New funding complements Workforce Alliances initiative as part of broader effort to strengthen national workforce
The federal government has opened applications for a new skilled-labour training fund to help employers address labour shortages.
Organizations can now apply for the Sectoral Workforce Innovation Fund (SWIF) which, Employment and Social Development Canada said, complements the government's newly created Workforce Alliances initiative as part of a broader effort to strengthen the national workforce.
“As labour shortages continue to affect key sectors, this fund will help more Canadians access the skills and opportunities they need to succeed,” said Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario. “A strong workforce is essential to keeping Canadian industries competitive in a changing global economy. By investing in people today, we are turning opportunity into growth, for workers, for industries, and for a Canada that is stronger and more self-reliant.”
Interested applicants can visit Canada.ca for eligibility requirements and application details.
Sectoral Workforce Innovation Fund eligibility
Eligible projects could include faster training approaches, micro-credentials, skills assessments and targeted certification programs, according to ESDC. The fund uses a co-investment model, with employers and other partners contributing funding alongside Ottawa.
ESDC said the co-investment structure is meant to maximize impact and support the long-term sustainability of funded workforce projects. Sectors expected to be prioritized include electric vehicle and battery production, electricity and energy infrastructure, shipbuilding, advanced manufacturing and critical minerals.
Separate ESDC program materials describe individual project funding of up to $10 million, covering as much as 75% of eligible costs, for projects running up to 36 months. Those figures were not part of the ministerial announcement and should be confirmed directly with ESDC.
Labour market context
ESDC cited Statistics Canada figures showing more than one-quarter (26.9%) of Canadian businesses expected recruiting skilled employees to be an obstacle over a three-month period. This figure could not be independently verified against a dated Statistics Canada publication.
The release said 49.5% of construction businesses and 47.4% of manufacturing businesses expected the same recruiting difficulty, figures that align with hiring-difficulty data Statistics Canada has published in past Canadian Survey on Business Conditions releases.
ESDC said those sector-level figures underscore why construction and manufacturing are named among SWIF's priority sectors.
Previously, Restaurants Canada said that the federal immigration policy changes announced in the previous year and earlier this year are expected to intensify chronic labour shortages in Canada’s restaurant sector, with more than half of operators anticipating a negative impact on their businesses.
Another report noted that employers are facing a looming labour squeeze that’s going to be brought on by record-high retirement rates among aging baby boomers and tightening immigration policy that is cutting off the main pipeline of younger workers.
Here's a table of other federal workforce-funding programs delivered by ESDC and related federal partners:
|
Program |
What it funds |
Eligible applicants |
Current status (as of Sept. 2026) |
|
Apprenticeship training, equipment and green-training projects in Red Seal trades (up to $10 million per project; $25 million annually overall) |
Unions and training-trust-fund organizations (Quebec excluded) |
Operates through periodic calls for proposals rather than continuous intake; no open call confirmed at time of writing |
|
|
Foundational and transferable skills training, assessment tools and research (up to $10 million per project) |
Not-for-profits, employer organizations, provinces/territories |
Historical calls have closed on fixed deadlines; check the page for any newly opened stream |
|
|
Wage subsidies (up to 100% of minimum wage for non-profits; 50% for small businesses and public-sector employers) to create youth jobs, ages 15–30 |
Not-for-profits, public-sector employers, private employers with 50 or fewer full-time staff |
2026 intake closed Dec. 11, 2025; next application window typically opens late November or December for the following summer |
|
|
Wage subsidies (roughly 50% of wages, up to $5,000 per placement) for hiring post-secondary students in work-integrated learning roles |
Canadian employers, applying through sector-specific Employer Delivery Partners |
Generally rolling intake through delivery partners; confirmed active as of ESDC's April 2026 announcement |
