Governments of Canada and Saskatchewan sign memorandum of understanding on Canada Job Grant
Helping residents of Saskatchewan get training for guaranteed jobs
OTTAWA, March 21, 2014 /CNW/ - The Honourable Jason Kenney, Minister of Employment and Social Development, and the Honourable Bill Boyd, Minister of the Economy, today signed a memorandum of understanding on the Canada Job Grant.
Announced in Economic Action Plan 2013, the Canada Job Grant is an innovative way of delivering training that will lead to a guaranteed job. It involves employers in training decisions so that Canadians will be equipped with the skills and training they need to fill available jobs. It is designed to be flexible enough to meet the needs of businesses of all sizes, in all industries and regions.
The Canada Job Grant is part of the Government of Canada's commitment to address the paradox of too many Canadians without jobs in an economy of too many jobs without Canadians.
- The number of available workers for every job vacancy (unemployment-to-job vacancy ratio) in Saskatchewan was 2.4 in December 2013, well below the national average of 6.3.
- The hiring plans of Saskatchewan employers remain positive, according to the Canadian Federation of Independent Business, with 29 percent expecting to hire full-time, 62 percent expecting to maintain staffing levels, and only 9 percent expecting to cut back in January 2014.
In the next five years, Saskatchewan expects to need 35,000 new workers
and almost 60,000 replacement workers, according to the 2013 Saskatchewan Employment Forecast. The construction sector is forecast to need 5,500 workers;
transportation and warehousing 6,100 workers; mining, oil and gas 4,800
workers; manufacturing 4,000 workers; and 16,700 workers in other
services for industries such as professional, scientific and technical
services and management of companies.
"Our government's top priorities are creating jobs, economic growth and
long-term prosperity. The Canada Job Grant will ensure that employers
put more skin in the game and that skills training leads to a
guaranteed job. This is good news for the people of Saskatchewan, who
will have better access to training that leads to real, guaranteed jobs
and who will get a better bang for their buck on funding for skills
training. It is also good news for Saskatchewan's economy, because the
Canada Job Grant will increase employer investment in skills training
and help employers train Canadians for jobs that need to be filled so
their businesses can grow and succeed."
- The Honourable Jason Kenney, Minister of Employment and Social Development
"One of the most important challenges Saskatchewan faces in maintaining
its economic momentum is not just ensuring that it has enough workers,
but ensuring that it has enough qualified workers. The Saskatchewan
Plan for Growth positions the province to capture new economic
opportunities and meet the challenges of growth. One of its key
features is an ambitious agenda to educate, train and develop a highly
qualified workforce. The Canada Job Grant will help support skills
training in a labour market that is one of the tightest in the nation."
- The Honourable Bill Boyd, Saskatchewan Minister of the Economy
The memorandum of understanding signed today includes the renewal of the Labour Market Agreement—now renamed the Canada Job Fund—and the creation of the Canada Job Grant.
Canada Job Fund
The current Labour Market Agreements, created in 2007, are being transformed into the new Canada Job Fund to ensure greater employer involvement in training. Nationally, the Government of Canada will continue to provide $500 million annually to the provinces and territories for investments in skills training through the Canada Job Fund. Saskatchewan will continue to receive approximately $16 million—Saskatchewan's per capita share of the $500 million.
The Canada Job Fund will now include $200 million of employer-driven training, which may include funding for the Canada Job Grant or other existing employer-driven training programs. In Saskatchewan, this means approximately $6 million of its Canada Job Fund allocation will be spent on this employer-driven training.
Canada Job Grant
The Canada Job Grant will help Canadians get the training they need for available jobs and put skills training decisions in the hands of employers. It will provide up to $15,000 per person for training costs, including tuition and training materials, which includes up to $10,000 in federal contributions. Employers would be required to contribute on average one-third of the total costs of training.
The provinces and territories will have full flexibility on the source of funds for the Canada Job Grant. They may be sourced from provincial/territorial allocations under the Canada Job Fund, the Labour Market Development Agreements or provincial/territorial sources.
The Grant will be for short-duration training provided by an eligible third-party trainer, such as community colleges, career colleges, trade union centres and private trainers. Training can be provided in a classroom, on site at a workplace or online.
All private and not-for-profit businesses with a plan to train Canadians for a new or better job will be eligible to apply for a Canada Job Grant, once implemented.
The Canada Job Grant will be flexible enough to meet the needs of businesses of all sizes, in all industries and regions. Small businesses will 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 Canada Job Grant will ensure that employers participate meaningfully as partners in the skills training system, sharing in the associated costs. This will ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.
The Canada Job Grant is strongly supported by employers and other stakeholders including:
- The Building and Construction Trades Department, AFL-CIO;
- National Association of Career Colleges;
- Canadian Federation of Independent Business;
- Canadian Manufacturers & Exporters;
- Canadian Construction Association;
- Information Technology Association of Canada;
- Canadian Welding Bureau;
- Engineers Canada;
- Progressive Contractors Association;
- Christian Labour Association of Canada;
- Canadian Home Builders' Association;
- Canadian Shipowners Association;
- Canadian Electricity Association;
- Canadian Institute of Plumbing and Heating;
- Merit Canada;
- Polytechnics Canada;
- Prospectors and Developers Association of Canada;
- Chemistry Association of Canada; and
- Aerospace Industry Association of Canada.
SOURCE Employment and Social Development CanadaFor further information:
Office of the Minister