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Labour Market Transfer Agreement Funding

Res #: 11-25A
Number: 11
Year: 2025
Midterm: No
Expired: No
Responses Received: Yes
Departments: Saskatchewan Ministry of Labour Relations and Workplace Safety, Minister of Employment, Workforce Development and Labour

WHEREAS many businesses, agricultural producers and municipalities require employees that have 1A driver licenses.

WHEREAS that in 2024-25, the federal government cut $17.6M in employment and skills training funding to the province but the province bridged this shortfall to keep the programs and services operational.

BE IT RESOLVED that SARM lobby the federal government to reverse cuts done through the labour market transfer agreements.

BE IT FURTHER RESOLVED that SARM lobby the provincial government to develop a labour training grant program to compliment the federal program.

Responses From: Saskatchewan Ministry of Immigration and Career Training & Employment and Social Development Canada

March 28, 2025

On March 19, 2025, the Government of Saskatchewan released the provincial budget, which included a reduction in funding for Labour Market programs. This is due to the unexpected 2024 federal reduction of $17.6M in Labour Market Transfer Agreements.

This federal reduction has impacted the delivery of employment and training programs at a time when there is increasing demand across the province. The province has had to adjust and prioritize programs and services, resulting in the closure of the Canada-Saskatchewan Job Grant (CSJG).

To support the acquisition of a 1A license and meet Mandatory Entry Level Training requirements, the provincial budget introduced the Saskatchewan Class 1 Truck Driver Training Rebate which provides a $5,000 rebate to partially cover the cost of Class 1 truck driver training. The rebate will be paid out over five years, $1,000 annually after training is completed and if the driver continues to work and file income taxes in Saskatchewan. Further program details will be available in September 2025.

Jim Reiter – Minister of Immigration and Career Training, Government of Saskatchewan

July 9, 2025

On behalf of the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, I am responding to your letter of March 18, 2025, addressed to her predecessor, the Honourable Steven MacKinnon. You conveyed a recent two-part resolution passed by the Saskatchewan Association of Rural Municipalities, that touched on funding under the Canada-Saskatchewan (SK) labour market agreements. I am grateful for your bringing this resolution to our attention.

The Government of Canada invests $2.9 billion annually under the Labour Market Development Agreements and the Workforce Development Agreements with the provinces and territories. These agreements support approximately 800,000 Canadians every year to get the training and employment supports they need to take advantage of economic opportunities. In 2024–2025, the Government of SK received $65.8 million in annual funding from the Government of Canada to invest in labour market development programs. Canada’s contribution enabled 30,000 Canadians in SK to access the training and employment supports they need in 2023–2024.

Under the labour market agreements, the Government of Canada provides funding to the Government of SK. In turn, your provincial government consults with program clients and stakeholders, with a view to aligning its labour market programming with provincial labour market needs.

For more information on employment and skills training programs designed by the Government of SK and funded by the Government of Canada, please visit the webpage of the SK Ministry of Immigration and Career Training (www.saskatchewan.ca/government/government-structure/ministries/immigration-and-career-training). You can also reach the Honourable Jim Reiter, Minister of Immigration and Career Training for the Government of SK, by calling 306-787-6060, or by emailing fin.minister@gov.sk.ca.

Thank you for sharing the Saskatchewan Association of Rural Municipalities’ views on this important matter.

S. Deen – Director General, Intergovernmental Policy and Programs Directorate, Skills and Employment Branch, Employment and Social Development Canada