Appearance by the Minister before the Standing Committee on HUMA - October 16, 2023

Official title: Appearance by the Minister for Women and Gender Equality and Youth before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA)

Date: October 16, 2023

Study: Canada Summer Jobs

Opening remarks

Opening Remarks for The Honourable Marci Ien, Minister for Women and Gender Equality and Youth, for Appearance before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) on Canada Summer Jobs, House of Commons, October 16, 2023.

Good morning/afternoon Mr. Chair, and members of the committee, thank you for inviting me to join you today. First, I want to acknowledge that we are gathered on the traditional unceded territory of the Algonquin Anishnaabeg People.

Mr. Chairman, I appreciate this opportunity to talk about the Canada Summer Jobs program. It’s a key program for young Canadians across the country, serving as a gateway to the labour market.

For many it provides their first taste of paid work. And for others, it offers the opportunity to gain real world work experience in their chosen field of study. And overall, the CSJ program is a success. According to surveys from last year, over 70% of participants reported being very satisfied with their work experience.

CSJ Program investments

Clearly, this is a program well worth the investments we made. To recap:

• In Budget 2016, we doubled the CSJ base budget of $107.5 million to allow the program to create up to 70,000 jobs per year – up from 35,000 in 2015.
• And in 2020, during the worst of the pandemic, Canada’s youth were among the hardest hit, with youth employment rising to a staggering 30%. The Government responded quickly, with one of the largest youth support packages in the world, which included investing heavily in Canada Summer Jobs and making the program more flexible and more responsive.

It worked, Mr. Chairman.

Youth employment has bounced back to its pre-pandemic level.

In fact, the most recent data shows that 65,000 more youth were working in August this year than before the pandemic.

And to bring us up to date, in the 2022 Fall Economic Statement, our stated goal was to create 70,000 summer job placements in 2023.

More good news, Mr. Chairman.

We exceeded that target and through supports to employers, we were able to create more than 85,000 summer job opportunities for youth.

I should add that we boosted Canada Summer Job funding by 6% compared to pre- pandemic levels.

We have always been transparent when it comes to the details around this program. Every year, the number of jobs created, and the list of funded organizations is posted publicly and will continue to be.

CSJ program evaluation

As you know, the Canada Summer Jobs is part of the Youth Employment and Skills Strategy which offers a variety of job-related opportunities to young Canadians— including supportive services, such as mental health and dependent care supports.

The aim is to fund programs that will help all Canadian youth aged between 15 and 30 develop the skills and experience they need to successfully transition into the labour market.

Mr. Chairman, these investments are giving youth real opportunities to gain valuable work experience.

This is especially true for those facing systemic barriers to employment due to their gender, race, socioeconomic status, sexual orientation, disability, or other intersecting identities.

I’m proud to tell you that the Canada Summer Jobs program is achieving that goal and supporting young Canadians as they start on the road to building long and successful careers. The program is open to all youth, but prioritizes jobs that help youth furthest from employment and in sectors that need extra support.

But even the most successful ventures profit from thoughtful evaluation. You might recall that in Budget 2023 we announced the introduction of cross-government effectiveness reviews, to be led by the President of the Treasury Board.

The first review will focus on skills training and youth programming. It will determine what improvements we can make to these programs.

So, we’re not resting on our laurels. If there are improvements to make, we will make them.

I’m sure we all agree that it’s not only in the interests of our young people that these programs continue to have a positive impact. It’s also in Canada’s interests.

Our young people. Our future.

Mr. Chair, Colleagues – I’ll leave it there.

Again, thank you for this opportunity. I value your support and input. I now look forward to taking your questions.

Thank you.

Canada Summer Jobs – Program budget

Issue/Question

Why is the CSJ 2023 and 2024 budget lower?

Suggested response

• Youth were hardest hit during the pandemic with the highest rate of unemployment
• Good jobs open a world of possibilities for a better future – to help youth save to pay for school, to afford rent and housing
• That is why the Government responded with historic investments, significantly increasing youth job targets for CSJ 2021 and CSJ 2022 to alleviate any negative impact the Pandemic would have on youth employment
• With labour market data showing significant improvements, CSJ targets for 2023 and 2024, have been realigned with pre-pandemic levels, with a goal of creating 70,000 jobs for youth this year

Key information

Youth faced the greatest job loss during the pandemic. The overall unemployment rate for youth aged 15 to 24 peaked at 30% in May 2020. In response, the Government made historic investments to Canada’s Youth Employment and Skills Strategy to help youth, especially those facing barriers, to find and maintain good jobs.

The Canadian economy is doing well in many ways post pandemic. While the unemployment rate reached a new historical low of 5.0% in 2023 Q1 (rising to 5.2% in 2023 Q2 as labour market tightness eased), and youth unemployment rate is closer to the pre-pandemic average at 10.9% (August 2022 to July 2023), they still experience a doubling of the unemployment rate compared to the general population. A trend that has persisted for the past year.

Investment

The 2022 Fall Economic Statement announced $400.5 million over two years, starting in 2023 to 2024, for Canada Summer Jobs to support a total of approximately 70,000 annual summer job placements. This aligns with the Government’s announcement, in 2016, to double the number of summer jobs from over 34,000 in 2015 to nearly 70,000 in 2016, 2017 and 2018.

For CSJ 2023, the program budget was $278.7M compared to $454.3M for CSJ 2022. While program funding has now re-aligned closer to pre-pandemic levels, it is still higher than the 2019 budget of

$263M. For CSJ 2024, the budget is set to support another 70,000 job opportunities.

Funding allocation

The formula to allocate CSJ 2023 funding to Federal Electoral District (constituency) has remained the same since 2016. Funding is allocated to Canada’s 338 constituencies on the basis of the Labour Force Survey and the most recent census. As a result, constituencies with higher levels of unemployed youth will receive a greater allocation than constituencies with lower levels of unemployment.

The formula is composed of historical allocations as well as labour market realities, based on

unemployment data from both the local and provincial levels. It uses Statistics Canada’s Labour Force Survey data to determine the number of unemployed youth aged 15 to 29 years during the summer months (May to August), and Census data on the number of unemployed youth aged 15 to 30.

Each year, employers withdraw and/or are unable to find youth to fill the number of CSJ positions they were approved for as the projects take place during the summer months. At the beginning of the program cycle budgets, an Authorized Commitment Level (ACL) is included, which allows a specified over-commitment of funds, above the initial program budget, in order to meet the job creation targets.

CSJ 2023 budget, including an Authorized Commitment Level (ACL), was about $334.5M (verses

$545.1M for CSJ 2022 which targeted 100,000 job placements). There may have been a perceived decrease for some constituencies due to a change in how the ACL is applied. In 2021, it moved towards a fixed 20% ACL rather than a varied ACL ranging between 9% to 45%.

CSJ 2023 base program budget (without an ACL), however, increased by 6% when compared to CSJ 2019 budget which also targeted 70,000 youth placements.

Background

CSJ is part of the Government of Canada’s Youth Employment and Skills Strategy (YESS). The YESS helps young people, particularly those facing barriers to employment, gain work experience and develop the skills they need to transition successfully into the labour market.

CSJ is delivered by Employment and Social Development Canada. It provides wage subsidies to employers from not-for-profit organizations, the public-sector, and private sector organizations with 50 or fewer full-time employees, to create quality summer job opportunities for young people between the ages of 15 and 30.

The CSJ program provides youth with opportunities to develop and improve their skills, and for some, it is their first job experience. The program is also responsive to national and local labour market priorities.

Many youth continue to need support, including those from under-represented groups (for example, youth with disabilities, Indigenous youth, Black and other racialized youth groups, etc.). For example:

• In July 2023, the unemployment rate for Black youth aged 15 to 24 was 9%
• In July 2023, the unemployment rate for visible minority youth aged 15 to 24 was 7%
• In December 2022, the unemployment rate for Indigenous youth aged 15 to 24 was 2% compared to 10% for non-Indigenous youth

Below is a table comparing base level program allocations in 2019 and 2023.

The Youth Employment and Skills Strategy (YESS) Program

Issue/question

Purpose overview of the YESS Program and program complementarity with Canada Summer Jobs (CSJ).

Suggested response

• The Youth Employment and Skills Strategy, referred to as YESS, supports youth, age 15 to 30, gain work experience and the skills needed to find good quality jobs
• The Strategy includes two complementary programs: the YESS Program, delivered by 12 federal partners, and Canada Summer Jobs. Each support youth at different stages along their journey
• The YESS program supports all youth to participate in the labour market, with a focus on those furthest from opportunity and facing multiple barriers
  • It provides a range of flexible supports tailored to the unique needs of each This includes training, wrap-around supports, paid work experience, coaching and mentoring
• The Canada Summer Jobs program supports employers to create summer work experiences for youth
  • It provides first work experiences that inform their education, training and career choices
• These programs work in tandem to help youth build their skills, gain new experiences, and receive the supports they need to succeed in the labour market

Key information

The Government has a mandate commitment to continue scaling up youth and student skills and employment programming and initiatives for Canadian youth. The Youth Employment and Skills Strategy (YESS), which includes the YESS Program and Canada Summer Jobs (CSJ), plays a key role in delivering on this commitment.

Investment

In response to the pandemic, the Government made historic investments to Canada’s Youth Employment and Skills Strategy (YESS) to help youth, especially those facing barriers, to get and keep good jobs.

In 2023-24, funding has been restored to pre-pandemic levels.

The 2022 Fall Economic Statement allocated $802.1 million over 3 years starting in 2022 to 2023 for the YESS:

• $301.4 million over two years, starting in 2023 to 2024, through the YESS Program
• $400.5 million over two years, starting in 2023 to 2024, to CSJ to support a total of approximately 70,000 annual summer job placements, and
• $100.2 million over three years, starting in 2022 to 2023, to continue supporting work placements for First Nations youth through the Income Assistance-First Nations Youth Employment Strategy Pilot

Results

In fiscal year 2021 to 2022:

• The horizontal YESS Program (including all federal partners) supported over 40,000 opportunities, of

which ESDC’s program supported over 23,500 youth, with the following results:

• 9% identified as a visible minority youth, surpassing the program’s target of 36%
• 7% identified as having at least one disability, surpassing the program’s target of 20%
• 08% identified as an Indigenous youth.

• CSJ supported over 124,000 opportunities, exceeding its target of 120,000 job placements In fiscal year 2022 to 2023:
• The horizontal YESS Program (including all federal partners) supported over 26,200, opportunities, of which ESDC’s YESS Program supported over 17,200 opportunities
• CSJ supported over 115,000 jobs, exceeding its target of 100,000 job placements

In 2023 to 2024 and 2024 to 2025, the YESS Program will aim to create approximately 20,000 opportunities annually. Of that ESDC’s YESS Program will support about 5,000 opportunities per year. CSJ targets are 70,000 job opportunities annually.

YESS investments are yielding good results. The mid-cycle assessment of the YESS by ESDC’s Evaluation Directorate found that from April 2020 to December 2022, 4 out of 5 (81%) of ESDC YESS Program participants had returned to school or were in employment after participation.

Background

The Youth Employment and Skills Strategy (YESS)

The Youth Employment and Skills Strategy (YESS) is a horizontal initiative that includes 15 different programs delivered by 12 federal departments, agencies and Crown corporations. It supports youth between the ages of 15 and 30 to gain the work experience and develop the skills they need to successfully transition into the labour market.

Youth Employment and Skills Strategy (YESS Program)

The YESS Program, delivered by the 12 department, agencies and crown corporations, allows the government to address gaps across several sectors and reach a variety of youth specific to the mandate of each Department and program goals.

The ESDC YESS Program provides funding to organizations to deliver a range of activities that help youth (aged 15 to 30) overcome barriers to employment, particularly those further from opportunity (for example, those not in education, employment or training (NEET), underrepresented and disadvantaged youth).

The ESDC YESS Program recognizes that youth face multiple barriers to employment and require individualized supports to gain work experience and develop the skills needed to successfully transition into the labour market. Youth who face barriers often include:

• Indigenous youth
• Black and other racialized youth
• 2SLGBTQI+ youth
• youth with disabilities
• youth who are early leavers from high school
• youth living in low income households
• youth experiencing homelessness or precarious housing; and
• youth living in rural, remote, Northern or fly-in communities

Canada Summer Jobs (CSJ)

CSJ is delivered solely by ESDC. It provides wage subsidies to employers from not-for-profit organizations, the public sector, and private sector organizations with 50 or fewer full-time employees. The program helps create quality summer employment opportunities for young Canadians.

Program complementarity

The YESS Program and CSJ both support the overarching objectives of the YESS to provide Canadian youth with information, skills development, supports, work experience and networks to help them prepare for and successfully transition to sustained employment.

While the YESS Program supports a broad range of tailored and individualized supports to help youth transition into the labour market, the CSJ is focused on the creation of quality summer employment opportunities for youth.

YESS Program supports can include mentorship, skills development and training, wrap-around supports (e.g., dependent care support, mental health counselling) and paid work experiences.

Through the creation of employment opportunities, CSJ enables youth to develop and improve their skills, and in many cases gain first work experience. While the program is focused on job creation, it can also include mentorship and skills development components.

Canada Summer Jobs – Impact of Summer Jobs program

Issue/question

What is the Impact of Canada Summer Jobs program on youth and employers?

Suggested response

The Canada Summer Jobs program provides youth with access to summer work experiences that enable them to acquire the skills, learning experiences and opportunities they need to find and maintain employment or return to school.

In 2022, almost 33,847 employers took part in the program, creating more than 115,000 jobs for youth with $403.8 million provided in funding.

Canada Summer Jobs has a proven track record in support of employers and youth who have recognized the important role the program played in their skills development and employment experience. For example:

• 96% of employers reported they are satisfied with the program;
• 89% of youth participants said they developed a positive attitude about their future employment prospects; and,
• 97% of youth reported they developed and strengthened transferrable

A Canada Summer Jobs experience can also lead to longer employment opportunities. Almost half of youth participants in 2022 accepted an offer for continued employment after the completion of their Canada Summer Jobs term.

Key information

Employers

Of the 48,506 applications received, in 2022, 41,039 projects were approved to receive funding.

Of the total projects funded, in 2022, 59% were in the not-for-profit sector, 29% were in the private sector, and 12% were in the public sector.

• For Canada Summer Jobs 2022, 96% of employers reported being very satisfied or somewhat satisfied with the In addition, 97% of employers indicated that they would re-apply for the program in the following program cycle.

The Canada Summer Jobs 2022 mandatory employer survey shows that a high proportion of employers (80%) indicated that helping youth and/or the community is what motivated them to hire through Canada Summer Jobs, which suggests that employers feel they are providing a quality job placement to help youth gain skills, work experience and supports to transition to the labour market.

Youth

The Canada Summer Jobs 2022 participant survey is voluntary. Of the 38,178 youth who responded, the survey shows that high proportion of youth participants (89%) indicated that they have developed a positive attitude about their future employment prospects, which suggests that youth feel the program is helping them gain skills and work experience.

As part of their Canada Summer Jobs experience, a high majority (89%) of youth participants developed a positive attitude about their future employment prospects because they received job supports, such as mentoring and training, while developing and strengthening skills, they need to find and maintain employment or return to school:

• 97% of youth participants developed and/or strengthened transferable skills, such as teamwork, problem solving and decision-making skills
• 89% of youth participants developed and/or strengthened employment skills, such as communication, developing positive professional relationships, and collaboration skills
• In 2022, almost half of youth participants accepted an offer for continued employment following their Canada Summer Jobs funded work experience

Background

In line with the Youth Employment and Skills Strategy, the objectives of Canada Summer Jobs are to:

• Provide quality work experiences for all youth between the age of 15 to 30
• Provide opportunities for all youth to develop and improve their skills
• Respond to national and local priorities to improve access to the labour market for all youth who face unique barriers

In 2023, Canada Summer Jobs addressed the following five national priorities:

1. Youth with disabilities
2. Black and other racialized youth
3. Indigenous youth
4. Small businesses and not-for-profit organizations that self-report as having leadership from groups that are underrepresented in the labour market
5. Small businesses and not-for-profit organizations in environmental sectors

Canada Summer Jobs – Profile of Employees (Demographics)

Issue/question

What is the profile/demographic of youth hired through the Canada

Suggested response

Canada Summer Jobs helps employers across the country create quality summer job placements for youth, aged 15 to 30.

In fact, over 85,000 summer job placement opportunities were approved this summer.

Canada Summer Jobs prioritizes support for youth facing barriers to employment and those that are underrepresented in the labour market. In 2022, CSJ supported:

• 21% youth who self-identified as a member of visible minority
• 4% who self-identified as Indigenous youth
• 9% who identified as a youth with disabilities

Canada Summer Jobs supports youth who are early in their career journeys. More than 75% of youth served through Canada Summer Jobs are between the ages of 15 and 22.

From a gender lens, in 2022, over 60% of participants identified as women. While more work is required to better understand the full spectrum of gender identities served, 3% of participants identified as non- binary or gender diverse.

Key information

Canada Summer Jobs 2022 supported the creation of over 115,000 jobs for youth. Out of the 38,178 youth who responded to the voluntary participant survey:

• 21% of youth identified as a visible minority
• 9% of youth identified as having at least one disability
• 4% identified as Indigenous

Additionally, based on Canada Summer Jobs 2022 youth survey results:

• 13% indicated that this was their first paid job
• 59% indicated that they were in post-secondary education (college, university, specialized training, CEGEP) before the summer job placement
• 6% indicated that they were early leavers of high school, not in employment/education/training before the summer job placement
• 47% of youth were employed after participation, surpassing the target of 15%
• 79% of youth served returned to school after participation, under the program target of 85%.

Background

Canada Summer Jobs is delivered by Employment and Social Development Canada under the Youth Employment and Skills Strategy, a Government of Canada initiative that supports youth between the ages of 15 and 30 to gain the work experience and develop the skills they need to successfully transition into the labour market.

In line with the Youth Employment and Skills Strategy modernization, the objectives of Canada Summer Jobs are to:

• Provide quality work experiences for all youth between the age of 15 to 30
• Respond to national and local priorities to improve access to the labour market for all youth who face unique barriers
• Provide opportunities for all youth to develop and improve their

Funding and job placement targets

Issue/question

Why CSJ funding and job targets were lower in 2023 compared to 2022.

Suggested response

• Youth were hardest hit during the pandemic with the highest rate of unemployment
• The Government responded with historic investments to alleviate the impact
• This included additional funding that allowed the Canada Summer Jobs to support over 124,500 job opportunities in 2021 and over 115,000 in 2022
• While youth unemployment rates have improved, they are still almost twice as likely to be unemployed than the general population
• Canada Summer Jobs 2023 and 2024 targets have been restored to align with 2019 targets to support the creation of 70,000 youth job placements per year
• The CSJ 2023 budget is higher than the 2019 budget allocation, reflecting increases in minimum wages and other factors

Background

The Canadian economy is doing well in many ways post pandemic. While the unemployment rate reached a new historical low of 5.0% in 2023 Quarter 1 and youth unemployment rate is closer to the pre-pandemic average at 10.9% (August 2022 to July 2023), youth still experience a doubling of the unemployment rate compared to the general population.

Investment

The 2022 Fall Economic Statement announced $400.5 million over two years, starting in 2023 to 2024, for Canada Summer Jobs to support a total of approximately 70,000 annual summer job placements.

This aligns with the 2016 Government’s announcement to double the number of summer jobs from

34,000 in 2015 to 70,000 in the following years.

For both years 2023 and 2024, the Canada Summer Jobs funding is set to support 70,000 job opportunities per year.

The Canada Summer Jobs budget was $278.7M in 2023 compared to $454.3M in 2022, but still higher than the 2019 funding of $263M.

Canada summer jobs – MP engagement & information kits

Issue/question

Members of Parliament play a unique role in Canada Summer Jobs by setting local priorities, providing feedback, notifying employers and promoting the program.

Suggested response

In comparison to other contribution programs, Members of Parliament play a unique role in Canada Summer Jobs.

Members of Parliament have an important role to play by:

• identifying local priorities
• promoting the program to employers and youth
• providing feedback on the funding recommendations of eligible projects
• notifying successful applicants

The Department remains responsible for the oversight and delivery of the Canada Summer Jobs program, adherence to its terms and conditions and financial stewardship of public funds.

Key information

Local priorities are established for each constituency by Members of Parliament throughout the country taking into account local labour market information.

The department ensures the promotion of the program and also invite Members of Parliament to do so as well who promote the application period and results in their constituency.

Each Member of Parliament is invited to provide feedback on the list of eligible projects for their constituency, based on their knowledge of local priorities and circumstances.

Members of Parliament also have the opportunity to notify approved employers before Service Canada notifies them.

Background

Each year, prior to the launch of the call for applications, Members of Parliament are invited to provide up to five (5) Local Priorities for their constituency. It is not mandatory for Members of Parliament to establish local priorities. Applicants are not penalized during assessment if their Member of Parliament has not established Local Priorities.

Another key area of Members of Parliament role providing feedback on the list of eligible projects for their constituency during the Members of Parliament Review Phase. This is to ensure that their knowledge of local priorities and circumstances is taken into consideration; however, their participation is not mandatory.

Members of Parliament cannot recommend jobs for less than 8 weeks; this is to support the program objectives of providing quality jobs for youth, full-time jobs must be for a minimum of 8 weeks and 35 hours per week unless the employer requests jobs of a shorter duration.

Starting in Canada Summer Jobs 2023, Members of Parliament had an additional opportunity to identify 5 projects that they wanted to see funded if additional funds become available in their constituency (example: when employers are unable to hire all of the youth approved.).

Through the process, Members of Parliament have to adhere to the Conflict-of-Interest Code for Members of the House of Commons.

Service Canada makes the final funding decision.

Program monitoring / program integrity measures

Issue/question

What program integrity measures has the Government of Canada implemented to ensure that recipients of Canada Summer Jobs funding are eligible for the program?

Suggested response

The Government of Canada is committed to ensuring that the Canada Summer Jobs program supports quality summer job placements for youth that take place in safe, inclusive, and healthy work environments that are free from harassment and discrimination.

Employers who are approved for Canada Summer Jobs funding sign agreements confirming that they have understood and will comply with the rules of the program.

All approved projects are managed on an ongoing basis by Service Canada to ensure compliance with the program.

Furthermore, a number of projects are selected for monitoring each year to ensure terms and conditions are being met. Monitoring can include a review of the project’s activities, financial information and results.

Where there is a potential breach of the funding agreement, the Department works to resolve issues directly with employers by seeking clarification or requesting additional documentation.

In situations where an organization fails to demonstrate that they meet the Terms and Conditions of the approved agreement, they will not be reimbursed for the youth salaries. Funding could be revoked and any advances issued would need to be returned. The organization’s consideration for future funding may be affected.

Key information

All Canada Summer Jobs applications are screened and assessed against the following 15 eligibility requirements outlined in the program Applicant Guide:

1. Application must be submitted before the deadline
2. Attestation box must be checked
3. Application must be complete
4. Employer must be eligible
5. Project activities must be eligible
6. Job duration: Must be between 6 and 16 consecutive weeks
7. Job hours: Must be full-time (30 to 40 hours per week)
8. Other sources of funding
9. Salary
10. Money owing to the Government of Canada
11. Health and safety
12. Hiring practices and work environment
13. Supervision
14. Mentoring
15. Past results

As necessary, Service Canada sends missing information and clarification letters to applicants should there be any information missing or clarifications required with their application. At the time of submitting their application, all applicants are required to sign an attestation and, in doing so, are confirming that: they have read, understood, and will comply with the Canada Summer Jobs Articles of Agreement. More specifically all applicants are confirming they have the authorities and permission to submit an application on behalf of their organization; the information presented is true and accurate; and, that funding will not be used to undermine or restrict the exercise of rights legally protected in Canada.

Organizations that meet these conditions are assessed and considered eligible for funding.

When an organization has been approved for funding but is later found to be in default of the Articles of Agreement, the Department reserves the right to revoke the funding that was approved.

Background

Canada Summer Jobs provides funding for not-for-profit organizations, public-sector employers, and small businesses with 50 or fewer employees to create summer job opportunities for youth.

The program objectives focus on providing quality summer work experiences to youth, responding to National and Local Priorities to improve access to the labour market for youth who face unique barriers, and providing opportunities for youth to develop and improve their skills.

The Department conducts several monitoring activities, including financial monitoring to ensure that funding was used according to the Terms and Conditions outlined in the Agreement with each organization.

The Articles of Agreement details the financial records and audit requirements of the program, including the following: “In the event that financial irregularities are discovered, Canada may verify information with the Canada Revenue Agency.”

Results from previously funded projects, including termination, are considered in eligibility and funding decisions.

Funding allocation methodology

Issue/question

How the Canada Summer Jobs funding is allocated to Federal Electoral Districts.

Suggested response

• Funding for Canada Summer Jobs has been aligned with yearly job placement targets
• Before the pandemic, funding was allocated to support 70,000 job placements per year. As youth experienced the highest rate of unemployment during the pandemic, the Government made significant investments in 2021 and 2022 to alleviate the impact. Funding for 2023 and 2024 have been restored to support pre-pandemic levels
• In general, cost per participant has been estimated at an average of $4,000 per youth. This takes into consideration that jobs are approximately 8 weeks in length and provincial minimum wage rates
• The Canada Summer Jobs funding has been allocated to constituencies using a formula composed of both historical allocation and labour market information based on provincial and local unemployment data
• The use of the historical allocation minimizes significant fluctuations in constituency funding from one year to another, while responding to changing labour market needs

Background

Target

Youth targets are set by Cabinet and calculated based on an average cost per youth of about $4,000. The cost per participant is based on the average minimum wage of all provinces and territories and the average hours of work (for example, 280 hours in 2023).

While Departmental cost estimates are based on the assumption of 100% wage subsidy, depending on the organization type (in other words, for-profit organization), the employer may be only eligible for 50% coverage. For this reason, actuals expenditure may vary despite reaching target goals.

Allocation methodology

Prior to 2016, CSJ funding was allocated primarily based on historical allocation. From 2016 to 2018, a new allocation model was developed and was informed by labour market needs to better respond to the local labour market realities. To ensure some predictability, the new allocation model methodology, while evidence-based, was only applied to incremental funding investments, while maintaining the previous year funding levels.

The formula is composed of historical allocation as well as labour market realities, based on unemployment data from both provincial and local levels.

When the YESS was modernized in 2019, the move to a more fulsome evidence-based approach was approved. However, to mitigate any significant fluctuations in constituent levels during the pandemic, this work was placed on hold and the current two-phased approach was preserved.

A two-phased approach includes: (1) historic levels are based on 2019 funding; and (2) an evidence- based application to the remaining funding as follows:

• an initial calculation determines provincial and territorial funding allocation based on the Labour Force Survey data on the number of unemployed youth aged 15 to 29 years during the summer months (May to August); and the most recent Census data on the number of unemployed youth aged 15 to 30 is used to determine funding allocation for each constituency.
• This is slightly adjusted for the Territories as Labour Force Survey data is not available for these regions.

For CSJ 2023, the evidence-based approach accounts for approximately 6% ($16M) of the total funding ($271M).

Also new in CSJ 2024 will be the use of the Census 2021 data as it is now available.

The transition to more evidence methodology is anticipated to happen over several CSJ cycles, in an effort to mitigate a significant drop to any one constituency. Options on how to approach the transition are currently under development.

Canada summer jobs program parameters

Issue/Question

Who can apply for the Canada Summer Jobs program and what are the program parameters?

Suggested response

The Canada Summer Jobs program offers wage subsidies to employers from not-for-profit organizations, the public sector, and private sector organizations with 50 or fewer full-time employees to create summer job placements for youth aged 15 to 30.

Not-for-profit employers can receive funding for up to 100% of the provincial or territorial adult minimum hourly wage. Other employers are eligible to receive 50% of the provincial or territorial minimum hourly wage.

As the objective of the Canada Summer Jobs program is to support youth entering the Canadian labour market, youth participants must be Canadian citizens, permanent residents, or persons to whom refugee protection has been conferred under the Immigration and Refugee Protection Act.

Key information

Eligible projects must provide full-time work experience in Canada (30 to 40 hours a week) for a minimum of six weeks and a maximum of 16 weeks, during the summer, starting as early as April and ending by September at the latest.

To maintain a quality work placement, the Department recommends a job duration of at least 8 weeks and 35 hours per week, and a maximum job duration of 16 weeks for projects in rural communities and in the North.

Exceptions to the full-time employment continue to be made for employer requests to hire youth with disabilities that cannot work full-time. Employers may also be eligible for additional funding for overhead costs to accommodate youth with disabilities within the work environment.

Eligible projects must provide a work experience in an inclusive non-discriminatory work environment that respects the rights of all Canadians.

All applications are screened for eligibility against the 15 mandatory eligibility requirements that include components related to mentoring, supervision, and ensuring a safe and inclusive work environment that is free from harassment:

1. Application must be submitted before the deadline
2. Attestation box must be checked
3. Application must be complete
4. Employer must be eligible
5. Project activities must be eligible
6. Job duration must be between 6 and 16 consecutive weeks
7. Job hours must be full-time (30- to 40 hours per week)
8. Organization must declare whether they have applied, will apply, or have received other sources of funding for the job(s) requested
9. Salary must respect minimum wage requirements of the province/territory
10. Organization must declare any money owing to the Government of Canada
11. Organization must demonstrate they have implemented adequate measures to ensure youth awareness of health and safety practices in the work environment
12. Organizations must demonstrate they have implemented adequate measures to ensure that hiring practices and the work environment are free of harassment and discrimination
13. Supervision plan must be outlined
14. Mentoring plan must be outlined
15. Past results: The Department will review all files associated with the organization to verify if there is documented evidence from previous agreements with the Department that would render an application ineligible (including but not limited to financial irregularities, health and safety concerns, past project default or other results)

In an effort to provide Canadian youth with the highest quality summer placements, the Department assesses all eligible applications received and recommends the projects that score the highest against the assessment criteria which includes the following factors: salary above minimum wage, employee retention plan, quality of the supervision and mentoring plans, the opportunity to develop skills and how the project supports National and Local Priorities.

Ineligible employers include Members of the House of Commons and the Senate or members of their immediate family; Federal Government Departments and Agencies; Provincial Departments and Agencies; and, Organizations that engage in partisan political activities.

Investment

The Fall Economic Statement 2022 provided funding in 2023-2024 and 2024-2025 to support the program’s target of creating 70,000 jobs per year – realigning investments to pre-pandemic job levels.

The 2023-2024 Canada Summer Jobs allocation is $278.72 million, which is a 6% increase compared to pre-pandemic budget. This consists of the $171.1 million from the 2022 Fall Economic Statement funding and the $107.6 million from A-base funding.

The program has an Authorized Commitment Level (ACL) allowing for an overcommitment of funds, above the program’s base budget, to account for employer withdrawals and other slippage factors that occur every program cycle.

Results

For Canada Summer Jobs 2022, 33,847 employers took part in the program, creating more than 115,000 jobs.

Of the total projects funded, 59% were in the not-for-profit sector, 29% were in the private sector, and 12% were in the public sector.

For Canada Summer Jobs 2023, 46,107 applications were received for a total of 234,121 jobs requested, representing over 300% of the job target. This summer, more than 85,000 summer job placements were made available for young people. The confirmed number of jobs actually created will be know in the winter after all final claims have been processed and is expected to meet the target of 70,000.

Background

Canada Summer Jobs is delivered under the Youth Employment and Skills Strategy, a Government of Canada initiative that supports youth between the ages of 15 and 30 to gain the work experience and develop the skills they need to successfully transition into the labour market.

In line with the Youth Employment and Skills Strategy, the objectives of the Canada Summer Jobs program are to:

• Provide quality work experiences for all youth between the age of 15 to 30
• Respond to national and local priorities to improve access to the labour market for all youth who face unique barriers
• Provide opportunities for all youth to develop and improve their skills
• In 2020 and 2021, the Government’s responded to the COVID-19 crisis by integrating temporary flexibilities into Canada Summer Jobs to better support employers and youth during the pandemic. These flexibilities included:
• an increase covering up to 100% of the minimum wage costs for youth jobs for 2020, and 75% for 2021
• supporting part-time employment
• extending the end date for jobs to February instead of only during the summer period
• Allowing Members of Parliament the opportunity to identify employers who were providing critical services but who may have not applied for Canada Summer Jobs during the earlier Call for Applications

In 2022, the program returned to its usual parameters.

OAG audit overview

Issue/question

The OAG performs an audit of the Canada Summer Jobs (not yet announced).

Suggested response

•  I understand that the Office of the Auditor General’s website has listed Canada Summer Jobs under anticipated publications of performance audits, in 2024
• Department officials are working closely with the Office of the Auditor General to support them in their work
• The report will inform Government efforts to build on what’s working and improve services to Canadians, as needed

Background

Initially, the Office of the Auditor General (OAG) was exploring an expanded focus with this audit on the broader Youth Employment and Skills Strategy. Potentially including federal efforts to help youth – particularly those facing barriers – acquire the skills, learning experiences and opportunities needed to find and maintain employment or return to school.

In August 2023, the OAG modified the focus to the Canada Summer Jobs program. This decision was informed by OAG engagement of the Treasury Board Secretariat. In particular, agreement that the audit would complement the Budget 2023 announcement of cross-governmental effectiveness review on skills training and youth programming.

The objective of the audit is to determine whether ESDC provided wage subsidies to qualified employers that resulted in youth gaining work experience, particularly those facing barriers.

The OAG anticipates sharing the draft report with the Department for review in late Fall 2023 with a tabling to Parliament in March 2024.

2023 Horizontal review of youth and skills programming

Issue/question

What is the 2023 Horizontal Skills Review, and will youth programming be affected?

Suggested response

• The Horizontal Skills Review is being led by Treasury Board Secretariat with the involvement of multiple departments across the government, including Women and Gender Equality Canada
• Announced as part of Budget 2023, the objective of the review is to determine whether improvements can be made to the existing suite of federal skills and youth programming
• My department is working with Treasury Board Secretariat to support the review and determine whether improvements can be made to help more Canadians develop the skills and receive the work experience they need to have successful careers

Investment

All ESDC youth programs under the purview of Minister Ien are scoped in for this review, including the Youth Employment and Skills Strategy Program (including those YESS programs delivered by all federal partners), Canada Summer Jobs, the Student Work Placement Program, and the Canada Service Corps.

Results

The 2023 review will provide a comprehensive understanding of the suite of Skills and Youth programs, in terms of their activities, clients, resourcing and outcomes. Through this review process, the Government aims to identify options for realigning resources to achieve greater impact.

Treasury Board Secretariat will use the results of the review to inform recommendations it will make to the Department of Finance in preparation for Budget 2024 regarding potential programming gaps, as well as spending prioritizations and reallocations.

Project examples

Not applicable.

Background

The President of Treasury Board’s mandate letter (December 2021) directs that the President “Initiate a comprehensive and continuous strategic policy review of government programs to examine how major programs and policies contribute to meeting the biggest challenges of our time, including achieving net- zero emissions by 2050, improving fairness and equality and promoting quality of life and growth for everyone.”

Budget 2023 officially launched the review process, announcing “the introduction of cross-government program effectiveness reviews, to be led by the President of the Treasury Board. The first review examines skills training and youth programming, to determine, by Budget 2024, whether improvements can be made to help more Canadians develop the skills and receive the work experience they need to have successful careers.”

The current review follows the 2018-2019 Horizontal Review of Skills Programming (HRSP). That review was grounded in concerns about changing skills needs due to emerging technologies – artificial intelligence, advanced robotics, and others. The 2023 review is similar, but broader: preparing Canadians with skills for success in the labour market.

In addition to providing information to TBS as part of the 2023 review, implicated departments are also preparing updates, where relevant, on progress made on the 25 recommendations stemming from the 2018-2019 HRSP.

Scenario note

HUMA’s mandate gives it the broad authority to study employment, labour, income security, skills development and disability issues, as well as the policies, programs, expenditures (budgetary estimates), and legislation of departments and agencies that impact these issues, including those programs administered by Employment and Social Development Canada.

In the 44th Parliament, the committee studied:

• The financialization of housing;
• The National Housing Strategy and the Housing Accelerator Fund;
• Accessible transportation for persons with disabilities;
• Labour shortages, working conditions and the care economy;
• Early learning and child care in Canada,
• Service Standards for Passport renewal;
• The Supporting Black Canadian Communities Initiative;
• The impact of COVID-19 on seniors
• Disability support benefits;
• Employment insurance in Canada;
• The Canada Labour Code.

HUMA has invited you to appear in relation to its study on the Canada Summer Jobs wage subsidy program as per its June 13 motion:

That, pursuant to Standing Order 108(2), the committee undertake a study on the Canada Summer jobs wage subsidy program, to determine how it can be modified to improve funding and flexibility; that the Committee invite the Minister for Women and Gender Equality and Youth, department officials and experts, as well as organizations benefiting from the program to testify; that the committee hold a minimum of four (4) meetings; that the committee report its findings to the House; and that, pursuant to Standing Order 109, the committee request that the government table a comprehensive response to the report. It is likely that the Committee wishes to complete its study before the next application period ramps up in preparation for next year’s program and a minimum of four meetings has been dedicated to it. For context, although HUMA has not recently undertaken a specific study on the Canada Summer Jobs program, on February 27, 2020, Louise Chabot (BQ, Thérèse-De Blainville) moved the following motion:

That pursuant to Standing Order 108(2), the committee study the Canada Summer Jobs Program to measure the program outcomes; that the committee reports its finding, including its recommendations, to the House and the government respond to the committee’s recommendations.

The motion was adopted but never followed up on due to the prioritization of different studies during the pandemic.Ms. Chabot put Q-1463 on notice on April 27^th, 2023, which requested a breakdown of program funding for the fiscal year 2023-24 across all federal Canadian 338 ridings. This required the breakdown by dollar amount, positions created and hours and the disparity between funds requested versus those allocated and specified that the methodology and formulas used to determine the funding granted to each riding be disclosed. Finally, it specified that the percentage of the overall funding and the allocation to ridings in Quebec since 2006-07 be broken down by percentage and dollar terms by fiscal year. Ms. Chabot had put a similar question, Q-421, on notice in 2021, which requested a breakdown of program funding for the fiscal year 2019-2020. That question also specified a funding breakdown by fiscal year since 2015-2016. She has also expressed concerns regarding the indexing of funds for the program to the minimum wage to ensure sufficient funds are allocated and has raised concerns that smaller organizations do not have the same resources as their larger counterparts when it comes to proceeding through the application process.

Another member of HUMA, Scott Aitchison (Parry Sound—Muskoka, PC), passed written question Q-296 on March 21, 2022, requesting a breakdown by federal riding of which employers enrolled in the Summer Jobs program were randomly selected for inspections or audits and the number of interviews conducted by government officials with their employees. Further, in the past, there have been concerns raised at Committee and in the House of Commons as to the level of funding allocated to the program and the access to these funds by non-profit groups, including religious organizations.

For this appearance, you will have up to 5 minutes for opening remarks and will be accompanied by the following officials: Frances McCrae, Deputy Minister, Women and Gender Equality and YouthCatherine Demers, Associate ADM, Skills and Employment Branch. Jennifer Tremblay, Director General, Program Operations Branch (replacing Nisa Tummon, POB ADM). Damon Rourke, Director, Youth Programs, POB, Rhonda Fernandes, Director General, Youth and Skills Innovation.

This is followed by a question-and-answer period. Questions will proceed in the following order:
Round 1 – 6 minutes for the first questioner of each party as follows: CPC, LPC, BQ, NDP
Round 2 – 5 minutes each, CPC, LPC, then 2.5 minutes each, BQ, NDP, and subsequently another 5 minutes each CPC, LPC

The committee has elected Robert Morrissey (LPC) as Chair, and Tracy Gray (CPC) and Louise Chabot (BQ) as Vice-Chairs. The committee agreed to undertake the following studies in the future:

The promotion and encouragement of intergenerational volunteerism between seniors and youth (June 13 motion, study agreed to on November 21, 2022)

That, pursuant to Standing Order 108(2), the committee undertake a study regarding the different ways that the government can promote and encourage intergenerational volunteerism between seniors and youth; that the committee hold a minimum of three meetings on this issue; that the committee report its findings and recommendations to the House; and that, pursuant to Standing Order 109, the committee request that the government table a comprehensive response to the report. A minimum of three meetings have been dedicated to the study of this program.

The implications of artificial intelligence technologies for the Canadian labor force (June 13 motion, study agreed to on June 2, 2023)

That, pursuant to Standing Order 108(2), the committee undertake a study regarding the implications of artificial intelligence technologies for the Canadian labor force; that the study will examine the impact these technologies may have upon, including but not limited to: regions, age groups, organized labor, workforce sectors, gender, person with disabilities, income levels, and race within Canada. That the committee hold a minimum of five meetings on this study; and that the committee invite to testify representatives, including but not limited to: representatives from Statistics Canada, the Minister of Innovation, Science and Technology, the Minister of Labour and related department officials. That the committee report its findings and recommendations to the House; and that pursuant to Standing Order 109, the committee request that the government table a comprehensive response to the report. A minimum of five meetings have been dedicated to the study of this program.

Reforming existing tax credits and benefits to improve awareness accessibility and ease of access (June 13 motion, study agreed to on June 2, 2023)

That, pursuant to Standing Order 108(2), the committee undertake a study on existing tax credits and benefits to determine how they can be reformed to improve awareness, accessibility, and ease of access including, but not limited to, the Disability Tax Credit, the Canada Caregiver Credit, and the Employment Insurance Caregiver Leave; that the Committee invite the Minister of Employment, Workforce Development and Disability Inclusion, department officials and experts to testify; that the committee hold a minimum of 2 meetings; that the committee report its findings to the House; and that, pursuant to Standing Order 109, the committee request that the government table a comprehensive response to the report. A minimum of two meetings have been dedicated to the study of this program.

Review the government’s work to improve accessibility for travelers with disabilities and the Auditor General of Canada's report on this matter (June 13 motion, study agreed to on June 2, 2023)

That the committee undertake a study of no less than two (2) meetings to review the government’s work to improve accessibility for travelers with disabilities and the Auditor General of Canada's report on this matter; that, the Auditor General of Canada, the Minister of Transport, the Minister of Employment, Workforce Development and Disability Inclusion, VIA Rail Canada, the Canadian Air Transport Security Authority, the Canadian Transportation Agency, and Air Canada be invited to appear before committee on this matter; and that the committee report its findings and recommendations to the House. A minimum of two meetings have been dedicated to the study of this program. House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA)

HUMA Membership

• Chad Collins (LPC)
• Michael Coteau (LPC)
• Wayne Long (LPC)
• Peter Fragiskatos (LPC)
• Robert (Bobby) J. Morrissey (LPC)
• Tony Van Bynen (LPC)
• Rosemarie Falk (CPC) Michelle Ferreri
• (CPC) Tracy Gray (CPC)
• Scott Aitchison (CPC)
• Bonita Zarrillo (NDP)
• Louise Chabot (BQ)

Liberal party of Canada

• Chad Collins, Ontario
• Michael Coteau, Ontario
• Wayne Long, New Brunswick
• Peter Fragiskatos, Ontario
• Robert (Bobby) J. Morrissey, Chair, Prince Edward Island
• Tony Van Bynen, Ontario

Conservative party of Canada

• Rosemarie Falk, Saskatchewan Associate Labour Critic
• Michelle Ferreri, Ontario Families, Children and Social Development Critic
• Tracy Gray, Vice-Chair, British Columbia Employment, Future Workforce Development and Disability
• Inclusion Critic
• Scott Aitchison, Ontario Housing and Diversity and Inclusion Critic

New democratic party of Canada

• Bonita Zarrillo, British Columbia, Disability Inclusion Critic

Bloc Québécois

• Louise Chabot, Vice-Chair, Québec, Employment, Workforce Development and Labour Critic

Committee member biographies