But failure to address healthcare worker shortage draws stinging criticism
To a backdrop of labour shortages, lingering concerns about COVID and geopolitical upheaval, finance minister Chrystia Freeland unveiled a budget she believes can spur the creation “good-paying” jobs for Canadians and grow the economy.
She hailed Canada’s jobs recovery and said that economic scarring from the pandemic had largely been avoided, with unemployment lower than when the pandemic started.
While warning about the economic impact of the “illegal and barbaric” Russian invasion of Ukraine, the budget vowed to invest in skills and immigration to ensure that the Canadian workforce is prepared for the economy of today, and tomorrow.
Freeland said: “The government is focused on positioning Canada to thrive in an uncertain world. Budget 2022 takes needed steps to create an environment that spurs the investments we need to grow our economy, create new, good-paying jobs for Canadians, and grow the middle class.”
The budget went big on its message of making life more affordable and growing the labour force, improving workers’ skills and increasing the stock of productive capital.
Among the political parties, NDP Leader Jagmeet Singh pledged support from his caucus, saying the Liberals acted “with good faith'' by funding key New Democrat priorities such as dental care. However, Candice Bergen, interim leader of the Conservatives, criticized the budget as a ``tax-and-spend'' plan, saying the NDP had made Justin Trudeau lurch to the left: ``The Liberals have gone so far to the left they are becoming like the NDP.”
Despite the rhetoric about affordability, the budget offered little in the way of new spending to bolster the country’s struggling health system. In particular, Freeland did not appear to respond to pleas from health workers to address a serious staff shortage, a result of burnt-out employees reducing their hours and leaving the industry.
The Canadian Federation of Nurses Unions president Linda Silas says they were left disappointed. “We've been telling all levels of government that we're in a crisis situation, and we needed strong words today,'' Silas said, according to report by The Canadian Press.
Canadian Medical Association president Dr. Katharine Smart said the budget identified some key areas of concern, but given the state of the system, action is needed. ``We are still in this pandemic, it's not over. In fact, it's potentially getting worse right now. The health workforce is struggling and we would like to see more tangible investments for the health workforce and the health system.”
New measures did include expanding loan forgiveness for doctors, nurses and other health professionals in rural and remote communities, as well as making it easier for foreign trained professionals to be certified in Canada.
The government also announced that it expects to spend $5.3 billion over five years on dental care and has also committed to passing a legislative framework for a national pharmacare plan by the end of 2023. The latter forms part of the Liberal's deal with the NDP, but did not set aside any funds for the program in the budget.
HR highlights from Budget 2022:
Labour Mobility Deduction for tradespeople: Improving labour mobility for workers in the construction trades can help to address labour shortages and ensure that important projects can be completed across the country. Budget 2022 proposes to introduce a Labour Mobility Deduction, which would provide tax recognition on up to $4,000 per year in eligible travel and temporary relocation expenses to eligible tradespersons and apprentices. This would apply to the 2022 and subsequent taxation years.
An employment strategy for persons with disabilities: Employment rates are much lower than those of Canadians without disabilities — 59 per cent versus 80 per cent, according to the 2017 Canadian Survey on Disability. Budget 2022 proposes to provide $272.6 million over five years to support the implementation of an employment strategy for persons with disabilities through the Opportunities Fund, which will increase labour market participation by persons with disabilities and make workplaces more inclusive and accessible.
Doubling the Union Training and Innovation Program: Budget 2022 proposes to provide $84.2 million over four years to double funding for the Union Training and Innovation Program, which would help 3,500 apprentices from underrepresented groups — including women, newcomers, persons with disabilities, Indigenous peoples, and Black and racialized Canadians — each year to begin and succeed in careers in the skilled trades through mentorship, career services, and job-matching.
Modernizing Labour Market Transfer Agreements: Every year, the federal government provides more than $3 billion in funding to provinces and territories to provide training and employment support through the Labour Market Transfer Agreements. These investments help more than one million Canadians every year prepare for their next job through programs ranging from skills training and wage subsidies, to career counselling and job search assistance. Budget 2022 proposes to amend Part II of the Employment Insurance Act to ensure more workers are eligible for help before they become unemployed, and that employers can receive direct support to re-train their workers.
Supporting foreign credential recognition in the health sector: The pandemic has only worsened the labour shortages in our health care sector. Internationally trained health care professionals can help fill these gaps and ensure that Canadians receive the quality health care they deserve. Budget 2022 proposes to provide $115 million over five years, with $30 million ongoing, to expand the Foreign Credential Recognition Program and help up to 11,000 internationally trained health care professionals per year get their credentials recognized and find work in their field. It will also support projects — including standardized national exams, easier access to information, faster timelines, and less red tape — that will reduce barriers to foreign credential recognition for health care professionals.
Improving the Temporary Foreign Worker Program: Budget 2022 proposes a number of measures to increase protections for workers, to reduce administrative burdens for trusted repeat employers, and to ensure employers can quickly bring in workers to fill short-term labour market gaps. These include:
- $29.3 million over three years to introduce a Trusted Employer Model that reduces red tape for repeat employers who meet the highest standards for working and living conditions, protections, and wages in high-demand fields. Further details on this program will be announced in the coming year.
- $48.2 million over three years, with $2.8 million in remaining amortization, to implement a new foreign labour program for agriculture and fish processing, tailored to the unique needs of these employers and workers.
- $64.6 million over three years to increase capacity to process employer applications within established service standards.
- $14.6 million in 2022-23, with $3 million in remaining amortization, to make improvements to the quality of employer inspections and hold employers accountable for the treatment of workers.
Immigration: As the world recovers from the pandemic and travel restrictions are lifted, Canada can expect to see a growing number of temporary residence applications, visitor visas, and study permits. Budget 2022 proposes to provide $385.7 million over five years, and $86.5 million ongoing, for Immigration, Refugees and Citizenship Canada, the Canada Border Services Agency, and the Canadian Security Intelligence Service to facilitate the timely and efficient entry of a growing number of visitors, workers, and students.