News release

Call for Stronger Labour Market Development Agreements

Education (July 1999 - March 2013)

Provincial and territorial labour market ministers today called on the federal government to improve access to skill development opportunities for all Canadians.

The call for increased federal support was made in a report, released today, that stresses the value of labour market development agreements (LMDAs), which the ministers say should be strengthened.

Skill Investments for All Canadians: The Future of Labour Market Development Agreements says provinces and territories share a common vision in which all jurisdictions have the tools to meet labour market development needs. Increased federal support is required to meet those needs.

In 1996, through changes to employment insurance (EI) legislation, the government of Canada announced its commitment to negotiate labour market development agreements with provinces and territories. These changes recognized provincial and territorial responsibility for labour market training.

To date, the federal government has signed some form of labour market development agreement with all jurisdictions except Ontario. Through these partnerships, eligible unemployed people are provided with opportunities to enhance their skills and labour market attachment. LMDAs must be broadened to increase skills development opportunities for more Canadians, beyond those who are eligible for employment insurance.

LMDAs give provincial and territorial governments either full or shared responsibility for the design and delivery of employment and training programs in their jurisdictions. Agreements allow each jurisdiction to identify and deliver regional training needs, stimulate employment and generally help unemployed Canadians get back to work.

The ministers agreed flexible and comprehensive LMDAs are needed to facilitate innovative systems of skills upgrading and allow every province or territory to develop and maintain a skilled workforce to compete successfully in the world marketplace. LMDAs provide a model for federal and provincial cooperation in skill development.

The report addresses five areas where the federal government can provide increased support to LMDAS. They include:

  • increasing employment insurance funding allocations by about $700 million to reach the maximum allowed under Part II of the Employment Insurance Act;

  • funding from the Consolidated Revenue Fund in order to provide skill development opportunities to Canadians who are not eligible for employment insurance;

  • allowing more EI recipients to be eligible for skill development programs and services funded under the LMDAs;

  • lowering EI premiums to increase employment; and

  • a return to the negotiating table in jurisdictions seeking an initial or a different labour market development agreement.

Provinces and territories have clear expectations that Human Resources Development Canada will respond to the above key challenges in the federal skills agenda, which is to be released soon.

Copies of Skill Investments for All Canadians: The Future of Labour Market Development Agreements can be obtained by calling 204-945-3746. It will also be available on the Internet at www.edu.gov.mb.ca/tce/carjob/carjob.html