Ontario Construction Report staff writer
The federal government is proposing a $6-billion, five-year initiative to address Canada’s skilled trades shortage and reduce youth unemployment by recruiting, training and hiring up to 100,000 new workers under a new program branded Team Canada Strong.
The plan, outlined in the federal spring economic update last week, would streamline training, increase financial supports for apprentices and speed up certification timelines under the Red Seal program.
“Too few young Canadians are entering the trades, missing out on well-paid jobs and long-term financial security,” the government said in the economic statement, concluding Canada needs “a new approach.”
With a goal of cutting time required to reach Red Seal certification by half through measures including digital credentialing, online exams and modernized apprenticeship tracking systems.
Canadians aged 15 to 30 would be eligible for paid, entry-level trades-related work experience leading directly into apprenticeships.
About one-third of the $6-billion would be used to recruit young workers over five years, and $262 million annually.
The federal government said it is also proposing a Build Canada Apprenticeship Service, which would offer employers wage subsidies of up to $10,000 per first-year apprentice to help increase hiring and retention.
Key measures include:
- A $400 weekly top-up for apprentices during mandatory technical training, up to $16,000 per apprentice, in addition to employment insurance
- A $5,000 one-time bonus for apprentices who obtain Red Seal certification
- Income supports for apprentices transitioning between training periods and employment
The federal government estimates Canada will need 1.4 million additional skilled trades workers by 2033. Without policy changes, it warned the country could face a shortfall of more than 20,000 trades workers annually.
The plan also includes new pathways into the trades through the Canadian Armed Forces. The government is proposing $250 million over five years, followed by $45 million annually, to expand trades training capacity within the military.
“Participants will commit to a period of Reserve service in exchange for subsidized education,” the update said, adding that the program is designed to build “stronger pipelines into the skilled trades.”
Details on implementation and provincial coordination will be released in the coming months.