In response to a significant $625 million cut to Labour Market Transfer Agreements (LMTAs), Atlantic Workforce Ministers convened on June 6 to voice their concerns and demand the Federal Government reverse the decision.
The Federal Budget 2024 introduced a reduction in workforce development programs, which are critical for helping individuals find and maintain employment in sectors experiencing severe labour shortages, including construction, early learning childcare, and healthcare, according to a new release issued by the Government of Newfoundland and Labrador.
These programs provide essential training and support to persons with disabilities, Indigenous Peoples, women, and newcomers, while also assisting employers in meeting their labour needs.
Funding falling to pre-2017 levels: Ministers
This budget cut will revert LMTA funding to pre-2017 levels amidst rising inflation, which continues to affect citizens profoundly. Provinces and Territories were not informed of this cut before the Budget’s release on April 16, 2024, it said.
The reduction, which predominantly affects the Employment Insurance (EI) account funded by Canadian workers and employers, translates to a $62.3 million annual decrease in funding for skills training and employment initiatives in Atlantic Canada.
The federal government has not yet specified where the reallocated LMTA funds will be spent.
Detrimental impact
Atlantic Ministers emphasized the detrimental impact of these cuts on the 120,000 individuals and 8,500 employers and organizations benefiting from these programs annually. They stressed that failing to restore this funding would limit the region’s ability to address current and emerging labour market opportunities and challenges effectively.
The Ministers are committed to ensuring that Atlantic Canadians continue to have access to necessary programs and services for their prosperity, according to the press release.
Ministers also criticized the Federal Government’s claim that other funding sources could replace the LMTA cuts. The assertion that capital gains revenues could offset the $625 million reduction was described as misleading since the capital gains funds will not be fully accessible for at least a year. In the interim, essential LMTA programs and services remain at risk, with no immediate resolution in sight.