Employment Insurance Monitoring and Assessment Report 2014/2015: Chapter III - Impacts and Effectiveness of Employment Benefits and Support Measures (EBSMs – Part II of the Employment Insurance Act)

1.1.1 Economic Conditions

Canada's real growth domestic product (GDP) rose moderately by 2.4% in 2014, slightly above the 2.1% growth recorded in 2013. At the subnational level, the strongest real GDP growth in 2014 was recorded in the Northwest Territories (+5.9%) followed by Alberta (+4.5%), Nunavut (+3.6%), British Columbia (+2.6%) and Ontario (+2.5%). Growth rates in Manitoba (+2%), Saskatchewan (+1.6%), Prince Edward Island (+1.5%), Quebec (+1.4%), and Nova Scotia (0.7%) were below the national average. New Brunswick (-0.3%), Yukon (-0.8%) and Newfoundland and Labrador (-2.3%) all experienced negative growth.

The Canadian economy experienced a mild recession through the first half of 2015. For the whole year, Canada's real GDP growth will likely be around 1.2%. The sharp decline in crude oil prices has weighed on the Canadian economy. Since peaking at $107USD per barrel in June 2014, oil prices have experienced a steady decline, averaging under $50 USD per barrel in the first quarter 2015 ^{Footnote 1} . This drop has had an impact on Canada's energy sector, as high-cost oil producers responded by cancelling capital projects, decreasing drilling activities and laying off workers.

In 2014, Canada's economy was driven mainly by an increase in household final consumption expenditure (+2.8%), as outlays on goods (+3.4%) and services (+2.2%) both advanced. Spending on durable (+5.3%), semi-durable (+3.6%) and non-durable (+2.4%) goods all increased. Household disposable income (in current dollars) grew by 3.4%, the slowest pace in five years. As a result, the household saving rate declined from 5.2% in 2013 to 4.0% in 2014.

In 2014, exports rose by 5.4% after increasing 2.0% in the previous year. Exports of goods rose by 6.0%, while those of services were 2.3% higher. Imports grew 1.7%, following a 1.3% increase the previous year. The imports of goods increased by 2.4% and were partially offset by a 1.3% decline in imports of services.

Governments' gross fixed capital formation decreased (-2.3%) for the fourth consecutive year, amid fiscal constraint among many of the provincial and territorial governments throughout 2014/2015.

Mining and oil and gas extraction, as well as manufacturing, were the main contributors to overall growth in goods production (+2.4%). Construction and utilities also grew. The gains were partly offset by a decrease in the agriculture and forestry sectors, pulled down by falling crop production following strong growth in 2013. Wholesale and retail trade; finance and insurance; the public sector (education, health and public administration combined); transportation and warehousing services; professional services; as well as accommodation and food services, contributed to the increase in the service-producing sector (+2.4%).

In 2014, Canada's business productivity grew by 2.5%, following a gain of 1.2% in the previous year. Business productivity increased in every province and territory except Yukon, Newfoundland and Labrador, and New Brunswick. Growth in business productivity was above the national average in Nunavut (10%) and British Columbia (3%), while Alberta (2.6%), Quebec (2.5%), Ontario (2.4%) and Saskatchewan (2.3%) were similar to the national growth rate. Business productivity remained unchanged in New Brunswick, while Yukon and Newfoundland and Labrador declined by -10% and -1.5%, respectively.

Compared internationally, Canada's annualized real GDP growth is forecasted at 2.4% for 2014, which is above the OECD average of 1.8%. Among the G-7 countries, Canada's 2014 forecast ranks second—along with that of the United States—only behind the United Kingdom's. For 2015, Canada's ranking is expected to slip, with a real GDP growth rate of just over 1%. The United Kingdom, the United States and Germany are projected to experience stronger growth. ^{Footnote 2} Lower oil prices have had a net negative impact on Canada's economy, while creating large regional differences. According to the Conference Board of Canada, Canada's oil industry is expected to post a pre-tax loss of $2.1 billion in 2015, compared to a profit of close to $6 billion the previous year. ^{Footnote 3}

1.1.2 Labour Market Context

Overall, labour market conditions improved in Canada for a fifth consecutive year, with employment levels reaching an all-time high of 17.8 million, and a net gain of 103,000 jobs recorded in 2014/2015. This represented a 0.6% year-over-year increase. In addition, both full-time and part-time employment jobs expanded, by 0.4% and 1.2%, respectively. The work force expanded by 1.1% to a total of 29.06 million, while the labour force grew at a rate of 0.4% (19.1 million).

1.1.3 Client Trends

Provinces and territories supported a lower number of LMDA clients (-3.1%) accessing EBSM interventions in 2014/2015. All three client type counts declined, as EI active claimants dropped by 2.7%, former clients edged down by 6.0% and non-insured clients decreased by 2.7%. The share of active clients (49.3%) edged down by 0.2 percentage points year-over-year, while former clients (12.5%) dropped by 0.4 percentage points. The share of non-insured clients increased by 0.2 percentage points to a total of 38.2%, representing an all-time high, as provinces and territories increasingly provided Employment Assistance Services (Support Measures) to non-insured clients.

1.1.4 Trends in Program Delivery

In 2014/2015, the number of EBSM interventions delivered by provinces, territories and Indigenous organizations decreased by 2.8%. Both Employment Benefits and Support Measures were down year-over-year, -4.8% and -2.7% respectively. Support Measures, which represented 86.8% of all interventions, increased in their share by 0.3 percentage points as clients relied more heavily on short-term interventions for quicker returns to work in a strengthening labour market.

Canada: EBSM Key Facts

Clients Served: 689,459

EI Active & Former	Non-Insured	Pan-Canadian1
431,794	257,665	15,378
Active	Former	Non-Insured
49.3%	13.3%	37.4%
Youth (15-24)2	Core Age (25-54)	Older Workers (55+)
19.4% -	68.1%	12.5%

Interventions: 1,106,750

	2014/2015	Year-over-Year Change
Employment Benefits	142,389	4.8%
Support Measures: EAS	936,144	2.7%
Pan-Canadian	28,217	7.0%

Relative Share

	2014/2015	Year-over-Year Change
Employment Benefits	13.2%	0.2
Support Measures: EAS	86.6%	0.2

Allocation: $2,076.6 Million

	2014/2015 ($ Million)	Year-over-Year Change
Employment Benefits	$1,149.2	2.4%
Support Measures: EAS	$629.9	6.1%
LMPs and R&I	$160.7	1.2%
Pan-Canadian	$116.7	0.2%
Total Expenditures3	$2,056.6	0.5%

Managing for Results

Indicator	Total	Year-over-Year Change
Active Claimants Served	339,795	2.6%
Returns to Employment (active and former clients)	173,593	1.0%
Unpaid Benefits ($ Million)	$1,121.98	5.7%

• ¹ EI Part II Pan-Canadian services to individuals are through the Aboriginal Skills and Employment Training Strategy.
• ² Age distribution does not equal 100%, as the "unknown" category is not reported here. Date of birth is not collected for clients in SD-Apprentices and Group Services.
• ³ Totals may not add up exactly due to rounding; does not include accounting adjustments.

1.2.1 Canada's Labour Market

Key Labour Market Indicators

In 2014/2015, Canada's labour market recorded soft but continued growth. Employment edged up by 0.6% adding 103,000 jobs, compared to 1.2% growth the previous year. Unemployment fell by 2.3% year over year (-30,600), bringing Canada's unemployment rate down to 6.9%. This was the first fiscal year since 2008/09 with an unemployment rate below 7%.

For a second consecutive year, the employment rate edged down in 2014/2015, dropping to 61.4%. As well, the labour market participation rate declined to 65.9%, a drop of 0.5 percentage points, the lowest rate since 2000/01. While the economy has continued to expand since the 2008-2009 recession, the downward trending participation rate will likely remain in place over the medium term as the baby-boomer generation enters retirement with fewer labour market entrants to replace them.

Show Data Table

Year	Participation rate (%)
2000/2001	65.8
2000/2002	66
2000/2003	67.1
2000/2004	67.6
2000/2005	67.4
2000/2006	67.1
2000/2007	67.1
2000/2008	67.5
2000/2009	67.5
2000/2010	67
2000/2011	66.9
2000/2012	66.6
2012/2013	66.4
2013/2014	65.9
2014/2015	66.5

Source: Labour Force Survey

In 2014/2015, employment gains were concentrated in the services-producing sector (+128,000), which more than offset the employment losses in the goods-producing sector (-25,000). All goods-producing industries recorded employment losses with the exception of construction, which experienced a growth of 3,900 net jobs. The manufacturing sector is often seen as the segment of the Canadian economy that benefits the most from the fall in oil prices through its weakening effect on the Canadian dollar. However, the export growth has been weaker than initially anticipated, holding back potential job gains. The services-producing sector was sustained by strong employment increases in: health care and social assistance (+42,400); accommodation and food services (+35,400); and, educational services (+30,200). Employment losses in the services-producing sector were observed in: other services (-12,200); information, culture and recreation (-4,700); and business, building, and other support services (-1,600).

Labour Market Tightness

According to Statistics Canada's Business Payroll Survey (BPS) ^{Footnote 4} , Canadian businesses reported on average 235,300 job vacancies in 2014/2015, representing a 10% increase compared to the 214,000 average reported in 2013/14. In absolute terms, growth in the number of job vacancies was concentrated in Ontario, Quebec, and British Columbia, which respectively registered increases of 14,200 (21.8%), 4,700 (11.6%) and 4,400 (14.7%). Job vacancies declined in Alberta (-2,800 or -5.8%) and Manitoba (-1,300 or -12.8%) and remained relatively constant in other provinces.

Over the same period, the number of unemployed persons across Canada was 1.317 million, compared to 1.348 million in 2013/14, a decrease of 2.3% year-to-year ^{Footnote 5} . The largest drops in unemployed persons were recorded in Ontario (-23,800), British Columbia (-11,200) and Quebec (-2,800). Alberta and Newfoundland & Labrador saw the largest increase in the unemployed, with jumps of 9,500 and 1,000 respectively.

Labour market tightness is often assessed using the unemployment-to-job vacancies (U/V) ratio ^{Footnote 6} . In 2014/2015, 5.6 individuals sought employment for every job vacancy, compared to 6.3 a year earlier. The decrease in the U/V ratio (number of unemployed people for every vacant position) suggests employers face more challenges in filling job vacancies, as the number of unemployed workers shrinks, or they are increasingly unable to find the required skills for their job openings.

At the subnational level, the largest drop in the U/V ratio was observed in Prince Edward Island, sliding from 17.3 to 8.8 year-over-year. Moderate U/V ratio drops were also registered in Nova Scotia (from 10 to 8.4), Ontario (from 8.5 to 6.7) and British Columbia (from 5.3 to 4.3), pointing to a tightening labour market year-over-year. New Brunswick, Manitoba and Alberta recorded modest increases (0.3, 0.5 and 0.5, respectively) in their U/V ratios, suggesting greater slack in the labour market compared to 2013/14. Nonetheless, Alberta and Manitoba continued to register among the lowest U/V ratios in Canada (2.7 and 4.1, respectively) pointing to tight labour markets.

Since 2011/12, the national U/V ratio decreased modestly, from 5.8 to 5.6 as the number of unemployed persons has been on a steady decline (-5.4%). This suggests an overall tightening of the Canadian labour market over this period. ^{Footnote 7} The trend is expected to continue in the coming years as large cohorts of workers begin to retire, with fewer younger workers to replace them.

Show Data Table

	2011/2012	2012/2013	2013/2014	2014/2015
Job Vacancies (thousands)	238.8	243.85	214	235.325
Number of Unemployed (thousands)	1392.93	1367.78	1348.35	1317.48

Share of Job Vacancies by Industry

Of the annual average of 235,300 BPS job vacancies reported in 2014/2015, the following industries showed the most vacancies:

• health care and social assistance (39,800; 16.9%);
• accommodation and food services (31,100; 13.2%);
• retail trade (26,700; 11.3%);
• manufacturing (17,000; 7.2%); and
• construction (16,000, 6.8%).

Compared against their employment growth ^{Footnote 8} in 2014/2015, these industries were among the strongest to record employment gains: health care and social assistance employment grew by 2.0%; accommodation and food services increased by 1.9%; retail trade was up 0.7%, and construction employment increased by 3.5%. Manufacturing employment dropped by 0.3%, despite being ranked as the 4^th highest Canadian industry in terms of job vacancies over the same period.

Across all industries, finance and insurance (1.6), as well as health care and social assistance (1.3), posted the lowest U/V ratios. This suggests tighter labour market conditions in those industries than all others. Conversely, the highest U/V ratios were recorded in arts, entertainment and recreation (8.6), mining, quarrying, and oil and gas (7.6) and educational services (7.6). The high ratio points to more unemployed persons relative to job vacancies in those industries across Canada.

Job vacancy rates and unemployment rates by province

Among all provinces, Western Canada registered the highest job vacancy rates (i.e., the share of jobs that are unfilled out of all payroll jobs available) and lowest unemployment rates. Despite the recent downturn in Alberta's and Saskatchewan's resource sector, the two provinces posted the highest job vacancy rates and lowest unemployment rates as both goods and service-producing sectors of the two economies recorded employment growth. Manitoba's growth in key sectors like manufacturing, agriculture and construction had a positive impact on the labour market. The province registered an unemployment rate of 5.4%, which is well below the Canadian average. In Quebec and Ontario, slow growth in the provinces' trade sectors triggered some slack in the labour markets. Atlantic Canada's relatively high unemployment rates and low job vacancy rates suggested a significant mismatch between available job seekers and job vacancies.

Show Data Table

Area	Job Vacancy Rate (%)	Unemployment Rate (%)
Canada	1.6	6.9
Newfoundland and Labrador	1.1	12.2	11.6
Prince Edward Island	1.8	10.5	11.5
Nova Scotia	1.4	8.9	9
New Brunswick	1.3	10.1	10
Quebec	1.3	7.6	7.7
Ontario	1.4	7.2	7.5
Manitoba	1.7	5.4	5.5
Saskatchewan	2	4	4.2
Alberta	2.3	4.9	4.6
British Columbia	1.7	6	6.5

Sources: Statistics Canada; Labour Force Survey, and Business and Payroll Survey.

Skills in Demand – Employment Growth by Skill Type ^{Footnote 9}

In 2014/2015, employment in Canada grew by 103,000, to a total of 17.8 million; an increase of 0.6% compared to the previous year. By skill type, the largest proportional employment growth occurred in:

• Sales and Service Occupations (+59,300 or +1.4%)
• Natural and Applied Sciences and related occupations (+47,400 or +3.6%)
• Education, Law and Social, Community and Government Services (+23,600 or 1.2%)
• Art, Culture, Recreation and Sport (+13,300 or +2.5%)
• Health Occupations (+10,000 or +0.8%).

Employment declines were recorded in: management (-65,300 or -4.0%) and natural resources, agriculture, and related production occupations (-3,200 or -0.8%).

1.3.1 Client Types

Three client types can access EBSMs: active claimants, former claimants and non-insured clients. In 2014/2015, the distribution of client types continued to reveal an upward trend from the non-insured clients among provinces and territories. Their share of all clients increased to an all-time high of 38.2% (increase of 0.2 percentage points), while active clients increased by 0.2 percentage points to a total of 49.3% and former clients saw their share decrease to 12.5% from 12.9% in the previous year.

Since 2005/06, the number of non-insured clients has increased by 50.9%, while those of active and former claimants have declined by 6.1% and 3.3%, respectively. The rising numbers in non-insured clients can be attributed to the increasing reliance of provinces and territories on using Support Measures for quicker, short-term interventions to support the unemployed in finding jobs when they may otherwise face challenges in searching for employment on their own.

Show Data Table

Clients	2005/2006	2006/2007	2007/2008	2008/2009	2009/2010	2010/2011	2011/2012	2012/2013	2013/2014	2014/2015
Active Clients	361,490	349,865	337,148	388,714	463,158	372,340	326,892	319,904	348,909	339,795
Non-Insured Clients	170,714	176,879	186,159	209,871	209,020	269,350	214,587	241,834	264,716	257,665
Former Clients	95,499	91,458	89,315	95,468	104,972	114,356	104,816	100,522	97,417	91,999

Active claimants are those who had an active EI Part I regular claim when they requested assistance under Part II of the Employment Insurance Act. Typically, they have stronger recent labour force attachment and tend to be able to return to work more quickly than those with weaker ties to the labour market. Active claimants who are job ready often seek out short-term interventions under EI Part II to find their next employment opportunity. Others require longer-term Employment Benefits to upgrade their skills, establish certification or refine their job search strategies.

In total, the number of active claimants served in Canada declined to 339,795, a year-over-year decrease of 2.6%. Their share of all clients increased slightly (+0.2 percentage points) to 49.3% year over year. The proportion of active claimants returning to work after participating in an EBSM-similar programming was 45.8%, compared to 43.6% in 2013/14.

Former claimants are those who completed an EI claim in the past three years, or who began a parental or maternity claim in the preceding five years. They are no longer eligible for EI Part I; however, they remain eligible for EI Part II under certain criteria. ^{Footnote 10} Former claimants do not receive income support under Part I of the Employment Insurance Act while they complete an Employment Benefit intervention; however, they may receive Part II support while completing their return-to-work action plan.

During the 2014/2015 reporting period, the number of former claimants fell to 91,999 (-5.6%) year over year. In addition, their share of all EBSM clients declined to 12.5% (-0.4 percentage points). The number of former claimants returning to work decreased moderately (-3.0%), to a total of 22,424, which represents 24.4% of the 91,999 former claimants served.

Non-insured clients are unemployed individuals who are neither active nor former EI claimants and usually have little substantive or recent labour force attachment. They include new labour force participants and individuals who were formerly self-employed. While these clients are not eligible for Employment Benefits under EI Part II, they may access interventions similar to EAS.

In 2014/2015, the numbers of non-insured clients dropped by 2.7%, to reach 257,665. However, their share among all client types increased to 37.4% (+0.2 percentage points). Since the 2004/05 reporting period, the share of non-insured clients has jumped by 13.2 percentage points, whereas the other two client types witnessed their share of total clients decline over the same time. Overall, 41,954 non-insured clients returned to work in 2014/2015 following their EBSM participation, a 6.5% increase from the previous year. ^{Footnote 11}

1.3.2 Age Distribution ^{Footnote 12}

Consistent with the growth of Canada's senior population, the older workers category (55+ years) was the only age group to experience growth in EBSM usage. This category increased by 5% with 73,170 clients served. Its share of the total age distribution increased by 0.9 percentage points, reaching 12.5%. In the last decade, older workers have consistently increased their share among all EBSM clients, reflecting greater use of active employment programs to improve their employability. Older workers' participation in the labour market reflects these trends; a cohort that now represents 35% of Canada's labour population. In 2014/2015, the labour population of older workers surpassed 10 million, on the strength of rapid growth in the last 10 years that added 1.5 million older workers into the workforce. This represents a 66% growth in this age group, which is significantly higher than any other age group. Consistent with these trends, older workers are increasingly reliant on employment supports, consistent with their growing share of Canada's labour force.

Show Data Table

	#	%
15–24 Youth	113,492	19.4%
25–54 Core Age	399,428	68.1%
55+ Older Workers	73,170	12.5%
Unknown	130	0.0%
Total	586,220	100.0%

In 2014/2015, the labour population of older workers surpassed 10 million, on the strength of rapid growth in the last 10 years that added 1.5 million older workers into the workforce. This represents a 66% growth in this age group, which is significantly higher than any other age group. Consistent with these trends, older workers are increasingly reliant on employment supports, consistent with their growing share of Canada's labour force.

The total number for the core-aged workers (25-54 years old) dropped by 3.7% year over year to 399,428. The share of the core-aged workers, as a proportion of all age groups, decreased by 0.9 percentage points to 68.1% in 2014/2015. Among core-aged workers, all the subgroups experienced drops with the largest declines among the 50-54 year olds (-4,462 or -7.1%). This trend among core-aged workers is consistent with labour market indicators: the total number of the unemployed among the core-aged workers declined by 20,000 (-2.7%) year over year. As well, the group's unemployment rate (5.7% in 2014/2015) has also continued on a downward trend since the recent high of 7.2% in 2009/10.

Following two years of growth, youth (15-24 year olds) participation decreased by 3,359 or -2.9% year-over-year, for a total of 113,492 youth clients. Its relative share remained unchanged at 19.4% year-over-year. Although youth continue to face struggles in the labour market, their employment prospects are beginning to improve. In 2014/2015, the youth unemployment rate dropped to 13.3%. This is a general downward trend observed in the last five years, since the youth unemployment rate hit a generational high of 15.6% in 2009/10. Other indicators of improved conditions for youth in 2014/2015 include employment being up by 14,400 year-over-year and unemployment being down by 8,000 in the same period. The Youth employment rate and participation rate are up for the second straight year, reaching 55.7% and 64.3%, respectively.

1.3.3 Designated Groups ^{Footnote 13}

ESDC collects information on the EBSM participation of women, Indigenous people, members of visible minorities and persons with a disability in support of employment equity principles.

• Women participated in a total of 471,765 EBSM interventions in 2014/2015, a 2.9% decrease year over year. Women represented 44.1% of all participants, slightly lower than their share in 2013/14. Similar to the previous year, the vast majority of women (92.1%) accessed EAS interventions, while their male counterparts had a lower rate of EAS participation (81.8%). This trend is explained by the lower participation of women in the Skills Development Apprentice program, and by the fact that women are more likely to work in part-time occupations, which results in lower EI eligibility rates and, therefore, less access to Employment Benefits. Overall, 47.7% of female EBSM participants were non-insured this year, compared with 37.4% of male EBSM participants.
• A total of 104,063 EBSM participants self-identified as persons with a disability. The share of persons with a disability increased 0.6 percentage points to 9.7%. Non-insured clients represented 57% of this client segment, a slight increase of 0.1 percentage points, year over year.
• Indigenous people participated in 79,687 EBSM interventions. This represented 5.1% more than the previous year. Indigenous people participated in 7.5% of all EBSM interventions delivered in 2014/2015, including programming delivered through ASETS. A total of 38.3% of Indigenous clients participated as non-insured clients. As a share of participation in all interventions delivered to Indigenous clients, Employment Benefits increased from 3.8% to 3.9% year over year.
• Members of visible minority groups participated in 42,788 interventions, a significant drop of 23.1% over year. Corresponding with this decline, visible minorities' share of total EBSM participants dropped to 4%, a 1.1 percentage point slide year-over-year. It is worth noting that representation rates may be influenced by changes in self-identification behaviour and recent demographic trends.

1.3.4 Official Languages

ESDC furthers the commitment of the Government of Canada to foster the full recognition and use of both English and French in Canadian society by ensuring that labour market programs and services are delivered in both official languages. In this context, all LMDAs contain commitments by provinces and territories to have programs and services delivered in both official languages where there is sufficient demand.

LMDA programming continues to evolve, with provinces and territories adapting program design and service delivery to meet local needs. ESDC is working with provinces and territories to improve the capture of official languages related data, in order to better assess how official languages requirements are being met.

1.4.1 Skills Development

Skills Development (SD) is the most common Employment Benefit delivered under LMDAs. This benefit helps insured clients cover the cost of gaining the new skills they often need when facing a career change. In 2014/2015, the use of SD-Regular (SD-R) interventions fell significantly by 10.1% year over year, to 49,091. Also, the share of SD-R of all benefits trended downwards for a fifth consecutive year, dropping to 34.5%. In comparison, the number of SD-Apprentice (SD-A) interventions increased by 4.1%, to 68,437. Corresponding with this increase, the share of SD-A edged up to 48.1%, due to steady demand for skilled trades across Canada. SD expenditures saw a decline of $46.3M (-4.9%) for a total of $908 million.

1.4.2 Targeted Wage Subsidies

Targeted Wage Subsidies encourage employers to hire individuals they would not normally hire, giving them a chance to complete a successful career transition. In 2014/2015, TWS interventions decreased considerably by 7.2% year over year, to 11,643. The share of TWS of all Employment Benefits interventions dropped to 8.2%. While total expenditures for TWS increased by 28.3% to $103.7 million, reflecting rising average cost per intervention in most jurisdictions, the duration of TWS interventions decreased, on average, by 0.6% year over year.

1.4.3 Self-Employment

The Self-Employment intervention helps insured clients start their own businesses, through counselling and development related to launching a new business. In 2014/2015, participation in SE decreased by 8.3%, to 7,361 interventions. SE's share of total benefits interventions edged down slightly to 5.2% (-0.2 percentage points). Corresponding with these trends, SE total expenditures decreased by $8.5 million (-7.7%) for total of $102.5 million in 2014/2015.

1.4.4 Job Creation Partnerships

Job Creation Partnerships provide EI-insured clients with work experience while helping the community and local economy. Provinces and territories delivered a significant increase (+9.5%) of JCP interventions, totalling 3,165. JCPs' share of total benefits interventions edged up by 0.3 percentage points for a total 2.2%. JCP expenditures reached $33.6 million (+19.4%), an increase of $5.5 million.

1.4.5 Targeted Earnings Supplements

Targeting Earning Supplements provide insured clients with incentives to accept employment. In 2014/2015, Quebec offered TES-similar programming through its Return to Work Supplement program. This TES-similar benefit supported 2,692 participants in 2014/2015, a significant drop of 53.3% decrease year over year. In line with the drop in the number of interventions delivered, Quebec's total expenditure for this benefit fell 54.4% to $1.3 million.

1.5.1 EAS Interventions

Provinces and territories design and deliver interventions similar to EAS, which are available to all unemployed people in Canada. In addition to helping EI-insured clients, EAS interventions provide crucial support to those who have been absent from the labour market for an extensive period or who have low labour market attachment. They may also support new immigrants or young people who are entering the Canadian labour market. These interventions are reported in one of the three following categories: Employment Services, Group Services, and Individual Counselling. In 2014/2015, a total of 936,144 EAS interventions were delivered, a notable year-over-year decrease of 2.7%. This decline reflects improving labour market conditions and less reliance by unemployed workers to require short-term active employment measures. However, its relative share of all EBSM interventions increased to 86.8% in 2014/2015; an increase of 0.3 percentage points year over year. Total expenditures on EAS increased to 629.9 million (+6.1%) in 2014/2015.

1.5.2 Labour Market Partnerships

The Labour Market Partnership (LMP) initiative facilitates the collaboration of employers, employee and employer associations, community groups, and communities to develop solutions to labour force imbalances such as persistent high unemployment or skill shortages. LMP expenditures contracted for a second consecutive year, dropping significantly to a total of $128.6 million in 2014/2015 (-10.5%). Almost all jurisdictions made noticeable investments in LMP initiatives in 2014/2015, with strongest commitments made by Quebec, Ontario, Prince Edward Island, New Brunswick, British Columbia and Manitoba.

1.5.3 Research and Innovation

Research and Innovation (R&I) initiatives identify better ways of helping people prepare for, return to or maintain employment, and participate productively in the labour force. In 2014/2015, all jurisdictions with R&I programs increased investments in this area, more than doubling expenditures from $15.1 million to $32.1 year over year. Five provinces and territories ^{Footnote 15} used $21 million in LMDA funding through R&I projects to test the reach and impact of the Canada Job Grant (CJG). The CJG encourages employer involvement and investment in training by providing financial assistance to employers on a cost-shared basis to help Canadians develop the skills needed for available jobs.

2.2.1 Employment Benefits

In 2014/2015, the province delivered significantly more Employment Benefit interventions, totaling 8,591 (+15.5% year over year increase). The use for Skill Development interventions rose, with SD-R (3,609) and SD-A (2,727) both expanding significantly by 7.3% and 17.1%, respectively. JCP (1,196) is another benefit intervention that experienced considerable growth (+42.6%). In addition, TWS (880) grew for a second consecutive year, edging up significantly in 2014/2015 by 22.1%, while SE (179) fell (-5.8%) this year, after expanding in 2013/14. As for the shares of the benefit types, SD-R accounted for a decreasing proportion of all benefits at 42.0%, but the share of SD-A edged up slightly to 31.7% (+0.4 percentage points). Combined SD-R and SD-A accounted for a 73.8% share of all benefits, compared to 76.5% in the previous year, reflecting a continued focus on skills development and enhancement. Employment Benefits total expenditures rose significantly to a total of $115.7 million (+7.0%), consistent with the increase in the number of benefit interventions delivered.

2.2.2 Support Measures: EAS

After four consecutive years of decline, the use of EAS in Newfoundland and Labrador increased considerably in 2014/2015, with total numbers reaching a five-year high of 15,745 (+43.1). The EAS types delivered in the province all recorded noticeable gains, though at different paces. Employment Services—the most widely used EAS—grew significantly to a total of 8,238 (+5.6%), and Individual Counselling (4,500) edged up sharply (+40.6%). Additionally, Group Services—an intervention that was last used in 2009/10—resumed in 2014/2015, with a total number of interventions delivered reaching 3,007. The noticeable increase in the EAS numbers can be attributed to a growing demand for employment programming due to weakening labour market conditions. EAS expenditures reached a total of $5.0 million (+9.1%), consistent with the increase in the total numbers of EAS interventions.

2.2.3 Other Support Measures: LMPs

After expanding significantly to $6.4 million in 2012/13, expenditures for Newfoundland and Labrador's LMPs contracted over the past two years, with total expenditures dropping to $1.5 million in 2014/2015. This represented almost half of last year's value and a 10-year low. LMP expenditures accounted for a smaller share of 1.2%, compared to 2.6% in 2013/14.

2.2.4 Managing for Results

Newfoundland and Labrador manages for results through its new management information system, the Labour Market Programs Support System (LaMPSS), which has been operational as of 2014/2015. The LaMPSS is expected to maximize efficiency and improve service delivery for labour market programs and services. Data on interventions delivered in 2014/2015 are estimates based on the results generated through Newfoundland and Labrador's regional service delivery network. However, the province is undertaking supplementary data analysis in order to improve data quality for 2015/16.

2.3.1 Employment Benefits

After a moderate expansion in the previous year, Prince Edward Island delivered a lower number of Employment Benefits interventions (1,991) in 2014/2015. This represented a significant year-over-year decline of 6.8%. TWS (437) and SD-A (315) both expanded (+8.7% and +4.3% year over year), while the other three benefit types all contracted, with JCP (108) declining by 36.1%, followed by SE (118), which dropped by 19.7%, and SD-R (1,013)—the most frequently used benefit intervention in the province—was down 9.2%. At 66.7%, combined SD-R and SD-A continued to account for the greatest share of all employment benefits, indicating a continued focus in the province on addressing pressing skills shortages. Employment Benefits expenditures fell down to $18.6 million (-6.3%), consistent with the decline in the numbers of most benefit types.

2.3.2 Support Measures: EAS

Prince Edward Island delivered a significantly higher number of EAS interventions (5,597) in 2014/2015 (+6.1%). Employment Services (4,252) and Individual Counselling (1,345)—the province's two EAS types—shifted differently, with the first expanding considerably (+11.3%), after a decline in the previous year, while the latter contracted notably (-7.6%), which constitutes the third consecutive yearly decline. Consistent with the increase in EAS numbers, the total expenditures of EAS rose to $4.7 million (+3.7%) in 2014/2015.

2.3.3 Other Support Measures: LMPs and R&I

In 2014/2015, LMPs and R&I funding increased considerably to $2.4 million (+38.0%), compared to last year's $1.7 million. LMPs total expenditures grew significantly (+25.0%), to a total of $2.1 million. Similarly, R&I's expenditures expanded, though at a remarkably faster pace, reaching $245,000 (+1,431%). LMPs and R&I funding supported initiatives led by industries and communities to identify and address labour market challenges.

2.3.4 Managing for Results

In an effort to measure the effectiveness of programming, SkillsPEI implemented adjustments to its database management system to analyze the employability of clients participating in paid interventions. New functionality and modifications were implemented in phases. As of the end of fiscal year, all database requirements were deployed including the logic model to manage and survey completed interventions.

2.4.1 Employment Benefits

For a second consecutive year, Nova Scotia delivered fewer Employment Benefits interventions, totalling 4,252 (-10.3%) in 2014/2015. With the exception of SD-A, which grew moderately to a total of 1,560 (+3.8%), all the other Employment Benefits contracted significantly. TWS declined the most (-32.0%) to a total of 362; followed by JCP (-25.8%) down to 118; SD-R (-13.9%), to a total of 1,790; and SE (-9.8%) with 422 total interventions. The shares of the benefit types shifted consistently with their levels, except for SE which remained stable at 9.9%. Despite the significant decrease in SD-R, the combined shares of both SD-A (36.7%) and SD-R (42.1%) continued to be the most used benefit intervention in the province at 78.8% compared to 75.5% in 2013/14, reflecting a continued focus on clients' long-term job attachment and reduction in the reliance on government support. Employment Benefits expenditures totaled $47.8 million in 2014/2015, a significant decrease of 10.8% from 2013/14 levels.

2.4.2 Support Measures: EAS

For a fourth consecutive year, Nova Scotia delivered a decreasing number of EAS interventions (26,968) in 2014/2015, compared to last year's 28,423. Group Services was the sole EAS intervention expanding in 2014/2015, reaching a total of 1,852 (+100%). Conversely, Employment Services (20,603) and Individual Counselling (4,513) both declined by 8.4% and 9.9%, respectively. The shares of the three EAS types shifted in the same directions, with Group Services rising to 6.9% of all EAS interventions, while Employment Services (76.4%) and Individual Counselling (16.7%) both edging down (-2.7 and -0.9 percentage points, respectively). Despite the decline in the numbers of EAS, it accounted for a growing share (86.4%) of all interventions delivered in the province (+0.7 percentage points), signalling a continued demand for EAS in the province. Nova Scotia uses EAS to help job-ready clients meet the growing demand for skilled labour and increase the job attachment of vulnerable groups. EAS total expenditures increased significantly to $29.1 million (+23.7%).

2.4.3 Other Support Measures: LMPs

The total expenditures for LMPs continued to rise for a third consecutive year, reaching $2.0 million in 2014/2015 (+2.4%). Through investing in LMPs, the province supports employers, employer/employee associations, community groups and communities in developing and implementing strategies for dealing with changes in the labour force and meeting human resource requirements. LMP investment supports partnerships in key business/industry sectors, strengthens stakeholder engagement and fosters collaboration in identifying the right labour market priorities and strategies.

2.4.4 Managing for Results

To improve assessment and monitoring of EBSM programming, Employment Nova Scotia uses the provincially developed Labour Market Programs Support System (LaMPSS) for the documentation and administration of LMDA organisation and individual funding agreements and for tracking participant case management information. In 2014/2015, an extensive review of case management data was undertaken to determine how each External Service Provider was performing. The review included comparative analysis to identify areas that need improvement, with the overarching objective to ensure quality service delivery and achieving client outcomes. The review also provides input for further development as the Province undertakes an employment services transformation.

2.5.1 Employment Benefits

After delivering a smaller number of Employment Benefits (7,712) interventions last year, New Brunswick served a total of 8,093 in 2014/2015 (+4.9%). The two Skills Development types shifted differently, with the total number of SD-R expanding significantly (+8.2%), to a total of 3,983. In contrast, SD-A (2,192) declined for a second consecutive year, dropping moderately (-3.0%) in 2014/2015. Consistent with the change in the numbers of these two benefit types, their respective shares shifted similarly, with the share of SD-R rising by 1.5 percentage points to 49.2%, while that of SD-A declined at a faster pace (-2.2 percentage points to 27.1%). The combined SD share declined slightly, but continued to represent the greatest proportion of all interventions at 76.3%, reflecting New Brunswick's continued support for new skills acquisition. TWS expanded significantly (+12.2%) to a total of 1,632, while SE (286) declined noticeably (-9.5%). The substantial increase in TWS could be attributed to a continued investment in the province's One Job Pledge component of Workforce Expansion—a program that saw its first full year of delivery in 2013/14. This program offers up to 52 weeks of wage subsidy for recent post-secondary graduates. Employment Benefits total expenditures increased to $69.9 million (+2.4%) in 2014/2015.

2.5.2 Support Measures: EAS

With a total of 25,761, New Brunswick delivered a slightly smaller number of EAS interventions (-0.2%). Consistent with the decline in the total numbers of EAS, its share of all interventions delivered edged down slightly (-0.9%), to 76.1% in 2014/2015. The two EAS types delivered in the province shifted differently, with Individual Counselling edging up by 0.7% to a total of 16,667, while Employment Services dropped to a total of 9,094 (-1.9%). The demand for EAS reflects a continued focus in the province on assisting job-ready individuals and supporting vulnerable clients. Additionally, the province continued to strengthen its efforts in targeting specific groups including persons with disabilities and social assistance recipients. New Brunswick clients participated in an increasing average of 2.14 interventions per client in 2014/2015, compared to 2.03 in 2013/14. Total expenditures for EAS increased to $11.7 million (+3.3%).

2.5.3 Other Support Measures: LMPs and R&I

After a considerable growth (+22.7%) in LMPs and R&I total expenditures of $9.7 million last year, this total dropped significantly to $8.3 million (-14.6%) in 2014/2015, mainly due to a sharp decline (-19.2%) in LMP funding. LMP total expenditures fell to $7.6 million, compared to $9.5 million in 2013/14. Conversely, R&I total expenditures expanded dramatically (+145.6%) in 2014/2015, reaching $673,000, more than double last year's value of $274,000. Investment in R&I increased, as New Brunswick used R&I funds ($347,149) to support the Canada-New Brunswick Job Grant initiatives. Compared to last year's 10.9%, combined LMP and R&I total expenditures represented a declining share of 9.2% of EBSM total expenditures.

2.5.4 Managing for Results

To support EI clients with active employment programming earlier in their EI claim, New Brunswick works closely with local Service Canada partners to reach clients as early as possible. Some regions have made arrangements with their local Service Canada partners to include the coordinates of the local offices and as well as information regarding the programs and services offered by the Department of Post-Secondary Education Training and Labour.

2.6.1 Employment Benefits

The number of Employment Benefits interventions fell significantly to a total of 32,474 (-19.4%) in 2014/2015. All the four benefit types also declined at a similar rate, except for TES which declined considerably (-53.3%), down to 2,692 due to a closure of this program. TWS (5,052), SD-R (23,050) and SE (1,680) all dropped by 17.1%, 13.1% and 12.3%, respectively. Despite the noticeable decline in SD-R, it continued to account for a greater share (71.0%) of all benefits delivered in the province, signalling a continued priority in Quebec. As for TWS, it accounted for a greater share (15.6%) despite the drop in its total numbers. The Employment Benefits total expenditures fell to $337.8 million (-2.8%) in 2014/2015, consistent with recorded decline in intervention numbers.

2.6.2 Support Measures: Employment Assistance Services (EAS)

In 2014/2015, the increased EAS share (88.4%) of all interventions served in the province reflects a continued demand in the use of Support Measures. The number of EAS interventions grew to a total of 248,678, compared to 243,873 in 2013/14, representing the highest level in 10 years. It also reflects the continued increase in the number of non-insured clients served. Significantly increased numbers of Employment Services were delivered in Quebec in 2014/2015, reaching a total of 146,501 (+6.5%). The share of this EAS type also rose to 58.9% (+2.5 percentage points year over year). Similarly, Quebec served a growing number of Individual Counselling interventions (70,349), an increase of 15.7%. Conversely, the province delivered a significantly lower number of Group Services interventions, totaling 31,828 in 2014/2015 (-30.1%), with the share of this EAS type dropping also significantly to 12.8% from last year's 18.7%. The total expenditures of EAS rose notably to $157.3 million (+12.5%).

2.6.3 Other Support Measures: LMPs and R&I

For a second consecutive year, Quebec's total LMP and R&I expenditures fell, dropping to $84.8 million in 2014/2015 (-9.7%). The total expenditures for LMPs was $84.5 million, a significant decline of 9.7%, while R&I expenditures expanded considerably, (+21.1%) to a total of $253,000. However, total LMPs and R&I funding represented a declining share of the total expenditures of EBSM-similar programming, down from last year's 16.2% to 14.6% in 2014/2015.

2.6.4 Managing for Results

Quebec uses an evidence based approach to identify and address the main challenges of its labour market. To manage for results, the province also uses a decentralized approach, and allocates budgets and outcome targets based on factors pertaining to local labour markets, as well as personal characteristics of EI applicants. A key component of this approach is an effective targeting and referral (TRF) system, which supports and advances the acceleration of employment integration of those ready to enter the job market. A continued focus on increasing awareness as well as adapting and facilitating the use of labour market information is also a key aspect of its effective practices in managing for results effective practices. It is also worth noting also is that Quebec is responsible for assessing the effectiveness of its EBSM-similar programming.

2.7.1 Employment Benefits

Ontario delivered 28,656 Employment Benefits interventions in 2014/2015, a year-over-year decline of 4.6%. Skills Development (SD-R) decreased by 12.8%, to a total of 8,049. SD-A grew slightly by 0.3% to 15,883. The other three benefit types all contracted, with TWS (1,806), SE (2,406) and JCPs (512) declining by 8.2%, 2.8% and 1.7%, respectively. Employment Benefits expenditures totalled $251.0 million in 2014/2015, compared to $279.0 million in 2013/14.

2.7.2 Support Measures: EAS

Following a notable growth in the previous two years, Ontario delivered a smaller number (144,011) of EAS interventions in 2014/2015 (-3.3%)—all delivered as Individual Counselling interventions. ^{Footnote 22} EAS expenditures totalled $290 million (+6.7%).

2.7.3 Other Support Measures

Ontario's expenditures for LMPs and R&I more than doubled in 2014/2015, to a total $29.5 million (+101%). A dramatic increase (+1,797%) in the R&I total expenditures to $15.9 million compared to $840,000 in 2013/14 lifted this year's overall total of LMPs and R&I. This is the result of launching the Canada-Ontario Job Grant in September 2014. Ontario used R&I funds ($15,974,503) to support the Canada Job Grant initiatives. LMP decreased moderately (-1.3%) this year, to a total of $13.7 million in 2014/2015, compared to $13.8 million last year. The considerable growth in overall total investment reflects the province's support and commitment to workforce innovation and improving knowledge of trends in local labour markets to better target resources to meet Ontarians' needs.

2.7.4 Managing for Results

To support clients with active employment programming, Ontario's Ministry of Training, Colleges and Universities, Service Canada and employment service providers conduct joint client information sessions with EI claimants. These sessions provide clients with information on programs and services offered by the province and support them in re-entering the workforce. These services are available to all clients, regardless of where they are in their EI claim.

To improve assessment and monitoring of EBSM programming, Ontario has a performance management system for Employment Services that focuses on core measures and standards for the Service Quality Standard (SQS). The SQS allows the province to effectively monitor the progress and performance of its service providers according to their: effectiveness, efficiency, and quality of customer service. The system ensures funded service providers understand what is expected of them by setting out clear and consistent expectations. This allows Ontario to evaluate program and service provider performance in a consistent, transparent and evidence-based manner.

2.8.1 Employment Benefits

Manitoba delivered a smaller number of Employment Benefits interventions in 2014/2015 totaling 6,206, a 4.2% year-over-year drop, consistent with the significant decline in active clients served. SD-A (3,932) and JCP (135) both increased, by 2.9% and 6.3% respectively. The other three benefit types all decreased, with SD-R (1,966) declining the most at 15.8%; followed by SE (120) at 14.9% and TWS (53) at 3.6%. Consequently, SD-R's share of all benefits declined, from 36.0% in the previous year to 31.7% in 2014/2015. Overall, the shares of SD-R and SD-A combined continued to account for an increasing proportion of all benefits (95.1%). Consistent with the decline in the numbers of Employment Benefits, its total expenditures also dropped significantly (-6.7%), to $27.6 million in 2014/2015.

2.8.2 Support Measures: EAS

An increasing number of EAS interventions (54,381) were delivered in Manitoba in 2014/2015, a significant increase of 15.1% (+7,138) year over year, reflecting a continued support to employment-ready clients for quick returns to work. The share of EAS of all EBSM interventions also grew to 89.8%, compared to 87.9% in the previous year. The increase in the number and share of EAS is largely due to the increase in the number of non-insured clients, which grew from 48.2% in 2013/14 to 52.6% of all clients served in 2014/2015. Conversely, the share of active claimants dropped from 39.1% to 34.7%, while that of former claimants remained unchanged at 12.7%. For a second consecutive year, the province delivered a greater number of Employment Services interventions, reaching 39,241 in 2014/2015, a considerable year-over-year growth of 26.4% (+8,195). In contrast, Individual Counselling has declined significantly, dropping from 16,197 in 2013/14 to 15,140 this year (-6.5%). EAS expenditures rose to $7.8 million (+4.7%), consistent with the expansion in those of Employment Services.

2.8.3 Other Support Measures: LMPs and R&I

After a noticeable decline in 2013/14, Manitoba's total expenditures for LMPs and R&I increased significantly to $7.6 million this year (+18.9%). Expansion in total expenditures was mainly driven by a sharp growth in R&I to $2.0 million (+61.5%), of which $1.4 million supported the Canada-Manitoba Job Grant initiatives. A significant increase (+8.7%) in LMPs expenditures lifted its total to $5.6 million. Together, the overall growth of LMPs and R&I expenditures represented an increasing share (17.7%) of EBSM-similar programming, as compared to last year's (14.8%).

2.8.4 Managing for Results

To support clients with active employment programming, Manitoba has developed and implemented an Employment and Training Assessment (ETA) tool as part of the intake process for all clients. The tool is used to assess an individual's employability and work readiness to determine appropriate interventions based on the assessment results. Manitoba is updating existing information systems (i.e. the Integrated Case Management System and the Service Provider Reporting System) to support implementation of the ETA across the external service provider network and ensure a level of standardization of client assessment.

2.9.1 Employment Benefits

A significantly smaller total number of Employment Benefits (7,570) were delivered in Saskatchewan in 2014/2015, compared to 8,200 in the previous year, with the three benefit types all declining. SD-A, the most commonly used benefit intervention in the province, decreased (-7.0%) to 6,566. Similarly, the numbers of SD-R (938) and SE (66) both declined significantly, by 11.7% and 14.3%, respectively. Consistent with growth in its numbers, SD-A accounted for a growing share of 86.7% of total benefits, compared to 86.1% in the previous year, reflecting a continued emphasis on meeting rising demand for skilled trades in the province. Overall, expenditures for Employment Benefits rose to $28.6 million (+2.7%).

2.9.2 Support Measures (EAS)

The numbers of EAS delivered in Saskatchewan in 2014/2015 expanded to a total of 10,839 (+4.2%), consistent with increased demand by clients ready for quick returns to employment in the province's robust labour market. Saskatchewan delivered more Individual Counselling (4,785) and Group Services (560) interventions (+9.1% and +18.9%, respectively), while the use of Employment Services dropped slightly to 5,494 (-0.9%). For a second consecutive year, EAS expenditures declined significantly, down to $4.7 million in 2014/2015 (a year-over-year decrease of 15.7%), another indication of a strong labour market.

2.9.3 Other Support Measures: LMPs and R&I

Saskatchewan's total expenditures for LMPs and R&I fell significantly to $2.6 million, compared to $3.0 million in 2013/14. LMP's funding ($2.4 million) recorded a notable decline of 8.0%. At a drop rate of 55.6%, R&I's declined sharply to a total of $0.2 million, almost half the value recorded in 2013/14.

2.9.4 Managing for Results

Saskatchewan's Outcomes-Based Contract Management (OBCM) is developed in collaboration with community-based organizations to support shared commitments to positive results for job seekers and employers. It also improves client outcomes. The province has negotiated specific outcomes directly into contracts with third party suppliers, so that they understand what they are responsible for achieving and how their performance will be measured.

2.10.1 Employment Benefits

Alberta delivered more Employment Benefits (24,288) interventions in 2014/2015, a significant year-over-year growth of 6.5% and a four-year high. SD-A (+11.2%) and TWS (+19.5%) both expanded by reaching 22,492 and 49, respectively. In contrast, the numbers of the other three benefit types all declined significantly, with SD-R dropping to 1,029 (-39.0%), SE falling by 42.0% to 120 and JCP down by 7.9% to 598 interventions. SD-A continued to account for a growing share (92.6%) of all benefits, compared to 88.7% in the previous year. Furthermore, the share of SD-A and SD-R combined represented 96.8% of all benefits. The expenditures of Employment Benefits totalled $84.0 million, a year-over-year increase of 4.9%.

2.10.2 Support Measures: EAS

The number of EAS interventions delivered in Alberta declined for a fifth consecutive year, reflecting Alberta's strong long-term economic growth trend and its robust labour market. The province delivered a total of 212,188 Employment Services interventions in 2014/2015, a significant year-over-year drop of 9.3%. Similarly, the EAS expenditures also fell notably (-14.4%) in 2014/2015, its lowest value since 2005/06, at $23.2 million.

2.10.3 Other Support Measures: LMPs

After a significant increase of 12.3% in 2013/14, Alberta's investment in LMPs remained stable at $2.0 million in 2014/2015. In addition, LMPs funding's share of the total EBSM's expenditures stayed unchanged at 1.8%. Alberta's continued investment in LMPs reflects a collaborative labour force partnership focused on the labour force needs of business and industry, support of employers hiring underrepresented workers and the promotion of workplace essential skills.

2.10.4 Managing for Results

To support EI clients with active employment programming, Alberta is engaged in the Citizen Centred Integrated Service Delivery (CCISD) planning stage. One component is to identify Career and Employment programming for those closer to the labour market while also building more supportive programming for those who are farther from the labour market.

2.11.1 Employment Benefits

A total number of 19,505 Employment Benefit interventions were delivered in 2014/2015 (+2.7%). All the benefit types expanded, with the exception of Self Employment, which fell significantly (-5.7%) to 1,946; reflecting that unemployed participants are more likely to opt for employment over starting a business in a context of a robust economy. JCP (+16.9%) and TWS (+11.7%) expanded at the fastest pace, reaching 498 and 1,295, respectively. SD-A (+3.3%) and SD-R (+0.7%) both experienced growth, though at a slower pace, reaching a total of 12,399 and 3,367, respectively. Consistent with the growth in the numbers of Employment benefit interventions, their respective total expenditures also increased, reaching $163.7 million in 2014/2015 compared to $158.5 million in the previous year (+3.3%).

2.11.2 Employment Assistance Services

Following a notable increase in the total number (205,855) of EAS interventions delivered in 2013/14, the province served a smaller number of 190,141 interventions (-7.6%) in 2014/2015. Despite the decline in the total EAS numbers, Group Services (602) experienced a phenomenal growth, increasing sharply from the 88 total of 2013/14. The other two EAS types declined, with Individual Counselling (57,829) and Employment Services (13,710) both decreasing significantly by 9.3% and 7.3%, respectively, year over year.

2.11.3 Other Support Measures: LMPs and R&I

Following a continued increase in terms of investments in LMP and R&I over the last several years, with total investment reaching a peak of $21.9 million in 2013/14 (+47.8%), funding for these two initiatives dropped significantly (-9.7%) in 2014/2015, down to $19.8 million. Investment in R&I continued to increase (+6.5%) reaching $12.9 million, which can be attributed to British Columbia using R&I funds ($3.3 million) to support the Canada-British Columbia Job Grant initiatives. LMP expenditures dropped sharply (-29.7%) down to $6.9 million, compared to $9.8 million in the previous year.

2.11.4 Managing for Results

In 2014/2015, British Columbia planned the implementation of the Targeting, Referral and Feedback (TRF) initiative to support EI clients with active employment programming earlier in their EI claim (launched in fall 2015). This tool is anticipated to improve early client interventions; better job matching for the unemployed or those who need earlier assistance to enable quicker returns to work; and an overall increase in EI clients served by the province's Employment Program of British Columbia (EPBC). Additionally, British Columbia launched a formal evaluation of its EPBC in 2014/2015 to gain practical insights into the success and impacts of the program and the relevance and effectiveness of its design and delivery.

2.12.1 Employment Benefits

The number of Employment Benefits interventions delivered in the territory declined, for a fifth consecutive year, to 280 in 2014/2015 (-13%). Decreases were observed across most benefit types, with a substantial drop in SE (-36.4%); SD-A (-14.4%); and TWS (-13.0%). The decline can be attributed to the lower numbers of active and former claimants who participated in the program, and also the territory's strong economic performance in 2014. However, SD-R saw an increase of 4.8%, in line with the territory's focus on building human capital through skills development. Employment Benefits total expenditures fell to $1.4 million (-11.5%) in 2014/2015.

2.12.2 Support Measures: EAS

The Northwest Territories delivered fewer (864) Individual Counselling interventions in 2014/2015, representing a significant drop of 11.2% year over year. The total expenditures of EAS increased, reaching $1.3 million in 2014/2015, compared with $1.1 million in the previous year.

2.12.3 Other Support Measures: LMPs

Expenditures for LMPs fell significantly in 2014/2015, to $133,000, representing a drop of 60.8% year over year. In addition, the Northwest Territories used R&I ($27,318) as a funding source to support the newly launched Canada-Northwest Territories Job Grant initiatives.

2.12.4 Managing for Results

To support EI clients with active employment programming earlier in their EI claim, Northwest Territories is reviewing the Information Sharing Agreement (ISA) for the LMDA, putting procedures in place to utilize the Targeting, Referral and Feedback (TRF) component to engage with EI claimants. This will ensure that these clients are fully informed regarding any and all employment opportunities that may exist in their field.

To strengthen the capture and the use of data, Northwest Territories government implemented a new approach for all unemployed clients (EI- and non-eligible clients alike) accessing services. A Skills Inventory database is being created to allow potential employers to contact clients, if there are jobs available that match their skill set. This initiative will be a valuable resource for all employers seeking to employ local labour.

2.13.1 Employment Benefits

In 2014/2015, Yukon delivered a total of 227 Employment Benefits interventions (-6.6%). SD-A, the most used employment benefit, dropped by 9.2%, totalling 177 interventions. Its share of all benefits slid from 80.2% to 78%. SD-R edged up by 12.5% to a total of 45 interventions, as its share of all benefits increased to 19.8%. SE contracted by 67% year over year. Employment Benefits expenditures totalled $1.9 million (-4.6%).

2.13.2 Support Measures: EAS

Consistent with Yukon's labour market performance, the territory delivered fewer Employment Services interventions (293) in 2014/2015, a substantial decrease of 10.9% year over year. For a second consecutive year, no Individual Counselling interventions were delivered in the territory, reflecting a pattern of decreased usage over recent years. Total EAS expenditures were $1.3 million (+3.3%).

2.13.3 Other Support Measures: LMPs

In 2014/2015, Yukon did not report any expenditure on LMPs, a measure that has seen a steady decline since 2012/13. In the previous year, only $5,000 was spent on LMPs.

2.13.4 Managing for Results

In Yukon, the capture and use of data to improve program results is through the new Labour Market Information (LMI) Portal. This website gathers Yukon specific LMI from a variety of sources such as Statistics Canada, Yukon Bureau of Statistics, Canada Job Bank, Yukon WorkFutures, Yukon Occupational Modeling System and others. In doing so, the Portal provides relevant labour market data, supporting LMDA evidence-based investments and improving program results.

14.1 Employment Benefits

Nunavut delivered a total of 256 Employment Benefit interventions, a significant jump of 52.4% year over year. SD-R contributed to this increase by a staggering 114.4%. SD-A increased as well, by a rate of 56%. TWS fell significantly by 83.7%, down from last year's 43 to only 7 in 2014/2015. Given the large increase in SD-R, its share of Employment Benefits grew significantly, from 57.7% to 81.3%. TWS lost a large chunk of its share, going from 25.6% to 2.7%. Employment Benefits total expenditures remained stable at $1.33 million in 2014/2015, compared to $1.35 million the previous fiscal year.

14.2 Support Measures: EAS

For a fourth consecutive year, EAS interventions increased significantly. The territory delivered a total of 678 Employment Services interventions, a remarkable year-over-year increase of (+78.9%)—signalling a greater demand for this intervention type as the gateway to all programs. EAS total expenditures reached $1.0 million in 2014/2015.

14.3 Other Support Measures: LMPs and R&I

As has been the case in the previous year, Nunavut made no new investments in LMPs and R&I.

14.4 Managing for Results

Nunavut is closely monitoring its results to better understand how best to engage with EI claimants to promote early interventions. Through increased community and employer engagement, the territory continues to inform potential clients about the programs and services available to them. New promotional material has been developed for this purpose, and distributed.

Increased capacity for the collection and collation of labour market information continues to better inform the unemployed about current and future labour market demands, and opportunities for (re) training.

3.1.1 Methodological Approach

The role of the incremental impact analysis is to isolate the effects of EBSM participation on participant's key labour market indicators (e.g., earnings, employment and EI use) from other factors such as inflation, economic cycles, etc. As shown in Diagram 1 below, this is achieved by comparing key labour market indicators (e.g., earnings) for participants before and after their participation, with those for non-participants before and after the same period.

The study reported in this year's edition of the EI Monitoring and Assessment Report examined incremental impacts for active and former claimants who met the criteria of the EI claimant category "long-tenured workers". These individuals are referred to as active and former claimants who were "long-tenured workers" in the remaining parts of this section. The study focused on individuals who started their EBSM participation across all 13 provinces and territories between January 1, 2007 and December 31, 2009 and measured impacts over three years after participation (i.e., three consecutive years between 2007 and 2013).

A different comparison group was used for active and former claimants. The comparison group for active claimants was composed of active claimants who were "long-tenured workers" but did not participate in EBSMs. It was not possible to create a comparison group of non-participants for former claimants using administrative data, because available data do not identify whether former claimants who did not participate in EBSMs were motivated to find employment. Therefore, for former claimants, the impacts of Skills Development (SD), Targeted Wage Subsidies (TWS), Self-Employment (SE) and Job Creation Partnerships (JCP) were measured relative to former claimants who were "long-tenured workers" and who received only Employment Assistance Services (EAS-only). As two different comparison groups were used, the results for active claimants are not directly comparable to those for former claimants.

Text description of Example of Incremental Impact Calculation

Participants

Average Annual Earnings

• Before participation
  
  = $30,000
• After participation
  
  = $38,000
• Change in earnings
  
  = +$8,000

Comparison Group

Average Annual Earnings

• Before participation period
  
  = $31,000
• After participation period
  
  = $36,000
• Change in earnings
  
  = +$5,000

Incremental Impact

• (Change due to program participation)
• +$3,000
  
  (i.e., $8,000 - $5,000)

Since participants usually receive a continuum of services (e.g., EAS plus SD), results were measured for all EBSMs received by a participant as long as there was no more than a 6 month gap between each EBSM. The results were attributed to the longest EBSM each person received (e.g., SD). This means that the impacts of providing EAS along with SD, TWS, SE or JCP were accounted for in the calculations; however, it was not possible to identify what proportion of those impacts is attributable to EAS. Results for EAS were measured for active claimants who only received EAS without receiving another EBSM (referred to as EAS-only)

The analysis relied solely on administrative data from the EI part I and II databank and taxation files from the Canada Revenue Agency. The following sections reports incremental impacts of EBSMs for the following indicators:

• Average earnings from employment and/or self-employment: An increase in earnings indicates that participants improved their employment situation by either working more hours and/or by having a better paying job than they did before participation and relative to the experience of the comparison group.
• Incidence of employment (i.e., incidence of having earnings from employment and/or self-employment): Measures whether participants were more likely to be employed after participation and relative to the comparison group.
• Amount of EI benefits received: Measures the changes in the average amount of EI benefits collected from before to after participation and relative to the comparison group.
• Average number of weeks in receipt of EI: Measures the change in the average number of weeks during which participants were in receipt of EI relative to the comparison group.

3.1.2 Caveats about the Study

The criteria used to define the EI claimant category "long-tenured workers" do not consider the number of years the worker remained employed with the same employer. Therefore, the results of this analysis do not pertain to long-tenured workers as commonly defined in the literature. Instead, the results pertain to a larger category of workers who had regular employment or long-term attachment to the workforce but not necessarily with the same employer.

The process for matching participants and the comparison group aimed to ensure that participants and the comparison group were similar in terms of age, sex, location, skills level required by the last major occupation held prior to participation, reason for separation from employment, industry in which they were previously employed as well as employment earnings and use of EI and Social Assistance before participation. As well, the comparison group is composed of individuals who met the criteria set out in the EI claimant category "long-tenured workers".

Overall, the matching process used all relevant data available to capture factors that could affect the decision to participate in EBSMs or the outcomes from EBSM participation. However, it is possible that some other factors were not reflected in the data available. For example, workers who were employed in the same workplace for a long period accumulated job-specific human capital and may suffer from large wage loss following their re-employment if this new employment does not require their skills.

This factor is not accounted for in the matching process. As a result, it is not possible to know whether participants and the comparison groups were similar in terms of level of job-specific human capital accumulation and in their likelihood of being re-employed in a job that would require their skills. This may not be a major consideration since the study is not focusing strictly on individuals who had a long tenure with the same employer. However, when interpreting the results, readers should be aware that incremental impacts may be affected by factors not captured by the matching process.

3.1.3 Incremental Impacts for Active Claimants

The following description focuses on discussing impacts that are statistically significant at a 95% confidence level or above. Table 15 below provides details on incremental impacts measured in each of the three post-program years as well as the annual average impacts and the total impacts over the total post-program period. The description in section 1.3 and 1.4 focuses on discussing the average annual impact over the post-program period (i.e., average of the impacts measured over the first, second and third year after participation).

Overall, incremental impacts presented in Table 15 show that participating in SD, JCP and EAS-only helped active claimants who were "longtenured workers" reduce their use of EI after participation. Participating in SD, TWS and JCP also helped them improve their incidence of employment. However, those gains in employment and reductions in EI use were often accompanied by reductions in earnings.

Skills Development (SD): Active claimants improved their incidence of employment and reduced their use of EI in all three years after participation. Their incidence of employment increased, on average, by 3.6 percentage points per year relative to the comparison group. Their use of EI benefits decreased, on average, by $206 per year. Although they increased their employment and reduced their use of EI, these individuals earned $2,854 less from employment in the first year after participation. Their earnings started to increase in the second ($254) and third years ($1,548) after participation. As shown in Table 15, those increases could not compensate for the decrease in the first year after participation.

Targeted Wage Subsidies (TWS): Active claimants were more likely to be employed after participating in TWS. On average, their incidence of employment increased by 2.3 percentage points per year. The employment gains, however, were accompanied by decreases in earnings averaging $960 per year. Results suggest that TWS did not have much of an impact on EI use as EI usage increased by 0.2 weeks per year on average after their TWS participation. Impacts on EI benefits were not statistically significant.

Self-Employment (SE): Following their SE participation, active claimants decreased their earnings by an average of $14,338 per year. They also decreased their incidence of employment by an average of 21.7 percentage points per year. These results should be interpreted with caution, as they may not be fully reflective of the financial situation of participants. ^{Footnote 25} Active claimants also decreased their use of EI following participation in SE. Such results should be interpreted with caution, as self-employed individuals are not entitled to EI regular benefits. Therefore, the decreases in EI use could be partly due to EI eligibility effects.

Job Creation Partnership (JCP): Participating in JCP improved the incidence of employment of active claimants. These individuals increased their incidence of employment by 5.6 percentage points annually, on average. Their use of EI benefits also decreased after participation by an average of $244 per year. While those results show that active claimants were more likely to be employed and had lower use of EI after participation, no clear conclusion can be drawn about their earnings, as most results were not statistically significant.

Employment Assistance Services (EAS)-only: Active claimants reduced their use of EI benefits after their EAS-only participation by an average of $214 per year. However, they were less likely to be employed as their incidence of employment decreased by an average of 1.1 percentage points per year. They also earned less from employment as their earnings decreased by an average of $1,588 per year. Overall, along with SE, EAS-only had the least favorable result of all EBSMs examined for active claimants.

3.1.4 Incremental Impacts for Former Claimants

The results for former claimants who were "long-tenured workers" are presented in Table 15. With the exception of those who took part in SE, former claimants increased their use of EI after participation. For those who participated in SD and TWS, the increases in EI use were accompanied by gains in earnings and incidence of employment. The results were less favourable for former claimants who participated in JCP since they reduced their employment earnings after participation.

Skills Development (SD): Former claimants who were "long-tenured workers" experienced a decrease in employment earnings in the first year after participation (-$914) and increases in the second ($674) and third years ($1,155). However, they improved their incidence of employment in all years after participation by an average of 3.9 percentage points per year. Their use of EI benefits decreased only in the first year after participation (-$166) but increased in the second ($203) and third years ($276).

Targeted Wage Subsidies (TWS): Participation in TWS resulted in increasing both the earnings and incidence of employment of former claimants. The gains averaged $3,203 and 5.7 percentage points per year, respectively. Those gains were accompanied by increases in EI use averaging $272 per year.

Self-Employment (SE): As observed among active claimants, former claimants decreased their earnings, incidence of employment and use of EI after participating in SE. The decreases in earnings and incidence of employment should be interpreted with caution due to methodological reasons while the reductions in EI use should also be interpreted with caution due to the fact that self-employed individuals are not entitled to EI regular benefits.

Job Creation Partnerships (JCP): Following their participation in JCP, former claimants increased their use of EI benefits by an average of $401 per year relative to the comparison group. They also reduced their employment earnings in all years after participation by an annual average of $2,389. It is not possible to draw conclusions about their incidence of employment as results were not statistically significant.

3.1.5 Lessons Learned from the Incremental Impacts

Incremental impact analyses reported in the 2012/13 and 2013/14 EI Monitoring and Assessment Report showed that EBSMs, except SE and EAS-only, are generally effective at improving the earnings of all active claimants. EBSMs are also generally effective at increasing the incidence of employment and reducing the EI use by all active claimants. The results presented for active claimants who were "long-tenured workers" depict a mixed portrait. They indicate that participation in SD, TWS and JCP increased the incidence of employment for these individuals. They also indicate that participation in SD, JCP and EAS reduced the use of EI. However, there were decreases in employment earnings in the short-term for SD, and in all three years following participation for TWS and EAS-only.

Overall, the results suggest that some EBSMs may be effective at returning active claimants who were "long-tenured workers" to employment, but they may have a limited effect, at least in the short-term, in terms of offsetting the earnings loss they experienced following their job separation. As explained in section 1.2 above, there is a possibility that the results could have been affected by factors (i.e., differences between participants and the comparison group) that were not accounted for in the matching process. In particular, controlling for the earnings loss incurred by workers who had a high level of job-specific human capital is challenging.

It is also important to note that other studies have shown that individuals who worked for the same employer for a long period of time suffered a wage loss after losing their employment. ^{Footnote 26} Although the present study covered a larger group of individuals who had long term employment; this group included workers who had a long tenure with one employer. In this context, the incremental decreases in earnings found for active claimants in the "long-tenured worker" EI claimant category are not totally unexpected.

Finally, as shown in Table 15, earnings impacts for active and former claimants in SD and active claimants in TWS and EAS-only improved over time. This suggests that EBSMs may have a more positive impact on earnings of these participants in the medium-term as compared to the short-term.

The results for former claimants who were "long-tenured workers" are in the same direction as those reported in the 2012/13 and 2013/14 EI Monitoring and Assessment Report for all former claimants. Similar to the results for all former claimants, the results for former claimants who were "long-tenured workers" show that they improved their earnings and incidence of employment following SD and TWS participation as well as increased their EI use following participation in any EBSM, except SE.

• * Statistically significant results at the 95% confidence level or higher
• ¹Random sample of 40% of participants

3.2.1 Methodological Approach

This recent analysis was conducted for all active and former claimants who started SD, TWS, JCP and EAS-only between 2002 and 2005 (results reported in the 2012/13 EI Monitoring and Assessment Report). This was the most recent cohort of participants possible considering that 2012 was the most recent year of Canada Revenue Agency data available at the time of undertaking the study. Overall, the study compared costs and benefits over the participation period of one or two years, and six years after participation, representing up to eight consecutive years that occurred between 2002 and 2012.

SE was not examined because of the methodological limitations surrounding the incremental impacts analysis (see explanation provided in section 1 about incremental impacts of SE for active claimants who were long tenured workers).

Costs and benefits from a social perspective are as follows: ^{Footnote 28}

• Program cost: consists of the administrative costs and the direct cost paid by the government for delivering the program.
• Marginal social costs of public funds (MSCPF): represents the loss incurred by society when raising additional revenues such as taxes to fund government spending. The value was estimated as 20% of the program cost, sales taxes, income taxes, impacts on EI and impacts on SA paid or collected by the government.
• Employment earnings: consists of incremental impacts on participants' earnings during and after participation.
• Fringe benefits: are the employer-paid health and life insurance as well as pension contributions. They were estimated as 15% of the incremental impact on earnings.

Although this analysis is more sophisticated than any of the previous EBSM cost-benefit analyses, it is still limited. While it accounts for all quantifiable costs and benefits that are directly attributable to EBSMs, it does not account for non-quantifiable benefits such as improvements in a participant's wellbeing or for the multiplier effect on the economy. When interpreting the results, readers should keep in mind that many public programs may not result in a direct return on investment for the government. For example, a government would not make direct financial gains from building a bridge, but this bridge would result in significant economic benefits for society.

3.2.2 Results for Active Claimants

Skills Development (SD): Incremental impacts showed that SD is effective at improving the earnings and incidence of employment, as well as reducing the use of EI by active claimants. As indicated in Table 16 below, the cost-benefit analysis revealed that the benefits of SD were $4,600 lower than the costs six years after participation. Those results are partly explained by the substantial earnings loss experienced by active claimants while on training. The benefits of SD would have to persist over 7.4 years after participation in order to recover the costs. Since SD focuses on human capital development, it is reasonable to expect the benefits from this intervention to last and even increase over a lifetime.

Targeted Wage Subsidies (TWS): As demonstrated by the incremental impact analyses, active claimants who participated in TWS had better earnings and incidence of employment following participation but also used more EI. The cost-benefit analysis showed that the total benefits of TWS six years after participation exceeded the costs by $167. The costs of this program were recovered within 5.9 years after the end of participation.

Job Creation Partnerships (JCP): The incremental impact analyses revealed that JCP is effective at improving active claimants' earnings and incidence of employment as well as at reducing their use of EI in the short-term after participation. The cost-benefit analysis showed that six years after participation, the benefits of JCP exceeded the costs by $366. The benefits equalled the costs within 5.9 years after participation.

Employment Assistance Services (EAS)-only: The incremental impact analysis indicated that EAS-only is effective at achieving its objective of helping unemployed individuals to return to employment as it improved active claimant's incidence of employment and reduced their use of EI after participation. However, the cost-benefit analysis showed that the benefits of EAS-only were $3,280 lower than the costs six years after the end of participation. The benefits from EAS-only would need to persist over 10.9 years in order to recover the costs.

Readers should note that the cost-benefit result is partly due to the decreases in earnings experienced by active claimants during and immediately after participation. The main expected outcome from EAS-only is the return to employment itself, and not necessarily an improvement in earnings as EAS-only does not focus on skill acquisition. The value of the return to employment was not accounted for in this analysis since it is difficult to attribute a dollar figure to such an event. The decrease in EI use was also not considered, because it represents a benefit for the government and a cost to the individual – both of them cancel each other out.

3.2.3 Results for Former Claimants

Skills Development (SD): The incremental impact analyses showed that SD improved former claimants' earnings and incidence of employment. However, they generally increased their use of EI after participation. As shown in Table 17, the benefits from SD were $5,176 lower than the costs six years after participation. The benefits would have to persist over 8.6 years after participation in order to equal the costs. As explained for active claimants, it is reasonable to expect the benefits of SD to persist over a longer period since the effects from skill acquisition may last and even increase over a lifetime.

Targeted Wage Subsidies (TWS): As demonstrated in the incremental impact analyses, TWS was effective at improving former claimants' earnings and incidence of employment but they used more EI after participation. From a cost-benefit stand point, TWS had the most positive results of all EBSMs for former claimants. Six years after the end of participation, its benefits exceeded the costs by $12,452. The costs of this Employment Benefit were recovered within the second participation year.

Job Creation Partnerships (JCP): Incremental impacts for former claimants who participated in JCP showed that this program is effective at increasing their earnings and incidence of employment but also increased their use of EI after participation. As shown in Table 17 below, the benefits of JCP from the social perspective were $9,338 lower than the costs six years after participation. The benefits from JCP may never recover the costs.

3.2.4 Lessons Learned from the Cost-Benefit Analysis

The incremental impact analyses reported in the previous two EI Monitoring and Assessment Reports showed that EBSMs, except SE, are generally fulfilling their objective of helping unemployed individuals find employment. The cost-benefit analysis provides some insights about how the direct quantifiable benefits from EBSMs compare to the quantifiable costs of those programs.

Results show that, from a social perspective, the costs of TWS for both active and former claimants and of JCP for active claimants can be recovered within less than six years after participation. The costs of SD may be recovered within seven to nine years after participation. In this regard, it should be acknowledged that SD requires a significant investment from the government since its costs are relatively high compared to other EBSMs. It also requires a significant investment from the participants whom experience earnings loss while on training. However, since SD focuses on skill acquisition and human capital development, its benefits can last many years, if not a life time.

The benefits from JCP, when offered to former claimants, may never match the costs of this program. However, JCP funds help develop the community and the local economy, but none of those benefits were taken into account in the cost-benefit analysis.

The benefits from EAS-only would need to persist over more than 10 years to recover the costs. EAS-only participants had reductions in their employment earnings in the short-term after participation, even though these interventions are effective at helping unemployed individuals return to employment. In addition, evidence from another recent evaluation study ^{Footnote 29} , conducted by ESDC showed that participating in EAS-only early during an EI benefit period leads to higher earnings and employment impacts as compared to participating later. This suggests that reaching unemployed individuals soon after they open an EI claim may improve the program success. Further analysis would be required to determine if this could also improve the cost-benefit results. In addition, there are significant benefits associated with EAS-only that are not quantifiable.

4.3.1 Sectoral Initiatives Program (SIP)

Launched on April 1, 2013, the Sectoral Initiatives Program (SIP) aims to address current and future skills shortages by supporting the development and distribution of sector-specific labour market intelligence (LMI), national occupational standards (NOS), and skills certification and accreditation systems.

The SIP's mandate is to help industries identify, forecast, and address their human resources as well as their skills issues. The SIP funds partnership-based projects for key sectors of the Canadian economy from both the federal Consolidated Revenue Fund and EI Part II. These projects are developed and implemented by such industry partners as workplace organizations; employer associations; education and training bodies; professional associations; unions; and, Indigenous organizations.

Through its LMI business line, the SIP supports the development, validation and distribution of timely, national, sectoral and cross-sectoral LMI. SIP also plays an important role within the Department, in engaging with employers and industry stakeholders, facilitating deeper sectoral analysis and informing government policy and program issues.

In funding the development of NOS, the SIP aims to helping the different industry sectors document and communicate sector-specific skills requirements to educators, trainers, employers and workers.

By supporting employee certification and learning program accreditation, the SIP provides a key solution for integrating a formal quality control framework for education and training, founded on employer-validated NOS, to help ease labour mobility and labour market adjustment.

The SIP funds 33 multi-year agreements that exist for projects currently being implemented with various stakeholders representing different industry sectors for the development of the following products: labour market information and/or forecasting systems (42%), NOS (12%), certification and accreditation (10% combined) and multiple activities (36%). For example, in 2014/2015, the SIP was funding several cross-sectoral projects as well as projects for the: environment, tourism, mining, transportation, oil and gas, manufacturing, agriculture, forestry, information technology, aerospace, supply chain, and construction sectors.

In 2014/2015, 85 new labour market research reports and 12 forecasting systems were developed and released through SIP agreements in sectors such as construction, environment, oil and gas, as well as mining. More than 5,000 people used these reports and forecasting tools. Fifty NOS were created or updated, and the SIP contributed to the development of 36 certification programs and 22 accreditation programs. Furthermore, the program succeeded in leveraging almost $10M from the private sector and other stakeholders. Many of the projects have not yet achieved their ultimate objectives as they are multi-year projects. The following is an example of a project that involved developing or updating an LMI and/or forecasting program/system.

4.3.2 National Occupation Classification (NOC)

The National Occupational Classification (NOC) provides a standard taxonomy for dialogue on the world of work and a national framework for collecting, analyzing and disseminating occupational data for Labour Market Information (LMI), as well as employment-related program administration. It comprises more than 40,000 occupational titles grouped into 500 Unit Groups ("NOC codes"), organized according to skill levels and skill types. Each Unit Group describes Main Duties and Employment Requirements, in addition to providing examples of occupational titles.

The NOC is used by students; workers; employers; educational and training organizations; as well as career and vocational counsellors, to support career exploration and informed career decision-making. It is also used by researchers and to support policy and program design, as well as service delivery. It is the foundation for capturing occupation-related LMI in Canada.

Managed jointly by ESDC and Statistics Canada since 1966, the NOC is revised every five years, in line with Census and National Household Survey cycles, to reflect labour market dynamics. The most recent NOC 2011 was released in January 2012, and NOC users are in the process of moving to the NOC 2011 structure. Work is continuing on migrating ESDC systems and programs to the NOC 2011. Work is also well underway with Statistics Canada on revisions to the NOC for the next release in 2016.

4.3.3 Skilled Trades and Apprenticeship, and the Red Seal Program

Apprenticeships are essential to building a highly skilled and mobile trades workforce that supports Canadian competitiveness. The Interprovincial Standards Red Seal Program is Canada's standard of excellence for training and certification in the skilled trades and provides a vehicle to promote harmonization. The program is well-established at developing common interprovincial standards for trades. In most provinces and territories, the Red Seal examination is used as the certification exam for Red Seal trades. Under this program, experienced tradespeople and apprentices, who have completed their training, may take the interprovincial Red Seal examination. If successful, they receive a Red Seal endorsement on their provincial or territorial certificate of qualification.

The Red Seal endorsement is widely recognized and respected by industry as a standard of excellence in the skilled trades. Each year, approximately 44,000 completing apprentices and qualified uncertified tradespeople from across Canada write Red Seal examinations, and over 25,000 Red Seals are issued.

The Canadian Council of Directors of Apprenticeship (CCDA), comprised of the apprenticeship authorities from each province and territory and representatives from ESDC, administers the Red Seal program. In addition to functioning as the national secretariat—providing administrative, operational and strategic support—ESDC provides significant funding for the Red Seal Program.

The Red Seal program currently covers 57 skilled trades, which encompass 77% of registered apprentices. ^{Footnote 31} ESDC works closely with industry experts and apprenticeship authorities to coordinate the development of high-quality Red Seal products, including National Occupational Analyses (NOAs) and interprovincial examinations. These products are updated periodically to reflect evolving labour market needs. Because each province and territory needs standards and examinations to certify thousands of apprentices and trade qualifiers each year, the collaboration involved in developing interprovincial Red Seal standards and examinations results in significant economies of scale for governments.

The core of the Red Seal Program lies in quality interprovincial standards for industry, against which tradespeople can be trained and assessed. With ESDC support, the CCDA collaborates to build these standards with industry from across Canada. The program also encourages the harmonization of apprenticeship training outcomes through common standards, which provinces and territories use to inform the in-school portion of apprenticeship programs. In 2014/2015, ten new National Occupational Analyses and two Interprovincial Program Guides were published.

In 2014/2015, significant work was done to develop enhanced standards for the Construction Electrician and Steamfitter/Pipefitter trades under the Strengthening the Red Seal (SRS) initiative. Continuous improvement is essential to ensure that the Red Seal Program and its standards remain rigorous, relevant to industry and labour market demands and is nationally recognized. New occupational standards were developed through national workshops and were piloted to include industry-defined performance expectations, evidence of skills attainment and learning outcomes. The project established industry advisory committees for each pilot trade which give industry a more direct role in guiding the process of standards development. Evaluation of the pilot was carried out and the final evaluation will be used to inform enhancements to the development processes going forward.

To further reduce barriers to accreditation in the skilled trades in Canada and increase opportunities for apprentices, the Government of Canada continues to work closely with provinces and territories through the CCDA to facilitate the harmonization of apprenticeship training requirements in targeted Red Seal trades. Harmonization will encourage labour mobility across the country and help more apprentices complete their training. In July 2014, the Forum of Labour Market Ministers (FLMM) endorsed the CCDA's Harmonization initiative as a top priority with a focus on harmonizing the first ten Red Seal trades ^{Footnote 32} . As part of this work, the CCDA identified four harmonization priorities in consultation with industry and training stakeholders: use of the Red Seal trade name; consistent total training hours (in-school and on-the-job); same number of training levels; and more consistent sequencing of training content using the most recent National Occupational Analyses. In 2014/2015, the CCDA developed proposed harmonization recommendations for the first 10 Red Seal trades and consultations with industry and training stakeholders were held for seven of the 10 trades. The CCDA also hosted pan-Canadian webinars with stakeholders to reach consensus on harmonization recommendations for the Carpenter, Welder and Metal Fabricator (Fitter) trades.

With ESDC support, CCDA representatives meet annually with national apprenticeship stakeholder groups to provide updates and seek input on key initiatives. At the CCDA's 2015 meeting, 30 national stakeholders confirmed their support for the work underway on the CCDA's strategic priorities with respect to the Red Seal Program, such as work to strengthen the Red Seal Program, employer engagement and promote the harmonization of apprenticeship training and trade certification requirements in targeted trades.

ESDC continues to work with provinces and territories to increase employer engagement in apprenticeship. In 2014/2015, ESDC, on behalf of the CCDA, commissioned a research report ^{Footnote 33} to inform the development of new collaborative efforts by the FLMM to encourage employer participation. In addition, ESDC, working with Public Works and Government Services Canada and Defence Construction Canada, launched the Apprentice Procurement Initiative in June 2014 to support the use of apprentices through federal construction and maintenance contracts.

The Red Seal website (www.red-seal.ca) is the communications portal for the Red Seal Program. In 2014/2015, the CCDA, with ESDC funding, undertook to improve awareness of apprenticeship and the Red Seal Program through an enhanced and user-friendly website. Communications and outreach resulted in more than 210,000 visitors on the Red Seal Program's website, for a total of 1,164,862 page views, over the course of the year. The Red Seal kiosk and promotional materials informed Canadians about the value of the Program and apprenticeships at nine public events across Canada. As the National Secretariat for the program, in 2014, ESDC responded to more than 2,000 e-mails and 750 Red Seal Info Line messages.

Through the Red Seal Program, essential skills tools are developed to help apprentices build their essential skills such as numeracy, document use and problem solving. In 2014/2015, there were a total of 67,352 visitors to the Essential Skills tools on the ESDC website.

The Government of Canada introduced new measures to support apprentices and improve the apprenticeship system. The Canada Apprenticeship Loan (CAL) was launched in January 2015 to provide apprenticeships in Red Seal trades up to $4,000 in interest-free loans per period of technical training. The CAL is expected to assist at least 26,000 apprentices per year with over $100 million in loans. In addition, the Government of Canada introduced the Flexibility and Innovation in Apprenticeship Technical Training (FIATT) pilot project to explore the use of innovative approaches to the technical training of apprentices. Further to the first call for proposals launched in January 2015, 37 project proposals were received. Projects are expected to roll out in 2015/16.

4.3.4 Youth Awareness

The national Youth Awareness program provides financial assistance for projects designed to address community labour market issues. Through job fairs and promotional events, this program aims to raise awareness among employers and communities of the fact that young people are the labour force of the future.

In 2014/2015, program priorities included raising awareness of skilled trades and technologies among youth. Delivered at the national and regional levels, Youth Awareness also leverages funds from many sources, including provinces and territories. In 2014/2015, Youth Awareness expenditures totalling over $2 million, supported two projects.

In 2014/2015, the Youth Awareness program received its last year of funding through the pan-Canadian envelope. Starting in 2015/16, awareness activities such as skills competitions will be funded through the Career Focus program, as part of the Youth Employment Strategy, allowing for increased program efficiencies.

4.3.5 National Essential Skills Initiative

The National Essential Skills Initiative (NESI) helps support the mandate of ESDC's Office of Literacy and Essential Skills (OLES), in supporting all Canadians to improve their essential skills (ES) to better prepare for, get and keep a job, and adapt and succeed at work. This is aligned with the Government of Canada's commitment to building a highly skilled, adaptable and inclusive labour force and efficient labour market.

Given that employment and training programs are predominantly delivered through provincial and territorial governments, non-profit organizations, unions and private firms, ESDC helps these entities integrate ES interventions into their programming, services and policies. This enhances opportunities and resources for Canadian workers and employers, supporting the development of a more skilled workforce. ESDC helps improve awareness and application of ES knowledge and information among partners, stakeholders and employers; develops tools to support ES in and for the workplace; and reduces non-financial barriers to skills development. The program supports the development of innovative approaches to strengthen the capacity of employment and training service providers to help improve the ES of adult Canadians.

Project funding is provided through NESI, which includes both the Research and Innovations and Labour Market Partnerships of EI Part II funds. Complementary initiatives are supported through Consolidated Revenue Funds (CRF) and delivered under the Terms and Conditions of the Adult Learning, Literacy and Essential Skills Program (ALLESP).

Since 2010, OLES has collaborated with over 4,000 employers and industry stakeholders, 41 post-secondary institutions, as well as with all 13 provinces and territories, in the design and delivery of projects. Beneficiaries of these projects include over 30,000 Canadians, including skills development for over 7,000 job seekers and workers.

The OLES places an emphasis on essential skills for work, including skills associated with literacy (i.e. reading, writing, document use and numeracy), thinking skills, oral communication, computer use, working with others and commitment to continuous learning. It has been demonstrated that improving these skills helps adult Canadians get a job, adapt and succeed in the labour market while responding to employers' need to find skilled workers.

A recent NESI-funded project was the UPSKILL project ^{Footnote 35} with the Social Research and Demonstration Corporation (SRDC), a non-profit social policy research organization. The UPSKILL project delivered by SRDC used a random assignment design to provide the most reliable measures of impacts of ES training on workers' skills and job performance in the Accommodations sector of the Tourism industry. The project provided a credible test of the effectiveness of workplace and essential skills training by measuring its impacts on workers and firms and estimating the return on investment for all those engaged. The project provided a cost-benefit analysis of workplace essential skills training and determined that firms are estimated to earn an average return of 23% on their investment in the first year after providing training to employees, as measured by reduced error rates, increased retention, improved productivity and customer service. Workers experienced higher success in industry performance certification, greater earnings and lower levels of periods of unemployment.

Another recently funded project was dedicated to helping instructors and trainers in the construction industry improve their instructional practice and increase their apprentices' success by integrating ES into their technical training. The Sustainable Essential Skills in Construction website, ^{Footnote 36} developed by BuildForce Canada, helps technical instructors in the skilled trades help their apprentices successfully complete their apprenticeship training, evolve with their jobs and adapt to workplace change.

Other projects funded through ALLESP provided further evidence of the benefits of investing in ES. Key findings from a survey of employers in the skilled trades, ^{Footnote 37} has also demonstrated that investing in essential skills training is a sound business decision. When both direct and indirect costs are considered, employers experience a return of $3.08 for every $1 invested on training. In another research study, ^{Footnote 38} the Canadian Apprenticeship Forum created a statistical measure of the relationship between ES and labour market outcomes with a particular focus on apprentices and vulnerable populations including Indigenous peoples, immigrants and persons with disabilities. For all groups, it was statistically demonstrated that improved ES fosters higher pay, emphasizing their importance in today's knowledge economy.

A Call for Concepts was closed on February 18, 2015, in which projects were sought that would replicate and scale up proven approaches to skills upgrading, as well as to improve the quality of employment and training supports that are responsive to both worker and employer needs. Projects would support workers to be better prepared to meet on-the-job demands by engaging employers through the development of models targeted to specific industries or occupations that are of national significance. Submitted concepts are being reviewed and it is anticipated that the projects will be funded over the next three fiscal years with funds from both NESI and ALLESP.

4.3.6 Research Project: Respecting Financial Assistance to Internationally Trained Workers

Launched in February 2012, the Foreign Credential Recognition (FCR) Loans Pilot Project provided funding to internationally trained individuals (ITIs) who experienced difficulty in accessing traditional lending sources to finance costs associated with the FCR process in Canada.

The Government of Canada allocated $18 million for the pilot over a four year period, ending on March 31, 2015. The pilot was funded through the Research and Innovation support measure of EI Part II, and took place in nine communities across nine provinces.

The FCR Loans Pilot Project delivered over 1,800 loans with an average amount of $7,200. Loan recipients were typically seeking credential recognition in high-demand occupations, including those targeted in other federal government initiatives such as the Pan-Canadian Framework ^{Footnote 39} for the Assessment and Recognition of Foreign Qualifications (e.g.: physicians, engineers, nurses, accountants, and trades).

SRDC, which was contracted to undertake the research and monitor pilot site activities, demonstrated the program's potential to alleviate the financial burden of having one's foreign credentials recognized in Canada and subsequently gaining employment in one's field. In addition, SRDC findings confirmed the demand for financial assistance among newcomers, the capacity of organizations to work together and the key role government plays in facilitating partnerships and leveraging private investment.

Specifically, the SRDC survey of 210 loan recipients indicated the following pilot outcomes:

• Increased employment: 47% increase in the full-time employment of survey participants after receiving the loan;
• Faster progress: The majority of loan recipients surveyed were able to accelerate their FCR process and 2/3 would have either taken more time to complete FCR or postponed it;
• Higher Income: Survey results indicate an upward shift in the distribution of income, with fewer loan recipients in the survey sample in the bottom income categories and more in the top within a year;
• Greater Self-Sufficiency: After one year, survey participants were less reliant on government transfers (i.e. EI); and
• High Loan Repayment: Of the loans that had entered their repayment period at the end of the Pilot, less than 1% were in default.

4.4.1 LMDA Systems Connectivity

The secure electronic exchange of program data between Canada and provinces and territories sustains the delivery of EBSM-similar programming under the LMDAs. Provinces and territories exchange data with ESDC to verify EI eligibility; understand the characteristics of EI claimants; identify applicants who can benefit from EBSM-similar programming; report on service delivery; and, refer claimants to benefit programming while on claim. ESDC uses the data received from provinces and territories to monitor, assess and evaluate their programs. The systems and applications involved in these data exchanges require ongoing maintenance and improvements to maintain high quality service delivery standards. Some of the systems also support programming to Indigenous communities through the ASETS and a Federal/Provincial data exchange called the Assignment of Benefits that helps to coordinate social assistance payments while EI claims are adjudicated.

4.4.2 LMDA IT Systems Modernization

ESDC continued to modernize many components of the systems and applications that enable secure electronic data exchange and the management of data related to LMDA programming. In 2014/2015, ESDC introduced: new functions such as Alerts for changes in EI status to improve efficiency and the ability to flag the intent to recommend training for pending EI claimants; expanded the Targeting, Referral and Feedback component to enable provinces and territories to target EI clients for early interventions; and EI data for provinces and territories to inform strategic planning.

4.6.1 Job Bank

ESDC maintains this electronic labour exchange in partnership with provinces and territories, which fosters efficient and inclusive labour markets by connecting job seekers and employers. In addition to job postings and labour market information, the site provides basic information on how to acquire the skills needed for specific careers. Job Bank also launched the Career Tool in March 2015 to help youth make informed decisions on their education and career paths.

Job Bank also provides tools such as Job Match, which was modernized in 2014/2015 to help job seekers find jobs that match their skills and experience, and provide employers with better tools to look for qualified Canadians. Additionally, job seekers can subscribe to Job Alerts to receive daily email notifications including new jobs postings corresponding to the job seeker's search criteria, local job market information and more. 1,250,000 Job Alerts are sent to 600,000 subscribers daily.

In 2014/2015, Job Bank received more than 66 million visits and provided access to about 1.3 million job postings. The top five NOC advertised on Job Bank were: 1) retail salespersons and sales clerks; 2) material handlers 3) customer service, information and related clerks; 4) truck drivers; and 5) cooks.

The website provides job market information from over 30 sources, including private sector job boards, and can generate more than 34,000 unique job market reports based on a client's occupation and location. The reports provide targeted and comprehensive information on job postings, wage rates, employment trends and outlooks, licensing and certification requirements, job skills, and relevant educational and training programs for occupations at the regional, provincial and national levels.