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Message from the Minister of Human Resources and Skills Development

The 2009-2010 Report on Plans and Priorities for Human Resources and Skills Development Canada (HRSDC) presents the Department's key priorities to support Canadians in these difficult economic times. Our goal is to help Canadian businesses, workers and families succeed, so that Canada emerges from the global recession stronger than ever before.

The Government of Canada truly understands the pressures faced by Canadians. That is why we introduced Canada's Economic Action Plan which will temporarily invest an unprecedented $8.3 billion in the Canada Skills and Transition Strategy. This two-year strategy will help Canadians, unemployed workers and their families with income support and enhanced training opportunities.

As part of this Strategy, we want to ensure income support for unemployed workers while they secure new jobs. We will provide enhancements to Employment Insurance (EI), including extending five extra weeks of benefits, which is now only available in some regions, to all Canadians. We will make a significant investment to facilitate re-employment and encourage training among unemployed, long-tenured workers. We will extend the Work-Sharing program to a maximum of 52 weeks and relax eligibility criteria. We will freeze EI premium rates for 2010 at the same rates as for 2009. An expert panel will be established to consult Canadians on access to EI maternity and parental benefits for the self-employed.

With the right training, people can get good jobs and have better opportunities for themselves, their families and their future. Significantly increasing funding to provinces and territories will allow more Canadians to access the training and skills upgrading they need to land the jobs of the future. We are also proposing additional investments to train and support Aboriginal peoples, older workers, apprentices and foreign-trained workers. Additional funding for the Canada Summer Jobs program and the creation of a grant to YMCA and YWCA for youth internships in the not-for profit and community services sector will provide more valuable job opportunities.

We will also continue to assist families with the cost of raising their children by extending the eligibility for the National Child Benefit Supplement and the Canada Child Tax Benefit. As well, the new Registered Disability Savings Plan helps parents and others set aside funds today to financially support a child with a severe disability when they are no longer able to provide support. To further help individuals, the Working Income Tax Benefit provides income support to low-income working Canadians, and Canada's Economic Action Plan proposes to effectively double the tax relief.

Timely and effective delivery of benefits to support Canadians and their families is a top priority throughout the coming year. HRSDC/Service Canada serves more than 32 million Canadians through over 600 points of service, a national network of 15 specialized call centres, and online capabilities available through our website.

As Minister, I want to help protect the jobs of today, while preparing Canadians for the jobs of tomorrow. I know that my Department is committed to these goals. We are here to help Canadians build a better future for themselves, their families, and their communities.

___________________________________________
The Honourable Diane Finley, P.C., M.P.
Minister of Human Resources and Skills Development

Message from the Minister of Labour

Workplaces are in a state of constant evolution, and never more so than during this period of global economic turbulence.

The Labour Program fosters safe, healthy and productive workplaces and cooperative workplace relations through a wide range of activities. These include mediating resolutions to labour disputes, protecting workers' health and safety, ensuring compliance with minimum labour standards, applying fire safety requirements, promoting workplace diversity and employment equity, processing workers’ compensation claims, negotiating sound international labour standards and agreements, and disseminating workplace information.

A key focus in the coming year will be to ensure that our programs are responsive to the global economic challenges facing Canadian employers and workers. As such, Budget 2009 announced the extension of the Wage Earner Protection Program, which guarantees timely payment of wages and vacation pay to workers whose employer becomes bankrupt or subject to a receivership, to include reimbursement of termination and severance pay owed to eligible employees.

In addition, we will position ourselves to handle potential increases in demand for our services, whether these increases stem from the global economic situation or the large number of collective agreements due to be re-negotiated in the coming year.

Cognizant of the structural challenges facing federally-regulated workplaces, we will also hold consultations with stakeholders aimed at achieving broad agreement on steps to modernize Part III of the Canada Labour Code.

Finally, we will continue to promote Canadian interests and values through the conclusion and implementation of international labour accords that advance basic workers’ rights and protect Canadian businesses from unfair competition.

I look forward to working with employer and labour stakeholders, provincial and territorial colleagues, and international partners to ensure that labour legislation, policies, and programs help Canadians weather this global economic recession and emerge from it stronger than ever.

___________________________________
The Honourable Rona Ambrose, P.C., M.P.
Minister of Labour

Budget 2009 Announcements

The Government of Canada tabled the 2009 Budget on January 27, 2009, outlining its priorities for Canadians for the coming years. The Budget announcements are designed specifically to address the immediate needs created by the global economic downturn and also position Canada for a return to prosperity in the future.

A key pillar of the Government's plan as set forth in the Budget is the Canada Skills and Transition Strategy. The Strategy will provide a major financial investment in a range of initiatives to help Canadians weather today's economic storm, and provide them with the necessary training to prosper in tomorrow's economy. The following elements outline the key aspects of this strategy as they pertain to Human Resources and Skills Development Canada.

Strengthening Benefits for Canadian Workers

Budget 2009 will support Canadian workers affected by the global economic downturn over the next two years by:

• Extending EI benefits by making available nationally, five weeks of additional benefits currently available only in pilot project regions and increasing the maximum benefit duration to 50 weeks from 45 weeks.
• Introducing a pilot project to extend EI income benefits for up to two years for long-tenured workers participating in longer-term training.
• Allowing earlier access to EI benefits for workers who have received severance packages, if they use some or all of that severance to purchase skills upgrading or training for themselves.
• Extending the duration of work-sharing agreements by 14 weeks, to a maximum of 52 weeks, so more Canadians can continue working.
• Extending the Wage Earner Protection Program to cover severance and termination pay owed to eligible workers impacted by employers' bankruptcy.
• Establishing an expert panel to consult Canadians on how to best provide self-employed Canadians with access to EI maternity and parental benefits.

Enhancing the Availability of Training

Budget 2009 will create more and better opportunities for Canadian workers through skills development by:

• Increasing funding for training delivered by provinces and territories through the Employment Insurance program by $1B over two years.
• Investing $500M over two years in a Strategic Training and Transition Fund to help ensure Canadians impacted by the downturn, whether they are EI eligible or not, have access to training and other assistance they need.
• Providing $20M to the Youth Employment Strategy (Canada Summer Jobs) over two years to help young Canadians find summer jobs. In addition, a one-time grant of $15M will be created to place youth interns in not-for-profit and community service organizations.
• Supporting older workers and their families with an additional $60M over three years for the Targeted Initiative for Older Workers and expanding it to include workers in a larger number of communities.
• Responding to skilled labour shortages with $40M a year to launch the $2,000 Apprenticeship Completion Grant.
• Providing $50M over two years for a pan-Canadian foreign credential recognition framework in partnership with provinces and territories.
• Investing an additional $100M over three years in the Aboriginal Skills and Employment Partnership initiative will support up to 25 new projects which will result in up to 6,000 jobs for Aboriginal people.
• Investing $75M in a two-year Aboriginal Skills and Training Strategic Investment Fund — an important step toward implementing a partnership and results based successor to the Aboriginal Human Resources Development Strategy.

Keeping Employment Insurance Rates Frozen

• Freezing EI premium rates at $1.73 per $100 for both 2009 and 2010—their lowest level since 1982—a projected $4.5B stimulus relative to break-even rates.

HRSDC is also implicated in Tax Relief for Canadians. Budget 2009 will deliver personal income tax relief through Finance Canada over 2008—2009 and the next five fiscal years. Effective January 1, 2009, this includes:

• Raising the level at which the National Child Benefit supplement for low-income families and the Canada Child Tax Benefit are phased out, providing a benefit of up to $436 for a family with two children.
• Effectively doubling the tax relief provided by the Working Income Tax Benefit to encourage low-income Canadians to find and retain a job.

Section I - Departmental Overview

1.1 Introduction

The Report on Plans and Priorities is Human Resources and Skills Development Canada's key planning and priority document. It provides an overview of the work of the Department, the challenges it faces and the expected results for 2009-2010. It also summarizes planned expenditures and outlines performance measurement activities that the Department will use to demonstrate results to Canadians.

1.2 Raison d'être and Responsibilities

Human Resources and Social Development Canada was established in 2006 and was subsequently renamed Human Resources and Skills Development Canada (HRSDC) in 2008. The Department receives its authority through two acts; the Department of Human Resources and Skills Development Act and the Department of Social Development Canada Act (see section 3.5 for more details).

HRSDC is the federal department that is responsible for helping Canadians build a stronger and more competitive Canada. The Department also supports Canadians in making choices that help them live productive and rewarding lives. The ultimate goal of the Department is to improve the quality of life of all Canadians.

The Department has a broad mandate that is delivered through three business lines. These include policies and programs that support human resources and skills development, the delivery of Government of Canada programs and services to citizens through Service Canada, and the application of labour laws and policies in federally regulated workplaces through the Labour Program.

In addition to the activities of HRSDC, the Minister is also responsible for Canada Mortgage and Housing Corporation (which issues its own Annual Report). A Minister of State for Seniors ensures that seniors' issues are addressed by the Department.

HRSDC employs over 24,000 people to deliver a wide range of programs and services that touch the lives of Canadians throughout all stages of life. The Department's activities account for almost one out of every three dollars spent by the federal government.

The human resources, skills and social development policy and program responsibilities play an important role in ensuring that the Canadian economy remains competitive and productive, and that Canadians can fully participate in economic and social life across the country. The Department works with provinces, territories, partners and key stakeholders, to deliver results for Canadians. HRSDC delivers social policies, programs and benefits to ensure that children, families, seniors, people with disabilities, homeless people and those at risk of becoming homeless, communities and others facing social challenges have the support, knowledge, and information they need to maintain their well-being and facilitate their participation in society.

A key principle of excellence for the Department is achieving results for Canadians through engagement. Partners and stakeholders add value to finding innovative ways to develop and deliver the policies and programs that Canadians need.

The Labour Program focuses on some 1 million Canadians (about 9 percent of the workforce) who work in federally regulated industries such as telecommunications, air transportation, railways, ports, and postal and courier services. Employers and unions in these areas look to the Labour Program to facilitate constructive labour relations; to promote and protect workplace health and safety; and to provide customized information on industrial relations and collective bargaining. Individual employees in the federal jurisdiction also depend on Labour Program services — whether it is those who are dismissed or not properly paid their wages, or those who have no union to represent them. Internationally, the benefits of trade liberalisation are complemented by Labour Program activities to address the social dimensions of globalisation, including promoting respect for international labour standards, representing Canada in organizations dealing with labour issues, and negotiating bilateral labour agreements and cooperative frameworks with partners on various continents.

Service Canada provides a seamless, integrated service delivery network that offers Canadians access to more than 70 government programs and services including Employment Insurance, the Canada Pension Plan, Old Age Security, Passport Receiving Agent Services and Social Insurance Number. It employs approximately 18,000 employees in the National Capital Region and across Canada. It is supported by regional offices, 110 processing sites and 15 call centres. Canadians can now access Government programs and services in person at more than 600 points of service across the country, by phone (1-800-O-Canada) or on-line through the Government of Canada website (www.Canada.gc.ca). Since its inception in 2005, Service Canada represents the single most fundamental reform in the Government's approach to delivering programs and services to citizens.

1.3 Program Activity Architecture

The Department's Program Activity Architecture is a representation of the programs offered by HRSDC and the results (Strategic Outcomes) that the programs are designed to achieve for Canadians. The Program Activity Architecture also includes a Program Activity for services that are internal to the Department and are important in supporting the achievement of the Department's Strategic Outcomes.

The following table provides a crosswalk identifying changes between the 2008-2009 Program Activity Architecture and the 2009-2010 version.

Program Activity Architecture Crosswalk

Strategic Outcome		Program Activity
2008-2009	2009-2010	2008-2009	2009-2010
Policies and programs that meet the human capital and social development needs of Canadians	Internal Services	Policy, Research and Communications	Internal Services
Enhanced Canadian productivity and participation through efficient and inclusive labour markets, competitive workplaces and access to learning	A skilled, adaptable and inclusive labour force and an efficient labour market	Labour Market	Skills and Employment
		Workplace Skills
		Learning	Learning
Safe, healthy, fair, stable, cooperative, productive workplaces and effective international labour standards	Safe, fair and productive workplaces and cooperative workplace relations	Labour	Labour
Enhanced income security, access to opportunities and well-being for individuals, families and communities	Income Security, access to opportunities and well-being for individuals, families and communities	Social Investment	Income Security
		Children and Families	Social Development
		Housing and Homelessness
Achieve better outcomes for Canadians through Service Excellence	Service Excellence for Canadians	Seamless, Citizen-Centred Service	Citizen-Centred Service
		Integrity	Integrity and Processing
		Collaborative, Networked Government Service	Internal Services
Supports all Strategic Outcomes			Internal Services

 

Results for Canadians

Vision: Build a stronger and more competitive Canada, to support Canadians in making choices that help them live productive and rewarding lives, and to improve Candians' quality of life.
HRSDC Program Activity Architecture
Strategic Outcomes
A skilled, adaptable and inclusive labour force and an efficient labour market		Safe, fair and productive workplaces and cooperative workplace relations	Income security, access to opportunities and well-being for individuals, families and communities		Service Excellence for Canadians
Program Activities
Skills and Employment	Learning	Labour	Income Security	Social Development	Citizen-Centered Service	Integrity and Processing
Sub-Activities
Employment Insurance Inclusive Labour Force Skilled Labour Force Labour Market Efficiency	Student Financial Assistance Canada Education Savings Program	Mediation and Conciliation Workplace Safety, Standards and Equity International Labour Affairs Workplace Information	Old Age Security Canada Pension Plan Canada Disability Savings Program National Child Benefit	Homelessness Partnering Stategy Social Development Partnership Program New Horizons for Seniors Program Universal Child Care Benefit Enabling Accessibility Fund Federal Elder Abuse Initiative	Government of Canada Information to Citizens Applications Intake Identification and Authentification Client Feedback Management Marketing	Integrity Individual Benefit Processing Service Processing
Internal Services
Management and Oversight Services Communications Services Legal Services Human Resources Management Services			Financial Management Services Information Management Services Information Technology Services Real Property Services Materiel Services		Acquisition Services Travel and Other Administrative Services

1.4 Strategic Outcomes

1.4.1 A skilled, adaptable and inclusive labour force and an efficient labour market

A key component of building a stronger and more competitive Canada is a skilled labour force, able to adapt to the changing demands of the labour market. Reducing barriers to labour market participation and integration, as well as to post-secondary education, helps create a more inclusive labour force.

To this end, the Department provides a wide array of program offerings to achieve the Strategic Outcome, including programs that:

• provide temporary income support to eligible unemployed workers;
• increase skills development opportunities;
• reduce barriers to participation of under-represented groups in the labour force (Aboriginal people, older workers, people with disabilities, and other groups);
• reduce barriers to inter-provincial labour mobility;
• improve the recognition of foreign credentials;
• encourage Canadians to save for post-secondary education; and
• provide financial assistance to students.

Key to the Department's success in delivering these programs are collaborative relationships with businesses and labour representatives provinces and territories, Canadian financial institutions, Aboriginal organizations and other stakeholders.

1.4.2 Safe, fair and productive workplaces and cooperative workplace relations

Safe, fair, productive workplaces and cooperative workplace relations are central to the well-being of individual Canadians and the economic prosperity of the country. The Department, through the Labour Program, develops and implements innovative policies and programs that respond to evolving workplace realities. Specifically, the Labour Program:

• provides mediation and conciliation services;
• promotes occupational health and safety;
• ensures respect for minimum labour standards;
• provides fire protection, equity and workers compensation services within the federal jurisdiction;
• develops labour legislation, regulations and policies to achieve an effective balance between workers' and employers' rights and responsibilities; and
• collects, analyzes and disseminates information on workplace practices and collective agreements.

The Labour Program also manages Canada's participation in international labour forums and negotiates and implements international labour agreements to advance Canada's interests and values abroad.

1.4.3 Income security, access to opportunities and well-being for individuals, families and communities

The Department is responsible for an array of programs that provide support to individuals, children, seniors, families and communities. In support of this Strategic Outcome, the Department's work includes:

• administering Canada's public pension system to ensure that Canadians are provided with retirement pensions, survivor pensions, disability benefits, as well as benefits for children;
• delivering various social programs for vulnerable Canadians, including support for homeless people and those at risk of becoming homeless, and programs for children, families, seniors, communities, and people with disabilities. These programs provide Canadians with the support, knowledge, information, and opportunities to move forward with their own solutions to social and economic challenges;
• ensuring children in low-income families get the best possible start in life; and
• promoting full participation of Canadians with disabilities in learning, work and community life.

1.4.4 Service Excellence for Canadians

Through the Service Canada Initiative, the Department provides Canadians with a single point of access to a range of information, services and benefits on behalf of the Department and other government departments and agencies. Service Canada's service delivery network provides Canadians with access to more than 70 Government of Canada programs and services, which are accessible in person, at more than 600 points of service across the country, by phone (1-800-O-Canada), by mail and on-line at www.servicecanada.gc.ca.

Service Canada's commitment to service excellence is reflected in how well it is able to respond to the changing needs and expectations of individual Canadians, and by how efficiently and effectively it delivers services. Service Canada depends on research and the feedback of Canadians to improve its ability to provide the right services at the right time in the right way.

1.5 Planning Summary

For 2009-2010, the Department has planned expenditures on programs and services of more than $94.7B. Of that amount, $89.5B directly benefit Canadians through statutory transfer payment programs, such as Employment Insurance, Canada Pension Plan, Universal Child Care Benefit, Old Age Security, as well as loans disbursed under the Canada Student Financial Assistance Act.

Financial Resources

Financial Resources	2009-2010	2010-2011	2011-2012
($ millions)	94,719.8	97,964.7	98,899.8

 

Human Resources

Human Resources	2009-2010	2010-2011	2011-2012
Full-Time Equivalents (FTEs)	24,508	24,422	24,400

CONSOLIDATED TOTAL: $94,719.8M

Click here to enlarge

Human Resources and Skills Development Canada - Gross Expenditures (in millions of dollars)

Budgetary
Net Operating Costs		1,019.7
Add Recoveries in relation to:
Canada Pension Plan	247.4
Employment Insurance Account	1,249.6
Workers' Compensation	102.5
Other Government Departments	13.4	1,612.9
Gross Operating Costs		2,632.6
Voted Grants and Contributions		2,011.3
Total Gross Expenditures		4,643.9
Other – Workers' Compensation and EI/CPP Charges and Recoveries		538.3
Non-Budgetary
Loans disbursed under Canada Student Financial Assistance Act (CSFAA)		596.0
Statutory Transfer Payments (in millions of dollars)
Grants and Contributions:
Old Age Security		26,549.0
Guaranteed Income Supplement		8,091.0
Allowance		557.0
Other Statutory Payments:
Universal Child Care Benefit	2,544.0
Canada Student Loans	767.9
Canada Education Savings Grant	626.0
Canada Learning Bond	43.0
Canada Disability Savings Program	5.2
Wage Earner Protection Program	56.2
Others	0.1	4,042.4
Sub-Total		39,239.4
Canada Pension Plan benefits		30,743.0
Employment Insurance benefits
Part I	16,292.0
Part II	2,627.8	18,919.8
Other Specified Purpose Accounts		39.4a
Total Statutory Transfer Payments		88,941.6
a This amount includes payments related to Government Annuities Account and the Civil Service Insurance Fund.

 

Strategic Outcome 1: A skilled, adaptable and inclusive labour force and an efficient labour market

Performance Indicators	Targets
Percentage of the Canadian Labour Force (aged 25-64) with some post-secondary education	70.5%
Percentage of Canadians (aged 25-64) who have attained a post-secondary education certificate, diploma, or degree	61.8%
Percentage of adult workforce who participate in employer-supported job-related training and other job-related formal training (Source: Adult Education Training Survey)	Current level 2002 : Employer-supported job-related 25% Other Job-related: 34.7%
Percentage of unemployed individuals who were unemployed for 53 weeks or more (Source: Labour Force Survey)	Current level 2007-2008 : 4.1%
Employment Ratio (employed population in proportion of the working-age population) (Source: Labour Force Survey)	Current level 2008 : 72.9%
Average proportion of EI regular benefits entitlement used (Source: EI Administrative data)	Current level 2006-2007 : 59.7%

Program Activity	Forecast Spending 2008-2009 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada Outcomes
		2009- 2010	2010- 2011	2011- 2012
Skills and Employment	17,315.5	21,148.1	21,262.5	18,679.3	Income Security and Employment for Canadians
Learning	2,137.6	2,159.1	2,093.7	1,981.0	An innovative and knowledge based economy
Total Planned Spending	19,453.1	23,307.2	23,356.2	20,660.3

 

Strategic Outcome 2: Safe, fair and productive workplaces and cooperative workplace relations

Performance Indicators	Targets
Number of problems with well-addressed strategies	100%

Program Activity	Forecast Spending 2008-2009 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada Outcomes
		2009- 2010	2010- 2011	2011- 2012
Labour	244.6	271.2	274.5	253.0	A Fair and Secure Marketplace
Total Planned Spending	244.6	271.2	274.5	253.0

 

Strategic Outcome 3: Income security, access to opportunities and well-being for individuals, families and communities

Performance Indicators	Targets
Number and proportion of individuals 65 years and older, who had low family income	2006 (actual numbers reported) — 219,000 — 5.4% of all seniors
Number and proportion of individuals aged 65 years and older, who would have had low income without public pension support.	2006 (actual numbers reported) — 1,946,540 — 47.8% of all seniors

Program Activity	Forecast Spending 2008-2009 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada Outcomes
		2009- 2010	2010- 2011	2011- 2012
Income Security	62,326.7	66,011.9	69,174.9	72,823.4	Income security and employment for Canadians
Social Development	2,773.9	2,769.0	2,806.0	2,822.4	A diverse society that promotes linguistic duality and social inclusion
Total Planned Spending	65,100.6	68,780.9	71,980.9	75,645.8

 

Strategic Outcome 4: Service Excellence for Canadians

Performance Indicators	Targets
Client Satisfaction Survey's global result	84%

Program Activity	Forecast Spending 2008-2009 ($millions)	Planned Spending ($millions)			Alignment to Government of Canada Outcomes
		2009- 2010	2010- 2011	2011- 2012
Citizen-Centred Service www.servicecanada.gc.ca	489.6	474.5	467.2	464.1	Government affairs
Integrity and Processing	561.7	553.5	551.5	549.2	Government affairs
Total Planned Spending	1,051.3	1,028.0	1,018.7	1,013.3

1.6 Socio-economic Context, Risks and Departmental Priorities

The recent downturn in the Canadian economy is putting an increasing number of Canadians at risk in terms of their ability to maintain employment and a reasonable standard of living. This is driving the Department's priorities for 2009-2010.

In the past several years, positive economic conditions characterized the Canadian economy and labour market. High commodity prices and strong domestic and international demand translated into job creation, business investments, government surpluses and strong consumer spending on goods and services. In contrast, this year, the financial crisis and the economic slowdown in the U.S. and other industrialized economies are having an impact on the demand for Canadian exports and prices for commodities have dropped sharply. As a result, the Canadian economy is beginning to feel the effects of a significant economic downturn and is expected to face rising unemployment and declining government revenues. Unemployment is on the rise as a result of substantial job losses in Canada's automotive, forestry and manufacturing sectors. Consumer and business confidence are at their lowest levels since 2001.

A key challenge in this changing environment is for HRSDC to remain responsive and meet the emerging needs of Canadian workers, employers and the labour market, by adapting the focus of programs and maintaining the quality of its services. The Department has important statutory programs for Canadians that automatically expand to address increased demand that might occur -- including Employment Insurance, Canada Student Loans, Old Age Security, and the Guaranteed Income Supplement. It must respond to the needs of those who require assistance and accommodate growing processing volumes as a result.

A Skilled, Adaptable and Inclusive Labour Force and an Efficient Labour Market

Rising unemployment will lead to increased reliance on income support provided through the Employment Insurance program and increased demand for a range of labour market programming from both employers and workers. For 2009-2010, this means the Department must focus on its ability to respond in a timely fashion to this growing demand from Canadians who are being affected by the economic downturn.

For HRSDC, which provides various forms of labour market assistance, the implications of increased unemployment at a time of declining government revenues are complex and pose significant risks. In positive economic circumstances, the focus of employment programs tends to be on addressing skill shortages and the needs of individuals who have particular difficulties integrating into the labour market. The Department must now ensure responsiveness to short-term labour market challenges while also maintaining its momentum on addressing the longer-term skills and labour requirements that will contribute to a stronger and more competitive Canada. In the context of a rapidly changing economic and business landscape, short-term financial assistance and adjustment measures are increasingly needed to help laid-off workers weather the downturn and ensure effective transitions which help workers reenter the labour market.

Canadians who are most at risk during normal economic conditions, such as Aboriginal people, people with disabilities, youth, the working poor and older workers, are at risk of becoming further marginalized during tough economic times. For example, older workers may want to delay retirement and remain in the labour market longer, while employers may use early retirement as a tool to reduce current workforce levels in efforts to save money. For the working poor and their families, making ends meet can become an even greater challenge with reduced employment income. In other cases, workers with long histories of employment may find themselves permanently laid off and therefore in need of transitional assistance or re-skilling opportunities in order to pursue alternative careers. Aboriginal people who have less attachment to the labour force than many Canadians, may also find it difficult to enter or remain in the labour market.

Workers without post-secondary education are at greater risk of unemployment or layoffs. Under current economic conditions post-secondary enrolment and participation is expected to increase as students delay graduation and the tougher labour market conditions encourage people to upgrade their skills and go back to school. In the short term, the current slowdown is likely to increase the demand for student loans, decrease savings for future education, and increase demand for repayment assistance as more borrowers experience difficulty repaying their student loans.

Younger workers may find it difficult to find employment as employers are cutting back on the hiring of graduates and younger workers in an effort to manage operating costs. Further, recent hires are often the most likely to lose their job during economic slowdowns.

At the same time, HRSDC's approach must remain balanced. The Department must continue to keep an eye on longer term trends. For example, there is an ongoing need for Canada to invest in skills development and to attract and retain skilled immigrants. Historically, Canada has successfully used its ability to attract immigrants to counterbalance slowing labour force growth. However, immigrant employment rates are below those of other Canadians, and their relative earnings are lower. In the current context, there exists a heightened need for credential recognition of immigrants in the Canadian labour market and literacy skills among immigrants to ensure that they are on an equal footing with all other Canadians in their ability to compete in the labour market.

As a result, in 2009-2010, a priority for the Department will be to ensure programming is responsive to the economic downturn so that Canadian workers are able to receive the income support, adjustment assistance and skills investments required. Details of the plans in this area are presented in Section 2 of the document.

Safe, Fair and Productive Workplaces and Cooperative Workplace Relations

In the context of the economic downturn, there is a heightened need for employers, unions, and employees to work together to ensure that Canadian workplaces are able to respond to a rapidly-changing environment while protecting the rights and working conditions of employees. Challenging economic times are likely to result in increased demand for services in areas such as the protection of minimum employment standards and the payment of wages owed to former employees of struggling or bankrupt companies.

From a labour relations perspective, there are a large number of collective agreements currently up for negotiation in the federal jurisdiction. The economic downturn could increase tensions at the bargaining table, which will require close monitoring and, potentially, entail a growing workload for the Labour Program's mediators in order to encourage timely dispute resolution.

As a result, in 2009-2010, a priority for the Department will be to help Canadian workers and employers to maintain workplace safety, productivity, and cooperation throughout the economic downturn by providing relevant and timely services and support. This includes the Wage Earner Protection Program where there is a potential for increased demand. Details of the plans in this area are presented in Section 2 of the document.

Income Security, Access to Opportunities and Well-being of Individuals, Families and Communities

Income security is important to all Canadians. In particular, seniors may find their opportunities limited, especially those who want to remain in or return to the workforce. As a result, the Department must continue to deliver consistently, and in a timely manner, programs such as the Canada Pension Plan and Old Age Security.

Difficult economic times also have significant implications for families and children. Even during the positive economic conditions of the past decade, the gap in disposable income between richer and poorer Canadian families has widened. While already a cause for concern, this income gap risks increasing further during an economic slowdown, as unemployment affects many middle income Canadians, pulling them to lower income levels.

Further, economic experience demonstrates that poverty rates for children and families and working age adults track the business cycle. We can expect the poverty rates for these groups to rise again within the current cycle with high risk groups being the first to experience difficulties.

Demographic trends pose challenges as they continuously alter the Department's clientele and demand for services. For example, it can be expected that an older demographic will mean an increase in the number of clients for Old Age Security and Canada Pension Plan.

In the face of an aging society, increasing pressure will also be placed on families to meet their caregiving responsibilities for aging family members. Increasing choice through supports for Canadians and their families that help relieve some of the time and financial pressures Canadians face will build resiliency and increase independence.

As a result, in 2009-2010, a priority of the Department will be to assist Canadians through targeted and modernized income security and social development measures for vulnerable populations (seniors, people with disabilities, homeless people and those at risk of becoming homeless, and communities). Details of the plans in this area are presented in Section 2 of the document.

Service Excellence for Canadians

Through the Service Canada Initiative, the Department has a direct role in improving the day-to-day quality of life of Canadians by delivering some of the Government of Canada's most fundamental services and benefits. Over the next year, it will continue to maintain a focus on responsive and effective service delivery approaches to ensure citizen access to the government information, programs and services, essential to meeting their changing needs.

The current economic downturn is resulting in increasing numbers of unemployed workers and a growing workload in terms of Employment Insurance applications and processing. Service Canada, as the face of government service delivery in communities across the country and through which the Department delivers its programs to Canadians, will continue to direct its efforts to anticipating and serving these emerging priority needs at the local and regional levels. By ensuring the most effective "bundling" of government resources and support around the needs of individuals, the Department will be a key enabler in assisting Canadians to meet their immediate needs and be better positioned to take advantage of opportunities that arise.

The Department also expects to see the number of requests grow for labour market information, and must be ready to respond and deliver programs to help workers adjust to the new labour market reality as swiftly and easily as possible.

To ensure its capacity to meet citizen service demands, the Department will continue to align resources and leverage its partnerships and business capacity expertise so that its operations remain sustainable, affordable and centred on core business objectives. A strong focus will be placed on ensuring service standards are maintained during these difficult times so that citizens continue to receive the information, services and benefits they need in a timely and reliable manner.

Further, the Department will work to ensure overall service quality and integrity, which includes emphasizing core service delivery values, such as personalization, open communication, security and privacy of personal information, while moving forward on its commitment to continuously improve service to Canadians.

As a result, in 2009-2010, a priority of the Department will be to ensure it can respond to increased demand for services from existing programs while ensuring the integrity of these same programs. Details of the plans in this area are presented in Section 2 of the document.

Internal Services

Internal services include key functions that support the management of the Department. These include, for instance, financial services, human resources management services and the management of information and communication technologies.

For example, essential for HRSDC is ensuring that internal resources are aligned to effectively support any new demands that may be placed on the Department as a result of the economic downturn. This includes the streamlining of grant and contribution processes and also ensuring that staff receives the training they need to better serve Canadians.

In addition to finances, human resource considerations are foremost in ensuring the Department is well positioned to address challenges as they arise. The development of resourcing plans and approaches to ensure the Department can maintain an adequately skilled staff complement that is able to adjust to varying job requirements is fundamental to a well functioning department.

At a time when many employees are retiring, the Department will continue to invest significant efforts to ensure appropriate knowledge transfer from those who are preparing to retire to remaining personnel and new recruits.

As with many Canadian organizations, HRSDC is increasingly relying on information and communication technologies to deliver its programs and services. Maintaining a sound and robust technological infrastructure — one that is secure and reliable and ensures efficiency of business operations — is fundamental to maintaining the confidence of Canadians in general and clients in particular.

As such, in 2009-2010, a priority of the Department will be to ensure its internal services support the organization's core business and priorities. Details of the plans in this area are presented in Section 2 of the document.

1.7 Expenditure Profile

The figure below illustrates Human Resources and Skills Development Canada trend from 2005-2006 to 2011-2012. For the 2009-2010 fiscal year, Human Resources and Skills Development Canada plans to spend almost $95 B to meet the expected results of its program activities.

For the 2005-2006 to 2008-2009 periods the total spending includes all Parliamentary appropriation and revenue sources, Main Estimates, Supplementary Estimates. For the 2009-2010 to 2011-2012 periods, total spending corresponds to the planned spending.

The increase in the actual spending from 2005-2006 to 2006-2007 is mainly attributable to statutory payments with the implementation of the Universal Child Care Benefit in fiscal year 2006-2007 ($1.7 B) , an increase in the Canada Pension Plan Benefits ($1.1 B) and Old Age Security ($1.3 B).

From 2006-2007 to 2007-2008, the increase in actual spending is mainly due to a one time payment for the Implementation of the Indian Residential Schools Settlement Agreement for 2007-2008 ( $1.9 B) and increases in statutory payments related to Old Age Security ($1.7 B) and Canada Pension Plan ($1.4 B).

From 2007-2008 Actual to 2008-2009 Forecast Spending, the increase of almost $3 B is mainly explained by increases in Employment Insurance Benefits and Canada Pension Plan Benefits.

Planned Spending includes Canada Skills and Transition Strategy announced in Budget 2009. Increases are also explained by changes in Old Age Security average rates of payment and population, and to increases in Canada Pension Plan Benefits which reflect forecast of clients population and average benefit payments.

Click here to enlarge

Total Consolidated Expenditures (millions of dollars)

Actual Spending			Forecast Spending	Planned Spending
2005- 2006	2006- 2007	2007- 2008	2008- 2009	2009- 2010	2010- 2011	2011- 2012
74,731.5	79,225.1	84,504.4	87,279.2	94,719.8	97,964.7	98,899.8

1.8 Voted and Statutory Items displayed in the Main Estimates

Voted and Statutory Items
($ millions)

Vote # or Statutory Item (S)	Truncated Vote or Statutory Wording	2008-2009 Main Estimates	2009-2010 Main Estimates
1	Operating expenditures	606.1	586.9
5	Grants and contributions	1,675.3	1,443.5
(S)	Minister of Human Resources and Skills Development - Salary and motor car allowance	0.1	0.1
(S)	Minister of Labour - Salary and motor car allowance	0.1	0.1
(S)	Old Age Security Payments	25,321.0	26,549.0
(S)	Guaranteed Income Supplement payments	7,696.0	8,091.0
(S)	Allowance Payments	573.0	557.0
(S)	Payments related to the direct financing arrangement under the Canada Student Financial Assistance Act	328.0	300.9
(S)	The provision of funds for interest payments to lending Institutions under the Canada Student Loans Act	—	—
(S)	The provision of funds for liabilities including liabilities in the form of guaranteed loans under the Canada Student Loans Act	6.8	4.5
(S)	The provision of funds for interest and other payments to lending institutions and liabilities under the Canada Student Financial Assistance Act	24.1	31.9
(S)	Canada Study Grants to qualifying full and part-time students pursuant to the Canada Student Financial Assistance Act	142.9	511.5
(S)	Supplementary Retirement Benefits - Annuities agents' pensions	—	—
(S)	Universal Child Care Benefit	2,470.0	2,544.0
(S)	Civil Service Insurance actuarial liability adjustments	0.1	0.1
(S)	Payments of compensation respecting government employees and merchant seamen	43.0	40.0
(S)	Canada Learning Bond payments to Registered Education Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to support access to post-secondary education for children from low-income families	34.0	43.0
(S)	Canada Education Savings Grant payments to Registered Education Savings Plans (RESPs) trustees on behalf of RESP beneficiaries to encourage Canadians to save for post-secondary education for their children	588.0	626.0
(S)	Canada Disability Savings Grant payments to Registered Disability Savings Plan (RSDP) issuers on behalf of RSDP beneficiaries to encourage long-term financial security of eligible individuals with disabilities	—	3.3
(S)	Canada Disability Savings Bond payments to Registered Disability Savings Plan (RDSP) issuers on behalf of RSDP beneficiaries to encourage long-term financial security of eligible individuals with disabilities	—	1.9
(S)	Wage Earner Protection Program payments to eligible applicants owed wages and vacation pay from employers who are either bankrupt or in receivership as well as payments to trustees and receivers who will provide the necessary information to determine eligibility	—	31.2
(S)	Contributions to employee benefit plans	232.7	221.3
	Total Budgetary	39,741.2	41,587.2
	Plus: Non-Budgetary Loans disbursed under the Canada Student Financial Assistance Act	906.3	596.0
	Total Department	40,647.5	42,183.2

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