Overview of Human Resources and Skills Development Canada April 22,

2 About HRSDC  The mission of the Human Resources and Skills Development Canada (HRSDC) portfolio, including Labour and Service Canada, is to build a stronger, more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives, and to improve Canadians' quality of life.  HRSDC’s broad mandate and reach put the Department at the forefront of the Government of Canada’s labour market and social policy agenda.

3 Responsibilities  To fulfill its mission, the Department is responsible for: -supporting a flexible, national labour market; -increasing participation in the labour force; -removing barriers to post-secondary education attainment and skills development; -overseeing federal labour responsibilities; -providing income support to seniors, families with children and Employment Insurance beneficiaries; and -delivering other Government of Canada programs and services on behalf of other departments and agencies.

4 HRSDC programs and policy overview  The Department delivers a range of programs and services that benefit Canadians throughout their lives through three business lines: 1.HRSDC Programming which develops and administers several of Canada’s largest labour market (Youth Employment Strategy, Targeted Initiative for Older Workers, Learning and Labour Market Information), learning (Canada Student Loans) and income security programs (Employment Insurance, Old Age Security and the Canada Pension Plan; National Child Benefit; and, Universal Child Care Benefit). 2.Labour Program which oversees labour laws, labour relations and health and safety in federally-regulated occupations; 3.Service Canada which delivers government programs and services in over 600 points of service across the country.

5 HRSDC’s Expenditures  Almost 95% of the department’s expenditures go directly to benefit Canadians in one way or another. The most recent fiscal year (which ended March 31, 2013), the Department expenditure on social security programming alone was nearly $75 billion.

6 Changing Policy Environment The policy environment in which HRSDC operates is undergoing fundamental changes.  Ageing Population –An ageing workforce and increased life expectancy will have significant impacts both economically and socially. –In the future, It is expected that there will be slow labour force growth, tighter labour markets, potentially lower tax revenues and increased demand for services and support for seniors. Today there are four working-age Canadians for every senior. In 20 years, there will only be two.  Changing Nature of Families –Families are getting smaller, forming later, and are more likely to be dual-earner. Many also face the pressure of simultaneously caring for a child and an aging parent.

7 Changing Policy Environment  Labour Market Conditions –Job growth in occupations usually requiring a university degree has far exceeded growth in other occupation skill categories, resulting in a rising labour market share of highly skilled jobs. –Two-thirds (66.5%) of total job openings over the next decade are expected to be in occupations that usually require postsecondary education (PSE) or in management. –Mismatch between skills demand and supply by region, industry and occupation. Employers in the fastest growing industries and regions are reporting skills shortages, which can be expected to intensify as unemployment rates decline further.  Retirement –Insecurity in retirement is a growing concern. In the coming years, a rising number of Canadians may have to make early withdrawals from their private savings, stay in work longer, or re-enter the labour market after retirement.

8 Current governmental priorities  “Our government's top priorities remain job creation and economic growth, and we have implemented several initiatives to strengthen Canada's labour market. However, we are facing skills and labour shortages in many regions and sectors of the economy, as well as demographic changes, which threaten our future success.  HRSD's key challenge will be to address skills shortages and mismatches by helping Canadians get the training and information they need to take advantage of labour market opportunities. We will continue to work with the provinces and territories to promote education, help youth make good career decisions and support vulnerable groups.” The Honourable Diane Finley, Minister of Human Resources and Skills Development 2012 – 2013 Report on Plans and Priorities

9 Budget 2013 – Economic Action Plan  HRSDC plays a critical role in supporting the Government’s Economic Action Plan (EAP) 2013 for Canada’s long-term prosperity through a number of policy and program initiatives, and building on the theme of “Connecting Canadians With Available Jobs” to help support job creation and skills training, such as: –The Canada Job Grant – directly connects skills training with employers as part of the renewal of Labour Market Agreements with provinces and territories. Nearly Canadians each year are expected to be able to access the training they need. –Creating Opportunities for Apprentices – $4 million reallocated over three years to support the use of apprentices and reduce barriers for accreditation. –Supporting Job Opportunities for All Canadians – measures for under-represented groups, such as people with disabilities, youth, Aboriginal people and newcomers.

10 HRSDC Labour Market Programming  A significant portion of the department’s resources are directed towards labour market programming. Areas of investment at the federal level include:  Employment Insurance Program –Provides temporary income and other programs designed to improve labour market outcomes including: Income support for qualifying unemployed through Employment Insurance Part I Employment Insurance Part II funds Labour Market Development Agreements between the federal government and provinces and territories fund a variety of services including as job creation partnerships and targeted wage subsidies Maternity and Paternity Benefits Compassionate Care Benefits  Inclusive Labour Force –Enable Canadians, including unemployed adults and targeted groups such as youth and Aboriginal Peoples, to develop their skills and gain a foothold in Canada’s labour market through: Youth Employment Strategy Aboriginal Skills and Employment Training Strategy (ASETS) Labour Market Agreements Persons with Disabilities

11 Skilled Labour Force and Efficient Labour Market  Skilled Labour Force –Partnerships with employers, provinces, and territories to enhance the preparedness of Canadians to meet the labour market’s need for skilled workers including through: Apprenticeship grants and credits Labour Market Agreements  Labour Market Efficiency –Programs help balance of supply and demand in the national labour market including: Foreign Qualification Recognition Labour Market Information

12 Education  Student Financial Assistance assists Canadians in their participation in post-secondary education which lays the foundation for building a skilled, adaptable and inclusive workforce and inclusive labour market. Programs include: –Canada Student Loans Program –Canada Student Grants Program –Repayment Assistance Plan  Canada Education Savings Program encourages Canadians to save for post-secondary education. Programs include: –Registered Education Savings Plans –Canada Education Savings Grants

13 Federal-Provincial Dynamics  The Government of Canada acknowledges provinces and territories (P/Ts) are well-positioned to set regional and local labour market policy and priorities according to their specific needs, and design and deliver labour market programming through: –Labour Market Agreements (LMAs) provides $500,000 per year for P/Ts to design and deliver employment programs and services. The broad objectives of the LMAs are to increase the participation of groups that are underrepresented in the labour force and to enhance the skills of low skilled workers. –Labour Market Development Agreements (LMDAs) provide support to unemployed Canadians, in particular, those who are eligible for Employment Insurance (EI) Benefits as the LMDA is funded under the legislative authority of Part II of the EI Act. Approximately $1.95 billion is transferred annually for employment benefits and measures to help unemployed Canadians find a job or acquire the skills they need to return to employment. –$223 million annually to P/Ts through the Labour Market Agreements for Persons with Disabilities. These agreements provide cost-shared funding to improve the employment situation of Canadians with disabilities, by enhancing their employability, increasing the employment opportunities available to them and building on the existing knowledge base.