CHARLOTTETOWN, PRINCE EDWARD ISLAND--(MARKET WIRE)--Sep 5, 2008 -- Prince Edward Island workers will be better prepared to be part of the growing economy, thanks to two new federal-provincial agreements announced today by the Honourable Jim Prentice, Minister of Industry, on behalf of the Honourable Monte Solberg, Minister of Human Resources and Social Development, and the Honourable Robert Ghiz, Premier of Prince Edward Island.

The first agreement, a new Labour Market Development Agreement (LMDA), will give Prince Edward Island the responsibility for delivering nearly $27 million annually in Employment Insurance-funded Employment Benefits and Support Measures. This will provide the Province with the flexibility to focus job training programs and employment supports on the local and regional needs of both employers and clients. The Province will assume this responsibility as of October 1, 2009.

The second agreement, a new Labour Market Agreement (LMA), will inject more than $12 million over the next six years into Prince Edward Island labour market programs and will provide an important resource that supports labour market training in the province. In an increasingly tight and competitive labour market, Prince Edward Island recognizes that economic growth will depend to a large extent on its ability to match labour force development with resources, thus ensuring employers have access to an educated, skilled and adaptable work force.

The funding will be used to enhance labour market participation of individuals by helping them to prepare for entering into, returning to or maintaining skills for employment. This agreement will provide employment and training programs for Islanders who are unemployed or underemployed.

"Through these new agreements Canada's Government will be helping up to 5,800 people in Prince Edward Island get the training and skills development they need, while also creating a pool of skilled workers," said Minister Prentice. "With today's announcement, we are one step closer to ensuring that our long-term economic plan, Advantage Canada, will continue to pay dividends for families in Prince Edward Island."

Premier Ghiz said these new agreements allow the Province to match its skills development programs with its economic agenda.

"Our government has a very clearly defined economic strategy, and the LMDA gives government the flexibility it needs to offer training and employment in the key sectors we have identified for growth," said Premier Ghiz. "This agreement will help expand and grow the Province's skilled educated workforce by giving Islanders job training opportunities, and it will also help employers meet their labour force needs."

Dr. Brian McMillan, Holland College President, is confident that the agreements will provide the foundation for Prince Edward Island to develop a highly skilled and adaptable labour force. "The College congratulates the Government of Canada and the Province of Prince Edward Island for establishing two very significant agreements that will enable Islanders, both employed and unemployed, to develop the necessary skills to have fulfilling careers in today's constantly changing knowledge economy," said Dr. McMillan.

As part of the agreement for the Province to assume responsibility for delivering services under the LMDA, federal employees currently doing this work in Prince Edward Island will receive job offers with the provincial government to continue their work. Discussions are now underway to promote a smooth transition for these employees and to ensure continuity of service to the individuals served under the LMDA.

The signature of these two labour market agreements fulfills commitments made in the Government of Canada's long-term economic plan, Advantage Canada, and the recent federal budget to create the best-educated, most-skilled, and most flexible work force in the world. Similar agreements have been signed with several provinces, and further agreements are being negotiated with other provinces and territories and will be signed in the coming months.

This news release is available in alternative formats upon request.

Visit the new Human Resources and Social Development Canada Web site at www.hrsdc.gc.ca.

BACKGROUNDER

The signature of these two labour market agreements fulfills commitments made in the Government of Canada's economic plan, Advantage Canada, and the recent federal budgets to create the best-educated, most-skilled, and most flexible work force in the world.

Canada-Prince Edward Island Labour Market Agreement

Under the new Labour Market Agreements, Canada's Government will invest $500 million annually over the next six years to increase the quantity and enhance the quality of Canada's labour force. These resources will be allocated to the provinces and territories on an equal per capita basis.

The new Canada-Prince Edward Island LMA will inject more than $12 million over the next six years into the Prince Edward Island labour market-based on current population estimates-beginning with an investment of $2.1 million in 2008-2009.

The new investments will focus on supporting skills development for unemployed and low-skilled employed individuals who are not eligible for training assistance under the Employment Insurance (EI) program, including groups who are under-represented in the labour market, such as

- Aboriginal people, immigrants, persons with disabilities, youth, women, and older workers; and

- individuals entering and re-entering the work force.

The investments being announced today will:

- provide a variety of supports to individuals and employers by assisting skills training tailored to specific occupations leading to higher skill levels;

- increase industry investment relating to human resource planning to train employees, improve competitiveness, and support economic growth and job creation; and

- improve access to literacy and essential skills training providing an essential linkage to the labour market and additional education.

The Labour Market Agreements contain commitments to:

- develop annual plans and engage stakeholders;

- manage financial resources provided under the agreement;

- measure the outcomes and benefits of investments in three areas-participants, service delivery and results;

- regular public reporting of results; and

- review and evaluate activities regularly.

These new arrangements also contain a commitment to ensure that federal investments do not displace normal provincial expenditures within the labour market.

In developing and delivering its eligible programs and services, the Province will take into account the needs of the official language minority communities within the province, and to deliver, where there is significant demand, services in either official language.

BACKGROUNDER

Canada-Prince Edward Island Labour Market Development Agreement

- Under the new Canada-Prince Edward Island Labour Market Development Agreement (LMDA), the Province assumes responsibility for the design and delivery of EI-funded employment benefits and support measures. Almost $27 million per year will be provided from the Government of Canada for this purpose.

- The new agreement replaces the existing co-managed agreement signed in 1997, under which the federal government retained responsibility for the design and delivery of EI-funded Employment Benefits and Support Measures. Labour Market Development Agreements have been successfully transferred in ten other provinces and territories.

- The agreement supports funding for labour market programs and services for Prince Edward Island residents who are now collecting EI benefits or have received them in the last three years or for parents re-entering the labour force who have collected EI parental benefits in the last five years. Last year, almost 4,400 unemployed Prince Edward Island residents benefited from EI-funded programs and services.

- The programs and services delivered under this agreement will be similar to the benefits and measures offered by the federal government under the previous agreement, including Job Creation Partnerships, Skills Development, Wage Supplements, Self-Employment Assistance, Employment Assistance Services and Labour Market Partnerships.

- In developing and delivering their eligible programs, the Province will take into account the needs of the official language minority communities within the province and to deliver, where there is significant demand, services in either official language.

- The agreement contains a commitment for financial management, performance measurement, regular public reporting on results, and ongoing review and evaluation.

- The Government of Canada retains responsibility for income support under the Employment Insurance Act. This agreement does not affect the delivery of benefits for eligible individuals.

- Under the agreement Prince Edward Island will assume responsibility for delivering employment programs and services, federal employees currently delivering programs and services in Prince Edward Island will be offered jobs with the provincial government.

- The new Labour Market Development Agreement will be fully implemented by October 1, 2009. Until then, the Government of Canada will continue to deliver EI-funded employment programs in Prince Edward Island. The Province will also ensure continuity of service by continuing agreements with third party service providers for up to two years.

     Contacts:
     Office of Minister Solberg
     Pema Lhalungpa
     Press Secretary
     819-994-2482
      
     Government of Prince Edward Island
     Department of Innovation and Advanced Learning
     Kim Devine
     902-620-3774
     kmdevine@gov.pe.ca
      
     Human Resources and Social Development Canada
     Media Relations Office
     819-994-5559