The federal government announced Wednesday it will invest more than $1.5 billion to support youth employment and skills development in 2026-27, with funding expected to help approximately 175,000 young Canadians gain work experience.
The investment, outlined in Budget 2025, includes $635.2 million over three years for the Student Work Placement Program, which will support around 55,000 work-integrated learning opportunities for post-secondary students in 2026-27, according to Employment and Social Development Canada.
Patty Hajdu, minister of jobs and families, announced the funding details during Education Savings Week. She said the programs address immediate needs for young talent in the job market while providing skills and experiences for future careers.
Summer job subsidies and barrier support
The government will allocate $594.7 million over two years for Canada Summer Jobs, which provides wage subsidies to employers to create summer positions for people aged 15 to 30. The program will support around 100,000 summer jobs in 2026.
An additional $307.9 million over two years will go to the Youth Employment and Skills Strategy, which provides employment training and supports such as mentorship, transportation and mental health counselling to approximately 20,000 youth facing employment barriers annually.
The strategy currently supports more than 20,000 youth in 2025-26 with tailored employment supports including work placements and skills development opportunities.
New climate response program
Budget 2025 also includes $40 million over two years to create the Youth Climate Corps, which will provide paid skills training to young Canadians. Participants will be trained to respond to climate emergencies, support recovery efforts and strengthen community resilience across the country.
“Every dollar we invest in youth employment is an investment in innovation and growth,” said Jenna Sudds, parliamentary secretary to the minister of government transformation and member of parliament for Kanata.
Employer applications open
Employers across Canada can apply for Canada Summer Jobs funding through the Grants and Contributions Online Services portal until Dec. 11, 2025. The program provides wage subsidies to not-for-profit organizations, public sector organizations and private sector organizations with 50 or fewer full-time employees.
The Student Work Placement Program has supported more than 300,000 placements for post-secondary students since 2017, helping prepare them for careers with employers in sectors across the economy.
Budget 2025 also includes $75 million to expand the Union Training and Innovation Program, which supports apprenticeship training in the Red Seal trades to help fill jobs created by major infrastructure projects and housing construction.
