The federal government will invest more than $3.5 million in Northern Ontario’s forestry industry as part of a broader $450 million national workforce package announced today in Thunder Bay.
Employment Minister Patty Hajdu said the targeted investments will drive innovation, expand infrastructure and diversify local economies in the region’s forestry sector, according to Employment and Social Development Canada.
The announcement comes as Canada’s unemployment rate stands at 7.1 per cent as of August 2025, indicating significant labour market challenges due to tariff impacts, the department said.
Regional focus on economic resilience
Hajdu, who also serves as minister responsible for the Federal Economic Development Agency for Northern Ontario, said the investments will strengthen the region’s forestry industry and ensure workers and businesses have the tools they need to succeed.
The funding builds on previously announced federal measures to help transform the Canadian steel and softwood lumber industries, according to the government.
“We are proud to play a role in the ongoing development of new products and technologies that promote the growth of the forest sector and the North,” said Scott Jackson, CEO of the Centre for Research & Innovation in the Bio-Economy. “Thanks to support from FedNor and the Government of Canada, CRIBE will continue to help develop a sustainable and innovative forest bio-economy that works for businesses, organizations, and the communities they call home.”
Broader workforce measures announced
The Northern Ontario announcement formed part of a national package that includes $450 million over three years for worker retraining through Labour Market Development Agreements with provinces and territories.
The government will also expand support to small and medium enterprises to $1 billion over three years through the Regional Tariff Response Initiative, offering flexible terms and non-repayable contributions to eligible businesses impacted by tariffs.
Employment insurance measures extended
The federal government is extending temporary employment insurance measures until April 11, 2026, including waiving the one-week EI waiting period to support an additional 700,000 claimants.
The government will invest $1.6 billion over five years to temporarily provide 20 extra weeks of income support, up to a maximum of 65 weeks, to support nearly 190,000 long-tenured workers, according to the department.
Digital platform investment
A $50 million investment over five years will modernize Job Bank and launch a new digital jobs and training platform to connect Canadians to jobs, tools and training resources more quickly, the government said.
The EI Work-Sharing Program flexibilities remain in place until March 2026, with strong employer uptake helping avert over 11,000 layoffs, including in the manufacturing sector, according to the government.
“Canadian workers are the backbone of our economy, driving success in every corner of our country,” said Hajdu. “By investing in skills, training, and resources, we are equipping workers with the tools they need to succeed today, and the confidence to lead tomorrow.”
