Annual Plan for the Northwest Territories. Canada-Northwest Territories Labour Market Development Agreement

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1 for the Northwest Territories Canada-Northwest Territories Labour Market Development Agreement June, 2014

2 Introduction This annual plan is intended to guide activities of the Northwest Territories Labour Market Development Agreement (LMDA) for the fiscal year. A number of potential activities have been identified for the year. However, depending on the demands of the current labour market, these activities may need to change. Environmental Scan The Northwest Territories (NWT) covers an area of approximately 1,346,106 km 2 (about the size of Alberta and Saskatchewan combined). Of the 33 communities in the NWT, only five (Inuvik, Hay River, Fort Smith, Behchoko and Yellowknife) have populations exceeding 2,000. The population of Yellowknife (20,295 as of July ), represents almost half of the territorial population at that time (43,537). The population in the NWT is made up of approximately half Aboriginal and half non- Aboriginal persons (a ratio of 22,069 to 21,468 as of July ). Of the 22,069 Aboriginal persons, only 4,889 (22%) were living in Yellowknife, as the majority live in the smaller communities. The population of the NWT fell by 31 persons between January and January The components of natural increase consisted of 689 births and 199 deaths, resulting in a net increase of 490 persons. Inter-provincial migration accounted for 1,885 persons moving into the NWT while 2,567 moved away, representing a net loss of 682 persons. Internationally, there was a net in-migration of 161 persons. 1 Employment Data Based on annual averages for 2013, Statistics Canada estimates that of the 32,000 residents 15 years of age and older in the NWT, 22,500 persons were employed. This represents an overall employment rate of 70.3%. This value has decreased compared to the 2012 employment rate. Comparatively, Canada s employment rate also decreased to 61.5%. The NWT has seen a decrease in the participation rate from 76.9% to 76.6%; however the number of unemployed persons has not changed (2,000). This has resulted in a slight increase in the unemployment rate from 8.1% to 8.2%. In 2013, the employment rate was 1 percentage point higher for males than females, a decrease from 2.4% in Source: Statistics Canada, Demography Division June, 2014 Department of Education, Culture and Employment Page 2

3 Looking at employment by age category, in 2013 the employment rate was highest for those aged 25 to 44 at 83.2%. The employment rates for Aboriginal and non-aboriginal persons in 2013 were 53.8% and 83.6% respectively. Significant differences in unemployment rates also exist. The Aboriginal rate increased slightly to 16.3% from 16.1% the previous year, while the non- Aboriginal rate increased from 3.2% to 3.3%. Geographically, Statistics Canada only reports data for Yellowknife and the Rest of Territory. Yellowknife s employment rate peaked in 2007 at 83.4%, declined to 80.1% in 2009, and since then has been slowly increasing. In 2013 it was 81.6%. The employment rate for other NWT communities has followed a similar trend; however in 2012 it stood at 60.6% and in 2013 dropped to 59.9%. Comparative Employment Rates Group Northwest Territories Males Females Yrs Yrs Yrs Aboriginal Non-Aboriginal Yellowknife Other NWT Communities Gross Domestic Product (GDP) Data In 2013, GDP for the Northwest Territories rose by 1.9% (the same as in 2012), which was slightly lower than the national average of 2.0%. Economic growth was much higher in Nunavut at 10.5%, while Yukon only increased by 1.3%. GDP increased in all but one province, New Brunswick. Resource based industries such as diamond mining and oil and gas extraction showed mixed results. Diamond mining increased by 6% (gaining back production which had seen a decrease of 4.1% in 2012), while oil and gas extraction had a slight decrease of -0.1%. June, 2014 Department of Education, Culture and Employment Page 3

4 The construction industry had the largest increase in 2013 of 28.1%. This was mainly due to work on the Inuvik to Tuktoyaktuk highway and the development at the new diamond mine. GDP remained static in many service sector industries. For example, wholesale trade, retail trade, and real estate and rental and leasing fluctuated by 1.1% to -0.2%. Only the finance and insurance sector saw a significant increase of 4.0%. Although the manufacturing sector in the NWT is the smallest sector, it did see 15.2% growth in 2013, from $3.3 Million to $3.8 Million. Sector Employment Data Between 2012 and 2013 there were some significant shifts in employment numbers. There was an increase of 100 employees in the full-time category, and the part-time category decreased by the same amount. The public sector saw a decrease of 700 employees, whereas the private sector grew by 400 employees while 200 people chose to move into self-employment. Employment shifted away from the provision of services, which declined by 300 persons, and moved towards the production of goods which experienced a gain of 100 persons. Comparative Employment Data Group Total Employment 22,700 22,500 Full-time 20,200 20,300 Part-time 2,400 2,300 Employees 21,200 20,800 Public 10,600 9,900 Private 10,600 11,000 Self-employment 1,500 1,700 Goods Producing 3,800 3,900 Service Producing 18,900 18,600 June, 2014 Department of Education, Culture and Employment Page 4

5 Although the employment rate in the NWT has remained relatively steady, upcoming projects could increase labour demand over the next several years. Several mineral resource development projects are in various stages of the environmental assessment or permitting process, including: DeBeers Gahcho Kue Diamond Mine; Avalon Rare Metals Nechalacho Rare Earth Elements Project; Fortune Minerals NICO Gold/Cobalt/Bismuth/Copper Project; Canadian Zinc Prairie Creek Mine; and Tyhee Yellowknife Gold Project. If all the projects proceed in a timely manner, labour demand will exceed labour supply in the NWT due to the small labour pool. These projects could lead to an additional 1,400 new jobs. Jobs will be created by the proposed Mackenzie Valley Highway project in the Dehcho and Sahtu Regions. This project is in the assessment process. In the Beaufort Delta region, the Inuvik-to-Tuktoyaktuk Highway Project is underway and has created approximately 150 jobs. This project is scheduled to be completed by the winter of Overall, jobs are becoming more specialized and occupations more specific which will result in fewer opportunities for unskilled labour. This is particularly relevant as 54% of the available labour supply in the NWT has less than high school as their highest level of schooling. Aboriginal high school graduation rates have increased over time to approximately 45%. In contrast, the graduation rate for non-aboriginals is around 80%. In addition, small communities in the NWT account for 68% of the available labour force and the opportunities to train in specialized occupations are not available in these communities. Targeted Priority Clients Through the LMDA the NWT provides programs and services to unemployed Employment Insurance (EI) eligible individuals, either those receiving benefits or reachback clients. It also supports projects and partnerships aimed at enhancing the overall employability of NWT residents. Consultations The Department of Education, Culture and Employment (ECE) through the Assistant Deputy Minister, Labour and Income Security, meets on a monthly basis with Regional Superintendents of the five administrative regions of the NWT (Beaufort-Delta, Sahtu, North Slave, Dehcho and South Slave Regions) and with the Director of Income Security and the Director of Labour Development and Standards. June, 2014 Department of Education, Culture and Employment Page 5

6 Regional Superintendents meet, on a regular basis, with regional training committees or partnership representatives. These groups represent the Government of the Northwest Territories (GNWT), Aurora College, Aboriginal Governments, community organizations and other stakeholders and assist with determining regional priorities in education and training. ECE has staffed a new position, Coordinator of Labour Market Training, who works directly with the regional training committees. In addition, Career Development Officers, located in the regional ECE Service Centres, work with education and training providers, Aboriginal Governments, community organizations, and businesses in the communities to serve the career development needs of individuals and communities. Beaufort Delta The Beaufort Delta has two Regional Training Committees to plan and deliver programs that meet the needs of the region. The Beaufort Delta Regional Training Partnership Committee, which meets monthly, includes senior staff from ECE, Inuvialuit Regional Council (IRC), Gwich in Tribal Council (GTC), Department of Industry, Tourism and Investment (ITI), Service Canada, Conoco Philips and Aurora College. This committee plans the overall training needs across the region as well as potential delivery schedules, and shares information on programs and services. The Beaufort Delta Career Development Committee consists of: Career Development Officers from ECE, IRC, and GTC; representatives from Aurora College; the Beaufort Delta Education Council; and managers from ECE and the GTC. This committee shares information on programs and services, and plans and coordinates career/employment workshops, activities and events. The Beaufort Delta Regional ECE Service Centre also works with Community Employment Officers employed by hamlet or band councils and community corporations, as and when needed, to identify potential training opportunities in their communities. Sahtu Members of the Sahtu Regional Training Partnership Committee are ECE, ITI, the Department of Municipal and Community Affairs (MACA), Aurora College, Behdzi Ahda First Nation, Sahtu Regional Resources Board, Charter Community of K asho Got ine, Sahtu Divisional Education Council, Tulita Land Corporation, Ft. Norman Metis Land Corporation, Hamlet of Tulita, Canada North Camps, Deline Land Corporation, Sahtu Dene Council, HRN Contracting, Sahtu Business Development Centre, Husky Oil, Conoco Philips, and Northridge Contracting Ltd. The committee developed a five year training plan for the Sahtu region in This plan is reviewed annually and adjustments are made when necessary to reflect the June, 2014 Department of Education, Culture and Employment Page 6

7 regional training needs as the local labour market changes. The overall focus of the plan is on employment preparation geared toward the oil and gas industry, trades, and the health sector, as these are the areas with the most activity and potential growth in the Sahtu. North Slave The North Slave Regional Training Partnership consists of ECE, ITI, MACA, Aurora College, NWT Literacy Council, Tlicho Community Services Agency, NWT Metis Nation, Mine Training Society, Avalon Rare Metals, Tlicho Government, Skills Canada NWT, Service Canada, De Beers Canada Snap Lake Mine, NWT & NU Construction Association, Smart Communities, Dominion Diamond Mines, Diavik Diamond Mines, Akaitcho Territory Government, and the Yellowknives Dene First Nation, This group meets every second month to exchange information on community needs, identify opportunities for partnerships and develop joint initiatives that will address identified needs. The priorities identified by the North Slave Regional Training Partnership include: development of work readiness skills, community capacity building and training-toemployment programs. South Slave The South Slave Regional Labour Market Planning Partnership meets regularly to plan and collaborate on programs and interventions to address gaps in the Labour Market. Membership is made up of Aboriginal Organizations ASETS Managers (Akaitcho, Métis, and Dehcho), Mine Training Society, Aurora College, the South Slave Divisional Education Council and ECE, ITI, and MACA. Long range plans and annual plans are jointly discussed and regional priorities are identified and cost shared wherever practical. Priorities for will include training initiatives that focus on the forestry sector. Dehcho The Dehcho Regional Training Committee comprises of two streams, the Core Members who meet on a monthly basis to plan overall training needs across the region as well as potential delivery schedules, and to share information on programs and services. And the General Members, who meet quarterly with the Core Members, to discuss training plans, employment opportunities and related projects. The Core Membership is made up of a group consisting of Dehcho First Nations, Mine Training Society, Aurora College, ITI, ECE, Canadian Zinc, and the Liidlii Kue First Nation. They are joined on a regular basis by all the regional First Nation s offices along with other interested governments, businesses, and organizations. The committee also works closely with ITI on private sector business opportunities and collaborates on economic development activities in the region. June, 2014 Department of Education, Culture and Employment Page 7

8 Programming Priorities and Objectives ECE s vision is Northern people leading fulfilled lives and contributing to a strong and prosperous society. And the mandate of ECE is to provide quality programs, services and supports in early childhood development, K-12 education, postsecondary and adult education, career development, apprenticeship and occupational certification, employment standards, income security, official languages, arts, culture and heritage. Building capacity through LMDA programs and services, and working closely with Aboriginal Governments, remains a high priority. To this end, working with regional training partnerships strengthens our ability to achieve shared objectives. Each region of the NWT has varying needs and reflects different cultures and languages. Therefore, planning done by regional ECE Service Centres, in conjunction with their regional training partnerships, provides the flexibility needed to meet changing regional employment opportunities. Across all of the regions, the regional ECE Service Centres and their partners have identified strategic priorities that recur from year-to-year. These include: initiating training programs that develop work-readiness skills; setting clear goals for the number of new apprentices; and helping build capacity within local organizations, especially Aboriginal organizations. Regional priorities adjust to meet upcoming industry or government initiatives that promise significant employment opportunities. A number of LMDA program options are available and each region determines what programming to deliver based on specific regional and community needs. GNWT departments are working together on a number of strategies to create a skilled and educated Northern workforce to align with labour market needs. These strategies are: Labour Force Strategy Early Childhood Development Strategy Education Renewal and Innovation Initiative NWT Mineral Resource Development Strategy NWT Economic Opportunities Strategy NWT Anti-Poverty Strategy NWT Literacy Strategy NWT Forestry Initiative Leaders in the NWT have signed a Devolution Agreement with the federal government and authority over land, water and resources has been transferred to the territory. Further to this, a priority of the GNWT is to support the creation of public service jobs in NWT communities through decentralization. June, 2014 Department of Education, Culture and Employment Page 8

9 Labour Market Development Agreement As part of many of its programs and services, ECE delivers employment benefits under the NWT LMDA to assist unemployed EI eligible clients to gain work experience, start new businesses, and develop their job skills. Priorities for include: Improving labour market outcomes for NWT residents by developing essential and transferable skills that allow people to participate in the labour market and manage changes; Continuing to build strong partnerships with community partners, nongovernment organizations and training institutions; Improving labour market outcomes for NWT residents by providing or improving access to quality career services and capacity building in small, remote communities; Supporting trades training and certification, there are 53 designated trades in the NWT with 428 apprentices currently training; Encouraging more employer involvement in all training programs to ensure that training prepares NWT residents for available jobs; Hosting the third Labour Force Symposium to support territorial-wide strategic planning and collaboration; Utilizing Labour Market Information and employer input to identify skills gaps in the NWT and aligning training programs and supports to fill the gaps; and Disseminating Labour Market Information to assist NWT residents in making informed choices through activities such as publication of a Labour Market Review and updating and/or developing labour market programs brochures and Career Opportunities Series booklets. Given that there has not been an increase in the amount of administration funding provided over the life of the LMDA thus far, the increasing cost of administration and resources continues to contribute to diminished capacity to support recipients and has a direct impact on NWT Part 2 Benefits and Measures expenditures. Program Options The employment benefits delivered under the NWT LMDA help unemployed EI eligible clients gain work experience, start new businesses, and develop their job skills. The NWT offers the following array of labour market programming: Building Essential Skills June, 2014 Department of Education, Culture and Employment Page 9

10 Provides short-term skills training or education interventions to clients to prepare them for entry or re-entry into the labour force. It also assists apprentices to obtain certification and to progress in their chosen field. Wage Subsidies Training-on-the-Job Provides wage subsidies to assist employers by providing skills development training to unemployed persons. Apprenticeship Training-on-the-Job Provides wage subsidies to help employers by providing training and employment opportunities for apprentices, which progressively leads to trade certification. Youth Employment Provides wage subsidies to employers of youth which helps young NWT residents obtain essential employment skills. Self-Employment Option Provides business counselling, guidance and financial support for individuals starting a business. Employment Measures The employment measures delivered under the NWT LMDA provide funding to organizations, businesses and communities that deliver employment assistance services to eligible clients. The funding is used to address human resource, labour market and labour force issues. Employment Assistance Services Provide employment-related services to unemployed individuals. Services may include career counselling, diagnostic testing, resume writing, job finding techniques, and job maintenance assistance. Labour Market Partnerships Provide assistance for communities to identify, develop and implement labour force adjustment and human resource strategies to improve capacity. These partnerships support communities taking responsibility for their own employment related needs and priorities. Career Development Services Provide career counselling, workshops, internet access, use of a resource library, and assistance with job searches in order to help clients make informed career choices. NWT ECE Service Centres deliver these services. June, 2014 Department of Education, Culture and Employment Page 10

11 Jobsnorth.ca Provides an online labour exchange service that connects unemployed workers with employers and vice versa. Jobs can be posted territorially as well as nationally thorough the Canada Job Bank. A review of Jobsnorth.ca has been completed and ECE is conducting research on the possibility of using the Canada Job Bank as the sole NWT labour exchange service. Evaluation The LMDA Cycle 2 evaluation process is in the second year of the five year cycle. The draft technical report has been completed. Numbers for the NWT were insufficient for the purposes of analysis and planning. Therefore, Canada is redoing the net impact analysis for the entire population using a new reference period of NWT has opted out of Stream 2, Year 2 studies. The GNWT s EAS services and data collection methods are not compatible with ESDC s approach for this phase. Forecast of Program Expenditures Projected expenditures by program area for are as follows: Program Area Amount Building Essential Skills $ 704,000 Wage Subsidies $ 477,000 Self-Employment Option $ 242,000 Labour Market Partnerships $ 703,000 Employment Assistance Services $ 995,000 Administration $ 1,450,000 TOTAL $ 4,571,000 Expected Results As per Annex 4 of the LMDA, Annual Results for to be determined and agreed upon. June, 2014 Department of Education, Culture and Employment Page 11

NWT LABOUR MARKET REVIEW April 1, 2012 March 31, 2014

NWT LABOUR MARKET REVIEW April 1, 2012 March 31, 2014 NWT LABOUR MARKET REVIEW This report provides an overview of key labour market statistics and current trends provided by the Northwest Territories