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Comment: Job-grant cuts may weaken economy

Canadians in every region of our country have incredible economic opportunities just around the corner.

Canadians in every region of our country have incredible economic opportunities just around the corner. But, each opportunity also comes with a challenge — making sure there are enough skilled workers to meet labour-market demands and keep the Canadian economy marching ahead.

That’s exactly why sa¹ú¼Ê´«Ã½â€™s premiers turned their attention to issues critical to job creation and economic growth at the Council of the Federation meeting held this past July. Our discussions make it clear that while each of our provinces and territories face distinct challenges related to regional economics, demographics and geography, we are united on one key goal. We need to continue to create opportunities for our citizens to access the services and training they need to get good jobs.

With this goal in mind, we emerged from that meeting united and concerned about the federal government’s proposed sa¹ú¼Ê´«Ã½ Job Grant program. If implemented, the terms of the proposed program would effectively remove most of the funding for existing Labour Market Agreement programs and services. This would strip more than $600 million that the provinces and territories harness to connect Canadians with skills — including programs supporting the most vulnerable people in our society, who are most in need of basic skills training.

There’s also a deep concern across the country that the federal proposal — which mandates cost-sharing between the federal government, provincial and territorial governments, and employers — would exclude small business from access to skills-training funding. The reason is simple: The vast majority of small businesses just don’t have the resources to cost-share on training, even though they are the businesses that need it the most.

What do provinces do with the federal funding under the Labour Market Agreements?

British Columbia’s priority has been addressing looming skills shortages and opening up job opportunities for workers in high-demand resource sectors like liquefied natural gas.

In New Brunswick, in addition to providing a new workplace-based essential-skills training program to existing workers, the focus has also been on assisting vulnerable New Brunswickers, connecting social assistance recipients, new immigrants, people with disabilities, members of First Nations and those who are underemployed with training opportunities previously unavailable to them.

Similar activities attuned to the labour market realities in their jurisdictions are getting results in provinces and territories across the country. In fact, a joint federal-provincial-territorial program evaluation of the programming under Labour Market Agreements has found that 86 per cent of clients are employed after leaving the program, compared to only 44 per cent prior to entering the program.

Our two provinces have been tasked by our fellow premiers with trying to find an approach where we could work with the federal government, while making sure the skills and training needs of Canadians are being met. Ultimately, we support a strategy that includes all governments. To achieve this goal, however, we must ensure that changes to employment and training programs are based on evidence of what works in individual regional labour markets. Untested changes to these programs — particularly at a time of acute need in the skilled trades — may threaten our collective ability to meet labour market demands and weaken the Canadian economy.

To move the discussion forward, provincial and territorial labour ministers came together in Toronto on Sept. 24 to seek solutions. They are looking forward to bringing their ideas to a meeting with Employment and Social Development Minister Jason Kenney this fall.

We plan to meet with stakeholders from across the country to get their ideas and input on the path forward for skills training.

The task before us is large, varied and complex. We need an approach to labour-market programs that is flexible enough to ensure each jurisdiction can meet the skills and employment service needs of its citizens in a way that connects directly with local labour market needs and realities.

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Christy Clark is premier ofÌýBritishÌýColumbia. DavidÌýAlward isÌýpremier ofÌýNew Brunswick.