Canada's labour market agreements: Sharing key results with Canadians (2022–23)

Full title: Canada's labour market agreements: Sharing key results with Canadians (2022-23) Supporting Canadians through federal, provincial, and territorial partnerships

On this page

• A partnership for Canadians
• Benefits for Canadians
• Spotlight: Underrepresented groups in the labour market
• Supporting individuals
• Supporting employers
• Supporting key occupations
• Spotlight: Canadians with disabilities
• Preparing for the labour market of tomorrow

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Abbreviations

LMDA

Labour Market Agreement

WDA

Workforce Development Agreement

EI

Employment Insurance

OFE

Opportunities for Employment

SIIT

Saskatchewan Indian Institute of Technologies

SENS

Summer Employment for Nunavut Students

HEY

Hamlets Employing Youth

TAP

Training Assistance Program

A partnership for Canadians

In Canada, training is a shared responsibility between the federal government and the provinces and territories. Provincial and territorial delivery networks are an important part of the training landscape in Canada because they have direct relationships with thousands of educational institutions across the country.

The partnership between Canada and the provinces and territories to support skills and employment training has existed for decades. It was formalized in the mid-1990s with the creation of the Labour Market Development Agreements (LMDAs). Funding for the LMDAs comes from Employment Insurance (EI) contributions of workers and employers. The goal of the LMDAs is to provide training and employment supports to current or past EI recipients, and to individuals with minimum EI contributions for 5 out of the last 10 years, to help them find another job.

Workforce Development Agreements (WDAs) were created in 2017, and they work alongside the LMDAs. The WDAs combine and replace other initiatives in place since the 1990s. Funding for the WDAs comes from general government revenue. The LMDAs and the WDAs are agreements between Canada and the provinces and territories. However, the WDAs provide support to individuals who are further from the labour market and who do not qualify for EI.

Budget 2017 provided an additional investment of $625 million in the LMDAs and WDAs in 2022-23.

Each year, the federal government provides $2.9 billion to provinces and territories through the LMDAs and WDAs. Together, these agreements have helped millions of Canadians build their skills and find and keep jobs. These investments have made a real difference in people's lives by helping them get back to work and earn more money, reducing their reliance on EI and social assistance.

This annual report highlights key results, including combined national results, for both the LMDAs and the WDAs for 2022-23. It draws on data from annual reporting in the EI Monitoring and Assessment Report and the Departmental Results Report (PDF, 1.2 MB). The report also highlights stories from each province and territory^{Footnote 1}.

Benefits for Canadians

There are benefits for participants and the federal, provincial, and territorial governments. For example, a 2022 evaluation showed that for each $1 invested in Skills Development through the LMDAs, $1.54 in social benefits was generated. It also showed that for each person who received LMDA Skills Development supports, the social benefits exceeded the costs by $5,508^{Footnote 2}.

Government LMDA investments are partially recovered through decreases in paid social benefits (such as EI) and public health care costs and increases in tax revenues.

Provinces and territories provide services that meet the unique needs of their jurisdiction and their population. Each year, they identify key priorities and report on their results.

1.2 million participants accessed services in 2022-23^{Footnote 3}

Graphic 1 - Text description of 2022-23 Provincial and territorial funding and participants

Newfoundland and Labrador: Funding: $156 Million; Participants: 21,000

Prince Edward Island: Funding: $32 Million; Participants: 13,000

Nova Scotia: Funding: $122 Million; Participants: 27,000

New Brunswick: Funding: $127 Million; Participants: 33,000

Quebec: Funding: $910 Million; Participants: 230,000

Ontario: Funding: $1.1 Billion; Participants: 403,000

Manitoba: Funding: $96 Million; Participants: 115,000

Saskatchewan: Funding: $83 Million; Participants: 40,000

Alberta: Funding: $325 Million; Participants: 117,000

British Columbia: Funding: $470 Million; Participants: 189,000

Yukon: Funding: $7 Million; Participants: 800

Northwest Territories: Funding: $7 Million; Participants: 1,000

Nunavut: Funding: $7 Million; Participants: 5,000

Spotlight: Underrepresented groups in the labour market

Provinces and territories offer programs that respond to the unique needs of the local labour market and demographics.

In 2022-23, labour market agreement funding supported 1.2 million participants. This included approximately:

• 561,000 women
• 380,000 persons with disabilities
• 263,000 youth
• 176,000 visible minorities
• 151,000 older workers
• 136,000 recent immigrants
• 107,000 Indigenous people^{Footnote 5}

Services through the labour market agreements improve people's skills and access to jobs. They also help them increase their annual income, especially for people from under-represented groups. Participants in WDA interventions saw the following average annual increases in income:

• $11,000 for recent immigrants
• $7,100 for visible minorities
• $4,100 for youth
• $4,700 for women
• $2,700 for persons with disabilities
• $1,900 for Indigenous people^{Footnote 6}

561,000 women received supports, contributing to labour market growth in female-dominated professions such as health and education^{Footnote 7}.

Supporting individuals

The LMDAs and WDAs work together to support Canadians, whether they are new to the Canadian job market or looking for another job. Under the agreements, there are different skills training and employment activities available to help individuals.

Services and supports available to individuals under the agreements include:

• employment assistance services, such as career counselling, résumé writing, interview skills or job search assistance through provincial and territorial employment centres
• skills development, such as in-class training for basic to advanced skills development to help workers with specific skills for jobs (including in the skilled trades), computer skills and literacy and essential skills
• supports for entrepreneurs, such as business start-up support and planning advice

Approximately 107,000 Indigenous clients were served in 2022-23, representing almost one in 10 clients overall.

Provincial and territorial employment centres across Canada are a first point of contact for individuals looking for skills and employment training. These centres provide employment assistance services and referrals to training.

Employment counsellors and clients work together to identify short-term goals and next steps. These may include additional training or employment supports best suited for the individual. After meeting an employment counsellor, clients may enter a training program or receive other employment supports such as work experience.

Together, these services help people participate in a changing labour market, and provide supports to unemployed people.

Supporting employers

The economy is changing quickly, and job markets are evolving. Canadian employers continue to face challenges in recruiting and retaining skilled workers^{Footnote 8}. The labour market agreements also support employers, helping them train, upskill and retain a more skilled and engaged workforce.

Local labour markets also benefit from programs tailored to their needs. Provinces and territories are required to consult stakeholders in their area to inform their programming. Stakeholders may include:

• unions and labour representatives
• industry and business associations
• post-secondary institutions
• under-represented groups
• organizations representing official language minority communities
• Indigenous governments

Services and supports available to employers under the agreements include:

• Targeted Wage Subsidies, which provide employers with workers and provide workers with on-the-job experience
• Job Creation Partnerships, which help individuals gain new skills and work experience and benefit local communities
• Labour Market Partnerships, which provide funding for local communities, sector groups and employers to respond to local economic conditions and human resource planning
• Research and Innovation supports, which identify new or improved ways to help Canadians in the labour market

Programs funded by these agreements are key to filling the skills gaps facing Canadian employers, and training funded by these agreements is aligned with where skills shortages are most acute. In fact, half of small and medium employers surveyed by the Canadian Federation of Independent Business noted that "shortages of skilled labour were limiting the ability to increase sales or production," posing serious risks to Canada's economic growth and resilience^{Footnote 9}. Through the LMDAs and WDAs, employers can access a talent pool of more available individuals, including persons with disabilities.

Supporting key occupations

The labour market agreements support key occupations across the country and are crucial in addressing growing skills gaps in the labour market. Top occupations supported include:

• tourism and hospitality, to ensure businesses across Canada have the chefs, waiters, hotel attendants and cleaners they need
• building and contracting, to ensure construction businesses have the tradespersons they need
• stores and dealerships, to ensure businesses, big or small, have the cashiers and salespersons they need
• food, clothing, and material manufacturing, to ensure manufacturing businesses have workers for every stage of the process, including for food, textiles and metals or chemical manufacturing
• banks, investments, and insurance, to ensure Canadian businesses have the accountants, auditors, and HR staff they need
• health care and social assistance, to ensure communities have the medical and dental assistants, nurses, home care providers and emergency services personnel they need to provide care^{Footnote 10}

151,000 services were provided to workers from the trades through the labour market agreements^{Footnote 11}.

Spotlight: Canadians with disabilities

Persons with disabilities in Canada continue to experience long-standing barriers to finding and keeping jobs, contributing to higher rates of poverty and social exclusion for this population. Despite the challenges, significant progress has been made. The 2022 Canadian Survey on Disability shows that the employment rate for persons with disabilities aged 25 to 64 years was up 3 percentage points from 2017. This reduced the gap between the employment rates of persons with disabilities and persons without disabilities by 5 percentage points^{Footnote 12}.

Evaluations of the WDAs have shown encouraging results among clients, including clients with disabilities, such as:

• increased employment rates
• improved earnings
• high program satisfaction

Approximately 380,000 persons with disabilities receive supports annually from the labour market agreements, ranging from skills training and wage subsidies to career counselling and job search assistance^{Footnote 13}. WDA-funded programs and services also aim to improve employment accessibility for people with disabilities through supports for employers. This is achieved through employer education, support with training and human resources issues, and accessibility and accommodation supports, among other strategies.

WDAs are Canada's largest investment in labour market supports for persons with disabilities. They provide approximately $220 million per year to provinces and territories. The provinces and territories match the federal government's investment. Including the additional funding provided in Budget 2017, this resulted in a combined investment of nearly $550 million in 2022-23 in programming for persons with disabilities across the country.

The WDAs play a key role in supporting persons with disabilities. 57 %of all WDA participants in 2022-23 self-identified as a person with a disability^{Footnote 14}.

Preparing for the labour market of tomorrow

Economies around the world are experiencing demographic, social and global health issues. This is leading to labour shortages. Having a skilled and adaptable workforce will be key to ensuring that Canada remains competitive in a global economy.

Shifting demographics, technology, automation, and climate change will continue to affect the Canadian economy, and workers will need to be resilient and ready to adapt to these changes.

Provinces and territories address their unique local labour markets. Together, they also address federal priorities such as:

• increasing the supply of affordable housing
• improving the availability and accessibility of public health care services
• transitioning toward a green economy and net-zero emissions by 2050

Through this partnership, the federal government and the provinces and territories will continue to provide targeted and inclusive employment services to Canadians. This will help strengthen local communities and Canada as a whole, now and in the future.

This report was prepared in collaboration with the Social Research and Demonstration Corporation.