Question Period Note: THE SECTORAL WORKFORCE SOLUTIONS PROGRAM

Canada’s key sectors are struggling to build the well-resourced talent pipelines needed to meet labour demands and capitalize on growth opportunities. Chronic labour shortages, persistent skills mismatches, and underinvestment in fragmented skills and employment programming across the country are limiting Canada’s productivity and competitiveness.

The Government of Canada is creating new opportunities under a one-economy approach and investing to ensure Canadians have the skills needed for in-demand jobs

That is why we are making strategic investments in sectors and high-impact areas, including sustainable jobs and residential construction through the Sectoral Workforce Solutions Program.

These investments help key economic sectors implement solutions that address their current and emerging workforce needs. They also enhance labour market efficiency and support better alignment between workers skills and industry needs through sector-focused training and employer-driven supports.

IF PRESSED (Sectoral Workforce Solutions Program)

Recent and upcoming strategic investments in sectors through the Sectoral Workforce Solutions Program include:

$75 million for the Sustainable Jobs Training Fund to help workers upgrade or gain new skills for low-carbon economy jobs;

$94.5 million to support strategic projects in residential construction and other key economic sectors; and

Up to $10 million to increase training for early childhood educators.

These initiatives also support equity-denied groups and provide wrap-around supports to those facing barriers to labour market participation.

The Sectoral Workforce Solutions Program (SWSP) is a contributions program that helps key sectors of the economy implement solutions to address their current and emerging workforce needs.

The SWSP funds sectoral projects that focus on a wide range of industry-driven activities such as training and reskilling workers, helping employers attract and retain a skilled and diverse workforce, and developing and implementing other solutions to help sectors address labour market needs.

The program helps address workforce needs in key sectors such as: agriculture and agri-food; construction; health; information and communication technologies; manufacturing; natural resources and environment; tourism; and transportation.

Since its launch through Budget 2021, SWSP has invested over $560 million on 55 projects, including 21 projects across eight key economic sectors, 10 projects supporting persons with disabilities, 22 projects in the tourism sector and two projects dedicated to training, employer supports and labour market information (LMI) in the long-term care and energy sectors. The program has supported training activities for approximately 131,000 participants, 40% of whom identified with an equity-seeking group, and engaged approximately 37,000 employers and stakeholders to develop and implement over 3 100 workforce solutions and tools (i.e., LMI reports and dashboards, National Occupational Standards, occupational profiles, training curricula, skills transferability matrices, etc.).

Announced in the 2022 Fall Economic Statement, the Sustainable Jobs Training Fund supports a series of eight training projects that will help over 10,000 workers upgrade or gain new skills for jobs in the low-carbon economy. The Fund focuses on low-carbon energy and carbon management, green buildings and retrofits, as well as electric vehicle maintenance and charging infrastructure. Projects have launched in 2025 and will run until March 31, 2028.

Budget 2024 announced new SWSP investments to support workers and employers in key areas that align with government priorities, including up to $10 million over two years, to increase training for early childhood educators (ECE). A project is expected to launch in 2025-2026; and

The Program will invest up to $94.5 million over six years (2025-2026 to 2030-2031) for projects that focus on identifying and addressing acute and systemic workforce development needs through the development of LMI, workforce tools and resources that increase employer capacity, and industry engagement activities to address workforce development and employer needs. Projects are expected to begin in Fall 2025 and will be up to 60 months in duration.

KEY FACTS

Tariffs are impacting export-dependent industries and their supply chains, leading to job losses.

To enhance productivity and seize opportunities in critical sectors, Canada must build a stronger, more responsive talent pipeline. Ongoing labour shortages and skills mismatches in key economic sectors are undermining the country’s economic potential.

By August 2025, there were about 3.5 unemployed people for every one job vacancy in Canada. Most provinces and industries saw fewer openings and more people looking for work, suggesting the labour market has continued loosening, due to economic uncertainty and a mismatch between the skills needed by employers and the skills offered by job seekers.

Each sector of our economy is unique and faces challenges that vary based on each sector’s distinct labour market realities. As a result, sectors are grappling with a range of labour market pressures, including:

Demographic shifts – Construction sector’s workforce is older than the national average which means a significant retirement wave. By 2034, almost 269,000 workers, or 21% of the 2024 labour force, are projected to retire.

Geopolitical and trade dynamics –With the introduction of tariffs, manufacturers paused expansions, and 28% of surveyed businesses began implementing hiring freezes.

Green transition and sustainability – Mining sector faces workforce shortages amid rising demand for critical minerals necessary for the low-carbon economy. Barriers to participating in the mining workforce include a general lack of awareness and negative perceptions of mining as surveys show that two-thirds of young Canadians would not consider working in mining.

Significant labour shortages – in the Transportation sector, the projected shortages by 2035 will be anywhere between 70,000 to 130,000; predominantly in aviation, followed by trucking. .