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Human Resources and Social Development Canada
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Human Resources and Social Development Canada Overview
Introduction
The Department of Human Resources and Social Development Canada (HRSDC) was created on February 6, 2006, through the consolidation of the former Departments of Human Resources and Skills Development and Social Development. HRSDC has a broad social and economic mandate, which affects every Canadian. The Department is responsible for providing Canadians with the tools to thrive and prosper in the workplace through access to learning and training opportunities, safe and productive working conditions and labour-management relations, as well as for policies, programs and services that support the social well-being of individuals, families and communities, and their participation in society and the economy.
HRSDC's vision is a strong and competitive Canada that enables individuals to make choices that help them live productive and rewarding lives.
To this end, the Department develops policies that make Canada a society in which all can participate and that ensures that individuals can use their talents, skills and resources to benefit the entire country. The Department creates programs and supports initiatives that help Canadians invest in themselves and move through life's transitions - from families with children to seniors, from school to work, from one job to another, from unemployment to employment, and from the workforce to retirement - and delivers citizen-centred service with integrity, commitment and excellence.
Human Resources and Social Development
HRSDC has over 24,000 employees in the National Capital Region and in regional offices across the country, including more than 20,000 assigned to Service Canada.
To deliver on its mandate, HRSDC provides programs and services to millions of Canadians both as citizens and workers. HRSDC provides income support to Canadians through program benefits that Parliament has legislated, such as the Old Age Security program and the full range of benefits from the Canada Pension Plan. In addition, Employment Insurance delivers temporary income support to unemployed Canadians as well as employment programs and services that enable Canadians to prepare for, find and keep employment.
HRSDC promotes lifelong learning by encouraging workplace skills development in Canadian workplaces, and by developing and disseminating data, information, and knowledge about the labour market. The Department also invests in learning by facilitating access to financial assistance for post-secondary education and adult learning opportunities, and promotes learning by supporting programs that address reducing non-financial barriers to adult learning and literacy and early childhood development.
HRSDC's social policies, programs and initiatives help to ensure that children and their families, seniors, people with disabilities, and others facing social challenges have the support, knowledge, and information they need to maintain their well-being and facilitate their participation in society and the workplace. For example, the new Universal Child Care Benefit will provide choice and flexibility to individuals and families in a way that reflects their different needs and circumstances. The Canada Child Tax Benefit will help eligible families with the cost of raising children and the Universal Child Care Benefit will assist Canadian families as they seek to balance work and family life by supporting their child care choices through direct financial support.
HRSDC promotes and sustains stable industrial relations and safe and effective workplaces within the federal labour jurisdiction. The Department also fosters constructive labour-management relationships, carries out labour-related research, and negotiates and implements trade-related international labour agreements.
Ensuring Canadians have the tools they need to participate fully in the knowledge-based economy and labour market requires the active participation of a multitude of partners with the Department acting as a catalyst. Cooperation with provinces and territories is required, given the shared responsibility for many of the Department's programs and policies. HRSDC works closely with its provincial and territorial partners, building on established relationships through multilateral and bilateral forums. Employers and unions have an important role in workplace skills investments. Promoting socio-economic well-being also involves working in partnership with the voluntary sector and not-for-profit organizations, learning partners, community groups, including official language minority communities, and the private sector to develop integrated programs and provide information and services to Canadians. HRSDC works with numerous international partners to learn and share best practices and approaches to maximizing participation of Canadians in economic and social development.
Service Canada
Service Canada provides, a single-window point of contact for citizens to obtain services from the federal government. The initiative builds on what Canadians have told government they want and on the experiences of "best practices" in service excellence in Canada and around the world. The experiences in other jurisdictions demonstrate that the Service Canada model has a proven track record. Service Canada also builds on over a decade of work within the Government of Canada to improve the delivery of services to Canadians.
Service Canada has been delivering a growing number of services and benefits on behalf of federal departments and agencies and providing Canadians with increased choice and access. Today, the Service Canada delivery network brings together 433 points of service in communities throughout Canada; a national 1 800 O-Canada telephone service providing Canadians with information about all federal government services and 23 other networked call centres; and, a range of on-line services at http://www.servicecanada.gc.ca/en/home.html.
Service Canada is partnering with a number of federal departments and agencies to deliver service on their behalf and is identifying further opportunities to partner with other departments and agencies, other levels of government and community partners to strengthen the quality of service for Canadians and the cost-effectiveness of programs and services. Significant progress has been made to improve service experience and will continue, through an expanded in-person service network, an integrated call centre network encompassing a broad range of service, as well as use of on-line applications.
Strategic Outcomes
HRSDC's programs and services are designed to achieve results across a broad range of social and labour market outcomes. Five strategic outcomes form the structure for reporting plans, priorities and resources in this report:
- Policies and programs that meet the human capital and social development needs of Canadians
- Enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning
- Safe, healthy, fair, stable, cooperative, productive workplaces and effective international labour standards
- Enhanced income security, access to opportunities, and well-being for individuals, families and communities
- Achieve better outcomes for Canadians through service excellence
The following Program Activity Architecture (PAA) diagram is a graphic of the new Department. Modifications to the PAA at the strategic outcome and program activity level are described below. Those that occur at the sub and sub-sub activity level are described in Chapter 2, under each program activity. A summary cross-walk can be found under Other Points of Interest.
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| Vision: |
A strong and competitive |
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| Mission: |
Develop policies that make |
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Enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning |
Safe, healthy, fair, stable, cooperative, productive workplaces and effective international labour standards |
Enhanced income security, access to opportunities and well-being for individuals, families and communities |
Achieve better outcomes for Canadians through service excellence |
Results for Canadians | ||||
| Labour Market | Workplace Skills | Learning | Labour | Social Investment | Children and Families | Housing and Homelessness | Service Canada | |
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Policies and programs that meet the human capital and social development needs of Canadians |
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Policy, Research and Communication |
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Modifications to the 2005-2006 Program Activity Architecture
Policy and program support functions have been grouped to form the new program activity - Policy, Research and Communication. This program activity supports the achievement of the new strategic outcome: "policies that meet the human capital and social development needs of Canadians".
Three program activities - Labour Market, Workplace Skills and Learning - have been grouped to support achievement of the strategic outcome: "enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning".
Two former program activities - Employment Insurance Benefits and Employment Programs - have been combined and now form the new program activity - Labour Market.
Three program activities - Social Investment, Children and Families, and Housing and Homelessness - have been grouped and now support achievement of the strategic outcome: "enhanced income security, access to opportunities and well-being for individuals, families and communities".
The former program activity - Social Investments - has been split into two program activities - Social Investment, and Children and Families.
The Service Delivery outcome is now supported by three program activities, reflecting the broader mandate of Service Canada:
- Seamless, Citizen-Centred Service
- Integrity
- Collaborative, Networked Government Service
Mandate
On February 6, 2006, by means of a series of Orders in Council, made pursuant to the Public Service Rearrangement and Transfer of Duties Act, the control and supervision of the federal public administration within Social Development Canada was transferred to the Department of Human Resources and Skills Development. The powers, duties and functions of the Minister of Social Development were transferred to the Minister of Human Resources and Skills Development, and the Minister was styled as Minister of Human Resources and Social Development. This Minister was also made responsible for the Canada Mortgage and Housing Corporation.
Until new departmental legislation comes into force, the Minister will rely on the provisions of the Department of Human Resources and Skills Development Act and the Department of Social Development Act for specific authorities.
The Department of Human Resources and Skills Development Act defines the powers, duties and functions of the Minister of HRSDC, the Minister of Labour, and of the Canada Employment Insurance Commission. The mandate of HRSDC is to improve the standard of living and quality of life of all Canadians by promoting a highly skilled and mobile labour force and an efficient and inclusive labour market. The Minister of HRSDC has overall responsibility for the employment insurance system, while the administration of the Employment Insurance Act is the responsibility of the Canada Employment Insurance Commission.
The Department of Human Resources and Skills Development Act provides for the appointment of a Minister of Labour who is responsible for the Canada Labour Code and the Employment Equity Act, as well as other legislation on wages and working conditions. The departmental statute provides that the Minister of Labour make use of the services and facilities of the Department. The Act also sets out the mandate of the Minister of Labour to promote safe, healthy, fair, stable, cooperative and productive workplaces.
The Department of Social Development Canada Act defines the powers, duties and functions of the Minister of Social Development Canada (SDC). The mandate of SDC is to promote social well-being and security. In exercising the power and performing the duties and functions assigned by this Act, the Minister is responsible for the administration of the Canada Pension Plan, the Old Age Security Act, and the National Council of Welfare, and the Universal Child Care Benefit Act, among other tasks.
Service Canada operates within the legislative mandate and framework of the current departmental legislation (Department of Human Resources and Skills Development Act and the Department of Social Development Act). Its mandate is to work in collaboration with federal departments, other levels of government and community service providers to bring services and benefits together in a single service delivery network. Although Service Canada does not exist as a distinct legal entity, it has delegated authorities to execute its mandate and functions.
Expenditure Profile
Human Resources and Social Development Canada (HRSDC) includes resources of the former Human Resources and Skills Development and the former Social Development departments. This newly created Department has planned expenditures on programs and services of more than $79 billion, of which $75 billion, or almost 95%, directly benefits Canadians through Employment Insurance (EI), the Canada Pension Plan (CPP), Old Age Security (OAS, loans disbursed under the Canada Student Financial Assistance Act and other statutory transfer payments. The Department has planned spending of $1.2 billion in voted grants and contributions; $33.8 billion in statutory grants and contributions; and, $2.1 billion for Employment Insurance Part II.
The financial strategy for Service Canada establishes that statutory funds, including Employment Insurance, CPP, OAS and voted grants and contributions related to the delivery of specified programs will be allocated annually by HRSDC.
2006-2007 Planned Expenditure Profile
| Budgetary | ||
| Net Operating Costs | 1,014.5 | |
| Add Recoveries in relation to: | ||
| Canada Pension Plan | 246.8 | |
| Employment Insurance Account | 1,411.9 | |
| Workers Compensation | 77.4 | 1,736.1 |
| Gross Operating Costs | 2,750.6 | |
| Voted Grants and Contributions | 1,162.2 | |
| Total Gross Expenditures | 3,912.8 | |
| Other - Workers' Compensation and EI/CPP Charges and Recoveries | 175.3 | |
| Non-Budgetary | ||
| Loans disbursed under Canada Student Financial Assistance Act (CSFAA) | 981.5 | |
| STATUTORY TRANSFER PAYMENTS | ||
| Grants and Contributions: | ||
| Old Age Security programs | 30,575.0 | |
| Other Statutory Payments: | ||
| Canada Student Loans | 399.6 | |
| Canada Education Savings Grant | 575.0 | |
| Canada Learning Bond | 45.0 | |
| Wage Earner Protection Program | 28.7 | |
| Universal Child Care Benefit | 1,610.0 | |
| Child Care - Prov./Terr. Agreements | 650.0 | |
| Others | 0.2 | 3,308.5 |
| Sub-Total | 33,883.5 | |
| Canada Pension Plan benefits | 26,132.3 | |
| Employment Insurance benefits | ||
| Part I | 12,442.0 | |
| Part II | 2,137.5 | 14,579.5 |
| Other Specified Purpose Accounts | 48.3 a | |
| Total Statutory Transfer Payments | 74,643.6 | |
| a. This amount includes payments related to Government Annuities Account and Civil Service Insurance Fund. | ||
The table below reflects the combined planned financial and human resources for the departments of Human Resources and Skills Development and Social Development
| Planned Spending | |||
| 2006-2007 | 2007-2008 | 2008-2009 | |
| Financial Resources (in millions of dollars) | |||
| Operating Expenditures (gross) | 2,750.6 | 2,695.8 | 2,679.8 |
| Non-Statutory Grants and Contributions | 1,162.2 | 1,085.7 | 1,004.6 |
| Statutory Grants and Contributions | 33,883.5 | 35,257.3 | 36,731.0 |
| Total Gross Expenditures | 37,796.3 | 39,038.8 | 40,415.4 |
| Loans disbursed under the Canada Student Financial Assistance Act | 981.5 | 769.1 | 560.8 |
| CPP Benefits | 26,132.3 | 27,496.9 | 28,917.7 |
| EI Part I - Income Benefits | 12,442.0 | 13,058.0 | 13,661.0 |
| EI Part II - Employment Benefits and Support Measures | 2,137.5 | 2,143.1 | 2,143.6 |
| Government Annuities and Civil Service Insurance Payments | 48.3 | 45.4 | 42.7 |
| Total | 79,537.9 | 82,551.3 | 85,741.2 |
| Other Departmental Costs | |||
| EI Doubtful Accounts | 57.0 | 60.0 | 62.0 |
| EI Administration Costs - Other Government Departments | 64.6 | 67.5 | 62.5 |
| CPP Administration Costs - Other Government Departments | 131.1 | 132.8 | 133.9 |
| Workers' Compensation Recoveries | (77.4) | (78.4) | (80.4) |
| Consolidated Total | 79,713.2 | 82,733.2 | 85,919.2 |
| Human Resources | |||
| Full Time Equivalents | 24,274 | 23,661 | 23,513 |
Planning Overview
The Social and Economic Environment
The future of human and social development policies, programs and services in Canada will be influenced by many forces, and there will be many individuals, organizations and governments engaged in helping shape this future. All will need to take stock of at least these factors: globalization, technological change in a knowledge-based society, demographic change, standard of living and quality of life.
Globalization
Today's globalized world influences Canada's economic and social make-up. Growing international trade, emerging economies such as those of China and India, the increasing mobility of goods and individuals, and new communications technology make the world seem smaller than ever, presenting new opportunities and challenges for Canada and its people.
The benefits of globalization include a greater pool of potential customers for Canadian goods and services, as well as more sources for the purchase of goods and services from abroad. On the other hand, globalization also means increased domestic and international competition.
The impact of globalization on the labour market is evident. Although the employment rate has been high in recent years, employment in the manufacturing sector has resumed its long-term downward trend, representing a decreasing share of total employment and shedding nearly 85,000 workers in 2005. In part, this reflects the strong appreciation of the Canadian dollar compared to the American dollar in the past few years, and the influence of developing economies. On the other hand, capital investments in the production and export of energy, mostly in oil sands extraction, as well as investments made in preparation for the 2010 Olympic and Paralympic Winter Games in Vancouver, are contributing to net job growth and strong labour markets in the Western provinces.
Large-scale changes affect communities that strongly depend on traditional employers or industries. Locally-based enterprises are being pressed to respond to globalization pressures by changing the way they operate.
Overall, however, Canada is expected to remain in good socio-economic health in the coming years. A strong labour market, low unemployment rate, good social capital, and sustainable institutions (e.g., families, schools) are all increasingly becoming linked to our relationship with other countries that provide the impetus for the labour market, Canadian families, and sometimes whole communities to adjust.
Technological Change and the Knowledge-Based Society
Technological change continues to transform the way Canadians live and work.The knowledge-based economy has direct consequences on the skills and knowledge required of Canadians, and on their engagement in lifelong learning.
Striking a balance between the skills that youth and immigrants bring to the labour market and the future requirements of employers is essential. About two thirds of new jobs that will become available in Canada over the next ten years will be in management or require some form of post-secondary education. This gradual increase in skills requirements will be generally matched by an increase in the educational attainments of potential workers, since about two thirds of new labour force entrants will have trade certificates, college diplomas or university degrees (Figure 1).
To meet labour market demand for skilled workers and to compensate for the emigration of skilled workers to other countries, improvement in the integration of workers with degrees and diplomas from abroad is required. Recent studies suggest that a 1 percent increase in adult literacy scores would be expected over time to generate a 2.5 percent overall rise in labour productivity and a 1.5 percent rise in per capita GDP. This argues strongly in favour of more substantial efforts to encourage adult learning, including literacy and learning.1
Advancements in information and communication technology have provided industry and government with a medium for innovation in service delivery. Intelligent use of the Internet and information technologies can streamline costs and enhance the way government serves Canadians.
Although technology has the potential to advance social and economic objectives, this can only be achieved through the collaboration of all stakeholders - individuals, governments, community organizations and industry. Access to the internet must also be considered.
Demographic Change
Canada's demographic profile will be heavily influenced by low fertility rates and increasing life expectancy. Population growth in Canada has slowed in recent years and the trend is likely to continue in the foreseeable future (Figure 2).
Canada's population growth is increasingly dependent upon immigration. Between 1991 and 2001, an average of 220,000 persons immigrated to Canada annually. Visible minorities now make up 13.4 percent of the population, and projections are that this will increase to 20 percent by 2017.2 Many immigrants are foreign-trained workers, who are coming from a wider and changing range of countries.
The increase in Canada's natural population (the number of births less deaths) continues to decline, and immigration, which has now become the main source of population growth, will not be sufficient to reverse this trend to meet future labour market needs.
In the past, the economy has benefited greatly from an expanding labour force and continuous increases in the employment rate. In the absence of these factors, Canada will have to rely increasingly on labour productivity growth to raise its standard of living. This trend will be exacerbated by the impending retirement of the baby boom generation. Seniors constitute the fastest-growing age cohort in Canada; the percentage of the population over 65 is projected to rise from 13 percent in 2005 to nearly 24 percent in 2031.3 While there are signs that Canada will adapt to increased pressures on its health system and public pensions, one challenge that may remain is how to foster greater participation and inclusion of seniors in their communities.
Other demographic trends involve the Aboriginal community and the changing nature of Canadian families. In 2001, there were just over one million Aboriginal people in Canada, comprising 3.4 percent of the population. The fertility rate of Aboriginal people is about 1.5 times greater than that of the general population. By 2017, the national proportion of Aboriginal people will increase slightly to 4.1 percent.
Over the past 45 years, family composition has evolved to include new definitions of association, including a greater-than-ever number of non-marital partnerships (Table 1). People are more likely to separate or divorce now than in the past. Fertility rates have dropped, child birth is being delayed until mothers are older, and more children today are born to unmarried parents. More children and adults than ever belong to lone-parent or blended families.
| 1961 | 1981 | 1991 | 2002 | |
| Total fertility rate (average births per woman) | 3.8 | 1.7 | 1.7 | 1.5 |
| Median age at first marriage | ||||
| Brides | 21.1 | 22.5 | 25.1 | 27.0 |
| Grooms | 24.0 | 24.6 | 27.0 | 29.0 |
| Divorces per 100,000 married couples | 180 | 1180 | 1235 | 1050 |
| Common-law couples as percentage of all couples | - | 6.4 | 11.2 | 16.4 |
| Percentage of children born outside of marriage | 4.5 | 16.7 | 28.6 | 36.6 |
| Births to women aged 30+ as percentage of all births | 34.1 | 23.6 | 36.0 | 47.4 |
| Lone-parent families as percentage of all families with children | 11.4 | 16.6 | 20.0 | 25.0 |
| Source: Beaujot, R., and Kerr, D. (2004). Population Change in Canada. Toronto: Oxford University Press. | ||||
Standard of Living
Overall, Canada's economic, labour market and social environments are healthy and prospects for the coming years are positive. Canada ranked fourth out of 177 countries in the 2004 United Nations Human Development Index, a broad measure that includes several social and economic outcomes. Gross Domestic Product (GDP) per capita ranked in the top tier of the Organization for Economic Co-operation and Development (OECD) countries (2004), employment growth since 2000 has outpaced that of Canada's G-7 partners, and Canada has one of the most educated populations in the world. Canada's strong economic and labour market performance has increased the level of income of Canadians and decreased rates of low income.
Since the mid-1990s, Canada has experienced vigorous economic growth and the gains Canadians have made in their standard of living have come in no small part from an increased employment rate. In 2005, Canada saw employment grow by nearly 223,000, keeping the employment rate (the share of the population 15 years of age or over that is working) at 62.7 percent, the highest level on record. As a result, there has been an increase since the mid-1990s in the proportion of total population employed; in 2005, half the population was employed.
In addition, GDP increased by 2.9 percent in 2005 in real terms, at the same rate as in 2004, and a similar increase is expected in 2006 and 2007.4 Canada's labour market is expected to continue to do well in coming years, and the unemployment rate is likely to keep declining. Conversely, labour productivity growth in the Canadian business sector has slowed considerably since 2000, coming to a halt in 2003 - 2004 before rebounding slightly to about one percent in 2005. The Bank of Canada estimates that it will soon return to near its trend growth rate of 1.7 percent annually.5
Recent years have witnessed continued improvements in the income of Canadians. Median after-tax income rose for most Canadian families in 2004, as strong economic growth fostered gains in employment, which in turn boosted labour market income. Canadian families with two or more members had a median income after tax of $54,100, an increase of approximately 2 percent over 2003, after adjusting for inflation. The increase in after-tax income was not shared by all family types. Among "elderly" families, median after-tax income remained virtually unchanged as it also did for "unattached individuals" or single people.
Quality of Life
Quality of life relates to the well-being of individuals, within their families and within their communities. It covers more than material well-being and extends to the social, civic and cultural realms. Overall, Canada has maintained an international reputation for maintaining a high quality of life for its citizens.
Nevertheless, an estimated 684,000 Canadian families were living in low-income households in 2004 - 7.8 percent of total families, down from 8.5 percent in 2003. In spite of the overall improvements in income levels, five groups of Canadians remain at higher risk of experiencing low income, in large part because they often face long and/or frequent spells of unemployment and low-paid work, and tend to have lower education and skill levels. They are:
- lone parents with at least one child under the age of 18
- unattached people aged 45 to 64
- recent immigrants
- Aboriginal people
- people with a physical or mental disability
Among these low-income households, an estimated 865,000 children aged 17 and under, or 12.8 percent of all children, were living in low-income families in 2004. The rate was well below the peak of 18.6 percent in 1996, but up slightly from the low of 12.1 percent in 2001.
Assisting Canadians to find and keep work means providing continued support and skills development. This is key to reducing the risk of low income. Looking ahead, however, Canada's strong economic and labour market performance in 2005 and the positive prospects for the coming years will likely translate into further real income gains for these groups.
Quality of life extends beyond the possession of employment and a liveable income, to include general health, appropriate housing, education a nd learning opportunities, community and social support networks, career development, work-life balance, a sense of belonging and life satisfaction.
For many working families, work-life balance remains a challenge. In 2003, 64.8 percent of families had dual-incomes. By 2005, 67.2 percent of women with children under the age of six were employed. Many lone working mothers find it especially challenging to work and care for their children. The responsibilities surrounding the care of senior family members, which are most often assumed by women, are creating further pressure. These pressures can affect the health and well-being of family members. Along with changes in family structure, they may lead to a greater demand for family-friendly work practices, such as worksite daycare services, and flexible working arrangements.
Quality of life indicators reveal that communities are changing due to increased urbanization and regional migration from east to west. Furthermore, indicators measured across 20 Canadian communities suggest an increased risk of homelessness in Canadian communities, possibly due to decreased vacancy rates in rental housing and record-level housing starts, targeted at the homeownership market. Among those in need of affordable housing, over two thirds are renters.6
Despite these challenges, Canada has a long history of voluntary action within local communities. Canada's thriving civil society is demonstrated by a fairly large and diverse non-profit sector. In 2003, an estimated 161,000 non-profit and voluntary organizations operated in Canada, including daycare centres, sports clubs, arts organizations, private schools, hospitals and food banks. Organizations that are part of the community non-profit and private sectors are key vehicles for well-being and civic participation.
Canada's Socio-Economic Future
Canadians' ability to attain their full potential will continue to be challenged by variables such as education, income level, employability and community capacity. Capitalizing on the opportunities offered by globalization, the knowledge-based economy and changing demographics will require innovative policy-making, collaboration with various partners and a commitment to achieving real results for Canadians.
The following table presents a list of the key contextual indicators that are of interest to HRSDC. These indicators form the basis of the demographic and economic environmental analysis presented above. More details on contextual indicators and the overall indicators framework are shown in the section Performance Measurement Framework.
| INDICATOR | LEVEL | |
| Net population growth, by source | (July 2004 to July 2005) | |
| Total | 0.93% | |
| Natural increase | 0.32% | |
| Net migration | 0.60% | |
| Population dependency rates, by age group | (July 2005) | |
| 19 years or less | 24.3% | |
| 65 years or over | 13.1% | |
| Total | 37.3% | |
| Real GDP per capita (1997 dollars) | $35,900 (annual average 2005) | |
| Participation rate | By age group (2005) | |
| 15 years or over | 67.2% | |
| 15 - 24 years | 65.9% | |
| 25 - 54 years | 86.3% | |
| 55 years or over | 31.5% | |
| Unemployment rate | By age group (2005) | |
| 15 years or over | 6.8% | |
| 15 - 24 years | 12.4% | |
| 25 - 54 years | 5.8% | |
| 55 years or over | 5.1% | |
| Hourly earnings, by education level | Annual average (2005) | |
| Overall | $20.90 | |
| Less than high school diploma | $15.70 | |
| High school diploma or incomplete postsecondary studies | $18.30 | |
| Post-secondary certificate or diploma | $20.50 | |
| University degree | $26.70 | |
| Proportion of the 20-24 year-old and 25-64 year-old population with a high school diploma | (2001) | |
| 20-24 | 75.0% | |
| 25-64 | 65.6% | |
| Proportion of working-age Canadians (16-65) with Level 2 literacy or below | (2003) | 42% |
| The unionization rate defined as the proportion of non-agricultural workers who are covered by a collective agreement (national) | (2005) | 32.2% |
| Incidence of low income - number and percentage of Canadians living with low income (post-tax LICOs) | (2004) | |
| All persons | 11.2% | |
| Under 18 years | 12.8% | |
| 18-64 years | 11.7% | |
| 65 years or over | 5.6% | |
| Proportion of low-income households in census metropolitan areas living in low-income neighbourhoods | (2000) | 11.9% |
| Core housing need | (2001) | 13.7% |
Policy Environment
Introduction
Traditionally, social and economic policies were regarded as pulling in opposing directions. Economic policies were thought to increase prosperity through productivity increases, while social policies focused on redistributing wealth. As such, efficiency and equity were seen to be tradeoffs. This older model of economic growth has been replaced by a newer and more dynamic understanding of how economic and social strategies are mutually reinforcing. Countries where opportunity is more equally distributed tend to grow faster. These countries are also more resilient and adaptable to economic shocks. Societies that sustain their economic growth do so by focusing their policies upon productivity, skills and learning, an efficient labour market and strong social foundations.
Thus, Canada's success at home and internationally is increasingly dependent upon our ability to sustain and improve well-being through economic and social development. If Canada is to reach its potential in the evolving global economy, its policies and programs will need to be guided by recognition that the development of human capital is an important determinant of social and economic opportunity over the life-course of individuals. Canada will also need to rely increasingly on its communities, institutions and networks to identify challenges and opportunities, as well as to develop their own innovative solutions to social and labour market problems.
Investments
Investments in the labour market and in social development can drive long-term economic growth. Such investments expand the capabilities and the range of opportunities for everyone, from early childhood through the entire life-course. They are thus a key to overcoming the entrenchment of disadvantage and exclusion.
Historical concerns about unemployment and inadequate wages and benefits have been the focus of labour market policies. On the learning side, emphasis has been on increasing post-secondary education attainment rates to support economic and social prosperity. However, over the medium term, labour markets will tighten. The challenge will be to find ways to increase the pool of skilled labour and to match it more effectively with unmet demand in key sectors and regions.
Tightening labour markets offer new possibilities for facilitating business and employer interest in tapping into new labour sources such as under-represented groups and investing in the re-skilling of workers. The tight labour market also increases the importance of investing in adult learning and literacy and promoting access to and encouraging saving for post-secondary education. The international experience of economies with advanced aging profiles (e.g. Japan) and that have experienced extreme labour market tightening due to demand growth (e.g., United States) demonstrates that national economic growth connects with individual goals related to employment, inclusion, and financial security.
Social development also provides economic returns. It assists people in acquiring the tools to successfully manage transitions and challenges in their lives. Its focus on prevention and integrated solutions creates efficiencies and reduces costly remedial interventions.
Beyond the rewards of economic prosperity for Canada as a whole, these investments provide a pathway to social development through the increase of individual capital. The Department has the potential to contribute further to this objective in many ways, such as investing in families and children, building on Canada's "knowledge" infrastructure by developing timely and relevant data, information, research, and other evidence to support decision-making over the life-course, working with employers and labour to modernize federal labour standards, investing in communities and working with partners to alleviate homelessness.
Social and Economic Challenges
Enabling Canadians to seize the opportunity of the future will require some dramatic shifts in our policies, programs and partnerships. Moreover, Canada's position in the global market-place and the well-being of Canadians will also depend upon our ability to respond quickly and creatively to the following challenges:
- Participation and inclusion
- Balancing earning and care
- Low income
- Literacy levels
- Supports for adult learners
- Skills gap and skills under-utilization
- Limited community capacity
- Demographic change, including the aging population and declining birth rate
The Department's policy challenge is to play an effective role in enhancing human potential in Canada through economic and social development.
Policies must achieve tangible results for Canadians, including real growth in the standard of living, and improved economic and social outcomes for individuals and families.
Policy Context
HRSDC integrates labour market, learning and social policies to guide departmental approaches that promote sustainable social and economic outcomes for all. Further exploration of regional and sectoral approaches to address challenges will be a key element.
As no one government working alone could achieve goals in all these priority areas, partnerships are essential to success. Today's policy environment demands improved understanding, as well as more effective partnerships, with provinces, territories, international partners, employers, the community nonprofit sector, social partners, labour and other key stakeholders such as educational institutions. Working with other governments is particularly important in areas of shared jurisdiction or mutual interest. HRSDC fosters these relationships through a number of established federal/provincial/territorial forums, working arrangements and bilateral contacts.
As the Department moves forward, it must also respond to Canadians' expectations for the highest level of service, accountability and transparency. Effective accountability and reporting continues to be one of the founding principles for these relationships and for achievement of policy results. Policies and programs must be designed and implemented in ways that achieve tangible results for Canadians. These policies must learn from and adapt international best practices and approaches if Canada's economic and social development is to be sustainable.
Overarching goals:
- Foster participation in the labour market, lifelong learning and society by increasing choice and flexibility, and by supporting decision-making through the development and availability of quality knowledge and information to ensure all Canadians have the opportunity to contribute to, and benefit from, economic and social development.
- Address economic security through measures to: support Canadians in low-income situations in achieving income security; address child poverty and its long-term impacts on social development; address multiple risks and barriers among vulnerable groups at risk of exclusion, including the most marginalized such as disabled and homeless people.
- Balance earning and caring responsibilities of Canadians through policies that support work-life balance, including flexibility of choice in child care, and a comprehensive response to the needs of caregivers.
- Improve skills, including literacy and essential skills, and promote lifelong learning so that Canadians can acquire and continuously develop the skills to meet demand in growing market sectors.
- Support community-based efforts to improve the lives of Canadians by assisting communities, institutions and networks to identify their particular needs and challenges. Develop policy and work in partnership to develop innovative solutions to social problems, such as new tools for achieving self-sufficiency.
- Provide leadership in ensuring worker-management relations are conducive to safe, productive and cooperative workplaces.
The Department participates in a number of international forums and works with international partners on a variety of issues through policy discussions, formal agreements, research and technical cooperation with developing countries. HRSDC ensures that Canada's interests are represented internationally. For example, consistent with its domestic focus to better reflect departmental interest, the Department also participates in international forums such as the Organization for Economic Co-operation and Development (OECD) and the G8 countries on international employment, and learning policy directives, research and knowledge exchange. The outcome of this work feeds into policy development in Canada to ensure that Canada's employment, social and learning policies provide a competitive environment, which makes our labour force attractive to foreign investors.
This year, the OECD launched a new job strategy which will influence labour market and skills development policies for the next ten years in most developed countries. HRSDC hosted the OECD Summit on the New Job Strategy in Toronto in June 2006. HRSDC will continue to work closely with the OECD to ensure that the New Job Strategy becomes a useful tool to assist HRSDC in meeting the human capital challenges of the coming years.
The full and equal participation of women in the labour market and in society remains an important dimension of the renewed focus on human capital. In compliance with Canada's domestic and international commitments, the Department carries out analyses and activities to ensure that policy and program development, implementation and evaluation are designed to support gender equality. Canada must also take into account its domestic and international commitments on broad human rights issues in developing its policies and programs, as well as actively engage other government departments on these issues.
Management Environment
Governmental Context
One of the Government's top priorities is the Federal Accountability Act. On April 11, 2006, the Government introduced Bill C-2 entitled the Federal Accountability Act and published a related Action Plan on measures to strengthen accountability and increase transparency and oversight in government operations. The Act is intended to ensure that the Government of Canada meets, in all of its roles, the highest standards of integrity, effectiveness and accountability. It is currently in Senate review.
Sound management is a cornerstone of effective and accountable government. The Management Accountability Framework establishes the standards for management in the Government of Canada and is the basis for management accountability between departments, the Treasury Board Secretariat and the Public Service Human Resources Management Agency. It is a framework of accountability for deputy heads to ensure that the conditions for good management are put in place to achieve results for Canadians. The Framework consists of 10 essential elements of sound management, accompanied by a series of indicators and associated measures that establish clear expectations and allow departments to monitor performance.
Departmental Context
The Department's financial arrangements include statutory programs, grants and contributions, operating expenditures, program agreements with provinces and territories and statutory transfer payments. The Department has three major sources of funds - the Consolidated Revenue Fund (resources that are annually voted by Parliament and funding for statutory programs), the Employment Insurance Account and the Canada Pension Plan.
Moreover, the Department must manage a wide field of research, policy, program development and service delivery and a broad scope of responsibilities in the areas of social development, labour market development, work relations, learning, income security and other areas.
As well, the Department increasingly must manage in the context of shared outcomes and partnerships with provinces/territories, the private sector, communities, labour, Aboriginal peoples and other partners.
Service Context
Canadians expect timely and convenient service. Around the world, citizen satisfaction and overall confidence in government's ability to deliver improved services is a key pursuit. According to the 2006 Accenture survey "Leadership in Customer Service: Building the Trust", Canada is at the leading edge of the trend to offer citizen-centered services and transform service delivery. The vast majority of Canadians support the idea of accessing a majority of Government of Canada services through a single federal agency and most believe that this approach would improve service.
Parliamentary Context
HRSDC must work effectively with parliamentary oversight bodies such as parliamentary standing committees, the Office of the Auditor General, the Commissioner of the Environment and Sustainable Development, the Privacy Commissioner, the Information Commissioner and the Public Service Commission. In addition, oversight is provided within government by the Treasury Board Secretariat, the Comptroller General and the Public Service Human Resources Management Agency.
Reports that were released by the Auditor General and parliamentary committees and that have recommendations of particular importance to HRSDC management include:
- Report of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities - Study on Employment Insurance Funds, 2005 http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=8982&Lang=1&SourceId=100965
- Report of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities - Study on the Summer Career Placements Program, 2005 http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=8982&Lang=1&SourceId=136509
- Report of the Standing Committee on Human Resources, Skills Development, Social Development and the Status of Persons with Disabilities - The Report on Issues Related to Accessibility for Persons with Disabilities within the Parliamentary Precinct and the Federal Public Service, 2005 http://cmte.parl.gc.ca/cmte/CommitteePublication.aspx?COM=8982&Lang=1&SourceId=121676
- Auditor General of Canada Report 2005, Chapter 4, Managing Horizontal Initiatives http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20051104ce.html
- Auditor General of Canada Report 2006, Chapter 6, Management of Voted Grants and Contributions http://www.oag-bvg.gc.ca/domino/reports.nsf/html/20060506ce.html
Corporate Risks
Setting the Context
The analysis of environmental scans and risk information collected at both the corporate and the program activity levels has resulted in the identification of three key risks and related challenges the Department faces in achieving its objectives and commitments for 2006-2007. The key risk areas are:
- building relationships with external partners and stakeholders
- recruiting and retaining competent and skilled people
- exercising appropriate governance and oversight
The risk information below presents a snap-shot of the most significant risks the Department is facing during the 2006-2007 planning exercise. The key risks and the Department's capacity to manage them were assessed to inform the setting of priorities identified in this report.
Building relationships with our external partners and stakeholders
At risk is the ability to engage in and build the right relationships with external partners and stakeholders to ensure timely progress in the social and economic agenda and delivery on commitments.
The Department faces the challenge of developing effective partnerships to achieve goals for enhancing income security, working with communities, and advancing a skills and lifelong learning policy agenda. This involves many areas of shared responsibility, where the Government of Canada, provincial and territorial governments, Aboriginal peoples, other communities and private sectors all play a role. As mentioned in the Policy Environment Section, partnerships are key to our ongoing success in achieving departmental social and economic outcomes. The complexity of multi-level governance relationships and the increased expectations of stakeholders to play a strategic role in decision-making may affect our ability to ensure timely progress in developing effective policies.
To manage this risk, in addition to continuing close ties with traditional, national stakeholder groups and experts, the Department has been developing federal/provincial/territorial and stakeholder engagement strategies to support knowledge exchange, longer-term collaborative agendas and emerging possibilities for multi-level governance and new partnerships. It will also continue to capitalize on links with other federal departments to effectively engage partners. The priorities and program activities described in this report demonstrate actions to support and enhance partnership-based initiatives to achieve our objectives and strategic outcomes.
Recruiting and retaining competent and skilled people
At risk is the capacity to attract competent and skilled people, and retain and develop them, which may hinder the ability to deliver on commitments and to exercise due diligence.
One of the significant challenges for 2006-2007 is building and strengthening the Department's human resources capacity. HRSDC recognizes that good management and strong organizational performance depend on the capacity of its workforce. The Department is committed to being a leader in change and innovation by enhancing the knowledge and skills of its workforce, while ensuring high-quality policies, programs and services.
There are shortages of skilled and experienced people in several specialized professional communities such as human resources, finance and internal audit and in specific program expertise, as in industrial relations and occupational health and safety. These shortages intensify the challenge of recruiting and retaining highly qualified people.
This challenge is made more complex by the February 2006 reunification of the Department. In the early stages of integration, the uncertainty about roles and responsibilities and organizational change are leading to additional stress and change fatigue. This may affect HRSDC's ability to attract and retain competent people.
To mitigate these risks, considerable work is underway to strengthen human resources management. A department-wide learning strategy, currently being developed, will guide the continued implementation of the Public Service Modernization Act. New integrated business and human resources planning, the identification of optimal strategies for human resources management, and integrated learning and training opportunities for employees are key elements of the strategy.
In addition, the development of a clear vision and mission statement for the Department, involving all employees, is underway. This exercise will help HRSDC better define its role and bring clarity to its mandate. The change brought about by the integration of Human Resources and Skills Development Canada, Social Development Canada, and Service Canada will be guided by a transformation plan that will focus on ongoing and effective organizational and cultural change.
Exercising appropriate governance and oversight
At risk is the ability to exercise appropriate governance and oversight on the stewardship of resources and the state of internal controls within an environment of major organizational changes and evolving accountability relationships.
In the context of high expectations for improved accountability for government programs and services, the Department must continue to manage the challenges associated with an appropriate governance and oversight regime. Expectations include providing improved results-based performance information and assurance on risk management, the state of internal controls, and governance processes. As the Department continues to implement a governance framework to structure the relationship with Service Canada, it is also expected to fulfill the requirements of the new Treasury Board Internal Audit Policy and move towards a Chief Financial Officer model that strengthens financial management. These new requirements may affect our ability to meet all expectations and compliance requirements within the Department and at the government level.
Several strategies will help manage this risk. Strengthening the links among policy development and program design, research and knowledge, program evaluation results, and results-based management approaches will ultimately yield improved outcome measures and results for Canadians. The assessment of the Financial Control Framework and Comptroller's Office capacity for financial oversight will guide the development of strategies designed to manage financial risks. A departmental review of grants and contributions will develop recommendations to increase flexibility in program delivery while maintaining the integrity of grants and contributions programs and activities. Program integrity, clear accountability and effective financial management will continue to be areas of increased attention for senior management.
Conclusion
Improving HRSDC's ability to handle risks and uncertainties is important in the development of effective policies and improved service delivery. As well, the Department continues to strengthen the practice of integrated risk management to effectively manage ongoing strategic and operational risks in delivering services within or through partnerships with other public and private-sector organizations. In pursuit of excellence, risk management, including the monitoring of mitigation strategies, remains a priority for the Department.