Labour Market Development Agreements

- September 25, 2021

In 1996, the unemployment insurance system was renamed Employment Insurance (EI) and reformed to recognize two components: first, the income allowance for unemployed persons who had paid EI premiums; and, second, to offer a number of employment programmes to the unemployed in order to prepare them to return to work quickly. The Employment Insurance Act also gave provinces and territories the opportunity to implement these training programs. [2] The initial MDAAs date back to the beginning of the process of transferring labour market training to the provinces in 1996. The first bilateral agreement was signed with Alberta in December 1996 and implemented in November 1997. The integration of all provinces and territories was a long process, culminating in budget 2007`s recognition that provinces and territories have primary responsibility for the development and implementation of labour market training programs, as well as the signing of the last bilateral agreements until 2010. [3] Pursuant to section 63 of the Employment Act, the Canada Employment Commission, with the agreement of the Minister, must reimburse the legislative, provincial and territorial authorities and other organizations to reimburse labour market programming costs similar to those of the MSSS. Many witnesses praised the results of Skills Development (SD) programs that cover training costs for EI clients to get back to work as quickly as possible. People who lack essential skills and who have a low level of reading and reading level are also entitled to skills development and training funded by ILAs. Bilateral agreements have been signed with all 10 provinces and 3 territories. MMAs make $500 million per year available to provincial and territorial governments to cover the costs of these services.. . .

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