Item - 2023.EC3.5

The Economic and Community Development Committee recommends that:

1. City Council direct the General Manager, Toronto Employment and Social Services to not pursue the role of Employment Service System Manager for the Toronto Service Area, on behalf of the City, and to undertake the following actions to ensure the employment needs of social assistance clients and the best interests of the City are met:

a. continue to advocate with the Ministries of Children, Community and Social Services and Labour, Immigration, Training and Skills Development for an Employment Services Transformation implementation plan for the Toronto Service Area that maintains an appropriate level of employment services funding for Toronto Employment and Social Services.

b. establish a collaborative partnership with the vendor selected by the Ministry of Labour, Immigration, Training and Skills Development to serve as the Employment Service System Manager for the Toronto Service Area.

c. report back to Council following the selection of the Employment Service System Manager for the Toronto Service Area with an update on the system transition timeline and partnership activities underway between the City and the System Manager.

2. City Council direct the General Manager, Toronto Employment and Social Services, in collaboration with the General Manager, Social Development, Finance and Administration the General Manager, Economic Development and Culture, and the Chief Librarian, Toronto Public Library to report back to Council on opportunities for the City to best leverage its workforce development priorities and investments across several programs and Divisions to enhance employment outcomes for all residents, with a focus on low-income residents and social assistance clients.

The General Manager, Employment and Social Services and the Director, Employment and Social Services gave a presentation on Employment Services Transformation in Toronto.

In May 2021, Toronto Employment and Social Services reported to Council with details of Ontario's plan for Social Assistance Renewal which will impact recipients of the Ontario Works and the Ontario Disability Support Program and the municipal entities, including Toronto, that deliver Ontario Works. (May 6, 2021 Report to Council)

This report focuses on a key area of change, Employment Services Transformation, and provides recommendations on what role the City should play in the transformed Employment Service System.

Being implemented by the Ministry of Labour, Immigration, Training and Skills Development, Employment Services Transformation is intended to integrate social assistance employment programs with Provincial employment programs, led by the introduction of new Employment Service System Managers in local labour market areas, with a goal of reducing duplication across systems, promoting greater integration between Employment Ontario and Ontario Works providers and improving employment outcomes for recipients of Ontario Works and the Ontario Disability Support Program.

In developing recommendations on what role the City should play in the transformed employment service system, a comprehensive review, assessment (including financial impact assessment) and engagement plan was completed. Leveraging the City’s extensive partnerships and vast experience serving Ontario Works clients over many years, staff conducted the following activities to inform this report:

•  extensive engagement with key external stakeholders and the Province
• an assessment of financial risks related to the Employment Service System Manager role under the Integrated Employment Service delivery model; and
• a review of the City’s administrative capacity and financial resources necessary to sustain focus on multiple initiatives and priorities under the City’s Poverty Reduction Strategy which collectively aim to address the social, financial and employment barriers faced by low-income residents.

As this report highlights, these activities enabled a comprehensive risk assessment of the expected client impacts of the implementation of Employment Services Transformation in Toronto as well as implications for the future Employment Service System Manager. Based on this risk assessment, it is not recommended that the City pursue the role of Employment Service System Manager for the Toronto Service Area.

The recommendations below best position the City to influence and advocate for changes to address the assessed challenges by leveraging its expertise, partnerships and existing priorities designed to enhance the social, financial and employment barriers of low-income residents, while mitigating, to the extent possible, risk to the City.

Attachments to the Report

There are two attachments to this report. Attachment 1 comprises sections that provide more detailed context on certain elements; references are provided within the body of the report to assist the reader. Attachment 2 is the Employment Services Transformation & Workforce Development Engagement Final Report.