Introduction

The Ontario Ministry of Labour, Immigration, Training and Skills Development’s (MLITSD) mandate includes supporting employment and training services that:

  • help people prepare for and obtain new careers
  • adjust to changes in the economy
  • help employers hire and train employees through programs, grants and incentives

By recognizing the varied needs of workers, employers and communities to meet the labour market challenges of the present and the future, Ontario is:

  • helping create the right conditions for job creation
  • enabling careers and opportunities for everyone
  • enhancing protections for the province’s most vulnerable workers

Ontario’s economy was seriously affected by the COVID‑19 pandemic. The outbreak and rapid spread of COVID‑19 in 2020 shocked the global economy, disrupted financial markets and caused personal, economic and social hardships for families, business‑owners, workers and communities across Ontario.

Throughout, the province’s employment and training supports remained a vital resource for:

  • people who lost their jobs
  • people looking to upgrade their skills
  • employers looking to meet their staffing needs

Workforce Development Agreement

This annual report outlines the investments in employment and training that the government of Ontario made in 2020–2021 using federal funding under the Workforce Development Agreement (WDA). Through the WDA, Canada and Ontario demonstrate a common vision for supporting the employment and training needs of Canada’s labour market by building an inclusive, integrated, client-centred, outcomes-driven employment and training system for Ontario. Ontario uses its WDA allocation to fund:

  • skills development
  • employment assistance services
  • employer/organization-focused partnerships
  • research and innovation programs

The WDA also includes a specific focus on supporting persons with disabilities in gaining and maintaining meaningful employment and empowers the province to leverage funding to provide such programming.

Ontario’s WDA allocation for the 2020–2021 fiscal year was approximately $355.4 million. Additional federal investments were also provided in fall 2020 to address immediate economic needs due to the COVID‑19 pandemic and assist with the province’s economic recovery. Ontario utilized approximately $226 million of this funding to support new and innovative efforts to counteract the negative economic effects of the COVID‑19 pandemic on the province’s hardest-hit populations.

Labour market overview

As Ontario recovers from the economic, social and cultural upheavals of the COVID‑19 pandemic, provincial and federal cooperation will be needed to effectively address new challenges and longer-standing workforce development issues, including:

  • labour and skilled trades shortages
  • an ageing population
  • the advancement of new technologies
  • the prevalence of less secure “gig” work

Economic downturn

The economic downturn led to steep job losses (1,122,600 or 15.0%) between February 2020 and May 2020. Although the economy has recovered since then, the March 2021 employment level remained 1.7% below its pre-pandemic level. Ontario’s unemployment rate declined to 7.5% by March 2021 down from 13.2% in May 2020.

The downturn varied dramatically between sectors, showing what businesses could remain fully operational during the pandemic and differences in the ability of workers to telework or work remotely.

The effects of the pandemic on employment have also been particularly critical for certain groups, including:

  • youth
  • women
  • persons with disabilities
  • new immigrants

Youth and women

The youth unemployment rate reached a record high of 29.5% in May 2020 and remained further from its pre-pandemic level than other age groups in March 2021.

Unfortunately, the service sector, including accommodation and food services positions, (for example, food and beverage servers, bartenders, cooks, cashiers and hotel front desk clerks) was hit hard by the pandemic which accounted, in part, for the disproportionate labour market disruptions of women. As of March 2021, employment among women was 2.3% below its pre-pandemic level, compared to a 1.1% decline among men.

Persons with disabilities

Employer reluctance to hire and retain persons with disabilities exacerbated the negative effects of the pandemic on this under-represented group. According to a federal survey of approximately 13,000 participants aged 15 to 64 with a long-term condition or disability, 36% of those employed before the pandemic started reported experiencing a temporary or permanent job loss or a loss of hours since March 2020.

Immigrants

Very recent immigrants (those who have been in the country for five years or less) face greater challenges in the labour market. In Ontario, the unemployment rate for recent immigrants was 11.9% in the first quarter of 2021 compared to only 8.7% for the Canadian born population.

Addressing labour market challenges and opportunities

Local and responsive solutions will be important to address Ontario’s current and future labour market challenges and opportunities. The health care, accommodation and food services, and skilled trades sectors have faced critical concerns with:

  • rising vacancy rates
  • labour shortages
  • recruitment challenges

Ontario aims to address the diverse labour market needs of under-represented groups, supporting programs that help tackle current labour shortages and build capacity to respond to emerging major economic shifts, including in the skilled trades. Labour market transfers, including through the WDA, remain crucial to ensuring economic recovery, growth and innovation in the province.

Pandemic response investments

Ontario has invested in responses to the pandemic and modified or developed new employment, skills development and training programs to meet the needs of those affected by the pandemic. The province has created and targeted programming towards both individuals and employers, and focused efforts on sectors hardest hit by the pandemic. Throughout the program development and delivery process, Ontario has listened to stakeholders and partners to make sure efforts were aimed where they were needed most.

Under the WDA, Ontario funds programs that fall within the following categories:

  • skills development
  • employment assistance services
  • employer/organization-focused partnerships
  • research and innovation

Skills development

Innovative activities that help individuals obtain a wide range of employment skills, including:

  • specific technical skills
  • English as a second language
  • digital skills
  • literacy and essential skills

These indicatives can include the following training and opportunities:

Occupational skills training

Funded interventions through public or private post-secondary institutions leading to a certification or diploma with the aim of obtaining employment for individuals. This includes individuals training while employed.

Short-term training

Short duration training certificates/courses (for example, first aid and food safety) needed to meet the specific job or industry requirements.

Literacy, essential skills, language training and adult basic education

Individuals receive interventions that focus on upskilling of literacy, essential skills and language training and are assisted to complete their high school diploma or high school equivalency. This category includes any literacy, essentials skills, or language training conducted for pre-apprenticeship programs.

Apprenticeship

Apprentices in Ontario are employed persons who are attached to an employer and registered with the Ministry of Labour, Immigration, Training and Skills Development. Apprenticeship programs combine on-the-job and in-school training to enable workers to obtain the workplace and classroom training required to successfully become certified for employment in a skilled trade.

Other

Other skills development activities that are not identified in the other categories.

Employment assistance services

A variety of services that support individuals as they prepare to enter, or re-enter, the workforce or assist them in finding a better job, including:

  • job search services
  • career counselling
  • resume writing assistance

Employer/organization-focused partnerships

Programs that work with employers to provide them with supports to train new and/or existing staff. They also work to raise awareness with employers about the benefits of hiring underrepresented groups — such as persons with disabilities — and provide them with support to integrate underrepresented groups into their workplaces, which can include working with employers to improve their cultural competency.

Research and innovation

Programs that test innovative ideas for labour market programming.

Funding for persons with disabilities

In each fiscal year Ontario allocates a specific amount of WDA funding to supporting persons with disabilities. Ontario also cost matches the base amount of persons with disabilities funding from its own revenue to support employment programs and training supports for persons with disabilities.

COVID‑19 response funding

Ontario welcomed the additional federal investment that was provided in fall 2020 to assist with the province’s COVID‑19 response. This additional funding was used to support over 30 new initiatives and enhance two other initiatives, many of which supported rapid responses to the pandemic. These projects include sector-focused initiatives and targeted short-term skills training or upskilling for employees who are looking for new pathways to success. For example, three of these initiatives provided training opportunities for nearly 6,000 workers in the tourism industry across the province.

Breakdown of money spent on programs and services

Table 1 provides a breakdown of spending on programs and services funded under the Canada-Ontario WDA in 2020–2021. Note that Ontario’s spending on employment and training programs and services is more than the expenditures of the programs listed below.

Table 1: 2020–2021 Canada-Ontario Workforce Development Agreement Expenditures
Program categories Claim Client targets
Skills development $90,835,932 20,000
Employment assistance services $29,427,939 746,000
Employer/organization-focused partnerships $5,500,000 6,000
Research and innovation $327,438,504 231,000
Total Ontario claim for people with disabilities $102,879,790 205,000
Administration $25,738,223 N/A
Total $581,820,388* 1,208,000

* In addition to Ontario’s base allocation, $614,289,610 was provided by the federal government to the province in fall 2020 to address immediate economic needs due to the COVID‑19 pandemic. The province invested this funding in employment and training services and supports: $226,409,352 in 2020–21 and $387,880,258 in 2021–22, respectively. The total does not include Ontario’s cost match for persons with disabilities funding.

Results

In 2020–21, Ontario supported 52 programs that served over 4,100 employers/organizations and 1.2 million individuals. One person could be counted multiple times if they participated in more than one program. The following section highlights some key programs.

Skills development

Literacy and basic skills

The Literacy and Basic Skills (LBS) program helps adults develop and apply communication, numeracy, interpersonal and digital skills to achieve their goals to transition to:

  • employment
  • secondary or postsecondary education
  • an apprenticeship
  • increased independence

LBS focuses on unemployed adults with special emphasis on people receiving income support and clients include individuals who may have a range of barriers to learning.

LBS is delivered in-person, online or through blended learning. It is delivered at approximately 290 sites across Ontario through a network of approximately 180 Employment Ontario transfer payment organizations including:

  • colleges
  • school boards
  • community agencies

LBS uses culturally sensitive learning approaches to deliver the program in:

  • English
  • French
  • American Sign Language (ASL)
  • a dedicated Indigenous stream, providing culturally relevant programming to Indigenous learners

These different program delivery options/methods respond to the broad needs of learners and support program access across the province.

Across the LBS program, there is an approximately 25% increase in the number of learners who report being employed or in school one year after they leave the program compared to their status at entry. Unemployment rates for participants also decrease by approximately 35% one year after exiting the program.

In 2020–2021, WDA funding for the LBS program assisted approximately 16,000 clients.

Apprenticeship Completion Bonus

The Apprenticeship Completion Bonus provides a one-time, $2,000 taxable cash grant for apprentices who have successfully completed their apprenticeship training and received their Certificate of Apprenticeship (C of A) and, where applicable, their Certificate of Qualification (C of Q), in a non-Red Seal trade. Upon completion of training and having received the appropriate certification, apprentices are sent an application and must submit their application 180 days from the date that their C of A, or C of Q, is issued. Payment is issued following approval of their application.

In 2020–2021, WDA funding supported over 500 clients through this program.

Benefits of the program include:

  • more apprentices entering the workforce
  • more apprentices completing their apprenticeship program and receiving their C of A and, where applicable, their C of Q
  • giving completed apprentices a sense of pride in their accomplishment
  • recognizing the investment completed apprentices have made in their own training
  • more certified workers with better employment and labour mobility prospects

Employment assistance services

Youth Job Connection

The Youth Job Connection consists of year-round and summer-specific components.

The year-round component serves youth aged 15 to 29 who are not in employment, education or training, and who experience multiple barriers to employment by providing more intensive supports beyond traditional job search and placement opportunities. In 2020–2021, at the time of exit from the program, 56% of respondents reported being employed and 24% were returning to school.

Supports include:

  • paid pre-employment services (such as, personal life skills development) to promote job-readiness
  • job matching and paid job placements, in addition to placement supports for participants and hiring incentives for employers
  • mentorship services at or outside the job placement to support the development of “soft skills” and interpersonal and relationship building skills
  • education and work transitions support

The Youth Job Connection — Summer program (YJC-S) provides part-time and after-school job opportunities to high school students aged 15 to 18 who are facing challenging life circumstances and may need support transitioning between school and work.

Young people across a broader spectrum of needs gain tangible work experience and continue to develop career-ready skills through participation in job placements and/or other experiential learning opportunities. When young people complete the pre‑employment services component, they develop and/or strengthen their:

  • job readiness skills
  • career and education pathway goals
  • personal management skills
  • job maintenance skills

This results in improved employability and an ability to retain employment or seek new employment opportunities. In 2020–2021, this meant that at the time of exit from the program, 42% of respondents reported being employed, and 56% reported they were returning to school. WDA funding for the YJC-S program in 2020–2021 supported around 4,800 clients.

Employer/organization-focused partnerships

Accessibility fund for students with disabilities

This program assists colleges and universities with costs related to the operation of Offices for Students with Disabilities. The fund supports services and accommodations that can help persons with disabilities to complete their postsecondary education. Examples of the services and accommodations supported by this funding include:

  • transition programs for incoming students
  • coordinating accommodation requests, such as note-taking support, tutors, extra time to write exam and interpreters
  • providing access to computers and appropriate technological learning aids

There are 46 publicly-funded colleges and universities in Ontario that receive funding through this program, and in 2020–2021 the program supported approximately 95,000 students.

Research and innovation

Skills Development Fund

The Skills Development Fund (SDF) is a program supporting projects that enable market-driven solutions and unlock the economic potential of apprenticeship, skilled trade and broader workforce development initiatives to facilitate post-pandemic recovery. The SDF seeks to address the challenges caused by the pandemic and provides flexibility to support innovative proposals that are aligned with Ontario’s workforce development objectives and its workers’ initiative.

Eligible recipients include:

  • employers with a presence in Ontario
  • approved non-college apprenticeship Training Delivery Agents (TDAs)
  • non-profit organizations with a presence in Ontario
  • professional/industry/employer/sector associations
  • trade unions/union affiliated organizations
  • municipalities

Successful projects must meet one or more of the following objectives:

  • encourage innovative ideas and solutions
  • enhance employer engagement
  • relieve pandemic-induced labour and financial impacts on businesses and people impacted by the pandemic
  • improve capacity of communities to respond to shocks to labour market conditions and support the province’s priority sectors
  • encourage the development of meaningful partnerships
  • reduce the administrative burden of human resourcing to support the quickest path to employment opportunities

The $162.5 million investment in the first round (round 1A) of the SDF supported 120 projects and aimed to support nearly 260,000 participants, including over 236,000 skills training opportunities. Eighteen (18) of these projects provided training opportunities to over 15,000 people in healthcare related fields. Fifty‑six (56) projects include supporting persons with disabilities as one of the client groups (projects may select multiple client groups to support).

Occupational Safety Group Project

One successful project supported through the SDF is the Occupational Safety Group (OSG) Project, which aims to increase online accessibility training for all Ontarians with disabilities in both official languages. The eLearning course authorizing tool gave employers and training providers the ability to quickly and easily develop online training courses that exceed the Accessibility for Ontarians with Disabilities Act, 2005, legislation requirements. These courses were unique to each employer and training provider, allowing them to:

  • onboard new workers
  • perform up-skill training on existing staff
  • expand the labour pool of highly skilled workers in Ontario

OSG delivered a sustainable and affordable product that can build fully accessible courses and offer expert accessibility consulting. This project aimed to support 100,000 participants.

Assisting Indigenous employment and training organizations

This initiative helped underserved Indigenous populations that lacked opportunities for apprenticeships or education upgrading. The initiative provided funding to 12 Indigenous employment and training organizations to deliver accredited skills and on‑the-job training to members of local Indigenous communities.

The training projects were developed among employment and training organizations and local employers in need of qualified staff. Initiatives include training for:

  • personal support workers in response to the ongoing pandemic
  • heavy equipment operators
  • construction craft workers
  • skilled trades (for example, carpentry, electrical and metal fabrication)

The initiative helped prepare Indigenous people for available and expected jobs by providing them with the skills and on-the-job-training required by local employers. This also helped local employers that were in need of qualified staff.

Conclusion

Ontario acted quickly to respond to the effects of COVID‑19 on the province’s labour market, providing employment and training programs designed to support workers to find or keep employment. During these times, Ontario was able to support over 1.2 million individuals through programs claimed under the WDA. Ontario’s work continues to be informed by, and work towards, the goals of various strategies, such as:

The continued partnership between Ontario and the Government of Canada is vital for economic recovery and the prosperity of all Ontarians. The next few years will be crucial for the province’s workforce development. There are key challenges that still need to be addressed, such as:

  • the changing nature of work
  • an aging population
  • technological advancements
  • labour and skills shortages

Ontario is ready and able to address these pressing issues to facilitate economic recovery, growth and innovation. The province is committed to working with the federal government to ensure that our shared goal of creating a strong labour market is achieved through our mutual commitment to workforce development under the WDA.

Appendix A

Ontario supported 52 programs in 2020–21 under the WDA, which include the following:

Skills Development:

  • Apprenticeship Completion Bonus
  • Apprenticeship Development Benefit
  • Apprenticeship In-Class Training
  • Co-Op Diploma Apprenticeship Program
  • Employer Completion Bonus
  • Grant for Apprenticeship Learning
  • Literacy and Basic Skills
  • Second Career

Employment Assistance Services

  • Career Services Centres at Publicly Assisted Colleges and Universities
  • Youth Job Connection
  • Youth Job Connection-Summer
  • Ontario Disability Support Program (ODSP) Income Support Employment Benefits
  • ODSP Employment Supports
  • ODSP Monthly Earnings Exemption
  • Supported Employment

Employer/Organization-Focused Activities

  • Accessibility Fund for Students with Disabilities
  • Supporting Ontario’s Tourism Regions
  • Supporting Francophone Communities, Northern Ontario
  • Sustaining Recovery of the Indigenous Tourism Industry

Research and Innovation

  • Aboriginal Skills Advancement Program
  • Apprenticeship Enhancement Fund/Apprenticeship Capital Grant
  • Assisting Indigenous Employment and Training Organizations
  • Employment Project for Youth with Disabilities
  • Expanded Dual Credit for Adult Learners
  • Expansion of French-Language Experiential Learning Opportunities for Franco-Ontarian Students
  • Extended Reality (XR) Equipped Online Learning Centres
  • French Language Learning Tools and Hybrid Training Model in Nursing Field
  • Group Sponsorship Grant
  • Improving Access to and Success in the Labour Market for Youth Leaving Care
  • Indigenous Targeted Initiatives Fund
  • Labour Market Information Enhanced/Website
  • Micro-credentials Portal
  • Mitacs
  • Northern Ontario Supports for Careers in Nursing in French
  • Ontario Disability Employment Network-Youth Success Strategy for Developmental Services
  • Pre-Apprenticeship COVID‑19 Relief Fund
  • Project SEARCH/Employment Inclusion Project
  • Skilled Trades and Employment Program for Justice-Involved Youth
  • SkillsAdvance Ontario
  • Skills Catalyst Fund
  • Skills Development Fund
  • Skills Development Fund — Occupational Safety Group
  • Support for Students with Disabilities at Indigenous Institutes
  • Supporting Immigrants Re-Entering the Labour Market
  • Supporting French Speaking Adult Learners in Eastern Ontario
  • Supporting Women Facing Multiple Barriers to Employment
  • Targeted High-Touch Employment Re-Training Program
  • Tools Grant
  • Training Delivery Agent Relief Grant
  • Urban Indigenous Homeward Bound Program
  • Urban Indigenous Homeward Bound Program — System Navigation Pilot
  • Virtual simulation-based training program in Long-Term Care

Relevant Sources