 5 years for CEAS.
¹ While the annual average impact on EI benefits (- $76) is not statistically significant over the entire post-participation period, active EI claimants in FLS/OT decreased their EI benefits use in year 1 post-program participation (- $342).
² While the annual average impact on incidence of employment (0.3 percentage points) is not statistically significant over the entire post-participation period, participants increased their incidence of employment by 1.1 percentage points in in year 1 post-program participation.
³ While the annual average impact on employment earnings ($146) is not statistically significant over the entire post-program period, participants decreased their employment earnings (-$701) in year 1 post-program participation.

Male participants

Nearly 37,300 EI active and former claimant participants in Alberta between 2010 and 2012 are male, representing about 51% of participants.

The profile of male participants is presented in Table 6 by age, sociodemographic group, and marital status. Information about their educational attainment, occupation and industry is based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for male participants

Active claimants:

• skilled crafts and trades = 27%
• semi-skilled manual workers = 20%
• other manual workers = 19%

Former claimants:

• skilled crafts and trades; other manual workers = 22% each
• semi-skilled manual workers = 21%
• other sales and service personnel = 9%

Top 3 industries for male participants

Active claimants:

• construction = 28%
• manufacturing = 14%
• administrative and support, waste management and remediation services = 9%

Former claimants:

• construction = 24%
• manufacturing = 15%
• administrative and support, waste management and remediation services = 9%

Main findings: Male active and former EI claimant participants in FLS/OT improve their labour market attachment through increases in their incidence of employment and employment earnings. Former male participants also decrease their dependence on government income supports (that is, the combined use of EI and SA benefits). Male active claimant participants in CEAS decrease their incidence of employment and increase their dependence on government income support relative to similar non-participants.

Table 7 presents the detailed incremental impacts. For example, the results reveal that relative to the comparison groups, former claimants in FLS/OT increase their annual average incidence of employment (+ 5.6 percentage points). They also decreased their use of government income support (- 3.8 percentage points), due to their decreased use of SA benefits (- $585). While not statistically significant for average annual amount, male participants also increased their employment earnings over the medium-term. Statistically significant increases in employment earnings were found in the third and fourth post-program years (+ $2,641 and $3,040 respectively). 

Active male claimant participants in CEAS only activities have lower average annual incidence of employment (- 1.2 percentage points). They also increase their use of government income support (+ 2.1 percentage points), due to the increase in the use of SA benefits (+ $322 per year).

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 4 post-program years for FLS/OT and 5 years for CEAS.
¹ While the annual average impact on EI benefits ($239) is not statistically significant over the entire post-program period, participants increased their use of EI benefits in years 2 and 3 post-program participation (+ $476 and $550 respectively).
² While the annual average impact on employment earnings (+ 1,031) is not statistically significant over the entire post-participation period, participants increased their earnings in years 3 and 4 post-program participation (+ $2,641 and $3,040 respectively).

Youth participants

Nearly 22,500 participants, between 2010 and 2012, were 30 years of age or younger when they began their program participation, representing about 31% of participants.

The profile of youth participants is presented in Table 8 by gender, sociodemographic group, and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for youth participants ^{Footnote 25}

 Active claimants:

• skilled crafts and trade workers = 26%
• other manual workers = 15%
• intermediate sales and service personnel; other sales and service personnel = 11% each

 Former claimants:

• other manual workers = 16%
• intermediate sales and service personnel; skilled crafts and trade workers = 15% each
• other sales and service personnel = 14%

Top 3 industries for youth participants ^{Footnote 26}

Active claimants:

• construction = 25%
• retail trade = 12%
• accommodation and food services; manufacturing = 9% each

Former claimants:

• construction = 17%
• retail trade = 15%
• accommodation and food services = 11%

Main findings: Youth former EI claimants in FLS/OT improve their labour market attachment through increases in their employment earnings and incidence of employment. They also decrease their dependence on government income support. Youth active EI claimant participants in CEAS increase their dependence on government income supports and have mixed and not statistically significant results for their labour market attachment. Youth active EI claimant participants in FLS/OT have short-term increases in employment earnings. The majority of their results are mixed and not statistically significant.

Table 9 presents the detailed incremental impacts. For example, the results reveal that relative to the comparison groups, youth former EI claimants who participated in FLS/OT have higher average annual incidence of employment rate (+ 4.4 percentage points). They also reduce their use of government income supports (- 2.5 percentage points), due to their lesser use of SA benefits (- $406 per year).  While not statistically significant for average annual amount, youth had a statistically significant increase in their employment earnings in the fourth post-participation year (+ $1,981).

Youth active EI claimants who participated in CEAS only activities have higher annual average government income support reliance rate (+ 1.9 percentage points), due to their increased use of SA benefits (+ $290). While the average annual impact on the incidence of employment (-0.7 percentage point) is not statistically significant over the entire post-program period, participants decreased their incidence of employment in years 3 and 5 post-participation by 1.4 and 1.7 percentage points.

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 4 post-program years for FLS/OT and 5 years for CEAS
¹ While the annual average impact on employment earnings (+ $2,632) is not statistically significant over the entire post-participation period, participants increased their employment earnings in year 2 post-program participation (+ $3,239).
² While the annual average impact on the use of EI benefits is not statistically significant over the entire post-program period, participants increased their use of EI benefits in year 2 by $524.
³ While the annual average impact on the dependence on income support is not statistically significant over the entire post-program period, participants increased their dependence in year 3 by 2.5 percentage points.
⁴ While the annual average impact on employment earnings (+ $1,367) is not statistically significant over the entire post-participation period, participants increased their earnings in year 4 post-program participation by $1,981.
⁵ While the average annual impact on the incidence of employment (-0.7 percentage point) is not statistically significant over the entire post-program period, participants decreased their incidence of employment in years 3 and 5 post-participation by 1.4 and 1.7 percentage points respectively.

Older worker participants

Nearly 4,100 EI active claimant participants, between 2010 and 2012, were 55 years of age or older when they began their program, representing about 6% of participants.

The profile of older worker participants is presented in Table 10 by gender, sociodemographic group, and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for older worker active claimants:

• semi-skilled manual workers = 17%
• other sales and service professionals = 14%
• intermediate sales and service personnel = 12%

Top 3 industries for older worker active claimants:

• retail trade = 12%
• construction = 11%
• manufacturing = 10%

Main findings: Incremental impacts reveal that older workers who are active EI claimant participants in CEAS increase their average annual employment earnings following program participation. However, they also increase their dependence on government income supports (that is, the combined use of EI and SA benefits) relative to similar non-participants. Due to insufficient numbers, incremental impacts are estimated only for active EI claimant participants in CEAS.

Table 11 presents the detailed incremental impacts. For example, the results reveal that relative to the comparison group, older workers who are active EI claimant participants in CEAS have higher annual earnings (+$984). A not statistically significant increase is also found in incidence of employment. These participants also increase their annual average dependence on government income supports (+ 2 percentage points) through increases in SA benefits (+ $500 per year).

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 5 years for CEAS.

Recent immigrants ^{Footnote 27}

In Alberta, 1,600 active EI claimant participants in LMDA programs and services, between 2010 and 2012, were recent immigrants, representing about 2% of participants.

The profile of recent immigrant participants is presented below by gender, age and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for recent immigrant active claimant participants:

• other sales and service professionals = 18%
• other manual workers = 14%
• semi-skilled manual workers = 13%

Top 3 industries for recent immigrant active claimant participants: ^{Footnote 28}

• manufacturing = 20%
• administrative and support, waste management and remediation services = 11%
• retail trade; accommodation and food services = 10% each

Main findings: Recent immigrants who are active EI claimant participants in CEAS increased their annual average dependence on income supports (that is, the combination of EI and SA benefits) relative to similar non-participants. The incremental impacts on the labour market attachment were not statistically significant.

Due to insufficient numbers, incremental impacts are estimated only for active EI claimant participants in CEAS.

Table 13 presents the detailed incremental impacts. The results reveal that relative to the comparison group, recent immigrants who are active EI claimant participants in CEAS, increase their annual average dependence on government income supports (+ 1.6 percentage points) through increases in SA benefits (+ $254 per year). The impacts on the labour market attachment are not statistically significant.

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 5 years for CEAS.
¹ While the annual average impact on EI benefits is not statistically significant over the entire post-participation period, active EI claimants in CEAS decreased their EI benefits in the first-year post-program by a statistically significant amount of - $402.

Visible minorities

Nearly 3,100 EI former claimant participants in Alberta, between 2010 and 2012, self-identified as being visible minorities, representing about 4% of total participants.

The profile of participants is presented below by gender, age, and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for visible minority former claimant participants:

• other sales and service personnel = 16%
• semi-skilled manual workers = 15%
• other manual workers = 14%

Top 3 industries for visible minority former claimant participants: ^{Footnote 29}

• manufacturing = 16%
• administrative and support, waste management and remediation services = 11%
• retail trade; construction = 10% each

Main findings: Visible minorities who are former claimant participants in FLS/OT have higher incidence of employment (+ 4.2 percentage points). They did, however, decreased their employment earnings in the short-term. 

Due to insufficient numbers, incremental impacts are estimated only for former claimant participants in FLS/OT. Table 15 presents the detailed incremental impacts.

Former EI claimant participants in FLS/OT who were visible minorities, increased their incidence of employment by 4.2 percentage points. While the annual average impact on employment earnings is not statistically significant over the entire post-participation period, participants decreased their earnings in years 1 and 2 post-program participation by $4,136 and $3,070 respectively.

Statistical significance level *** 1%; ** 5%; * 10%, other values are not statistically significant.
Note: Impacts are estimated over 4 post-program years for FLS/OT.
¹ While the annual average impact on employment earnings is not statistically significant over the entire post-participation period, former EI claimants in FSL/OT decrease their earnings in years 1 and 2 post-program participation (- $4,136 and - $3,070 respectively).
² While the annual average impact on EI benefits is not statistically significant over the entire post-participation period, former EI claimants in FSL/OT decreased their EI benefits in year 2 post-program participation (- $495).

Incremental impacts by region for FLS/OT participants

An additional analysis was conducted to examine the incremental impacts for FLS/OT active and former participants by region (that is, for participants in Calgary, and for participants outside of Calgary).

Foundational Learning Supports/Occupational Training (FLS/OT) ^{Footnote 31}

During the 2010 to 2012 period, FLS/OT represents almost 66% of EBSM expenditures under the LMDAs in Alberta. The average duration of an FLS/OT Action Plan Equivalent is 45 weeks for active claimants and 55 weeks for former claimants.

As shown in Table 18, over the 10-year post-program period, the benefit for active EI claimants is -$7,326 lower than the costs, yielding a social return of -152% on investment. This means that if the government spends $1 on FLS/OT for active EI claimants, it generates a loss of -$0.52 for society. It takes 16 years for the benefits to recover the costs of programming. A savings of $106 per participant was found in public health care costs over the 10-year post-program period.

The benefit for former EI claimants is +$7,189 higher than the costs, yielding a social return of 146% over the 10-year post-program period. This means that if the government spends $1 on programming, it generates $2.46 of gain for society. From a social perspective it takes 7.2 years for society to recover the costs of FLS/OT for former EI claimant participants. A savings of $152 per participant was found in public health care costs per participant over the 10-year post-program period.

Workplace Training Program participant outcomes

Approximately 245 active and former EI claimant participants, between 2010 and 2012, participated in Workplace Training Program.

Type of businesses created and success factors

According to key informants, program participants started businesses in a variety of industries, including construction, food and beverage industry, marketing, health and personal services, and other services including bookkeeping.

Among the factors that contributed to launching and maintaining their business, key informants included:

• adequate planning including having clear objectives, tools needed to launch and manage the business, setting and meeting deadlines
• mentoring and peer support from other participants
• participant level of commitment and persistence
• adequate assessment by the training provider such as viability of the business, entrepreneurial skills, and motivation
• ability to network
• economic conditions
• business training received

Key informants also noted some of the reasons as to why program participants fail at starting and maintaining their businesses such as:

• insufficient financial resources
• lack of commitment or persistence
• lack of personal or family support
• lack of self-confidence
• economic conditions
• having unrealistic expectations or underestimating the level of required efforts
• poor labour market research, poor business idea, and low demand for the product or service offered
• participants who are difficult to coach
• poor management skills
• personal family or health issues

Challenges and lessons learned

Key informants identify the following challenges related to program design and delivery:

• contracting provisions create challenges for training providers
• rural or northern areas introduce additional challenges to program delivery
• participants may need funding for living expenses that exceed 26 weeks

Key informants identify the following lessons learned related to program design and delivery:

• participant selection process:
  • conduct short interviews with potential participants, following the provision of orientation sessions, to validate their level of commitment to become self-employed
• using organizations with demonstrated knowledge of local labour market and capacity to achieve results
• types of training and support provided:
  • support the development of solid business plan demonstrating the capacity of the business idea to succeed
    • for example, by making available a template for the business plan
  • invite experienced guest speakers for training sessions
  • provide intensive classroom training, ongoing mentorship, and opportunities for networking
  • teaching participants basic sales skills
  • ensuring that training modules have adequate reference material available to participants
• supporting access to financing:
  • importance of informing participants about where and how to access funds, as well as to manage their expectations in that regard
  • importance of having a training provider with strong relationships with financing organizations to assist participants in accessing or applying for funding
  • introducing participants to lenders throughout the program helps give them the confidence needed to then pursue financing later, on their own, when needed
• program delivery:
  • using a diversity of instructors with different business backgrounds and subject matter expertise
  • delivering the program in cohorts has led to a network of support among participants that continued after the end of the program
  • having instructors with entrepreneurship background to teach future entrepreneurs works well

Program objective

Alberta implements a contract and tuition-based training with work-experience program through Integrated Training.

The objectives of Integrated Training are to:

• enable unemployed or marginally employed adult Albertans to secure and maintain employment
• provide training and occupation-related skills recognized by industry/employers

The Immigrant Bridging program (a sub-component of Integrated Training) helps skilled immigrants gain employment in their original occupation or a related occupation.

Program delivery

The design and delivery of Integrated Training allows Alberta to address a variety of barriers to employment experienced by its residents. Integrated Training can also be used to address labour market needs by targeting sub-groups of individuals, occupations or economic sectors in demand, and to a limited extent, communities.

The program may be delivered to individuals by classroom or through the simultaneous delivery of Integrated Training modules during work placements.

Alberta’s Ministry of Labour and Immigration is responsible for contract-based delivery of Integrated Training and Immigrant Bridging programs by third-party training providers, while the Ministry of Advanced Education is responsible for tuition-based delivery of Integrated Training and Immigrant Bridging programs.

All contract-based and tuition-based Integrated Training programs include a component with occupation-related skills, 1 or more work experience placement(s), and a component with employability and/or essential skills. When necessary, programs must also include academic competencies relevant to the occupational outcome and/or English as a second language.

Integrated Training must be provided to participants on a full-time basis up to a maximum of 52 weeks. An exception to this full-time requirement is made for persons with disabilities.

A financial assessment of participants decides the level of supports they are eligible to receive.
Program managers reported that the amount allocated to Integrated Training is influenced by labour market needs, previous success of the program, and the projected ability of training providers to fill student positions.

In addition to gaining work experience, key informants identified a variety of other benefits that can be expected from Integrated Training programs. Participants are expected to develop new skills and job search abilities. For immigrant participants, benefits associated with transitioning to a new labour market are also expected. Benefits for employers who provide training participants with work experience are associated with gaining a potential source of trained employees, helping people in need, and informing the design of training programs to suit their labour needs.

Challenges and lessons learned

In the current design of Integrated Training, key informants identified delivery challenges related to finding and retaining qualified staff for training providers, participant recruitment, monitoring, securing work experience opportunities, and addressing participants’ barriers to employment.

Key informants identified the following as contributing factors to participant success: ^{Footnote 34}

• a rigorous assessment process if participants
• work experience opportunities that have a duration catered to participants’ needs
• ensuring program flexibility and supports are in place to assist persons with mental health issues, disabilities, lack of confidence, and multiple barriers to employment
• training providers most likely to succeed are those with experience delivering Integrated Training and those with the staff capacity to address the barriers to employment of participants

Program design

The Labour Market Partnerships program aim to assist employers, communities and/or industries to address their labour force adjustments and human resource needs. It includes a wide range of funded activities, such as:

• coordination to facilitate community problem-solving relating to Indigenous employment
• career fairs
• conduct a labour market environmental scan
• develop an industry-based workforce plan to ensure employee skills are maintained
• design and deliver workshops to improve the ability of immigrant serving organizations to integrate immigrants into the labour force
• initiate discussions regarding local challenges and opportunities relating to new industries emerging in the community
• analyse potential training needs and employment opportunities

With $3.6 million in 2020 to 2021, Labour Market Partnerships program represents nearly 2% of total expenditure under the Canada-Alberta LMDA.  

Funded organizations

Funded organizations include non-profit organizations, industry and business associations, Indigenous organizations, businesses, and municipal governments.

Targeted labour market issues

Labour Market Partnerships projects targeted current and/or forecasted skills and/or labour shortages. These projects also targeted specific populations (for example, women, Indigenous peoples, and newcomers).

Generally, funded projects target labour market issues associated with:

• technological changes in the industry
• businesses downsizing/closure
• limited employment opportunities in Indigenous, small and remote communities
• barriers to employment experienced by a target population

All projects reviewed aligned with the Labour Market Partnerships program objectives and eligible activities.

Partnerships

Alberta’s Ministry of Labour and Immigration confirmed that program officials conducted activities to support the formation and maintenance of partnerships as a part of the program design and delivery. The Ministry and project holders explained that partners’ expertise and contributions are all essential to project implementation and success.

The document review of 20 projects confirmed that:

• partnerships were established to support the delivery of all projects
• partners made financial and/or in-kind contributions
  • the most common forms of in-kind contributions were expertise, as well as staff time to project administration and delivery, office/event space and usage of equipment

Project activities delivered with the support of partners included labour market and human resource research, career/job awareness, workforce strategy/plan development, community engagement to resolve labour market issues, and human resource tools development.

Performance measurement

As per the Labour Market Transfer Agreements’ Performance Measurement Strategy, Alberta collects data on:

• number of employers that participate in the industry, Indigenous, and regions streams of the Labour Market Partnerships program
• under-represented groups targeted under Labour Market Partnerships

Project holders collected additional data associated with project outputs and outcomes.

Challenges and lessons learned

Alberta program officials and key informants identified challenges related to project holder recruitment and setting up Labour Market Partnerships projects (costs or lack of expertise associated with developing a project proposal, restrictive project eligibility and criteria), as well as to program administration and monitoring (difficulties in developing and collecting measurable outcomes).

Actions of program officials and project characteristics that are conducive to the success of the program included:

• government officials supporting project holders during the application process and throughout the project implementation
• experience and expertise of the partners
• ensuring that appropriate partners are selected to participate in the project
• good understanding of the program requirements
• government officials increasing awareness about the Labour Market Partnerships program for potential partners

Key considerations for Labour Market Partnerships program and policy development

The following considerations emerged as part of the Labour Market Partnerships study:

Consideration #1: Considering that the current performance indicators do not reflect the diversity of activities funded under Labour Market Partnerships, it is important for ESDC and Alberta to discuss current Labour Market Partnerships funded activities to make recommendations on how to best report on results.

Consideration #2: It is essential to share lessons learned about successful Labour Market Partnerships projects. Particularly, for projects targeted to employers (such as workplace or employer-sponsored training), and those assisting communities and economic sectors dealing with labour market adjustment issues (contraction or expansion).

Labour market outcomes

The labour market outcomes are based on individuals who began their participation during the 2010 to 2012 period. Statistics focus on 5 years before program participation and 5 years after the program start year.