‘We are equipping workers with the tools needed to succeed’
The federal government has announced $2 billion in new funding for provinces and territories to expand skilled trades training, a commitment HR professionals should watch closely given projections of a shortfall of more than 1.4 million trades workers by 2033, according to Employment and Social Development Canada (ESDC).
ESDC said the funding will be delivered over five years through new bilateral agreements with provinces and territories. The announcement was made in Halifax, Nova Scotia, following a meeting of the Forum of Labour Market Ministers.
The money falls under Team Canada Strong, a national initiative to recruit, train and certify between 80,000 and 100,000 new Red Seal trades workers over five years. The initiative previously received $6 billion in funding, and ESDC said this new investment is meant to increase provincial and territorial capacity to train and certify workers.
ESDC said discussions with provinces and territories will begin soon, with agreements and funding expected to be finalized in the 2026–27 fiscal year, subject to negotiation.
“As the world of work evolves, nobody will be left behind,” said Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario.
“By collaborating with provinces and territories to remove barriers to skilled trades, we are equipping workers with the tools needed to succeed. Access to rewarding, well-paying jobs will build a strong, confident workforce where workers can navigate global uncertainty and build lasting economic strength.”
Earlier this year, the federal and Quebec governments announced they are investing $24.7 million over five years to support skills training for apprentices in 18 Red Seal trades deemed essential to reducing Canada’s carbon emissions.
Where is the funding directed?
ESDC said the funding is intended to expand access to pre-apprenticeship and technical training, address systemic barriers slowing certification, and help eliminate waitlists for apprenticeship and Red Seal programs.
The department said it should also improve access to training in in-demand trades and support higher completion rates.
ESDC described its approach as "dual-delivery," combining provincial and territorial programming with federal measures. The department said the model is meant to ensure national consistency, faster implementation in priority areas, and better responsiveness to gaps provincial and territorial systems cannot address alone.
Scale of labour shortage
ESDC's release cites projections showing Canada will need more than 1.4 million new trades workers by 2033 to build homes, expand transit and develop energy infrastructure. That figure represents the scale of the recruitment challenge facing employers across trades-dependent sectors in the years ahead.
Beyond the new $2-billion commitment, ESDC noted it already provides close to $1 billion annually in apprenticeship supports, including loans, project funding, tax credits, deductions and Employment Insurance benefits.
Employers and workers and workers can visit Canada.ca/skilled-trades for further information on training pathways and available financial supports.
Economists and consultants previously told Canadian HR Reporter that skills gaps are often misdiagnosed, leaving Canadian employers focused on vacancies instead of capability.
