Spending and human resources

From: Employment and Social Development Canada

Official title: Employment and Social development Canada, 2019–20 Departmental Plan

Planned Spending

**Financial Resources (dollars)**
	2019–20 Main Estimates*	2019–20 Planned Spending*	2020–21 Planned Spending	2021–22 Planned Spending
Planned Gross Spending	66,108,023,430	138,293,166,491	144,912,940,887	152,609,135,216
Less: Planned Spending in Specified Purpose Accounts	0	72,185,143,061	76,243,546,104	80,269,600,068
Less: Planned Revenues netted against expenditures	1,671,438,486	1,671,438,486	1,638,435,560	1,634,949,143
Planned Net Spending	64,436,584,944	64,436,584,944	67,030,959,223	70,704,586,005

Note: Please refer to ESDC's Financial Framework for a complete description of the departmental financial profile, including an explanation of gross planned spending.

* Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

For 2019–20, the Department has gross planned expenditures on programs and services of $138.3 billion. Of that amount, $131.0 billion directly benefit Canadians through statutory transfer payment programs such as Employment Insurance, the Canada Pension Plan, Old Age Security, the Canada Student Loans Program and Canada Apprentice Loans, the Canada Education Savings Program and the Canada Disability Savings Program.

Chart of insert chart title: description follows — **Consolidated Total: $138,293.2 million**

Details	2019–20 Planned spending
Old Age Security/Guaranteed Income Supplement/Allowance	56,204.4	40.6%
Canada Pension Plan	49,722.4	36.0%
Employment Insurance	20,756.4	15.0%
Canada Student Loans / Other statutory payments	4,284.8	3.1%
Gross operating expenditures	2,906.0	2.1%
Voted grants & contributions	2,728.8	2.0%
Other - Workers' compensation and EI/CPP charges	1,690.4	1.2%
Consolidated total	138,293.2	100.0%

**Employment And Social Development Canada — Gross Expenditures ($ millions)**
Budgetary
Net Operating Costs		1,234.6
Add Recoveries in relation to:
Canada Pension Plan	266.6
Employment Insurance Operating Account	1,279.2
Workers' Compensation	124.7
Government Employee Compensation Act	0.9	1,671.4
Gross Operating Costs		2,906.0
Voted Grants and Contributions		2,728.8
Total Gross Expenditures		5,634.8
Other- Workers' Compensation and
EI/CPP Charges and Recoveries		1,690.4

*This amount includes $702.8 million in net voted operating expenditures, $214.7 million in contributions to employee benefit plans, $194.5 million for delivery service to the public on behalf of partners under the Department of Employment and Social Development Act, $78.2 million in statutory administrative fees related to Canada Student Loans and Apprentice Loans, $44.0 million in net expenditures for Federal Workers' Compensation and $0.4 million for other items. However, it does not include 2019 Budget Implementation measures included in the 2019–20 Main Estimates.

**Statutory transfer payments ($ millions)**
Grants and Contributions:
Old Age Security		42,754.3
Guaranteed Income Supplement		12,895.0
Allowance		555.1
Other Statutory Payments:
Canada Student Loans Program
and Canada Apprentice Loans	2,311.9
Canada Education Savings Grant	955.0
Canada Disability Savings Program	767.3
Canada Learning Bond	185.0
Wage Earner Protection Program	49.3
Universal Child Care Benefit	0.3	4,268.8
Sub-Total		60,473.2
Canada Pension Plan Benefits		49,722.4
Employment Insurance Benefits
Part I	18,357.0
Part II	2,399.4	20,756.4
Other Specified Purpose Accounts		16.0**
Total Statutory Transfer Payments		130,968.0

**This amount includes payments related to the Government Annuities Account and the Civil Service Insurance Fund.

**2019–20 Planned Gross Spending Summary (dollars)**
Core Responsibilities and Internal Services	Planned gross spending*	Less: Planned gross spending in specified purpose accounts	Less: Planned revenues netted against expenditures	Planned net spending
Core Responsibility 1: Social Development	759,435,703	0	0	759,435,703
Core Responsibility 2: Pensions and Benefits	107,075,411,089	49,722,402,627	183,696,846	57,169,311,616
Core Responsibility 3: Learning, Skills Development and Employment	27,402,184,747	20,772,367,777	805,565,446	5,824,251,524
Core Responsibility 4: Working Conditions and Workplace Relations	298,909,369	0	125,900,000	173,009,369
Core Responsibility 5: Information Delivery and Services for Other Departments	225,074,106	0	0	225,074,106
Subtotal	135,761,015,014	70,494,770,404	1,115,162,292	64,151,082,318
Internal Services	841,778,820	0	556,276,194	285,502,626
Other Costs**	1,690,372,657	1,690,372,657	0	0
Total	138,293,166,491	72,185,143,061	1,671,438,486	64,436,584,944

Notes: Refer to the Department's Financial Framework for a complete description of the departmental financial profile, including explanation of gross planned spending.

* Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

** Other costs include administrative costs of other government departments charged to the Employment Insurance Operating Account and the Canada Pension Plan. They also include Employment Insurance doubtful accounts and recoveries from other government departments.

ESDC's Financial Framework

The Department has a complex financial structure, with various funding mechanisms used to deliver its mandate. The Department is financed by four main sources of funds:

Appropriated funds from the Consolidated Revenue Fund (CRF);
The Employment Insurance Operating Account;
The Canada Pension Plan; and
Crown corporations and other government departments for the administration of the Government Employee Compensation Act.

Planned expenditures related to the Employment Insurance Operating Account and the Canada Pension Plan, and planned expenditures that are recovered from Crown corporations and other government departments for the administration of the Government Employee Compensation Act, are excluded from the Department's Main and Supplementary Estimates and net planned spending because they are not voted by Parliament.

Employment Insurance and Canada Pension Plan benefits and related administrative costs are charged against revenues earmarked in separate specified purpose accounts. The Employment Insurance program provides financial support and other assistance to eligible workers and is entirely financed by contributions from employees and employers. The Canada Pension Plan is an income security plan funded by the contributions of employees, employers, and self-employed persons and by the revenue earned on Plan investments. It provides partial income protection in the case of the retirement, disability or death of a contributor to virtually all employed and self-employed persons in Canada, excluding Quebec which operates its own comprehensive pension plan, the Quebec Pension Plan. Administrative costs incurred by the Department in the delivery of programs related to Employment Insurance and Canada Pension Plan are charged to their respective specified purpose accounts and reported as revenues netted against expenditures under the Department.

The Department of Employment and Social Development Act was amended in June 2018 to broaden the Department's mandate to include service delivery to the public with a view to improving services to Canadians. The Department now has the legislative authority to deliver services to the public for partners on a cost-recovery basis as well as to deliver select services for the Government of Canada. As a result, costs related to the delivery of programs and services for other government departments, such as for passport services and were reported in previous years as revenues netted against the Department's expenditures, will now be reported under a new statutory authority.

In addition, departmental costs related to the delivery of programs and services on behalf of other government departments for the administration of the Government Employee Compensation Act is also reported as revenues netted against the Department's expenditures.

These items are included in the Department's gross planned spending to provide readers with the full cost to the government of the Department's programs and services and present a complete picture of the resources managed by the Department to deliver its mandate, even if these expenditures are ultimately recorded under separate legal entities.

The sources of funds, including specified purpose accounts, for each of the Department's core responsibilities are as follows:

Core Responsibility 1: Social Development

Consolidated Revenue Fund

Core Responsibility 2: Pensions and Benefits

Consolidated Revenue Fund; and
Canada Pension Plan (in gross planned spending only for Canada Pension Plan benefits and related administrative costs).

Core Responsibility 3: Learning, Skills Development and Employment

Consolidated Revenue Fund; and
Employment Insurance Operating Account (in gross planned spending only for Employment Insurance benefits and related administrative costs).

Core Responsibility 4: Working Conditions and Workplace Relations

Consolidated Revenue Fund; and
Crown corporation and other departments (in gross planned spending only for the administration of the Government Employee Compensation Act).

Core Responsibility 5: Information Delivery and Services for Other Departments

Consolidated Revenue Fund

Internal Services

Consolidated Revenue Fund;
Canada Pension Plan (in gross planned spending only for Canada Pension Plan administrative costs); and
Employment Insurance Operating Account (in gross planned spending only for Employment Insurance administrative costs).

Financial Highlights

The overall gross increase in spending of $14.3 billion from fiscal year 2019-20 to fiscal year 2021-22 can mainly be explained by increases to Canada Pension Plan benefits, Old Age Security payments and Employment Insurance benefits.

Planned Canada Pension Plan benefits are at $55.6 billion in fiscal year 2021-22, an increase of $5.9 billion from the 2019-20 planned spending of $49.7 billion, mainly attributed to wage and inflation assumptions. Old Age Security benefits, including Guaranteed Income Supplement and Allowances, are expected to reach $63.3 billion in fiscal year 2021-22, which represents an increase of $7.1 billion from the 2019-20 planned spending of $56.2 billion. Annual increases are associated with a higher number of beneficiaries due to the aging population and planned increases in the average monthly benefits.

Employment Insurance benefits fluctuate every year mainly due to changes in the average unemployment rate. Employment Insurance benefits are expected to reach $23.0 billion in fiscal year 2021-22, representing an increase of $2.2 billion from the 2019-20 planned expenditures of $20.8 billion. More specifically, Employment Insurance benefits are expected to increase by $1.1 billion (6.3 percent) from the 2018-19 forecasted spending to the 2019-20 planned spending due to expected increase in both regular and special benefits. The average weekly regular benefit rate and the number of regular benefit beneficiaries will contribute to the increase. In addition, the majority of the increase in special benefits expenditure reflects Budget 2018 changes such as the new five-week EI parental sharing benefit beginning in March 2019.

Those increases are offset by a decrease of $900 million in voted grants and contributions mainly explained by the sunsetting of funding for Early Learning and Child Care, Workforce Development Agreements and the Youth Employment Strategy.

**Budgetary planning summary for Core Responsibilities and Internal Services – Gross (dollars)**
Core Responsibilities and Internal Services	2016–17* Expenditures	2017–18* Expenditures	2018–19 Forecast spending	2019–20 Main Estimates**	2019–20 Planned Spending**
Core Responsibility 1: Social Development	2,239,757,375	695,357,869	862,346,232	759,435,703	759,435,703	476,543,837	500,264,555
Core Responsibility 2: Pensions and Benefits	91,631,984,510	96,051,202,359	101,906,202,872	57,353,008,462	107,075,411,089	113,530,640,317	120,171,303,549
Core Responsibility 3: Learning, Skills Development and Employment	26,317,816,518	26,086,783,929	26,611,889,819	6,629,816,970	27,402,184,747	27,866,496,714	28,900,542,309
Core Responsibility 4: Working Conditions and Workplace Relations	253,469,223	262,029,434	301,585,689	298,909,369	298,909,369	297,274,487	296,871,174
Core Responsibility 5: Information Delivery and Services for Other Departments	185,087,756	228,253,902	263,531,020	225,074,106	225,074,106	224,516,425	221,729,838
Subtotal	120,628,115,382	123,323,627,493	129,945,555,632	65,266,244,610	135,761,015,014	142,395,471,780	150,090,711,425
Internal Services	876,667,337	925,244,173	889,381,271	841,778,820	841,778,820	828,389,600	829,478,477
Other Costs***	1,250,037,361	1,380,064,755	1,468,241,432	0	1,690,372,657	1,689,079,507	1,688,945,314
Revenues netted against expenditures	0	0	0	(1,671,438,486)	0	0	0
Total Gross Planned Spending	122,754,820,080	125,628,936,421	132,303,178,335	64,436,584,944	138,293,166,491	144,912,940,887	152,609,135,216

Notes:

Refer to the Department's Financial Framework for a complete description of the departmental financial profile, including explanation of gross planned spending.

* For comparative purposes, 2016-17 and 2017-18 actual expenditures have been restated according to the new Departmental Results Framework approved in 2018-19.

** Amounts do not reflect 2019 Budget Implementation measures included in ESDC's 2019-20 Main Estimates.

*** Other costs include administrative costs of other government departments charged to the Employment Insurance Operating Account and the Canada Pension Plan. They also include Employment Insurance doubtful accounts and recoveries from other government departments.

**Budgetary planning summary for Core Responsibilities and Internal Services — Net (dollars)**
Core Responsibilities and Internal Services	2016–17* Expenditures	2017–18* Expenditures	2018–19 Forecast spending	2019–20 Main Estimates**	2019–20 Planned Spending**	2020–21 Planned Spending	2021–22 Planned Spending
Core Responsibility 1: Social Development	2,239,757,375	695,357,869	862,346,232	759,435,703	759,435,703	476,543,837	500,264,555
Core Responsibility 2: Pensions and Benefits	48,917,558,758	51,362,618,315	54,586,997,358	57,169,311,616	57,169,311,616	60,730,874,424	64,432,934,599
Core Responsibility 3: Learning, Skills Development and Employment	4,689,694,911	5,416,434,813	5,976,446,602	5,824,251,524	5,824,251,524	5,152,876,232	5,102,586,976
Core Responsibility 4: Working Conditions and Workplace Relations	127,697,824	126,251,634	175,685,689	173,009,369	173,009,369	171,374,487	170,971,174
Core Responsibility 5: Information Delivery and Services for Other Departments	68,508,229	78,751,918	75,310,073	225,074,106	225,074,106	224,516,425	221,729,838
Subtotal	56,043,217,097	57,679,414,549	61,676,785,954	64,151,082,318	64,151,082,318	66,756,185,405	70,428,487,142
Internal Services	295,748,607	291,833,073	273,485,297	285,502,626	285,502,626	274,773,818	276,098,863
Total Net Planned Spending	56,338,965,704	57,971,247,622	61,950,271,251	64,436,584,944	64,436,584,944	67,030,959,223	70,704,586,005

Notes: Refer to the Department's Financial Framework for a complete description of the departmental financial profile.

*For comparative purposes, 2016–17 and 2017–18 actual expenditures have been restated according to the new Departmental Results Framework approved in 2018–19.

** Amounts do not reflect 2019 Budget Implementation measures included in ESDC’s 2019–20 Main Estimates.

Image of Departmental Spending Trend Graph: description follows — Departmental Spending Trend Graph

**Departmental Spending Trend: Total Net Consolidated Expenditures (dollars)**
	Actual Spending	Forecast	Planned Spending
	2016–17	2017–18	2018–19	2019–20*	2020–21	2021–22
Statutory	53,599,988,764	54,607,489,480	58,372,260,271	61,004,972,545	64,647,390,537	68,304,275,565
Voted**	2,738,976,940	3,363,758,142	3,578,010,980	3,431,612,399	2,383,568,686	2,400,310,440
Total	56,338,965,704	57,971,247,622	61,950,271,251	64,436,584,944	67,030,959,223	70,704,586,005

Planned Human Resources

**Human resources planning summary for Core Responsibilities and Internal Services (full-time equivalents)**
Core responsibilities and Internal Services	2016–17 Actual Spending		2017–18 Actual Spending	2018–19 Forecast	2019–20 Planned Spending	2020–21 Planned Spending
Core Responsibility 1: Social Development	309		349	460	526	520	516
Core Responsibility 2: Pensions and Benefits	4,801		5,076	5,066	3,902	3,547	3,547
Core Responsibility 3: Learning, Skills Development and Employment	10,046		10,600	10,444	9,066	8,853	8,772
Core Responsibility 4: Working Conditions and Workplace Relations	647	651		698	691	683	683
Core Responsibility 5: Information Delivery and Services for Other Departments	2,179	2,316		2,814	2,507	2,508	2,487
Subtotal	17,982	18,992		19,482	16,692	16,111	16,005
Internal Services	3,843	4,114		4,503	4,462	4,404	4,397
Total	21,825	23,106		23,985	21,154	20,515	20,402

The overall decrease of 752 full-time equivalents from fiscal year 2019–20 to fiscal year 2021–22 is mainly explained by the following items:

Social Development: the decrease of 10 full-time equivalents is due to the decrease of temporary funding provided for the Early Learning and Child Care Strategy;
Pensions and Benefits: the decrease of 355 full-time equivalents is a result of a reduction in temporary resources provided to address Old Age Security and Canada Pension Plan workload issues;
Learning, Skills Development and Employment: the reduction of 294 full-time equivalents is mainly related to the decrease of temporary funding provided for the Youth Employment Strategy, the Temporary Foreign Worker Program, Canada Service Corps and for enhanced Indigenous community outreach activities;
Working Conditions and Workplace Relations: the decrease of 8 full-time equivalents is a result of the ending of temporary resources to address the administration of the pay transparency measure announced in Budget 2018 to provide online information on the pay practices of federally regulated employers;
Information Delivery and Services to Other Departments: the decrease of 20 full-time equivalents is due to a decrease in temporary resources provided to enhance Indigenous community outreach activities; and

Internal Services: the decrease of 65 full-time equivalents is mainly a result of the decrease of temporary resources associated with Old Age Security and Canada Pension Plan workload issues, the Old Age Security Service Improvement Strategy and the Youth Employment Strategy.

Estimates by Vote

Information on Employment and Social Development Canada’s organizational appropriations is available in the 2019–20 Main Estimatesⁱ.

Consolidated Future-Oriented Condensed Statement of Operations

The Consolidated Future-Oriented Condensed Statement of Operations provides a general overview of the Department’s operations. The forecast of financial information on expenses and revenues is prepared on an accrual accounting basis to strengthen accountability and to improve transparency and financial management.

Because the Consolidated Future-Oriented Condensed Statement of Operations is prepared on an accrual accounting basis, and the forecast and planned spending amounts presented in other sections of the Departmental Plan are prepared on an expenditure basis, amounts may differ.

The Consolidated Future-Oriented Condensed Statement of Operations includes the transactions of the Employment Insurance Operating Account, a consolidated specified purpose account which includes revenues credited and expenses charged under the Employment Insurance Act. The accounts of the Employment Insurance Operating Account have been consolidated with those of the Department and all inter-organizational balances and transactions have been eliminated. However, the Canada Pension Plan is excluded from the Department's reporting entity because changes to the Canada Pension Plan require the agreement of two-thirds of participating provinces and it is therefore not controlled by the Government.

A more detailed Consolidated Future-Oriented Condensed Statement of Operations and associated notes, including a reconciliation of the net cost of operations to the requested authorities, are available on the Department’s website.

**Consolidated Future-Oriented Condensed Statement of Operations for the year ending March 31, 2020 (dollars)**
Financial Information	2018–19 Forecast Results	2019–20 Planned Results	Difference (2019–20 Planned Results minus 2018–19 Forecast Results)
Total Expenses	84,517,487,028	87,760,048,887	3,242,561,859
Total Revenues	23,037,454,904	23,184,304,891	146,849,987
Net cost of operations	61,480,032,124	64,575,743,996	3,095,711,872

The increase of $3,095.7 million in the 2019–20 planned results of the net cost of operations, when compared to the 2018–19 forecast results is due to the following:

For expenses, the increase of $3,242.6 million is mainly attributable to:

An increase of $2,509.7 million in Pensions and Benefits expenses, mainly due to the projected increase in the eligible population of the Old Age Security and Guaranteed Income Supplement benefits.
An increase of $952.4 million in Learning, Skills Development and Employment expenses, mainly due to an expected increase in the average weekly regular benefit rate and the implementation in March 2019 of the new five-week Employment Insurance parental sharing benefit announced in Budget 2018.

For revenues, the increase of $146.8 million is mainly attributable to:

An increase of $272.5 million in Employment Insurance revenues, mainly due to the projected increase in the total insurable earnings resulting from the expected growth in employment and in the maximum insurable earnings.

Statutory Annual Reports

Employment Insurance Part II

Part II of the Employment Insurance Act requires the federal government to work in concert with provinces and territories to put in place Employment Benefits and Support Measures or similar programs and services to help Canadians integrate into the labour market.

Since provinces and territories are best placed to determine the mix of employment programming best suited to meet their local and regional labour market needs, Employment Benefits and Support Measures are delivered under bilateral transfer agreements between Canada and the provinces and territories called the Labour Market Development Agreements.

Employment Benefits and Support Measures are comprised of five employment benefit programs — Skills Development, Targeted Wage Subsidies, Self-Employment, Job Creation Partnerships, and Targeted Earnings Supplements — and three support measures — Employment Assistance Services, Labour Market Partnerships, which includes Employer Sponsored Training, and Research and Innovation.

More detailed information on Employment Insurance Part II is available on the Department’s website.

Financial Data

For fiscal year 2019–20, the total Employment Insurance Part II expenditure authority of $2.424 billion represents 0.38% of the total estimated insurable earnings figure of $646.1 billion. This represents a lower level of expenditures than the 0.8% ceiling imposed under the Employment Insurance Act, which is estimated at $5.169 billion in 2019–20. The amount of reinvestment reached maturity at $800 million in 2000–01.

**2019–20 Employment Insurance Plan**
($)	Base	Re-Investment	Budget 2017*	Total Plan
Newfoundland and Labrador	53,614,954	73,086,000	9,941,402	136,642,356
Nova Scotia	47,148,878	30,348,000	10,346,177	87,843,055
New Brunswick	46,749,407	42,116,000	9,968,437	98,833,844
Prince Edward Island	13,907,680	10,022,000	2,425,139	26,354,819
Quebec	315,721,746	248,071,000	65,578,583	629,371,329
Ontario	385,307,735	184,097,000	81,072,009	650,476,744
Manitoba	32,846,333	10,233,000	7,725,370	50,804,703
Saskatchewan	26,942,153	9,862,000	7,202,748	44,006,901
Alberta	99,026,001	35,921,000	29,685,602	164,632,603
Nunavut	1,755,742	954,000	302,713	3,012,455
Northwest Territories	1,357,524	1,552,000	339,815	3,249,339
British Columbia	123,790,390	151,732,000	25,184,810	300,707,200
Yukon	1,831,457	2,006,000	227,195	4,064,652
	1,150,000,000	800,000,000	250,000,000	2,200,000,000
Labour Market Development Agreements Targeted Funding – Steel and Aluminum			25,000,000	25,000,000
Labour Market Development Agreements Targeted Funding - Seasonal			20,500,000	20,500,000
Pan-Canadian Responsibilities**	153,879,877			153,879,877
Funds available for Employment Benefits and Support Measures	1,303,879,877	800,000,000	295,500,000	2,399,379,877

Notes:

*Additional Labour Market Development Agreements announced in Budget 2017 of $250 million for 2019-20.

**The amount for Pan-Canadian Responsibilities includes the ongoing envelope of $150,867,575 minus the permanent conversion to operating of $24,317,698. This also includes $27.33 million for the Indigenous Skills and Employment Training program and a temporary conversion (for 2019–20) from the Employment Insurance Part II Pan-Canadian program funds to operating of $5.518 million for the Education and Labour Market Longitudinal Platform.

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Date modified:: 2019-05-16

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