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Human Resources, Labour and Employment
October 29, 2009

Province Prepares to Assume Responsibility for
Labour Market Development Agreement

Next week, responsibility for Labour Market Development Agreement (LMDA) programs and services will transfer from the Federal Government to the Government of Newfoundland and Labrador. This means that effective November 2, the Provincial Government will assume responsibility for the design and delivery of approximately $133 million annually in EI-funded Employment Benefits and Support Measures.

�Assuming responsibility for the LMDA is an important component of an overall approach to respond to the new labour market challenges facing Newfoundland and Labrador,� said the Honourable Susan Sullivan, Minister of Human Resources, Labour and Employment. �The Williams Government is very excited about our new role as it will allow the province greater flexibility in the design and delivery of labour market programs and services in order to better meet local, regional and provincial labour market needs.�

LMDA programs and services are available to EI-eligible individuals and include self-employment assistance, skills development training, wage subsidies, job creation partnerships, employment assistance services and labour market partnerships

�Labour market conditions in Newfoundland and Labrador, as well as throughout Canada, have changed dramatically over the years with new challenges and opportunities emerging all the time,� said Minister Sullivan. �In the short-term, we will continue to deliver the same programs and services currently offered through Service Canada. However, in the longer-term, the province will be looking at our future labour market needs. We will work with our many partners including business, labour, post-secondary institutions and community organizations to ensure we have the right mix of programs and services in place to help individuals obtain the necessary training and employment needed to build and maintain a strong provincial workforce.�

To ensure seamless delivery of existing programs and services, approximately 75 federal staff will be transferring to HRLE offices throughout the province effective November 2.

�On behalf of the Provincial Government, I would like to welcome these new colleagues to the Public Service of Newfoundland and Labrador,� said Minister Sullivan. �These individuals have been directly involved in delivering LMDA programs and services with Service Canada and we are very pleased they have decided to accept employment with the province. We certainly look forward to them joining our team and continuing to serve LMDA clients and partners.�

Existing LMDA clients and third-community agencies have already been notified of this upcoming change. To complement these efforts, the Provincial Government has implemented a province-wide advertising campaign that will run for the month of November. Individuals are encouraged to contact Human Resources, Labour and Employment with any questions, toll-free 1-800-563-6600 or visit www.hrle.gov.nl.ca/hrle/lmda/ 

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Media contact:
Jennifer Collingwood
Director of Communications
Department of Human Resources, Labour and Employment
709-729-0753, 690-2498
jennifercollingwood@gov.nl.ca


BACKGROUNDER
Labour Market Development Agreement

Labour Market Development Agreements (LMDAs) are bi-lateral agreements between the Federal Government and the Provincial/Territorial Governments that provide funding focused on helping EI-eligible persons increase their opportunities within the labour market.

LMDAs were established in 1996 and many jurisdictions at the time chose to sign an agreement with the Government of Canada that transferred LMDA responsibility to the province. Under such an agreement, provinces and territories assume responsibility for the design, delivery and management of the programs and services.

Newfoundland and Labrador, along with a number of other jurisdictions, chose the co-managed model where the Federal Government delivers the programs and services but shares responsibility for the design, management and evaluation of these programs with provinces and territories. Since 1996, LMDA programs and services have been delivered in this province through Service Canada offices.

On September 5, 2008, the Government of Newfoundland and Labrador signed a devolved LMDA with the Government of Canada. Under a devolved LMDA, the Province assumes responsibility for the design and delivery of approximately $133 million annually in EI-funded Employment Benefits and Support Measures, effective November 2, 2009.

For the next two years, all provinces and territories will receive additional LMDA funding under the Federal Government�s stimulus package, which was released in the last federal budget. Newfoundland and Labrador�s share of this additional funding is an additional $14.7 million per year.

2009 10 29                                                 10:45 a.m.
 


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