The federal government will provide $75 million over three years starting in 2026-27 to expand the Union Training and Innovation Program, supporting apprenticeship training in Red Seal trades.
Budget 2025 announced the funding to Employment and Social Development Canada to develop the trades workforce needed to build major infrastructure and millions of homes across Canada. The initiative aims to create high-paying careers while supporting union labour.
Men account for 89 per cent of apprentices in Red Seal trade programs compared to 11 per cent women, according to government data. The median age for new apprentices in Red Seal training is 25 years old.
Infrastructure demands
The budget states building major infrastructure and housing will create high-paying careers for Canadians. These careers require training for the newest generation of Canadian builders.
The Union Training and Innovation Program supports union-based apprenticeship training in construction and industrial trades. The program funds projects that develop innovative training approaches and expand training capacity.
Budget 2025’s infrastructure investments total $115 billion over five years. Housing investments reach $13 billion over five years through the Build Canada Homes initiative, which aims to double the pace of housing construction over the next decade.
Equity focus
The government will prioritize projects that include equity groups in apprenticeship training. Women, persons with disabilities, people who identify as Indigenous, 2SLGBTQI+ people, racialised people and newcomers are underrepresented in apprenticeship training programs.
These groups face barriers including lack of mentors, inaccessible workplaces and limited outreach targeting their participation. Employment and Social Development Canada will give priority to projects that use innovative approaches to address challenges these groups face in participating and succeeding in Red Seal trades.
Approximately 77 per cent of workers in Red Seal trade occupations were white, according to 2021 Census data cited in the budget.
Youth employment challenges
The expanded training comes as youth unemployment sits at 14.7 per cent in September 2025, up from 12.9 per cent in February. Young people have been disproportionately affected by weaker hiring as businesses pause plans in response to tariffs and trade tensions.
Budget 2025 includes measures to support youth employment through 175,000 placements in 2026-27 via Canada Summer Jobs, the horizontal Youth Employment and Skills Strategy and the Student Work Placement Program.
Related workforce measures
The budget provides $570 million over three years starting in 2025-26 through Labour Market Development Agreements with provinces and territories to support training and employment assistance for workers affected by tariffs.
A new reskilling package will support up to 50,000 workers affected by trade disruptions. Budget 2025 also provides $382.9 million over five years starting in 2026-27, plus $56.1 million ongoing, to launch Workforce Alliances bringing together employers, unions and industry groups.
Construction industry needs
The Build Canada Homes initiative will use Canadian technology, Canadian workers and Canadian lumber to create a new housing construction industry. The budget states every home built is a step toward a more affordable Canada while creating careers in skilled trades.
The government will also improve foreign credential recognition for construction workers. Budget 2025 provides $97 million over five years starting in 2026-27 to establish the Foreign Credential Recognition Action Fund, which will focus on health and construction sectors.
The fund will work with provinces and territories to improve fairness, transparency, timeliness and consistency of credential recognition processes.
