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6. Summary and Conclusions


The purpose of this chapter is to present our summary observations and conclusions based on the data collected for this evaluation of POWA.

Program Targeting

POWA targets a segment of displaced workers that is in need of income assistance. The profile of POWA participants indicated that these workers generally have low levels of formal education and are concentrated in low skilled industries. Lack of educational credentials and portable skills translate into poor prospects for obtaining employment for these workers.

POWA is likely not reaching all older workers who could potentially benefit from the program. To some extent, the limited availability of POWA and the low profile maintained by the program limits outreach. The program's eligibility criteria also limit access. The exclusion of smaller layoffs excludes some of the most vulnerable segments of the labour market older laid-off workers from smaller companies with no or low severance payments or pensions.

Delivery and Timing

Participants generally expressed high levels of satisfaction with the program, although satisfaction levels were lower under Regime 2. From the perspective of participants, the delay between the time they are eligible for assistance and the time they start receiving benefits is a source of dissatisfaction. Some of these delays are external to the program operations, including delays in receiving the application and getting framework agreements in place.

Adjustment Services

POWA participants were more likely to have participated in adjustment services such as job search advice or retirement planning following their layoff than the comparison group. Given the types of layoffs from which POWA participants are drawn (mass layoffs, plant closures), they are more likely to have had these services available to them. Only a minority of workers in the participant and comparison groups pursued training following their layoff.

Labour Market Outcomes

Re-employment opportunities for older displaced workers in both the participant and comparison groups were poor, with only a minority finding work following their layoff. While most POWA participants and comparison group workers searched for work following their layoff, POWA participants were less likely to find full-time or part-time employment. The jobs which were found by POWA participants were more likely to be temporary and part-time and with lower earnings and benefits than the comparison group. It is evident from this evaluation that POWA is a mild disincentive to labour market participation. Further, changes to the program under Regime 2 did not stimulate greater labour market participant among participants.

In terms of earnings, the evaluation data indicate that workers in both the participant and comparison groups experienced a substantial loss of earnings following their layoff. This loss of earnings was significantly higher for participants than the comparison group. While POWA participants experienced a greater earnings loss, they fared better than the comparison group in terms of total income, at least in the shorter-term following layoff.

The income data indicate that POWA does not tend to promote financial self-sufficiency or encourage independence from other government support among participants. Rather, as intended in the program design, POWA links and supplements other government support programs. Since 87 and 88 per cent of the participants and the comparison group respectively received early CPP benefits, it would appear CPP is used as a national labour adjustment program for older workers.

Quality of Life

POWA appears to have contributed to a greater quality of life for the participants. Participants, particularly under Regime 1, express greater satisfaction with aspects of their life such as ability to spend time with family, and participation in social and recreational activities.

Contribution to the Community

While level of contribution to the community was not measured directly, POWA resulted in higher levels of income for participants which would be expected to yield benefits for the community in terms of higher expenditures. POWA also helps retain laid-off older workers within their own community. There was little evidence to support the notion of greater community participation in terms of voluntarism.

Conclusions

The evaluation evidence suggests that POWA has been a valuable adjustment strategy for many displaced older workers and has fulfilled a real need for this segment of the workforce. Because of the profile of the target group and current labour market realities, POWA functions primarily as a passive support strategy which provides needed financial support to workers.

The program's criteria, however, give rise to significant inequities. In particular, limiting eligibility to large layoffs functions to exclude many laid-off workers who could benefit from the program. These workers face adjustment situations which are often more challenging and severe than POWA participants.


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