Question Period Note: APPRENTICESHIP AND THE SKILLED TRADES

What is the Government of Canada doing to support apprenticeship and the skilled trades?

• Canada’s prosperity depends on Canadians having the skills, training and experience they need to get good quality jobs and succeed in a changing economy.
• That’s why the Government of Canada is investing nearly $1 billion annually in apprenticeship supports. We do this– through the Red Seal Program, loans, tax credits, Employment Insurance benefits and through project funding to unions and other stakeholders.
• The Canadian Apprenticeship Strategy supports a trades workforce that is skilled, inclusive, certified and productive; ready to seize new opportunities in the green economy.
• We recently launched a new Union Training and Innovation Program Sustainable Jobs Stream to support the development of green skills training for up to 20,000 skilled trades workers.
• These investments aim to ensure that Canada has the skilled workforce required to drive economic growth and productivity.

• Implemented in 2022, the Canadian Apprenticeship Strategy aims to support a trades workforce that is skilled, inclusive, certified and productive. It provides funding to help pre-apprentices, apprentices, employers, unions, and other organizations and tradespeople participate in apprenticeships and succeed in skilled trades careers.

• Budget 2024 announced $100 million to bolster the labour force in support of housing for the following initiatives under the Canadian Apprenticeship Strategy:
o $90 million for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices. Of this amount, $10 million in 2025-2026 would be sourced from existing departmental resources.
o $10 million over two years, starting in 2024-2025, for the Skilled Trades Awareness and Readiness Program to encourage Canadians to explore and prepare for careers in the skilled trades. This funding would be sourced from existing departmental resources.

• The 2022 Fall Economic Statement proposed to provide $250 million over five years starting in 2023-2024 to Employment and Social Development Canada to help ensure Canadian workers can thrive in a changing global economy. One of the measures includes a new sustainable jobs stream under the Canadian Apprenticeship Strategy’s Union Training and Innovation Program. Funded projects through this stream will support unions in leading the development of green skills training for workers in the trades. It is expected that 20,000 apprentices and journeypersons would benefit from this investment.

• Budget 2022 announced $84.2 million over four years to double funding for the Union Training and Innovation Program. Each year, the new funding will help 3,500 apprentices from equity-deserving groups begin and succeed in skilled trades careers through mentorship, career services, and job-matching.

• Apprenticeship supports includes grants, loans, tax credits, Employment Insurance benefits during in-school training, project funding, and support for the Red Seal Program.

If pressed on labour shortages in the skilled trades that support housing

• Our Government understands the important role trades workers play in building our homes, powering our cities and maintaining our infrastructure.
• For example, we are taking decisive action and investing in Canada’s skilled trades workforce in support of housing.
• Budget 2024 committed to invest $100 million for initiatives under the Canadian Apprenticeship Strategy. This includes the Apprenticeship Service, which creates work placements with small and medium-sized enterprises for apprentices and the Skilled Trades Awareness and Readiness program, which encourages Canadians to explore and prepare for these careers.
• The Apprenticeship Service was initially announced in Budget 2021, which committed $470 million over three years. Since its launch in 2022, the Apprenticeship Service provided funding to 11,459 employers to create 17,208 work placements.
If pressed on the sunsetting of the Apprenticeship Grants
• To focus investments in high-demand, high-impact initiatives, the Apprenticeship Grants will sunset on March 31, 2025. This will enable reallocation of funds to bolster projects led by stakeholders and provide supports for apprentices to encourage progression and certification in skilled trades, and project funding to help employers, unions and other organizations participate in apprenticeship.
• Sunsetting the Apprenticeship Grants will help to maximize the impact of funding for programs under the Canadian Apprenticeship Strategy to help create a more diverse and certified skilled trades workforce.
• The last day to apply for the Apprenticeship Grants is March 31, 2025.
• Apprentices will continue to be supported through: the interest-free Canada Apprentice Loan, Employment Insurance income support during technical training, the Tradesperson’s Tools deduction, the Apprentice Mechanic Tools deduction, the Tuition Tax Credit, the Canada Training Credit, and the Labour Mobility deduction. Apprentices may also be eligible to receive additional measures offered by their province or territory.
• The Government of Canada will continue to support apprentices financially as they are unemployed and progress through their technical training. Apprentices can access Employment Insurance benefits and up to $20,000 in interest-free Canada Apprentice Loans. Apprentices can apply for a CAL as early as three months before the start of their technical training and can receive funding as early as day one of their training while they wait for their EI claim to be processed for payment.

“Canada’s workforce needs more skilled trade workers. Demographic shifts and high retirement rates are fueling demand and an ever-growing need to recruit and train thousands more Canadians in the skilled trades. That’s why the Government of Canada is investing nearly $1 billion in apprenticeship supports through grants, loans, tax credits, Employment Insurance benefits during in-school training, project funding, and support for the Red Seal program.”

Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages