The federal government is offering Canadian workers both an immediate lifeline and a long-term strategy for skills development.

The 2009 federal budget features several forms of assistance for Canadians who are unemployed, and for those seeking skills and training to seize new opportunities once the economy recovers.

“We need to help Canadians who are out of work to find new, good jobs,” Finance Minister Jim Flaherty said in his budget speech. “For that, we need to increase our investment in skills development.”

To help unemployed Canadians in the near-term, the government will boost the availability of training delivered through the Employment Insurance program with an injection of $1-billion, on top of the program’s current funding of $1.95 billion.

The funding will allow 100,000 more Canadians to receive training and support measures over the next two years. It will be allocated based on the share of unemployed persons in a province or territory.

“This measure will be especially beneficial for workers in those industries hardest hit by the global economic turmoil, such as manufacturing and forestry, as they prepare for careers in other sectors,” the budget states.

Canadians who are not eligible for training under the EI program, including self-employed individuals or those who have been unemployed for a prolonged period, are getting a lifeline, too. The budget includes $500 million over two years for the Strategic Training and Transition Fund, which will allow 50,000 more people to receive training and other assistance, according to the government.

The budget acknowledges that individuals who have worked in the same industry for many years are among those facing the greatest challenges. Such individuals who pursue longer-term training will be eligible for extended employment insurance benefits to allow them to gain the new skills needed to adapt to the changing economy. This initiative will come in the form of an additional $500 million over two years.

Aboriginal Canadians will receive specific skills and training assistance under the 2009 budget, with an additional $200 million over three years.

The budget features investment in the development of a highly skilled workforce, it says, with funding for research and education.

“Canada’s ability to prosper in today’s global, innovation-driven economy ultimately depends on the skills, knowledge and creativity of Canadians,” the budget states.

It includes an additional $87.5 million over three years for the federal granting councils, which will temporarily boost funding for graduate students. This will provide for an additional 50,000 doctoral scholarships and 1,000 master’s scholarships. An extra $3.5 million over two years will allow for an additional 600 graduate internships in science and business.

The budget also includes targeted aid for youth, with $20 million over two years to be delivered through the Canada Summer Jobs program. Older workers will benefit from $60 million over three years toward the Targeted Initiative for Older Workers, which provides a range of employment activities for unemployed older workers to help them stay in the workforce.

Acknowledging the shortage of skilled labour that is expected to continue in the years to come, the government has allocated $40 million per year to launch the Apprenticeship Completion Grant. Under that program, apprentices who complete their certification in any of the Red Seal skilled trades will be entitled to receive a taxable grant of $2,000.

As an additional form of aid for employers and employees, the 2009 budget includes a plan to freeze employment insurance premium rates for 2010 at $1.73 per $100 of insurable earnings, the same rate as 2009. This is the lowest level since 1982, according to the government.

“Canada enjoys some of the lowest payroll taxes among countries in the Organization for Economic Co-operation and Development, providing a competitive advantage to employees and their employers,” the budget states. It adds that freezing the rate will maintain this competitive advantage.

IE