Evaluation of the Canada-Manitoba Labour Market Development Agreement

Effectiveness and efficiency of EBSMs

Main Findings

Overall, incremental impacts demonstrate that participation in SD and EAS improves labour market attachment and reduces dependence on government income supports compared to similar non-participants. These results are consistent with those found for earlier cohorts of participants as part of the previous evaluation cycle. A subgroup analyses shows that with some exceptions, SD and EAS interventions also improve the labour market attachment and reduce the dependence on income support for most subgroups of participants. A regional analysis of incremental impacts for SD found that participants increase their labour market attachment and reduce their dependence on government income support both in Winnipeg and outside of Winnipeg. For most interventions, the social benefits of participating in EBSMs exceed the initial investment costs over time.

Chart i presents the incremental impacts on the incidence of employment for active and former claimants by EBSM. The estimates can be interpreted as a change in the probability of being employed following participation. For example, participation in SD increases the probability of being employed by 9.4 percentage points for active EI claimants relative to non-participants.

Text description - Chart i

Employment benefit or Support measure	Incidence of employment for active claimants (percentage points)	Incidence of employment for former claimants (percentage points)
Skills Development	9.4	8
Employment Assistance Services	3.2	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Chart ii presents the annual average increase in employment earnings for active and former claimants. Overall, active and former claimants increase their earnings over the post-participation period.

Text description - Chart ii

Employment benefit or Support measure	Employment earnings of active claimants	Employment earnings of former claimants
Skills Development	$3,998	$4,391
Employment Assistance Services	$821	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

As shown in Chart iii, overall, active and former claimants reduce their dependence on government income supports over the post-participation period.^{Footnote 6}

Text description - Chart iii

Employment benefit or Support measure	Dependence on government income support for active claimants (percentage points)	Dependence on government income support for former claimants (percentage points)
Skills Development	-4.8	-2.7
Employment Assistance Services	-1.3	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Table ii presents the number of years required for the social benefits to exceed program costs. Social benefits to participation exceed initial investment costs over a period ranging from 3.5 to 4.9 years.

Table ii. Number of years for the benefits to exceed program costs

Indicator	SD active claimants (10 years post-program)	EAS active claimants (5 years post-program)	SD former claimants (10 years post-program)
Payback period (years after end of participation)	4.5	4.9	3.5

Outcomes of EBSMs

Incremental impacts for Wage Subsidy and Employment Partnerships are not produced due to the small samples or due to the models used to estimate the incremental impacts not balancing. Having balanced models is an essential condition to ensure that participants and non-participants are similar. However, outcomes can still be examined for participants to describe the average changes that occur from before to after program participation.

Outcomes for both active and former claimant participants in Wage Subsidy and Employment Partnerships show increases in employment earnings from 5 years before program participation to 4 years after participation. Moreover, decreases are found in receipt of EI benefits and dependence on government income supports after participation.

Supplemental studies

A series of supplemental studies addresses information gaps previously identified in LMDA evaluations regarding the design and delivery, challenges and lessons learned for Self-Employment, Employment Partnership, Labour Market Partnerships, and Research and Innovation.

Most of these interventions are not suitable for incremental impact analysis. For example, Labour Market Partnerships, and Research and Innovation do not collect participant information. As a result, a mix of qualitative and quantitative methods, questions regarding design and delivery, lessons learned, and challenges are examined in detail. Key considerations are included with each study to help guide future program and policy discussions.

Sources of data and information

The analysis takes into account all the quantifiable costs and benefits directly related to EBSM delivery and participation that can be measured given the information available. The analysis is comprehensive in that it accounts for the vast majority of possible direct costs and benefits.

However, the analysis does not account for all costs and benefits. For example, there are factors that can lead to an understatement of the benefits (for example, positive spillovers to other family members) and other factors that can lead to an overstatement of the benefits (for example, effects on skill prices or displacement).

This study relied on integrated data from the EI Part I and II Databank and Income Tax records from the Canada Revenue Agency. Information about earnings, use of EI, and use of SA was taken from the study of incremental impacts.^{Footnote 25} The program costs were calculated using information available in the EI Monitoring and Assessment Reports. Other costs and benefits are assessed using integrated administrative data from the EI Part I and II databank and the Canada Revenue Agency.

Relative to the previous cycle of evaluation, the methodology has been extended to incorporate one of the indirect health benefits associated with increased labour market attachment. In particular, the methodology includes an estimate of the change in public health care cost due to the decline in health care utilization resulting from program participation.

Data on average public health care costs by income quintiles are taken from the report Lifetime Distributional Effects of Publicly Financed Health Care in Canada (2013) by the Canadian Institute for Health Information.

Incremental impacts measured over the second year of participation and up to 5 post-program years are discounted by 3% to bring them to a common base with the program cost and benefits incurred in the program start year. This 3% rate accounts for the interest the government could have collected if the funds used to pay for the program had been invested. Incremental impacts are estimated using 2010 constant dollars and this accounts for inflation.

Costs and benefits accounted for in the calculations

Program cost: cost incurred by the government for delivering the program (that is, administration and direct program costs calculated from data reported in the EI Monitoring and Assessment Reports).

Marginal social cost of public funds: loss incurred by society when raising additional revenues, such as taxes to fund government spending. The value is estimated as 20% the program cost, sales taxes, income taxes, impacts on EI and impacts on SA paid or collected by the government.

Foregone earnings: estimated net impacts on participants’ earnings during the participation period. During labour market program participation, some individuals have lower earnings than what they would have received if they had not participated.

Employment earnings: incremental impacts on participants’ earnings during and after participation. In-program earnings represent the foregone earnings for participants.

Fringe benefits: the employer-paid health and life insurance as well as pension contributions. They are estimated at 15% of the incremental impacts on earnings.

Federal and provincial income taxes: incremental impacts on federal, provincial and territorial taxes paid by participants.

Sales taxes: the sales taxes paid by participants estimated as incremental impacts on earnings multiplied by the propensity to consume (97%), the proportion of household spending on taxable goods and services (52%) and the total average federal and provincial sales tax rate (11%).

Social assistance and Employment Insurance benefits collected: incremental impacts on SA and EI benefits use by participants following participation.

Canada Pension Plan contribution and Employment Insurance premiums: these contributions and premiums were identified from the Canada Revenue Agency data and then, the incremental impacts on Canada Pension Plan contributions and EI premiums were estimated.

Public health care costs savings: estimated impact of participation in EBSMs on public health care costs shown as an average change per participant over the post-program period examined.

Incidence of employment

Chart 1 presents the incremental impacts on the incidence of employment for active and former claimants by type of program. The estimates can be interpreted as a change in the probability of being employed following participation.^{Footnote 28}

Active claimant participants in SD and EAS increase their incidence of employment relative to similar non-participants. Former claimant participants in SD increase their incidence of employment relative to similar participants who receive only EAS.

Text description - Chart 1

Employment benefit or Support measure	Incidence of employment for active claimants (percentage points)	Incidence of employment for former claimants (percentage points)
Skills Development	9.4	8
Employment Assistance Services	3.2	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Employment earnings

Chart 2 presents the average annual increase in employment earnings for active and former EI claimants over the post-participation period.

Active EI claimant participants in SD and EAS increase their annual employment earnings relative to similar non-participants. Former EI claimant participants in SD increase their employment earnings relative to similar participants who receive only EAS services.

Text description - Chart 2

Employment benefit or Support measure	Employment earnings of active claimants	Employment earnings of former claimants
Skills Development	$3,998	$4,391
Employment Assistance Services	$821	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Use of EI benefits

As shown in Chart 3, active claimant participants in SD and EAS reduce their use of EI benefits in the post-program period compared to similar non-participants.

Text description - Chart 3

Employment benefit or Support measure	Use of EI benefits for active claimants	Use of EI benefits for former claimants
Skills Development	-$347	-$1*
Employment Assistance Services	-$326	n/a

• * The impact is not statistically significant.
• Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Use of SA benefits

As shown in Chart 4, active and former EI claimants who participate in SD decrease their use of SA benefits in the post-program period.

Text description - Chart 4

Employment benefit or Support measure	Use of SA benefits for active claimants	Use of SA benefits for former claimants
Skills Development	-$193	-$232
Employment Assistance Services	$32*	n/a

• * The impact is not statistically significant.
• Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Dependence on income support

As shown Chart 5, active EI claimant participants in SD and EAS, as well as former claimant participants in SD reduce their overall level of dependence on government income supports over the post-program period.

Text description - Chart 5

Employment benefit or Support measure	Dependence on government income support for active claimants (percentage points)	Dependence on government income support for former claimants (percentage points)
Skills Development	-4.8	-2.7
Employment Assistance Services	-1.3	n/a

Note: Impacts are estimated over 4 post-program years for SD and 5 post-program years for EAS.

Female participants

Nearly 11,150 EI active and former claimant participants in LMDA programs and services between 2010 and 2012 are female, representing about 46% of participants.

The profile of female participants is presented in Table 4 by age, sociodemographic group and marital status. Information about their educational attainment, occupation and industry is based on the last job they held prior to applying for EI Part 1 benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants^{Footnote 30}

Active claimants:

• intermediate sales and service personnel; clerical personnel = 21% each
• semi-professionals and technicians = 10%
• other sales and service personnel = 9%

Former claimants:

• intermediate sales and service personnel = 25%
• clerical personnel = 17%
• other sales and service professionals = 14%

Top 3 industries for EBSMs participants^{Footnote 31}

Active claimants:

• heath care and social assistance = 15%
• retail trade; manufacturing = 11% each
• accommodation and food services = 10%

Former claimants:

• healthcare and social assistance = 17%
• accommodation and food services = 12%
• retail trade and manufacturing = 11%

Main findings: Female participants improve their labour market attachment through increases in their incidence of employment and earnings. Participants also decrease their dependence on government income supports (that is, the combined use of EI and SA benefits).

Table 5 presents the detailed incremental impacts. For example, the results reveal that female active claimant participants in SD have higher annual earnings (+$4,475 per year) and incidence of employment (+9.8 percentage points). They also lower their reliance on government income support (-3.6 percentage points), mainly due to their lesser use of SA benefits (-$213 per year).

Female former claimant participants in SD have a higher annual incidence of employment (+8.1 percentage points) and higher annual earnings (+$4,009 per year). They also lower their reliance on government income support (-2.1 percentage points), mainly due to their lesser use of SA benefits (-$297 per year).

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• Note: Impacts are estimated over 4 post-program years (or 5 years in the case of EAS).

Male participants

Nearly 12,900 EI active and former claimant participants in LMDA programs and services between 2010 and 2012 in Manitoba are male, representing about 54% of participants.

The profile of male participants is presented in Table 6 by age, sociodemographic group and marital status. Information about their educational attainment, occupation and industry is based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants

Active claimants:

• semi-skilled manual workers = 23%
• other manual workers = 20%
• skilled crafts and trades = 15%

Former claimants:

• semi-skilled manual workers = 24%
• other manual workers = 23%
• skilled crafts and trades = 12%

Top 3 industries for EBSMs participants^{Footnote 32}

Active claimants:

• manufacturing = 20%
• construction = 17%
• transportation and warehousing; administration and support, waste management and remediation services = 8% each

Former claimants:

• manufacturing = 23%
• construction = 17%
• administration and support, waste management and remediation services = 9%

Main findings: Male participants in SD improve their labour market attachment through increases in their incidence of employment and employment earnings. Active claimant participants in SD also decrease their dependence on government income support (that is, their combined use of EI and SA benefits). Active EI claimant participants in EAS improve their labour market attachment through increases in their incidence of employment and decrease their dependence on EI benefits.

Table 7 presents the detailed incremental impacts. For example, the results reveal that male active claimant participants in SD have higher annual average earnings (+$2,752) and incidence of employment (+6.4 percentage points). They also lower their reliance on government income supports (-3.6 percentage points), due to their lesser use of SA (-$179 per year) and EI benefits (-$373 per year).

Male former claimant participants in SD have higher average annual earnings (+$3,829) and incidence of employment (+4.9 percentage points). They also lower their use of SA benefits (-$198 per year).

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• Note: Impacts are estimated over 4 post-program years (or 5 years in the case of EAS).

Youth participants

Nearly 7,560 EI active and former claimant participants between 2010 and 2012 were 30 years of age or younger when they began their program, representing about 32% of participants.

The profile of youth participants is presented in Table 8 by gender, sociodemographic group and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants^{Footnote 33}

Active claimants:

• other manual workers = 18%
• intermediate sales and service personnel = 15%
• clerical personnel; semi-skilled manual workers = 13% each

Former claimants:

• other manual workers = 18%
• intermediate sales and service personnel = 17%
• semi-skilled manual workers; other sales and service personnel = 13% each

Top 3 industries for EBSMs participants^{Footnote 34}

Active claimants:

• construction = 13%
• manufacturing; retail trade = 11% each
• administrative and support, waste management and remediation services; accommodation and food services and public administration = 8% each

Former claimants:

• manufacturing = 13%
• construction; retail trade and accommodation and food services = 12% each
• health care and social assistance = 9%

Main findings: Youth participants in SD and EAS improve their labour market attachment through increases in their incidence of employment and employment earnings. Except for former claimant participants in SD, they also decrease their dependence on government income support (that is, the combined use of EI and SA benefits).

Table 9 presents the detailed incremental impacts. For example, the results reveal that youth active claimant participants in SD have higher annual earnings (+$5,704 per year) and incidence of employment (+9.1 percentage points). They also have a lower income support reliance rate (-4.2 percentage points annually) mainly due to a decreased use of SA benefits (-$245 per year).

Youth active claimant participants in EAS have higher annual earnings (+$1,716 per year) and incidence of employment (+2.1 percentage points). They also lower their reliance on government income supports (-2.3 percentage points annually) due mainly to a decrease in the use of EI benefits (-$373 per year).

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• Note: Impacts are estimated over 4 post-program years (or 5 years in the case of EAS).

Older worker participants^{Footnote 35}

Nearly 1,650 EI active claimant participants between 2010 and 2012 were 55 years of age or older when they began their program, representing about 7% of participants.

The profile of older worker participants is presented in Table 10 by gender, sociodemographic group and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits. Information about sociodemographic groups is self-reported.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants^{Footnote 36}

Active claimants:

• semi-skilled manual workers = 19%
• clerical personnel = 15%
• other manual workers; intermediate sales and service personnel = 10% each

Top 3 industries for EBSMs participants^{Footnote 37}

Active claimants:

• manufacturing = 17%
• administrative and support, waste management and remediation services = 9%
• construction; retail trade = 9% each

Table 11 presents the average incremental impacts over the entire post-program period.

While the average annual post-program results for older workers in EAS are not statistically significant, older workers have statistically significant increases in employment earnings in years 4 (+$2,071) and 5 (+$3,153) respectively in the post-program period. Moreover, in the fifth year post-program, they have a statistically significant increase in their incidence of employment (+ 6.5 percentage points).

Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.

Note: Impacts are estimated over 5 years in the case of EAS.

Indigenous participants

Nearly 6,100 EI active and former claimant participants between 2010 and 2012 were Indigenous, representing about 25% of participants.

The profile of Indigenous participants is presented in Table 12 by gender, age, and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants

Active claimants:

• other manual workers = 17%
• semi-skilled manual workers = 15%
• intermediate sales and service personnel = 14%

Former claimants:

• other manual workers = 19%
• intermediate sales and service personnel = 15%
• semi-skilled manual workers = 14%

Top 3 industries for EBSMs participants^{Footnote 38}

Active claimants:

• construction = 14%
• public administration = 11%
• manufacturing; health care and social assistance = 10% each

Former claimants:

• construction = 13%
• manufacturing; public administration; health care and social assistance = 11% each
• accommodation and food services = 10%

Main findings: Indigenous participants in SD and EAS improve their labour market attachment through increases in their incidence of employment and employment earnings. Active claimant participants in SD also decrease their dependence on government income support (that is, the combined use of EI and SA benefits), and former claimant participants in SD decrease their use of SA benefits.

Table 13 presents the detailed incremental impacts. For example, the results reveal that Indigenous active claimant participants in SD have higher annual earnings (+$6,268 per year) and incidence of employment (+10 percentage points). They also lower their reliance on government income supports (-3.9 percentage points), mostly due to their lesser use of SA benefits (-$220 per year).

Indigenous former claimant participants in SD have higher annual earnings (+$5,409 per year) and incidence of employment (+10.5 percentage points). They also decrease their use of SA benefits (-$370 per year).

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• Note: Impacts are estimated over 4 post-program years (or 5 years in the case of EAS).
• ¹ While the annual average impact on incidence of employment (+ 2.4 percentage points) is not statistically significant over the entire post-participation period, active EI claimant participants in EAS have a statistically significant increase in their incidence of employment of 3.6 percentage points in the first post-participation year.

Recent immigrants^{Footnote 39, Footnote 40}

Nearly 1,400 EI active claimant participants between 2010 and 2012 were recent immigrants, representing about 6% of participants.

The profile of recent immigrant participants is presented in Table 14 by gender, age, sociodemographic group and marital status. Information about their educational attainment, occupation and industry are based on the latest job they held prior to applying for EI benefits.

Note: Values may not equal 100% due to rounding or missing information.

Top 3 occupational groups for EBSMs participants

Active claimants:

• other manual workers = 19%
• semi-skilled manual workers = 18%
• other sales and service professionals = 11%

Top 3 industries for EBSMs participants

Active claimants:

• manufacturing = 31%
• accommodations and food services = 10%
• construction = 9%

Main findings: Recent immigrants who are active EI claimant participants in SD increase their earnings in the medium term and reduce their dependence on government income supports following participation (that is the combination of EI and SA benefits).

Table 15 presents the detailed incremental impacts. For example, the results reveal that recent immigrant active claimant participants in SD depend less on government income supports (-4.9 percentage point), mostly by decreasing their use of EI benefits (-$1,003 per year). Impacts on the employment earnings of recent immigrants participating in SD are not statistically significant over the entire post-program period. However, these participants have a statistically significant increase in their annual earnings of $6,486 in the fourth year post-program.

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• Note: Impacts are estimated over 4 post-program years.
• ¹ While the average impact on earnings ($3,023) is not statistically significant over the entire post-participation period, active EI claimant participants in SD have a statistically significant increase in earnings of $6,486 in the fourth post-program year.

SD participants in Winnipeg

Main findings: Incremental impacts reveal that active and former EI claimant participants in SD in Winnipeg increase their labour market attachment by increasing their annual average earnings and incidence of employment. Participants also depend less on government income support.

Between 2010 and 2012, nearly 2,800 of the participants in Canada-Manitoba LMDA-funded SD were located in Winnipeg. Table 16 presents the detailed incremental impacts for participants in this region.

For example, the results reveal that active claimant participants in SD in Winnipeg increase their incidence of employment (+9.4 percentage points) and annual employment earnings (+ $2,821). They also reduce their dependence on government income supports (- 4.1 percentage points), by decreasing their use of EI (- $352 per year) and SA benefits (- $125 per year).

Former claimant participants in SD in Winnipeg improve incidence of employment (+ 6.8 percentage points) and annual employment earnings (+ $4,229). They also reduce their dependence on government income supports (- 1.9 percentage points), mainly by reducing their use of SA benefits (- $205 per year).

Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.

SD participants outside of Winnipeg

Main findings: Incremental impacts reveal that active and former EI claimant participants in SD outside of Winnipeg increase their labour market attachment by increasing their annual average earnings and incidence of employment. Participants also depended less on government income support.

Between 2010 and 2012, nearly 1,440 of the participants in Canada-Manitoba LMDA-funded SD were located outside of Winnipeg. Table 17 presents the detailed incremental impacts for participants in this region.

For example, the results reveal that, active claimant participants in SD outside of Winnipeg increase their incidence of employment (+7.4 percentage points) and annual employment earnings (+ $5,905). They also reduce their dependence on government income supports (- 2.8 percentage points), in part by reducing their use of SA benefits (- $119 per year).

Former claimant participants in SD outside of Winnipeg improve their incidence of employment (+ 6 percentage points) and annual employment earnings (+ $4,864).

• Statistical significance level ^*** 1%; ^** 5%; ^* 10%, other values are not statistically significant.
• ¹ While the average annual impact on dependence on income support (- 1.9 percentage point) is not statistically significant, former EI claimant participants in SD outside Winnipeg have a statistically significant decrease of 2.9 percentage points in the fourth post-program year.

Skills Development^{Footnote 44}

During the 2010 to 2012 period, SD represents 63% of EBSM expenditures under the LMDAs in Manitoba. The average duration of an SD Action Plan Equivalent is 49 weeks for active claimants and 52 weeks for former claimants.

As shown in Table 18, over the 10-year post-program period, the benefit for active claimants is $29,949 higher than the costs, yielding a social return of 538% on investment. This means that if the government spends $1 on SD for active EI claimants, it generates $6.38 of benefit for society. It takes 4.5 years for the benefits to recover the costs of programming. Overall, there is a savings to health care costs of $292 per participant.

The benefit for former claimants is $35,871 higher than the costs, yielding a social return of 631% over the 10-year post-program period. This means that if the government spends $1 on programming, it generates $7.31 of gain for society. From a social perspective it takes 3.5 years for society to recover the costs of SD for former EI claimant participants. Overall, there is a savings to health care costs of $314 per participant.

Employment Assistance Services^{Footnote 45}

EAS includes a variety of services such as computer access for job search services, group sessions to prepare for an interview, career counselling, and action plan development. The administrative data, however, does not allow identification of what proportion of EAS interventions belong to each category or the intensity of services offered to participants.

While EAS are often provided with other EBSMs, this analysis examined only participants who received one or more EAS without participating in other EBSMs. EAS represents about 19% of total EBSM expenditures between 2010 and 2012 in Manitoba. The average length of an EAS-only Action Plan Equivalent is 9 weeks compared to between 49 weeks for active EI claimant participants in SD.

As shown in Table 18, over the 5-year post-program period, the benefits for active claimants in EAS are $132 higher than the costs, yielding a social return on investment of 52%. This means that if the government spends $1 on EAS for active claimants, it generates a $1.52 gain for society.

Overall, the goal of EAS is not to help participants acquire more skills, therefore, increasing participants’ earnings after participation is not necessarily expected. Conducting a cost-benefit analysis for EAS is a challenge, as it is not possible to attribute a dollar figure to the return to employment. However, including earnings in the cost-benefit calculation is still very relevant, since it captures partially the positive impact of the quicker return to work.

Wage Subsidy participant outcomes

Approximately 250 active and former EI claimant participants participated in the Wage Subsidy program between 2010 and 2012.

Active claimants

As shown in Chart 6, Wage Subsidy participants increase their average earnings from $21,399 in the fifth year pre-program to $28,067 in the fourth year after participation.

Text description - Chart 6

Year pre-post participation	Employment earnings for active claimants
5 years pre-program	$21,399
4 years pre-program	$22,312
3 years pre-program	$21,929
2 years pre-program	$24,123
1 year pre-program	$25,902
Program start year	$18,826
Second year of participation	$25,275
1 year post-program	$26,217
2 years post-program	$27,205
3 years post-program	$27,054
4 years post-program	$28,067

The proportion of employed participants declines from 99% in the program start year but remains around 87% on average during the post-program period. The proportion of participants receiving EI benefits decreases from 97% in the program start year to 29% in the fourth year after participation. Participants decrease their dependence on income support from 36% in the program start year to 12% in the fourth year after participation.

Former claimants

As shown in Chart 7, former EI claimant participants in Wage Subsidy increase their average earnings from $18,527 in the fifth year pre-program to $32,387 in the fourth year after participation.

Text description - Chart 7

Year pre-post participation	Employment earnings for former claimants
5 years pre-program	$18,527
4 years pre-program	$20,162
3 years pre-program	$20,267
2 years pre-program	$21,044
1 year pre-program	$16,107
Program start year	$20,198
Second year of participation	$24,697
1 year post-program	$26,130
2 years post-program	$26,880
3 years post-program	$30,823
4 years post-program	$32,387

The proportion of employed participants declines from 98% in the program start year but remains on average around 90% in the post-program period. The proportion of participants receiving EI benefits decreases from 65% in the program start year to 30% in the fourth year after participation. Participants decrease their dependence on income support from 23% in the program start year to 11% in the fourth year after participation.

Employment Partnerships participants

Approximately 373 active and former EI claimant participants participated in Employment Partnerships between 2010 and 2012.

Active claimants

As shown in Chart 8, Employment Partnerships active EI claimant participants increase their average earnings from $18,824 in the fifth year pre-program to $30,604 in the fourth year after participation.

Text description - Chart 8

Year pre-post participation	Employment earnings for active claimants
5 years pre-program	$18,824
4 years pre-program	$20,058
3 years pre-program	$21,396
2 years pre-program	$21,643
1 year pre-program	$23,614
Program start year	$16,494
Second year of participation	$24,050
1 year post-program	$30,494
2 years post-program	$29,638
3 years post-program	$29,850
4 years post-program	$30,604

The proportion of employed participants decreases from 98% in the program start year, remaining on average around 93% in the post-program period. The proportion of participants receiving EI benefits decreases from 99% in the program start year to 29% in the fourth year after participation. Participants decrease their dependence on income support from 42% in the program start year to 10% in the fourth year after participation.

Former claimants

As shown in Chart 9, Employment Partnerships active EI claimant participants increase their average earnings from $13,385 in the fifth year pre-program to $19,092 in the fourth year after participation.

Text description - Chart 9

Year pre-post participation	Employment earnings for former claimants
5 years pre-program	$13,385
4 years pre-program	$14,807
3 years pre-program	$15,123
2 years pre-program	$14,502
1 year pre-program	$12,387
Program start year	$9,592
Second year of participation	$14,825
1 year post-program	$18,181
2 years post-program	$18,898
3 years post-program	$18,490
4 years post-program	$19,092

The proportion of employed participants decreases from 88% in the program start year to an average of 81% during the post-program period. The proportion of participants receiving EI benefits decreases from 51% in the program start year to 29% in the fourth year after participation. Participants decrease their dependence on income support from 32% in the program start year to 22% in the fourth year after participation.

Program design and delivery

The Self-Employment program aims to assist participants in creating employment for themselves by providing them with a range of services including:

• assistance with business plan development
• counselling, coaching and mentoring
• entrepreneurial training and workshops

Eligible individuals must be unemployed and thinking about starting a new business to create a job for themselves.

Manitoba has the flexibility to design and deliver the program to meet its labour market needs. In fall 2018, the program was delivered through third-party organizations, including:

• Community Futures
• not-for-profit organizations
• municipal governments

Manitoba allocated between 2% and 3% of its LMDA funding to the Self-Employment program between fiscal year 2013 to 2014 and fiscal year 2018 to 2019. While spending on the Self-Employment program tends to decrease in Canada, it remains stable in Manitoba.

The application process is structured and aimed to ensure that participants are suited for self-employment, have a viable business idea and the financial resources to launch a business.

Participants’ employment outcomes^{Footnote 48}

The proportion of participants who were self-employed increased by 33 percentage points, from 10% in the year before participating to 43% at the time of survey.

Type of businesses created, survival rates, and success factors

Half (50%) of survey respondents launched a self-employment business that was still in operation in winter 2020 (2 to 4 years following program participation). Among the 76 respondents who started a business, 74% of them were still operating their business 2 to 4 years post-program. Twenty-one percent (21%) of respondents were unable to maintain the operation of the business they had started as part of the program.

The business survival rate is consistent with a 2018 Statistics Canada study, which found that less than half of unincorporated self-employed individuals continued operations for more than 2 years.^{Footnote 49}

More than a third (34%) of self-employment businesses were launched in other services^{Footnote 50} as well as in construction.

Participants who started a business that was still in operation at the time of survey attributed their business success to:

• their dedication, hard work and positive attitude
• the high demand for their services or products

Earning outcomes and reliance on income support

Survey respondents were not comfortable answering questions that related to their earnings. This situation made it difficult to compare the pre- and post-earnings of Self-Employment participants.

Overall, there appears to be an increase in the number of participants reporting less than $10,000 in earnings annually. However, survey respondents who are able to maintain the operation of their business are more likely to report earning more or the same as before participating in the program.

As a complement to the earning questions, survey respondents assessed their financial well-being. When considering their entire financial situation:

• 69% of respondents said that they are financially about the same or better off after the program
• 61% of respondents said that their household net worth is about the same or higher after the program

Satisfaction with services received and current employment

Seventy-six percent (76%) of survey respondents who were able to maintain the operation of their business, or who were self-employed at the time of the survey but did not start a business while participating in the Self-Employment program, reported being more satisfied with current work arrangements compared to before starting the program.

Most services received by survey respondents who launched a business were frequently rated as very important or somewhat important to the business launch, operation, or success. The highest-rated supports and services included:

• budgeting and financial management training
• one-on-one mentoring or counselling
• discussions on risks and challenges of self-employment
• training on operating a business
• sales and marketing training
• assistance with business plan development
• assessment of the existing business plan

Challenges and lessons learned related to program design and delivery

Challenges related to program design and delivery identified by key informants include:

• staff turnover
• restrictive contract length of financial support for program participants
• balancing quality of training supports and cost
• lack of long-term data on outcomes of participants

Best practices related to program design and delivery included:

• using organizations with appropriate capacity to deliver the program
• ensuring good communication between the service provider and the department, with clearly defined roles between the service provider and the department
• completing rigorous screening and assessment of applicants
• providing information to participants on available sources of funding and supporting them to access funding

Key considerations for Self-Employment program and policy development

Three key considerations for program and policy development emerge.

Self-Employment can benefit from an updated objective specifying that it is dedicated to eligible participants who have a viable business idea, the financial or in-kind resources to launch a business and the required level of dedication.

The data collection process should include only participants who have been deemed suitable for self-employment and accepted into the program. This will require excluding candidates who attended information sessions alone or those deemed not suited for self-employment. The latter participants can be reported under EAS.

Indicators of program success can include: increase in employment and/or self-employment levels; medium-term increase in earnings; business survival rate similar to the local economy and/or the sector; improvement in job satisfaction; and acquisition of transferable skills.

Program objective

The Employment Partnerships program in Manitoba provides funding that is designed to enable employers, communities and other organizations to support ‘sustainable employment’ for clients through employment, skill enhancement and short-term work experience activities.

Employment Partnerships is delivered through the provision of funds to an organization that implements a community-benefiting project while providing work experience to participants.

Participants receive benefits from EI Part I or II.^{Footnote 52} Benefits to participants follow the prevailing wage rate, up to the maximum EI weekly benefit rate. Participants may receive an additional wage top up from the sponsor/employer.

Program delivery

The design and delivery of the Employment Partnerships program allows Manitoba to address a variety of client and labour market needs. Employment Partnerships can be used to address labour market needs by targeting sub-groups of individuals, in-demand professions and growing economic sectors. Key informants identified that the program is notably well suited for individuals lacking work experience or essential skills.

Key informants reported that the amount allocated to Employment Partnerships each year is influenced by demand for the program, provincial government priorities, and the type and quality of proposals received. The annual allocation remained relatively stable in the 5 fiscal years between April 2013 and March 31, 2018.

In addition to gaining work experience, key informants identified a variety of other benefits that can be expected from Employment Partnerships projects. Participants are expected to develop work-related skills and enhance their job search abilities, improve their personal well-being and progress in their career development. Benefits for employers providing a work experience include gaining a potential source of trained employees.

Sponsors can benefit from Employment Partnerships by gaining access to pre-screened and trained employees that require less onboarding than other recruits, and by assessing the skills and fit of potential employees before hiring them.

Challenges and lessons learned

Key informants identify challenges related to:

• recruitment of participants
• addressing participants’ barriers to employment
• program administration and monitoring

Key informants identified the following elements as contributing factors to participant success:

• the importance of collaboration between service providers and employers, as well as with government staff
• effective monitoring of participants by service providers, which includes close and frequent contact with participants
• participants who benefit the most from Employment Partnerships include those who are looking to transition into a new occupation, acquire work experience and gain new skills
• organizations most likely to succeed as a project holder include municipalities, bands, health authorities, employers or colleges
• projects found to be best suited under Employment Partnerships are those aligned with local labour market demand
  • examples of well-suited projects include nursing, trades, metal manufacturing and social work

Key considerations for Employment Partnerships program and policy development

The following considerations emerged as part of the Employment Partnerships study.

Manitoba is 1 of 2 provinces/territories that incorporates a training component with the participant’s work experience in the Employment Partnerships program. Previous incremental impacts studies demonstrated that participants in the Employment Partnerships program are achieving positive labour market outcomes as a direct result of participation, suggesting the success of a skills training component, particularly for clients targeted by the Employment Partnerships program.

These findings present an opportunity for Manitoba and ESDC to discuss and further explore what may work in the overall design and delivery of the Employment Partnerships program. These findings also present an opportunity for Manitoba and Canada to discuss whether some Employment Partnerships projects may be better classified as a SD – Group Benefit when training is the primary intervention.

Funded organizations

Funded organizations include industry associations, sector councils and private sector employers.

Targeted labour market issues

Labour Market Partnerships projects target skills and/or labour shortages. These projects also target specific under-employed populations (for example, self-employed individuals) and unemployment.

Generally, funded projects targeted labour market issues associated with:

• employer expansion/Forecasted net new job creation
• obsolete or unavailable sector or jurisdiction-specific labour market information
• lack of capacity for human resource planning resulting in attraction and retention challenges for employers
• aging workforce
• business downsizing/closure/layoffs
• technological change

Projects reviewed aligned with their respective program objectives.

Partnerships

The Department of Economic Development, Investment and Trade and program officials confirm that the department carries out activities to support the formation and maintenance of partnerships as part of the program design and delivery. However, program officials note that a lack of resources limit their capacity to provide greater support to develop and maintain partnerships.

The document review of 11 projects and key informant interviews confirmed that:

• partnerships were established to support the delivery of all projects
• partners made financial and/or in-kind contributions
  • the most common forms of in-kind contributions were expertise, as well as employers’ staff time to support project delivery
• project activities delivered with the support of partners included career awareness, employer engagement, labour market research and training development

Challenges and lessons learned

The department and program officials identified challenges related to project holder capacity to measure project outcomes.

Actions of program officials and project characteristics that were identified as being conducive to the success of the program included:

• ensuring that project holders have the capacity and expertise to deliver the project
• ensuring that the project budget is realistic
• involving project holders’ boards of directors and/or industry in planning and evaluation
• ensuring the ability of government officials to develop effective relationships with project holders, provide guidance and advice, analyse reports, recommend and implement program administration changes
• identifying annual and 4-year outcomes, metrics to measure the outcomes and evaluation methods to collect data
• identifying strategic sector goals

Key considerations for Labour Market Partnerships program and policy development

The following considerations emerged as part of the Labour Market Partnerships study.

Considering that the current performance indicators do not reflect the diversity of activities funded under Labour Market Partnerships, it is important for ESDC and Manitoba to discuss current Labour Market Partnerships funded activities to make recommendations on how best to report on results.

It is essential to share lessons learned about successful Labour Market Partnerships projects, particularly, for projects targeted to employers (such as workplace or employer-sponsored training), and those assisting communities and economic sectors dealing with labour market adjustment issues (contraction or expansion).

Funded organizations

Funded organizations include:

• not-for-profit organizations
• private sector research organizations

Funded Research and Innovation activities

Research and Innovation projects encompassed a variety of activities, including:

• a review of college programs offered by 5 Manitoba colleges and the development of options and recommendations for a 10-year strategic direction for college education in Manitoba
• activities to support the mental health, wellness and retention of participants using a variety of supports, such as coaching with respect to skills and strategies for improved mental health, counselling services, and referrals of individuals to service providers
• the development of a new service delivery approach to:
  • improve the accessibility, consistency and quality of employment services for all Manitobans
  • help employers access the people and training supports they need to grow and improve productivity
• the delivery of career information workshops and networking events to inform Indigenous youth about apprenticeship programming and opportunities in the skilled trades and technology sectors
• delivery of information to a wide range of youth about apprenticeship programming and opportunities in the skilled trades and technology sectors

Innovation definition and criteria

Manitoba uses Research and Innovation for demonstration projects that pilot new ways of delivering employment and training services. Projects aim to improve the job readiness of difficult to serve populations, including individuals in receipt of Employment and Income Assistance benefits.

Performance measurement

Research and Innovation project holders in Manitoba are required to report to the Department of Economic Development, Investment and Trade in accordance with reporting requirements outlined in service agreements. These reporting requirements include:

• monthly progress reports
• expenditures with eligible cost categories
• a final report on activities of the project

For some Research and Innovation projects, participant level data may be collected and requested by Manitoba. Manitoba may conduct reviews, inspections and evaluations funded projects.

Manitoba’s Research and Innovation evaluation and performance measurement provisions are focused on organizations’ ability to meet project outcomes. These indicators include:

• the number of clients that accessed employment/training programming
• population reach

Labour market outcomes

The labour market outcomes are based on individuals who began their participation during the 2010 to 2012 period. Statistics focus on 5 years before program participation and 5 years after participation.

Active claimants

As shown in Chart 10, program participants increase their average earnings from $17,966 5 years before program participation to $55,606 in the fifth year after participation.

Text description - Chart 10

Year pre-post participation	Employment earnings for active claimants
5 years pre-program	$17,966
4 years pre-program	$19,475
3 years pre-program	$21,270
2 years pre-program	$23,705
1 year pre-program	$30,225
Program start year	$30,148
1 year post-program	$37,235
2 years post-program	$41,985
3 years post-program	$47,394
4 years post-program	$52,510
5 years post-program	$55,606

The proportion of employed participants declines slightly after the program start year but remains around 96% for the annual post-program average. The proportion of participants receiving EI benefits decreases from 100% in the program start year to 26% in the fifth year after participation. Participants decrease their dependence on income support from 19% in the program start year to 4% in the fifth year after participation.

Former claimants

As shown in Chart 11, program participants increase their average earnings from $18,827 in the fifth year pre-program to $47,110 in the fifth year after participation.

Text description - Chart 11

Year pre-post participation	Employment earnings for former claimants
5 years pre-program	$18,827
4 years pre-program	$21,233
3 years pre-program	$21,935
2 years pre-program	$23,404
1 year pre-program	$25,916
Program start year	$32,110
1 year post-program	$37,633
2 years post-program	$40,996
3 years post-program	$44,344
4 years post-program	$45,417
5 years post-program	$47,110

The proportion of employed participants declines slightly after the program start year but remains around 92% for the annual post-program average. The proportion of participants receiving EI benefits decreased from 55% in the program start year to 32% in the fifth year after participation. Participants decreased their dependence on income support from 10% in the program start year to 7% in the fifth year after participation.