Governments of Canada and PEI highlight success of training investments

More workers in Prince Edward Island will get training support for in-demand jobs, thanks to additional funding support from the Government of Canada. Rodger Cuzner, Parliamentary Secretary to the Minister of Employment, Workforce Development and Labour, and Member of Parliament for Cape Breton–Canso (Nova Scotia), on behalf of the Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour, along with Sonny Gallant, Minister of Workforce and Advanced Learning, made the announcement today.
 
The federal government is investing an additional $1.2 million through the Canada–PEI Labour Market Development Agreement (LMDA), and an additional $204,827 through the Canada–PEI Job Fund agreement, the province’s share of the additional funding announced in Budget 2016.
 
The announcement took place at Sekisui Diagnostics, an international company that develops and manufactures innovative medical diagnostics, one of many employers in the province to benefit from Canada Job Grant funding. Sekisui Diagnostics received over $66,000 through the Canada Job Grant to provide training for 117 employees using the Lean Six Sigma methodology to improve product and service quality. In addition, funds were approved for Sekisui Diagnostics to hire and mentor recent graduates.
 
Prince Edward Island’s Department of Workforce and Advanced Learning works to develop, attract, and retain an educated, skilled and engaged workforce to grow the economy.
 
To strengthen and grow the middle class and support those who need help entering or returning to the workforce, the Government of Canada transfers almost $3 billion annually to provinces and territories to support employment and skills training programs.

Quotes

 “We are dedicated to helping Canadians in the middle class and those working hard to join it. Through these agreements, we will continue to work with PEI to improve access to quality training that helps Canadians get good jobs.”
– The Honourable Patty Hajdu, Minister of Employment, Workforce Development and Labour
 
“This grant announcement is an excellent example of the kind of support needed to upgrade skills and boost the Canadian economy. Now more than ever, Canadians need opportunities to improve their skills so that they can succeed and remain in today’s job market.”
– Rodger Cuzner, Parliamentary Secretary to the Minister of Employment, Workforce Development and Labour, and Member of Parliament for Cape Breton–Canso (Nova Scotia)
 

"We are very pleased to work collaboratively with the federal government through the LMDA and the Canada Job Fund Agreement. These agreements are instrumental to assist Prince Edward Island employers to train new and existing workers to meet today's workforce demands and prepare for the future."
– Sonny Gallant, Minister of Workforce and Advanced Learning

 "We appreciate the additional funding we received from the Labour Market Development Agreement and the Canada Job Fund. With this government funding, our company was able to hire more graduates and offer a high level of training that has helped our company remain competitive in the global market while making our work safer and more efficient for our employees."
– Brian Stewart, Plant Manager, Sekisui Diagnostics

Quick Facts

• PEI currently receives approximately $25 million annually through the Canada–PEI Labour Market Development Agreement, to support skills development and employment services.

• Under the Canada–PEI Job Fund Agreement, PEI receives over $2.2 million to support employment and skills training programming.

• Through Budget 2016, the Government of Canada invested an additional $125 million in 2016–2017 for the Labour Market Development Agreements and an additional $50 million in 2016–17 for the Canada Job Fund.

Backgrounder

Labour Market Development Agreements

The Labour Market Development Agreements (LMDAs) represent Canada’s largest investment in labour market programs.  Each year, the Government of Canada provides over $2 billion in LMDA funding to the provinces and territories to support their programming for skills development and other employment services.

Funding is provided from the Employment Insurance (EI) Operating Account to support the costs of designing and delivering employment programs that help Canadians get back to work. With these funds, provinces and territories provide a full range of employment programs and services, ranging from longer-term skills training currentto counselling and job search assistance.

Through Budget 2016, the Government of Canada provided an additional $125 million for the LMDAs in 2016–17.

While the Government of Canada provides funding under the LMDAs, decisions regarding the delivery of employment programs and services are the responsibility of the provincial and territorial governments.  They have the flexibility to develop labour market programming best suited to their specific needs.

Canada–Prince Edward Island Job Fund Agreement

Since April 1, 2014, the Canada Job Fund agreements have played a big role in ensuring greater employer involvement in training. Nationally, the Government of Canada continues to provide $500 million annually to the provinces and territories for investments in skills training through the Canada Job Fund, which includes the Canada Job Grant.

Prince Edward Island is receiving over $2.2 million per year for six years (2014–20), its per capita share of the $500 million, and an additional $204,827 in 2016–2017 as part of the $50 million top up of the Canada Job Fund.

Canada Job Grant

The Canada Job Grant is helping Canadians get the training they need for available jobs and putting skills training decisions in the hands of employers. It can provide up to $10,000 in government contributions per person for training costs, such as tuition and training materials. Employers are required to contribute one-third of training costs.

By investing in the training, employers become partners in the skills training system and ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.

The Canada Job Grant is for short-duration training provided by eligible third-party trainers, such as community colleges, career colleges, trade union centres and private trainers. Training can be provided in a variety of settings, including in a classroom, on site at a workplace or online.

The Grant is flexible enough to meet the needs of businesses of all sizes, in all industries and regions. Small businesses may benefit from flexible arrangements, such as the potential to count wages as part of the employer contribution. This will help ensure that all businesses, regardless of size, can fully participate in the Canada Job Grant.

The provinces and territories have flexibility on the source of funds for the Canada Job Grant. They may be sourced from their allocations under the Canada Job Fund, the Labour Market Development Agreements or their own provincial/territorial sources.

Media contact:
Kim Devine
Workforce and Advanced Learning.
902-620-3688
kmdevine@gov.pe.ca