HUMA committee briefing binder: Appearance of Minister of Employment, Workforce Development and Official Languages - December 11, 2023

Overview

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) has invited you to appear in view of its study of the Supplementary Estimates (B), 2023 to 2024.

Committee Proceedings

Your appearance is scheduled to take place on December 11, 2023 from 11:00 a.m. to 12:00 p.m.

You will appear on a panel with Minister Khera, and will be accompanied by:

• Paul Thompson, Deputy Minister of Employment and Social Development (in-person)
• Karen Robertson, Chief Financial Officer (in-person)
• Tina Namiesniowski, Senior Associate Deputy Minister of Employment and Social Development (in-person)

You have no outstanding follow up written responses due to the Committee.

You can expect questions to be raised on E.I. modernization, Stellantis and the use of Temporary Foreign Workers and EI Board of Appeal.

There is a possibility that additional MPs will be present outside of those who are committee members. Of interest to your portfolios would be Chris Lewis (Essex, CPC) and Andréanne Larouche (Shefford, BQ)

HUMA has agreed that questioning of witnesses would be allocated as follows:

In round 1, there are 6 minutes for each party in the following order:

• Conservative Party
• Liberal Party
• Bloc Québécois, and
• New Democratic Party

For the second and subsequent rounds, the order and time for questioning is as follows:

• Conservative Party, 5 minutes
• Liberal Party, 5 minutes
• Bloc Québécois, 2 and a half minutes
• New Democratic Party, 2 and a half minutes
• Conservative Party, 5 minutes, and
• Liberal Party, 5 minutes

Chad Collins, Liberal Party, Hamilton East, Stoney Creek Ontario

Brief Biography

Chad Collins was first elected to the House of Commons for Hamilton East - Stoney Creek on September 20, 2021. A lifelong resident of Hamilton East - Stoney Creek, Chad resides in the Davis Creek area with his wife Mary and 2 children, Chase and Reese. He attended Glendale Secondary School, the University of Western Ontario, and McMaster University. Chad was first elected to City Council in 1995, at the age of 24, making him one of the youngest elected representatives in the City's history.

Chad is passionate about engaging local residents and community stakeholders, focusing on revitalization of infrastructure, development of social housing and stream-lining municipal programs.

As President of City Housing Hamilton, Chad has been committed to addressing the City's aging affordable housing stock by pressuring all levels of government to invest in the much needed repair of over 7,000 publicly owned units. He continues to work on nearly a dozen new projects across the City and in the riding that will provide new affordable housing units to those in need.

From the creation and development of new community parks and trails to the opening of a new food bank, Chad knows community consultation is an integral part of improving quality of life for everyone in Hamilton East - Stoney Creek.

Of note:

Key issue of interest: Affordable housing

Michael Coteau, Liberal Party, Don Valley East, Ontario

Brief Biography

Michael Coteau was first elected to the House of Commons for Don Valley East on September 20, 2021. He has served as the Member of Provincial Parliament for Don Valley East since 2011. During his time in the Ontario government, his ministerial roles include:

• Minister of Children and Youth Services
• Minister Responsible for Anti-Racism
• Minister of Tourism, Culture and Sport
• Minister Responsible for the 2015 Pan/Parapan American Games, and
• Minister of Citizenship and Immigration

Prior to entering the provincial government, Michael was elected as a school board trustee for the Toronto District School Board (TDSB) in 2003, 2006 and 2010. As a trustee, Michael advocated for student nutrition, community use of space and the use of educational technology. He initiated the 'Community Use of Schools' motion that drastically cut user fees and made schools more accessible to groups that offer programs for children. He helped introduce nutritional changes in schools that supported healthy food programs and increased awareness of student hunger.

Michael worked as an ESL instructor and curriculum developer before becoming a community organizer for a United Way agency in Scarborough. He was also the Marketing Manager for ABC Life Literacy, where he was responsible for the organizing of the Family Literacy Day across Canada, and was Executive Director of Alpha Plus, a national literacy organization mandated to support adult education through the use of technology.

Michael grew up in Don Valley East and attended Don Mills Middle School and Victoria Park Collegiate Institute. He holds a degree from Carleton University in Political Science and Canadian History. He and his wife Lori live in Toronto with their 2 daughters, Maren and Myla.

Of note:

• spent 10 years in the Ontario legislature
• key issues of interest: low-income families

Wayne Long, Liberal Party, Saint-John - Rothesay, New-Brunswick

Brief Biography

Wayne Long was first elected to the House of Commons for Saint John — Rothesay in 2015 and was re-elected in 2019 and 2021. He is a member of the Saint John community with national and international business experience. Wayne currently serves as President of the Saint John Sea Dogs, and his efforts have helped turn the team into one of Canada's most successful CHL hockey franchises winning the cherished Memorial Cup in 2011. That same year, Wayne was recognized with the John Horman Trophy, awarded to the Top Executive in the QMJHL.

Prior to his work with the Sea Dogs, Wayne was President of Scotiaview Seafood Inc. He was also a successful large-scale product manager with Stolt Sea Farm Inc. Wayne's work has seen him travel across North America, negotiating contracts with national restaurant distributors, restaurant chains, and retail chains. He earned the North American Excellence in Sales and Marketing award twice. Wayne is a former Board Member for Destination Marketing and Salmon Marketing.

Wayne was born in the riding, and currently calls the area home alongside his wife, Denise, and their 2 children, Khristian and Konnor.

Of note:

Has been a member of HUMA since the beginning of the 42nd Parliament (2015).

Key issues of interest:

• poverty
• mental health
• outspoken support of the Energy East oil pipeline project
• previously broken ranks with party (Energy East, tax policy, SNC-Lavalin) which resulted in being kicked off House committees as punishment
• frequently makes sports parallel (hockey)
• government programs and support that benefit his constituents

Peter Fragiskatosm, Liberal Party, PS to the Minister of Housing, Infrastructure and Communities, London North Centre, Ontario

Brief Biography

Peter Fragiskatos was first elected as the Member of Parliament for London North Centre in 2015.

Mr. Fragiskatos previously served as Parliamentary Secretary to the Minister of National Revenue. Additionally, he has served as a member of the National Security and Intelligence Committee of Parliamentarians, the Standing Committee on Finance, and the Special Committee on Canada-China Relations. He was also a member of various other committees, parliamentary associations, and interparliamentary groups.

Prior to entering federal politics, Mr. Fragiskatos was a political scientist at King's University College at Western University and a media commentator. His works have been published by major Canadian and international news organizations, including:

• Maclean's
• The Globe and Mail
• The Toronto Star
• BBC News, and
• CNN

Born in London, Ontario, Mr. Fragiskatos has combined his passion for politics with a desire to give back to his community. He has served on the boards of Anago (Non) Residential Resources Inc. and the Heritage London Foundation. An active volunteer, he ran a youth mentorship program and has worked with many local not-for-profit groups, such as:

• the London Food Bank
• the London Cross-Cultural Learner Centre, and
• Literacy London, a charity dedicated to helping adults improve their literacy skills

Mr. Fragiskatos holds a political science degree from Western University, a Master's degree in International Relations from Queen's University, and a PhD in International Relations from Cambridge University.

He lives in London with his wife, Katy, and their daughter, Ava.

Of note:

Parliamentary Secretary - PS to the Minister of Housing, Infrastructure and Communities

Key issues of interest:

• Non Parliamentary Committee Member: National Security and Intelligence Committee of Parliamentarians (2021)
• Canada-China relations

Robert (Bobby) J. Morrissey, Liberal Party, Egmont, Prince Edward Island

Brief Biography

In 2015, Bobby was elected to the House of Commons and was re-elected in 2019 and 2021. He served as a Member on the Standing Committee on Fisheries and Oceans, as well as the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities.

Previously, he was elected to the Prince Edward Island Legislative Assembly in 1982 and has dedicated his career and volunteer life to serving the residents of PEI.

Having served as MLA for nearly 20 years, Bobby has a deep understanding of his communities' needs. He has held a number of high-profile roles within the Assembly, such as:

• Minister of Transportation and Public Works
• Minister of Economic Development and Tourism, and
• Opposition House Leader

He was also responsible for the redevelopment of the Canadian Forces Base Summerside and the surrounding community following its closure by the federal government in 1989. Bobby left politics in 2000 to join the private sector as a consultant specializing in government relations, fisheries, and the labour market. Bobby has been a member of the Board of Directors for the Heart & Stroke Foundation of PEI. He was the founding member and former president of the Tignish Seniors Home Care Co-op, and Vice-Chair of Tignish Special Needs Housing.

Of note:

• Chair of HUMA
• former member of HUMA in 2019 (briefly before the general election)

Tony Van Bynen, Liberal Party, Newmarket-Aurora, Ontario

Brief Biography

Tony Van Bynen was first elected to the House of Commons for Newmarket-Aurora in 2019 and re-elected 2021. A resident of Newmarket for over 40 years, Tony and his wife Roxanne raised their 2 daughters there.

Community service, volunteerism, and helping those who need it most is what drives Tony every day. He and Roxanne have volunteered at the Southlake Hospital, and the Inn from the Cold, for over 10 years. They also deliver food for the Newmarket Food Bank, and Tony was instrumental in creating Belinda's Place, which is a multi-purpose facility for homeless and at-risk women.

He also had the privilege of serving as the Mayor of Newmarket for 12 years. During that time, community building is what guided Tony on his mission to:

• Revitalize Main Street
• Renew the historic Old Town Hall, and
• Build the Riverwalk Commons so families and friends can enjoy great public places

Through his previous role as the President of the Chamber of Commerce, and his 30-year career in banking, Tony understands what local businesses need to thrive and grow. He's delivered innovative solutions to help local business owners find success, including creating the Envi broadband network, so businesses in the community have ultra-high-speed connectivity, which has been particularly crucial during the pandemic.

Of note:

Key issues of interest: Focused studies to help Canadians, especially getting through the pandemic

Rosemarie Falk, Conservative Party, Associate Labour Critic, Battlefords-Lloydminster, Saskatchewan

Brief Biography

Rosemarie Falk is the Conservative candidate for Battlefords-Lloydminster. Rosemarie was born and raised in Lloydminster, Saskatchewan. Along with her husband Adam, she is now raising her children there. She has always been actively engaged in her community. Throughout her social work career and extensive volunteer work she has worked with some of the most vulnerable members of the community.

Rosemarie was first elected to the House of Commons in a by-election on December 11, 2017. Prior to this, Rosemarie worked as a registered Social Worker in Saskatchewan and has a Bachelor of Social Work from the University of Calgary. She also has experience as a legal assistant specializing in family law and as a legislative assistant in federal politics.

In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Associate Shadow Minister for Labour and Associate Labour Critic.

Of note:

• she has served as a member of the Standing Committee on Citizenship and Immigration
• sponsor: Bill C-318, An Act to amend the Employment Insurance Act and the Canada Labour Code (adoptive and intended parents)
• Rosemarie is committed to being a strong voice for seniors, families, taxpayers and rural communities
• Associate Critic- Labour in the Official Opposition's shadow cabinet

Michelle Ferreri, Conservative Party, Families, Children and Social Development Critic, Peterborough-Kawartha, Ontario

Brief Biography

Michelle is the Member of Parliament for Peterborough-Kawartha and was elected in the 2021 federal election. Michelle was appointed as Shadow Minister for Tourism as part of the Conservative Shadow Cabinet for the 44th Parliament. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Minister for Families, Children and Social Development.

Prior to being elected, Michelle was a well-known community advocate, an award-winning entrepreneur, a committed volunteer, and a highly sought-after public speaker and social media marketer.

Michelle has over 20 years' experience in media, marketing and public speaking. During her time as a reporter, one of Michelle's most memorable experiences was when she had the opportunity to visit the Canadian Forces Base, Alert and fly to the station on a C-17 Globemaster.

Michelle is a graduate of Trent University (Biology/Anthropology) and Loyalist College (Biotechnology). Her education in science has led her to be a passionate advocate for physical and mental health.

She is a proud mother of 3 children, between the ages of 12 and 17, and shares her life with her supportive partner, Ryan, and his 3 daughters.

Of note:

• she is a member of the Standing Committee on the Status of Women since December 9, 2021
• Michelle is interested in physical and mental health, housing, the economy and food security
• Critic- Families, Children and Social Development in the Official Opposition's shadow cabinet

Tracy Gray, Conservative Party, Employment, Future Workforce Development and Disability Inclusion Critic, Kelowna-Lake Country, British Columbia

Brief Biography

Tracy was elected to serve as Member of Parliament for the riding of Kelowna-Lake Country in October 2019. In October 2022, under the new Conservative Party leader, she was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Employment, Future Workforce Development and Disability Inclusion. She previously served as Shadow Minister for Interprovincial Trade and as the Shadow Minister for Export Promotion and International Trade.

Tracy has extensive business experience and worked most of her career in the BC beverage industry. She founded and owned Discover Wines VQA Wine Stores, which included the number one wine store in BC for 13 years. She is has been involved in small businesses in different sectors including financing, importing, oil and gas service and a technology start-up.

The daughter of a firefighter and Catholic School teacher, Tracy grew up around service and a strong work ethic. She has one son and been married for 27 years.

Tracy has received many accolades including RBC Canadian Woman Entrepreneur of the year, Kelowna Chamber of Commerce Business Excellence Award and 100 New Woman Pioneers in BC.

Tracy served with many organisations over the years. She was appointed to serve by BC Cabinet to the Passenger Transportation Board and elected to the Board of Prospera Credit Union for 10 years. In addition, she served on the Okanagan Film Commission, Clubhouse Childcare Society, Okanagan Regional Library Trustee and Chair of the Okanagan Basin Water Board.

Of note:

• critic - Employment, Future Workforce Development and Disability Inclusion in the Official Opposition's shadow cabinet
• sponsor: Bill C-283, An Act to amend the Criminal Code and the Corrections and Conditional Release Act (addiction treatment in penitentiaries) and M-46 National Adoption Awareness Month (outside order of precedence)

Scott Aitchison, Conservative Party, Housing and Diversity and Inclusion Critic, Parry Sound-Muskoka, Ontario

Brief Biography

Scott Aitchison was born and raised in Huntsville, Ontario. After leaving home at 15, Scott was raised by the character of his hometown. In October 2022, under the new Conservative Party leader, he was named to the new Official Opposition's Shadow Cabinet as the Shadow Minister for Housing and Diversity and Inclusion.

Scott was first elected at the age of 21 to Huntsville Town Council. After serving as Town Councillor, District Councillor and Deputy Mayor, he was elected as Mayor of Huntsville in 2014 on a promise of fiscal discipline, responsible governance and excellent customer service. As Mayor, he built a reputation as a consensus-builder relentlessly focused on breaking down barriers and finding solutions.

Of note: Critic - Housing and Diversity and Inclusion in the Official Opposition's shadow cabinet

Bonita Zarrillo, New Democratic Party, Disability Inclusion Critic, Port Moody-Coquitlam, British Columbia

Brief biography

Bonita Zarrillo was first elected as Member of Parliament for Port Moody-Coquitlam in 2021. She is known to be a voice for equality and drives systemic change that puts people first. She entered public service so she could advocate for working people and to support the needs of the most vulnerable in the community. She championed buy-local as a tool for small businesses to thrive and to enable them to hire locally, challenged pipeline corporations to pay their fair share, and completed a successful housing affordability strategy that generated the most rental housing starts in her region.

On Coquitlam Council, Bonita served on the following:

• Fraser Health Municipal Government Advisory Council
• Multiculturism Advisory Committee
• Metro Vancouver Indigenous Relations Committee
• Universal Access Ability Advisory Committee, and
• past Board Member for the Federation of Canadian Municipalities

She sat on the board of two local Not-For-Profits that advocate for gender equality and speaks regularly at The Commission on the Status of Women at the United Nations.

Before being elected to municipal government, Bonita worked in consumer products as a Business Analyst for companies across North America and Europe. She has a B.A. in Sociology from the University of Manitoba, a Human Resource Management Certificate from the University of Calgary and has a Computer Science Degree from CDI Montreal.

Of note:

• critic - Disability Inclusion
• pledged to help Canadians through collaborative committee work
• key issues of interest:
• mental health and suicide prevention
• Women's issues and gender equality
• Workers' conditions
• Care economy

Louise Chabot, Bloc Québécois, Employment, Workforce Development and Labour Critic, Thérèse-De Blainville, Quebec

Brief Biography

Louise Chabot was first elected as Member of Parliament in 2019 and was re-elected in 2021. She was born in 1955 in Saint-Charles-de-Bellechasse, Quebec, is a Quebec trade unionist and politician. She was president of the Centrale des Syndicates du Québec (CSQ) from 2012 to 2018. The organization initially represented nearly 200,000 members, including 130,000 in the education and early childhood sector. She coordinated a major unionization project that resulted in the consolidation of more than 15,000 family day care managers, a first in the union world in Canada.

Of note:

• critic - Employment, Workforce Development & Labour Critic
• sponsored the Committee's study on the Review of the EI Program in 2021 critical of the EI program in general and very outspoken about seasonal workers' trou noir and inadequate sickness benefits
• interested in seniors' financial security and their purchasing power
• seek to enact federal anti-scab legislation
• supporter of labour unions - Former president of Centrale des syndicats du Québec (CSQ)
• member of the consultative committee for Quebec's Pay Equity Commission
• advocate for increase in health transfers
• respect for provincial jurisdictions
• labour shortages
• nurse by profession

Issue

ESDC's Benefits Delivery Modernization (BDM) Programme is modernizing the Employment Insurance benefit processing platform.

Background

• The BDM Programme is a long-term, strategic undertaking to ensure the reliable and accurate delivery of Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP) benefits to Canadians
• BDM is currently focused on the OAS migration to the new platform. The first major milestone was the June 2023 launch of OAS Release 1, which saw over 600,000 Foreign Benefit recipients successfully onboarded. The final OAS Release for all remaining clients is on track for December 2024
• BDM's second phase includes the migration of EI onto the new platform through multiple releases between 2025 and 2028
• BDM's final phase will be the migration of CPP onto the new platform, which is anticipated by 2030

Key facts

• EI will be the second benefit to onboard onto BDM's new platform
• Preparatory work for the EI migration began with the Readiness phase in August 2023. This phase addressed the technology, security, data, privacy and business readiness processes needed prior to deployment
• The EI program serves three distinct client groups: employees, fishers, and the self-employed. These cohorts enable BDM to explore a more iterative deployment approach that will be delivered over multiple releases across each of the 3 cohorts. Not only will this approach reduce the overall risk by avoiding "big bang" releases, it will also help to minimize the risk from a massive data migration
• This iterative deployment approach will also allow BDM to begin with a small cohort and will provide the opportunity to learn how a transformed service can be delivered while simultaneously reducing the risk to the existing service delivery

Key messages

• The BDM Programme is the core initiative that will deliver on the Minister of Citizens' Services mandate letter commitment to lead the ongoing "development and implementation of modern, resilient, secure and reliable services and benefit delivery systems for Canadians and ensure those services and benefits reach all Canadians regardless of where they live."
• At the heart of this mandate are the policies, programs, services and benefits that support our most vulnerable: the elderly and the unemployed. But all Canadians will, at some point or another, interact with Service Canada for services, and these services should be as accessible as possible
• Key drivers of change to modernize benefits delivery are:
  • clients' needs and expectations are rapidly changing regarding how they interact with the government
  • systems are aging and at risk of failure
  • lack of flexibility to make changes in the current systems impacts policy agility
  • employees do not have the modern tools needed to serve clients best, and
  • ESDC is mandated to help build a stronger and more inclusive Canada, help Canadians live productive and rewarding lives, and improve Canadians' quality of life
• While the BDM programme is a very sizable investment, during the 10-year life of the programme, over $1.5 trillion in EI, OAS and CPP benefits will be paid out, and the current and projected costs are consistent with similar transformations undertaken in other jurisdictions

Issue

When will the plan for Employment Insurance (EI) modernization be presented, why were the temporary measures terminated before the modernization plan was announced or put in place, and is the EI program nimble enough to provide support to Canadians should a recession come?

Background

Key Facts

Key messages

Issue

What are the current service standards for Employment Insurance (EI) claims?

Background

• Employment and Social Development Canada (ESDC) is the largest federal service delivery organization in Canada, delivering benefits and services to support Canadians at all stages of their lives. ESDC has worked tirelessly to manage efficiently the processing of EI applications and call volumes and issued more than $21.9 billion in EI benefits in 2022 to 2023. Service Canada's key client service performance indicator for timeliness of EI claims processing is Speed of Payment (SOP). The target is to issue a payment, or notification of non-payment, to claimants within 28 days of filing their application for benefits, 80% of the time
• Service Canada makes every effort to meet EI's service standard. The EI processing network is fully mobilized and focussed on issuing payments or providing a notification of non-payment to clients as soon as possible. However, there are situations that prevent the Department from meeting this objective, particularly during the annual summer and winter peak periods, or because of missing documents or incorrect information

Key facts

• In 2023 and 2024: as of November 30, 2023, 85.5% of EI payments, or notifications of non-payment, were made within 28 days for the whole of Canada
• For 2022 and 2023, 76.2% of EI payments, or notifications of non-payment, were made within 28 days for the whole of Canada
• In 2023 and 2024: as of November 30, 2023, the average number of days it took for a client to receive their first EI benefit payment was 18 days, compared to an average of 24 days in 2022 and 2023
• In 2023 and 2024: as of October 31, 2023, 1,647,190 EI Initial and Renewal applications were received and 1,662,919 were processed
• For 2022 and 2023, 2,904,173 EI Initial and Renewal applications were received and 2,975,644 were processed
• For 2022 and 2023, the EI Call Centre answered approximately 6.2 million calls. Of these calls, 40% were answered by an agent within 10 minutes and the average wait time was 18 minutes
• As of November 4, 2023, the EI Call Centre answered over 3.5 million calls. Of these calls, approximately 86% were answered by an agent within 10 minutes and the average wait time was 3.6 minutes
• The EI Call Centre has improved its accessibility to be near 100% for callers accessing the queue to speak to an agent, compared to 50% in 2020 and 2021
• On November 3, 2022, the Fall Economic Statement announced $1.02B for Service Canada to process EI and Old Age Security claims faster, while reducing the EI claim inventory. In addition, $574M was announced to reduce the EI and Pensions Call Centre wait times

Key messages

• The EI Program, including its Call Centres, remains at the forefront of the Government of Canada's service to Canadians
• As Canada moves into a post-pandemic era, yearly peak periods of demand will continue to affect some Canadians as they wait longer for their claims to be processed and for their calls to the EI Call Centre to be answered
• Service Canada continues to put measures in place to ensure that Canadians have timely access to the EI benefits when they need it most

If pressed

• The EI program is one of the pillars of Canada's social safety net and plays a pivotal role in the lives of Canadians, providing vital income support when they need it most
• In 2022 and 2023, Service Canada delivered $21.9 billion in direct EI benefits to ensure the economic and social well-being of Canadians
• While we cannot discuss individual cases, any clients who are waiting for a decision regarding their eligibility for EI benefits and are in an urgent or dire need situation should contact the EI Call Centre for assistance
• In 2023 and 2024: as of November 30, 2023, 80.8% of EI payments, or notifications of non-payment, in the Quebec region were made within 28 days
• In 2023 and 2024: as of November 30, 2023, the average number of days it took for a client to receive their first EI benefit payment in Quebec was 21 days, compared to an average of 18 days in Canada
• The results in the Quebec region are lower than the national results because the EI network has focused on reducing the volume and age of claims specifically in this region. As more claims were processed past the 28-day service standard, Speed of Pay results were impacted and below target
• These efforts are having a positive impact on clients from the QC region. As of November 25, 2023, the volume of Initial and Renewal pending claims is 22% lower in comparison to the same week last year, and the claims that are 28 days or older is 75% lower
• Service standard results for the Quebec region are expected to significantly improve moving forward
• In 2023 and 2024: as of October 31, 2023, 407,571 EI Initial and Renewal applications were received in Quebec and 423,364 were processed

Issue

The Fall Economic Statement announced on November 21, 2023, the introduction of a new, 15-week shareable benefit in the Employment Insurance (EI) program for parents through adoption or surrogacy, along with corresponding changes to the Canada Labour Code to ensure job-protected leave for employees in the federally regulated private sector.

Background

• The new benefit would fulfill the Government of Canada's commitment to "introduce a new 15-week benefit for adoptive parents," as outlined in the 2021 mandate letter to the then Minister of Employment, Workforce Development and Disability Inclusion
• Once this new benefit is in place, parents through adoption or surrogacy would be able to access the same total number of weeks of EI income support as birth parents (who can combine maternity and parental benefits)
• Parents through adoption and surrogacy currently have access to the same number of EI parental benefit weeks as birth parents and can choose between up to 40 shareable weeks of standard parental benefits (at 55% replacement rate) or up to 69 shareable weeks under the extended parental option (at 33% replacement rate). However, these parents do not receive the 15 weeks of EI maternity benefits which support recovery from pregnancy and childbirth. (Note: a surrogate can receive maternity benefits because they experienced pregnancy or childbirth)
• Once this benefit is in place, it would also bring EI more in line with benefits offered to adoptive parents in Quebec who can access the welcome and support benefit relative to an adoption and the adoption benefit through the Quebec Parental Insurance Plan. Parents through birth, adoption or surrogacy would have access to the same number of weeks of benefits available under their regime (EI or QPIP)
• The new EI benefit for parents through adoption or surrogacy would focus on the responsibilities carried out by parents related to the placement of a child(ren) for the purpose of adoption or, in situations such as surrogacy, related to the arrival of a new-born child(ren) under their care
• As such, parents could receive the benefit within a period that would begin the earlier of five weeks prior to the week of the expected placement of the child(ren) or arrival of the new-born child(ren), or the week in which the actual placement or arrival occurs. Benefits would be payable up to 17 weeks after the week of the actual placement or arrival. This period would provide flexibility to parents to claim the benefit in a way that best suits their needs
• Associated amendments to the Canada Labour Code would provide employees in the federally regulated private sector with up to 16 weeks of unpaid job-protected leave. The leave duration provides one additional week of job-protected leave to allow EI claimants to serve the one-week waiting period prior to receiving their benefits
• The federally regulated private sector includes about 990,000 employees (or 6% of all Canadian employees) working for 19,150 employers in industries such as banking, telecommunications, broadcasting, and inter-provincial and international transportation (including air, rail, maritime, and trucking), as well as federal Crown corporations. Part III does not apply to the federal public service
• Private Member's Bill C-318, introduced on March 8, 2023, by MP Rosemarie Falk (Battleford-Lloydminster, Conservative Party of Canada), aims to introduce a similar benefit that targets a similar population group with the same benefit length and qualifying criteria as the new benefit. However, the proposed benefit under Bill C-318 differs in policy intent, as it focuses on attachment of the child (which is similar to the parental benefit) while the government proposal focuses on the responsibilities related to the placement or arrival of the child. Also differs in implementation timelines, as C-318 would be implemented on royal assent which would be challenging while government proposal would be by Order approved by Governor in Council
• Bill C-318 is currently being studied by the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), which heard from the sponsor and witnesses on November 27 and 29, 2023. HUMA is expected to report to Parliament by February 2024

Key facts

• The 2023 Fall Economic Statement announced the introduction of a new 15-week shareable EI adoption benefit, at an estimated cost of $48.1 million over 6 years and $12.6 million per year ongoing
• This benefit is expected to support approximately 1,700 Canadian families each year, including 2SLGBTQI+ parents, providing additional EI support to those who become parents through adoption and surrogacy and need to step away from work as they finalize the placement of the child(ren)
• Providing adoptive parents with more time and flexibility to spend with their child in the critical period surrounding the placement for adoption can lead to more successful family formation, reduce anxiety for the parents and child, who often experienced traumatic events, and establishes trust. This would indirectly help the child(ren) adapt to a new home, school, routines and access services

Key messages

• On November 21, 2023, the Minister of Finance announced that a new, 15-week shareable benefit for parents through adoption or surrogacy would be introduced in the EI program in her Fall Economic Statement
• The new benefit would support approximately 1,700 parents through adoption or surrogacy each year with additional EI benefits to carry out their responsibilities related to the placement or arrival of the child or children and will make the program more inclusive for various types of Canadian families, including 2SLGBTQI+ parents and families
• Parents could combine the new benefit with the existing EI parental benefit, making the total number of weeks of income support the same as that of birth parents who can combine maternity and parental benefits

Issue

What is the Government doing to ensure that employment insurance (EI) premium rates remain stable and predictable for workers and employers and will the Government credit the EI Operating Account (EIOA) for costs of EI temporary measures during the pandemic?

Background

• The EI program is financed by premium contributions from employees engaged in insurable employment in Canada and their employers. Employers pay 1.4 times this rate and Quebec residents receive a premium reduction to account for the Quebec Parental Insurance Plan (QPIP) replacing EI maternity and parental benefits
• As legislated under EI Act, the EI premium rate setting process is carried out by the Canada Employment Insurance Commission (the Commission), a tripartite organization representing business, labour and the Government of Canada
• Since 2017, the Commission has set the EI premium rate according to a seven-year forecast break-even rate, determined by the EI Senior Actuary. This mechanism, set out in the Act, ensures that EI premiums collected are equal to the total amounts charged to that account at the end of a seven-year period
• There is also a legislated 5-cent limit on annual changes to the EI premium rate. This, along with the 7-year break-even period, ensures affordability for premium payers while offering ongoing predictability and stability
• Given the economic impact of the COVID-19 pandemic, the Government used its authority under the EI Act to freeze the EI premium rate for 2021 and 2022 at the 2020 level ($1.58). The 2023 EI premium rate was set at $1.63, thereby ending the 2-year freeze on premium rate increases
• In the 2024 Actuarial Report on the EI Premium Rate, released in August 2023, the EI Senior Actuary forecasted the 7-year break-even rate at $1.66 per $100 of insurable earnings
• On September 14, 2023, the Commission set the 2024 EI premium rate at $1.66 per $100 of insurable earnings. This represents a 3-cent increase to the premium rate (from $1.63 in 2023 to $1.66 in 2024). The employer rate is $2.32, or 1.4 times the employee rate
• This rate is expected to pay down the costs of the current cumulative deficit in the EI Operating Account by 2030 (for example, 7 year break-even period between 2024 to 2030)
• The program and administrative costs of the EI Emergency Response Benefit (EI-ERB), which totalled $26.8 billion, were credited to the EI Operating Account (EIOA) from the Consolidated Revenue Fund (CRF). This means that all CERB and EI-ERB costs were ultimately borne by the CRF rather than the EIOA
• During the pandemic, the Government also introduced a suite of temporary measures to facilitate access to the program. The costs stemming from the COVID-19 temporary measures were estimated at $23.2 billion. No further credit to the EIOA has been provided and as such, deficits accumulated due to these measures contribute to the existing cumulative deficit, projected to be $18.5 billion as of December 31, 2024.

Key facts

• While the 2024 EI premium rate represents an increase of three cents from the 2023 rate, the 2024 EI premium rate remains at a near record historical low. It is 7 cents lower than it was between 2008 and 2010 and 22 cents lower than the 2015 EI premium rate of $1.88 per $100 of insurable earnings, having reached its lowest levels ($1.58) in 2020, 2021, and 2022
• With the 3-cent increase in 2024, workers earning at or above the maximum insurable earnings threshold are paying $46.67 more in premiums than they did in 2023, while employers are paying $65.34 more for each of their employees
• While the premium rate for 2025 will be determined by the EI Actuarial Report that will be released in August 2024, the latest public figures from the 2023 Fall Economic Statement (FES) projected the EI break-even premium rate for 2025 at $1.63 per $100 of insurable earnings. If premiums were held at this rate, the EIOA would be brought to near cumulative balance by 2031. This is 3 cents lower than the forecast break-even rate of $1.66 per $100 of insurable earnings calculated by the EI Senior Actuary in the 2024 EI Actuarial Report
• These revised figures are due to several updated economic and labour market projections reported in the 2023 FES. For example, EI premium revenues are projected to grow at 7.2 per cent in 2023-2024. This is due to projected growth in the workforce and a slight increase in the premium rate according to the legislated premium-rate setting mechanism from $1.63 in 2023 to $1.66 in 2024
• The 2023 FES also projected a cumulative deficit of $20.0 billion in the EIOA by the end of 2023, $0.2 billion lower than what the EI Senior Actuary forecasted
• The 2023 FES announced a new shareable 15-week EI benefit for new parents who adopt a child(ren) or parents through surrogacy or other reproductive methods. This new benefit will provide parents through adoption and surrogacy with additional EI support for their responsibilities related to the placement or arrival of the child and make the program more inclusive for all types of Canadian families. The Government also announced up to four additional weeks of regular benefits for EI seasonal claimants in the same 13 regions targeted by the existing legislated temporary measure, for claims established between September 10, 2023, to September 7, 2024
• None of the current projections for EI premiums and the EIOA cumulative deficit account for costs (expenditures and revenues) of any future measures that may be implemented as part of modernizing the program or in response to emerging program needs, such as a possible economic downturn
• Future improvements to the EI program will require additional premium rate increases at a time when many economists are predicting a recession. This could be mitigated by other measures to support the financial sustainability of the EIOA

Key messages

• The Canada Employment Insurance Commission sets the annual EI premium rate according to a 7-year forecast break-even rate, determined by the EI Senior Actuary and annual adjustments to the premium are limited to five cents. Together this EI financing mechanism ensures affordability for premium payers while offering ongoing predictability and stability
• On September 14, 2023, the Commission set the 2024 EI premium rate at $1.66 per $100 of insurable earnings. This represents a 3-cent increase to the premium rate (from $1.63 in 2023 to $1.66 in 2024)
• This rate remains at a near-record historical low (22 cents below high of $1.88 in 2016) and is based on forecasts and estimates prepared by the EI Senior Actuary
• The Government continues to assess what was heard during consultations held in 2021 and 2022; however, there is not always consensus on how EI reforms could best meet the needs of both workers and employers. Stakeholders agreed that EI changes should not put undue financial pressure on workers and small businesses, many of whom are already struggling to make ends meet in the current context of persistent inflation and the rising cost of living. It is important for the Government to consider improvements to EI in a manner that is fiscally responsible and keeps EI premium rates low and stable
• The Government remains committed to ensuring that the EI program is accessible, adequate, and affordable for employees and employers while remaining financially sustainable in the long-term

If a question is raised on the difference between the projections in the Chief Actuary's Report and the Fall Economic Statement:

• the 2024 Actuarial Report on the EI Premium Rate, released in August 2023 forecasted the 7-year break-even rate at $1.66 per $100 of insurable earnings
• the 2023 FES, released in November 2023, revised this projected break-even rate at $1.63. This updated projection was based on the newest available information on the economic and labour market projections available at the time
• the 2025 rate will be set based on the information available in summer 2024 and these projections will be released by the EI Senior Actuary in August 2024

Issue

On November 21, 2023, the Fall Economic Statement announced a new, temporary 1-year measure that will provide up to 4 more weeks of Employment Insurance (EI) regular benefits, on top of the up to 5 additional weeks available under the existing temporary legislated measure, to eligible seasonal claimants in 13 targeted EI regions (a total of up to nine additional weeks of regular benefits will be provided automatically to eligible claimants). This will help mitigate the increased risk for these workers of an income gap between work seasons due to low unemployment rates combined with shorter than usual work seasons.

Background

• Unusual labour market conditions and a rapid decline of unemployment rates in some EI regions over the past year, including the 13 regions targeted by the existing temporary legislated measure with high concentrations of seasonal claimants, caused significant changes in the maximum EI benefit duration for these workers compared to previous years. Seasonal claimants who receive fewer weeks of income support due to declining unemployment rates may be at greater risk of an income gap before their return to work
• Since 2018, a temporary EI measure has been in place (and subsequently extended via legislation) to provide up to 5 additional weeks of EI regular benefits (up to a maximum of 45 weeks of entitlement) to eligible seasonal claimants in 13 targeted EI regions. Most recently, Budget 2023 extended these temporary rules for an additional year, until October 2024; the cost of this support is estimated at $147 million over 3 years, starting in 2023 to 2024, which will benefit 62,000 seasonal workers (see list of 13 regions below)
• The Government has made successive commitments to consider a long-term approach to support seasonal workers. This includes considering a long-term solution that best targets the needs of seasonal workers (Budget 2022) and building a stronger and more inclusive EI system that "covers all workers, including workers in seasonal employment" (December 2021 mandate letter)

Key facts

• Many seasonal claimants rely on the EI program to provide income support through recurring periods of unemployment. In 2021 to 2022, seasonal claims made up 342,800 of the 1,457,750 claims established for EI regular benefits. Every year, approximately 10% of seasonal claimants face an income gap between the end of their EI benefits and the start of their next work season
• In some areas, the steep decline in unemployment rates and quick changes in labour market conditions over the past year, meant some EI claimants in seasonal industries were entitled to fewer weeks of regular benefits than in previous years and are at greater risk of facing an income gap. The greatest impacts of the decline in the unemployment rates in these regions are expected to be felt from September to December as the majority of all seasonal claims in these regions are established during that period each year (for example, 59% in 2019)
• On November 21, 2023, the Fall Economic Statement announced up to 4 additional weeks of regular benefits for eligible EI seasonal claimants in the same 13 regions targeted by the existing legislated temporary measure who start an EI claim between September 10, 2023, and September 7, 2024. These weeks will be automatically applied to eligible claims by Service Canada, with no need for further action by claimant that meets EI requirements (for up to a maximum of 9 additional weeks)
• The temporary 1-year measure is expected to benefit around 42,000 of the 62,000 EI seasonal claimants who are at risk of experiencing a greater income gap this year due to specific recent and atypical changes in labour market conditions in these regions
• It is estimated that seasonal claimants will receive, on average, 3.3 additional weeks of benefits under the new temporary measure

Key messages

• Over the last year, the unemployment rate has hit historic lows in some regions across Canada. While this is good news for most people, the increase in available jobs is not always evenly distributed across industries and regions
• Seasonal workers are an important part of Canada's local economies and many of them rely on Employment Insurance (EI) for the support they need between work seasons and to avoid an income gap until the return to seasonal employment
• This is why Budget 2023 extended the existing temporary measure to support seasonal workers from October 2023 to October 2024
• Due to sudden changes in regional unemployment rates and labour market conditions this year, some seasonal workers may not qualify for enough weeks of benefits to cover them until the next season, resulting in a greater risk of an income gap
• In recognition of this, the 2023 Fall Economic Statement proposed a 1-year measure to provide additional temporary support for these workers. This would provide up to 4 additional weeks of Employment Insurance regular benefits to eligible seasonal claimants in the 13 targeted regions, on top of the up to 5 additional weeks already available, reducing risk of income gap
• Additional weeks will be added automatically to eligible seasonal claims, no additional action will be required by the claimant. The maximum number of weeks for regular benefit is maintained at 45 weeks

List of 13 regions targeted by the Budget 2023 and FES 2023 seasonal extensions:

• Newfoundland and Labrador (excludes St. John's)
• Eastern Nova Scotia
• Western Nova Scotia
• Prince Edward Island (excludes Charlottetown)
• Charlottetown
• Madawaska-Charlotte
• Restigouche-Albert
• Gaspésie-Îles-de-la-Madeleine
• Lower Saint Lawrence and North Shore
• Central Québec
• Chicoutimi-Jonquière
• North Western Québec
• Yukon (excludes Whitehorse)

Issue

What is the Government doing to move forward with the implementation of the Employment Insurance (EI) Board of Appeal (BOA) for EI first level appeals?

Background

• In August 2019, the Government announced significant changes to the EI and Income Security recourse processes. These changes included client-centric improvements within the Social Security Tribunal (SST) and a return to a locally based tripartite decision-making model for first-level EI appeals (EI BOA) outside of the SST
• Over summer 2022, consultations were held to review issues previously raised by stakeholders and parliamentarians, to examine possible solutions and to identify any remaining concerns relating to the proposed legislation. In parallel, consultation in the form of an online survey, open to the public, was also conducted to review certain aspects of the EI appeal process.
• In Budget 2023, the Government proposed to introduce amendments to the Department of Employment and Social Development Act (DESDA) (and consequential amendments to other Acts) to establish a new independent tripartite BOA. The Budget Implementation Act, which received Royal Assent on June 22, 2023, established the BOA and the legislation stipulates that the tribunal will come into force at a date to be set by Order in Council

Key facts

• In Budget 2023, the Government proposed to introduce amendments to the Department of Employment and Social Development Act (and consequential amendments to other Acts) to establish a new independent tripartite Employment Insurance (EI) Board of Appeal (BOA)
• Bill C-47, the Budget Implementation Act, received Royal Assent on June 22, 2023, and enabled the creation of the BOA
• As a tripartite organization, the new EI BOA will represent the interests of government, workers, and employers, helping put first-level EI appeal decisions back into the hands of those who pay into the EI system. The EI BOA will hear cases where claimants disagree with a Service Canada reconsideration decision regarding their EI claims. Until the EI BOA is operational, the SST will continue to hear first level EI appeals. To ensure smooth operations following the launch of the EI BOA, there will be a transition period during which the new BOA and the SST will run in parallel until a second Order in Council would dissolve the EI Section

Key messages

• The creation of the EI Board of Appeal is a significant reform to the EI recourse process. Its design is informed by consultations with Canadians, including labour and employer groups
• In Bill C-47, the Budget Implementation Act, the Government introduced amendments to the Department of Employment and Social Development Act (and consequential amendments to other Acts) to establish a new independent tripartite Board of Appeal
• The tribunal will come into force at a date to be set by Order in Council. Until the BOA is operational, the Social Security Tribunal will continue to hear first level EI appeals

Issue

What is the Government doing to help low-income Canadians who have to repay COVID emergency benefits they received, and why is there no amnesty for low-income debtors?

Background

• The Government delivered the Canada Emergency Response Benefit (CERB) and Employment Insurance Emergency Response Benefit (EI-ERB) through a simplified attestation-based approach, which was designed to verify recipients' eligibility through strong post-payment integrity measures
• Although it was understood that an attestation-based approach created the potential for some Canadians to receive COVID-19 benefits for which they were ineligible, this approach was taken to ensure that income support went to vulnerable Canadians and residents as quickly as possible
• Under this approach, the Canada Revenue Agency (CRA) is responsible for integrity measures for the CERB, while Employment and Social Development Canada (ESDC) oversees the integrity measures for the EI-ERB
• As part of their integrity work, ESDC and the CRA have assessed all COVID-19 benefit program applications against the eligibility criteria and are applying a risk-based approach to post payment verifications that focuses on the highest risk files and the greatest dollar value at risk. The approach to post-payment verifications is intended to balance the need for program integrity, financial stewardship and compassion for Canadians facing financial hardship due to the COVID-19 pandemic
• Under the Financial Administration Act, the CRA and ESDC have an obligation to take timely and cost-effective collection actions to pursue amounts owed to the Government, including debts resulting from CERB and EI-ERB overpayments
• With regard to an amnesty, establishing a specific income threshold as a qualifier for broad-based debt forgiveness would ultimately be arbitrary in application as there would be individuals who do not meet the income threshold but continue to be in a vulnerable situation
• The flexible payment arrangements currently in place represent a person-centred approach to repayment and respond to individual's financial circumstances

Key facts

• The Government has clearly communicated its intent to recover ineligible payments via post-verification work in order to maintain the integrity of the benefits
• It has committed to providing an empathetic, people-first approach to all Canadians, and to work with individuals who need to repay benefits to help them find the payment arrangement best suited to their situation
• Under the current flexible repayment approach, these individuals would have their cases reviewed holistically, reducing their vulnerability
• Those who are experiencing financial hardship will be assessed considering the client's ability to pay based on the debtor's individual financial situation. In cases of hardship, debts may be deferred or written off. In addition, penalties or interest are not charged on emergency benefit overpayments
• This approach is more responsive to people's unique financial situations than an amnesty would be. An amnesty would rely on arbitrary eligibility criteria that may not reflect everyone's financial circumstances and could risk excluding some claimants

Key messages

• The delivery model for the CERB program based on attestations was chosen deliberately to maximize speed of delivery under urgent circumstances with the consequence being that some individuals received benefits in error or are in an overpayment situation
• It has committed to providing an empathetic, people-first approach to all Canadians, and to work with individuals who need to repay benefits to help them find the payment arrangement best suited to their situation
• Those who are experiencing financial hardship will be assessed considering the client's ability to pay based on the debtor's individual financial situation. In cases of hardship, debts may be deferred or written off. In addition, penalties or interest are not charged on emergency benefit overpayments
• This approach is more responsive to people's unique financial situations than an amnesty would be. An amnesty would rely on arbitrary eligibility criteria that may not reflect everyone's financial circumstances and could risk excluding some claimants
• Preventing and recovering overpayments is critical to maintaining the public's trust in the Government and contributes to long-term sustainability of its programs

Issue

This note provides general information on the Temporary Foreign Worker (TFW) Program, including its overall purpose and design.

Background

• The TFW Program enables employers to fill labour and skills shortages on temporary basis when Canadians and permanent residents are not available, while protecting foreign workers while in Canada. The Program is particularly important in seasonal work and is a key source of labour for Canada's agricultural sector. Other sectors that rely on the Program include:
  • meat and fish processing
  • tourism
  • trucking
  • construction
  • digital media and technology firms, among others
• Along with the International Mobility Program (IMP), which is administered by IRCC, the TFW Program is one of Canada's two temporary work entry programs. Unlike the IMP, the TFW Program requires employers to undertake a Labour Market Impact Assessment (LMIA) to demonstrate that there is a genuine labour market need that cannot be filled by a Canadian or permanent resident
• The LMIA is an important tool that helps ensure hiring temporary foreign workers is in line with Canadian labour market needs, and that it assesses the risk of downward pressure on Canadian wages. The assessment also helps protect workers by ensuring that the business and job being offered are legitimate. It reinforces Program conditions and employer obligations and ensures that workers are paid a fair wage
• The TFW Program is jointly administered by 3 federal departments: ESDC, IRCC, and the Canada Border Services Agency (CBSA):
  • ESDC is responsible for processing employers' requests for LMIAs and for the TFW Program's employer compliance regime, including employer inspections
  • IRCC processes and determines eligibility for work permits, and
  • CBSA, at the port of entry, is responsible for the issuance of work permits

Key facts

• In 2022, 226,693 temporary foreign worker positions were approved under the Program (a 52% increase from the prior year) with 88,318 in the agricultural sector
• It is important to note that the number of approved positions does not represent the number of temporary foreign workers, as a certain number of approved positions remain unfilled each year
• In the same period, the Program approved 86,977 LMIAs, an increase of over 66% compared to the previous year
• While program volumes have increased in recent years due to domestic labour shortages, the TFW Program represents less than 1% of Canada's total labour force, compared to 0.5% prior to the COVID 19 pandemic
• Note that this figure does not include temporary residents from IRCC's International Mobility Program or International students, both of which make up larger portions of Canada's temporary resident populations

Key messages

• The Government of Canada recognizes the current challenges facing Canadian employers, as well as the vital role that temporary foreign workers play in key sectors of the Canadian economy, including across Canada's supply chain
• Given the current challenges faced by employers, several recent measures have been implemented to improve the Program's flexibilities, to ensure it continues to meet the labour market needs of today, while also ensuring that strong measures are in place to protect foreign workers while they are in Canada
  • This includes the Workforce Solutions Road Map, which announced a suite of measures in April of 2022 to help employers address current job vacancies across diverse sectors and occupations facing labour shortages. We recently announced a renewal that will extend a number of measures to August 30, 2024
  • It also includes the recently announced Recognized Employer Pilot, which will streamline service delivery for returning employers across Canada that have met a high standard with respect to TFW Program compliance, and who will commit to exemplary activities and employment practices in support of worker protection and developing the labour market. The pilot is expected to come to an end on December 31, 2026
    • We also continue to work towards better protecting the health and safety of temporary foreign worker
• In addition to current measures in place to ensure that workers and the program are both protected from any kind of abuse, last year, we launched the Migrant Worker Support Program (totaling $49.5M) to better support temporary foreign workers to learn about and exercise their rights
• New regulatory amendments to better protect temporary foreign workers were also implemented (in September 2022). The amendments help deter bad actors from participating in the Program and improve the Program's ability to conduct inspections and administer consequences for those who do not follow the rules

Issue

Local politicians and union members in Windsor are raising concerns that the NextStar Energy battery plant, expected to receive billions in financial support from the Government, will employ temporary foreign workers to fill positions.

Background

• The Temporary Foreign Worker (TFW) Program, along with the International Mobility Program (IMP), administered by IRCC, is one of Canada's two temporary work entry programs
• Unlike the IMP, the TFW Program requires prospective employers to submit a Labour Market Impact Assessment (LMIA), which requires employers to demonstrate that there is a valid reason to hire a temporary foreign worker over a Canadian or permanent resident
• The LMIA also reinforces program conditions, standards, and employer obligations to ensure that migrant workers are protected. It ensures that businesses are genuine, and that efforts to advertise available jobs to Canadians were undertaken
• This is an evolving situation: To date, most of the work permits issued for the NextStar Energy Battery plant were to workers entering via IRCC's IMP. Only one Work Permit that ESDC/Service Canada is aware of is currently tied to a worker from the TFW Program. As such, IRCC is best positioned to respond to questions regarding temporary foreign workers hired for this investment
• While ESDC/Service Canada does not know the number of workers, there may be some workers under other avenues that are work permit and LMIA exempt, such as intra-company transferees who could be eligible to travel to Canada through the Canada-Korea Free Trade Agreement
• Under the IMP, business visitors can also enter Canada and work without a work permit if conducting international business activities and are not entering the Canadian labour market. This can include activities associated with servicing related to a sales or warranty obligation, as well as to train and provide their knowledge and expertise to the Canadian workforce

Key facts

• In the spring of 2022, the Government of Canada, the Government of Ontario, LG Energy Solution (LGES) and Stellantis announced a major investment project with the creation of Canada's first large scale domestic electric vehicle battery facility in Windsor, Ontario. The facility is expected to be operational by 2025 and to create 2,500 jobs, in addition to more than 2,000 jobs during the construction phase
• On November 16, 2023, the Windsor Police Service shared a series of messages on social media noting the Service had met with His Excellency Woongsoon Lim, Ambassador of the Republic of Korea "to discuss safety and security" and adding that with "the new LG Energy Solution battery plant being built, we expect approximately 1,600 South Koreans traveling to work and live in our community in 2024." Reports that the project has already brought in some South Korean workers to staff the new plant raised concerns about promises to create local jobs
• In 2023, IRCC has issued fewer than 100 work permits for individuals destined to work on behalf of NextStar (the joint LGES-Stellantis venture) and their supporting companies in the development of the Windsor facility
• Foreign nationals may also have entered or will enter the country as work permit- exempt business visitors. These foreign nationals would not be included in work permit statistics, and IRCC is unable to report statistics on business visitors systematically

Key messages

• The Government takes seriously its commitments to Canadian workers. Any employers seeking access to the Temporary Foreign Worker Program must demonstrate that they have made reasonable efforts to recruit Canadians and permanent residents and that jobs are widely advertised to Canadian job seekers
• The TFW Program requires a Labour Market Impact Assessment to demonstrate that there is a genuine labour market need that cannot be filled by a Canadian or permanent resident
• We will continue to monitor the labour market to ensure that the Temporary Foreign Worker Program remains aligned with Canada's economic needs, and that Canadians are prioritized for available jobs
• Canada also has commitments with key trading partners in relation to labour mobility but with respect to these projects our government expects Canadian services, products, and the Canadian workforce to be the first to benefit

Issue

This note provides general information on the work permits under the Temporary Foreign Worker (TFW) Program.

Background

• The TFW Program is jointly administered by three federal departments: ESDC, IRCC, and the Canada Border Services Agency (CBSA). ESDC is responsible for the administration of the Labour Market Impact Assessment (LMIA), and for the TFW Program's employer compliance regime. IRCC is responsible for the processing, determination of eligibility, and is the policy lead for work permits
• Most work permits issued to foreign workers under the TFW Program are closed or "employer-specific" work permits, meaning that it is for a designated role with a specific Canadian company, in accordance with specific conditions, such as length of employment and location. The TFW Program requires employers to undertake an LMIA
  • Once an employer has an approved LMIA, the worker can apply to IRCC for a closed work permit, which authorizes them to work for a specific employer, occupation, and time period
  • Under the Seasonal Agricultural Workers Program (SAWP), workers can work for another SAWP employer without having to apply for a new work permit, subject to agreements between the source country, employer, and employee
• Temporary foreign workers who have a valid employer-specific work permit, or a work permit under the SAWP, and who are experiencing or are at risk of abuse in their jobs can apply for an Open Work Permit for Vulnerable Workers (IRCC). This permit allows temporary foreign workers to work temporarily for any employer, typically for 1 year, without the need for an LMIA
• There have been calls from various stakeholders and Parliamentarians to move away from employer-specific work permits, as these are seen to contribute to a power imbalance between the temporary foreign workers and employers by tying workers' authorization to work in Canada - and their livelihood - to 1 employer
• Closed work permits help the TFW Program protect some of the most vulnerable temporary foreign workers, as they allow Service Canada officers to review whether the employer and job offers are legitimate and to verify whether employers have adhered to program requirements in the past

Key facts

• In 2022, there were 204,700 temporary residents with a valid work permit under the TFW Program, representing roughly 1% of the Labour Force (20.8 million)
• In 2022, 139,290 work permits issued under the TFW Program

Key messages

• Under the Program, Temporary Foreign Workers are issued closed work permits, as the Program is intended to fill a specific, temporary need when Canadians or Permanent Residents are not available. This need is determined by an employer's application for a Labour Market Impact Assessment (LMIA)
• Service Canada officers review LMIAs to determine whether the employer and job offer are legitimate and verify whether employers have adhered to program requirements designed to improve the protection of workers and enhance program integrity
• Employers also commit to several key worker protection measures (particularly for low wage workers), such as paid return airfare and a commitment to help with affordable housing. An LMIA ensures workers will be paid adequate wages, which, in-turn, protects the Canadian economy from downward pressure on wages
• Once an employer has an approved LMIA, the worker can apply to IRCC for a closed work permit, which authorizes them to work for a specific employer, occupation, and time period.
• Temporary foreign workers who have a valid employer-specific work permit, or a work permit under the Seasonal Agricultural Worker Program, and who are experiencing or are at risk of abuse in their jobs can apply for an Open Work Permit for Vulnerable Workers (OWP-V). This permit allows temporary foreign workers to work temporarily for any employer, typically for one year, without the need for a LMIA
• Work stemming from the 2021 mandate commitment to implement sector-based work permits is currently underway

Issue

The Recognized Employer Pilot (REP) is a 3-year pilot program designed to be more responsive to established labour market shortages and to reduce administrative burden for repeat employers hiring within high-demand fields when they meet the highest standards for wages, working and living conditions and worker protection.

Background

• Many sectors face persistent labour shortages, and employers continue to report challenges in filling job vacancies, particularly in seasonal positions; rural and remote locations; and, in regions facing demographic decline
• On August 8, 2023, the Minister of Employment, Workforce Development and Official Languages announced REP
• As announced in Budget 2022, REP will test whether a more rigorous upfront application process for repeat employers in high-demand sectors would result in administrative efficiencies for stakeholders, while not undermining efforts to improve worker protections
• REP builds on the 2021 mandate letters for the then Minister of Employment, Workforce Development and Disability Inclusion, and the then Minister of Immigration, Refugees and Citizenship Canada (IRCC). It also builds on a 2021 Government of Canada announcement to design a Trusted or Recognized Employer Model that streamlines the current application process for returning employers with a good record of hiring temporary foreign workers to fill positions that cannot be filled by domestic workers

Key facts (heading not in original binder)

• 84 occupations are designated for REP using the 2021 National Occupation Classification (NOC) codes that are deemed to be in shortage based on the Canadian Occupational Projection System (COPS) assessment of recent labour market conditions (2019 to 2021)
• The following seven 2021 NOC codes deemed to be in shortage are excluded from REP to avoid program overlap with the Global Talent Stream (GTS):
  • 20012 – Computer and information system managers
  • 21300 – Civil engineers
  • 21310 – Electrical and electronics engineers
  • 21311 – Computer Engineers (except software engineers and designers)
  • 21210 – Mathematicians, statisticians, and actuaries
  • 21211 – Data Scientists
  • 21230 – Computer systems developers and programmers
• To manage application intake volumes and ensure that sufficient resources are available to meet expected employer demands, a phased approach to REP is as follows:
  • on September 12, 2023: Agricultural employer intake was aligned with peak agricultural application timing for the following season
  • January 1, 2024: Intake for all the other designated occupations
  • September 16, 2024: Intake for the REP closes and the dual-purpose application to become a recognized employer would cease to be available
  • December 31, 2026: Proposed end date for the REP
  • on November 22, 2023, the Department introduced a policy variation for REP that would allow employers who experienced COVID-19 shutdowns to draw from earlier calendar years to fulfill a REP eligibility criterion requiring repeat employers to have received a minimum of three positive LMIAs over the last 5 years. These employers would be required to have received at least one recent positive LMIA (in 2022 or 2023) plus two others in any of 2023, 2022, 2019, 2018, 2017 or 2016
• ESDC will complete an assessment of REP to test administrative efficiencies and inform future programming

Key messages

• The TFW Program aims to ensure the rights of temporary foreign workers are protected, while striking a balance between timely access to temporary foreign workers and protecting the labour market for domestic job seekers
• The REP will streamline service delivery for returning employers across Canada that have met a high standard with respect to TFW Program compliance, and who will commit to exemplary activities and employment practices in support of worker protection and developing the labour market
  • REP will reduce red tape by introducing longer LMIA validity periods of up to 36 months when hiring in 84 designated occupations in shortage
  • Recognized employers will gain access to simplified LMIA applications to address future hiring needs for designated occupations
  • Recognized employers will also benefit from a visual identifier on the temporary foreign worker section of Job Bank that shows their recognized status
• In exchange for more flexibility in how recognized employers can fill labour market gaps, employers must also commit to participate in random check-ins that will serve to validate that employers are maintaining the highest standards and for the purpose of evaluating the pilot to inform long term program design decisions

Issue

What is the government doing to improve the quality of the Temporary Foreign Worker (TFW) Program inspections?

Background

• Employers who use the TFW Program may be subject to inspections to verify their compliance with program conditions
• Since 2011, ESDC has been working to adapt the compliance regime to meet evolving needs. Presently, employers must demonstrate compliance with up to 28 conditions designed to better protect temporary foreign workers from abuse and exploitation. Findings of non-compliance result in administrative monetary penalties and, in some cases, bans from participating in the Program
• Many efforts to enhance the compliance regime were already underway prior to the pandemic; however, the realities of COVID-19 introduced a set of new issues and challenges for the Department. The impacts of this were highlighted in the Report on the Auditor General's audit of the Department's new quarantine and outbreak inspections, conducted during the pandemic. Report findings revealed issues in the timeliness of completing inspections, the quality of inspections, and proper documentation, with a focus on the impact to the health and safety of temporary foreign workers in the agriculture sector

Rebuilding the compliance regime

• On December 9, 2021, the Auditor General tabled a report on the TFW Program that provided recommendations to improve the Program's compliance regime
• In response to the report's findings, the Department immediately started working on rebuilding the compliance regime and successfully delivered on four priority commitments. Specifically, the Department:
  • established a protocol to take immediate action if a temporary foreign worker's health and safety is suspected to be at risk, including notifying stakeholders, authorities and other jurisdictions
  • developed a plan to target areas of higher risk, to reduce backlogs and ensure timely inspections
  • exceeded an 80% rate of inspection files without substantive errors by March 2022 (and 90% by September 2022)
  • provided supplementary training to all inspection staff in key areas to strengthen quality and ensure timely inspections
• The Department continues to make progress in rebuilding the compliance regime by successfully implementing a series of measures aimed at enhancing the quality, timeliness and reach of inspections. This includes: improving training; implementing a workload strategy; conducting outreach and engagement sessions; increasing its collaboration with stakeholders; information sharing with key partners; operating a confidential tip line; and, maintaining a liaison service with consulates
• A recent review of inspection cases concluded that overall measures implemented have had a positive influence on the TFW Program and the quality of inspections has significantly increased since 2021
• In the year 2022-23, the TFW Program undertook 2,141 employer inspections and received over 5,455 tips and leads
  • Approximately 6% of employers inspected were deemed to be non-compliant, which subsequently led to 23 warnings; 267 administrative monetary penalties; and 20 bans issued by the Program that year

Key facts

• To help improve inspection quality, the Department used funding from Budget 2022 to invest in measures such as quality control and review functions, to better detect and correct substantive errors within the inspection process
• In addition to the quality control function, funding was used to advance:
  • the modification of IT tools to allow for the better documentation of evidence
  • the implementation of enhanced training for inspection staff
  • the implementation of a workload approach to target high risk areas and reduce inspection backlogs
  • data capabilities to better identify high-risk areas, so that resources can be maximized and focused on cases with a higher risk of non-compliance
  • the outreach and engagement sessions to increase awareness on temporary foreign worker rights and employer obligations
  • the reporting tools in place, and
  • greater collaboration efforts and information sharing with partners to facilitate more timely interventions
• The initiatives above have positively contributed to the increase of quality and reach of inspections, which means leveraging the Department's compliance regime to attain maximum impact on the protection of the health and safety of temporary foreign workers
• Additional funding was recently announced in Budget 2023, investing $48 million over 2 years to improve the TFW Program Employer Compliance Regime, including more program inspectors and the maintenance of the worker protection tip line
• A recent review of inspection cases concluded that overall measures implemented have had a positive influence on the TFW Program and the quality of inspections has significantly increased since 2021

Key messages

• The Government takes the health, safety, and protection of temporary foreign workers very seriously, and will not tolerate any abuse or misuse of the Program. To help improve inspection quality, the Department used funding from Budget 2022 and Budget 2023 to invest in measures that are positively impacting the quality of inspections such as:
  • quality control and review functions
  • national workload management strategy and oversight
  • system enhancementstraining, guidance, and enhanced tools for inspectors
  • process simplifications, streamlined inspections
  • increased collaboration with partners through enhanced information sharing
• In addition to improvements on inspection quality, we have increased the reach, leveraging the entirety of the compliance regime's activities to maximize positive impacts to better ensure health and safety of temporary foreign workers
• The TFW Program operates a confidential tip line and Concierge Service to assist workers who report allegations of abuse and mistreatment. Through the Tip Line, workers are offered a personalized service, based on their needs, to report allegations of abuse or mistreatment, as they arise. Agents answer the phone 5 days per week (with weekend voicemail service) with the support of interpretation services in over 200 languages
• All leads, tips and allegations received by the Department, whether through the tip line or the Concierge Service, are reviewed and flagged within 24 hours based on their level of risk. Leads that are considered high-risk are assessed as a priority, ensuring appropriate action can be taken as quickly as possible (inspections are launched on high-risk employers within 24-48 hours to ensure worker safety). The number of tips and allegations received continues to increase, for example, this year, the Department has already seen a 53% increase in volume, compared to the same period last year

Issue

As the Canadian economy has reopened after the COVID-19 lockdowns, the Temporary Foreign Worker (TFW) Program has had a sustained surge in demand from employers due to historically low unemployment and recent policy measures designed to address labour shortages.

Background

• The Program is designed to be responsive to the Canadian labour market by ensuring that Canadians and Permanent Residents are first considered for available jobs. The Labour Market Impact Assessment (LMIA) process is the key labour market test that provides the government with assurances that hiring temporary foreign workers is aligned with Canadian labour market needs. The LMIA also establishes Program conditions that identify standards to ensure the health, safety, and protection of TFWs
• Budget 2022 announced access to $64.6 million over 3 years, beginning in 2022 to 2023, to improve the service delivery of the TFW Program by addressing increased volumes of LMIAs

Key facts

• The TFW Program is co-delivered by ESDC and IRCC, and co-administered with the Ministère de l'Immigration, Francisation et Intégration (MIFI) in Quebec
• On April 4, 2022, ESDC implemented measures to address labour shortages through the Workforce Solutions Road Map, including making the Seasonal Cap Exemption permanent; increasing the validity of LMIAs from 9 months to 18 months; and increasing the maximum employment duration for High-Wage and Global Talent Stream workers from two to 3 years
• Further changes took effect on April 30, 2022, including increasing the cap on low-wage temporary foreign workers as a percentage of an employer's workforce from 10% to 20% for all occupations, and to 30% for sectors with labour shortages. Moreover, the Program removed a policy that automatically refused the processing of LMIA applications for low-wage occupations in the accommodations and food services and retail sectors, where there is an unemployment rate of 6% or higher
• In October 2023, the measures were extended until August 30, 2024, with the validity period being lowered from 18 months to 12 months. These policy measures made more employers eligible for the Program and increased the number of temporary foreign workers they could hire
• To maintain client service in the face of record demand, in fiscal year (FY) 2022 to 2023, the TFW Program obtained additional funds and modernized its processing with several initiatives, including transitioning to a paperless application model, which made LMIA Online the default application method in April 2023 and reducing the Program's administrative burden (over 95% of applications are now submitted online)
• The Program has used workload management to leverage available internal capacity and has introduced a series of simplification measures to help expedite LMIA processing
• As a result of these measures, the network doubled its productivity in 2022 to 2023 and continues to make some gains this year. Year to date as of November 26, 2023, the Program has processed 13.8% more files than at the same point last year, which was a record processing year

Key messages

• The LMIA process is key to ensuring that hiring temporary foreign workers is in line with Canadian labour market needs. It establishes Program conditions that identify standards to ensure the protection of temporary foreign workers and prevents bad actors from accessing the Program
• The Program has seen a record number of LMIA applications since fiscal year 2022 to 2023, due to low unemployment, increased demand, and measures designed to address labour shortages
• By obtaining and allocating additional funds, and through ongoing modernization, streamlining, and workload management, the Program has increased its processing capacity and maintained client service

Issue

Canada's labour market faces the simultaneous challenge of labour shortages in some sectors and regions, and skills shortages in others.

Background

• Canada's rapidly aging population, global shifts toward greener, digital economies, and evolving skills requirements are long-term trends transforming its labour market and causing downward pressure on labour force growth, and skills gaps and mismatches
• Canada's efforts to bolster and support the workforce are based on a human capital approach, which seeks to maximize four sources of labour supply:
  • supporting the transition of new entrants to the labour market, principally youth
  • welcoming talent from around the world - particularly immigrants, international students, and temporary foreign workers
  • increasing the participation of groups underrepresented in the labour market (such as, women, persons with disabilities, Indigenous peoples, youth, racialized Canadians, etc.), and
  • helping individuals already working who need upskilling and reskilling to adapt and stay in the labour force longer
• Employment and Social Development Canada (ESDC) has a robust suite of programs and partnerships to help address labour shortages and skills gaps and ensure that Canada has an inclusive and agile workforce that can thrive in a rapidly evolving labour market. For instance:
  • the Youth Employment and Skills Strategy, as well as Student Work Placements and Canada Summer Jobs programs help young Canadians built job relevant skills and connect with employers. In 2022 to 2023, the Government created almost 190,000 opportunities through these investments, in particular for those from underrepresented groups. In 2023 to 2024 and 2024 to 2025, the Government will support 180,000 opportunities through these programs
  • the Canadian Apprenticeship Strategy provides funding to help pre-apprentices, apprentices, employers, unions, and other organizations and tradespeople participate in apprenticeships and succeed in skilled trades careers. The 2022 Fall Economic Statement announced a new sustainable jobs stream under the Union Training and Innovation Program (UTIP), a key pillar of the Canadian Apprenticeship Strategy, to support unions in leading the development of green skills training for workers in the trades. It is expected that an additional 20,000 apprentices and journeypersons could benefit from this investment
  • the Indigenous Skills and Employment Training Program funds a network of over 110 Indigenous service delivery organizations with over 650 points of service to provide Indigenous peoples with training and supports to improve skills and secure employment
  • the Sectoral Workforce Solutions Program funds projects that will help thousands of employers and connect Canadians with the training needed to access good jobs in sectors seeking skilled workers
  • the Community Workforce Development Program was also created to pilot and test innovative community-based approaches to connect employers and training providers as part of economic development efforts to upskill and reskill jobseekers to fill in-demand jobs in local communities
• Collectively, these programs are bolstering the labour market participation of underrepresented groups and helping young Canadians build job-relevant skills and connect with employers

Key facts

• In Canada, training is a shared responsibility between the federal and provincial/territorial governments. Labour market transfers are the Government of Canada's single largest investment in training. The transfers reach over 1 million Canadians across the country and deliver flexible, regionally adapted employment and training supports
• As of September 2023, there were 693,030 job vacancies nationally.^{Footnote 1} Sectors with the highest numbers of job vacancies include healthcare and social assistance, accommodation and food services, retail trade, and construction
• Budget 2023 and the recently released 2023 Fall Economic Statement announced investments that will help job seekers and workers obtain the skills and employment supports they need to thrive in a changing economy, including:
  • an additional $625 million in 2023 to 2024 in the labour market transfer agreements so that Canadians continue to have access to the supports they need to get their next job
  • $197.7 million in 2024 to 2025 to the Student Work Placement Program to continue creating quality work-integrated learning opportunities for students through partnerships between employers and post-secondary education institutions
  • extending temporary rules introduced in 2018 to provide up to five additional weeks of EI regular benefits - for a maximum of 45 weeks - to eligible seasonal workers in 13 economic regions until October 2024. The cost of this measure is estimated at $147 million over three years, starting in 2023 to 2024
  • the 2023 Fall Economic Statement proposed up to four additional weeks of EI regular benefits to eligible seasonal workers in 13 economic regions, building on similar announcements made in Budget 2023
• Going forward, ESDC will continue to leverage and realign existing tools, target new investments and work with all partners, including employers, unions, Indigenous communities, and P/Ts to help address current and future labour shortages, and tackle skills gaps and mismatches

Key messages

• Labour market pressures are affecting practically all sectors of the economy and most regions of the country
• As of September, there are approximately 693K job vacancies in Canada. Sectors with the highest job vacancies included health care and social assistance, accommodation and food services, retail trade, manufacturing, and construction
• As the economy evolves, addressing skills gaps, reducing skills mismatches and better utilizing available talent pools, will be critical to meet employment needs
• While market forces may reduce some labour market pressures in the short-term, the federal government has a role to play in supporting partners to address shortages, build our economy and prepare the workforce for the labour market of the future
• To this end, ESDC is positioned with tools and partnerships to support Canada's labour market as it evolves, in times of economic growth or downturn, and according to the diversity of contexts that exist across the country. The department also continues to roll out investments that will support workers and businesses and help build an agile and more inclusive workforce

Issue

Employment and Social Development Canada (ESDC) requested $19.8 million for new supplemental supports through the Community Workforce Development Program in the Supplementary Estimates (B) for fiscal year ending March 31, 2024.

Background

• The Fall Economic Statement 2022 announced $60 million over 3 years, starting in 2023 to 2024, to create new supplemental supports to existing federal and provincial or territorial programming
• This will contribute to advancing the Mandate Letter Commitment to support the future and livelihood of workers and their communities

Key facts

• The funding requested through the Supplementary Estimates B process, includes funding for seven FTEs and approximately $19 million in grants and contributions
• Efforts are underway by the Department to support the Government's implementation of this commitment

Key messages

• The Fall Economic Statement 2022 provided funding to help ensure Canadian workers can thrive in a changing global economy
• The $60 million announced over 3 years, starting in 2023 to 2024, to create new supplemental supports to existing federal and provincial or territorial programming will contribute to helping Canadian workers lead the way and thrive in good-paying jobs
• This will be essential to Canada's long-term prosperity
• More information on the implementation of this Fall Economic Statement 2022 commitment will be forthcoming in the coming months

Issue

The Government committed to permanently eliminating interest accrual on Canada Student Loans and Canada Apprentice Loans to help borrowers manage their repayment.

Background

• The Canada Student Financial Assistance Program provides need-based grants and interest-free loans to help students access post-secondary education and offers the Repayment Assistance Plan to borrowers with financial difficulty
• To help mitigate the economic impact of COVID-19 on Canada Student Loan and Canada Apprentice Loan borrowers, a moratorium on payments and interest accrual was implemented for 6 months (March 31 to September 30, 2020). An additional 2-year interest waiver was introduced on April 1, 2021
• The permanent elimination of interest accrual on Canada Student Loans and Canada Apprentice Loans took effect on April 1, 2023, fulfilling the Minister's mandate commitment to permanently eliminate interest accrual. Borrowers continue to be responsible for any previously accrued interest
• Loans are payment-free for borrowers enrolled in post-secondary studies or an apprenticeship program, and for 6 months after they leave their studies or apprenticeship

Key facts

• As part of the 2022 Fall Economic Statement, the Government announced an investment of $2.7 billion over 5 years and $556.3 million ongoing to permanently eliminate interest on Canada Student Loans and Canada Apprentice Loans
• The elimination of interest accrual will help 1.2 million student loan and apprentice loan borrowers by ensuring that the repayment of their loans remains affordable
• The elimination of interest will save an average student loan borrower $610 per year as of November 2023

Key messages

• Canadians are facing affordability pressures, including significant increases in the cost of living. Post-secondary education is a key driver of inclusive economic growth, and the Government is committed to ensuring that it remains accessible and affordable for all Canadians
• Loans are an important and cost-effective student support, and the Government is committed to ensuring that repayment remains manageable
• Interest on Canada Student Loans and Canada Apprentice Loans was permanently eliminated on April 1, 2023, building on the temporary interest waiver introduced during the COVID-19 pandemic. This will result in a savings for the average student loan borrower of $610 per year and will help 1.2 million student and apprentice loan borrowers

Issue

Post-secondary students are facing rising costs, and stakeholders have raised concerns about their ability to continue to afford post-secondary education (PSE).

Background

• The Canada Student Financial Assistance Program helps students from low- and middle-income families afford PSE through non-repayable grants, interest-free loans, and repayment assistance
• Canada Student Grants (CSGs) are need-based and targeted at students who are underrepresented in PSE. To help with rising costs, the Government doubled most CSGs over pre-pandemic amounts for 2 years (2020 to 2021 through 2022 to 2023) and increased CSGs by 40 percent over pre-pandemic amounts for the current school year. As a result, full-time students from low- and middle-income families can receive up to $4,200 in 2023 to 2024, and grants for part-time students, students with dependants, and students with disabilities are also temporarily higher
• To further help with upfront PSE affordability, the weekly loan limit for Canada Student Loans (CSLs) has been temporarily increased from $210 to $300 for the current school year. CSLs are now permanently interest-free, and to help borrowers in repayment, the Repayment Assistance Plan was also enhanced so that no borrower must repay a CSL until they are earning at least $42,720 per year, with higher thresholds for higher family sizes
• Although the Minister's most recent mandate letter does not mention CSGs, the temporary CSG increase reflects the 2019 mandate letter commitment to increase CSGs by up to an additional $1,200 per year (a 40 percent increase). The permanent elimination of interest accrual fulfilled a 2021 mandate letter commitment

Key facts

• Stakeholders representing students have been vocal in arguing that students are experiencing significant affordability pressures due to rising tuition and living costs, particularly as the price of necessities like transportation, food, and shelter have all increased
• CSGs provide significant support to low- and middle-income students to help with PSE and living costs. In 2021 to 2022, 53% of total federal student financial assistance was in the form of non-repayable grants. 544,000 students received $3.3 billion in CSGs. This included approximately:
  • 471,000 grants to full-time students from low- and middle-income families for a total of $2.3 billion dispersed
  • 91,100 grants for students with dependants for a total of $434.4 million dispersed
  • 60,200 grants for students with permanent disabilities for a total of $230.8 million dispersed
• To provide further help with the costs of attending PSE, 558,000 students received a total of $2.9 billion in CSLs in 2021 to 2022

Key messages

• Post-secondary education is a key driver of inclusive economic growth, and the Government is committed to ensuring that it remains accessible and affordable for all Canadians
• To help students afford post-secondary education, the Government has increased Canada Student Grants by 40 percent over pre-pandemic amounts for the current school year. This means full-time students from low- and middle-income families can receive up to $4,200, which they do not have to pay back
• Canada Student Loan debt has remained stable for over a decade due to significant increases in Canada Student Grant amounts
• To further help with affordability, the Government has increased the weekly limit for Canada Student Loans, which are now permanently interest-free, from $210 to $300
• As announced in Budget 2023, the Government is consulting with students on student financial assistance and will take their suggestions into consideration in ongoing efforts to keep post-secondary education accessible and affordable

Issue

Encouraging youth to choose the skilled trades as first-choice careers.

Background

• Employment and Social Development Canada's Canadian Apprenticeship Strategy supports a trades workforce that is skilled, inclusive, certified and productive. It aims to:
  • promote the skilled trades as a good career option
  • develop initiatives that help Canadians explore, prepare for, participate, and succeed in apprenticeship
  • facilitate the participation of employers and unions in apprenticeship, and
  • encourage innovative tools and approaches to better prepare pre-apprentices, apprentices and journeypersons for the jobs of tomorrow
• A number of measures funded under the Canadian Apprenticeship Strategy are aimed at attracting youth to apprenticeship and the skilled trades:
  • the Skilled Trades Awareness and Readiness Program supports projects that encourage Canadians, including groups that face barriers (for example, women, Indigenous people, newcomers to Canada, persons with disabilities and youth), to explore and prepare for careers in the skilled trades
  • Skills/Compétences Canada and its regional organizations work with employers, educators, labour groups and governments to promote skilled trades and technology careers to Canadian youth. Activities include skilled trades awareness programs such as in-school presentations and career fairs, annual regional skills competitions, and an annual National Competition that brings together students and apprentices to compete in 40 skills areas
  • the Apprenticeship Grants are intended to help apprentices progress and complete their training in Red Seal trades. Two types of grants are available: the Apprenticeship Incentive Grant, and the Apprenticeship Completion Grant
  • To complement these measures, the Government is investing in a national campaign for youth, their parents and caregivers, to promote the skilled trades as a first-choice career and to change the perception around careers in the trades
• This fall, interactive exhibits were held across Canada to help raise awareness of the value of a career in the skilled trades. The campaign has won multiple Davey Awards, the CCO Diamond Award of Communications Excellence, and has received positive feedback from industry stakeholders

Key facts

• Canada is facing significant labour shortages across the country, yet skilled trades continue to be perceived as a "second-choice" career by youth. Less than 1 in 10 15-year old students and only 2% of 15-year old female students definitely plan to pursue a trades career (Youth Attitudes towards Trades Survey, 2018)
• The Canadian Apprenticeship Strategy also includes measures to improve apprenticeship outcomes and to engage unions and employers in apprenticeship, such as the Canada Apprentice Loan, the Union Training and Innovation Program, the Apprenticeship Service, and the Women in the Skilled Trades initiative
• These measures are complemented by the Canada Revenue Agency's Apprenticeship Job Creation Tax Credit, Tradesperson's Tools Deduction, Tuition Tax Credit and Labour Mobility Deduction, and by Employment Insurance for Apprentices during in-class training

Key messages

• Our Government is a strong supporter of apprenticeship and the skilled trades that provide Canadians with rewarding careers
• That is why our Government invests nearly $1 billion annually in a broad array of apprenticeship supports through grants, loans, Employment Insurance benefits to eligible apprentices attending full-time technical training, tax credits, deductions, the Red Seal program, and project funding under the Canadian Apprenticeship Strategy
• These investments will encourage more young people to consider an exciting new career in the skilled trades, improve the quality of training in the skilled trades and help apprentices connect with job opportunities in the trades
• Furthermore, in the 2022 Fall Economic Statement, we announced investments in skills for a net-zero economy, including $250 million over 5 years to help ensure Canadian workers have the skills they need to succeed in a changing global economy. This includes a new sustainable jobs stream under the Union Training and Innovation Program to support unions in leading the development of green skills training for workers in the trades. It is expected that 20,000 apprentices and journeypersons will benefit from this investment

Issue

This note highlights finding on the known and forecasted impacts of digital technology and artificial intelligence (AI) on the Canadian labour market.

Background

• Advanced digital technologies, such as robotics, and AI (including generative AI), have impacted and will likely continue to impact the labour market by transforming tasks performed and skills needed for most occupations
• Generative AI as well as the other digital technologies are expected to increase productivity, lower costs, and give workers the opportunity to perform less dangerous and repetitive tasks, which can improve working conditions and job satisfaction
• However, workers are concerned that AI could lead to job displacement
• As with the previous radical technologies (for example, personal computers), AI is more likely to modify tasks performed by workers than to eliminate occupations and jobs
• Canadian labour market has adjusted well overall to past and significant technological changes. However, given the very recent emergence of generative AI, there is still high uncertainly on its impact on the Canadian labour market
• ESDC has a important suite of programs to help Canadians move through life's transitions, from school to work, from one job to another, from unemployment to employment

Key facts

• Canada plays a key role in the global generative AI ecosystem. According to Deloitte (report produced with the Canadian Institute for Advanced Research (CIFAR), Canada is home to 30 generative AI-focused companies, which have generated nearly $700 million in investment in 2023. Only the United States, the United Kingdom, and Israel have larger investments in AI
• However, AI adoption in Canada is not widespread. A report from the Toronto Metropolitan University, using data from Statistics Canada (Survey of Digital Technology and Internet Usage) show that only 4% of Canadian firms have incorporated AI into their workplace

Key messages and Q/As

Are job losses or job creation to be expected?

• So far, there is no evidence of widespread job losses due to digital technology adoption, including AI. However, AI adoption in Canadian enterprises is relatively low and the technology continues to evolve rapidly, which means that the impact on employment could still shift in the future
• Technological change, rather than creating or eliminating jobs on a large scale, has led to job transformation as witnessed by a gradual shift away from routine/manual tasks, and towards non-routine/cognitive tasks over the last 30 years
• The OECD found little evidence of significant job loss due to digital technologies and automation. Employment in sectors that were most at risk of automation grew by 6% across OECD countries over the period of 2012 to 2019, compared to 18% in the occupations least at risk
• Regarding AI, the OECD found that around 80% of workers in the manufacturing and financial sectors responded that AI improved their work, but approximately 60% were concerned about job losses in the next 10 years
• White-collar occupations (for example, business and science professionals, lawyers, etc.) are more likely to be exposed to generative AI given the potential of AI technology to perform tasks (such as, deductive reasoning, information ordering) that used to be immune from past technology advancement and automation (for example, blue collars occupations with technology such as self-checkouts; robotic assembly lines)
• ESDC's skills and employment programming is designed to adapt to shifts in the economy, including technological change, and to deliver the skills and employment supports Canadians need to succeed in an evolving labour market. For example, a number of the Sectoral Workforce Solutions Program's projects address emerging AI and automation technologies across industrial sectors, preparing workers for the jobs of the future. In addition, between 2018 to 2019 and 2020 to 2021, the Student Work Placement Program supported 500 opportunities in the AI field through targeted funding
• ESDC also has programs that can be deployed quickly to assist displaced workers. These include rapid response efforts in the event of mass lay-offs, lay-off prevention through the Work-Sharing program; assistance to displaced workers through Employment Insurance income support benefits; and training and re-employment transition supports offered through Labour Market Agreements with the Provinces and Territories (such as, job counselling, skills assessments, job search assistance, and training)

What ESDC does to assess AI's impact on the labour market?

• ESDC, on behalf of the Government of Canada, has provided funding to key research and publications by the Organization for Economic Co-operation and Development (OECD) about the implications of AI in the labour market across advanced economies, including Canada
• To develop a deeper understanding of impacts of AI on different areas (including labour market), Policy Horizons Canada, the Government of Canada's centre of excellence in foresight and part of the ESDC portfolio is also examining this issue. The Future Skills Centre, for which ESDC plays a secretariat role, is also examining the role of AI in the labour market and the implications on the demand for skills
• Finally, ESDC is working jointly with other departments (such as, ISED, Finance Canada, ECCC) to assess how mega-trends such as AI and a carbon-neutral economy on the Canadian labour market

Issue

• With the rapid advancement of Artificial Intelligence technologies, questions are anticipated as to how AI is being used as part of the administration of Employment and Social Development Canada's programs and services

Background

• Question: Does ESDC use Artificial Intelligence to design programs or policy?
  • Answer: ESDC does not use AI to design programs or policy currently. However, a pilot project has been conducted, to analyse the efficiency of existing programs and AI and advanced analytics technologies have also been used to assist with internal processes.^{Footnote 2} In each case, ESDC relied on the TBS directive on Automated Decision-making to guide the use of AI based systems. A list of internal applications using AI at ESDC is provided below in the "Key facts" section of this document
• Question: Does ESDC use Artificial Intelligence to serve the public?
  • Answer: ESDC does not use AI to serve the public currently. Prior to using AI to serve the public, ESDC will need to establish an AI adoption strategy that will include consideration of impacts on our workforce and will also ensure AI is introduced in an ethical, safe, secure, fair manner that will safeguard privacy and drive value in delivery of services to Canadian Citizens

Key facts

• ESDC uses the TBS directive on Automated Decision Making to assess the use of AI enabled processes and applications.
• Two AI-enabled systems have been used internally:
  • Record of Employment- Comments (ROE-C) triage tool
  • Reducing Employment Insurance Backlog: A Machine Learning approach Pre-ERB EI Recalculation Outcome Prediction Machine Learning (ML) model.

Key messages

• As AI technologies become ubiquitous across various industries, including government services, it is critical for the Department of Employment and Social Development Canada (ESDC) to embrace these innovations responsibly. This includes investing in change management and operational readiness to harness the potential benefits while mitigating risks
• Opportunities exist to leverage AI to advance ESDC's mission of building a stronger and more inclusive Canada while ensuring fairness, security, privacy, and operational readiness, to become a leader in ethical, responsible AI adoption that serves the interests of Canadians, and ESDC will need to develop an AI Adoption Strategy with the following Strategic Goals:
  • ethical AI Governance: Establish robust governance frameworks and guidelines to ensure ethical and responsible AI adoption
  • operational excellence: Prepare the organization for AI adoption through operational readiness and effective change management
  • value-driven AI: Deliver AI initiatives that drive measurable business value and enhance citizen service

AI and advanced analytics at ESDC - Informed, proactive, responsible, ethical

Issue

Why does Employment and Social Development Canada (ESDC) require additional authorities in the Supplementary Estimates (B) for fiscal year ending March 31, 2024?

Key facts

• Supplementary Estimates seek parliamentary approval for changes to departmental spending plans for the current fiscal year
• ESDC is requesting a total of $409.7 million in additional authorities through the Supplementary Estimates (B)
• An increase of $106.5 million in Vote 1 Operating expenditure
• An increase of $295.7 million in Vote 5 Grants and Contributions
• An increase of $7.5 million in Statutory items

Response

ESDC is requesting adjustments for:

Background

Train 5,000 to 50,000 new Personal Support Workers

Develop and implement a plan to modernize the EI system for the 21st Century

Implement a new EI benefit for self-employed Canadians

Implement a new EI benefit for adoptive parents

Implement a new Career Insurance Benefit for long-tenured workers

Launch an employment strategy for Canadians with disabilities

Increase the repayment assistance threshold to $50,000 for Canada Student Loan borrowers who are single and make appropriate adjustments to the thresholds for other family sizes

Allow new parents to pause repayment of their federal student loans until their youngest child reaches the age of 5

Improve access to health care and social services in rural communities through amendments to the Canada Student Loans Forgiveness program for medical practitioners working in rural or remote areas

Supported by the Minister of Energy and Natural Resources, launch a Clean Jobs Training Centre to help workers across sectors upgrade or gain new skills

Redesign and implement the Canada Training Benefit

Address gaps in training and upskilling to ensure Canadians can take advantage of sustainable battery industry opportunities

Double the Union Training and Innovation Program and target greater participation from more diverse populations

Supported by the Minister of Immigration, Refugees and Citizenship Canada, establish a Trusted Employer system for Canadian companies hiring temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, continue to work with provinces, territories and regulatory bodies to impr.ove foreign credential recognition

Supported by the Minister of Immigration, Refugees and Citizenship Canada, implement sector-based work permits to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, strengthen the inspections regime to ensure the health and safety of temporary foreign workers

Supported by the Minister of Immigration, Refugees and Citizenship Canada, simplify permit renewals for the Temporary Foreign Workers Program, uphold the two-week processing time and establish an employer hotline

Supporting the Minister of Agriculture and Agri-Food Canada, develop a sector-specific Agricultural Labour Strategy to address labour shortages

Supporting the Minister of Natural Resources Canada, move forward with legislation and comprehensive action to achieve a Just Transition

Supporting the Minister of Women and Gender Equality and Youth, carry out the evaluation process of GBA Plus to enhance its framing and parameters

Met Commitments