Initiatives include upgraded online job tools and training, creation of Workforce Alliances, new Workforce Innovation Fund
Prime Minister Mark Carney has unveiled a series of new federal measures aimed at strengthening Canada’s workforce and supporting strategic industries in the face of ongoing trade pressures and global economic shifts.
AThe government will introduce a new reskilling package to train up to 50,000 workers, with an additional $450 million invested over three years through Labour Market Development Agreements (LMDAs).
“Canada’s new government is investing in our workers so they can drive Canada’s economic transformation with new skills and training, and seize the exciting, high-paying careers it will create,” the Office of the Prime Minister states.
The initiative will target mid-career and long-tenured workers affected by U.S. tariffs, as well as underrepresented groups such as persons with disabilities, women, and Indigenous Peoples.
Previously, Ontario announced it is investing $70 million to expand training and employment services for workers affected by U.S. tariffs and related economic uncertainty.
New federal support measures
To modernise job searches and training, the government is investing $50 million over five years to upgrade online job tools and launch a national online training platform. “This funding will make it easier for users to find jobs by integrating AI on the Job Bank platform... Job seekers will also benefit from a new Worker Dashboard and improved feedback mechanisms to help identify skills gaps and training needs,” the government said.
The government will also invest $382 million over five years to create new Workforce Alliances, bringing together employers, unions, and industry groups to address labour market challenges and coordinate investments in skills development. A new Workforce Innovation Fund will support projects tailored to local job markets, helping businesses recruit and retain the workers they need.
For long-tenured workers, the government will provide 20 extra weeks of Employment Insurance (EI) benefits, up to a maximum of 65 weeks, starting October 12, 2025. “It is expected to support about 190,000 long-tenured workers,” the press release said. Temporary EI measures, including the suspension of rules on separation payments and waiving the one-week waiting period, will be extended to April 2026 to provide income stability for vulnerable workers.
To help businesses adapt to trade disruptions, the government is launching a $5-billion Strategic Response Fund. The fund will prioritise projects in highly trade-exposed sectors and support companies as they pivot to new markets or enhance competitiveness. “The Strategic Response Fund will seek to maintain industrial capacity by offsetting new market access costs, supporting retooling, and facilitating plans by Canada-based firms to expand or secure new markets,” the government stated.
A new Buy Canadian Policy will require federal procurement to prioritise Canadian suppliers and materials. “By November 2025, the Government will introduce new measures to make sure that Canadian suppliers, and their products are prioritised in all federal spending,” the press release confirmed. The policy will initially cover Canadian steel and softwood lumber, with plans to expand to additional materials and funding streams.
Additional measures include:
- increasing the maximum loan size for small and medium-sized businesses through the Business Development Bank of Canada
- targeted incentives for biofuel producers and canola farmers
- a significant expansion of the Regional Tariff Response Initiative to $1 billion over three years.
- a review of the Electric Vehicle Availability Standard to support the automotive sector during the transition to zero-emission vehicles.
“These changes are part of the government of Canada’s broader strategy to support key sectors impacted by global trade dynamics, while ensuring a clean and competitive economy for the future,” the Office of the Prime Minister stated.
'Big show about nothing'?
Despite the announcement, Conservative Leader Pierre Poilievre criticised the new initiatives, claiming they are “a big show about nothing,” according to a CBC report.
“With Mark Carney, it’s been all show business and no real business. He’s gotten absolutely nothing done this summer other than shuffle a lot of papers and hold a lot of meetings while Canadians lose their jobs, can’t afford food and are unable to buy homes,” Poilievre said in Ottawa on Friday, according to the report.
The Conservative leader claims Carney has failed in his efforts to negotiate with the Trump administration.
“We’re in a worse position now than we were when he took office,” he says.
In June, Carney and United States President Donald Trump started working on a deal that would put an end to the ongoing trade war between the two nations. The start of the conversation followed a meeting between the two leaders at the 2025 G7 Leaders’ Summit in Kananaskis, Alberta.
