N.S. shifts employment support for income assistance recipients, resulting in layoffs

HALIFAX – The Nova Scotia government is changing how residents on income assistance receive employment support, in a shift that will impact as many as 85 provincial positions and result in some layoffs.

Officials with the Department of Opportunities and Social Development and the Department of Labour, Skills and Immigration say beginning next month, about 1,100 income assistance recipients who are ready to look for work will be referred to Nova Scotia Works — the province’s free employment support network.

This is instead of seeking help through an income assistance-specific employment service offered by the Department of Opportunities and Social Development, which will wind down as part of the change.

The associate deputy minister with the Department of Opportunities and Social Development says the move will streamline access to support and reduce duplication of services. Shelley James says it will also contribute to removing some stigma, because all Nova Scotians can soon access the same employment services.

As a result of the change, about 300 staff were issued a voluntary call for resignation Tuesday, and three non-union workers were laid off.

James said between 75 and 85 full-time positions will be impacted by the change, but that does not represent the number of individuals who will be laid off. 

“We do have a number of vacancies in the department that we will be looking to fill. So this, the voluntary (resignation) call, is the first step that we are taking in the process to try and minimize the number of layoffs,” she said.

Nova Scotia’s 2026-27 budget included a five per cent annual cut in the civil service and a three per cent cut in the broader public service, including Crown corporations, for the next four years.

James said the workforce impact resulting from this program shift “was not the driving factor behind the change. It really is about modernizing the employment support system.”

The president of the Nova Scotia Government and General Employees Union said the labour group is concerned the province is pursuing workforce reductions without a plan to maintain service levels or support workers. 

“The reality of the situation is that fewer workers means less capacity to deliver the programs and services Nova Scotians depend on,” Sandra Mullen said in a statement Tuesday. 

The associate deputy minister said she’s confident in Nova Scotia Works’ ability to handle the increase in clients, and it’s her hope the change will make employment support easier to access.

“Nova Scotia Works serves more than 50 communities in the province, and OSD (Opportunities and Social Development) has 23 regional offices where supports are being provided… Greater access, we would like to think, will result in timely supports for our clients,” she said. 

This report by The Canadian Press was first published Aug. 11, 2026.