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Highlights of the Canada-Prince Edward Island Labour Market Development Agreement

Fundamental Elements

The governments of Canada and Prince Edward Island will play equal roles in the design of and decision making on active employment measures and services provided for in the Employment Insurance (EI) Act, as well as the operation of the National Employment Services (NES) on Prince Edward Island. The NES provides information on employment opportunities across Canada to help workers find employment and to help employers find suitable workers, including the provision of labour market information, labour exchange services and employment counselling.

These arrangements, through a new partnership between the two orders of government, are intended to ensure that the design of these programs will reflect the needs, circumstances and priorities on Prince Edward Island.

Under this agreement, the Government of Canada will retain full financial responsibility for EI-related active employment measures and services as well as for the NES, and will also remain responsible for delivery of all such programs and services.

Service will continue to be provided in both official languages where there is significant demand for assistance in that language.

Government of Canada Funding

During the initial five years of the agreement, the Government of Canada will spend over $107 million to help unemployed Islanders return to work. The allocations are as follows:

1997-1998		$17,787,000
1998-1999		$21,065,000
1999-2000		$22,788,000
2000-2001		$22,788,000
2001-2002		$22,788,000

The above allocations relate only to financial assistance for active employment measures funded under Part II of the EI Act. In addition, income support for EI claimants participating in training or other active employment measures will be provided in the constant annual amount of approximately $5,244,000.

About 4,400 active EI claimants will be served through the various program and service options during the fiscal year 1997-98.

Types of programs and services available

The EI Act provides for a range of active employment benefits and support measures so that people can get back to work as quickly and efficiently as possible. These are:

Employment Benefits



Targeted Wage Subsidies

Assistance provided to employers to encourage them to hire unemployed workers.



Targeted Earnings Supplements (under development)

Assistance provided to unemployed workers to encourage them to accept employment by offering incentives such as temporary earnings supplement.



Self-Employment Assistance

Assistance provided to unemployed workers to encourage them to start their own businesses.



Job Creation Partnerships

Assistance provided to employers to create employment opportunities for unemployed workers, and allow them to gain work experience that will improve their long-term employment prospects.



Skills Loans and Grants

Assistance provided to unemployed workers to help them obtain skills for employment, ranging from basic to advanced skills.

Support Measures



Local Labour Market Partnerships

Assistance provided to employers, employees and employer associations, community groups and communities to improve their capacity for dealing with human resource requirements and implementing labour force adjustment.



Employment Assistance Services

Assistance provided to organizations that provide employment services to employed persons.



Research and Innovation

Assistance provided to support activities that identify better ways of helping people prepare for, return to, or keep employment and be productive participants in the labour force.

Implementing the agreement

Following the signing of the agreement, the two governments will form a joint Management Committee to oversee its effective administration and implementation. The Management Committee will be composed of representatives from Human Resources Development Canada, Atlantic Canada Opportunities Agency, Industry Canada and their provincial counterparts from the Executive Council office, and the Department of Development, the Department of Education, and the Department of Health and Social Services.

The agreement also promotes partnership and co-operation with other labour market partners such as employers, workers and community-based organizations. Major stakeholders will be key contributors to the development and design of the measures to be implemented under this agreement.

Term of Agreement

The agreement will commence immediately, and will remain in force for an indefinite period. A full review of the agreement will be undertaken within the first three years to determine if mutually desired results are being achieved. For planning purposes, specific financial commitments have been outlined for the initial five-year period and projections will be provided on a rolling three-year basis thereafter.