Projects will target sectors that account for 66.2 per cent of Canada’s total gross domestic product, employ about 9.9 million workers
The Government of Canada is investing up to $94.5 million over five years to improve labour market intelligence across major economic sectors, in a move aimed at helping employers and workers better respond to skills shortages and shifting market conditions.
The funding – delivered through the Sectoral Workforce Solutions Program (SWSP) – will “produce consistent, foundational labour market information (LMI) across key sectors, providing the information needed to help better coordinate the supply and demand of skilled labour while supporting a stronger economy,” according to Employment and Social Development Canada.
For HR professionals, this is intended to support more evidence-based workforce planning, recruitment and training decisions in an increasingly volatile environment.
This is important as unemployment numbers have remained high yet employers continue to cite talent shortages as a top concern, according to a previous report.
Sector-specific tools
Under the Ottawa program, 14 organisations will receive support to develop informational products and employer toolkits designed to help workers and businesses adapt to current labour market challenges.
Employment and Social Development Canada said tools such as forecast reports and dashboards on job vacancies by key occupations and sector-specific growth opportunities will “offer job seekers, workers, employers, and training providers a clear understanding of shared challenges, as well as a detailed view of the unique needs within each sector.”
This is expected to give HR leaders more granular data for anticipating skills gaps, refining talent acquisition strategies and aligning learning and development initiatives with future needs.
The funded projects will target organisations in:
- construction
- trucking
- advanced manufacturing
- aerospace
- tourism
- forestry
- agriculture
- mining
- energy
- information and communications technology
- the environment and the bio-economy
These sectors account for 66.2 per cent of Canada’s total gross domestic product and employ about 9.9 million workers, or 47 per cent of the country’s total labour force, according to ESDC.
ESDC says that “by investing in timely foundational labour market information across key economic sectors, the Government of Canada is not only responding to immediate challenges faced by workers and families but is also taking a long-term approach to building a stronger workforce, with opportunities for all Canadians.”
Meanwhile, Rob Henderson, President and CEO of BioTalent Canada, welcomed the development, calling labour market intelligence “a key element of any economic development strategy.”
He says it “forms the foundation of workforce and skills developments and provides young people, employers and job seekers with the information to pursue meaningful careers and prosperity for all Canadians,” adding: “We applaud the government's announcement to invest in this important cornerstone of its domestic economic strategy.”
Artificial intelligence (AI) is already making changes to employers’ hiring plans, and one report suggests that may be posing a risk to the future of organisations. Currently, 1 in 5 companies has already stopped hiring entry-level workers because of AI, and nearly half expect to halt entry-level recruitment entirely within the next two years, Resume.org reports.
Tariffs and industry disruption
Ottawa’s announcement forms part of a broader federal response to trade tensions, tariffs and structural change in key industries.
The Prime Minister recently unveiled “a series of new strategic measures to protect workers and businesses in those sectors most impacted by U.S. tariffs and trade disruptions,” including support to transform the steel and softwood lumber industries, a new reskilling package for up to 50,000 workers, and the establishment of the Workforce Alliances and Sectoral Workforce Innovation Fund.
Minister Hajdu framed the initiative as both an economic and workforce measure.
“Building a strong economy means understanding existing gaps and barriers and helping our workforce access meaningful opportunities,” she says. “Canadian workers are the backbone of our economy, driving success in every corner of our country. By investing in key sectors and resources, we are equipping industries and workers with the tools they need to succeed today, and the confidence to lead tomorrow.”
Canada’s job market still has “significant slack,” according to a previous report. Meanwhile, 1 in 5 businesses claimed that they won’t last if the tariff issue does not change, according to a previous report.
