Calgary settlement agency lays off dozens of employees, citing funding uncertainty

In the midst of the largest wave of international migration the city has seen in two decades, a Calgary-based settlement agency says it has been forced into a mass layoff of its staff.

The Centre for Newcomers (CFN) — a non-profit organization that's been a key resource for immigrants and refugees to the city since 1988 —  let go of 65 employees over the last two weeks, citing uncertainty in its government funding.

The cuts will leave the centre with roughly 200 workers, Kelly Ernst, the CFN's chief program officer, told the Calgary Eyeopener.  Among those let go were settlement workers, case managers and English teachers, he said. 

The agency relies heavily on federal dollars to provide services and run its programs. Its 2023 financial statement notes that more than half of its funding comes from federal government grants.

And the demand for those programs is continuously increasing as the number of newcomers rises. The money the CFN is getting, however, isn't enough to keep up, the organization says. 

Ernst said the organization has seen an increase of more than 400 per cent in demand for services over the past two years.

"My understanding is the budget doesn't accommodate to maintain that level of funding, despite Calgary having pretty significant waves of immigration from newcomers," Ernst said.

"What that ultimately means is clients will be put on wait lists, will be told to go elsewhere, or they just simply won't be getting services in a number of different areas."

As needs arise, for example immigration growth or refugee waves fluctuate, contracts between settlement agencies and Immigration, Refugees and Citizenship Canada (IRCC) — the department that funds settlement agencies — may be amended to accommodate the demand.

Settlement organizations such as the CFN initially get a five-year contract with the federal government. 

In the past, the IRCC has adjusted investments over the course of the year to respond to pressures and when additional funding becomes available, the federal department said in a statement to CBC News. 

"In this instance, funding agreements were amended in March 2023 primarily to address pressures stemming from an influx of arrivals," said Michelle Carbert, a spokesperson with IRCC.

But Ernst says the CFN is still working under its original contract. 

"It was known ahead of time that, it didn't appear that we were going to be renewed," he said.

"There's still no word from the government as to how they're going to proceed going forward."

In the first quarter of 2023, international migration contributed 35,932 net new residents to Alberta, an increase of approximately 200 per cent from the same time last year.

The IRCC says that the planned investment for settlement services for Alberta will also increase about six per cent this year — from approximately $125 million in 2022/23 to nearly $133 million in 2023/24.