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Donna E. Wood, University of Victoria IAEVG Presentation June 4, 2014 1.

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Presentation on theme: "Donna E. Wood, University of Victoria IAEVG Presentation June 4, 2014 1."— Presentation transcript:

1 Donna E. Wood, University of Victoria IAEVG Presentation June 4,

2  All developed countries have a public employment service (PES) that connects job seekers with employers  Canada is a federation with 14 powerful governments  In social policy matters Canada is considered as the most decentralized federation in the OECD world  Provinces have large areas of competence plus fiscal capacity  The federal government (Ottawa) can act unilaterally as we have an ineffective Senate to represent regions  Employment and training powers have historically been contested between Ottawa and the provinces 2

3  1996 Ottawa offers to devolve the PES  Devolution triggered by 1995 Québec referendum; need for ‘flexible federalism’ and reduced spending  Realized through bilateral administrative (not constitutional) agreements: Labour Market Development Agreement (LMDA) and Labour Market Agreement (LMA) between 1996 and 2010  New arrangements supported by both Liberals and Conservatives in Ottawa  By % of programs under provincial control and management  In 2013 Ottawa decides to re-assert control: Canada Job Grant Agreements and LMDA review 3

4  How did the devolution story play out?  What is the federal role today?  How are provinces managing these new responsibilities?  What interventions have they chosen?  What governance arrangements have they chosen?  How do these compare?  Why happens next in the federal-provincial world? 4

5  Provincial labour market offices in 1910s with federal contributions  1940 constitutional amendment gives Ottawa unemployment insurance; provinces retain social assistance as well as training  Renewed conflict starts in 1960s and becomes competitive in 1980s  Pre-LMDA Ottawa has network 500 Canada Manpower offices; few provinces offer services  LMDAs and LMAs start to restore harmony in 1990s  Provinces pleased: flexibility to meet local needs; improved coordination; most irritants removed  Federal government left with accountability ‘light’; loss of visibility; hard to lead even though they pay 5

6  LMDA agreements (focused on Employment Insurance clients) transferred federal staff, assets and funding  Early LMDA movers: Alberta, New Brunswick, Manitoba, Québec, Saskatchewan, NWT and Nunavut  Ontario finally comes on board 2007  From co-managed to devolved LMDA agreements: British Columbia, Nova Scotia, Prince Edward Island, Newfoundland & Labrador and Yukon  LMA agreements (for non EI clients)  Complementary transfers for disabled persons ($222m) and older workers ($80m)  About 80% of cost of provincial programming covered by Ottawa 6

7 Jurisdiction LMDA implementation date Total federal positions Total LMDA funding LMA date Total LMA funding Total LMDA/LMA allocations The early movers AlbertaNov. 1, m m159.4m New BrunswickApril 1, m m102.5m ManitobaNov. 27, m m62.9m QuébecApril 1, m m705.7m Northwest Territories Oct. 1, m m4.5m SaskatchewanJan. 1, m m52.8m NunavutApril 1, m m4.0m Ontario comes on board OntarioJan. 1, m m752.7m From co- managed to devolved British ColumbiaFeb. 2, m m345.1m Nova ScotiaJuly 1, m m94.3m Newfoundland and Labrador Nov. 2, m m141.2m Prince Edward Island Oct. 5, m m29.2m YukonFeb. 1, m m4.6m Totaln/a3,620 positions$1,950.0mn/a$509.1m$2,459.1m [1] 7

8  Youth programming ($240m managed by Service Canada)  Aboriginal programming ($245m managed by 80 organizations through ASETS program)  Pan-Canadian programming ($76m): job bank, Labour market information, literacy, foreign credential recognition, occupational classification, trades certification, labour mobility, research  Recent federal retreats from labour market issues: national sector councils; Canadian Council on Learning; skills tables; literacy secretariat  Feeble intergovernmental system  No national labour market research institutes or support for provincial organizations to connect on a pan-Canadian basis 8

9  Provinces expected to chose interventions from: employment assistance services (EAS); skills development; wage subsidy; self employment; or job creation partnerships  15 years of reporting provides limited pan-Canadian synthesis or interprovincial comparison & analysis  51% active Employment Insurance (EI) and 16% reach- back; few under-represented groups  2011/12 646,296 individuals received 962,673 interventions  Slide over time to short term EAS interventions and away from training (from 53% to 83%)  Evaluations demonstrate that skills development is most effective intervention, yet mostly EAS on offer 9

10  LMAs hearkened back to mid-1990s when Ottawa assisted under-represented groups  LMA/LMDA simultaneous implementation was challenging for co-managed provinces  Programs are similar to LMDA services  Even less reporting: only 2 consolidated provincial reports (2008/09 and 2009/10)  More emphasis on skills development vs. EAS compared to LMDAs  Services focused on vulnerable groups  Evaluation report demonstrated strong results 10

11  Focus on governance & management arrangements: ◦ Interagency cooperation or ‘one-stop’ shops ◦ Marketization of service provision ◦ Decentralization ◦ Partnerships and networks  Framework for comparison draws on international literature, especially in European Union and OECD  Almost 100 so far interviews in British Columbia, Alberta, Saskatchewan, Manitoba and Québec  Interviews just completed in Nova Scotia, PEI, New Brunswick and Nfld. & Lab.  Ontario and Ottawa to be approached this fall 11

12  Alberta: services for social assistance (SA) clients and career services for all. Pre-existing cooperation. Political stability.  Québec: coalition of business, labour, NGOs demanding federal transfer. Coalition retained through political changes. Pre-existing integration of employment & SA programs.  Manitoba: 2-tiered SA system. Large aboriginal involvement through ASETS. Political stability.  Saskatchewan: need to update college and SA system. Large aboriginal involvement. Political changes.  BC: parallel fed-prov system until Contracted provincial services. Political changes. 12

13  Alberta and Québec have provincially managed one-stop shops: 57 Alberta Works offices and 150 LEC’s in Québec  Saskatchewan (19) and Manitoba (16) have provincially-run employment offices. SA separate.  LMDA and LMA money managed by same Ministry  72 WorkBC Employment Services Centres, all contracted out. SA offices separate. ED Ministry manages LMA money through different contracts 13

14  Following 2 year consultation British Columbia lets province-wide contracts, choosing 47 prime contractors, all governed by a provincial model  Alberta, Saskatchewan and Manitoba have ‘mixed model’ of civil servants and place- specific contracts with for-profit and NGO involvement  Québec also has ‘mixed model’ but almost exclusively with NGOs who are ‘partners’, not ‘contractors’ 14

15  Alberta and Québec divide policy and service delivery function. Considerable flexibility at regional and local level, using provincially determined framework  Saskatchewan and Manitoba divide authority by business line; local flexibility unclear  British Columbia highly centralized. Business model for EPBC and decision-making on LMA programming managed out of Victoria. Regional and local offices provide input on contractors chosen 15

16  Québec has highly institutionalized structure: CPMT, 17 regional councils, 30 sectoral councils, all set in law  Manitoba has 16 sector councils plus Advisory Council on Workforce Development  Detailed governance model for EPBC. Consultations on BC JobsPlan and regional committees  Alberta and Saskatchewan have adhoc consultations and industry committees as needed 16

17  CPMT putting new structures in place in Québec  Alberta developing an aboriginal workforce development strategy  Saskatchewan and Manitoba (where ASETS organizations and aboriginal population are large) have parallel and cordial relationships, but largely ad hoc arrangements  BC ASETS holders still recovering from implementation of EPBC and loss of federal funding 17

18  LMDA and LMA choices over 17 years have given provinces considerable flexibility  It is provinces- not Ottawa- that have the expertise in labour market matters today  Each has found their own way to connect to their employers and other stakeholders  Huge upheaval of the system through Canada Job Grant agreements: uncertain impact  LMDA review now underway through HUMA committee as well as pan-Canadian meetings: uncertain impact  For sure less provincial flexibility: better or worse programming? 18

19  Policy field has been transformed through bilateral arrangements. Each province has chosen what works for them  Ontario, NS, NB, PEI and Nfld & Lab research concluding  Considerable federal-provincial constitutional and financial interdependence requires improved federal-provincial cooperation than we have now  New partnerships are required ◦ Consolidated F/P/T transfer, simplified accountability ◦ Improved transparency and capacity for research ◦ A renewed Forum of Labour Market Ministers ◦ Institutionalized connections to business, unions, NGOs and ASETS holders (pan-Canadian and within province)  Window of opportunity for change and improvement 19

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