Prime Minister Mark Carney unveiled plans for what he calls “the biggest transformation of our economy since the end of the Second World War,” with specific measures targeting employers, workforce development and housing during his first official address following Monday’s election.
In a press conference Friday, Carney committed to removing federal barriers to internal trade by July 1 “to help unleash the full potential of Canada.” The prime minister outlined a strategy to identify projects “in the national interest” that will “connect Canada, deepen our ties with the world, and grow our economy for generations,” adding that his government will serve as “a catalyst for these projects, not an impediment.”
Addressing economic relief, Carney announced a middle-class tax cut that will take effect by Canada Day, saving two-income families up to $825 annually. His government will also protect existing programs including PharmaCare and $10-a-day daycare, and expand the Canadian dental care plan to 8 million Canadians, saving families over $800 per dental visit.
Housing and workforce initiatives
The prime minister promised to “address failures in the housing market head on” by cutting development charges in half for all multi-unit housing, which he said would reduce the cost of a two-bedroom apartment in Toronto by approximately $40,000.
Carney also announced plans to establish a new modular and prefabricated housing industry using “Canadian technology, Canadian skilled workers and Canadian lumber” to build homes “faster at lower costs, with a smaller environmental footprint.”
To finance these initiatives, the government will create a new entity called “Build Canada Homes” with $25 billion in financing for private developers.
Immigration and fiscal discipline
In a move that could impact workforce planning, Carney announced his government will cap temporary workers and international students at less than 5% of Canada’s population by the end of 2027, down from a recent high of 7.3%. The prime minister said this reduction would “ease strains on housing, on public infrastructure and social services” while still working “to attract the best talent in the world to build our economy.”
Addressing fiscal concerns, Carney noted that government operating budgets have been growing at an “unsustainable” 9% annually. His government plans to reduce this to 2% over the next three years through “cutting waste, capping the public service, ending duplicative programs, and deploying technology to boost public sector productivity.”
U.S. trade relations
Carney revealed he had a “very constructive call” with U.S. President Donald Trump on Tuesday and the two leaders agreed to meet next Tuesday in Washington. The focus will be on “both immediate trade pressures and the broader future economic and security relationship between our two sovereign nations.”
Addressing concerns about the GM plant closure in Oshawa affecting 2,000 workers, Carney expressed “deepest sympathy for them and their families” and committed that “all the dollars from our tariffs” would support affected workers. He pledged to fight for the auto sector and other industries while “making sure that companies act in true partnership as well in maintaining employment and investment in Canada.”
The prime minister warned that companies not maintaining their commitments to Canadian workers would face “consequences.”
