The following statement was issued today by Joan Burke, Minister of Human Resources, Labour and Employment. It was also read in the House of Assembly:

I rise today to inform my colleagues of a new wage subsidy program that has just been introduced by the Department of Human Resources, Labour and Employment - NL Works.

NL Works offers profit and not-for-profit employers with a wage subsidy to create new positions. This, in turn, provides individuals with valuable work experience and skills to improve their attachment to the labour market. The program is open to income support clients who are non EI eligible or unemployed and under-employed individuals who are non EI eligible and actively seeking work.

NL Works is a combination of the department�s three separate wage subsidy programs streamlined into one core program. With it comes a number of improvements for clients and employers.

For this year, government has invested $1.8 million in this program, a $250,000 increase from last year�s funding of wage subsidy programs. This increased funding will see approximately 450 new positions for clients this fiscal year.

One core wage subsidy program is less confusing for clients since it involves a single application process.

The program also offers increased flexibility in the duration of wage subsidies. Employers choose the number of weeks they want to apply for under the seasonal and long term components. This change allows NL Works to be responsive to local labour market conditions and needs. The new program also offers a higher wage subsidy rate which may encourage employers to pay higher wages.

Combining our wage subsidy programs into one program is a decision based on numerous surveys and consultations with employers and other participants involved in our previous wage subsidy programs. Feedback from clients, employers and HRLE staff on how we can improve our wage subsidy programs formed the basis of NL Works.

NL Works is one example of the overall redesign of the Department of Human Resources, Labour and Employment in an effort to simplify and improve services for clients.

2005 05 10                                                 3:10 p.m.