2018/19 ANNUAL PLAN FOR BRITISH COLUMBIA. Labour Market Development Agreement

Transcription

1 2018/19 ANNUAL PLAN FOR BRITISH COLUMBIA Labour Market Development Agreement

2 Labour Market Development Agreement Honourable, Shane Simpson Minister of Social Development and Poverty Reduction It is my pleasure to present the 2018/19 Annual Plan for the Labour Market Development Agreement (LMDA). The Ministry of Social Development and Poverty Reduction is dedicated to helping British Columbians succeed in the labour market by addressing the employment needs of both individuals and employers. We are investing in and driving economic and social prosperity in communities in all regions of British Columbia. Through the LMDA, our investment of $ million in annual program funding is providing the employment services people need to achieve sustainable employment and improve their livelihoods, enabling families to succeed in B.C. s labour market /19 Annual Plan for British Columbia Labour Market Development Agreement

3 Contents Labour Market Development Agreement... 4 British Columbia Labour Market Priorities... 5 Projects Supporting Underrepresented Client Groups: Employment Mentorship Support Project... 7 Supporting Refugees... 8 Projects in Softwood Tariff Communities: Village Public Works Level Projects in Softwood Tariff Communities: Invasive Skills Development-Building Skills and Capacity in the Resource Sector...10 LMDA Investment Plan,Accountabilities and Targets...11 LMDA Investment Plan for 2018/ Investment Trend...11 LMDA Program Accountabilities and Targets /19 Annual Plan for British Columbia Labour Market Development Agreement 3

4 2018/19 Annual Plan for British Columbia Labour Market Development Agreement A BRIEF OVERVIEW Since BC has signed the Labour Market Development Agreement (LMDA) with the Government of Canada, the BC Ministry of Social Development and Poverty Reduction has transformed its employment programs and services to improve flexibility, responsiveness and accessibility for clients and the public. WorkBC Centres were launched across BC on April 2, 2012, and integrated 10 former employment programs and services into a single, more comprehensive program of employment services and supports for all unemployed British Columbians. Now with six years of achievements and lessons learned, the province will focus on service improvements to build the next iteration of WorkBC Employment Services in WorkBC makes it easier for people to find work through a wide range of integrated services and supports. EI claimants, individuals in receipt of provincial income assistance and other job seekers can reach their career goals by accessing training to upgrade skills, gaining valuable work experience or getting support and expertise for starting a business. Services provided through WorkBC also include self employment options and wage subsidies that encourage employers to provide work experience opportunities and create sustainable jobs for individuals. The Community and Employer Partnership Fund (CEP), under the auspices of WorkBC Employment Services, supports projects that provide skills training, work experience and labour market information in communities across BC. There are 84 WorkBC Centres in 73 catchment areas across British Columbia. These Centres provide quick and easy access so people can get the services they need to get back into the workforce as quickly as possible. All service providers deliver the full suite of services to citizens and have determined the best way to ensure effective service delivery to diverse populations, including people with disabilities, women, Indigenous people, older workers, Francophones, immigrants, refugees, youth, single parents, people with multiple barriers, people re-entering the workplace and people living in smaller rural communities. The Ministry of Social Development and Poverty Reduction continues to collaborate with the Government of Canada to ensure that employment and labour market services are integrated and meet the needs of British Columbians. This year, BC has worked collaboratively with the Federal government to negotiate a new generation of labour market transfer agreements. Both governments have a common interest in ensuring that the labour market transfer agreements, including the LMDA, are best positioned to address complex needs of BC s labour market while delivering programming in an accountable and efficient manner. The amended LMDA will: Expand the definition of insured participant (EI client) to include persons who have paid employee s Employment Insurance premiums in at least five of the previous 10 calendar years and who were not entitled to a refund; No longer restrict employment assistance services funded as support measures to unemployed persons, allowing WorkBC Employment Services to provide these services to employed persons with a particular focus on the working poor and those with precarious employment situations; and Expand Labour market partnerships, funded as support measures, to support employed persons facing a loss of their employment or needing assistance to maintain their employment. The following 2018/19 LMDA Plan considers the joint priorities and common goals of Canada and BC /19 Annual Plan for British Columbia Labour Market Development Agreement

5 British Columbia Labour Market Priorities Through the LMDA, the Ministry of Social Development and Poverty Reduction continues to work collaboratively with key stakeholders to provide programs and services to connect British Columbians with available jobs. This Plan outlines four key labour market priorities that will leverage the collaborative efforts and maintain the strong foundation of the LMDA. Underlying these priorities are continuing commitments to strengthen British Columbia s labour market by delivering responsive programs and services to better align skills training with local labour market needs and priorities. British Columbia s Labour Market Priorities for 2018/19 include: 1. Invest in training to better align British Columbians with sustainable job opportunities and to meet employer demands. 2. Implement strategies to engage all British Columbians, including underrepresented groups in the labour market. 3. Partner with local communities and organizations to further develop and increase community-based partnerships across the province. 4. Leverage and enhance labour market information and knowledge. 1. INVEST IN TRAINING TO BETTER ALIGN BRITISH COLUMBIANS WITH SUSTAINABLE JOB OPPORTUNITIES AND TO MEET EMPLOYER DEMANDS A new wave of economic growth will further increase the number of jobs available in British Columbia in the coming years. Over the next decade, it is estimated that there will be nearly one million job openings in the province that will require skilled employees. The demand for skilled labour continues to increase relative to that of unskilled labour and this trend is expected to persist in the future. As skill mismatches continue to pose challenges for employers, there is an even greater need to ensure that training is aligned with labour market needs. Fundamental changes and shifts must be made to ensure the most effective use of existing resources and future investments in education and training. It is estimated that more than three quarters of projected job openings to 2022 will require some postsecondary education. Throughout British Columbia, it is evident that workers, whether currently employed or seeking employment, need to improve their skills and credentials for current labour market conditions and for future expanding industries. That is why British Columbia places an emphasis on aligning training with the occupations in areas of high demand. It is also predicted that there will be persistent regional skills shortages in key sectors critical to British Columbia s economic growth, where targeted and sustainable action will be required to ensure continued prosperity. 2018/19 Annual Plan for British Columbia Labour Market Development Agreement 5

6 Planned Activities: Undertake collaborative work with industry groups, ministry partners and educational organizations to identify skills shortages and collaboratively address labour market needs at the regional and sectoral levels. Build strong partnerships with employers to increase awareness of program services and to better understand their labour and human resource planning requirements, ensuring employers perspectives are included in employment programming. Provide employment and labour market programs that effectively respond to emerging labour market and human resource needs. Ensure an alignment between labour market needs and the skills training and development provided. Continue to work with partner ministries and organizations, focusing on effectively targeting labour market spending and resources by reviewing projects, programs and initiatives proposed by each individual ministry to ensure coordination and avoid duplication. Prepare for the expected shortfall of trades people and trades apprentices by working with British Columbia s Industry Training Authority to support training in skilled trades. Support apprentices during training by providing living supports, transportation costs, application costs, dependent care and disability supports. Ensure full utilization of the Labour Market Partnership (LMP) funding stream of CEP, which provides financial assistance to organizations to encourage, support and facilitate addressing labour force issues and human resource planning activities which are in the publics interest. 2. IMPLEMENT STRATEGIES TO ENGAGE ALL BRITISH COLUMBIANS, INCLUDING UNDER REPRESENTED GROUPS It is important that employment and labour market services are accessible for all labour market participants to support them in finding or returning to stable employment as quickly as possible. The weakening demographic outlook, due primarily to an aging population, lower birth rates, and global competition for skilled labour, makes it necessary to ensure greater access to program information and services for all British Columbians. The full participation of Indigenous people, people with disabilities, women, immigrants, refugees, youth, single parents, people with multiple barriers and older workers in the workforce is increasingly important for the Canadian society, labour market and economy. There will be both opportunities and need for increased participation from underrepresented groups to fulfill future job openings created from potential new infrastructure projects, especially in construction as well as health care and social assistance, professional services and retail trade industries. Underrepresented groups have higher than average unemployment rates and there is thus a great need to address barriers that may prevent these British Columbians from participating in the workforce. As the provincial government continues to deliver responsive and effective employment and labour market services, it will continue to develop strategies to engage all British Columbians in the labour market, including groups historically underrepresented that may need additional support. Planned Activities: Use marketing and community outreach in collaboration with Canada and other stakeholders to continue enhancing awareness of the 84 WorkBC Centres located across the province to assist British Columbians to prepare for and find jobs. ` ` Provide employment and service delivery that is responsive, inclusive, accessible and clientcentered /19 Annual Plan for British Columbia Labour Market Development Agreement

7 Increase successful client outcomes by ensuring clients receive skills training and development that match the needs of the labour market. Continue to work with partner Ministries to provide an integrated response and employment services to the recent influx of Syrian refugees. Work with Canada to continue implementing the Targeting, Referral and Feedback (TRF) initiative through proactively engaging Employment Insurance applicants and assisting them to return to work more quickly. Leverage relationships with community organizations that are connected to underrepresented populations to understand their needs. Improve access to employment services for underrepresented populations through WorkBC Centres, satellite offices and outreach services. Look for innovative opportunities to assist underrepresented populations with projects funded under the CEP program. Ensure alignment of WorkBC Employment Services and supports with BC Government s commitment to making BC a truly inclusive province for people with disabilities by 2024 to minimize duplicated efforts, ensuring effective access to assistive technology and supports for people with disabilities to obtain employment. Continue to consult with the Federation of Francophones of British Columbia (FFCB) on how the employment services can better meet the needs of the Francophone community in BC. Projects Supporting Underrepresented Client Groups: Employment Mentorship Support Project The Community and Employer Partnerships (CEP) component of WorkBC has been able to support a number of projects focusing on underrepresented client groups. The Employment Mentorship Support Project is a Research and Innovation (R&I) Project coordinated by the Connectra Society. The objective of this project is to focus on determining through research, data analysis and volunteer and research participant input, whether the Employment Support method is an effective approach to improving employment outcomes for people with disabilities in BC. The Ministry of Social Development and Poverty Reduction is providing nearly $900,000 to fund the three year project, which researches the hypothesis that labour market attachments can be improved for people with disabilities when they are paired with volunteer mentors who can aid and guide them through a variety of aspects related to employment. The project studies barriers faced by people with disabilities and investigate whether the intervention of community-based volunteer mentors can help reduce obstacles to employment. A final report detailing the project s findings and experiences will be produced and will help to inform current knowledge and practices in linking people with disabilities in BC to sustainable employment. 2018/19 Annual Plan for British Columbia Labour Market Development Agreement 7

8 Supporting Refugees In 2015, the Canadian government announced that it would be resettling 25,000 Syrian refugees into the country by February As of February 2018, over 40,000 refugees have been welcomed into Canada. British Columbia settled nearly 700 refugees, predominantly Syrian refugees in 2017 alone. The Immigrant Services Society of BC estimates that from , the BC Government Assisted Refugee target will likely rise from 900 to 1,200 annually. WorkBC provides a number of different services and supports to refugees seeking employment. Program services that may be particularly relevant for these clients include personal counselling for employment readiness, foreign credential evaluation, prior learning assessment and financial supports for English as Second Language (ESL) training, language interpretation services, employment workshops, job search and job start supports. To support Syrian refugees in finding employment, some WorkBC sites offer Arabic-speaking staff to provide on-thespot interpreting services, including an estimated 30 Arabic-speaking staff members available at WorkBC Centres and sub-contractor sites including Immigrant Settlement Organizations. 3. PARTNER WITH LOCAL COMMUNITIES AND ORGANIZATIONS TO FURTHER DEVELOP AND INCREASE COMMUNITY-BASED PARTNERSHIPS ACROSS THE PROVINCE Regions across the province face unique economic opportunities and challenges. Continuing to develop community-based LMPs that bring together all relevant participants within a region will provide strategic advantages for program delivery. Understanding the unique skills and labour market needs in different parts of British Columbia and within key sectors of the economy will help the government target skills training and labour market programs as well as grow stable economic communities and address skills shortages. Labour market information at the regional level is critical to enable government and stakeholders to develop informed strategies that focus on their specific challenges and to collaborate on shared challenges. Planned Activities: Leverage existing relationships and build partnerships with community organizations to fully understand local labour market needs. Engage with economic sectors to help industry and employers understand and respond to changing labour market demands and provide funding for partnership led projects that address broader sector and regional labour market issues within British Columbia s diverse economy. Conduct outreach with community level employers and organizations to increase awareness of programs and services and to proactively address the challenges communities face. ` ` Ensure consultation with forestry dependent communities impacted by Softwood Lumber tariffs to identify their specific needs and provide skills based retraining through WorkBC and CEP to support displaced workers /19 Annual Plan for British Columbia Labour Market Development Agreement

9 Consult with organizations and communities to identify ways to successfully integrate and improve labour market participation for all British Columbians. Support and ensure full-utilization of the CEP commitment to bring community organizations and employers together to strengthen the labour market in their communities and provide individuals with meaningful employment through partnership, shared information, technology and innovative practices. Ensure full utilization of Job Creation Partnership (JCP) projects funded under CEP that are designed to support projects in communities that provide unemployed eligible EI clients with opportunities to gain meaningful work experience. Explore opportunities through the recently launched CEP Social Innovation stream, which addresses social challenges beyond unemployment and supports social enterprise initiatives across the province. Leverage the use of the BC Labour Market Scenario Model1 to examine the future state of occupational labour supply and demand for the province and its regions. Invest strategically through the Research and Innovation stream, giving priority to projects that are well positioned to enhance participant employment outcomes and/or aligned with the CEP Social Innovation Stream. 1 The BC Labour Market Scenario generates a 10-year forecast for British Columbia s labour market Projects in Softwood Tariff Communities: Village Public Works Level 1 Softwood Tariffs have had an impact on a number of rural communities in BC. In response, the Community and Employer Partnerships (CEP) component of WorkBC has been able to support some of these communities through a number of projects. The District of Mackenzie and McLeod Lake Indian Band Region are two of these communities identified to potentially be impacted by the Softwood tariffs. The Ministry of Social Development and Poverty Reduction provided nearly $250,000 to the College of New Caledonia in Mackenzie to deliver a 45 week Project-Based Labour Market Training Program. The client focus for this project was Indigenous people and youth in the rural and remote communities of Mackenzie and McLeod Lake Indian Band Region. Participants received a group based-full time program consisting of occupational and skills classroom training and work experience to prepare for employment in public works and building and grounds maintenance in the District of Mackenzie and the McLeod Lake Indian Band Regions of BC. Participants received training and work experience in a variety of public works sector areas including environmental best practices, transportation infrastructure, water systems, sewer systems, buildings and parks and recreation. This training and work experience contributed to participants gaining marketable and in demand skills to strengthen their potential employment in a number of sectors of the local community. 2018/19 Annual Plan for British Columbia Labour Market Development Agreement 9

10 Projects in Softwood Tariff Communities: Invasive Skills Development-Building Skills and Capacity in the Resource Sector The Invasive Skills Development-Building Skills and Capacity in the Resource Sector is a Job Creation Partnership (JCP) coordinated by the Invasive Species Council of BC Society. The project takes place in a number of communities including Revelstoke, Vernon, Kamloops and Williams Lake. Williams Lake is a community identified to be impacted by the Softwood Tariffs. The objective of the JCP is to complete the treatment and reduction of thirty priority invasive species covering sixty-six communities within the four regions of Revelstoke, Vernon, Kamloops and Williams Lake. In addition, presentations will be delivered to one hundred local organizations and community events on invasive species awareness. The Ministry of Social Development and Poverty Reduction is providing over $500,000 to fund the project, which sees at least twelve participants gain work experience and skill development in field inventory, surveying, data recording and management, plant identification as well as skills in community presentations, such as presentation and report writing and delivery. In addition, the project activities enable the Invasive Species Council of BC to provide on the ground management activities that will reduce the populations of provincial and regional priority invasive plants and species on priority sites resulting in a marked reduction of their spread. Presentations to the community will also increase awareness on invasive species. 4. LEVERAGE AND ENHANCE LABOUR MARKET INFORMATION AND KNOWLEDGE The Province recognizes the need for dependable and quality labour market information (LMI) for job seekers, service providers, employers and key stakeholders to make evidence-based decisions. LMI plays a key role in matching labour market supply with demand. Collaboration is essential to enhancing accountability, measurement, research, and innovational capabilities. The development of working partnerships with stakeholders across all communities of British Columbia will provide the capacity to respond to labour market conditions. The development of wellcoordinated partnerships with all stakeholders in the labour market is vital in order to successfully prepare all British Columbians to enter, re-enter or re-skill for the constantly changing labour market. Planned Activities: Collaborate with WorkBC service providers to improve local labour market information available in WorkBC Centres and ensure that employment counsellors and case managers have the most up-to-date information on training and career opportunities in priority sectors. Refine and improve the Business Intelligence Portal2 to provide WorkBC service providers and operational staff access to additional data and analytical tools to support on-going performance monitoring and management. Build on research, best practices and evaluation results, other learnings and findings, to inform the future of BC s employment programming. 2 The Business Intelligence Portal is a robust analytical reporting tool that provides users with the ability to report on data collected by the Ministry of Social Development and Poverty Reduction /19 Annual Plan for British Columbia Labour Market Development Agreement

11 LMDA Investment Plan, Accountabilities and Targets LMDA Investment Plan for 2018/19 The Ministry of Social Development and Poverty Reduction is responsible for the investment of funds received through the Labour Market Development Agreement. British Columbia s LMDA allocation for 2018/19 is $ million. Within WorkBC, LMDA supports and measures are consolidated into a single program and makeup approximately 84% of the 2018/19 budget. The remaining 16% is utilized through an inter-ministry agreement with the Ministry of Advanced Education, Skills and Training to deliver on provincial labour market objectives. To align with the responsibility for British Columbia s labour market strategy, administration of the provincewide and industry-specific sectoral LMP agreements Investment Trend Employment Assistance Services 2013/14 Expended ($, millions) 2014/15 Expended ($, millions) have been transferred to the Ministry of Advanced Education, Skills and Training. Local communitybased labour market program funding agreements continue to be administered by the Ministry of Social Development and Poverty Reduction. The two ministries are continuing to collaborate on program delivery and have adopted a no wrong door approach for applicants in order to ensure seamless and timely service to both employers and communities. The table below provides a summary of planned and expended expenditure trends from the current and preceding fiscal years. 2015/16 Expended ($, millions) 2016/17 Expended ($, millions) 2017/18 Planned Investment ($, millions) 2018/19 Planned Investment4 ($, millions) $ % $ % $ % $ % $ % $ % Skills Development (including Apprentices Program) $ % $ % $ % $ % $ % $ % Self-Employment $ % $ % $ % $ % $ % $ % Targeted Wage Subsidies $6.09 2% $5.90 2% $6.54 2% $9.05 3% $ % $ % Labour Market Partnerships $9.79 4% $6.89 2% $9.05 3% $ % $8.90 3% $ % Job Creation Partnerships $4.99 2% $6.85 2% $6.49 2% $ % $6.82 2% $9.12 3% Research & Innovation $ % $ % $ % $ % $ % $ % Project Based Labour Market Training $1.20 0% $7.83 3% $8.99 3% $4.28 1% $6.57 2% Total $ % $ %5 $ % $ %5 $ % $ %5 4 The 2018/19 Planned Investment for supports and measures is based on expenditures from 2013/14 to 2017/18. 5 Percentages may not sum to 100 percent due to rounding. 6 The 2017/18 Total Planned Investment included an additional $6.87 million funding as a result of the Softwood Lumber Agreement and $13.58M in additional LMDA funding. 2018/19 Annual Plan for British Columbia Labour Market Development Agreement 11

12 LMDA Program Accountabilities and Targets WorkBC was designed to implement efficiencies, such as increased accessibility to self-serve components and job readiness training. Clients accessing self-serve services are not formally case managed, which means the ministry has limited data on clients who chose to access job boards, online job search tools and other resources available in the self-serve area. Thus program targets and results only capture case-managed clients. As the ministry reflects on past performance and the labour market context, it is important to establish realistic and achievable targets that incorporate both the projected labour market conditions and the integrated service model of WorkBC Centres. The number of EI claimants accessing British Columbia benefits and measures is directly related to the economic outlook, labour market conditions and initiatives geared at attracting EI clients to WorkBC. 1. ACTIVE EI CLAIMANTS ACCESSING BRITISH COLUMBIA BENEFITS AND MEASURES 2012/ / / / / /18 Proposed 2018/19 Target 50,000 39,000 39,000 37,500 37,500 37,500 33,000 Total Achieved 31,953 34,612 33,730 35,891 35,276 32,881 In 2018/19, WorkBC will be in the seventh year of operation and the focus will be on program stability, including implementing initiatives related to EI client access. Since the launch of Targeting, Referral and Feedback (TRF) in the fall of 2016, the initiative has been fully implemented across the province. TRF enables EI Applicants to return to employment more quickly by connecting them with their local WorkBC Centres, where they can access employment information, services and supports. In terms of the economic outlook, British Columbia continues to outperform other provinces in GDP growth (forecasted at +3.2% for 2018) and leads in employment growth (+87.6k; 4%). The province s unemployment rate dropped to its lowest level since 2008 at 5.1% compared to 6% in The decrease in the unemployment rate comes from job growth in both full-time (+73k; 4%) and part-time (14.6k; 3%) employment that outpaces the increase in the labour force (+68.8k; 3%). Both GDP and employment are forecasted to continue to grow at rates above the national average into the next year, albeit at a slower rate than 2016 and The provincial employment rate and participation rate have also continued to climb to 62% and 65.3%, respectively. This is in small part due to an increased level of youth (15-24) participation in the job market. Factors asserting an upward pressure on employment include the continued growth in GDP and consumer spending, while factors posing a downside risk include an uptick in Alberta s economy, resulting in less interprovincial migration, increased automation of tasks, and an aging population. British Columbia continues to benefit from a weak dollar, which encourages provincial exports. However, the forestry, fishing, mining, quarrying, oil and gas sector has faced various setbacks this year, including an aggressive season of forest fires and pine beetle infestations. Furthermore, the softwood lumber tariff introduced by the United States has negatively impacted employment in the industry. The industry s leading employment continue to be in finance, insurance, real estate, rental and leasing, and construction; together, these two industries accounted for 40% of all the new jobs in the province. Efforts to cool the housing market, including an increase in interest rates and the introduction of more stringent mortgage standards, may temper the real estate in the upcoming year. In the next fiscal year, infrastructure projects and an increased budget allocation to health care and social assistance are forecasted to increase employment in these industries /19 Annual Plan for British Columbia Labour Market Development Agreement

13 With unemployment expected to decline in 2018/19, all else constant, the number of individuals drawing upon EI Part I and the subsequent number of EI clients served by WorkBC would also be expected to decline; however, there are offsetting factors. Employment benefit (e.g. Skills Developments, Wage Subsidy) eligibility has expanded to include all those who have made minimum EI premium contributions in at least 5 of the last 10 years; the current definition includes only individuals currently receiving or having received EI benefits in the past five years. Certain services have also been extended to a set of employed Canadians including the precariously employed, underemployed, and working poor. Nevertheless, due to the improving labour market and trends in recent years, the target for the number of active EI claimants accessing British Columbia benefits and measures in fiscal year 2018/19 will be set at 33, EI CLAIMANTS RETURNED TO EMPLOYMENT 2012/ / / / / /18 Proposed 2018/19 Target 30,000 24,000 24,000 21,750 21,750 21,750 20,000 Total Achieved 16,777 20,040 19,787 19,552 21,055 20,997 The number of claimants returning to employment is influenced by a number of factors, including: Labour market conditions; The number of clients accessing benefits and measures; and, Characteristics of El claimants. Note that the ministry is unable to track self-serve participant outcomes at this time, so the returned to employment figures above only capture case managed clients. As discussed above, labour market conditions have and are expected to continue to strengthen during the 2018/19 fiscal year. And in recent years, the number of EI claimants accessing British Columbia benefits and measures who return to employment has been averaging 57%. This fiscal year is expected to have 63% of claimants returning to employment by the end of the year. In addition to favourable labour market conditions, several initiatives are likely contributing to this outcome. First, WorkBC service providers are making proactive efforts to increase the awareness of programs and services available through WorkBC Centres in their communities. And second, efforts are being made to address skills gaps by providing training and support to clients so that they can reenter the labour market in sustainable skilled positions. As such, the target number of EI claimants who return to employment will be set at 20,000 for 2018/19, even as the number of active EI claimants decreases. 2018/19 Annual Plan for British Columbia Labour Market Development Agreement 13

14 3. SAVINGS ($) TO THE EI ACCOUNT 2012/ / / / / /18 Proposed 2018/19 Target 124,000, ,000, ,000, ,000, ,000, ,000, ,000,000 Total Achieved 112,512, ,846, ,474, ,294, ,701, ,556,392 The factors that influence the number of EI claimants returning to employment in turn impact savings to the EI account. Savings to the EI account occur as a result of active EI claimants becoming employed before making a full draw on their insurance entitlement. Thus, savings to the EI account amount to any unpaid benefits (i.e. EI Part I insurance benefit entitlement minus actual EI Part I payout) to EI claimants who find employment or who returned to training as a result of WorkBC services. The drivers of total savings are both the number of EI claimants going back to work before making a full draw and the magnitude of the average remaining draw per client. As shown above, in 2017/18, the number of EI Part I clients that WorkBC helped to get employed have stayed steady even as claimants have decreased. Saving per client, though, is increasing on average. It spiked in 2016/17 and has normalized somewhat, although it remains higher than in previous years. Higher savings per client reflects a number of factors: claimants returning to work more quickly, claimants having been entitled to higher payments than previously (perhaps because they were higher earners while employed), or changes in measurement. In the upcoming year, the maximum EI weekly benefit has increased $4 or 0.8%. This may also have a slight impact on savings. With a strong labour market, the number of claimants returning to employment will continue showing similar trends. It is expected to be a period of modestly strengthening labour market conditions, meaning that additional jobs should be available, which would put downward pressure on both the number of clients receiving EI Part I benefits and the duration of benefit receipt. However, there are upward pressures also. Changes in commodity prices increased automation of labour, an aging population, and a pivot away from housing are just a few of the trends at play. Again, these factors point to the need for greater focus on longer-term WorkBC benefits and supports in order to address skills gaps and retrain workers for current labour market positions. A conservative approach has been taken and next year s savings per client reflects an improving labour market. For more information on the WorkBC Employment Services visit: /19 Annual Plan for British Columbia Labour Market Development Agreement

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