HUMA Committee Report

Mr. Phil McColeman, MP
Chair, House of Commons Standing Committee on
Human Resources, Skills and Social Development and
the Status of Persons with Disabilities
Gatineau, Quebec

Dear Mr. McColeman,

On behalf of the Government of Canada (hereafter, the Government), I am pleased to respond to the report prepared by the House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (hereafter, the Committee) titled “Opportunities for Aboriginal Persons in the Workforce” (hereafter, the Report). I would like to thank all the members of the Committee for their work on this report.

Aboriginal people are a rapidly growing and young population. The unemployment rate for Aboriginal men is 16.8% and 13.3% for Aboriginal women, with an overall total of 15% compared to 7% for non-Aboriginal Canadians. The Government recognizes this and has long worked to address contributing factors by funding a variety of targeted skills development and training supports for Aboriginal people, as well as ensuring that programs exist to address many of the barriers that prevent Aboriginal people’s full participation in the labour market. Combined, these measures are helping to ensure that Aboriginal people are well-equipped to take advantage of economic opportunities as they arise.

The Government acknowledges the broad findings of the Committee’s Report as they align with the Government’s plan for jobs, growth and long-term prosperity outlined in Budget 2014 under Connecting Canadians to Available Jobs and Supporting Families and Communities. Broadly, the Committee recommended that the Government of Canada continue to invest over the long term in Aboriginal labour market programs, with particular emphasis on the Aboriginal Skills and Employment Training Strategy (ASETS), calling for predictable and flexible funding, ongoing support for essential skills, individualized training programs, and educational upgrading programs. In addition, it called attention to the critical role of comprehensive supports and to the importance of employer partnerships and culturally sensitive training.

Indeed, the Report is timely in that it provides valuable information that will contribute to the future design of Aboriginal labour market programming beyond 2015. I am also currently undertaking a series of roundtable meetings with stakeholders across the country that will inform this work. The recommendations contained complement the messages shared during cross-Canada engagement sessions with Aboriginal leaders, organizations and private sector stakeholders

Allow me to outline in greater detail some of the measures the Government has put in place to improve outcomes and opportunities for Aboriginal people in the workforce.

Supporting Essential Skills

The Government recognizes that programs supporting essential skills contribute to an individual’s entry and success in the workforce. Aboriginal populations continue to face complex and persistent challenges which impact their participation in Canada’s economic and social development. Due to various socio-economic barriers, including reduced access to quality education and poorer health outcomes, lower essential skill levels amongst Aboriginal people persist. This skills deficit has continued to impact their ability to enter the workforce or pursue further education. The Government recognizes the importance of addressing this essential skills gap to ensure that Aboriginal people are well equipped to take advantage of opportunities and that Canada is able to ensure the availability of a skilled labour force that is competitive, both domestically and globally.

The Government has a long and successful history of supporting skills development and training for Aboriginal people by working with First Nations, Inuit and Métis organizations to design and deliver tailored labour market programming to meet the unique needs of people in their communities. The Government has invested more than $6 billion in skills development and training for Aboriginal people, through Pathways to Success (1991-1996) and Regional Bilateral Agreements (1996-1999), followed by the Aboriginal Human Resources Development Strategy (AHRDS) (1999-2010) and currently through ASETS (2010-2015). Program funds are provided directly to Aboriginal organizations to design and offer unique and specific, culturally relevant training, and assist clients in adapting to the ever-changing workplace. These programs, in addition to project-based programs such as the Aboriginal Skills and Employment Partnership (2003-2012) and the Skills and Partnership Fund (SPF) (2010-2015) provide workplace and classroom essential skills and other skills development activities that prepare Aboriginal people for sustainable meaningful employment.

The Report speaks to the need for essential skills supports to facilitate entry into post-secondary education and employment. The provision of essential skills is also a key component of the Government’s approach to on-reserve Income Assistance Reform and uses a case-managed, individualized training approach for First Nation youth. This approach allows a foundational focus on essential skills development prior to employment-driven skills and training. The Government is providing $241 million over four years (2013-2017) to support First Nations in identifying and improving a young person’s employability. The Enhanced Service Delivery (ESD) initiative and the First Nations Job Fund (FNJF) are key components of Income Assistance Reform. Once essential skills gaps have been addresses through ESD, the FNJF provides up to one year of training to employment for Aboriginal youth aged 18-24 on income assistance, in participating communities. Income Assistance Reform supports First Nations service delivery organizations in taking a proactive approach in helping clients gain the skills necessary to find and keep a job.

In addition to the above programs, the Government provides access to tools, assessments and training supports to help individuals and organizations address workplace essential skills challenges. The Government also provides funding for a number of other notable projects in essential skills: the Canadian Career Development Foundation is developing a comprehensive inventory of literacy and essential skills initiatives for Aboriginal people; and the Aboriginal Forestry Initiative supports essential skills and mentoring in Aboriginal communities.

Supporting Comprehensive Support Measures

The Committee found that comprehensive supports that address various aspects of an individual’s life contribute to stronger overall labour force attachment. To this end, the Government provides a range of comprehensive services that directly and indirectly support increased opportunities in the workforce.

With respect to comprehensive support measures provided through labour market training, the Government provides a range of funding to provincial and territorial governments for training and skills development programming. Between 2008 and 2014, the Government transferred $500 million per year through the Labour Market Agreements (LMAs). These funds were used to design and deliver labour market programming to increase the participation of unemployed Canadians, for example, Aboriginal people and low-skilled workers. LMAs have been transformed into new six-year Canada Job Fund Agreements, which include the new Canada Job Grant, to encourage greater employer involvement and investment in training to help Canadians, including Aboriginal people, develop the skills needed for available jobs. In addition to the Canada Job Grant, provincial and territorial governments will receive funding through the new Canada Job Fund Agreements to support other employer-sponsored training, as well as for employment supports and services targeted to unemployed individuals not eligible for Employment Insurance and the low-skilled employed. Under the Canada Job Fund Agreements, provincial and territorial governments have the flexibility to design and deliver programs to ensure they address local labour market needs, which may include supports for Aboriginal people.

The Government also provides $2.1 billion in annual funding through Labour Market Development Agreements (LMDAs) to the provinces and territories to support training programs. LMDAs are designed to help unemployed Canadians, including Aboriginal people, quickly find and return to work and to develop a skilled labour force that meets current and emerging needs of employers. Through these agreements, provinces and territories design, deliver and manage skills and employment programs for unemployed Canadians, particularly for those who are eligible for Employment Insurance benefits. Indeed, the LMDAs underpin Canada’s labour market training system by funding an extensive network of employment activities across the country.

The Government provides funding to support youth access to training in the skilled trades. The Government provides Apprenticeship Grants of up to $4,000 to encourage Canadians, including Aboriginal people, to pursue and complete apprenticeship training and become certified journeypersons in the designated Red Seal trades. The Government also provides the Canada Apprenticeship Loan, the Apprenticeship Job Creation Tax Credit, the Tradesperson’s Tools Deduction and the Tuition Tax Credit. Furthermore, the federal government provides funding to Skills Canada to support the promotion of skilled trades and technology as a first-choice career to Canadian youth.

The Government also funds programs for youth through the Youth Employment Strategy with $24 million annually to the First Nations and Inuit Youth Employment Strategy (FNIYES). This Strategy provides work experience, information about and exposure to career options, including in high-demand industries, and opportunities to develop skills to help Aboriginal youth gain employment. The Government is also committed to increasing urban Aboriginal people’s participation in the economy by investing $53.1 M annually in the Urban Aboriginal Strategy for the 2014-2015 and 2015-2016 fiscal years. Through the Urban Aboriginal Strategy, the Government funds a strong stable base of urban Aboriginal organizations, largely through the National Association of Friendship Centres, to work with all orders of government and relevant stakeholders to develop plans, build partnerships and invest in initiatives that strengthen life skills, improve educational attainment, increase labour skills and help urban Aboriginal people overcome barriers to economic participation.

The Government is committed to ensuring that First Nations children living on reserve have access to the same quality education as all other Canadian children. To this end, the Government invests approximately $1.55 billion annually in elementary and secondary education for First Nation students living on reserve. On top of this annual core investment, the Government invested $200 million in Budget 2009 for education infrastructure, and $275 million in Budget 2012 for education programming and infrastructure. In addition, in 2011-2012, the Government invested more than $322 million in post-secondary education to support First Nation and Inuit students across Canada.

In April 2014, following extensive consultations with First Nations parents, schools, teachers and leaders across the country, the First Nations Control of First Nations Education Act was introduced in the House of Commons. The Bill was put on hold, and will not move forward without the stated support of the Assembly of First Nations.

The Government also supports Indspire, formerly the National Aboriginal Achievement Foundation, an organization that provides scholarships and bursaries to Aboriginal students across Canada. Indspire disburses funds to Aboriginal youth across Canada, covering all disciplines such as oil and gas, trades and technology, and health careers. In Budget 2013, the Government announced it would match private sector contributions to Indspire up to $10 million over two years for First Nation and Inuit post-secondary students. In addition to Government support for education, a range of comprehensive supports are available to First Nations on reserve and Inuit communities to address many of the barriers that are present and that contribute to poor economic outcomes. The Government recognizes that culturally appropriate health programs and services improve the health of First Nations and Inuit. Over $2.4 billion annually is invested in First Nations and Inuit health including for primary health care on reserve, as well as non-insured health benefits. The Government of Canada will continue to work with our partners to provide effective, sustainable, and culturally appropriate health programs and services to improve the health of First Nations and Inuit. For instance, mental health and addictions are important health priorities for First Nations and Inuit communities that, without sustained prevention and treatment, will continue to impact workforce development and availability. A national First Nations Mental Wellness Continuum Framework has been developed in collaboration with First Nations and unanimously endorsed by the Chiefs in Assembly in July 2014.

The Government recognizes that access to safe and affordable housing is essential for improving economic and social outcomes and supporting healthy, sustainable Aboriginal communities. Housing influences many aspects of life: individual health and wellbeing, educational achievement, social connections, labour market attachment, and community identity. Canada Mortgage and Housing Corporation (CMHC) provides $1.7 billion in federal funding to meet existing commitments for all Canadians, and supports close to 600,000 households across Canada living in existing social housing. As a whole, the Government of Canada provides an annual investment in on-reserve housing through Aboriginal Affairs and Northern Development Canada (AANDC) and CMHC. In 2014-2015, this planned investment will total approximately $303 million with $157 million in annual support from CMHC and $146 million from AANDC. AANDC also issues Ministerial Loan Guarantees to provide First Nations living on reserve with the security necessary to obtain financing from lenders for housing projects. In addition, in 2007, the Government launched the First Nations Market Housing Fund to help First Nations gain easier access to private lending for homeownership on reserve and on settlement lands. Finally, some $116 million is also provided by CMHC annually to support housing needs of Aboriginal households living off reserve.

The Government recognizes that families are the building blocks of society, and that child care is a priority for Canadian families. This is why the Government provided over $6.8 billion in 2013-2014 in support of early childhood development and child care supports through transfers to the provinces and territories, direct spending, and tax measures for families with children. Included in this amount is direct support for families through the Universal Child Care Benefit and the Child Care Spaces Initiative.

The Report highlights the importance of quality and safe child care for Aboriginal people participating in federal skills and training programs. The Government provides specific supports to Aboriginal parents, and those living in remote First Nations and Inuit communities. The Government provides targeted child care supports by covering dependent care costs through ASETS to assist First Nation, Inuit and Métis parents in covering the costs of child care while they receive essential skills and job-related training through ASETS programming. In addition, the Government provides $55 million per year through the First Nations Inuit and Child Care Initiative (FNICCI) to subsidize a range of child care supports and services for First Nations on reserve and Inuit communities. Using ASETS service delivery organizations to flow funding to identified communities, FNICCI focuses on child care spaces for children under six years old; however, children up to the age of 12 are also eligible for after-school care. FNICCI targets 8,500 child care spaces in over 400 sites across Canada.

Through the National Child Benefit (NCB), the federal government, provincial and territorial governments and First Nations made a commitment to work together to reduce the depth of child poverty, support parents as they move into the labour force, and reduce overlap and duplication of government programs. A component of the NCB is the National Child Benefit Reinvestment (NCBR) which reinvests approximately $52 million per year to provide community-based supports and services for children in low-income families on reserve through five areas: child care, child nutrition, supports for parents, home-to-work transition, and cultural enrichment. Through the NCBR, we hope to reduce the effects of child poverty and decrease barriers for parents and guardians to become or remain attached to the workforce.

In addition, Health Canada is investing $49 million in 2014-15 in the Aboriginal Head Start on-reserve Program to serve more than 6,000 First Nations children in approximately 220 sites in First Nations communities across Canada by funding community-based early childhood intervention programming that addresses the developmental needs of children from birth to six years of age.

Finally, the Aboriginal Head Start in Urban and Northern Communities program is funded at $32 million per year to Aboriginal community-based organizations to deliver ECD programs for First Nations, Inuit and Métis children and their families in urban and northern communities. Each year, 133 sites reach approximately 4,600 children and their families across the country.

Supporting Engagement with Industry Partners to Advance Aboriginal People’s Opportunities in the Workforce

The Government recognizes the importance of employer involvement in training and continues to encourage efforts in this area. The Report also underscores the need for industry groups to invest in labour market programming. Employer involvement in training not only helps the individual in improving skills, but helps workers find meaningful employment. The Government has taken several measures to support engagement with industry partners to advance Aboriginal people’s opportunities in the workforce, while continuing to be respectful of Aboriginal culture.

It is expected that as much as $650 billion will be invested in resource development projects across Canada over the next 10 years. These projects will create jobs, promote growth, and provide economic benefits for generations to come. With a significant land and resource base and growing business sector, Aboriginal communities stand to benefit from the long-term prosperity of these projects.

Aboriginal people have made, and will continue to make, important contributions as full partners in the development of our natural resources. In fact, the natural resources sector is the largest private employer of Aboriginal people in Canada and the success of this sector depends on their full participation, from environmental stewardship to the economic benefits of Responsible Resource Development. It is estimated that nearly 300,000 workers are needed in the natural resource sector over the next decade, creating an unprecedented opportunity for Aboriginal people in the resource sector.

Investments made through the Federal Framework for Aboriginal Economic Development are supporting effective Aboriginal-industry relations in some of the most significant economic opportunities across the country to enable Aboriginal access to employment, training and contract opportunities. Examples include Northern Ontario’s Ring of Fire, Irving and Seaspan shipbuilding in Nova Scotia and BC, Nalcor Energy’s Lower Churchill hydroelectric project in Labrador, and the First Nations Power Authority.

The Government also provides many tools to assist Aboriginal people and businesses to connect with each other through labour market information. Web-based services such as the new Job Bank (www.jobbank.gc.ca) launched March 2014, combines job opportunities with relevant job market information and assist job seekers – including Aboriginal people – find employment opportunities, both locally and across the country.

The federal government supports the enhancement of cultural awareness in the workplace and encourages industry and private sector to promote a positive exchange of ideas and views. One way that this is demonstrated is through the creation of the Mastering Aboriginal Inclusion tool kit that provides support to employers and workplaces in adopting inclusive Aboriginal workplace and human resource strategies within their organizations. ASETS and SPF agreement holders also engage local and regional business and industry partners to increase the number of Aboriginal employees within the businesses and to increase dialogue on cultural awareness from both the Aboriginal perspective and the industry view.

A healthy and competitive business environment, in turn, helps the economy grow, creates new jobs and raises our standard of living. In addition to the above initiatives to encourage partnership with industry and Aboriginal communities, the Government has taken action to position Canada as an increasingly attractive place to invest and grow a business, and recognizes that small businesses are important to Canada’s long-term prosperity. Canadians depend on the jobs they create and the services they provide. That is why the Government continues to provide significant support to small businesses. To encourage the growth of small businesses, the small business tax rate was reduced to 11 per cent in 2008, and the amount of income eligible for this lower rate was increased to $400,000 in 2007 and to $500,000 in 2009. These changes are providing small businesses with an estimated $2.2 billion in tax relief in 2014.

Supporting Aboriginal Labour Market Programming Beyond 2015

Over the next ten years, more than 400,000 Aboriginal Canadians will reach working age, representing a significant opportunity to help meet Canada’s long-term demand for workers. The Aboriginal population is the youngest and fastest growing segment of the Canadian population, with a median age that is 13 years younger than the Canadian population at large, and a growth rate that is four times the rate of the non-Aboriginal population.

The Government recognizes that Aboriginal populations have a critical role to play in Canada’s economic prosperity. The Government funds a suite of labour market programming specifically aimed at ensuring that Aboriginal people have access to skills development and training in order to take advantage of in-demand jobs and meet the needs of employers. Investment in human capital development is key to developing the economic potential of First Nations, Inuit and Métis individuals and communities across Canada.

The Government works closely with Aboriginal organizations and communities to ensure our programming is available to Aboriginal people, regardless of affiliation, status and location, and is adaptable to their needs. As complementary programs, both ASETS and SPF have demonstrated success in assisting clients overcome barriers to employment, such as essential skills, and to gain employment.

Launched in April 2010 and delivered through a network of 85 service delivery organizations with over 600 points of service across Canada, ASETS is funded at $1.68 billion over five years (2010-2015) to provide a full suite of skills development and training supports to Aboriginal people with the aim of enabling them to take advantage of in-demand opportunities. ASETS service delivery organizations design and deliver programming and engage in partnerships with employers and industry representatives to improve labour market outcomes for Aboriginal people. In addition, SPF was launched in July 2010 and is funded at $210M over five years (2010-2015). This project-based opportunity-driven instrument supports training to employment for in-demand jobs, and has the flexibility to respond to skilled labour shortages and is already funding projects that help address employer demand for skilled workers.

Canada’s young First Nation population has tremendous potential for long-term success and economic prosperity, but remains underrepresented in the job market. In addition to ASETS and SPF, the FNJF, a component of the Income Assistance Reform, is investing $109 million (2013-2017) to provide personalized job training and support to young, on-reserve income assistance recipients in participating communities to help them connect with available jobs.

Since fall 2013, the Government has continued its open dialogue with Aboriginal stakeholders across Canada to gain a comprehensive understanding of the successes, challenges and potential gaps in Aboriginal labour market programming through a series of face-to-face regional engagement sessions and bilateral meetings with other key stakeholders across the country. In addition, over summer 2014, I personally met with Aboriginal leaders and organizations and private sector stakeholders across Canada to hear first-hand their ideas on how future Aboriginal labour market programming can better address labour market, skills and employment challenges faced by Aboriginal communities. These discussions have been valuable in contributing to the development of new ideas on future programming.

As we move toward the next iteration of Aboriginal labour market programming, the messages we received directly from stakeholders, coupled with the information presented in the Committee’s Report about the need for essential skills training and comprehensive support services, as well as demand-driven training and employer engagement, will be of great value.

In closing, the Government maintains positive relationships with Aboriginal organizations and I want to assure the Committee that the Government is committed to continue working with Aboriginal organizations – on and off reserve, urban, rural and remote, to ensure that Aboriginal people can play an active role in Canada’s economic and social development. Ensuring that our labour market programs and services are available and accessible to all Aboriginal people and that we have the skilled workers to deliver essential services, and to drive growth and competitiveness is crucial to Canada’s continued prosperity. I would like to commend you and the members of the Committee for their hard work, and extend my appreciation to the witnesses who appeared before the Committee.

Yours sincerely,

 

Hon. Jason Kenney, PC, MP