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

• Labour shortages and skills mismatches are impacting key sectors of Canada’s economy that are critical to the prosperity of the country.

• That is why our Government is making strategic investments in sectors and high-impact areas such as sustainable jobs, artificial intelligence 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.

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 over 115,000 participants, 40% of whom identified with an equity-seeking group, and engaged over 27,000 employers and stakeholders to develop and implement over 2,500 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 will run from Spring 2025 to March 31, 2028.

Budget 2024 announced new SWSP investments to support workers and employers in key areas that align with government priorities, including:
· $10 million over two years, to increase training for early childhood educators (ECE). A project is expected to launch in 2025-2026; and
· $50 million over four years, starting in 2025-2026, to support workers who may be impacted by Artificial intelligence (AI) by providing new skills training for workers in potentially disrupted sectors and communities.

The Program will invest up to $75.1 million over four years (2025-2026 to 2028-2029) 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 48 months in duration.

IF PRESSED (Sectoral Workforce Solutions Program)

• Recent and upcoming strategic investments in sectors through the SWSP include:
o $75 million for the Sustainable Jobs Training Fund to help workers upgrade or gain new skills for low-carbon economy jobs;
o $75 million to support strategic projects in residential construction and other key economic sectors;
o $50 million to support workers who may be impacted by Artificial Intelligence; and
o $10 million to increase training for early childhood educators.

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

“Canada needs the expertise of skilled workers. The projects announced today represent Canada’s commitment to fostering sustainable economic growth and enhancing the well-being of all workers across Canada. Through the Sustainable Jobs Training Fund, we are helping to create meaningful job opportunities for Canadians and supporting sustainable practices across the country.”

– Former Minister of Employment, Workforce Development and Labour, Steve MacKinnon, News Release, Government of Canada funds innovative projects providing skills training opportunities for more than 10,000 Canadian workers in key sectors of our economy, February 21, 2025.