The provincial and federal governments are going back-and-forth about changes to jobs funding. (Photo: Pattison Media)

By David Opinko

Alberta Government decries reduction of jobs funding, Ottawa says not a ‘cut’

Aug 8, 2024 | 9:17 AM

There will be less money flowing to Alberta to support jobs this year.

The province’s Minister of Jobs, Economy and Trade Matt Jones is calling out what he says is “Ottawa’s unexpected and unreasonable decision to cut $70.8 million in Labour Market Transfer Agreement (LMTA) funding for Alberta.”

As a result, the Government of Alberta is putting the Canada-Alberta Job Grant on hold for the remainder of the 2024-25 fiscal year.

The agreement supports workforce development programs that help Albertans to get the training they need in order to find and keep good jobs. It also provided small and medium-sized businesses with approximately 80 per cent of the cost of helping current employees to gain job-related skills.

This past year, the Canada-Alberta Job Grant gave out nearly $27 million to businesses.

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Jones says the supposed funding cut came despite several letters being sent to the federal government, urging it to not go ahead with the change.

“This cut to funding has serious, far-reaching consequences for workers and comes at a time when Alberta continues to face critical skills shortages in several industries, including construction, health care and education,” says Jones. “The Canada-Alberta Job Grant program has helped thousands of Albertans close skills gaps, further strengthening Alberta’s labour market and growing our economy.”

Alice Hansen, a spokesperson with the federal Office of the Minister of Employment, Workforce Development and Official Languages, told Pattison Media that no cuts have been made to the LMTAs.

She explains that the federal government had been providing temporary top-up funding to provinces and territories each year since 2017, which came to an end at the conclusion of 2023-24.

“We announced in Budget 2023 that that top-up funding was extended for only one year. The provinces and territories were aware of that funding coming to an end. Some provinces and territories took action and reallocated some funds and some did not,” says Hansen.

“The base funding continues and has not changed.”

The Government of Canada provides nearly $3 billion in base finding to provinces every year.

Alberta is still set to receive $250 million in 2024-25 through the LMTA and Workforce Development Agreements.

Hansen concludes her statement by encouraging Minister Jones to work within his own government to utilize the funds being given to Alberta to support workers, and by taking a shot at the provincial government.

“Alberta posted a $4 billion dollar surplus last year, it is disappointing that they are not willing to step up for Alberta workers.”

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