The federal government is creating six sector-specific workforce alliances and a new retention grant program to help Canadian employers and workers navigate labour market pressures stemming from tariffs and skills shortages.
Employment Minister Patty Hajdu announced the initiatives today during a visit to Unifor Local 444 in Windsor, Ont., outlining measures aimed at coordinating skills development investments across priority industries.
The government will establish workforce alliances in advanced manufacturing, housing and construction, transportation and supply chains, energy and electricity, mining and minerals, and the care economy. These sectors account for over one-third of Canada’s GDP and employ approximately eight million people, according to the government.
Alliances to coordinate training investments
The alliances will bring together governments, industry leaders, labour groups and training partners to identify labour market challenges and coordinate public and private investments in skills development.
Prime Minister Mark Carney announced the first alliance in advanced manufacturing earlier this month. The government will finalize leadership and priorities for all six alliances in the coming weeks following consultations with employers, unions, educational institutions, industry associations and Indigenous partners.
“Canada’s workforce is strongest when employers and training partners work together,” said Hajdu. “As external pressures continue to affect key sectors, these investments will help empower Canadian workers with the skills they need to adapt.”
New grant tops up work-sharing income
The government is now accepting applications for the Worker Retention Grant for Work-Sharing Employers, a $102.7-million program over two years designed to help businesses avoid layoffs while supporting employee training.
Employers with active work-sharing agreements can apply for the grant to support upskilling initiatives for employees who share available work and claim Employment Insurance for lost hours. The grant will allow workers to maintain income at up to 70 per cent of their full-time pay while training during reduced work periods.
Job Bank, Canada’s national employment service, has created a dedicated section for work-sharing employers that includes a new training finder and connections to upskilling platforms offering thousands of courses, including low-cost and no-cost options.
Work-sharing applications roughly doubled in 2025 relative to the previous year, with more than 2,000 applications received. Approximately 80 per cent of all applications referred to tariffs, according to the government. Over 1,400 tariff-related applications have been approved, helping to prevent approximately 20,000 layoffs and affecting more than 52,000 workers.
Provincial funding for displaced workers
The federal government will provide employment assistance and reskilling supports for up to 66,000 workers across Canada through labour market agreements with provinces and territories, backed by a $570-million investment. The funding includes supports for displaced auto workers.
The government announced the workforce support measures in September 2025 as a response to economic challenges posed by tariffs affecting Canadian industries. The initiatives were echoed in Budget 2025.
James Stewart, president of Unifor Local 444, said the investments are essential for maintaining a strong auto manufacturing sector. “We are very pleased that our dialogue with government leaders has helped ensure workers’ voices are heard within the broader discussions on tariffs and the economy,” said Stewart.
Sector impact
The priority sectors targeted by the workforce alliances have significant economic weight. Manufacturing accounts for 65 per cent of exports and construction employs over 1.6 million workers. Energy produces $199 billion in annual exports, and mining produces over 60 minerals and metals essential to national defence.
The care economy represents substantial economic value. In 2022, one in two Canadians aged 15 or older reported providing either unpaid or paid care in the past 12 months for care-dependent adults or children. According to the Canadian Centre for Caregiving Excellence, caregivers in Canada spend 5.7 billion hours each year supporting others and contribute the equivalent of 4.2 per cent of GDP or $97.1 billion annually to Canada’s economy.
