Governments of Canada and Northwest Territories finalize agreement to help people in the Northwest Territories get jobs

YELLOWKNIFE, Aug. 12, 2014 /CNW/ - The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development, on behalf of the Honourable Jason Kenney, Minister of Employment and Social Development, and the Honourable Jackson Lafferty, Northwest Territories Deputy Premier and Minister of Education, Culture and Employment today announced that the Canada Job Fund, which includes the creation of the Canada Job Grant, has been signed by the governments of Canada and the Northwest Territories to help connect Canadians with available jobs.

The Canada Job Grant is an innovative, employer-driven approach to help Canadians gain the skills and training they need to fill available jobs. It is designed to be flexible enough to meet the needs of businesses of all sizes, in all industries and regions. By requiring employers to put more skin in the game, the Canada Job Grant will result in training that leads to guaranteed jobs. The Canada Job Grant will be delivered though the new Canada-Northwest Territories Job Fund Agreement (formerly known as a Labour Market Agreement).

Through this agreement, the Government of Canada will transfer over $1.1 million to the Government of the Northwest Territories to ensure that northerners have the skills needed in today's economy.

Quick Facts

• According to the Conference Board of Canada, real economic growth in the Northwest Territories is expected to rise by 1.3 percent in 2014, by 2.5 percent in 2015 and by a robust 7.9 percent in 2016.
• BuildForce Canada has noted that the Northwest Territories generates nearly 50 percent of all economic activity in Canada's territories.
• The Canada Job Grant will provide employers with up to $10,000 for training costs such as tuition and training materials for an individual worker.
• The Government of Canada provides over $19 million annually in support of skills training in the Northwest Territories.

Quotes

"Our government's top priorities are creating jobs, economic growth and long-term prosperity. The Canada Job Grant is part of our commitment to address the paradox of too many Canadians without jobs in an economy of too many jobs without Canadians. With employers' skin in the game, the Canada Job Grant will lead to a guaranteed job. Helping employers train Canadians for jobs that need to be filled will help their businesses grow and succeed. And that is good news for the economy of the Northwest Territories."
- The Honourable Jason Kenney, Minister of Employment and Social Development

"Our government is committed to creating jobs, economic growth and long-term prosperity. The Canada Job Grant will give northerners the skills employers are looking for in today's economy. This new initiative will lead to guaranteed jobs, which will further the economic success of the Northwest Territories."
- The Honourable Bernard Valcourt, Minister of Aboriginal Affairs and Northern Development

"Working with the Government of Canada to help provide responsive and flexible funding programs that meet the training needs and skills development of our Northern residents is a priority for our Government. The Canada-Northwest Territories Job Fund is just one of the many programs that individuals and employers can access and we are happy to be able to continue to work with our partners at all levels of government to help improve the employability and job satisfaction of all our residents."
- The Honourable Jackson Lafferty, Minister of Education, Culture and Employment, Government of the Northwest Territories

Associated Links

Canada Job Grant

Backgrounder

Canada-Northwest Territories Job Fund

The Labour Market Agreements, created in 2007, are being transformed into the new Canada Job Fund to ensure greater employer involvement in training. Through the Canada Job Fund, the Government of Canada will transfer approximately $1.1 million to the Government of the Northwest Territories. This includes the Northwest Territories' per capita share of the Canada Job Fund and $500,000 in supplementary funding to recognize the distinct labour market needs of the territories.

Canada Job Grant

The Canada Job Grant will help Canadians get the training they need for available jobs and put skills training decisions in the hands of employers. It will provide up to $15,000 per person for training costs such as tuition and training materials, which includes up to $10,000 in federal contributions. Employers will be required to contribute on average one-third of the total costs of training. The Northwest Territories will be developing the Canada Job Grant over the coming months.

The provinces and territories will have full flexibility on the source of funds for the Canada Job Grant. They may be sourced from provincial/territorial allocations under the Canada Job Fund, the Labour Market Development Agreements or provincial/territorial sources.

The Canada Job Grant will be for short-duration training provided by an eligible third-party trainer, such as community colleges, career colleges, trade union centres and private trainers. Training can be provided in a classroom, on site at a workplace or online.

All private and not-for-profit businesses with a plan to train Canadians for a new or better job will be eligible to apply for a Canada Job Grant, once implemented.

The Canada Job Grant will be flexible enough to meet the needs of businesses of all sizes, in all industries and regions. Small businesses will benefit from flexible arrangements, such as the potential to count wages as part of the employer contribution. This will help ensure that all businesses, regardless of size, can fully participate in the Canada Job Grant.

The Canada Job Grant will ensure that employers participate meaningfully as partners in the skills training system, sharing in the associated costs. This will ensure that training is better aligned with job opportunities, particularly in sectors facing skills mismatches and labour shortages.

The Canada Job Grant is strongly supported by employers and other stakeholders, including:

• The Building and Construction Trades Department, AFL-CIO;
• National Association of Career Colleges;
• Canadian Federation of Independent Business;
• Canadian Manufacturers & Exporters;
• Canadian Construction Association;
• Information Technology Association of Canada;
• Canadian Welding Bureau;
• Engineers Canada;
• Progressive Contractors Association;
• Christian Labour Association of Canada;
• Canadian Home Builders' Association;
• Canadian Shipowners Association;
• Canadian Electricity Association;
• Canadian Institute of Plumbing and Heating;
• Merit Canada;
• Polytechnics Canada;
• Prospectors and Developers Association of Canada;
• Chemistry Industry Association of Canada; and
• Aerospace Industry Association of Canada.

SOURCE: Employment and Social Development Canada