Liberals cut more than $70M in Alberta jobs funding; thousands of workers affected

Alberta's Minister of Jobs, Economy and Trade, Matt Jones, has announced the Canada-Alberta Job Grant program will be put on indefinite hold for the remainder of the 2024-25 fiscal year following an unexpected cut of $70.8 million in federal funding.

The federal government's decision to reduce Labour Market Transfer Agreement (LMTA) funding has forced the provincial government to suspend the job grant program, which has been vital for workforce development in Alberta, he said.

Jones expressed his frustration in a statement, citing repeated but unsuccessful appeals to Prime Minister Justin Trudeau and Minister of Employment, Workforce Development and Official Languages Randy Boissonnault to reconsider the cuts.

“Despite several letters to the federal government...the federal government has proceeded with their LMTA cut for Alberta’s workers,” stated Jones.

The funding reduction means Alberta's employers will be short approximately $10 million for skills and training in 2024-25, impacting around 1,000 businesses and the training of up to 4,000 employees.

The Canada-Alberta Job Grant program, a critical component of the LMTA, provided nearly $27 million in 2023-24 to support Alberta employers in training new workers and enhancing the skills of existing employees. Small- and medium-sized businesses received about 80% of this funding, which has been instrumental in addressing skills shortages in key industries such as construction, health care, and education.

“This cut to funding has serious, far-reaching consequences for workers and comes at a time when Alberta continues to face critical skills shortages,” Jones said.

The grant program has been essential in helping thousands of Albertans acquire the necessary skills to secure and maintain employment, thereby strengthening Alberta’s labor market and economy, he said.

In response to the federal cuts, Alberta's government is now focusing on developing and implementing new employer-led training programs to provide similar opportunities for job-related skills development.

“While we are disappointed with the federal government’s decision to cut LMTA funding, we remain committed to addressing labor shortages and skilled-training gaps through innovative programs that meet the needs of employers, training providers, and industry,” Jones said.