MTCU Employment Services Transformation - Update May 2019
May 22, 2019
On February 12, 2019, as part of the government’s mandate to make Ontario open for business, the Minister of Training, Colleges and Universities announced plans to transform employment services to ensure job seekers and businesses are provided with the best possible employment services.
While positive successes have been achieved, the Provincial Government identified a number of areas for improvement that they feel need to be addressed to ensure jobseekers, including those on social assistance find and keep good jobs, and to help employers recruit the skilled workers they need to grow their businesses.
In Ontario, social assistance is provided by the Ministry of Children, Community and Social Services (MCCSS) under two programs:
- Ontario Works –for unemployed or underemployed people in temporary financial need;
- Ontario Disability Support Program (ODSP) –provides income and employment supports to eligible people who have a disability in financial need, and their families.
In 2017-18, MTCU reported that the province spent $8.1 billion to provide social assistance to approximately 610,000 individuals as well as to their qualifying family members for an average total of 950,000 people a month. Of this total, approximately 60% of these individuals received assistance through the ODSP and 40% received assistance through Ontario Works.
After many studies and audits, it was determined that the existence of three separate employment systems –Employment Ontario, Ontario Works Employment Assistance and ODSP Employment Support –has created challenges for seamless access to services for job seekers and employers.
In turn, MTCU feels that this is an opportunity for the government to create a more locally responsive employment services system that delivers better employment outcomes for individuals regardless of their needs. This system will deliver sustained employment outcomes for all individuals and businesses, based on their needs.
It is acknowledged that people with higher or unique support needs including social assistance clients, people who have a disability, Indigenous and francophone clients, need access to timely services that better meet their support needs.
On May 15, 2019 MTCU hosted an in-person Vendor Market Day in Toronto. It was attended by interested parties from across the province, including many ODEN members. At this session the ministry proposed that through transformation, they will be able to achieve the following outcomes:
- Greater Labour Force Participation
- Increased number of Ontarians completing training or employment programs
- More jobseekers, including those on social assistance and people who have a disability, obtain quality and sustainable employment
- Locally Driven Service
- Services delivered meet the needs of the local community
- Promising practices for local programs are shared and implemented
- Integrated and Coordinated Service Delivery
- Services are sequenced based on individual need
- Ontarians experience excellent quality of service
- Fewer individuals return for services without a cause
4. Aligned Training Services to Local Business Needs
- Local collaboration (employers, colleges, municipalities and others) occurs to improve the local talent supply
- Employer capacity improves because employees have the right skills
There is no solid model to share at this time.
The Vendor Market Day also included one-on-one sessions with MTCU, where service agencies and other interested parties could discuss the process to become a Service System Manager and comment on the proposed components. ODEN will continue to engage in discussions in the coming months with MTCU.
Highlights of the proposed components of the model (exert from the Vendor Market Day materials):
Service Targeting
Service targeting will provide a common way of assessing and grouping clients into job seeker categories based on their needs. At ODEN, we know that a Common Assessment Tool is of great concern to many of our members, and we have been collecting all of your feedback on this issue.
During the Vendor Session we highlighted the concerns, posed questions to the ministry about how they are developing this tool, and offered to support them during that process. We will be following up with MTCU to reiterate our offer of assistance.
Digital Delivery
The government is exploring an opportunity for improved access to services by offering a single client-centered online channel to support job seekers in their employment search. They are interested in the potential for a cost-effective digital channel to support expanded access when delivering services for job seekers. As this idea develops we will bring more information to the membership.
Outcomes-Based Funding
Portion of service system manager funding will be linked to the achievement of client employment outcomes. Funding for service system managers may also include operating, milestone, outcomes and flow-through payments. Competition and performance management will be a core element of the system to drive service innovation and strengthen accountability in the system.
It was highlighted to MTCU during the Vendor Session that outcome-based funding models can create challenges for service providers and can lead to exclusion for job seekers who may have higher support needs or take longer to achieve their goal of gaining successful employment. MTCU acknowledged this concern and said they are committed to finding solutions for a funding model that will work for all service providers.
Scope of Authority
At full system maturity, service system managers would be responsible for overseeing a locally responsive and competitive employment and training system.
Service system management may include planning, design, and selection of services/programs required to achieve employment outcomes for all jobseekers and employers within their catchment area.
It is important to note that in the new service delivery model, the Ministry will not have a direct relationship with service providers (as it currently does). Instead the Ministry will have a direct relationship with Service System Managers, who will manage relationships with individual service providers in their catchment area(s). Employment programs for Ontario Works and ODSP will be integrated into the new employment and training system.
Catchment Areas
The ministry is considering using Statistics Canada Economic Regions to establish its service system manager catchment areas, except in higher density areas where Census Division boundaries would be used. Currently there are 15 proposed areas. The map is available on the MTCU website and can be viewed in the pdf below. Service system managers would be responsible for the delivery of employment services in a given catchment area/service zone.
At ODEN we know that the coming months will be challenging for agencies, as you plan your service delivery within a constant state of change. We continue to be thankful for the feedback and comments that the membership has provided on this matter. The collection of your cautions, suggestions, and recommendations is being compiled into a report that will be provided to the government to help support them as they work towards the creation of this new model.
For more information please visit the MTCU’s Employment Services Transformation website:
Also see Employment Service notices on the MTCU website posted April 18, 2019, including: