Provincial and territorial labour market ministers are refusing to attend the federal government’s Workforce Summit 2024 in Montréal, citing concerns over unilateral planning and significant funding reductions.
In a statement released today, the ministers expressed disappointment that Employment and Social Development Canada organized the summit without consulting provinces and territories, which they say undermines their role in workforce development.
“An event such as this should not be held without acknowledging each government’s roles and responsibilities and addressing the significant $625 million reduction in Labour Market Transfer Agreement funding in 2024–2025,” the ministers said.
They argue that provinces and territories have unique perspectives and decades of experience in labour market service delivery that could have strengthened the summit’s engagement process and fostered a deeper understanding of complex workforce challenges.
The ministers are urging federal Minister of Employment, Workforce Development and Official Languages Randy Boissonnault and Minister of Finance Chrystia Freeland to recognize that provincial and territorial governments are best positioned to design and deliver workforce programming and to immediately increase LMTA funding.
“The LMTAs are used by provinces and territories to help Canadians find and keep good jobs, especially those who are underrepresented in our workforce,” they stated. “As the majority of this funding is drawn from Employment Insurance contributions made by workers and employers, it is imperative that it be reinvested in publicly funded and localized employment services offered by provinces and territories.”
Amid high inflation, increased unemployment, demographic changes, and rapidly evolving labour market needs, the ministers believe the federal government should be increasing LMTA funding to address pressing workforce challenges.
They criticized Minister Boissonnault’s announcement of federally administered programs, stating these “do not adequately respond to the needs of provincial and territorial labour markets.” They called this “wasteful spending that ignores the proven success of programs funded under the LMTAs and delivered by provinces and territories.”
The ministers pointed to Employment and Social Development Canada’s own unpublished 2022–2023 pan-Canadian report, “Canada’s Labour Market Agreements: Sharing key results with Canadians,” which they say highlights the successes and positive impacts of LMTA-funded programs. According to the ministers, in 2022–2023, 1.2 million individuals were served through the LMTAs, with a social benefit to Canada of $8,200 for each individual assisted.
“Provinces and territories are disappointed that Canada did not release the 2022–2023 pan-Canadian report in advance of the summit so those attending can provide informed input about the role and value of the LMTAs in shaping the workforce,” they said.
By not respecting provinces and territories as key partners, the ministers feel the federal government has ignored the role of the Forum of Labour Market Ministers and missed an opportunity to strengthen federal–provincial–territorial cooperation established over 40 years ago.
“Provinces and territories will continue to prioritize the interests of Canadians by delivering the best workforce programs possible, while urging the federal government to work in true partnership and provide the funding needed to meet the demands of a diverse and modern workforce,” they concluded.
The governments of New Brunswick, Saskatchewan, and British Columbia are in caretaker mode and are not party to this statement.