Activities delivered under Part II of the Employment Insurance Act help Canadians to prepare for, find and maintain employment. These activities include Employment Benefits and Support Measures, pan-Canadian programming, and functions of the National Employment Service.
The purpose of Part II of the Employment Insurance Act is to help maintain a sustainable Employment Insurance (EI) system by establishing employment benefits for insured participants and maintaining a National Employment Service (NES). Under Part II, the Canada Employment and Insurance Commission is authorized to establish Employment Benefits to help insured participants obtain employment. Part II also provides that the Commission shall maintain an NES to help workers find suitable employment and help employers find suitable workers, and further provides that the Commission may establish Support Measures to advance the work of the NES.
Labour Market Agreements
In 2008 and 2009, Canada signed new Labour Market Agreements (LMAs) with all of the provinces and territories to expand and enhance Canada’s labour force. These agreements, worth $3 billion over six years, are helping individuals not eligible for programs under Part II of the Employment Insurance Act, as well as low-skilled workers.
The objective of Part II Employment Benefits and Support Measures (EBSMs) is to assist individuals to prepare for, obtain and maintain employment. Since a return to employment means that individuals do not continue to receive EI benefits, this results in savings to the EI Account. Consequently, a return on investment is achieved through reduced dependency on EI and social assistance and through additional tax revenues generated from increased employment.
It is recognized that provincial and territorial authorities are uniquely placed to determine the mix of employment programs and services required to meet the needs of their local and regional labour markets. Accordingly, provinces and territories deliver most EBSM and EBSM-similar programming, as well as certain NES functions, through transfer Labour Market Development Agreements (LMDAs). To support this activity, Human Resources and Skills Development Canada (HRSDC) transfers LMDA funding to the provinces and territories and focuses on accountability, evaluation and ongoing policy development. HRSDC also delivers pan-Canadian programming and maintains, in partnership with the provinces and territories, specific NES services mandated under Part II of the Employment Insurance Act.
In addition, in jurisdictions where LMDAs take the form of co-managed agreements, HRSDC/Service Canada delivers the EBSMs established under Part II of the Employment Insurance Act. These EBSMs comprise five Employment Benefits: Skills Development, Targeted Wage Subsidies, Self-Employment, Job Creation Partnerships, and Targeted Earnings Supplements. 1 EBSMs also comprise three Support Measures: Employment Services, Labour Market Partnerships, and Research and Innovation. In jurisdictions with transfer agreements, provinces and territories design and deliver employment programs similar to these Part II EBSMs.
Section I of this chapter provides a national overview of EBSM activities delivered across the country through LMDAs. 2 Section II summarizes provincial and territorial EBSM activity in the context of each jurisdiction’s distinct labour market conditions and employment programming priorities. Section III discusses the role of HRSDC, including the administration of certain NES functions and the delivery of pan-Canadian activities that are beyond the scope of LMDAs.
1 A measure similar to Targeted Earnings Supplements is used in Quebec, where it is reported under Employment Services as the Supplément de retour au travail.
2 The data used to analyze EBSM activities were collected by Service Canada and by provinces and territories with transfer LMDAs. Accordingly, the data were processed through several systems, using a variety of sources. Governments continue to improve data quality and collection to ensure accurate, reliable and consistent information. While all datasets are verified before publication, systems changes and operational improvements may affect the comparability of data from year to year. These instances are noted, where applicable.