Appearance by the Minister of Job and Families: HUMA Mandate and Priorities - November 25, 2025

Official title: Appearance by: Minister of Job and Families, Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) Mandate and Priorities, date: November 25, 2025, 11:00 a.m. - 1:00 p.m.

On this page

1. Opening Remarks
2. Parliamentary Environment
   1. Scenario Note
   2. Member Biographies
3. Employment and workforce development
   1. Employment Insurance (EI) Modernization
   2. EI and Workers in Seasonal Industries
   3. Temporary Foreign Worker Program
      1. Overview
      2. Program Data
      3. Program Usage
      4. Labour Market Assessment Impact (LMIA) Fraud
      5. Misclassification
      6. Proposed New Agriculture and Fish Processing Stream
   4. Impact of Artificial Intelligence (AI) on Employment Rates
   5. Labour Force Mobility of Skilled Trades
   6. Canadian Apprenticeship Strategy
   7. Skills Retraining in Sectors Impacted by Tariffs
   8. Foreign Credentials Recognition
   9. Workforce Alliances and the Workforce Innovation Fund
   10. Student Loan Forgiveness
   11. Recent Enhancements to Student Financial Assistance
   12. Budget 2025 and Private Educational Institutions
   13. Student Work Placement Program
   14. Youth Employment and Skills Strategy
4. Families, children and youth
   1. Youth Employment Situation and Key Drivers
   2. Child Poverty
   3. Food Banks and Poverty Report
   4. Poverty and Food Security - Keys Facts and Figures
   5. National School Food Program
   6. Supporting Quality of Life Placemat
   7. Canada Summer Jobs (CSJ)
   8. Office of the Auditor General (OAG) Report on Canada Summer Jobs
   9. Early Learning and Child Care - including OAG Report (Fall 2025)
   10. Employment and Social Development of Canada (ESDC) Supports to Official Language Minority Communities (OLMC)
5. Labour
   1. Labour disputes - Canada Post
   2. Labour disputes - Section 107
   3. Labour disputes - West Coast Ports Industrial Inquiry Commission
   4. Driver Inc (Misclassification)
   5. Probe on flight attendants' pay (definition of work)
   6. Forced Labour
   7. Canada-United States-Mexico Agreement (CUSMA)
   8. Paid Medical Leave
6. Seniors
   1. Seniors Poverty
   2. Old Age Security (OAS)
   3. Old Age Security (Former Bill C-319)
   4. Combatting Fraud for Seniors
7. Disability & Accessibility
   1. Way Forward on Barrier-free Canada by 2040
   2. Employment Strategy for Canadians with Disabilities
   3. Canada Disability Benefit
   4. Document Redacted
8. Service Delivery
   1. Benefits Delivery
      1. EI on Benefits Delivery Modernization (BDM)
      2. OAS on BDM
   2. EI Board of Appeal
   3. Dental Care
   4. Passports and Workforce Alignment
9. Corporate Issues
   1. Full Time Equivalents (FTEs)
   2. Contracts / Consultants
   3. 2025-26 Main Estimates - Placemat
   4. Use of AI at ESDC
   5. Comprehensive Expenditure Review
   6. Budget Decisions
10. Ministerial Mandate: Mandate and priorities

A. Opening remarks

Speaking Notes for the Honourable Patty Hajdu, Minister of Jobs and Families and Minister Responsible for the Federal Economic Development Agency for Northern Ontario for Appearance Before the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - Theme: Child Care, Diversity, Temporary Foreign Worker Program and Unemployment - House of Commons - November 25, 2025

Check against delivery.

(2025 PA 0000041)

Thank you, Mr. Chair.

I am pleased to be here with my departmental officials, to highlight the critical work ESDC is doing to strengthen Canada's economic and social security.

I am honoured to advance Canada strong through economic resilience and greater affordability for Canadians.

Workforce Supports

Workers across Canada remain our priority, particularly in trade-exposed sectors.

In response to tariffs, ESDC ensures workers have timely access to benefits by introducing flexibilities to the Employment Insurance Work-Sharing Program, helping businesses retain skilled workers and preventing nearly 12,600 layoffs.^{Footnote i}

We're also investing $1.6 billion to provide up to 20 extra weeks^{Footnote ii} of EI benefits for about 190,000 long-tenured workers-giving them more time to find comparable jobs.

Continuing to pave the way for employment success, Budget 2025 commits $1.54 billion to help 170,000 young Canadians-including youth with disabilities-secure a solid footing in the job market through Canada Summer Jobs^{Footnote iii}, the Youth Employment and Skills Strategy^{Footnote iv}, and the Student Work Placement Program.^{Footnote v}

We're also encouraging skilled trades with $75 million over three years to expand the Union Training and Innovation Program.^{Footnote vi}

To further support Canadians in securing employment, the Department is investing $50 million to modernize Job Bank.^{Footnote vii}

Building on these efforts to support Canadian workers, let me turn the changes we have made to the Temporary Foreign Workers Program.

Temporary Foreign Worker Program

Steps have been taken to bring immigration back to sustainable levels.

Since late 2023^{Footnote viii}, ESDC has introduced a suite of measures to reinforce the Temporary Foreign Worker Program's integrity and core intent-ensuring Canadian talent is always prioritized-resulting in a 50% overall decrease in applications.^{Footnote ix}

In part due to these efforts, Canada remains on track to sustainably manage temporary resident levels as outlined in the 2025-2027 Immigration Levels Plan.

The program is designed to support Canadian businesses fill short-term critical labour market shortages^{Footnote x}. It's intended as a last resort, only when qualified Canadians and permanent residents are unavailable.

Section 107

Free and fair collective bargaining is essential for stable labour relations.

Intervening under section 107 is not ideal. But as seen this year^{Footnote xi}, the Government has no choice but to act to keep our economy moving.

Child care and School Food

Keeping our economy moving means providing critical support to families.

Budget 2025 invests in children's futures so they, too, can contribute to building Canada strong.

Approximately 900,000 children^{Footnote xii} now benefit from affordable, high-quality early learning and child care, saving these families thousands of dollars.^{Footnote xiii}

This year, the Government of Canada reached agreements^{Footnote xiv} with 10 provinces and territories to extend their existing ELCC programs until March 2031.

Additionally, Budget 2025 proposed ongoing funding of $216.6 million per year, starting in 2029-30, to make the National School Food Program permanent.

Disability Inclusion

A cornerstone of our approach is that no one is left behind. Canada strong is for all Canadians.

Since its launch this year, the Canada Disability Benefit (CDB) has improved the financial well-being of hundreds of thousands of working-age, low-income persons with disabilities.

Budget 2025 allocates $115.7 million over four years^{Footnote xv} for a one-time $150 payment to help CDB recipients cover Disability Tax Credit application costs-reaffirming our intention to making benefits easier to access.

Following successful completion of the regulatory process, the first supplemental payments are expected to be made to CDB recipients before the end of 2026-27.

Diversity

And we support all Canadians, in all their diversity. Diversity is Canada's strength, and drives innovation and resilience across Canada.

As an example, in recognition of the first United Nations International Decade for People of African Descent, we've invested more than $200 million through the Supporting Black Canadian Communities Initiative-helping thousands of Black-led organizations advance Canada's economic and social progress.

I am proud to note that we co-sponsored the second Decade, which spans until December 2034.

Closing

Mr. Chair, ESDC focuses on shaping a future worthy of our children and grandchildren.

I now look forward to your questions.

Thank you. Merci.

- 30 -

B. Parliamentary environment

1. Scenario Note

The Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), Minister of Jobs and Families on Mandate/Key Priorities, the Youth Employment in Canada study and the Canada Labour Code study, November 25, 2025 - 11:00

Overview

• On June 18, 2025, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) passed a motion to invite "the Minister of Jobs and Families, the Minister of Housing and Infrastructure, the Secretary of State for Seniors, the Secretary of State for Labour, and the Secretary of State for Children and Youth to appear separately before the committee, each accompanied by their officials, for a minimum of one hour, to discuss their respective mandates and key priorities in their service to Canadians".
• Additionally, HUMA adopted a separate motion on September 18, 2025, to "prioritize an urgent study on employment in Canada, especially since youth employment has reached its lowest level in 25 years and young people continue to face barriers in accessing employment insurance, which increases their vulnerability. This motion included an invitation to, the Minister of Jobs and Families and the Secretary of State (Children and Youth) to appear separately for two hours each, alongside their officials.
• HUMA also convened to undertake a study on "the impact of the lack of a definition of the term 'work' in Part III of the Canada Labour Code and into the Government's routine use of section 107 of the Canada Labour Code to refer labour disputes to the Canada Industrial Relations Board (CIRB) for binding arbitration", including an invitation to the Minister of Jobs and Families, the Secretary of State (Labour) and the Chair of the CIRB.
• The Secretary of State (Seniors) appeared on October 28. On November 18, the Chair of CIRB appeared on the first panel followed by the Secretary of State (Children and Youth) on the second panel. The Secretary of State (Labour) appeared on November 20.
• On November 20^th, HUMA adopted a motion to "invite the Minister of Housing and Infrastructure and the Minister of Jobs and Families, for no less than one hour each, separately, to testify in relation to the Supplementary Estimates (B) 2025-2026 before the December adjournment.

Committee Proceedings

• During this appearance, five minutes will be provided to deliver opening remarks Following that, questioning will begin.
• The first round of questions will give six minutes each to the CPC, LPC and BQ, in that order.
• The second (and subsequent rounds) of questions allocate five minutes to the CPC and LPC, two and a half minutes to the BQ, and then five minutes to the CPC and the LPC.
• Senior officials in attendance will be:
  • Paul Thompson, Deputy Minister of Employment and Social Development
  • Sandra Hassan, Deputy Minister of Labour and Associate Deputy Minister of Employment and Social Development

Parliamentary environment

• Prior to the prorogation and dissolution of the 44^th Parliament, opposition parties used their combined majority to discuss more contentious issues. The tone of Committee meetings was subsequently more combative. Housing has been a key topic of interest for HUMA, having occupied 16% of the Committee's time during that previous Parliament, while accessibility and labour, together accounted for 22% of the Committee's time, and nearly 30% on Mandate and Estimates ministerial appearances.
• So far in the 45^th Parliament, youth unemployment and labour-related issues have been the focus of the committee's attention.
• For your awareness, other topics of interest include:
  • HUMA is currently concluding its youth employment study and held the first meeting of the current study on the Canada Labour Code, on November 18
  • HUMA should begin its study on Impacts of Temporary Foreign Worker Program on the Labour Market at the end of November
  • Standing Committee on Transport, Infrastructure and Communities (TRAN) study of the Changing Landscape of Truck Drivers in Canada study
  • the Standing Senate Committee on Transport and Communications (TRCM) has undertaken a study on the "Maintenance of transport services in the case of labour disruptions", including the use of Section 107 of the Canada Labour Code
  • the Standing Senate Committee on Social Affairs, Science and Technology (SOCI) has begun the examination of Bill S-212, An Act respecting a national strategy for children and youth in Canada

Conservative Party of Canada

• HUMA member and Employment critic Garnett Genuis has been very militant during the study on youth employment, criticizing the government on tax policy, skills training, and misalignment in immigration priorities.
• In the House of Commons, CPC MPs, including HUMA members, have criticized the Temporary Foreign Worker program, with the Leader of the Opposition calling to end the program.
• On October 15, Mr. Genuis released their Jobs Youth Plan, calling on the government to "unleash the economy", "fix immigration", "fix training", and "build homes where jobs are".
• On November 3, Mr. Genuis moved concurrence of the first HUMA report which stated that it "is alarmed over the 25-year low youth employment data."
• During the 44^th Parliament, Lianne Rood introduced Bill C-409, An Act to amend the Canada Labour Code (hours of work of flight attendants), on June 9, 2024. This topic was raised during the Secretary of State (Labour)'s appearance on November 20.
• During that same appearance, he was also repeatedly asked by CPC members whether the frequent use of section 107 was having a corrosive effect on labour relations in Canada.

Bloc Québécois

• The BQ has often called for an EI reform and HUMA vice-chair and Employment critic Marilène Gill has highlighted this in the current Parliament. Further, in the House of Commons, BQ MPs have called for greater support for seasonal workers and workers impacted by tariffs.
• During the youth employment study, the BQ have discussed some of these issues with stakeholders, as well as the seasonal nature of youth employment the impact of temporary foreign workers.
• The BQ have long advocated for an OAS increase to match those aged 75 and older. BQ leader Yves-François Blanchet listed this as the first reason to oppose Budget 2025, as it was part of a number of demands for their support. During her appearance, the Secretary of State (Seniors) was pressed on this matter.
• The BQ have long supported the right to strike and have voted against back-to-work legislation. During the appearance of CIRB Chairperson, the BQ member focussed on the frequency of references to Section 107, as well as the transparency and objectivity of data related to these references. The member questioned the possible reasons for the increased use of 107.

2. Members biographies

House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) - Membership

Robert J. Morrissey - Chair

Liberal, Egmont, Prince Edward Island

Caroline Desrochers

Liberal, Trois-Rivières, Quebec

Jessica Fancy

Liberal, South Shore-St. Margarets, Nova Scotia

Natilien Joseph

Liberal, Longueuil-Saint-Hubert, Quebec

Annie Koutrakis

Liberal, Vimy, Quebec

Rosemarie Falk - Vice Chair

Conservative, Battlefords-Lloydminster-Meadow Lake, Saskatchewan

Garnett Genuis

Conservative, Sherwood Park-Fort Saskatchewan, Alberta

Laila Goodridge

Conservative, Fort McMurray-Cold Lake, Alberta

Colin Reynolds

Conservative, Elmwood-Transcona, Manitoba

Marilène Gill - Vice Chair

Bloc Québécois, Côte-Nord-Kawawachikamach-Nitassinan, Quebec

C. Employment and workforce development

1. Employment Insurance Modernization

Issue

Why have you not announced a plan for modernizing the Employment Insurance (EI) program?

Background

• Current changes in the labour market, including adjusting to AI and automation in the workplace and the effects of climate change and natural disasters reinforce the need for an enhanced EI system that helps Canadians in preparing for jobs of the future and a strong economy.
• The Government's 2025 platform commits to strengthen Canada's social safety net and ensure no one is left behind. Specifically, it commits to "as a priority over the coming year … work[ing] on enhancing the EI system to better reflect the modern workforce with flexible and reliable support."
• The Government of Canada has taken action to improve access and adequacy of EI income supports in response to foreign tariffs, with temporary measures introduced in March 2025 and additional supports introduced in September 2025 as part of a broader workforce support plan. The measures include:
  • flexibilities to increase the access and duration of supports under the EI Work-Sharing program (available until March 2026)
  • waiving the one-week waiting period (ending April 11, 2026)
  • suspending some EI rules so workers don't have to exhaust severance pay before collecting benefits (ending April 11, 2026)
  • making it easier to access benefits by adjusting regional unemployment rates so no worker needs more than 630 hours to qualify (ending October 11, 2025), and
  • 20 additional weeks of income support for long-tenured workers (up to a maximum of 65 weeks) starting October 12th (applying retrospectively to claims starting on or after June 15, 2025) and ending on April 11, 2026
• In addition, Budget 2025 proposes to amend the Employment Insurance Act to allow claimants receiving EI parental benefits to access up to eight additional weeks of parental benefits in the event of the death of the child.

Key Facts

• Under Employment Insurance, the proportion of unemployed workers who pay premiums and meet eligibility requirements for income supports has increased from 39% in 2019 to close to half of the total unemployed population (49.6%) in 2023 to 2024.
• On September 12, 2025, the Canada Employment Insurance Commission set the EI premium rate for 2026 at $1.63 per $100 of insurable earnings, representing a one-cent decrease over the 2025 rate. The new rate will take effect on January 1, 2026.
• There are two Private Member Bills in the House currently proposing EI amendments.
  • First, PMB C-222, introduced on September 18, 2025, by the Honourable Terry Beech, seeks to:
    • amend the EI Act to allow parental benefit claimants to continue to receive all weeks of these benefits following the death of their child
    • amend the Code to provide that employees in federally-regulated sectors who are on maternity or parental leave remain entitled to these job-protected leaves following the death of their child, and
    • move forward provisions so that parental benefit claimants would not have to make a new claim for benefits, or prove their eligibility to receive or continue to receive these benefits
  • Second, PMB C-249 introduced on October 21, 2025 by MP Boulerice (NDP), seeks to:
    1. amend the EI Act to prevent the existing rules on combining regular and special benefits (52 weeks benefit period duration and maximum of 50 weeks paid) from applying to the specific situation of when regular benefits are combined with maternity and/or parental benefits, and
    2. Increase the number of weeks for EI family caregiver benefit for adults from 15 to 26 weeks, similar to EI sickness benefit duration

Key Messages

• Millions of Canadians rely on Employment Insurance every year when they find themselves out of work, start a family, take time to care for a loved one, or need to get better themselves.
• However, the labour market is changing and is facing challenges. In these times of major labour market transformations, EI remains critical for supporting workers and help stabilize their income during job transitions and economic disruptions.
• To this end, our Government has taken decisive action to ensure it is responsive in these challenging times by introducing a suite of temporary EI measures and Work-Sharing flexibilities.
• More workers have been covered by EI in recent years than in the past, with coverage rates increasing by 10 percentage points in the last five years. Still, ensuring that more workers have access to EI remains a priority. We are exploring ways to continue to improve the program, especially for younger workers, who have been among the hardest hit in this difficult job market.

If pressed on changes to the EI program

• In addition to tariff actions, the Government of Canada has taken other important steps to modernize the EI program, including:
  • extending EI sickness benefits from 15 to 26 weeks in 2022
  • announcing a new sharable benefit for adoptive parents, passed in Parliament in June 2024 (being implemented), and
  • extending supports for seasonal workers in 13 targeted EI regions until October 2026.
• In Budget 2025, the government proposes to amend the Employment Insurance Act to allow claimants receiving Employment Insurance parental benefits to access an additional eight weeks of parental benefits in the event of the death of the child.

If pressed on when the new EI adoption benefit be available

• In June 2024, Parliament passed legislation introducing a new, 15-week EI adoption benefit for people becoming parents through adoption or surrogacy, and corresponding job-protected leave under the Canada Labour Code for employees in federally regulated workplaces. The legislation states both will come into force on a day fixed by Order in Council.
• As is the case for any EI changes, implementation must be sequenced and take into account other EI priorities. In addition to the decisive actions taken to support workers affected by tariffs through the EI program, ESDC has been begun to implement the EI adoption benefit, including seeking implementation authorities and moving forward with required changes to regulations and internal IM/IT systems.

2. EI Supports for Seasonal Workers

Issue

Many workers in seasonal industries rely on Employment Insurance benefits to avoid experiencing income gaps ("trou noir") between their seasonal jobs.

Background

• In 2018, a pilot project was introduced to provide up to five additional weeks of Employment Insurance regular benefits (up to a maximum of 45 weeks of entitlement) to eligible seasonal claimants in 13 targeted Employment Insurance regions.
• Through Budget 2021, the Government made legislative changes to the Employment Insurance Act to replicate the rules of the seasonal pilot project as a temporary measure until October 2022.
• Budget 2022 and 2023 further extended the temporary measure until October 2023 and again until October 2024. Most recently, Budget 2024 extended these temporary rules for two additional years, until October 2026.

Key facts

• In 2023 to 2024, seasonal claims made up approximately 28% of claims established for EI regular benefits (388,095 out of 1,374,813).
• Every year, approximately 10% of seasonal claimants face an income gap ("trou noir") between the end of their Employment Insurance benefits and the start of their next work season.
• Under the temporary measure currently in place, it is expected that 62,000 seasonal claimants will use at least one additional week of benefits each year of the two-year extension; the cost of this support is estimated at $263.5 million over four years.
• The 13 regions targeted by the seasonal measure are:
  • Newfoundland / Labrador (excludes St. John's)
  • Charlottetown
  • Prince Edward Island (excludes Charlottetown)
  • Eastern Nova Scotia
  • Western Nova Scotia
  • Madawaska-Charlotte
  • Restigouche-Albert
  • Gaspésie-Îles-de-la-Madeleine
  • Central Québec
  • North Western Québec
  • Lower Saint Lawrence and North Shore
  • Chicoutimi-Jonquière
  • Yukon (excludes Whitehorse)

Key messages

• Seasonal workers are an important part of Canada's economy and many of them rely on Employment Insurance for income support to avoid experiencing income gaps between work seasons.
• Since 2018, the Government of Canada has supported workers in seasonal industries with temporary rules providing up to five additional weeks of EI regular benefits to eligible seasonal workers in targeted regions.
• Budget 2024 extended this measure to October 2026.
• The Government of Canada is committed to enhancing the Employment Insurance program to respond to modern workforce realities and ensuring it continues to meet the needs of workers and employers, including those in seasonal industries.

3. Temporary Foreign Worker Program

a. Temporary Foreign Worker Program: Program Overview in Protecting Canada's Labour Market

Issue

The Temporary Foreign Worker (TFW) Program is designed to be used by employers as a last resort, and only when Canadians and permanent residents are not available to hire.

Background

• The TFW Program is a demand-driven program that enables employers to fill genuine, short-term labour market needs when Canadians and permanent residents are not available.
• The Program is designed to be a responsive tool and contributes to meeting federal economic and sustainable immigration priorities, complementing other ongoing domestic workforce strategies. It plays an essential role in:
  • addressing truly temporary labour market needs (serving as an accelerator to support major projects that lead to downstream labour market opportunities for Canadians)
  • addressing skill shortages (serving as a stop-gap measure while longer-term workforce capacity building strategies take effect)
  • addressing true labour shortages (bridging the gap between employer needs and availability of local labour to fill those needs), and
  • supporting the onboarding of global talent (through the Global Talent Stream)
• The TFW Program represents approximately 1% of the Canadian labour force and its share of the total non-permanent resident population is less than 10%. Though small, the Program plays a critical role in supporting employers in rural and remote areas (for example, agriculture) and key sectors (for example, food processing, construction, health care).
• The Program has guardrails in place to protect the Canadian economy, Canadian jobs, and temporary foreign workers. This includes the Labour Market Impact Assessment (LMIA) process, the employer compliance regime, and program requirements and conditions.

Key facts

• TFW Program requirements and policies are regularly reviewed to ensure they remain responsive to changing labour market conditions.
  • In response to high unemployment rates, the Program introduced a series of tightening measures between October 2023 and November 2024. These specifically target low-wage positions, with a view to enhancing program integrity, restricting program access, and reducing employer reliance on temporary foreign labour (see Annex A for details).
  • Preliminary results of the tightening measures indicate that the Program has seen an approximate 50% reduction in applications overall, with a reduction of about 70% for the Low-wage Stream specifically.
• Prospective employers must obtain an LMIA prior to being permitted to hire a temporary foreign worker. The LMIA evaluates whether there are valid justifications and a genuine need to hire a foreign worker. It also serves as the first safeguard for worker protections by reinforcing program requirements related to wages and working conditions.
  • In October 2024, the TFW Program expanded the use of enhanced assessments, which subject higher risk sectors and employers to a more rigorous Labour Market Impact Assessment evaluation process. This process includes probing questions and deeper fact-finding to validate business operations and labour market needs. More than 30% of LMIAs undergo an enhanced assessment.
• The TFW Program has in place a compliance regime to verify, through inspections, that employers are fulfilling the program requirements set out in their LMIA, along with working conditions as established in regulations. The compliance regime has evolved over the years, with the creation of new program conditions and authorities, including an approach that targets higher-risk areas for non-compliance and tougher penalties.
  • During inspections, employers must demonstrate compliance with up to 29 conditions under the federal Immigration and Refugees Protection Regulations, designed to protect the Canadian labour market and protect temporary foreign workers from abuse and exploitation. In September 2022, the regulations were amended to further strengthen worker protections.
  • In 2024 to 2025, ESDC conducted 1,435 employer compliance inspections, of which 10% of employers were found non-compliant. Penalties for non-compliance include warnings, Administrative Monetary Penalties, and/or bans from the Program.
  • To reduce duplication and streamline delivery, Budget 2025 announced that responsibility for employer-focused compliance inspections under the International Mobility Program will transfer to ESDC. This change will simplify the compliance landscape for employers, while supporting more coherent federal oversight. ESDC and Immigration, Refugees and Citizenship Canada (IRCC) will work together to determine the path forward.

Key messages

• When it comes to jobs, Canadians are always first in line. To be clear: the Temporary Foreign Worker Program is a last resort option for employers who cannot find qualified Canadians and permanent residents to fill job vacancies.
• In protecting Canadian jobs and the Canadian economy, the Government has restricted employer access to the Temporary Foreign Worker Program and is reducing employer's reliance on the Program.
• Tightening measures, implemented since 2023, have resulted in a 70% reduction in eligible applications for the Low-wage Stream and a 50% application reduction overall.
• In total, temporary foreign workers under the Program account for approximately 1% of Canada's overall workforce and support key regions and sectors that face serious labour shortages, like agriculture, food processing, construction, and health care.

Annex A: TFW Program Tightening Measures - October 2023 to November 2024

Effective October 26, 2023

The LMIA validity period (such as, the period following an LMIA approval that an employer has to submit a work permit application) was reduced from a maximum of 18 months to a maximum of 12 months.

Effective May 1, 2024

• The LMIA validity period was reduced from a maximum of 12 months to a maximum of 6 months.
• The cap on low-wage workers was reduced from 30% to 20% for the seven sectors identified in the Workforce Solutions Road Map, with an exception for the construction and health care sectors. Positions in the primary agriculture sector are exempt from Program caps.
• Asylum seekers with a valid work permit were added to the list of underrepresented groups that employers must target with their recruitment activities before submitting a LMIA for a low-wage position.

Effective September 26, 2024

• A "Refusal to Process" (RTP) policy was implemented in census metropolitan areas (CMAs) with an unemployment rate of 6% or higher for positions in the Low-Wage Stream. This measure applies to both seasonal (270 days or less) and non-seasonal positions.
  • Positions in the Primary Agriculture Stream, and occupations in food manufacturing (NAICS 311), construction (NAICS 23), and healthcare (NAICS 622 and 623) sectors will not be subject to this refusal to process, whether the position is seasonal or not.
  • For the period of July 11, 2025, to October 9, 2025, in Alberta, the RTP is in effect in the CMAs of Calgary, and Edmonton.
• Hiring limitations were imposed for temporary foreign workers, permitting employers to hire temporary foreign workers in low-wage positions for up to a maximum of 10% of their total workforce, in a specific work location.
  • The cap is 20% for occupations in food manufacturing (NAICS 311), construction (NAICS 23), and healthcare (NAICS 622 and 623) sectors.
  • Low-wage positions in the Primary Agriculture Stream, seasonal positions of less than 270 days (which provides additional flexibility for sectors like fish and seafood with surge demands during peak season), and highly mobile or truly temporary positions (120 calendar days or less) remain exempt from this measure.
• Reducing maximum duration for the period of employment for workers hired in low-wage positions (from two years to one year).
  • Low-wage positions in the Primary Agriculture Stream are exempted from this measure.

Effective October 28, 2024

The Program increased the number of categories that trigger an enhanced assessment, and the use of attestations for demonstrating the genuineness of job offers and business engagement was tightened to help prevent misuse of the program and ensuring stronger worker protection.

b. Temporary Foreign Worker Program Data

Key facts

• The Temporary Foreign Worker (TFW) Program represents a small share of the entire Canadian labour force, 1.1% when looking at annualized numbers from 2024.
• This share decreases to 0.8% when workers within the agriculture sector are excluded.
• Even focusing on the most recent labour force data from September 2025, published by Statistics Canada, the TFW Program only represented 1.4% of the entire labour force. This number is higher (as expected) as it is peak season for agricultural workers (removing Agricultural workers drops this to 1.0 %).
• As a share of all non-permanent residents (NPRs) in Canada, the TFW Program represents less than 10% of all NPRs in Canada, relative to other categories of NPRs (e.g., asylum claimants, international students, and temporary foreign workers via the International Mobility Program).
• Based on July 1, 2025, NPR numbers published by Statistics Canada, there are 2.96M NPRs in Canada. Of these NPRs, 9.6% had a valid work permit under the TFW Program (291,836).

Impacts of Tightening Measures

• Tightening measures implemented since 2023 have translated to a 70% reduction in eligible applications for the Low-wage Stream and a 50% reduction overall.
• Refusal rates have increased to over 9% this fiscal year (as of October 21, 2025), up from 2.7% in 2024 to 2025.
• The Refusal to Process (RTP) policy is currently in place within 32 census metropolitan areas (CMAs), which account for nearly 70% of the Canadian population. The current list of CMAs was set on October 10, 2025, and is valid until January 8, 2026. The next update will occur on January 9, 2026, based on December 2025 unemployment rates published by Statistics Canada via the Labour Force Survey.

Compliance

• In fiscal year 2024 to 2025, the TFW Program conducted 1,435 employer compliance inspections, of which 10% of employers were found non-compliant. During the same period, penalties more than doubled from $2,067,750 to $4,882,500 and resulted in 36 employers being banned from the TFW Program, a threefold increase the previous year.
• As of September 30, 2025, the TFW Program has finalized 702 employer compliance inspections. Of these, 65 (9%) were found non-compliant.
• As of September 30, 2025, over 10,000 tips and allegations have been received and approximately 3,000 were identified for priority assessment.
• The TFW Program reviews all tips and allegations in two business days. It is important to note that not all tips and allegations result in a compliance action. Some tips may lead to an inspection, some may be added to an already existing case, while others may be duplicates, lack sufficient information, or fall outside the TFW Program's mandate and are referred to the appropriate partners such as Canada Border Service Agency and the Royal Canadian Mounted Police.

c. Temporary Foreign Worker Program: Program Usage

Issue

There are claims that the Temporary Foreign Worker (TFW) Program is contributing to high unemployment rates across Canada, especially among youth.

Background

• The TFW Program requires prospective employers to submit a Labour Market Impact Assessment (LMIA), prior to being permitted to hire a temporary foreign worker. Employers are generally required to demonstrate that they have made efforts to recruit Canadians and permanent residents before applying.
• The LMIA evaluates whether there is a valid justification and a genuine need for the employer to hire a temporary foreign worker.
• In addressing labour market needs, the TFW Program plays an essential role in matching temporary residents to specific skills and labour gaps, particularly in rural areas.
• Unemployment rates in Canada began to rise in late 2023. As a result, the TFW Program implemented a series of tightening measures specifically targeting low-wage positions; restricting access to the Program and reducing employer reliance on temporary foreign labour.

Key facts

• Temporary foreign workers hired through the TFW Program account for approximately 1% of the total Canadian labour market, and less than 10% of non-permanent resident volumes.
• As of July 1, 2025, there were nearly 3 million non-permanent residents in Canada, with approximately 290,000 holding a valid work permit through the TFW Program.
• Nearly 40% of positions employers were authorized to hire through the TFW Program in fiscal year 2024 to 2025 were in rural areas.
• The tightening measures so far have resulted in a 70% reduction in eligible applications for the Low-wage Stream and a 50% reduction overall.

Key messages

• When it comes to jobs, Canadians are always first in line. To be clear: the Temporary Foreign Worker Program is a last resort option for employers who cannot find qualified Canadians and permanent residents to fill job vacancies.
• In protecting Canadian jobs and the Canadian economy, the Government has restricted employer access to the Temporary Foreign Worker Program and is reducing employer's reliance on the Program.
• Tightening measures, implemented since 2023 have resulted in a 70% reduction in eligible applications for the Low-wage Stream and a 50% reduction overall.
• In total, temporary foreign workers under the Program account for approximately 1% of Canada's overall workforce and support key regions and sectors that face serious labour shortages, like agriculture, food processing, construction, and health care.

d. Temporary Foreign Worker Program: Labour Market Impact Assessment Misuse and Fraud Associated with the Program

Issue

Fraudulent practices associated with the Temporary Foreign Worker (TFW) Program, and misuse of the Program and its Labour Market Impact Assessments (LMIAs), are serious issues that receive frequent media attention.

Background

• To access the TFW Program, employers must submit an LMIA application to demonstrate a genuine need to hire a temporary foreign worker. The LMIA is an important tool that not only serves to protect Canadian jobs and the Canadian labour market, but also acts as the first safeguard for worker protections.
• LMIA misuse can include the buying and selling of genuine LMIAs issued by Employment and Social Development Canada (ESDC). This misconduct is undertaken by unscrupulous employers for the intent of personal or financial gain rather than filling a legitimate labour or skill gap.
• TFW Program fraud refers to broader unethical and illegal recruitment practices, including falsifying job offers and LMIA decision letters targeting foreign nationals, both within Canada and abroad. Third-party recruiters, including unauthorized immigration consultants, have been known to engage in this misconduct.
• If criminal activity is suspected, the TFW Program works with partners such as the Canada Border Services Agency and the Royal Canadian Mounted Police to support the investigation of fraudulent activity.
• The TFW Program also has tools in place to prevent LMIA misuse as well as a compliance regime to hold employers who do not respect program requirements and conditions accountable.

Key facts

• To prevent TFW Program misuse, higher-risk employers are subject to greater scrutiny of their LMIA applications. Moreover, ESDC's Job Bank proactively monitors employer recruitment, removing an average of 1,000 non-compliant job ads per week.
• Higher-risk employers are flagged based on known patterns, past compliance, and red flags (for example, inflated wage offers). Since April 1, 2025, 35% of LMIA applications undergo an enhanced assessment.
• Employers found non-compliant with program requirements and conditions may face administrative monetary penalties of up to $1 million per year and bans from the TFW Program.
• The TFW Program shares intelligence with its partners such as Immigration, Refugees and Citizenship Canada, Canada Border Services Agency and the Royal Canadian Mounted Police to support investigations into criminal activity such as fraud.
• Service Canada offers a confidential tip line and online reporting tool for anonymous reporting of potential misuse and fraud.

Key messages

• The Government of Canada is firmly committed to safeguarding the integrity of the Temporary Foreign Worker Program and the Canadian economy. Buying and selling Labour Market Impact Assessment positions for personal or financial gain is prohibited.
• Employers involved in this practice are non-compliant with program conditions and are subject to significant consequences, which can include administrative monetary penalties of up to $1 million per year and a ban from the TFW Program.
• When fraudulent activity is suspected, the Temporary Foreign Worker Program works with partners such as the Canada Border Services Agency and the Royal Canadian Mounted Police, who have the appropriate enforcement authorities to investigate criminal activities.
• Budget 2025 reinforces the government's ongoing commitment to strong compliance measures and announced its intention to launch a review of fines and penalties to ensure the charges are sufficient and that non-compliance is not just treated as the cost of doing business.
• Together, the Government of Canada and its partners are actively working to prevent misuse and crack down on suspected fraud.

e. Issue Sheet - Misclassification in the Trucking Sector

Issue

The practice of misclassification of transport truck drivers, particularly the use of the "Driver Inc." model, violates Temporary Foreign Worker (TFW) Program requirements and undermines worker protections.

Background

• Employee misclassification is the illegal practice of treating workers, who meet the definition of employees, as independent contractors to avoid legal obligations under labour laws. In the road transportation sector, this often manifests as the scheme referred to as "Driver Inc.", where employers require drivers to incorporate and operate as contractors. Companies using this scheme avoid paying source deductions, such as income tax, vacation pay, and employment benefits, while denying workers protections under the Canada Labour Code.
• From the TFW Program perspective, this practice is prohibited by Program requirements. All work permits issued via the TFW Program are employer-specific. To receive a work permit via the Program, a temporary foreign worker must be recruited, hired, and paid by a Canadian employer identified in a positive LMIA.
• Regulations do not permit the granting of LMIAs to foreign nationals or temporary foreign workers as applicants. LMIAs are only available to employers in Canada.
• A temporary foreign worker cannot incorporate or self-employ to work as a truck driver for a company that received a positive LMIA. The worker must be on the payroll and hired under the same conditions, including wages and benefits, as other truck drivers employed by that company. Incorporating as an owner operator violates LMIA conditions and constitutes non-compliance with the TFW Program.
• The TFW Program has signed a Memorandum of Understanding (MOU) with the Labour Program to help address non-compliance and better target enforcement activities, including in the road transportation sector.
• The Program also engages stakeholders through the Trucking Industry Committee (established in March 2025) to address LMIA misuse, worker protections, and labour market integrity.

Key facts

• In 2024, there were approximately 8,100 LMIA positions approved via the TFW Program for transport truck driver positions (NOC 73300).
• In March 2025, TFW Program officials established a Trucking Industry Committee comprised of key industry stakeholders and federal department representatives. The committee focuses on shared priorities such as LMIA misuse, TFW Program non-compliance, labour market responsiveness, and worker protection. It also serves as a forum to gather labour market information and stakeholder perspectives.
• The TFW Program represents a small share of the entire Canadian labour force, approximately 1.1% when looking at annualized numbers from 2024. Similarly, the TFW Program represents less than 10% of all non-permanent residents in Canada.
• All work permits issued to temporary foreign workers via the TFW Program are employer specific or "closed work permits". Immigration Refugee and Citizenship Canada manages the authorization and issuance of other temporary entry programs into Canada, including any foreign nationals authorized to work in Canada on "open work permits."

Key messages

• The Temporary Foreign Worker Program requires participants to have an employer-employee relationship. The practice of worker misclassification is prohibited and constitutes non-compliance with the Program.
• While in Canada, temporary foreign workers have the same workplace rights and protections as Canadians and permanent residents. The Government of Canada remains firmly committed to safeguarding these rights and protections and works closely with its provincial and territorial governments, international partners, and worker support organizations on this front.
• If any suspected fraudulent or criminal activity is identified during LMIA processing or compliance inspections-including leads related to the misclassification of transport truck drivers-the TFW Program works closely with key federal partners such as the Labour Program (for federally regulated employers), IRCC, the Canada Border Services Agency (CBSA), and the Royal Canadian Mounted Police (RCMP). The TFW Program also collaborates with provincial and territorial governments through referral and escalation processes. This collaboration supports the sharing of information related to employer compliance and worker protection.

If pressed

• The Government of Canada is continuously taking steps to strengthen the TFW Program to protect the Canadian economy, Canadian workers, and temporary foreign workers. The Program also has a confidential tip line and online reporting tool where temporary foreign workers or other parties can anonymously report potential wrongdoing and misuse of the TFW Program.
• Employers that are determined to be non-compliant can face significant consequences, including administrative monetary penalties and bans from the Program. Non-compliant employers are also listed on a public-facing Government of Canada website.
• The Government of Canada also funds the Migrant Worker Support Program, which supports temporary foreign workers in understanding and exercising their rights while working in Canada

If pressed, specifically on trucking sector compliance in the TFW Program

• To help increase program integrity and to better address program misuse, the TFW Program conducts inspections in high-risk areas, including but not limited to the trucking sector.
• To date, since 2018 to 2019, the trucking sector had 74 non-compliant cases which represents an overall 13% non-compliance rate, more than double the 6% observed across all sectors for the same period.
• While earlier years (2018-2020) saw no monetary penalties in the trucking sector, non-compliance intensified from 2021 onward, with penalties and bans becoming more frequent. The total monetary penalties (AMPs) issued to trucking employers has amounted to $2.34 million since 2018 to 2019.
• In 2024 to 2025, 28 trucking employers were found non-compliant. This represented 19% of all non-compliant cases under the TFW Program that year, a significant overrepresentation given trucking's 3.6% share of employers.
• In 2024 to 2025, non-compliant trucking sector employers were issued $1.14 million in monetary penalties (AMPs), accounting for 23% of all AMP amounts issued under the Program in 2024 to 2025. This was the largest AMP total for trucking sector since 2018 to 2019.

• Notes: Unique employers based on Organization ID, that received a positive LMIA for the period from April 1, 2018, to September 5, 2025, based on data extracted from the LMIA system on October 23, 2025.
• *For the period of April 1, 2025 - September 5, 2025
• ** For the period of April 1, 2018 - September 5, 2025

f. Temporary Foreign Worker Program: Proposed New Agriculture and Fish Processing Stream

Issue

Budget 2022 announced the Government of Canada's intention to develop a new Agriculture and Fish Processing Stream via the Temporary Foreign Worker (TFW) Program. Employment and Social Development Canada (ESDC), Immigration Refugees and Citizenship Canada (IRCC), and Global Affairs Canada (GAC) have been consulting stakeholders to inform key design elements of the new Stream.

Background

• Budget 2022 proposed a new Agriculture and Fish Processing Stream to reflect the changing nature of the agricultural sector, seasonal fish, seafood and primary food processing sectors, focused on strengthening worker protections and tailored to the unique needs of these employers and workers.
• In 2024, the TFW Program and IRCC, with support from GAC, consulted over 300 stakeholders, including international partners, provincial and territorial governments, industry, and migrant worker support organizations.
• ESDC sent discussion papers to stakeholders throughout 2024 to 2025 to solicit feedback on: employer-provided accommodations, occupational scope, stream-specific work permits, transportation requirements, wages and deductions, and healthcare provisions. ESDC and IRCC are reviewing all input received.

Key facts

• The Primary Agriculture sector in Canada represents nearly 247,200 jobs and 1.4% of the GDP at $31.7 billion.
• Approximately 40% of the labour force within this sector is filled by temporary foreign workers, with nearly 86,000 positions approved via the TFW Program in 2024.

Key messages

• Budget 2022 proposed a new Agriculture and Fishing Processing Stream via the Temporary Foreign Worker Program.
• In 2024 to 2025, the Temporary Foreign Worker Program and Immigration, Refugees and Citizenship Canada, with support from Global Affairs Canada, consulted over 300 stakeholders, nearly half of stakeholders consulted were focused on temporary foreign workers' rights and supports.
• No determinations or proposals have been made as stakeholder feedback is still being reviewed and considered.
• The Government of Canada is committed to continuing to work closely with partners and stakeholders to build on existing measures and to strengthen the TFW Program, including the design of the new Stream.

4. Impact of Artificial Intelligence (AI) on Employment Rates

Issue

As artificial intelligence (AI) becomes increasingly embedded in Canadian workplaces, changes are expected in the labour market, including impacts on youth, as well as a growing need for re-skilling and upskilling.

Background

• Canada is a global leader in responsible AI, supported by a strong workforce of developers and researchers and a policy framework that balances regulation with innovation, in line with G7 commitments.
• Although AI adoption remains low overall, Canadian businesses are increasingly integrating AI, with faster uptake in tech-intensive and professional sectors, and slower adoption in areas like agriculture and food services.
• The full impact of AI on employment remains uncertain. However, an analysis by Statistics Canada estimates that approximately 60% of Canadian jobs are exposed to AI.
  • Of the jobs exposed to AI, roughly half are expected to benefit from the productivity enhancements that AI brings, while the other half may see certain human tasks replaced by AI.
• Unlike previous forms of automation, AI is forecasted to have a significant impact on high-skilled workers. This includes both positive impacts, through task support, and negative impacts, such as task displacement. On balance, however, more workers with post-secondary education are expected to benefit from AI adoption rather than be displaced by it.
• Youth, who tend to be more comfortable with digital technologies, may be well positioned in the labour market to take advantage of new AI tools; however, they could also be disadvantaged, as generative AI has the potential to reshape entry-level roles, potentially reducing opportunities to gain early work experience.

Key facts

• According to Statistics Canada, AI adoption among Canadian businesses doubled from 6% in 2024 to over 12% in 2025, with 18% planning to adopt AI software within the next year.
• Despite rising adoption, employers report limited impacts on employment. Among businesses that use AI, nearly 90% reported no change in employment, 4% reported an increase, and only 6% reported a decrease.
• Early Canadian data suggests that most businesses using AI are opting to train existing staff: nearly 40% have trained employees, compared to just 5% who hired AI-trained staff. This trend is expected to continue, with half of employers planning to train existing staff in AI over the next year.
• Statistics Canada estimates that Canadians living in urban areas, women, higher earners, and highly educated individuals are more likely to be employed in jobs that are highly exposed to AI. This exposure can lead to productivity enhancements but also poses risks of labour displacement.
• While a causal relationship between AI and youth unemployment has not been firmly established, some emerging evidence suggests a potential link. A recent Stanford University study of the American labour market found that young workers aged 22 to 25 in jobs most exposed to AI experienced a 13% decline in employment since 2022. Similar declines were not observed among older workers in these sectors, nor among youth in jobs with limited exposure to AI.
• While most projections do not anticipate large-scale worker displacement due to AI, changes in the composition of tasks due to AI means that an estimated 42% of the Canadian workforce will require reskilling to effectively use AI tools (2023 IBM Survey of Canadian Executive).

Key messages

• AI adoption is accelerating in Canadian workplaces, with usage doubling in one year and further growth expected. This will increase the impact of AI on jobs, making workforce adaptability and skill development more critical.
• It is too early to determine the definitive impact of AI on the labour market, including any link to the recent rise in unemployment, among youth or more broadly, as multiple factors are at play. Projections suggest that most AI-exposed jobs are not at immediate risk of elimination. Instead, many will be reshaped through task redesign, particularly for post-secondary educated workers who are better positioned to benefit.
• Successful AI integration into the labour market depends on robust upskilling and talent development strategies that equip workers with the knowledge and confidence to adapt their roles, deploy AI technologies, and drive innovation-while addressing the unique operational and technical needs of specific sectors.
• ESDC's income and training supports are available to help new labour market entrants and existing workers navigate a workplace where AI tools are increasingly present.
• Looking ahead, Innovation, Science and Economic Development Canada (ISED) is consulting with stakeholders on the Government of Canada's AI Strategy. To help track AI's use in the economy and better understand its impact on employment, Budget 2025 announced an investment of $25 million over six years and $4.5 million in ongoing funding for Statistics Canada to launch the Artificial Intelligence and Technology Measurement Program (TechStat)

5. Labour Mobility for Workers in the Skilled Trades

Issue

In the context of economic uncertainty, it is crucial to support Canada's economy by removing interprovincial labour mobility and trade barriers and enabling workers to fill jobs wherever they are available in Canada.

Background

• The Government of Canada is committed to building one Canadian economy by removing barriers to interprovincial trade and labour mobility and identifying and expediting nation-building projects that will connect and transform our country (priority #2 of the May 21, 2025, Government of Canada's mandate).
• The free movement of workers supports an efficient labour market and contributes to economic growth by optimizing the distribution of labour and skills. Labour mobility is primarily a provincial/territorial responsibility. Provinces and territories establish occupational standards and entry-to-practice requirements for most regulated occupations.
• The Red Seal Program, which receives federal funding and in-kind contributions from provinces and territories, is an F-PT collaboration to establish common occupational standards for 54 Red Seal trades. This supports harmonized apprenticeship training and a well-recognized credential that shows that the skilled tradesperson has met the requirements of the national standard, which in turn facilitates their mobility.
• Additionally, through the Forum of Labour Market Ministers, federal, provincial and territorial governments collaborate to implement a Labour Mobility Action Plan. This Plan will bring about immediate and long-term changes that will substantially reduce barriers to the mobility of workers in regulated occupations, including the skilled trades. Key initiatives include:
  • amending Chapter Seven of the Canadian Free Trade Agreement (CFTA) to eliminate administrative burden, increase predictability, accountability and support pan-Canadian consistency.
  • Reviewing the 14 occupations that have labour mobility exceptions (only two of them are skilled trades). 
  • eliminating barriers to skilled trades mobility in collaboration with the Canadian Council of Directors of Apprenticeship (CCDA). The CCDA manages the Red Seal Program. 
  • addressing health and safety issues by engaging the Canadian Association of Administrators of Labour Legislation (CAALL). 
• These changes will improve the labour mobility of skilled tradespersons. For example:
  • amendments to the CFTA will enable tradespersons:
    • to receive a decision on their labour mobility application within 30 calendar days which will enable them to start work sooner
    • to clearly understand the requirements and processes for certificate recognition, supported by the new obligation for regulatory authorities to clearly publish their recognition processes on their website
  • the digital solution implemented by the CCDA enables employers and apprenticeship authorities to immediately verify the certificate of qualification of tradespersons and issue a local certificate (as required) so that tradespeople can begin work faster. It also provides information on the additional safety certifications requirements in the new jurisdiction
  • Harmonizing occupational health and safety training requirements across provinces and territories through the CAALL will allow workers to work in different jurisdictions without having to repeat this training unnecessarily

Key facts

• About 215,000 working age Canadians move between provinces and territories each year (0.5% of the 2024 population).
• Workers in regulated occupations, including compulsory skilled trades, are required to have their qualifications recognised in other provinces or territories to be able to practice there. 
• Chapter Seven of the CFTA, signed by all provinces and territories and the federal government, lays out the conditions to improve and promote interprovincial mobility in regulated occupations, including the skilled trades. It includes the certificate-to-certificate recognition principle which is a form of mutual recognition.
• However, labour mobility barriers persist hindering Canada's efficiency and productivity. They include red tape and administrative burden (for example, extensive documentation); varying occupational standards across jurisdictions; and a lack of clear information on labour mobility processes. This can make the labour mobility process expensive, lengthy and complex for workers and employers.

Key messages

• In the context of economic uncertainty, it is crucial to support Canada's economy by removing interprovincial trade barriers and enabling workers to fill jobs wherever they are available in Canada.
• All governments are seized with the urgency to address the trade crisis Canada is facing and are working together to strengthen our labour market and support one Canadian economy.
• The Government of Canada is working with provinces and territories to advance an ambitious and comprehensive plan to eliminate barriers to the mobility of workers in all regulated occupations, with a focus on the skilled trades.
• This plan will make interprovincial and territorial certificate recognition processes more transparent, faster and less complex. Amending the Canadian Free Trade Agreement will support pan-Canadian consistency.
• This plan also includes initiatives specific to the skilled trades. It includes the implementation of digital tools to make the verification of tradespeople's credentials easier. Governments are also collaborating to address labour mobility issues related to differing health and safety standards.

6. Canadian Apprenticeship Strategy

Issue

Canada needs more skilled trades workers to adapt to shifts in demographics, technology, global supply chains, and to support major national projects, including housing.

Background

• While apprenticeship is a provincial and territorial (PT) responsibility, the federal government plays a leadership role in fostering a cohesive trades and apprenticeship system in Canada, including by making significant investments through the Canadian Apprenticeship Strategy (CAS).
• Since 2022, the CAS has been contributing to strengthening Canada's apprenticeship ecosystem by helping its key actors (for example, employers, unions and training organizations) participate in skilled trades apprenticeships, thereby supporting a trades workforce that is skilled, inclusive, certified and productive.
• With 13 PT apprenticeship authorities responsible for regulating apprenticeship systems that respond to their respective industrial, economic and geographic realities, a cohesive approach to helping address skilled trades labour shortages is needed now, more than ever, to build housing at an unprecedented speed and deliver on current and anticipated major infrastructure projects.
• The CAS is essential to a well-coordinated, coherent ESDC-led response to growing a more robust and resilient skilled trades workforce capable of meeting labour market needs of today and tomorrow so the government can deliver on two key priorities: Building One Canadian Economy and Making Housing More Affordable (priorities #2 and #4 of the Prime Minister's Mandate Letter, May 21, 2025).

Key facts

• Announced in 2019 and implemented in 2022, the CAS includes a suite of apprenticeship supports namely the Union Training and Innovation Program (UTIP), the Skilled Trades Awareness and Readiness (STAR) program, the Women in the Skilled Trades (WST) Initiative, the Apprenticeship Grants (which sunset in March 2025), the Apprenticeship Service, and support for Skills/Compétences Canada. It is also complemented by an award-winning National Campaign to promote the skilled trades as first-choice careers, as well as by the Red Seal Program and the Canada Apprentice Loan, the two latter initiatives separately funded by the Department.
• Together these initiatives empower the skilled trades training ecosystem and build Canada's skilled trades talent pipeline. Supports include:
  • union-led apprenticeship training and innovative approaches to improving accessibility of training programs for apprentices from equity deserving groups in the Red Seal trades;
  • building awareness of the skilled trades (for example, through PT and national skilled trades competitions) and facilitating work experience opportunities for individuals wishing to pursue a career in the trades; and
  • financial incentives to increase the number of employers participating in apprenticeship by making it easier and more affordable for them to hire first year apprentices. This then increases opportunities for apprentices to get the hands-on experience they need for a career in the skilled trades
• Feedback has been positive. For example, Canada's Building Trades Unions affiliates report that because of the support of the Union Training and Innovation Program (UTIP):
  • their training centres now have the resources to build advanced curricula and online learning tools, enabling them to attract, train, and retain the next generation of tradespeople
  • the equipment upgrades they were able to make mean apprentices are using new tools that reflect real-world conditions they will face on the job which is resulting in students being more engaged and better prepared for certification exams
  • participants from equity deserving groups are also sharing that UTIP "opened doors that were previously closed" and "provided mentorship that made all the difference" in their apprenticeship journey
• There is a longstanding policy to link the eligibility of federal apprenticeship investments to Red Seal trades. Tying eligibility for federal apprenticeship supports to PT participation in the Red Seal Program is the mechanism through which the federal government ensures that support is focused on trades of national significance, where there is comparability/consistency of the training and certification requirements at the national level.
• Budget 2016 announced $110 million over five years, from 2017 to 2018 to 2021 to 2022, and $25 million per year ongoing for the Union Training and Innovation Program (UTIP). This initiative provides annual funding to support union-based apprenticeship training, innovation, and enhanced partnerships in the Red Seal trades across Canada through two permanent streams of funding for investments in training equipment, and innovation in apprenticeship.
  • Budget 2025 announced $75 million over three years, starting in 2026 to 2027, to double the UTIP, which supports union-based apprenticeship training in the Red Seal trades.
• In 2023 to 2024, CAS investments of $361 million enabled 41,697 individuals to participate in skills training activities across 192 projects.
• In 2023, there was a record high in new apprenticeship registrations (over 82,000 new registrations in a Red Seal trade), the highest rate since 2012. In addition to increased registration numbers, the Department is also seeing a rise in women's participation in male-dominated Red Seal trades, more youth joining apprenticeship programs, improved perception of skilled trades, and effective collaboration with provinces and territories on the Red Seal program (Registered Apprenticeship Information System (RAIS).
• Demand for skilled trades workers is expected to remain strong, with more than 593,000 job openings in Red Seal trade-related occupations, mainly due to retirements and strong employment growth between 2024 and 2033 (Canadian Occupational Projection System, 2024 projection). These projections do not account for recent developments expected to impact labour markets, including tariffs, lower immigration targets, and rising ambition in major projects.

Key messages

• Budget 2025 announced $75 million over three years, starting in 2026 to 2027, to double the Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seal trades.
• This is on top of the Government of Canada's current investments of nearly $1 billion per year to support apprentices through loans, tax credits, Employment Insurance benefits during in-school training, project funding, and support for the Red Seal program.
• Today, the Government of Canada is rising to the challenge of delivering housing and major infrastructure projects at an unprecedented pace. While this intensifies existing labour market pressures, it also presents a powerful opportunity to rethink how we build, innovate, and respond to the evolving needs of our communities.
• As such the federal government will continue to play a leadership role in fostering a more cohesive trades and apprenticeship system in Canada, particularly for the Red Seal trades.
• The Canadian Apprenticeship Strategy contributes to growing a more robust and resilient skilled trades workforce capable of meeting labour market needs of today and tomorrow.

If pressed on the sunset of the Apprenticeship Grants

• While the Apprenticeship Grants ended on March 31, 2025, the Government of Canada remains fully committed to supporting apprentices financially as they progress or are unemployed through their technical training. Individual apprentices continue to be supported through several measures, including the:
  • Employment Insurance for Apprentices
  • Canada Apprentice Loan (up to $20,000 per Red Seal apprentice)
  • Tradesperson's Tools deduction
  • Apprentice Mechanic Tools deduction
  • Tuition Tax Credit
  • Canada Training Credit
  • Labour Mobility deduction

If pressed for examples of UTIP projects

• Colin Reynolds (Conservative Party Commitment) - Elmwood - Transcona (Winnipeg)
  • Through the Union Training and Innovation Program, the Operating Engineers of Manitoba (OETIM) - Local 987 received $217,000 to purchase virtual reality simulators for technical training for Crane Operator apprentices. This investment helped provide technical training to Indigenous and newcomer students, with thirteen participants obtaining Red Seal certification.
• Marilène Gill (Bloc Québecois) - Côte-Nord - Kawawachikamach - Nitassinan (Quebec)
  • Apprenticeship training is not delivered by unions in Quebec. The Government of Canada delivers UTIP funding through a bilateral agreement with the Province of Quebec. Through this funding, the UTIP funded two projects in the Côte-Nord Region, delivered by the Centre de services scolaire (CSS) de l'Estuaire and Eastern Shores School Board. Together, these school boards purchased welding and construction trailer equipment that helped train 45 students, including eight women and seven Indigenous students, with an overall pass rate of 80%.
• Laila Goodridge (Conservative Party Commitment) - Fort McMurray - Cold Lake (Alberta)
  • Through the Union Training and Innovation Program, Portage College obtained $131,979 to modernize its welding lab. Note: the UTIP provides flexibility to support non-union organizations which provide provincially-recognized training to Red Seal apprentices. This funding is expected to help provide current and relevant training, promote the college for apprenticeship training in the region, and train more Alberta apprentices who will readily contribute to Canada's economy.

7. Skills Retraining in Sectors Impacted by Tariffs (SEB) (IPPD)

Issue

Since US and other tariffs are seriously affecting employment in various sectors in Canada, in the summer of 2025 the Prime Minister announced $570 million, over three years, in targeted support for steel and softwood lumber workers, and for workers from other tariff-impacted industries.

Background

• Tens of thousands of jobs are being affected by foreign tariffs, resulting in additional Employment Insurance (EI) claims for regular benefits, additional applications for the Work-Sharing program, and an increase in the number of workers who will be eligible for EI-funded training.
• This EI-funded training is essential for supporting employers and workers in these challenging economic times. It helps workers gain the skills and training they need to enhance their productivity and to thrive as our economy transitions.
• The $570 million announced for tariff-affected workers supplements the Government of Canada's existing labour market investments - for instance, the $2.9 billion provided annually under bilateral labour market agreements with the provinces and territories. For 30 years, these agreements have funded delivery of training and employment assistance services via provincial and territorial employment assistance offices across Canada to help millions of Canadians upgrade their skills and find employment each year.

Key facts

• ESDC is targeting $570 million for the support of steel and softwood lumber workers, and workers from other tariff-impacted industries, including:
  • $450 milion over three years to provide training and employment support for up to 50,000 tariff-impacted workers, invluding mid-career and long-tenured workers
  • $70 milion over three years, to support up to 10,000 Canadian steel workers, and
  • $50 million over three years to support more than 6,000 Canadian softwood lumber workers
• Agreements are being finalized with provinces and territories. We are working with employers and unions to prepare for program roll out which will begin in November. PTs also have existing funding to provide training to displaced workers.
• Displaced workers in tariff-impacted sectors will be contacted and offered skills development training that will allow them to reskill and upskill into new opportunities. Employed workers and those on Work-Sharing agreements will also be able to access training to help them retain their jobs and help their employers pivot to new opportunities.
• The Government of Canada also provides $2.9 billion per year under its labour market agreements with the provinces and territories, which in turn design and deliver training and employment supports tailored to local labour market needs.

Key messages

• An essential part of supporting workers is ensuring they have active support measures to attach or reattach themselves to the workforce as soon as possible after job loss.
• Canada has long worked with P/Ts and Indigenous organizations to develop and sustain a national system of training and employment assistance supports; this includes hundreds of points of service across the country to serve Canadians where they live.

Tariff-Response

• The Government of Canada is investing $570 million over three years in collaboration with provinces and territories, employers, unions, and other stakeholders, to ensure that tariff-response funding is allocated where it is needed most, notably for:
  • mid-career, long-tenured workers affected by U.S. tariffs and global market shifts
  • Indigenous peoples, and
  • underrepresented groups, such as youth, persons with disabilities, and women.

8. Foreign Credential Recognition

Issue

Despite significant labour shortages across key sectors in Canada, internationally trained professionals continue to face barriers to entering the labour market, such as a lack of Canadian work experience and the foreign credential recognition (FCR) process for regulated occupations.

Background

• FCR and licensure are largely a provincial and territorial responsibility that are often delegated through legislation to regulatory authorities. There are approximately 600 regulatory authorities in Canada and 65 to 275 regulated occupations, depending on the jurisdiction.
• The Foreign Credential Recognition Program (FCRP) helps to develop and strengthen Canada's foreign credential assessment and recognition capacity, contributes to improving the labour market integration outcomes of internationally trained professionals, and supports interprovincial labour mobility. The Program does this by: convening provinces and territories (P/Ts) to share information and best practices, and by providing funding to P/Ts, regulatory authorities, and other organizations to improve FCR processes by making them faster and more efficient; providing loans and support services to help internationally trained professionals with FCR expenses; and by providing employment supports to help internationally trained professionals gain Canadian work experience in their field of study.

Key facts

• The total budget for the FCRP in 2025 to 2026 is $71 million (includes transfers from other programs on top of ongoing funding).
• Budget 2024 provided an additional $50 million over two years starting in 2024 to 2025 for the Program, with a focus on residential construction and health care. This builds on Budget 2022 investments of $115 million over five years starting in 2022 to 2023 and $30 million ongoing for the Program, starting with a focus on supporting the labour market integration of internationally educated health professionals.
• Budget 2025 announced $97 million over five years, starting in 2026 to 2027, for Employment and Social Development Canada to establish the Foreign Credential Recognition Action Fund and work with the provinces and territories to improve the fairness, transparency, and timeliness of FCR, with a focus on health and construction sectors. This funding will be sourced from existing departmental resources.
• System improvement projects make processes faster and more efficient.
  • For example, the FCRP supported the National Nursing Assessment Service to create an Expedited Service. Launched in June 2023, this new service allows an internationally educated nurse to start the credentialing process for becoming a Registered Nurse or Licensed Practical Nurse in one application for a single price. It has reduced the credential assessment process by 85% (from 12 months to 6 weeks) and the cost of assessment by 40% (from $1,250 to $750). Currently, 80% of regulatory bodies representing the nursing professions are part of the Expedited Service
• Loans projects help internationally trained professionals cover FCR expenses. Since 2018, the FCRP has supported the issuance of nearly $29 million in FCR loans to more than 3,100 internationally trained professionals.
  • From 2018 to 2022, $16.9 million in loans were issued to 1,853 internationally trained professionals. To date, 56% of borrowers completed the FCR process and 63% found employment in their field of expertise or related occupation. These results continue to increase during the current loan repayment phase (2022 to 2026)
  • In 2022 to 2023, the FCRP launched seven new 10-year agreements totaling $43 million that are now issuing new loans. To date, these projects have issued nearly $12 million in loans to more than 1,300 internationally trained professionals
• Employment support projects help internationally trained professionals gain Canadian work experience.
  • Since 2021, over 10,000 participants were provided with employment supports. Of the projects which concluded, 43% of participants have gained Canadian work experience relevant to their profession or field of study and 40% have found employment in their field of expertise or an alternative career
  • For example, the FCRP is currently supporting a $2.5 million project with La Société Économique de l'Ontario to help 250 Internationally Educated Health Professionals (IEHPs) in Ontario and British Columbia gain Canadian work experience by providing structured, supervised internships

Key messages

• Provincial and territorial governments are primarily responsible for credential recognition and licensure for regulated occupations and often delegate this authority through legislation to regulatory authorities.
• The Government of Canada recognizes the challenges internationally trained professionals face. The Foreign Credential Recognition Program supports the labour market integration of internationally trained professionals by funding P/Ts, regulatory bodies and other stakeholders to improve foreign credential recognition systems, provide loans and support services to help internationally trained professionals navigate foreign credential recognition processes, and employment supports to help internationally trained professionals gain Canadian work experience.
• Budget 2025 announced $97 million over five years, starting in 2026 to 2027, to establish a Foreign Credential Recognition Action Fund and work with the provinces and territories to improve the fairness, transparency, and timeliness of FCR, with a focus on health and construction sectors.
• Since 2015, the Program has invested over $347 million in 137 projects to support internationally trained professionals.
• These investments help reduce the time, cost and complexity of foreign credential recognition processes and help internationally trained professionals obtain employment in their fields of expertise.

Project examples

System improvements

• Association of Canadian Faculties of Dentistry ($8,306,400, January 2024 to January 2028)
  • To design, implement, and evaluate a new certification pathway for Internationally Trained Dentists (ITDs) whose competencies align with graduates of accredited dental programs. The project aims to reduce barriers in the foreign credential recognition process and shorten the time for ITDs to enter the Canadian labour market. The pilot will be launched in Alberta, Ontario, and Quebec

FCR loans

• Windmill Microlending ($8,495,400, January 2023 to December 2032)
  • To provide loans to cover foreign credential recognition related expenses and support services (for example, one-on-one career and financial counselling) to internationally trained professionals. The project aims to deliver support services to 400 clients of which 322 will receive loans

Employment supports

• Canadian Pharmacists Association ($5,186,097, January 2024 to January 2028)
  • To provide Canadian work experience, mentorship opportunities, and targeted training to 900 internationally trained pharmacists to improve their understanding of Canadian pharmacy practice, licensure pathways, and alternative career options

Testimonial/success story

• FCR Loans
  • Testimonial from FCR Loans Recipient, Internationally Educated Nurse: "The Atlantic immigrant loan fund was the financial loan I needed very much to graduate from the re-entry program. It has played a large role in my success. I am glad that immigrants are able to access such loan programs"

9. Hot Issue Note: Workforce Alliances and the Workforce Innovation Fund

Issue

On September 5, 2025, as part of a broader tariff package, the Government announced $382 million over five years and $56 million ongoing to launch new Workforce Alliances and a Workforce Innovation Fund (WIF) to tackle urgent labour market challenges, bring together government, employers, unions, and industry organizations to develop and implement tailored workforce development strategies and drive growth.

Background

• There is a need for greater cohesion and more strategic workforce development in key sectors, exacerbated by the current geopolitical and economic context. Existing workforce development approaches to meet in-demand occupations are fragmented and Provinces and Territories lack collaboration mechanisms to support alignment.
• Workforce Alliances will focus on sectors under pressure and those with growth potential, by bringing together employers, unions, educational institutions and industry associations to address labour market challenges and to coordinate public and private investments in skills development. These actions will help businesses and workers succeed in the changing labour market, and ensure that there is a pipeline of talent in growth sectors.
• The new WIF is an agile fund that will provide targeted strategic investments to help businesses in key sectors (at a national or regional level) boost skills development, recruitment, and retention of the workforce they need. It will also enhance labour market resilience through initiatives that help workers upskill, reskill, and transition to new jobs. The WIF will invest in projects that support government priorities such as nation-building projects, defence strategy and housing, among others. The fund will incentivise private sector investments as it is based on a cost-sharing model.
• By introducing a national coordinating mechanism with the tools to implement real solutions, the Alliances and the WIF will help not only frame a coordinated response around tariff impacted sectors but also support the government's mandate priorities focused on one Canadian economy, creating new careers in the skilled trades via a modern housing industry, and supporting the workforce to deliver on Canada's major projects.

Key facts

• Global economic instability and shifting trade relationships are placing significant pressure on some of Canada's largest sectors, creating additional and evolving challenges for Canada's workforce such as significant labour shortages, adaptability challenges, skills mismatches, productivity lags, and supply chain issues. These disruptions manifest differently across sectors and industries, requiring tailored action.
• Between January and April 2025, Canadian exports to the United States declined by 26.2%, driven largely by newly imposed U.S. tariffs and shifting market conditions. The manufacturing and energy sectors were among the hardest hit, with significant drops in automotive and crude oil exports.
• Affected priority sectors are integral to achieving our goals, such as mining and energy to protect Canada's sovereignty; manufacturing driving affordability; transportation to remove trade barriers; and construction enabling our housing and infrastructure goals.
  • At the same time, youth unemployment is high, and key industries are saying they are lacking the skills they need - both issues calling for new solutions to develop and match skills with demand-sectors.

Key messages

• Canadian workers have felt the impact of U.S. tariffs.
• As part of a broader tariff package announced by the Prime Minister on September 5, 2025, the Government of Canada is investing in modern measures to protect, build and transform Canada's strategic industries.
• New investments include creating up to five Workforce Alliances to tackle urgent labour market challenges in sectors under pressure and with growth potential.
• As an illustrative example is a Metal, Minerals, and Mining Alliance that could be created with a mission to support major projects and the defence industry. Challenges with attracting and retaining talent are currently impacting this sector's ability to respond to growth and capitalize on opportunities. An Alliance would mobilize to orchestrate complex, cross-jurisdictional collaboration, engaging provinces and territories, Indigenous partners, and industry stakeholders to ensure alignment and maximize impact. The Alliances, with support from other skills and employment programming, would spearhead initiatives to establish mentorship and leadership development opportunities, promote inclusive workplace policies, and create targeted incentives for hiring local workers, demonstrating a comprehensive, hands-on approach to drive systemic change and foster economic growth in rural communities.
• Similarly, the Workforce Innovation Fund will invest in strategic initiatives that strengthen labour market resilience such as training, reskilling and upskill to build talent pipelines for government priorities including nation-building projects, housing, and critical minerals, among others. Furthermore, it will help workers and businesses in sectors most affected by global trade disruptions and U.S. tariffs such as steel and softwood lumber, by supporting their transition into new industries.
• The Fund may also support business and trade diversification initiatives that help firms expand trading partnerships, increase productivity, and adjust to shifting international trade trends.
• For example, the Fund could support initiatives such as the Mine Training Society's "Sustainable North: Our Workforce", which aims to provide training and transition supports to mid-career workers in the Northwest Territories, by moving to low-carbon jobs due to expected closures of diamond mines.
• The vision for the Alliance and the Workforce Innovation Fund is to collectively create self-sustaining workforce ecosystems.

10. Student Loan Forgiveness

Issue

• Budget 2024 announced that the CSL forgiveness benefit would be expanded to ten new occupations: Early Childhood Educators, Dentists, Dental Hygienists, Pharmacists, Midwives, Teachers, Social Workers, Personal Support Workers, Physiotherapists, and Psychologists. Regulations were pre-published for comments in February 2025 indicating an implementation date of November 1, 2025.
• Work is currently underway to obtain final regulatory approval before the measure can be implemented.

Background

• Canada Student Loan (CSL) forgiveness was introduced in 2013 as one way to complement existing provincial, territorial and federal efforts to combat the shortage of health care professionals in rural and remote communities.​ CSL forgiveness is currently available to family doctors, family medicine residents, nurse practitioners, registered / licensed practical nurses, registered nurses, and registered psychiatric nurses.
• Budget 2022 committed to increasing the maximum forgivable amount of CSLs by 50 percent. This was implemented on November 3, 2023, with family doctors and family medicine residents now eligible to receive up to a maximum of $60,000 in loan forgiveness over five years and nurses and nurse practitioners eligible to receive up to a maximum of $30,000 in loan forgiveness over five years.
• To further enhance the benefit, Budget 2023 committed to expanding the definition of under-served rural and remote community to include all communities with a population of 30,000 or less. This was implemented on November 6, 2024. With this change, some communities with a population over 30,000 which were previously eligible for the benefit became ineligible. To mitigate the impact on these communities, they will remain eligible until the 2026 Census.
• Budget 2024 announced that the CSL forgiveness benefit would be expanded to ten new occupations: Early Childhood Educators, Dentists, Dental Hygienists, Pharmacists, Midwives, Teachers, Social Workers, Personal Support Workers, Physiotherapists, and Psychologists. Regulations were pre-published for comments in February 2025.

Key facts

• In the 2023 to 2024 fiscal year, $27 million in CSLs were forgiven under the CSL forgiveness benefit and 5,700 individuals benefitted.
• Since its inception, over 20,000 doctors and nurses have received about $200 million in loan forgiveness under this measure.

Key messages

• Since 2013, the Government of Canada has forgiven a portion of CSLs for eligible family doctors, family medicine residents, nurse practitioners, and nurses working in rural and remote communities as one tool to address the shortage of primary health care providers in these areas.
• In the 2023 to 2024 fiscal year, $27 million of CSLs were forgiven under the CSL forgiveness benefit and 5,700 individuals benefitted.
• Recent Budget commitments have brought two key enhancements to the benefit: an increase to the maximum forgivable amount by 50 percent, implemented in Fall 2023; and an expansion of the definition of under-served rural and remote community to include all communities with populations of 30,000 or less, implemented in fall 2024.
• Budget 2024 committed to expand the list of eligible occupations to include ten additional health care and social services occupations. Work is currently underway to obtain final regulatory approval before the measure can be implemented.

11. Recent enhancements to Student Financial Assistance

• The Canada Student Financial Assistance (CSFA) Program provides need-based grants and interest-free loans to help students access post-secondary education and offers the Repayment Assistance Plan to borrowers with financial difficulty.
  • In the 2023 to 2024 academic year, approximately 728,000 post-secondary students received financial assistance from the CSFA Program, in the form of grants and loans. The CSFA Program provided $2.6 billion in non-repayable Canada Student Grants to approximately 586,000 students and $4.8 billion in interest-free Canada Student Loans to 649,000 students.
• In response to the COVID-19 pandemic, Canada Student Grants (CSGs) were temporarily doubled over pre-pandemic amounts from the 2020-21 through 2022-23 school years.
• To address ongoing affordability challenges, CSGs were subsequently increased by 40% over their pre-pandemic amounts for the 2023-2025 school years, with a recent extension for 2025-26. Post-secondary students can benefit from the following grants (including Canada Student Grant for Full-Time Students of up to $4,200 for a typical academic year versus up to $3,000 in 2019 to 2020).
• Canada Student Loans (CSLs) were also increased from $210 per week to $300 for two years (2023 to 2025), and then again for 2025 to 2026. This means full-time students can receive a maximum of $10,200 for a typical 34-week academic year (previously $7,140). Prior to 2023 to 2024, the weekly loan limit had remained at the same level ($210) since 2005 to 2006, except when it was temporarily increased to $350 for 2020 to 2021 as part of COVID-19 relief measures.
• On November 1, 2022, the Government increased the zero-payment income threshold for the Repayment Assistance Plan so that single borrowers are not required to begin repaying their CSLs until they are earning at least $40,000 per year. This amount is adjusted upward based on family size. To ensure this support keeps pace with the cost of living, the zero-payment income threshold is indexed to inflation. As of August 1, 2025, the zero-payment income threshold for a single borrower is now $45,456 per year.
• On April 1, 2023, the Government of Canada permanently eliminated interest accrual on CSLs and Canada Apprentice Loans. This built on temporary waivers on interest during the COVID-19 pandemic.
• In August 2024, the Government of Canada modernized the shelter allowances used by the CSFA Program to assess students' financial needs. This new approach will provide additional student aid to help approximately 79,000 students each year with the real cost of rent.
• On August 1, 2022, the Government expanded eligibility for supports for students with disabilities to recipients whose disabilities are persistent or prolonged, but not necessarily permanent.
• In Budget 2024, the Government announced automatic enrolment to the Canada Learning Bond, which provides up to $2,000 in a low-income family's child's Registered Education Savings Plan. Starting in 2028-29, all eligible children born in 2024 or later would have a Registered Education Savings Plan automatically opened for them and the eligible Canada Learning Bond payments would be auto-deposited in these accounts.

12. Budget 2025 and Private Educational Institutions

Why exclude students attending Private Career Colleges (PCC)?

• PCCs traditionally focused on flexible short-term training (less than 2 years in duration) to meet labour market needs. (for example, PSWs). Funding for students in these programs is not impacted by this measure.
  • These students will receive student loans, grants for students with disability, students with dependants and services and equipment grants for students with disability.
• Students attending longer programs (2 years or more) at for-profit PCCs will no longer be eligible for this particular grant (Canada Student Grant for Full-Time Students). However, these longer programs, especially the ones in high demand (in health sector, for example), are generally available at public educational institutions at a lower cost to the participants.
• Furthermore, labour market outcome also tends to be better for those graduating from public institutions. Student loan default rate for PCC students (16%) is significantly higher than those attending public institutions (5% for university students and 9% for public college students).
• The number of student grants and loan recipients in PCCs has more than doubled in 5 years, whereas recipients attending university and college have remained stable.
• More importantly, number of recipients for this particular grant (Canada Student Grant for full-time students which is only available to students attending programs 2 years or longer) has increased more than 300% ($68M to $288M) as more and more programs offered by PCCs are now over 2 years in length.
• This is putting serious strain on financial sustainability of the Canada Student Financial Assistance (CSFA) Program.

Why exclude only for-profit ones?

• Not-for profit ones are sometimes situated in remote communities and owned and operated by communities (for example, New Brunswick Indigenous Career College).

What about profit private institution offering programs in high demand?

• If it is established that there are communities where (i) a certain PCC is offering a program longer than two years to meet local labour market needs, and (ii) that program is not available in the public or not-for-profit system, the Minister of ESDC will retain the authority to exempt that school (pending regulatory approval).

What other integrity measures are being considered?

• Budget Implementation Act includes two other legislative amendments to address integrity issues related to private educational institutions by:
  • internationally, Canada Student Loans and Grants generally would not be provided to those who attend for-profit private institutions
  • align with provincial/territorial (PT) decisions, where appropriate, to suspend or deny federal SFA related to integrity or financial risk

Supplementary Information

Does ESDC have any evidence of fraud or misappropriation of funds related to private post-secondary institutions?

• The measures announced in Budget 2025 are meant to strengthen the integrity of the program, with the objectives of limiting financial risk to the Crown and ensuring that post-secondary students have access to the best educational outcomes.
• Unrelated to the Budget announcement, between 2021 and 2025, ESDC identified approximately 800 cases of fraud and misrepresentation, representing over $11 million in losses of public money; the vast majority of these cases were related to students enrolled in private educational institutions.
• ESDC has implemented enhancements to the authentication and registration process which improves security measures for user authentication.
• Separately, as part of its regular reviews, ESDC has identified a number of suspicious patterns related to funding for students attending some private educational institutions. Based on a sample of students applying for student financial assistance to attend certain private educational institutions who were selected for additional verification, close to half were deemed to be non-qualifying students for the purpose of student financial assistance.
• ESDC has recently notified five private educational institutions and their students that funding may be suspended or denied to students attending these schools. Once the Department receives their comments and submissions, a decision will be made upon careful examination of the submissions.

13. Student Work Placement Program

Issue

The Student Work Placement Program helps connect students with employers across the Canadian economy to prepare for their future careers. In 2025-2026, the Student Work Placement Program will aim to support the creation of over 40,000 opportunities, comprised of 20,000 work placements and 20,000 innovative work-integrated learning opportunities. The Program has long-term benefits for students, helping them gain the necessary skills, education, and real-life work experience to transition successfully into the workforce.

Background

• The Student Work Placement (SWP) Program was launched in 2017 and helps students to: gain meaningful work experiences; develop their skills by reinforcing learning in the classroom; and build connections with employers in their fields of study. The Program helps students to better prepare for work, employers to hire and develop new recruits, and post-secondary institutions to keep pace with changing on-the-job expectations.
• Through Budget 2019, the Government launched the Innovative Work-Integrated Learning (I-WIL) initiative, as part of the SWP Program. This Program was designed to broaden access to WIL to include various types of experiential learning models that leverage technology (beyond the original SWP Program work placement model).
• Since 2017, the SWP Program, has continued to expand through several successive time-limited investments, far exceeding its original four-year mandate and has supported over 300,000 work-integrated learning opportunities for post-secondary students across all provinces and territories as well as in the majority of sectors of the Canadian economy.
• For this year (2025 to 2026), the Program will support the creation of over 40,000 opportunities, comprised of 20,000 work placements and 20,000 I-WIL opportunities. In addition, the Program has set a target of at least 25% of placements going to under-represented and first-year students.
• Budget 2025 proposed to provide 635.2 million over three years of the SWP Program. In 2026 to 2027, the program will support around 55,000 work-integrated learning opportunities for post-secondary students.

Key facts

• In September 2025, youth (15 to 24) had an unemployment rate of 14.7%, above the pre-pandemic average of 10.8% (2017 to 2019).
• For Summer 2025, the unemployment rate for returning students was at 17.9%, the highest since 2009 (excluding pandemic years).
• New graduates are also having difficulty securing employment - in the first quarter of 2025, the unemployment rate was 11.2% for recent graduates under 25 years old.
• Youth from under-represented groups (Indigenous youth, continue to face significantly higher rates of unemployment than their peers.
• To date, the Program has supported over 300,000 work-integrated learning opportunities for post-secondary students across all provinces and territories, with over 45% of all opportunities for students that self-identified as being part of a designated under-represented group.
• The program has engaged over 34,000 employers, predominately micro, small and medium-sized enterprises, in sectors including professional, scientific and technical services; information and cultural industries; manufacturing; health care and social assistance; waste management; transportation and utilities. The Program has also supported students from over 420 post-secondary education institutions in all Canadian provinces and territories.
• Higher earnings and improved labour market outcomes are associated with work-integrated learning participation: 70% of students with work-integrated learning opportunities were able to find a job after graduation and earn on average 7% more than those who did not participate in work-integrated learning.
• For thousands of Canadian college, university, polytechnic, and CEGEP students, work-integrated learning programs help to bring together academic learning and applied work experience. These opportunities can include but are not limited to co-ops, internships, or mentorship programs, as well as other non-traditional experiences like hackathons, boot camps, and micro-internships.

Key messages

• The Government of Canada recognizes the importance of helping students develop work-ready skills through hands-on experience and training. This Program puts students on a path to meaningful, well-paying careers.
• This is why the Government will support around 55,000 work-integrated learning opportunities for post-secondary students through the Student Work Placement Program in 2026 to 2027.
• The Student Work Placement Program is a key government initiative that empowers post-secondary students to develop work-ready skills, helps employers to recruit and develop talent, and post-secondary institutions to adapt to changing labour market needs. These opportunities help students gain the necessary skills, education, and real-life work experience in sectors in demand, to transition successfully into the workforce.

14. Youth Employment and Skills Strategy Program

Issue

• Investing in youth, their skills and experience through the Youth Employment and Skills Strategy (YESS) helps youth on their path to meaningful, well-paying careers. In 2025 to 2026, the YESS will aim to support around 20,000 youth facing employment barriers annually.
• Recent evidence shows that the YESS has long-term benefits for youth employment, earnings, and reduces reliance on social supports.

Background

• The Youth Employment and Skills Strategy is a horizontal Government of Canada initiative led by ESDC and delivered through a network of 12 federal departments, agencies, and Crown corporations. It supports youth (aged 15 to 30) in overcoming barriers to employment, including those furthest from opportunity (for example, those not in education, employment or training (NEET) to become job ready.
• Employment and Social Development Canada is responsible for two programs under the Strategy:
  • the ESDC Youth Employment and Skills Strategy (YESS) Program - supports youth (aged 15 to 30) facing barriers to employment (for example, Indigenous, racialized, newcomer youth, youth with disabilities, living in rural, remote areas and in OLMCs) in gaining the skills and employment opportunities needed to succeed in the labour market. This includes training, employability, work placements, mentorship, coaching and wrap around supports (for example, transportation, mental health counselling), individually tailored to youth needs. Supports allow to connect youth with opportunities in a range of sectors (IT, agriculture, forestry, environmental, housing, etc.)
  • Canada Summer Jobs (CSJ) - provides paid summer work experiences to youth (aged 15 to 30) through wage subsidies to employers from not-for-profit organizations, the public sector, and private sector organizations with 50 or fewer full-time employees. The program is responsive to local and national labour market priorities.
• In 2024, the Government had provided an additional $150.7 million for YESS to support 20,000 youth in gaining skills and work experience opportunities in 2025 to 2026, including over 7,000 through the ESDC-delivered YESS Program.

Key facts

• In October 2025, youth (15 to 24) had an unemployment rate of 14.1%, above the pre-pandemic average of 10.8% (2017 to 2019).
• For Summer 2025, the unemployment rate for returning students was at 17.9%, the highest since 2009 (excluding pandemic years).
• Teenagers (15 to 19) have faced difficulty with nearly 1 in 5 teens unable to find a job (Desjardins Economic View Point, "Why has the Youth Unemployment Rate Increased by so much, so fast?").
• Youth from under-represented groups (Indigenous youth), continue to face significantly higher rates of unemployment than their peers.
• Since 2023, there has been a notable increase in the number of youth not in education, education or training (NEET).
• Budget 2025 proposed to maintain support to 20,000 youth facing employment barriers annually through the YESS Program. An investment of $307.9 million over two years, starting in 2026 to 2027 will continue to support quality opportunities for youth to develop the confidence and skills they need to succeed.
• Recent evidence demonstrates the effectiveness of the YESS Program in improving long-term employment outcomes for youth:
  • the 2024 horizontal evaluation of the YESS found that youth who participated in the YESS Program experienced higher wages, lower reliance on income support, and stronger workforce retention.

Key messages

• The Government of Canada recognizes the challenges youth are facing in the labour market and the importance of creating opportunities for young Canadians to connect with jobs and skills development opportunities to launch their professional lives.
• This is why Budget 2025 announced additional investments to support approximately 175,000 youth in accessing employment and skills opportunities through Canada Summer Jobs, the Youth Employment and Skills strategy and the Student Work Placement Program in 2026 to 2027.
• This includes an investment of $307M over two years to provide training, employment, wrap around supports to approximately 20,000 youth facing barriers to employment under the Youth Employment and Skills Strategy.
• The Youth Employment and Skills Strategy is designed to support youth furthest from opportunity, including those not in employment, education or training (NEET youth), to gain work-related skills and experiences to become job ready. The Program allows youth to successfully transition into diverse sectors of the labour market. Evidence shows that youth who participate in the Youth Employment and Skills Strategy Program have improved employment outcomes, including higher long-term earnings compared to non-participants.

D. Families, children and youth

1. Youth Employment Situation and Key Drivers

Issue

The labour market for youth has been deteriorating over the last year, with a surge in the youth population coupled with low economic growth seen as the main factors explaining the situation.

Background

• Labour market outcomes have been worsening for youth since early 2023. Their employment rate has been trending down, while their unemployment rate has been on a strong upward trend.
• While typically higher, the youth unemployment rate generally follows a similar pattern to core-aged adults. On average, the youth unemployment rate has been 2.1 times that of core-aged adults. However, recently, the ratio of the youth-to-adult unemployment rate reached 2.4.
• Canada experienced high population growth in recent years with the youth population growing the fastest and at a rate that far outpaced employment growth.
• U.S. tariffs on imports from Canada and other countries have created global uncertainty and weakened business and consumer confidence, stalling labour demand in some industries, particularly where youth typically find employment.

Key facts

• In October 2025, the unemployment rate for youth aged 15 to 24 stood at 14.1%. The rate has been on an upward trend since early 2023 and sits above the 2010 to 2019 average (12.7%).
• The youth employment rate was 54.2% in October 2025, the first increase since January. However, the youth employment rate has been trending down since May 2023, remaining 2.8 pp below its historical (2010 to 2019) average (57.0%).
• Between 2022 and 2025, the youth population has increased by 9.1% (+417,000), significantly outpacing the overall population growth of 6.9% (+2,702,000).
  • The growth in the youth population was largely driven by an increase in non-permanent residents, which rose by 42.1% (+252,000) between 2022 and 2025
• In the first ten months of 2025, 2.7 million youth were employed - up 4.2% (or +108,400) from the same period in 2022. Core-aged adult employment, however, grew at a faster rate over this period, rising by 8.2%.
• Over this period, youth employment declined in wholesale and retail trade (-39,200 or -5.3%) and was little changed in accommodation and food services (-4,900 or -1.1%) - the top 2 industries where youth typically find work.
• The unemployment rate for students returning to school in the fall has increased each summer since 2022. In 2025, the average unemployment rate for returning students aged 15 to 24 was 17.9% (compared to 11.6% for non-students). This was the highest rate since the summer of 2009 (18.0%), apart from the pandemic.
• See table below for ESDC estimated job openings in the construction industry.

Source: ESDC, 2024 COPS projections

Key messages

• Tougher labour market conditions have created widespread difficulties for youth.
• Although population growth has slowed over the past year, the youth population remains significantly larger than it was prior to 2022, bolstered by large numbers of non-permanent residents.
• While most youth are not directly employed in industries targeted by U.S. tariffs the new trade environment has created uncertainty, stalling labour demand in industries where youth typically find employment.
• The combined impacts of muted labour demand in youth-employing industries with the surge in the youth population have pushed the youth employment rate down and the unemployment rate up significantly.
• While there is still high economic uncertainty related to global trade and the global economy, there are still sectors with high demand, such as construction. My department estimates that over the 2024 to 2033 period, more than 400,000 construction workers will retire, providing excellent job prospects for young Canadians interested in skilled trade jobs.
• In addition, this government announced new nation-building infrastructure projects that will transform and connect Canada's economy. For example, on November 13, PM Carney announced $56 billion in new investments to build our economy, expected to support 68,000 jobs across the country, which will benefit youth, among others, in the skilled trades.
• ESDC has in place several programs to support Canadians, including youth, to find jobs aligned with their experience and skills.
• Budget 2025 is proposing to further tackle youth unemployment by expanding access to skills training, work experience, and career development opportunities. These efforts aim to help young Canadians build meaningful careers, gain confidence in the labour market, and contribute to a stronger economy, including:
  • $594.7 million over two years, starting in 2026 to 2027, to ESDC for Canada Summer Jobs to support around 100,000 summer jobs in summer 2026.
  • $307.9 million over two years, starting in 2026 to 2027, for the horizontal Youth Employment and Skills Strategy to provide employment, training, and wraparound supports (for example, mentorship, transportation, mental health counselling) to around 20,000 youth facing employment barriers annually.
  • $635.2 million over three years, starting in 2026 to 2027, to ESDC for the Student Work Placement Program to support around 55,000 work-integrated learning opportunities for post-secondary students in 2026 to 2027.
  • $40 million over two years, starting in 2026 to 2027, to ESDC, to create a Youth Climate Corps to provide paid skills training for young Canadians.

2. Background on Child Poverty in Canada

• Child poverty in 2023 was 11.8%, compared to the overall poverty rate of 10.9%^{Footnote 1}
  • Approximately 886,000 children lived in poverty in 2023.
• Child poverty is considerably higher amongst female lone-parent families.
  • The poverty rate for children living in female lone-parent families is 30.4% (291,000 children), compared to 8.7% for children in couple families.
• Child poverty has trended downward since 2015, with some variability along the way.
  • Between 2015 (16.3%) and 2019 (10.4%), child poverty rates declined by 42.3%, largely as a result of measures aimed at reducing poverty, including the introduction of the Canada Child Benefit in 2016.
  • From 2020-2023, however, child poverty increased across all households. Circumstances pushing up child poverty from record-low rates in 2020 (5.1%) have largely been broader economic factors:
    • the phasing out of pandemic benefits impacted the disposable incomes of some families with children significantly
    • high rates of inflation between 2021 and 2023 drove up the cost of food, housing, transportation and other essentials and led to affordability challenges for many individuals and families, particularly those below or close to the poverty line
    • real wages were lagging behind price increases, especially for the lowest income earners
  • Despite this recent increase, child poverty remains 31.1% lower than it was in 2015.
• Poverty is multi-dimensional, with important interactions and impacts with food insecurity, housing need, and health.
  • Children facing poverty experience other dimensions of inequities, including: access to safe housing and communities; affordable nutritious food; opportunities for early childhood care and education; access to recreation, sport, social and cultural activities; and access to a primary health care provider.
• Key Government of Canada measures that mitigate child poverty and its effects include:
  • Canada Child Benefit (CCB): Provides targeted financial support to over 3.5 million families and over 6 million children, easing economic pressures on families
  • investments in early learning and child care (ELCC): Supports workforce participation - especially for women - which helps with the cost of raising children under the age of 18 years of age; and enables children and their families to participate more fully in society with better life-long social and economic outcomes
  • National School Food Program: improves affordability for households; mitigates food insecurity; and increases life-long inclusion and opportunity through health, education, and labour market outcomes
  • parental and caregiving EI benefits help support parents and families by partial income replacement during the early stages of childhood and through illnesses
  • Canadian Dental Care Plan: Provides coverage to uninsured Canadians with annual family income less than $90,000
• Recent Budget 2025 measures could help reduce child poverty and improve wellbeing:
  • Automatic Federal Benefits from the Canada Revenue Agency, including Canada Child Benefit and the GST/HST credit
  • making National School Food Program permanent, which will continue to provide meals for up to 400,000 children
  • build Canada Homes primarily focused on non-market housing, supporting a mix of income needs

Appendix: Child Poverty Charts and Additional Background

• Child poverty is 11.8% compared to the overall poverty rate of 10.9%.
• Child poverty in female lone-parent families (30.4%) is much higher than in a couple families with children (8.7%).

Text description chart 1

Poverty rates by demographic and household type

Demographic	Poverty rate 2023 (%) (2023 MBM Base)
All persons	10.9%
Children under 18 years	11.8%
Children under 18 years in couple families	8.7%
Children in female lone-parent families	30.4%

• As with overall poverty, child poverty improved substantially between 2015 and 2019; decreased sharply in 2020 (largely from pandemic income-support responses); and has subsequently increased. Despite the recent variability, child poverty is still 31.1% lower compared to 2015.

Text description chart 2

MBM poverty index between 2015 to 2023

Demographic	2015	2016	2017	2018	2019	2020	2021	2022	2023
Children	100	85.3	71.8	65.0	57.7	28.8	39.3	60.7	68.9
All persons	100	89.0	82.1	77.2	71.0	44.1	51.0	68.3	72.3

• Child poverty also varies by province and territory ranging from 6.1% to 16.1%.
  • Poverty rates in the territories (Yukon 11.1%], Northwest Territories 20.6% and Nunavut 41.4%) are measured using the Norther Market Basket Measure (MBM-N) which is similar to the MBM but makes adjustments for Northern living.

Text description chart 3

Poverty rate for all persons and children by province

Canada and provinces	All persons (%)	Children under 18 years (%)
Canada	10.9	11.8
Newfoundland and Labrador	10.9	13.7
Prince Edward Island	10.5	12.3
Nova Scotia	11.5	13.4
New Brunswick	11.3	14.5
Quebec	7.6	6.1
Ontario	12.3	14.1
Manitoba	12.1	14.8
Saskatchewan	13.2	16.1
Alberta	9.1	10.5
British Columbia	12.5	13.5

3. Food Bank and Poverty Report

Issue

Food Banks Canada's 2025 'Poverty Report Card' gives the Government of Canada's poverty reduction efforts a D grade, citing negative trends in poverty, food insecurity, and youth unemployment.

Background

• Food Banks Canada's annual "Poverty Report Card" is a tool that has tracked and compared poverty and related indicators at the federal level since 2023.
• The 2025 Report Card emphasizes that poverty rates will likely not improve unless key contributing factors such as the need for affordable housing and inadequacies in the social security system are addressed. It provides policy recommendations including that the federal government commit to reducing food insecurity in Canada by 50% by 2030, enhance the Canada Child Benefit, and bolster the Canada Disability Benefit. These policy recommendations and others intended to tackle the root causes of poverty, make life more affordable, and address northern food insecurity are also included in Food Banks Canada's 2025 HungerCount report.
• Food Banks Canada notes that recent investments in housing could help decrease the number of Canadians struggling with food insecurity.
• The Government of Canada's released Opportunity for All - Canada's First Poverty Reduction Strategy (the Strategy) in 2018. The Strategy established Canada's Official Poverty Line, which is based on the cost of a "basket" of goods and services that individuals and families require to meet their basic needs and achieve a modest standard of living in communities across the country. In addition, it set concrete poverty reduction targets: a 20 percent reduction in poverty by 2020 and a 50 percent reduction in poverty by 2030. The Strategy recognizes that poverty and food security are intricately linked.
• Recent budgets have introduced several measures that will help to reduce poverty and make life more affordable, including significant investments in:
  • affordable childcare, which is saving some families thousands of dollars per year and freeing up money for other essentials
  • school food for children, with estimates suggesting families could save around $800 annually for a two-child family with program participation, and
  • the new Canada Disability Benefit, which is expected to lift 25,000 Canadians out of poverty annually and to improve food security by helping people with disabilities meet their basic needs, including food

Key facts

• Results from the 2023 Canadian Income Survey (CIS) show that between 2015 and 2023, close to 1.1 million Canadians have been lifted out of poverty, including 313,000 children. This represents a 30% decrease in the rate of poverty compared to 2015, the baseline year for Canada's legislated poverty reduction targets. However, the overall poverty rate in Canada increased in 2023 relative to 2022 (10.2% versus 9.9%).
• The 2023 CIS reports 25.5% of people in the provinces and 37.4% of people in the territories experienced food insecurity in 2023, up from 22.9% in 2022. Nunavut (58.1%) had the highest rate, followed by the Northwest Territories (34.2%) and Yukon (21.8%).
• Some groups, including unattached adults 18-64 years (31.4%), lone-parent families (26.5% for female-led), Indigenous people (17.4%), recent immigrants (15.3%), visible minorities (14.0%), and persons with a disability (12.0%) are more likely to experience poverty. These groups are also at higher risk of food insecurity; 31.7% of unattached adults, 52.1% of female-led lone-parent families, 34.4% of recent immigrants, 38.6% of Indigenous people, and 32.2% of visible minorities were food insecure in 2023.^{Footnote 2}
• Food Banks Canada's '2025 Hunger Count Report' notes there were nearly 2.2 million visits to food banks in March 2025 - the highest number in recorded history. This represents a 5.2% increase compared to 2024, and a 99.4% increase compared to 2019.
• Since 2021, the overall Consumer Price Index has increased by over 18%. Shelter, food, and transportation have increased by 26%, 25%, and nearly 20%, respectively. The rising cost of essentials costs have exceeded average wage growth and align with the increase in food bank usage during this period.

Key messages

• The Government is committed to building a better future for all Canadians and taking real action to bring down costs and make life more affordable. The Government recognizes that food insecurity is affecting many Canadians and that effective solutions are needed.
• The Government has made significant investments in social programs and income supports such as the National School Food Program, the Canada-wide Early Learning and Child Care system, the Canada Child Benefit, and the new Canada Disability Benefit. These initiatives help to make life more affordable for Canadians, reducing financial burdens and improving access to basic needs.
• The Government recently passed legislation providing tax relief for nearly 22 million Canadians. This will save up to $840 a year in 2026 for two-income families.
• The Government also recently launched Build Canada Homes, a new federal agency that will build and finance affordable housing at scale to help lower the financial burden on low-income households, allowing them to spend more of their budget on nutritious food.
• These actions are helping Canadians to get ahead.
• The Government of Canada is committed to continuing work with provinces, territories, and Indigenous partners to provide support to Canadians who need it most.

If pressed (on poverty reduction or food insecurity target)

• The Government will continue to support Canadians currently struggling with higher costs of living. The Government remains committed to meeting its 2030 poverty reduction target.
• Food insecurity is already tracked as a multidimensional indicator of poverty as part of Canada's Poverty Reduction Strategy's dashboard of indicators and reported on annually.

4. Key Facts and Figures - Poverty and Food Security

Poverty

• Results from the 2023 Canadian Income Survey (CIS) show that between 2015 and 2023, close to 1.1 million Canadians have been lifted out of poverty, including 313,000 children.
  • This represents a 30% decrease in the rate of poverty compared to 2015, the baseline year for Canada's legislated poverty reduction targets. However, the overall poverty rate in Canada increased in 2023 relative to 2022 (10.2% versus 9.9%).
• The 2023 CIS reports 25.5% of people in the provinces and 37.4% of people in the territories experienced food insecurity in 2023, up from 22.9% in 2022. Nunavut (58.1%) had the highest rate, followed by the Northwest Territories (34.2%) and Yukon (21.8%).
• Some groups, including unattached adults 18-64 years (31.4%), lone-parent families (26.5% for female-led), Indigenous people (17.4%), recent immigrants (15.3%), visible minorities (14.0%), and persons with a disability (12.0%) are more likely to experience poverty.
• Since 2021, the overall Consumer Price Index has increased by over 18%.
  • Shelter, food, and transportation have increased by 26%, 25%, and nearly 20%, respectively.
  • The rising cost of essentials costs have exceeded average wage growth and align with the increase in food bank usage during this period.
• Food Banks Canada's annual "Poverty Report Card" is a tool that has tracked and compared poverty and related indicators at the federal level since 2023.
  • The 2025 Report Card emphasizes that poverty rates will likely not improve unless key contributing factors such as the need for affordable housing and inadequacies in the social security system are addressed.
  • It provides policy recommendations including that the federal government commit to reducing food insecurity in Canada by 50% by 2030, enhance the Canada Child Benefit, and bolster the Canada Disability Benefit.
  • These policy recommendations and others intended to tackle the root causes of poverty, make life more affordable, and address northern food insecurity are also included in Food Banks Canada's 2025 HungerCount report.

Food Security and Food Bank Usage

• Food Banks Canada's '2025 Hunger Count Report' notes there were nearly 2.2 million visits to food banks in March 2025 - the highest number in recorded history. This represents a 5.2% increase compared to 2024, and a 99.4% increase compared to 2019.
  • The number of children who visit food banks each month in Canada: 711,770 - an increase of nearly 340,000 monthly visits compared to six years ago.
  • The proportion of food bank clients that are children (under 18 years) is 33%, which is the same as 2024.
• Some groups are at higher risk of food insecurity; 31.7% of unattached adults, 52.1% of female-led lone-parent families, 34.4% of recent immigrants, 38.6% of Indigenous people, and 32.2% of visible minorities were food insecure in 2023.

5. National School Food Policy and Program

Issue

Commitment to implement the National School Food Program.

Background

• On April 1, 2024, the Government of Canada announced an investment of $1 billion over 5 years in Budget 2024, to establish a National School Food Program. The National School Food Program is supporting provinces, territories, and Indigenous partners to enhance and expand access to school food programs across Canada, guided by the National School Food Policy
• As of March 2025, the Government of Canada signed 3 year agreements with all 13 provinces and territories under the National School Food Program
• As announced on November 4, 2025, Budget 2025 proposes to introduce legislation and provide $216.6 million per year, starting in 2029 to 2030, to Employment and Social Development Canada, Indigenous Services Canada, and Crown-Indigenous Relations and Northern Affairs Canada, to make the National School Food Program permanent. This will ensure kids get nutritious meals at school, while bringing down costs for parents
• The National School Food Program is providing real support to children and families across Canada and will enable up to 400,000 children each year to participate in school food programs within their communities. For a participating family with 2 children in school, this program can result in annual savings of $800 or more
• The funding announced also includes investments for First Nations, Inuit, and Métis governing bodies, including First Nations on-reserve and Modern Treaty and Self-government Agreement holders, many of whom experience some of the highest rates of food insecurity in Canada
• The National School Food Policy, released in June 2024, outlines the federal government's long-term vision for the delivery of school food programming in Canada. The Policy guides the work with provinces, territories, and Indigenous partners on National School Food Program implementation and is based on advancing shared national objectives for nutritious, accessible, flexible, and accountable school food programming

Key facts

• School food programming has been shown to improve academic performance, support positive health outcomes and health equity, and foster connections with culture and traditional food systems, all of which have positive immediate and lifelong impacts for children and their families
• Prior to the federal investment, Canada was the only G7 country without a national school food program
• Canada had approximately 6.6 million school-aged children (ages 4 to 18) in 2024 according to Statistics Canada population estimates
• According to the 2023 Canadian Income Survey released on May 1, 2025:
  • 802,000 children (persons under 18) were living below the poverty line
  • food insecurity among children and youth in Canada's provinces increased to 32.9% in 2023, up from 28.4% in 2022, with 24.7% of children experiencing moderate or severe food insecurity
• Provinces and territories have jurisdiction over health and education and are already actively supporting school food programming in their jurisdictions. Federal funding through the National School Food Program builds on these existing efforts by working collaboratively with provincial and territorial governments. Given variation in the current state of school food programs within each jurisdiction, alongside the diversity in regional priorities and needs, provinces and territories have the flexibility to decide how best to allocate federal school food funding

Key messages

• The Government is committed to bringing down costs and making life more affordable for families across Canada. Children can't learn on an empty stomach. School food programs boost our children's health and help them reach their full potential while also supporting their families through lower grocery bills
• That is why, through the National School Food Program, the Government of Canada is investing $1 billion over 5 years to help provinces and territories and Indigenous partners to enhance and expand school food programs across Canada
• The National School Food Program is providing real support to children and families across Canada. This program will enable up to 400,000 children each year to participate in school food programs. At the same time, for a participating family with 2 children in school, this program can result in annual savings of $800
• As of March 2025, the Government of Canada signed bilateral agreements with all provinces and territories on the National School Food Program. This school year, all provinces and territories will invest funding provided through these agreements to support children across Canada
• That is why, on October 10, the Prime Minister announced that the program will be made permanent, and was included in Budget 2025. This is a generational investment that will help ensure kids get nutritious meals at school, while bringing down costs for parents
• The investment supports the vision, principles and objectives for school food programs set out in the National School Food Policy, including ensuring access to school meals without stigma or barriers, fostering healthy practices, and strengthening connections with the environment, culture, and local food systems
• The National School Food Program is part of the federal government's work to build a more affordable Canada. This includes the Canada Child Benefit and other investments made through targeted social programs and income supplements, helping to bring down costs for families so they can get ahead

6. Supporting Quality of Life in Canada

The mission

• Employment and Social Development Canada (ESDC) works to build a stronger and more inclusive country by supporting Canadians to lead productive, rewarding lives and improving their quality of life.
• According to the Organisation for Economic Co-operation and Development (OECD), Canada has ranked above average in life satisfaction since 2010. Most recently, Canadians gave Canada a life satisfaction score of 7 out of 10 which is higher than the OECD average of 6.7.

(Sources: OECD How's Life? Reports, 2010-2023.)

Affordability and Economic Context

While inflation has significantly eased, ongoing affordability challenges have negatively impacted quality of life. These issues are affecting all Canadians, and some groups face even more challenges in meeting their financial needs. This can also vary by region.

By August 2025, shelter prices had increased by 22.2% compared to four years prior.

(Source: Statistics Canada Table 18-10-0004-01.)

45% of Canadians were very concerned about their ability to afford housing due to rising housing costs or increasing rent in 2024, and 36% of Canadians with a housing challenge reported high life satisfaction, compared to 70% of those without a housing challenge.

(Source: Housing challenges related to affordability, adequacy, condition and discrimination, August 2 to September 15, 2024.)

By August 2025, food prices had increased by 24.6% compared to four years prior.

(Source: Statistics Canada Table 18-10-0004-01.)

Food insecurity affects many Canadians, including over one third of persons in lone-parent families.

Text description diagram 1

Percentage of persons experiencing moderate to severe food insecurity, 2023

Group	Percentage
All persons	19.1%
Persons in couple families with children	20.5%
Persons in lone-parent families	39.5%
Unattached individuals (<65) (Note: Person not in an economic family)	25.8%
Unattached individuals (65+) (Note: Person not in an economic family)	10.4%

(Source Diagram 1: Statistics Canada Table 13-10-0834-01.)

Text description diagram 2

Percentage of persons reporting difficulty for their household to meet their financial needs, Q3 2023

Group	Percentage
Immigrants	39.4%
Non-immigrants	30.8%
Persons with a disability	38.3%
Persons without a disability	28.5%
Visible minority	40.6%
Not a visible minority	30.5%
Indigenous identity (Note: Data does not include those living on reserve or in the territories)	40.3%
Non-Indigenous identity	33.0%
Persons living in urban areas	33.6%
Persons living in rural areas	30.7%
Youth (15 to 24)	25.6%
Age 25 to 54	39.8%
Seniors (65+)	24.1%

(Source Diagram 2: Statistics Canada Table 45-10-0087-01.)

Income Inequality and Poverty Persist

The inability to afford basic necessities can put individuals and families in economic hardship and negatively impact their quality of life. Rising affordability challenges and the widening income gap in Canada are creating barriers for individuals to improve their economic situation and achieve upward social mobility.

Text description diagram 3

Poverty rate overall and by population group, 2023

Group	Poverty Rate
Total population	10.2%
Seniors	5.0%
Children (< 18)	10.7%
Women	10.2%
Persons with a disability	12.5%
Visible minority	14.0%
Indigenous population (Note: Data does not include those living on reserve)	17.5%
Unattached individuals (Note: Persons not in an economic family)	25.7%

(Sources Diagram 3: Statistics Canada Tables 11-10-0093-01, 11-10-0090-01, 11-10-0135-01.)

Text description diagram 4

Change in annual disposable income (after tax) per household by income quintile, 2019 to 2024

Income quintile	Change in annual disposable income from 2019 to 2024
All households	$19,022
Lowest income quintile	$4,877
Second income quintile	$9,805
Third income quintile	$12,100
Fourth income quintile	$20,505
Highest income quintile	$47,829

(Source Diagram 4: Statistics Canada Table 36-10-0587-01.)

Life Satisfaction and Optimism Decline

Canadians' life satisfaction and hope for the future has declined as economic pressures have increased.

46.1% of Canadians reported high life satisfaction in the second quarter of 2025, down from 51.4% 3 years prior.

(Source: Statistics Canada Table 13-10-0844-01.)

Text description diagram 5

Percentage of Canadians who report having a hopeful view of the future ''always or often''

Quarter	Percentage
Q3 2021	65.5%
Q4 2021	63.1%
Q1 2022	63.8%
Q2 2022	62.6%
Q3 2022	64.6%
Q4 2022	57.3%
Q1 2023	n/a
Q2 2023	56.8%
Q3 2024	n/a
Q4 2024	n/a
Q1 2024	59.9%
Q2 2024	53.0%
Q3 2024	57.2%
Q4 2024	56.3%
Q1 2025	57.8%
Q2 2025	55.9%

(Source Diagram 5: Statistics Canada Table 13-10-0847-01.)

Text description diagram 6

Percentage of persons reporting high life satisfaction, Q2 2025

Group	Percentage
Immigrants	43.5%
Non-immigrants	47.4%
Persons with a disability	36.8%
Persons without a disability	53.3%
Visible minority	40.5%
Not a visible minority	48.4%
Indigenous identity (Note: Data does not include those living on reserve or in the territories)	38.3%
Non-Indigenous identity	46.3%
Persons living in urban areas	44.8%
Persons living in rural areas	55.0%
Youth (15 to 24)	46.0%
Age 25 to 54	37.8%
Seniors (65+)	60.5%

(Source Diagram 6: Statistics Canada Table 13-10-0844-01)

29% of those with financial difficulties had high life satisfaction throughout 2021 to 2024, compared to 59% of those who did not have financial difficulties.

(Source: Charting changes in Canadians' mental and financial well-being, 2021 to 2024)

Uncertainty surrounding the economic impacts of ongoing political and trade tension risk putting downward pressure on Canadians' quality of life.

Supporting All Canadians

ESDC delivers programs and services to Canadians throughout every stage of their lives. Several of ESDC's social protection measures support more vulnerable groups, help address affordability pressures in Canada and support social inclusion, which drive growth and can lead to a more resilient economy and cohesive society.

Children and Families

Support for families is enabling choice and having positive impact, including decreasing child poverty.

The number of single-parent families in Canada has more than doubled in the last 30 years.

16.4% of all families in Canada were single-parent in 2021, mostly led by women.

29.3% of children in female-led lone-parent families lived below the poverty line in 2023, almost four times the rate of those in couple families (7.5%).

(Sources: A portrait of Canada's families in 2021, Statistics Canada Table 11-10-0135-01.)

ESDC supports children and families through key income and social programs such as:

• Canada Child Benefit
• Early Learning and Child Care
• Child Disability Benefit
• National School Food Program
• Canada Learning Bond
• Canada Education Savings Grant
• Social Development Partnerships Program - Children and Families

Youth and Young Adults

Youth often face difficulties entering the labour market. They are more likely to be unemployed, and when employed, they are more likely to be in low-wage and unstable jobs.

14.5% of youth aged 15 to 24 were unemployed in August 2025, more than double the rate for those aged 25 to 54 (6.1%).

11.5% of youth aged 15-29 were neither in employment, education or training in 2025. The number of youth not in employment, education or training is approximately 914,000 in 2025, an increase of 28% (201,800) since 2023.

(Sources: Statistics Canada Table 14-10-0287-02, Question Period Note: Employment and Skills Support for Canada's Youth (Jun 12th 2025, Ref: FCY_JUN2025_005))

ESDC helps youth to kickstart their careers by providing financial aid, improving access to post-secondary education, supporting employment opportunities and apprenticeships, and connecting job-seekers with employers.

List of ESDC programs supporting youth and young adults:

• Canada Student Grants and Loans
• Supports for Student Learning Program
• Youth Employment and Skills Strategy
• Canadian Apprenticeship Strategy

Working-Age Adults

Unemployed and unattached working-age (18 to 64 years of age) persons face significant economic vulnerabilities.

46% of "workers in poverty" -those who have substantial employment -were unattached individuals in 2019.

47% of working-age Canadians living in poverty were employed in 2022.

(Sources: CIS 2019 and 2022 internal calculations.)

ESDC assists working-age adults primarily through key income supports to help them meet their basic needs.

List of ESDC programs supporting working-age adults:

• Employment Insurance
• Canada Workers Benefit
• Foreign Credential Recognition Program
• Skills and apprenticeship programs

Older Adults and Seniors

In 2023, seniors had the lowest poverty rate among all age groups, whereas the rate for those aged 18 to 64 was more than double.

However, income security remains a concern as some households have not managed to build robust financial safety nets.

29% of Canadians in pre-retirement (aged 55 to 64) have no money set aside, for retirement or otherwise.

(Sources: Statistics Canada Table 11-10-0135-01, 2024 Canadian Retirement Survey by Healthcare of Ontario Pension Plan.)

ESDC programs enable seniors to live with dignity and security by providing crucial income stability and services to age comfortably at home, and by supporting local projects to improve quality of life.

List of ESDC programs supporting older adults and seniors:

• Old Age Security
• Guaranteed Income Supplement
• Canada Pension Plan
• New Horizons for Seniors Program
• Age Well at Home Initiative

Persons with Disabilities

Overall, persons with disabilities face greater challenges in finding employment, tend to have lower incomes, and are more likely to experience poverty than those without disabilities.

Text description diagram 7

Unemployment rate by disability status, 2024

Disability status	Unemployment rate
No disability	5.6%
Mild disability	7.0%
Moderate disability	8.6%
Severe disability	9.5%
Very severe disability	14.9%

(Source Diagram 7: Statistics Canada Table 14-10-0478-01.)

The average hourly wage for individuals with disabilities was 6.2% (or $2.22 per hour) lower than for those without disabilities in 2024.

(Source: Statistics Canada Table 14-10-0478-01.)

ESDC supports persons with disabilities by providing financial security, partial income replacement for those who work, and funding for communities and organizations who promote accessibility.

List of ESDC programs supporting persons with disability:

• Canada Disability Benefit
• Canada Disability Savings Program
• Canada Pension Plan disability benefits
• Enabling Accessibility Fund
• Social Development Partnerships Program - Disability

Indigenous Peoples

Indigenous Peoples face disproportionate barriers which have lasting impacts on their ability to accumulate wealth and achieve economic stability.

9.9% of Indigenous people were unemployed in 2024, compared to 6.2% for non-Indigenous people. (Note: data does not include those living on reserve or in the territories.)

The average hourly wage for Indigenous people living off-reserve was 10.4% (or $3.65 per hour) lower than for non-Indigenous people in 2024.

(Sources: Statistics Canada Tables 14-10-0365-01, 14-10-0418-01.)

ESDC programs promote high-quality, culturally specific early learning and child care designed for and with Indigenous communities. They also help Indigenous people improve their skills and find employment.

List of ESDC programs supporting Indigenous people:

• Indigenous Early Learning and Child Care
• Indigenous Skills and Employment Training Program
• Skills and Partnership Fund

Looking Forward

• ESDC's existing and new social protection measures will continue to improve affordability, reduce poverty, and promote income equality, which are linked to improving health, wellbeing and social cohesion.
• The demand for ESDC's programs will likely rise as Canadians face uncertain and challenging times, driven by factors like the implementation of tariffs and the effects of climate change, which risk further lowering financial wellbeing and security.

7. Canada Summer Jobs

Issue

Investing in youth, their skills and experience through the Canada Summer Jobs program helps youth on their path to meaningful, well-paying careers. In 2026, Canada Summer Jobs will aim to support around 100,000 job opportunities for youth. Recent evidence shows that the program has long-term benefits for youth employment, earnings, and reduces reliance on social supports.

Background

• Canada Summer Jobs, delivered by ESDC under the Youth Employment and Skills Strategy, provides wage subsidies to employers from not-for-profit organizations, the public sector, and private sector organizations with 50 or fewer full-time employees, to create quality summer employment opportunities for youth aged 15-30.
• For many young Canadians, CSJ is a pivotal first job experience that helps them gain on-the-job skills and work experience to prepare for their entry into the labour market and make future career choices. The program is responsive to labour market needs at the national and local level.
• Since 2019, YESS, including CSJ, has benefitted from a series of funding enhancements, including historic investments during the pandemic. At its peak in 2021 to 2022, CSJ provided 120,000 job opportunities for youth during the summer months and since 2023, the program has funded over 70,000 job opportunities per year.
  • Budget 2024 allocated an additional $200.5 million for CSJ to create 70,000 job opportunities in summer 2025, with a targeted focus on sectors facing critical labour shortages, such as housing construction.
  • In response to the rise in youth unemployment, in June 2025, the Government reallocated $25M in Canada Summer Jobs to support an additional 6,000 job opportunities, on top of the 70,000 jobs already announced, for a total of 76,000 job opportunities for young people as part of CSJ 2025.
• In 2024, the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA) conducted a study on CSJ. The HUMA report highlighted high satisfaction levels for participating youth and employers, and outlined seven key recommendations to improve flexibility, local responsiveness, client service, youth access to benefits, and equitable recruitment of youth.
• The Department responded under three broader themes while still addressing each recommendation individually. Responses focused on:
  • ongoing and future efforts to improve the CSJ program and service delivery with the objective of increasing client satisfaction. This has included optimizing resources to effectively manage high volumes of applications and funding agreements.
  • reviewing program flexibilities for employers and the role of local priorities identified by Members of Parliament, with the objective of better supporting youth facing barriers to employment. This has included improved outreach to youth and targeted communications to better reach youth facing barriers to employment.
  • increasing and improving communication with employers, youth and Canadians with goal of providing them with timely and relevant information about CSJ.

Key facts

• In October 2025, youth (15 to 24) had an unemployment rate of 14.1%, a slight improvement from the September rate of 14.7%, which was above the pre-pandemic average of 10.8% (2017 to 2019)
• For summer 2025, the unemployment rate for returning students was at 17.9%, the highest since 2009 (excluding pandemic years)
• Teenagers (15-19) have faced difficulty with nearly 1 in 5 teens unable to find a job (Desjardins Economic View Point, "Why has the Youth Unemployment Rate Increased by so much, so fast?")
• Youth from under-represented groups (Indigenous youth), continue to face significantly higher rates of unemployment than their peers.
• Since 2023, there has been a notable increase in the number of youth not in education, education or training (NEET).
• Budget 2025 proposed to support around 100,000 jobs for youth in summer 2026. An investment of $594.7 million over two years for CSJ, starting in 2026 to 2027 will continue to support quality jobs for youth over the summer months.
• Since 2019, CSJ has supported more than 530,000 quality job opportunities for youth.
• Recent evidence demonstrates the effectiveness of CSJ in improving long-term employment outcomes for youth:
  • the 2024 independent audit of CSJ by the Office of the Auditor General of Canada found that CSJ successfully connects youth with employers, and that youth who participate in CSJ have better long-term labour market outcomes and earnings compared to non-participants.
    • The audit recommended that the Department continue to improve its efforts to increase the participation of youth facing barriers, better inform stakeholders on the objectives of the program, and focus its results on outcomes. ESDC has already begun to address the recommendations.
  • the 2024 horizontal evaluation of the YESS found that youth who participated in CSJ experienced higher wages, lower reliance on income support, and.

Key messages

• The Government of Canada recognizes the importance of helping young Canadians connect with jobs and skills development opportunities to launch their professional lives.
• This is why Budget 2025 proposes to increase to 100,000 the number of summer jobs for youth through the Canada Summer Jobs program in summer 2026.
• Canada Summer Jobs is a key government initiative designed to help youth (aged 15 to 30) gain summer work experience. The program provides youth with opportunities to develop and improve their skills, and for many, it is a pivotal first job experience.
• The program is responsive to labour market needs at the national and local level. Demand for Canada Summer Jobs remains consistently high, with applications exceeding available funding each year.
• Recent evidence shows that youth who participate in Canada Summer Jobs have improved long-term earnings and experience less reliance on social supports.

8. Office of the Auditor General Audit Performance Audit on Canada Summer Jobs

Issue

• On December 2, 2024, the Office of the Auditor General of Canada (OAG) tabled a performance audit of Canada Summer Jobs (CSJ). The report focused on whether ESDC provided wage subsidies to eligible employers that resulted in youth gaining work experience, including those facing barriers.
• The report found that overall, the CSJ program helped to improve the success of youth in both current and future labour markets. Youth who participated in the program had better long‑term earnings when compared with youth who did not participate in the program.
• The audit also recommended that the Department continue to improve its efforts to increase the participation of youth facing barriers in its program, improve data collection, and strengthen the overall design and delivery to ensure it meets its objectives.

Background

The seven recommendations from the OAG performance audit on the CSJ program are summarized as follows:

• improve data collection and analysis-particularly disaggregated and standardized data-to better understand the long-term socio-economic impacts of the CSJ program and to inform future decisions
• take into consideration provincial and territorial representation of underrepresented youth when setting targets for youth facing barriers
• implement a comprehensive outreach strategy to ensure the program reaches more youth facing barriers
• increase youth survey participation to better assess skill development and employment outcomes and to enable deeper analysis of participant experiences
• collect and analyze data to determine whether the program resulted in job creation
• streamline employer screening and approval processes to enhance efficiency
• strengthen the overall design and delivery of the program to ensure it meets its objectives and better supports youth facing barriers to employment

Key facts

• Canada Summer Jobs is a good program, and it works.
• The OAG audit found that CSJ helped to improve the success of youth in both current and future labour markets. Youth who participated in the program had better long‑term earnings when compared with youth who did not participate in the program.
• The Department has begun to address the seven recommendations made by the OAG:
  • the Department is working with partners to develop a plan for measuring and reporting on the long-term outcomes of the CSJ program, with completion expected by fall 2026.
  • CSJ 2025 incorporated youth labour market information at the provincial and territorial level as part of the analysis to set targets for youth facing barriers.
  • a comprehensive outreach strategy has been developed and implemented to better reach national priority youth groups ahead of the CSJ 2026 launch.
  • the Department is exploring ways to increase youth survey participation to enable more robust analysis of disaggregated data, with final recommendations anticipated in summer 2026.
  • efforts are underway to continue to improve reliable data collection and additional work is also being done to streamline employer processes and improve equitable hiring supports.

Key messages

• The findings of the OAG's fall 2024 performance audit highlight CSJ's success in improving long-term outcomes for youth. Youth participants benefit from better long-term labour market outcomes, including increased earnings.
• The audit calls for the Department to enhance information collection and analysis, do more to help youth facing barriers to gain employment, and make improvements to the overall design and delivery of the program.
• Work is already underway to address these recommendations, which has already resulted in positive changes. For example, the Participant Questionnaire has been streamlined and is now sent directly to youth to encourage higher completion rates. In addition, improvements are being made to support better reaching diverse youth through an outreach strategy and enhancements are being considered to support more robust analysis of CSJ program outcomes.

9. Early Learning and Child Care (ELCC) - OAG Report (Fall 2025)

Issue

This note provides background on the Office of the Auditor General of Canada's (OAG) Performance Audit on Early Learning and Childcare (ELCC).

Background

• The OAG conducted a performance audit on the Canada-wide ELCC system, examining a period from April 1, 2021 until March 31, 2025.
• The audit sought to determine whether Employment and Social Development Canada (ESDC) fulfilled its responsibilities to support ELCC across Canada.
• The OAG concluded that while ESDC ultimately fulfilled its obligations, the Department did not effectively assess certain long-term inclusion objectives, nor was its reporting timely or comprehensive. Specifically, it found:
  • ESDC supported Provincial, Territorial, and Indigenous initiatives to improve ELCC in Canada, and most regulated ELCC became more affordable, at roughly $16.50 per day in March 2024
  • the target of 250,000 new ELCC spaces by March 2026 is at risk of not being met, given only 112,00 spaces were created in the first 3 years
  • ESDC did not collect sufficient information related to its inclusion objectives, and lacked adequate information to assess improvements to Indigenous ELCC
  • ESDC did not provide comprehensive reports, was behind in reporting, and lacked comparable performance information from provinces and territories
  • Provinces and territories have raised concerns relating to the system's financial sustainability
• The Audit Report was tabled in Parliament on October 21, 2025, and made 3 recommendations for ESDC to:
  1. continue to work with Indigenous partners on a co-developed performance measurement plan to report on outcomes for Indigenous ELCC
  2. work with provinces and territories to obtain comparable performance information, including on spaces and unmet demand, inclusion, and financial sustainability
  3. report annually to Canadians about investments made and progress within the Canada-wide system

Key facts

• The Government of Canada committed over $30 billion over 5 years to work with provincial and territorial and Indigenous partners to build a Canada-wide ELCC system. The Canada-wide agreements with provinces and territories intended to reach an average fee of $10-a-day and create 250,000 new regulated spaces by March 2026.
• To date, 8 provinces and territories are delivering regulated ELCC at an average of $10-a-day or less (including Quebec and Yukon, who achieved this prior to the Canada-wide system); all other jurisdictions have reduced fees by at least 50% on average. More than 200,000 new spaces have been announced to be created, and over 125,000 have been created.
• Affordable Canada-wide ELCC is expected to increase mothers' labour force participation, and from 2019 to 2024, the labour force participation rate for core-aged (25 to 54) mothers of young children (0 to 5) rose by 3.3 percent.
• Studies show that for every dollar invested in early childhood education, the broader economy receives between $1.50 to $2.80 in return; this benefit ratio reaches into the double digits for disadvantaged children.

Key messages

• I welcome the report from the Auditor General. I am pleased to see that the report captures the significant progress and savings achieved for families under the Canada-wide ELCC system.
• While the OAG concluded that ESDC fulfilled its responsibilities to support early learning and child care across Canada and that most regulated early learning and child care spaces have become more affordable, the report also includes important findings about where we can work to improve performance measurement and enhance transparency for Canadians.
  • We agree with the report's recommendations to continue co-developing performance measurement plans with Indigenous partners, collect comparable performance information from provinces and territories, and to report annually to Canadians.
• Work continues with our provincial, territorial and Indigenous partners to build and enhance the ELCC system.

If pressed on space creation

• Creating new child care spaces involves complex, multi-year projects that include time-consuming issues such as zoning requirements, environmental impact studies, and workforce challenges.
• Provincial and territorial Action Plans reflect a gradual ramping up of space creation goals, with the largest space expansions planned in the last 2 years of the agreements.
• This approach balances the Canada-wide objectives with the flexibility provinces and territories need to align space creation with their child care priorities and community needs.
• The space creation target of 250,000 spaces is not due to be achieved until March 2026. It is too early to conclude that space achievements will not be met.
• The Government of Canada will continue its work with provinces and territories to create spaces and improve access across the Canada-wide system. To date, provinces and territories have announced plans to create over 200,000 new spaces.

If pressed on inclusion

• Although many of the Agreements with provinces and territories contain obligations to eventually ensure equitable representation, the commitments in those Agreements focus on jurisdictions' obligations to develop inclusion plans to support this goal.
• The department assessed provincial and territorial inclusion plans according to its obligations, as these plans create the foundation for supporting diverse and vulnerable families.
• The Government of Canada is committed to enhancing inclusion within ELCC, and will continue to work with provinces and territories to achieve those goals.

If pressed on reporting

• The Government of Canada remains committed to ensuring Canadians have timely access to information regarding the federal investments in early learning and child care and the progress being made toward creating and maintaining a Canada-wide ELCC system.
• ESDC relies heavily on annual reports from provinces and territories to complete national progress reports and is working with all of its partners to address the timeliness of annual reporting.

If pressed on carry forwards

• The ability to carry forward funding from one fiscal year to the next is a tool that allows provinces and territories to better align funding with expenditures, in particular those related to capital costs.
• All amounts that are carried forward must be used for eligible expenditures and be spent in the fiscal year in which the funding is carried forward. Provinces and territories are not entitled to retain unspent funds.
• The Government of Canada will continue to work with provinces and territories to ensure proper management of federal funds.

If pressed on Indigenous ELCC

• The audit scope was limited to only ESDC's role in Indigenous ELCC delivery. It did not include the performance of other federal departments who also deliver the horizontal Initiative (including Indigenous Services Canada (ISC), Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC), Public Health Agency of Canada (PHAC)). Despite the limited focus, the audit findings were favourable and its recommendations were aligned with the department's performance measurement activities that are currently underway.
• Since 2022, ESDC has undertaken significant work to co-develop distinctions-based results frameworks with Indigenous partners, by centering Indigenous-led approaches and decision-making. Co-development processes take time to complete and help to illustrate how Canada is meeting its obligations to advance reconciliation. ESDC is working with partners to finalize the results frameworks and will continue to collaborate on implementation plans to support reporting on outcomes for Indigenous ELCC.

If pressed on status of negotiations (extension agreements)

• In February and March 2025, the Government of Canada reached agreements with 10 of 13 provinces and territories to extend their existing early learning and child care agreements until March 31, 2031, which included the fourth and final year of the Early Learning and Child Care Infrastructure Fund (fiscal year 2026 to 2027), providing nearly $20 billion over years. The agreements also included new funding for an annual 3% escalator from fiscal year 2027 to 2028 to 2030 to 2031 to ensure early learning and child care programs and services are protected from cost increases.
• The Government of Canada has re-engaged in negotiations with provinces that have not yet extended their early learning and child care agreements (Alberta, Ontario and Saskatchewan).
• The Government of Canada also recently launched negotiations for action plans with those provinces and territories that have signed extensions to their existing early learning and child care agreements.
• We remain committed to work with all provincial and territorial governments, in the interests of families across the country, to protect their ability to choose care that meets their needs. We are working together to continue to build a system that strengthens our communities and empowers parents to participate in the workforce.
• This government is committed to protecting access to high-quality, affordable, flexible and inclusive early learning and child care programs and services, ensuring that families across the country have access to regulated/licensed child care at an affordable cost.
• The economy is only truly strong when it serves everyone. Investing in early learning and child care supports economic growth and an increased participation in the workforce and aims at offering each child in Canada the best possible start in life.

If pressed on system sustainability

• The Government of Canada has heard from provinces and territories about some of the challenges they are facing regarding the long-term sustainability of the Canada-wide early learning and child care system.
• Given the unique challenges of some jurisdictions, we are taking the time to better understand and assess their concerns through ongoing discussions with our partners.
• We remain committed to working together with provinces and territories and Indigenous partners to protect the long-term sustainability of this important program that makes life more affordable for families across Canada.

10. OLMC Supports Landscape Across the GoC and ESDC

Background

The GoC and ESDC's supports to official language minority communities (OLMCs) are aligned with the GoC commitments under Part VII of the 2023 modernized Official Languages Act (OLA). All federal institutions have an obligation to proactively take positive measures with a conscious intent to have a positive impact on the implementation of the GoC commitments to:

• enhance the vitality of English and French linguistic minorities, and support and assist their development;
• foster the full recognition and use of English and French in Canadian society;
• protect and promote French, recognizing and taking into account that French is in a minority situation in Canada and North America due to the predominant use of English; and
• advance opportunities for members of English and French linguistic minority communities to pursue quality learning in their own official language throughout their lives.

Overview of the Action Plan for OL 2023 to 2028

Action Plan for OL 2023 to 2028

• The GoC strategic initiatives to support OLMCs fall under the Action Plan 2023 to 2028: Protection - Promotion - Collaboration (the Action Plan), an investment of $4.1 billion in funding over five years.
• The Action Plan is a concerted approach among the following partner federal institutions: Canadian Heritage; Employment and Social Development Canada; Immigration, Refugees and Citizenship Canada; Health Canada; Department of Justice Canada; and Statistics Canada. Departments are funded based on their core mandate responsibilities.
• The Action Plan features four pillars:
  • (1) Francophone Immigration: Towards the Re-Establishment of the Demographic Weight of Francophones
  • (2) Promoting Lifelong Learning Opportunities
  • (3) Strong Measures in Support of Community Vitality, and
  • (4) Leading by Example: Acting and Collaborating to Strengthen Communities. The four pillars of the Action Plan have intersecting aims.
• ESDC's funding for Action Plan totals $394.1M over five years in support of pillars 2 and 3 of the Action Plan.

ESDC's Approach to Implementing Action Plan Initiatives

ESDC's Action Plan initiatives are delivered via the following four programs:

Enabling Fund Official Language Minority (EF-OLMC) Program (100 % CRF funded)

• Community Economic Development and Human Resources Development Stream (Stream 1) of the Enabling Fund for OLMCs (EF-OLMC): $74.5M
• Indexation Steam 1 of the EF-OLMC: $20.5M
• Employment Assistance Services for OLMCs Stream (Stream 2) of the EF-OLMC: $206.6M

Three Action Plan initiatives are delivered under the EF-OLMC Program, which supports the development and enhances the vitality of Canada's English and French linguistic minority communities. Stream 1 funds 14 OLMC organizations to support community economic and human resources development. Stream 2 funds diverse OLMC organizations to provide employment assistance services (EAS) to their communities, such as employment counselling on résumé writing and interview techniques, job search skills training, and placement services, in the official language of their choice.

Skills for Success Program (13% chargeable to EI - Exempt from CER)

• OLMC Literacy and Essential Skills Initiative: $7.5M

The OLMC Literacy and Essential Skills Initiative is part of the Skills for Success (SFS) Program's Action Plan commitment to support the skills development of Francophone Minorities Communities (FMCs). The SFS Program (previously the Office of Literacy and Essential Skills) has been supporting the Réseau pour le développement de l'alphabétisme et des compétences (RESDAC) since the first GoC strategy 2003-2008. In July 2024, the program signed a new $6 million funding agreement over 4 years with the organization. This new agreement, aims to establish a National Centre of Expertise, implement new programs and tools for FMCs.

Social Development Partnership Program (100% CRF funded)

• Social Partnership Initiative (SPI) for OLMCs: $5.4M

The Social Partnership Initiative (SPI) in OLMCs is an investment under the Social Development Partnership Program (SDPP) in funding for community organizations to boost their capacity and enable them to provide services to better meet the priorities of OLMCs and work in partnership to address shared social development challenges. SPI provides funding through two experienced intermediary organizations: the Fédération des aînées et aînés francophones du Canada (FAAFC) and the Regional Development Network (RDN), one serving FMCs and one serving ESCQ.

Early Learning and Child Care (ELCC) Program (100 % CRF funded)

• Renewal and Expansion of Funding for the Training and Capacity Building for Early Childhood Educators: $14.2M, and
• Funding to Support the Creation of a Network of Early Childhood Stakeholders and implementation of initiatives in OLMCs: $50M.

The renewal and expansion of funding for the Training and Capacity Building for Early Childhood Educators, and the Funding to support the creation of a Network of Early Childhood Stakeholders and implementation of initiatives in OLMCs are investments under Early Learning and Child Care (ELCC) Program to support ELCC in FMCs.

The Commission nationale des parents francophones ( CNPF) received funding to create a network of ELCC stakeholders that support cross-sectoral coordination in the implementation of specific initiatives for FMCs, improving access to high quality, affordable, flexible and inclusive ELCC services. The Association des collèges et universités de la francophonie canadienne (ACUFC) received funding to expand and continue the development of initial, continuous and specialized training programs for early childhood educators in FMCs.

E. Labour

1. Labour Dispute at the Canada Post Corporation

Issue

Ongoing collective bargaining between the Canada Post Corporation (Canada Post) and the Canadian Union of Public Workers (CUPW).

Background

• Canada Post and CUPW are negotiating the renewal of two expired collective agreements covering the following bargaining units:
  • the Urban Postal Operations unit, representing approximately 42,000 employees
  • the Rural and Suburban Mail Carriers unit, representing approximately 10,900 employees
• The parties have been engaged in bargaining since November 2023, holding over 120 meetings between then and August 2024. On August 2, 2024, CUPW filed notices of dispute to request assistance from the Federal Mediation and Conciliation Service. 2 conciliation officers were appointed on August 13, 2024. Following the end of the conciliation period, two mediators were appointed on October 15, 2024, and a special mediator was appointed on November 14, 2024.
• The parties acquired the legal right to strike or lockout on November 3, 2024. On November 15, 2024, the union commenced a nationwide strike. On the same day, the employer announced changes to the terms and conditions of employment.
• On December 13, 2024, the previous Minister of Labour referred the disputes to the Canada Industrial Relations Board (CIRB) under section 107 of the Canada Labour Code (Code). The CIRB ordered a return to work and extended the existing agreements until May 22, 2025. On December 16, 2024, an Industrial Inquiry Commissioner, William Kaplan, was appointed under section 108 with a mandate to examine the current bargaining dispute and the positions of the parties, with special attention to the underlying causes of the dispute, specifically:
  • the financial situation of Canada Post
  • Canada Post's expressed need to diversify and/or alter its delivery models in the face of current business demands
  • the viability of the business as it is currently configured
  • the union's negotiated commitments to job security and full-time employment
  • the need to protect the health and safety of employees

The Commissioner submitted his report on May 15, 2025, and a copy was immediately shared with the parties.

• On May 23, 2025, the union initiated an overtime ban.
• On June 12, 2025, the Minister, pursuant to subsection 108.1(1) of the Code, ordered a vote on the final offers submitted by the employer to the union on May 28, 2025. On August 1, 2025, the CIRB announced that the union members of both bargaining units had voted to reject the employer's offers.
• On August 20, 2025, CUPW tabled offers for both bargaining units. Canada Post assessed that these proposals did not present a sufficient basis for further negotiations and indicated that the union should revise its offers to better align with the company's realities.
• On September 15, 2025, the union escalated its job action from an overtime ban to the cessation of commercial flyer delivery.
• On September 25, 2025, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, announced that the Government would be implementing a series of measures based on the recommendations outlined in Commissioner Kaplan's report. These measures aim to address Canada Post's financial challenges and include lifting the moratorium on community mailbox conversions, ending the 1994 moratorium on rural post office closures, giving Canada Post flexibility on letter mail delivery standards, and reviewing the process for increasing the stamp rate. Minister Lightbound also directed Canada Post to immediately review its structure to identify efficiencies and reduce costs.
• In response to the Government's announcement, the union launched a nationwide strike on September 25, 2025, which remains ongoing. On October 3, 2025, the employer presented new offers, which the union described as a major step backward but agreed to review. Mediators remain available, although no meetings are currently scheduled.
• On October 11, 2025, at 6 am local time, the union moved from nationwide strike action to rotating strikes.
• On November 21, 2025, the parties arrived at agreements in principle, and they have agreed that strike/lockout activity is suspended as they work to finalize tentative agreements for signature. This work is now underway with the ongoing support of federal mediators.
• If tentative agreements are reached, they will be taken to union membership for a ratification vote.

Key messages

• For nearly 2 years, Canada Post and the Canadian Union of Portal Workers have been engaged in negotiations to renew their collective agreements
• The Government has taken steps to promote conditions favourable to the settlement of this dispute, including through the appointment of federal mediators who have been supporting the parties in their bargaining for more than a year, the appointment of a special mediator and the appointment of an Industrial Inquiry Commissioner, an expert in labour relations, who provided recommendations.
• The parties have recently reached agreements in principle and have agreed to suspend job action while they work to finalize tentative agreements. Federal mediators will continue to support the parties in these discussions.
• It is essential that both parties continue to work together toward a negotiated agreement.

2. Labour Disputes and Section 107

Issue

Use of section 107 of the Canada Labour Code in labour disputes.

Background

• Under section 107 of the Canada Labour Code (the Code), the Minister of Labour may refer any question or direct the Canada Industrial Relations Board (CIRB) to do such things as to the Minister seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of disputes.
• The text of section 107 is as follows:

Additional powers

• 107 The Minister, where the Minister deems it expedient, may do such things as to the Minister seem likely to maintain or secure industrial peace and to promote conditions favourable to the settlement of industrial disputes or differences and to those ends the Minister may refer any question to the Board or direct the Board to do such things as the Minister deems necessary.
• Although "industrial peace" is not defined in the Code, it can refer to a state of harmonious labour relations between employers and employees whereby industrial disputes, if they arise, are resolved in a way that avoids or reduces work stoppages.

Most recent use of section 107

• On August 16, 2025, a strike and lockout began in the dispute involving Air Canada and Canadian Union of Public Employees (CUPE) Airline Division.
• That same day on August 16, 2025, the Minister of Labour invoked section 107 of the Code and directed the CIRB to order the parties to resume airline service operations, impose final binding arbitration to resolve outstanding terms of the collective agreement, and extend the existing collective agreement until a new one is determined by the arbitrator. The CIRB followed the Minister's directions and effectively ordered an end to the dispute on August 17, 2025.
• CUPE defied the CIRB's orders and remained on strike, leading the employer to file an application to the CIRB seeking a declaration of unlawful strike. The CIRB declared the strike unlawful on August 18, 2025, but CUPE remained on strike until August 19, 2025, when the parties reached a tentative agreement.

Key facts

• Since 2023, ten referrals have been made under section 107, nine of which have been made to end or temporarily pause a strike or lockout and/or impose arbitration. The most recent referrals were made in the following labour disputes:
  • Air Canada (August 2025)
  • Canada Post (December 2024)
  • West Coast ports (November 2024)
  • Port of Montreal (November 2024)
  • Port of Quebec (November 2024)
  • Canadian National Railway and Canadian Pacific Kansas City Railway (August 2024).
• Unions have challenged the section 107 referrals, and the CIRB's related orders, that ended or temporarily suspended strikes and lockouts and order arbitration in 2024 and 2025, arguing that the referrals and orders interfered with the meaningful process of collective bargaining, which includes the right to strike, as protected by section 2(d) (freedom of association) of the Canadian Charter of Rights and Freedoms. These challenges are proceeding before the Federal Court and the Federal Court of Appeal.
• On October 6, 2025, MP Leah Gazan of the New Democratic Party introduced Bill C-247, An Act to amend the Canada Labour Code. The Bill proposes to repeal section 107 of the Code entirely. Ms. Gazan is 39th on the list of consideration for private members' business, meaning that Bill C-247 currently falls outside the Order of Precedence.
• The replenishment of the Order of Precedence is expected in winter/spring 2026 (TBC). At that time, Ms. Gazan could select Bill C-247. It typically takes between 10 and 29 months for a PMB to receive Royal Assent, should it be adopted by both Houses of Parliament.

Key messages

General

• Our Government respects and has faith in the collective bargaining process because we know negotiated agreements are the best way forward.
• It is always incumbent on employers and unions to work together to reach an agreement.
• The Government supports the parties through the Federal Mediation and Conciliation Service, which was established to provide dispute resolution and relationship development assistance to parties under the jurisdiction of the Canada Labour Code.
• In this last fiscal year of 2024 to25, the Federal Mediation and Conciliation Service settled 97% of disputes without a work stoppage. These include, for example:
  • dispute involving Air Canada and its pilots represented by ALPA, and
  • Canadian Pacific Kansas City Railway and two of its major employee bargaining units represented by Unifor (shopcraft employees) and the Teamsters Canada Railway Conference (maintenance of ways employees)
• Earlier this summer, federal mediators supported VIA Rail and Unifor in the renegotiation of three collective agreements, covering approximately 2,400 employees. This was accomplished without a work stoppage.
• Of those disputes in the last fiscal year that did result in a work stoppage, many were resolved without government intervention and with the ongoing support of federal mediators, notably:
  • DHL Express and two bargaining units represented by Unifor (covering operations throughout Canada)
  • Vancouver Terminal Elevators Association and the Grain Workers Union (covering operations at grain terminals in the Port of Vancouver and North Vancouver)
  • Vidéotron and the Canadian Union of Public Employees (covering operations in the broader Gatineau area)
• As recently as last month, the Société de Transport de l'Outaouais and the Amalgamated Transit Union, working closely with federal mediators, arrived at a negotiated settlement following a short work stoppage.

Use of section 107

• Although negotiated agreements are the best way forward, it is my duty and responsibility to act in the interests of businesses, workers, farmers, families and all Canadians, when certain parties do not fulfill their responsibility to negotiate to reach an agreement.
• A decision to invoke section 107 is not taken lightly and is considered on a case-by-case basis under exceptional circumstances.
• The challenges against the uses of section 107 to end or temporarily suspend the right to strike or lockout and order arbitration are currently before the courts. We are not aware when decisions will be issued.

3. West Coast Ports Industrial Inquiry Commission

Issue

What are the next steps following the Industrial Inquiry Commission investigating longshoring labour disputes at the West Coast ports?

Background

West Coast Ports Dispute

• The July 2023 labour dispute between the International Longshore and Warehouse Union (ILWU) Canada and the British Columbia Maritime Employers Association (BCMEA) culminated into a 13-day strike at the West Coast ports. The work stoppage shut down major operations across West Coast ports, including the Port of Vancouver, which is the third largest port in North America in terms of volume and the largest in Canada.
• The labour dispute between ILWU Canada and the BCMEA at the West Coast ports in July 2023 caused serious disruptions to Canada's economy and supply chains.

IIC on the West Coast Ports

• On April 22, 2024, an Industrial Inquiry Commission (Commission) was appointed under section 108 of the Canada Labour Code (the Code) to conduct a comprehensive review of the underlying issues at the West Coast ports. The two-person IIC consisted of Vincent Ready as its Chair and Amanda Rogers as a member.
• The Commission submitted its final report with recommendations to the former Minister of Jobs and Families on May 8, 2025.

Findings of the Report

• The report highlights a number of underlying issues that are impacting longshoring labour disputes at Canada's West Coast ports. It underscores that the longshoring industry has undergone significant transformation over the last few decades, and that the West Coast ports are facing complex challenges and evolving dynamics impacting collective bargaining.
• It suggests that these challenges necessitate attention and action to ensure that the rights of union members are appropriately balanced with employer rights and the national interest in maintaining labour stability.
• The Government is carefully evaluating the Commission's findings and recommendations as it considers next steps.

Key facts

• The labour dispute between the ILWU Canada and the BCMEA involved a 13-day strike at the West Coast ports in July 2023 that caused serious disruption to the Canadian economy and supply chains.
• The work stoppage shut down major operations at 30 West Coast ports, including the Port of Vancouver, which is the third-largest port in North America in terms of volume and the largest port in Canada.
• The West Coast ports strike caused serious disruptions to the economy and created significant obstacles to the movement of goods. This added to existing challenges for Canada's economy, including supply chain volatility, wildfires, and labour shortages. The dispute impeded the movement of cargo valued at around $10 billion in total, significantly impacting Canadian supply chains in all regions of the country. The most impacted industries were transportation and warehousing, construction, manufacturing, natural resources, and retail trade.

Key messages

• To improve collective bargaining between unions and employers at the West Coast ports, and to ensure stability of Canadian supply chains, the Government appointed an Industrial Inquiry Commission to examine the structural issues underlying longshoring labour disputes at Canada's West Coast ports.
• The Commission submitted its final report with its findings and recommendations.
• The Government thanks the Commission for its work and is carefully evaluating its findings and recommendations.

4. Protecting Federally Regulated Gig Workers/Misclassification/Incorporated Drivers

Issue

Addressing employee misclassification in the road transportation industry and protecting federally regulated gig workers under the Canada Labour Code.

Background

The misclassification of employees has garnered significant attention in recent weeks, due to media attention and the launch on October 9, 2025, of a probe on the changing landscape of truck drivers in Canada by the House of Commons Standing Committee on Transport, Infrastructure and Communities. However, this has been a long-standing issue for key stakeholders in the road transportation sector, including the Canadian Trucking Alliance (CTA), which have lobbied for stronger enforcement of labour, safety and taxation rules that they allege are being flouted by enterprises using the "Drivers Inc." business model. From a Labour Program perspective, a number of measures have been taken to better protect workers from being misclassified, including legislative changes to the Canada Labour Code (Code), increased collaboration between government organizations and enhanced compliance and enforcement efforts.

Employee Misclassification

• Misclassification occurs when an employer wrongfully classifies an employee as an independent contractor, and as a result the employee is denied basic employee rights, protections and entitlements.
• As a result of misclassification, workers may experience precarious working conditions and economic vulnerability, including low and unpredictable earnings, unpredictable schedules, and unpaid work time.
• For example, misclassified truck drivers treated as self-employed independent contractors may lose most job protections, including:
  • union and collective bargaining rights
  • occupational health and safety protections
  • minimum labour standards (for example, minimum wage, paid medical leave, overtime pay, vacation pay, paid general holidays) and
  • other employment related benefits, such as Employment Insurance
• Misclassification also creates unfair competition, undercutting legitimate businesses that comply with the Code and provide related employment benefits.
• Provisions for combatting employee misclassification were first added to the Code in 2021, when it became prohibited for employers to treat an employee as if they were not their employee in order to avoid their obligations under Part III (Labour Standards) of the Code or to deprive the employee of labour standards rights.
• A pilot project launched in the Ontario Region to support the new misclassification measures uncovered widespread misclassification in the road transportation industry.
• Subsequently, the 2022 Fall Economic Statement committed $26.3 million over 5 years to the Labour Program to amplify enforcement and compliance activities needed to combat employee misclassification in the federally regulated road transportation industry. Since then, the Labour Program has established a dedicated team that conducts inspections of workplaces where employers are suspected of misclassifying employees.
• From April 2023 to October 31, 2025, the Labour Program has initiated over 670 inspections and found 148 cases of misclassification. The focus has been on high-risk employers suspected of misclassification - drawing from a list of employers with a history of non-compliance, employers provided through a tip line and names provided by stakeholders.
• The team has successfully obtained voluntary agreement from more than 80% of employers inspected to properly treat their drivers as employees and comply with the Code. Employers who did not cooperate with Labour Program inspectors or did not come into compliance, have been issued Compliance Orders (CO) and Administrative Monetary Penalties (AMPs).
• In June 2024, legislative changes to the Code that better protect workers against misclassification and simplify enforcement came into force.
• The amendments introduced strengthened prohibitions on misclassification under Part I (industrial relations), Part II (occupational health and safety) and Part III (labour standards) of the Code and a presumption that all workers, including gig workers, are employees unless proven otherwise, placing the burden of proof on employers if a worker's employee status is contested.
• Workers who are true independent contractors are not affected by these amendments.
• In addition, to bolster compliance and enforcement respecting the prohibition on misclassification, Budget Implementation Act, 2024, No. 1 (Budget 2024) also announced that Employment and Social Development Canada and the Canada Revenue Agency (CRA) would enter into data-sharing agreements.
• An information sharing agreement between the Labour Program and the Canada Revenue Agency (CRA) has been in place since March 2025. This enables the Labour Program to share information with the CRA on employers alleged or found to be misclassifying employees.
• In addition, in Budget 2025 the Government announced its intention to amend the information sharing provisions of the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency (CRA) to share relevant taxpayer and confidential information with Employment and Social Development Canada for the purposes of furthering collaboration to address the misclassification of workers.
• The Labour Program and the Temporary Foreign Worker Program (TFWP) have signed a Memorandum of Understanding (MOU) to share information. This will help address non-compliance and better target enforcement activities in the road transportation sector. Under this agreement, both programs will exchange employer and business information, including details on complaints and investigations, particularly for employers found in violation of legislation or with a high number of pending complaints.

Key facts

• The road transportation industry has more than 8,000 federally regulated employers and 260,000 employees. According to Labour Force Survey data, there are approximately 31,800 incorporated self-employed truck drivers without employees in the federally regulated road transportation industry.
• Since its inception in April 2023 to October 31, 2025, the Labour Program's National Misclassification Team has undertaken over 670 inspections and more than 420 education activities with carriers in the federally regulated road transportation sector.
• The Misclassification Team has obtained voluntary agreement from more than 80% of employers inspected, and found not to be complying with the rules, have since agreed to properly classify their drivers as employees. Employers who did not cooperate with Labour Program inspectors or did not come into compliance, have been issued Compliance Orders (CO) and Administrative Monetary Penalties (AMPs).
• As of October 31, 2025, the Labour Program has issued 30 Compliance Orders and 22 AMPs to address misclassification in the road transportation sector.
• The Misclassification Team also collaborates with federal and provincial partner agencies to raise awareness about misclassification among truck drivers at commercial motor vehicle inspection stations (weigh stations) across Canada.
• Since late 2024, joint operations have taken place at weigh stations in Quebec, Ontario, Nova Scotia, British Columbia, Alberta, Saskatchewan and Manitoba to educate drivers about misclassification and their rights under the Code, as well to gather information on employers who may be misclassifying drivers.
• These joint operations are often in partnership with other federal departments, such as the Canada Revenue Agency (CRA), and provincial regulatory agencies including worker compensation boards.

Key messages

• The Government is committed to upholding labour protections.
• Addressing employee misclassification is a key priority, especially where truck drivers are wrongly classified as independent contractors, denying them protections under the Code and social benefits like Employment Insurance (EI) and Canada Pension Plan (CPP).
• Based on robust stakeholder engagement, the Government amended the Canada Labour Code in 2024 to strengthen the prohibition against employee misclassification. As such, all workers, including gig workers, are presumed to be employees unless proven otherwise, placing the burden of proof on employers if a worker's status is contested. These amendments better protect workers in federally regulated sectors, but do not affect true independent contractors.
• Since the inception of the dedicated Misclassification Team in April 2023 to October 31, 2025, the Labour Program has initiated over 670 inspections and 420 outreach educational sessions including at weigh stations across the country in partnership with provinces and other regulatory bodies.
• The Labour Program's collaboration with the Canada Revenue Agency and with the Temporary Foreign Worker Program through information sharing arrangements will further strengthen enforcement efforts against misclassification and violations of other legal frameworks.

If pressed about investments from the Government of Canada to address misclassification

• In the 2022 Fall Economic Statement, the former Government took measures to address misclassification and potential non-compliance in the federally regulated road transportation industry by announcing $26.3 million over 5 years, starting in 2023 to 2024.
• The Labour Program created a dedicated team of labour standards inspectors to focus on misclassification of truck drivers across Canada. This work includes outreach, awareness, communications, as well as undertaking inspections and other enforcement activities to obtain compliance with the Code.
• The Labour Program continues to expand partnerships with federal and provincial regulatory agencies to address misclassification. This includes joint outreach activities with provincial counterparts at weigh stations in Quebec, Ontario, Nova Scotia, British Columbia, Alberta and Saskatchewan, educating drivers on their rights and uncovering intelligence and leads on possible misclassification. In some cases, the joint operations include additional partners such as provincial Workers Compensation Boards (WCB) and the Canada Revenue Agency (CRA).

If pressed about Government Action or Enforcement

• Employers who misclassify employees and deprive them of their rights and benefits are in contravention of the Canada Labour Code and may be subject to enforcement measures, such as administrative monetary penalties (AMPs), compliance orders, and payment orders for wages owed to their employees.
• Between April 1, 2024 and November 3, 2025, the Labour Program has issued over 820 payment orders to employers totalling over $4.5 million for unpaid wages and other amounts in the road transportation sector.
• As of October 31, 2025, the Labour Program has issued 22 AMPs to address misclassification in the trucking industry, as well as 30 compliance orders.
• To date, the Labour Program has published the names of 2 employers found to have misclassified employees. More naming of non-compliant employers is expected, as the Labour Program is examining ways of increasing the issuance of AMPs and the public naming of bad actors, as part of a robust review of the AMPs regime.

5. Probe on flight attendants' pay (definition of work)

Issue

Why is the Government conducting a probe on flight attendants' unpaid work? Will it add a definition of "work" in the Canada Labour Code?

Background

Canada Labour Code

• Part III of the Canada Labour Code (Code) sets out standards regarding employment conditions including hours of work, payment of wages, leaves, annual vacations, holidays and rights on termination of employment. There are roughly 1,020,000 employees subject to Part III of the Code who are employed by approximately 18,500 federally regulated private-sector employers and Crown corporations.
• Part III does not include a definition of what constitutes "work". However, the Labour Program has developed Interpretations, Policies and Guidelines (IPGs) that clarify the meaning of "work" to ensure consistent interpretation of the Code. The interpretation of work described in the IPG on hours of work includes training, time spent at the employer's disposal at the worksite waiting to be assigned work, and time spent while on break but remaining at the employer's disposal.
• For flight attendants, approximately 90% of whom are unionized, the meaning of work and the calculation of pay for time worked is negotiated between employers and employees' bargaining agents. The Canadian Union of Public Employees - Air Canada Component (CUPE) agreed to the remuneration formula provided for in the collective agreement that was signed approximately ten years ago with Air Canada.
• Certain divisions under Part III of the Code, including the Minimum Wage and Age of Employment division, do not apply to employees represented by a union, if the collective agreement provides rights and benefits at least as favourable as those provided in those divisions. This means that an employer and a union may negotiate an alternative rate of pay so long as employees receive at least the minimum wage.

Private Member's Bills C-409 and C-415

• During the previous parliamentary sitting, Members of Parliament from the Conservative Party of Canada and the New Democratic Party (NDP) each introduced similar Private Member's Bills (PMBs) (C-409 and C-415, respectively), proposing to amend the Code to specify that flight attendants must be paid for certain work activities. Both bills died on the order paper.
• In response to the bills, the former Minister of Labour indicated that the Government should not be commenting on the hours of work and wage provisions included in a collective agreement, and that the role of the Government is to establish minimum standards and let parties negotiate agreements.
• During the 2025 electoral campaign, both the NDP leader and Green Party co-leader signed a pledge to introduce legislation to ban unpaid work for flight attendants. On October 21, 2025, the NDP introduced a private member's bill C-250, An Act to amend the Canada Labour Code (flight attendants), which is identical to NDP's previous private member's bill C-415, which died on the Order Paper in the previous parliamentary session.

Key facts

• In the recent labour dispute between Air Canada and CUPE, CUPE claimed that pre- and post-flight tasks performed by flight attendants are unpaid.
• On August 18, the Minister of Jobs and Families announced the launch of a probe on unpaid work in the airline sector, consisting of consultations to determine whether flight attendants are being paid in a manner that, at minimum, meets the requirements of the Code.
• Following the rejection on September 6 of a tentative agreement reached on August 19 by CUPE members working for Air Canada, which, according to both parties, included pay for time spent performing pre- and post-flight activities, all outstanding issues have been referred to final and binding interest arbitration. In accordance with the terms of the agreement reached, there can be no strike or lockout.
• Four sessions of targeted consultations with stakeholders in the airline sector took place from September 23 to October 3. Stakeholders were invited to provide written submissions until October 17. The Labour Program will publish a What We Heard Report as soon as possible.

Key messages

• The Government of Canada is committed to protecting workers. This includes ensuring that flight attendants, who play a critical role in keeping Canadian passengers safe, can avail themselves of all labour standards rights and entitlements.
• The Labour Program consulted employer and employee representatives in the airline sector to better understand whether flight attendants are paid in a manner that complies with Part III of the Canada Labour Code.
• A What We Heard report summarizing the results of the consultations will be published as soon as possible. The Government will determine appropriate action based on the final report.

If pressed on adding a definition of "work" in the Canada Labour Code

• The Labour Program has developed Interpretations, Policies and Guidelines (IPGs) that clarify the meaning of "work" to ensure consistent interpretation of the Canada Labour Code. The interpretation of work in the IPGs includes training, time spent at the employer's disposal at the worksite waiting to be assigned work, and time spent while on break but remaining at the employer's disposal.

6. Forced Labour

Issue

This document outlines responsive lines regarding the forced labour import ban, due diligence legislation, and An Act to Enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act.

Background

• Canada is currently the only country that has both federal supply chain legislation (former Bill S-211, referred to as "The Supply Chains Act") and an import ban on goods produced with forced labour currently in place.
• The previous government's 2021 mandate letters (for the ministers responsible for international trade, federal procurement, public safety and labour) and Budgets 2023 and 2024 included commitments to introduce legislation to eradicate forced labour from Canadian supply chains and strengthen the import prohibition on goods produced using forced labour.
• In 2020, as part of the Canada-United States-Mexico Agreement (CUSMA), Canada amended the Customs Tarriff to include a prohibition on the import of goods mined, manufactured or produced forced labour into Canada.
  • The Canada Border Services Agency (CBSA) is responsible for the administration and enforcement of the import prohibition
  • In Fall 2024, Global Affairs Canada led public consultations with businesses, government entities and civil society organizations on potential measures to strengthen the forced labour import ban
• The Government also supports CUSMA technical-level exchanges among labour, border, and trade officials in the U.S., Canada and Mexico to advance collaboration on forced labour research and enforcement.
• In January 2024, Canada introduced The Supply Chains Act, which requires certain entities and government institutions to report on steps taken to prevent and reduce risks of forced labour in their supply chains. Public Safety Canada is responsible for its implementation.
• On October 21, 2025, Bloc Québécois MP Simon-Pierre Savard-Tremblay tabled PMB C-251. The Bill seeks to strengthen the forced labour import ban by introducing aspects of the U.S. reverse onus enforcement model in Canada. Officials from implicated departments and agencies are closely studying Bill C-251 to better understand its potential impacts. Additional analysis is required to evaluate the bill's feasibility and understand its implications for Canadians.

Key messages

• The Government of Canada believes in the importance of upholding human rights, including international labour standards, in global supply chains.
• The Government will continue to work closely with stakeholders and international partners to address exploitation in supply chains.

Responsive on the Fighting Against Forced Labour and Child Labour in Supply Chains Act

• An Act to enact the Fighting Against Forced Labour and Child Labour in Supply Chains Act and to amend the Customs Tariff came into force on January 1, 2024. Public Safety Canada is responsible for its implementation.
• The Government remains committed to eradicating forced labour and labour exploitation from global supply chains.

Responsive on the import ban on goods produced with forced labour

• The Canada Border Services Agency is responsible for the enforcement of the import ban.
• Federal departments are working together to consider means of strengthening the regime, further to consultations held by Global Affairs Canada, and ongoing discussions with international counterparts, including the United States.

Responsive on whether the government will bring forward legislation to strengthen the import ban or will support Bill C-251

• I would direct you to the Honourable Maninder Sidhu, Minister of International Trade.
• We will continue to work together across departments and with international partners on these and other measures to address exploitation in global supply chains.

7. CUSMA Review

Issue

Canada-United States-Mexico Agreement (CUSMA) Review

Background

CUSMA Labour Provisions

• CUSMA came into force on July 1, 2020. The agreement includes a comprehensive chapter on labour, which is subject to enforceable dispute settlement that could lead to trade sanctions if all other cooperative and consultations mechanisms fail to resolve issues of non-compliance with labour obligations.
• The Labour Program of ESDC and Global Affairs Canada co-lead the implementation of the labour provisions under CUSMA.
• This chapter aims to level the playing field on labour standards and working conditions in North America by ensuring the Parties do not lower their levels of protection to attract trade or investment.
• CUSMA's labour provisions, under Annex 23-A, commit Mexico to provide for the effective recognition of the right to collective bargaining, in line with its labour reform.
• The Canada-Mexico Facility-Specific Rapid Response Labour Mechanism was also established to allow Canada to request an inspection of a specific facility based on a good faith belief that obligations related to freedom of association and collective bargaining in covered facilities are not being respected. The United States (U.S.) has an equivalent mechanism with Mexico.
• Canada remains committed to supporting Mexico in meeting its labour obligations under CUSMA. This commitment is reflected in Canada's ongoing efforts to help consolidate Mexico's labour reform through targeted initiatives that promote workers' rights, strengthen labour justice institutions, improve social dialogue, and enhance compliance with international labour standards. Canada has been funding six technical assistance projects, for a total of $20 million (Fiscal Year 2021 to 2022 to Fiscal Year 2024 to 2025, funding ended, although some project activities are expected to continue into 2027).

Key facts

Labour Council and 2025 Labour Chapter Review (prior to 2026 CUSMA Review)

• December 9 to 10, Canada is hosting the CUSMA Labour Council. Delegations from the three CUSMA Parties are typically led by senior level officials at the Director General (DG) level or equivalent, responsible for overseeing implementation of the labour provisions. CUSMA Labour Councils are held every two years.
• While the two-day Council meeting will primarily consist of closed, government-to-government sessions held in a hybrid format to enable broad participation by officials unable to attend in person, a three-hour public session will also be organized in virtual mode.
• A new element of this Council meeting, differentiating it from the two previous meetings, is the inclusion of a dedicated session to discuss the review of the operation and effectiveness of the Labour Chapter, as set out in Article 23.14.5. While the review was required to be completed during the fifth year following CUSMA's entry into force (for example, by July 01, 2025), the Parties agreed to undertake it before the end of the year. Accordingly, the Labour Council meeting provides a timely opportunity to conduct this review.
• The focus the Labour Chapter review is to assess progress achieved to date in implementing the Chapter's obligations, particularly in the areas of cooperation and technical assistance. In line with the provisions of the Chapter, the review does not entail any reopening or renegotiation of its text. This is separate and different from the overall CUSMA review scheduled to take place in 2026.
• Canada is committed to working collaboratively with the United States and Mexico in the administration and review of CUSMA's labour provisions, including through ongoing trilateral technical exchanges to effectively enforce our respective forced labour import bans.

CUSMA Review

• CUSMA includes a commitment to jointly review the functioning of the Agreement, starting on the sixth anniversary of its entry into force (July 1, 2026). During the review, the Parties can decide by consensus to make changes to the Agreement based on recommendations from a Party, submitted at the latest one month before the review, and also to extend CUSMA's term for another 16 years.
• While Canada's preference is to keep the scope of the CUSMA review narrow, Canada's trade negotiators will be prepared to respond to what could be a broad range of U.S. asks.
• The U.S. Executive Summary of the America First Trade Policy report, published on April 3, 2025, explicitly referenced "renegotiation" of CUSMA, and noted that "numerous changes were needed" to CUSMA, with specific references to seeking stronger rules of origin to reduce the inflow of non-market economy content into the United States, the need to expand market access (specifically mentioning the Canadian dairy market), and Mexico's discriminatory practices in the energy sector. In the U.S. 2025 National Trade Estimate Report on Foreign Trade Barries, published on March 31 and detailing what the United States Trade Representative (USTR) perceives as unfair trade barriers of its trading partners, issues raised with Canada include: Quebec Bill 96, Canada's Zero Plastic Waste Agenda, Canada's Online News Act, Intellectual Property, and provincial restrictions on the sale of wine, beer and spirits.
• Mexico's President Sheinbaum has signaled that she would like to see a more balanced usage of CUSMA's rapid response labour mechanisms to also protect workers' rights in the U.S. and Canada.
• All three Parties have conducted national consultations regarding the operation of the Agreement to inform the joint review. Canada launched a second phase of its public consultations on September 20, 2025, which closed on November 3, 2025. The U.S. launched its public consultation process on September 17, 2025, via a Federal Register notice seeking both written comments on the operation of the treaty and requests to appear at a hearing on December 3-5, 2025. Mexico launched its public consultation process on September 17, 2025, via a Government of Mexico website, to gather experiences from the sectors where the treaty applies.

Key messages

• Trade and labour protections are mutually supportive. Canada strives to demonstrate internationally that a competitive economy includes safe, healthy and cooperative workplaces.
• We are committed to continue working with our partners in the U.S. and Mexico on the implementation of the Labour Chapter.
• Suggest that you engage with Minister LeBlanc to further discuss the CUSMA review or matters related to Canada-U.S. trade.

Responsive - CUSMA Review (if pressed)

• The CUSMA review process does not require that CUSMA be reopened; the Agreement calls for a review rather than a renegotiation.
• The government remains prepared to engage with our CUSMA partners to advance our shared economic security and prosperity in North America.
• The context has changed since the fall 2024 and Global Affairs Canada has now completed its second round of public consultations, with a view to fine tuning its preparations for the review.
• The federal government is also meeting on a regular basis with provincial and territorial governments to exchange views and discuss strategy.

Responsive - 2025 Labour Council and Labour Chapter review

• Canada is hosting the CUSMA Labour Council on December 9 to 10, 2025, and is expected to include a dedicated session to review the Labour Chapter's operation and effectiveness as outlined in the Agreement. Canada is committed to working collaboratively with the United States and Mexico in the administration and review of CUSMA's labour provisions, including through ongoing trilateral technical exchanges to effectively enforce our respective forced labour import bans.
• The focus the 2025 Labour Chapter review is to assess progress achieved to date in implementing the Chapter's obligations, particularly in the areas of cooperation and technical assistance. In line with the provisions of the Chapter, the review does not entail any reopening or renegotiation of its text.

Responsive - if asked about potential expansion of the Facility-Specific Rapid Response Labour Mechanism (RRLM)

• Given the scope of the 2026 CUSMA review has not yet been determined, it is premature for me to comment on anything relating to the labour provisions, including the Facility-Specific Rapid Response Labour Mechanism.
• Any potential expansion of the RRLM should be preceded by thoughtful dialogue among the Parties, with consideration to comments received during public consultations.
• Suggest that you engage with Minister LeBlanc to further discuss the CUSMA review or matters related to Canada-U.S. trade.

8. Paid Medical Leave

Issue

The Government introduced legislation that provides ten days of medical leave with pay for employees in the federally regulated private sector, which came into force in December 2022.

Background

Ten Days of Medical Leave with Pay

• Amendments to Part III of the Canada Labour Code, passed as part of An Act to amend the Criminal Code and the Canada Labour Code (Bill C-3), and the Budget Implementation Act, 2022, No. 1 (Bill C-19), have provided employees in federally regulated workplaces with up to 10 days of medical leave with pay per year. The legislation received royal assent in December 2021. The provisions came into force in December 2022 to allow for the preparation of regulations and to provide employers with sufficient time to implement the necessary payroll and organizational changes.
• The Labour Program secured 8.9 million dollars over 3 years starting in 2022 to support the implementation of medical leave with pay. This funding provided the Labour Program with temporary additional resources to support compliance and enforcement of these new provisions.
• In addition, 2 Interpretation, Policies and Guidelines (IPGs) - on Medical Leave with Pay and Medical Leave with Pay-No Stacking - have been published to clarify the implementation of the leave and the interaction with existing employer benefits.
• Employer stakeholders continue to express concerns with the medical leave with pay provisions and their implementation, including potential misuse of the leave leading to possible increased absenteeism and operational challenges. They also raised concerns that the new entitlement could "stack" on top of existing medical leave benefits already provided through workplace policies or collective agreements.
• In September 2024, the Labour Program commissioned a survey of federally regulated employers on their experience with the implementation of the medical leave with pay provisions.
• The survey findings indicate that implementation has had uneven effects, with each employer's experience shaped by factors such as organizational capacity, collective agreements, attitudes towards leave, and employee relations more broadly.
• A sizable number of employers reported little to no significant negative impact from the new leave. This finding aligns with emerging research showing that paid medical leave yields net positive benefits with a modest impact on business costs, improving productivity by reducing turnover and presenteeism and contributes to better health and economic outcomes.
• The Labour Program is analyzing the results of the survey contained in a report from the contractor. The report is expected to be published on Canada.ca.

Key facts

• Part III of the Canada Labour Code sets labour standards for employees in the federally regulated private sector and in Crown and shared-governance corporations, totalling about 1,020,000 employees (roughly 6% of the Canadian employees) and 18,500 employers.
• When Bill C-3 came into force in December 2021, at least 60% of employees under Part III had access to fewer than ten days of paid leave per year to treat a personal illness or injury.

Key messages

• Bill C-3, which received all party support, provides employees in the federally regulated private sector with 10 days of medical leave with pay per calendar year.
• These amendments to the Canada Labour Code empower employees to prioritize their health and the health and safety of their workplaces.

If asked about the implementation of paid medical leave

• The Labour Program obtained 8.9 million dollars over 3 years starting in 2022 to support the implementation of the medical leave with pay. This funding provided the Labour Program with additional capacity to support compliance and enforcement of these new provisions.
• The Labour Program has provided employers with guidance to support the implementation and address questions on the interaction with existing benefits.

F. Seniors

1. Seniors poverty

Issue

How is the Government of Canada helping address poverty and food insecurity among seniors?

Background

• The Government has made significant investments in social programs and income supports to reduce poverty and food insecurity among seniors, including by:
  • restoring the age of eligibility from 67 to 65 for both the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS), which helped 100,000 seniors aged 65 and 66 to avoid falling into poverty
  • increasing the maximum GIS benefit for single seniors by 10% in 2016, improving the financial security of close to 900,000 seniors who rely almost exclusively on the OAS pension and the GIS. This provided up to $1,150 in additional benefits in 2023, indexed to inflation every quarter
  • raising the OAS pension by 10 per cent for seniors 75 years and older, which provided more than $800 in new support to full pensioners over the first year, and increased benefits for more than 3 million seniors
  • indexing OAS benefits quarterly to keep pace with the rising cost of living

Key facts

• The latest data from the Canadian Income Survey shows that the poverty rate for seniors was 5.0% in 2023 as measured by Canada's Official Poverty Line (the Market Basket Measure), compared to 6.0% in 2022. The 2023 poverty rate for seniors represents a 30% decrease in the poverty rate compared to 2015 (7.1%). There were approximately 21,000 fewer seniors living in poverty in 2023 compared to 2015. The number of seniors living in poverty in 2023 was estimated at 373,000.
  • In 2023, the poverty rate for senior women (5.2%) was slightly higher than for senior men (4.9%).
  • Single seniors continue to have higher poverty rates than those living in families. The poverty rate for single seniors was 11.5% in 2023, while the poverty rate for seniors living in families rose was 2.7%.
  • In 2023, seniors aged 75 and older had a lower poverty rate (3.8%) than those aged 65-74 (5.9%). Both rates declined from 2015, when they were 7.6% and 6.8% respectively
  • In 2023, seniors from vulnerable groups such as Indigenous seniors living off reserve (7.9%), immigrant seniors (7.0%), seniors with disabilities (6.5%) and visible minority seniors (8.7%) had relatively higher poverty rates than the overall senior population (5.0%).
• According to the 2023 Canadian Income Survey, 9.0% of Canadian seniors experienced food insecurity in 2023 (measured as moderate or severe food insecurity), significantly lower than the national average (19.1%). Yet, this rate was up from 8.0% in 2022 and 6.3% in 2021.
• According to Food Banks Canada, a national charitable organization representing the food bank community across Canada, there were over 2 million visits to food banks in March 2024, an all-time high. About 158,600 or 7.7% of food bank visits were by seniors in March 2024, up from about 74,000 or 6.8% in March 2019.

Key messages

• Our Government is committed to continuing to build a strong economy that works for everyone by bringing down costs for Canadians - including seniors - and helping them to get ahead.
• We understand that food prices and overall cost of living are putting pressure on Canadians, including seniors. We are taking action to help ensure Canadians can meet their basic needs, including being able to afford nutritious food.
• To support seniors, the Government has made significant investments, including increasing the maximum GIS for single seniors, and increasing the OAS pension for seniors 75 and older. OAS benefits are also indexed quarterly to help keep up with the rising cost of living.
• We are also making historic investments in key initiatives that support seniors' well-being, such as Canada's Housing Plan and the Canadian Dental Care Plan.
• Our poverty reduction efforts are working. The poverty rate among seniors stood at 5.0% in 2023, which represents a 30% reduction since 2015.
• We will continue to stand with seniors who are feeling the impact of higher costs and ensure they have the support they need to meet their basic needs and live with dignity.

2. The Old Age Security pension

Issue

How is the Old Age Security (OAS) pension supporting seniors?

Background

• The OAS program plays a significant role in providing income security to Canadians in their senior years. Its objective is to provide a minimum level of income to seniors and contribute to their income replacement in retirement
• The benefits under the OAS program include:
  • the quasi-universal OAS pension, which is paid to all seniors aged 65 or over who meet the residence and legal status requirements
  • the Guaranteed Income Supplement (GIS) which provides additional support for OAS pensioners who have little or no income other than the OAS pension
  • the Allowances for low-income Canadians aged 60 to 64 who are the spouses or common-law partners of GIS recipients, or who are widows or widowers
• To ensure that they retain their value over time, OAS benefits are reviewed four times per year (in January, April, July and October) in accordance with changes in the Consumer Price Index (CPI). The CPI measures the price of a collection of foundational goods and services, such as food, shelter, gas and clothing, commonly purchased by Canadian households
• Quarterly indexation ensures that benefits are increased quickly when prices go up. In addition, the Old Age Security Act contains a guarantee ensuring that benefits can never be reduced, even in the event of a decline in the CPI

Key facts

• In 2023 to 2024, $76.1 billion was paid in OAS program benefits (OAS, GIS and Allowance) to 7.3 million beneficiaries this included $57.4 billion in OAS pension benefits
• In October 2025, a senior aged 65 to 74 can receive a maximum monthly OAS pension benefit of $740.09, while a senior aged 75 and over can receive a maximum monthly benefit of $814.10
• For the October to December 2025 quarter, OAS pension benefits increased by 0.7% compared to the July to September 2025 quarter, for a cumulative increase of 1.7% over the past year, from October 2024 to October 2025.In 2024-2025, 87.5% of OAS benefits were paid within the first month of entitlement, compared to 86.6% in 2023-2024 and 87.6% in 2022-2023. The service standard target is 90%
• In March 2025, the OAS program successfully migrated from its 60-year-old system to a new and modern system platform called Cúram
• Service Canada will continue to modernize OAS service delivery through a digital first approach and will continue to expand automation and the use of new and emerging technology such as Artificial Intelligence (AI) to enhance service to Canadians

Key messages

• The Government of Canada is committed to strengthening public pensions and improving the lives of Canada's seniors
• Since 2016, the Government has implemented several enhancements to the OAS pension to improve the financial security of Canadian seniors
• In 2016, the Government restored the age of eligibility for the Old Age Security pension to 65, preventing thousands of future 65- and 66-years olds from falling into poverty
• In July 2022, the Old Age Security pension was increased by 10 per cent for seniors aged 75 and over to provide additional support to seniors as they age
• The Government is also helping low-income OAS pensioners through enhancements to the Guaranteed Income Supplement (GIS). In 2016, the Supplement amount for the lowest income single seniors was increased by 10 per cent, providing up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter. In 2020, the Guaranteed Income Supplement Earnings Exemption was enhanced to further assist low-income seniors who work
• Since 2025, the Government is focused on bringing down costs, keeping communities safe, diversifying trade, and building one Canadian economy. It has already passed legislation to cut taxes for the middle class and first-time home buyers. The Government will continue to review measures to make life more affordable for Canadians
• With seniors among the fastest-growing segment of the Canadian population, the government is committed to ensuring Seniors receive the level of service they have come to expect while modernizing for the future
• As a Department, ESDC and Service Canada are committed to ensuring continued timely service delivery to seniors by simplifying communications to clients, streamlining processes, enhancing the client experience and increasing efficiencies through its digital first delivery focus and the use of automation and Artificial Intelligence (AI)

Questions and answers

Q1. How is entitlement to the OAS pension determined?

A1. To receive an OAS pension, a person must be at least 65 years of age, meet the residence requirements, and be lawfully in Canada on the day their application is approved.

The amount of a person's OAS pension is determined by how long they have resided in Canada:

• to qualify for a full OAS pension, a person must have lived in Canada for at least 40 years after the age of 18
• a person is eligible for a partial OAS pension if they have lived in Canada between 10 and 39 years after the age of 18. The partial pension is paid at the rate of 1/40 of the full amount for each year of residence in Canada after 18 years of age

Prorating the OAS pension based on the number of years of residence in Canada provides a good compromise between a person's contribution to Canadian society, and the right to a lifelong pension.

Q2. Why is the OAS pension higher for seniors aged 75 and over?

A2. In July 2022, the OAS pension was permanently increased by 10% for seniors aged 75 and over.

This measure was designed to help address the increased financial vulnerability that seniors face as they age.

Seniors are living longer than ever before. With increasing age, seniors tend to have lower incomes and often face higher health-related expenses because of the onset of illness or disability.

This financial vulnerability is further compounded by fewer opportunities to supplement income with paid work, and the risk of outliving personal savings.

Q3. The leader of the opposition party, the Honourable Pierre Poilievre, has stated that seniors are being affected by tariffs. What is the Government doing to reduce costs for seniors?

A3. Our Government is committed to strengthening public pensions and improving the lives of Canada's seniors.

To keep pace with the cost of living, OAS benefits are reviewed four times per year (in January, April, July and October) in accordance with changes in the CPI. Quarterly indexation allows for faster benefit increases. In the event of a decline in the CPI, the Old Age Security Act guarantees that OAS benefit amounts stay at the same level as during the previous quarter.

Because the OAS pension is indexed quarterly, benefit increases may look small. However, when the change in the inflation rate is taken into consideration over the course of a year, the increase is actually larger. For the October to December 2025 quarter, OAS benefits have increased by 0.7% compared to the July to September 2025 quarter, for a cumulative increase of 1.7% over the past year, from October 2024 to October 2025.

Moreover, since 2016 the Government has undertaken several measures to improve the financial security of low-income seniors.

• In 2016, the Government restored the age of eligibility for the OAS pension and the Guaranteed Income Supplement (GIS) to 65, preventing an estimated 100,000 future 65- and 66-years olds from falling into poverty
• The Government also increased the maximum GIS benefit for single seniors by 10 per cent, providing up to almost $1,150 in additional benefits in 2023, indexed to inflation every quarter, and the Guaranteed Income Supplement Earnings Exemption was enhanced to further assist low-income seniors who work
• In July 2022, the OAS pension was increased by 10 per cent for seniors aged 75 and over to provide additional support to seniors as they age

Since 2025, the Government is focused on bringing down costs, keeping communities safe, diversifying trade, and building one Canadian economy. It has already passed legislation to cut taxes for the middle class and first-time home buyers. The Government will continue to review measures to make life more affordable for Canadians.

Q4. On October 21, 2025, the National Post published an article by Dr. Paul Kershaw, founder of Generation Squeeze, entitled "Liberals urged to cut Old Age Security spending in upcoming budget". As in similar earlier articles, Dr. Kershaw is calling for OAS pension payments to be reduced for retired couples with incomes over $100,000, arguing that this proposal would save Canadians $7 billion per year, which would be enough to lift most of the approximately 400,000 seniors living in poverty to an adequate standard of living. Is the Government considering changes to the phase-out design of the Old Age Security Recovery Tax?

A4. Employment and Social Development Canada (ESDC) is aware of the proposal that has been suggested by Generation Squeeze.

As the OAS Recovery Tax is a measure that is legislated under the Income Tax Act, its design parameters fall within the purview of the Honourable François-Philippe Champagne, Minister of Finance and National Revenue.

See OAS Recovery Tax Issue Note for additional background.

3. Old Age Security (former Bill C-319)

Issue

What did Private Member Bill C-319 propose?

Background

• Private Member Bill C-319 was introduced by Ms. Andréanne Larouche (Bloc Québécois, Shefford) in the House of Commons on March 8, 2023. The Bill proposed two sets of amendments to the Old Age Security Act (OAS Act):
  • a 10% increase to the full monthly Old Age Security (OAS) pension for seniors aged 65 to 74, effective January 2023, and,
  • an increase to the amount of the full Guaranteed Income Supplement (GIS) Earnings Exemption from $5,000 to $6,500, and an extension to the partial earnings exemption from the next $10,000 of qualifying work income to the next $13,000 of qualifying work income, effective July 2023.
• This Bill expired when the 44th Parliament was dissolved on March 23, 2025, However, it is anticipated that the Bloc Québécois could reintroduce the Bill in the current 45th Parliament.

10% increase to the OAS pension for seniors 65 to 74

In July 2022, the OAS pension was permanently increased by 10% for seniors aged 75 and over. This increase was designed to address the fact that as seniors get older, they tend to have lower incomes and often face higher health-related expenses because of the onset of illness or disability. This increased vulnerability is further compounded by a reduced ability to work, the risk of outliving personal savings and the risk of becoming a widow or widower. This measure was put into place to help make life more affordable for Canadians as they age, and has benefitted over 3 million OAS pensioners aged 75 and over in 2023 to 2024.

GIS Earnings Exemption

The GIS Earnings Exemption is a provision under the OAS Act which allows GIS recipients who wish to remain active in the labour market to exempt a portion of their earnings from the calculation of their GIS benefit, helping them keep more of what they earn. Since July 2020, a GIS recipient can fully exempt up to $5,000 of their annual employment and/or self-employment earnings, as well as a 50% exemption of their next $10,000 of earnings. This provides a total exemption of $10,000 of a person's first $15,000 of employment and self-employment earnings. Bill C-319's proposed amendments to the GIS Earnings Exemption would increase the maximum exemption amounts from $10,000 to $13,000 for single seniors, and from $20,000 to $26,000 for senior couples where both members work.

Key facts

• In 2023- 2024, $76.1 billion was paid in OAS benefits to 7.3 million beneficiaries. This included $57.4 billion in OAS pension benefits to 7.3 million seniors and $18.4 billion in GIS benefits to 2.5 million low-income OAS pensioners.
• The Chief Actuary estimated that Bill C-319's proposed increase to the OAS pension would have provided higher benefits for 4.1 million OAS pensioners aged 65 to 74 in 2023-2024, the first full year of implementation, at a cost of $3.24 billion. These costs would increase over time with aging demographics and the quarterly indexation of OAS program benefits.
• Bill C-319's proposed increase to the GIS Earnings Exemption would have been available to 2.8 million GIS and Allowance beneficiaries (including 53,000 new beneficiaries) in 2024-25, the first full year of implementation, at a cost of $235 million. These costs would increase over time with population aging and benefit indexation.
• In total, the Chief Actuary estimated that Bill C-319's amendments to the OAS Act would have increased OAS program costs by $19.76 billion over the first six years, from fiscal year 2022-2023 to 2027-2028. These costs would increase significantly over time.

Key messages

• In the previous session of Parliament, the Bloc Québécois put forward Private Member Bill C-319, which primarily proposed to increase the amount of the full monthly OAS pension for seniors aged 65 to 74 by 10%.
• Implementing this Bill would have undermined the policy rationale for the targeted 10% increase to the OAS pension introduced in July 2022 for seniors aged 75 and over. These older seniors face greater financial vulnerability as they tend to have lower incomes and higher health-related expenses.
• Creating a single OAS pension rate for all pensioners, regardless of age, would mean that the OAS program would no longer reflect the differing needs and economic realities faced by these two age groups.

4. Combatting fraud for seniors

Issue

What is the Government of Canada doing to protect older persons in Canada from fraud

Background

• Awareness-raising activities have been a key strategy for preventing financial mistreatment and fraud at the federal level
• Employment and Social Development Canada plays a preventative and an active role regarding financial mistreatment and fraud of older persons through policies and programs, research and engagement, communication initiatives, and in its role as the federal focal point for issues affecting seniors
• In addition to Employment and Social Development Canada, the following federal departments and agencies have a lead role in helping Canadians, including seniors, identify signs of financial mistreatment, fraud, and deceptive sales practices: Finance Canada, the Financial Consumer Agency of Canada, and the Royal Canadian Mounted Police, including the Canadian Anti-Fraud Centre
• Finance is responsible for legislation that governs the market conduct of federally regulated financial institutions, including consumer protection requirements designed to protect all consumers, regardless of age
• The Financial Consumer Agency of Canada is a federal agency that protects financial consumers by supervising federally regulated entities for compliance with legislation, public commitments, and codes of conduct. This includes the implementation of the Financial Consumer Protection Framework in the Bank Act, as well as the Code of Conduct for the Delivery of Banking Services to Seniors
• The Canadian Anti-Fraud Centre is a national policing service that gathers intelligence on fraud across Canada and assists Police of Jurisdiction with enforcement and prevention efforts. The Canadian Anti-Fraud Centre also helps citizens and businesses report fraud, learn about different types of fraud, recognize the warning signs, protect themselves, and provide information to law enforcement and governments in Canada and around the world. The Canadian Anti-Fraud Centre is jointly managed by the Royal Canadian Mounted Police, the Competition Bureau Canada, and the Ontario Provincial Police

Key facts

• According to the overall data compiled by the Canadian Anti-Fraud Centre, under the purview of the Royal Canadian Mounted Police, older adults (60+) are the group most targeted by fraud in Canada, accounting for 23.4% of all fraud victims reported to the Canadian Anti-Fraud Centre in 2024, up from 15.5% in 2021^{Footnote 3}
• Based on fraud reported to the Canadian Anti-Fraud Centre in 2024, older adults (60+) lost at least $179.9 million to fraud in Canada (compared to $89.3 million in 2021), with nearly $111.3 million (61.9%) of that being lost to investment fraud (compared to $41.3 million in 2021)^{Footnote 4}
• The amount lost by older adults reported in 2024 represents 27.9% of the total $643 million lost to fraud in Canada that year, compared to 23% in 2021^{Footnote 5}

Key messages

• Too many Canadians, including seniors, fall victim to fraud, identity theft, and scams each year
• Our government is investing in the well-being of older Canadians, and we are steadfast in our mission to protect the dignity and security of those who built this country through a lifetime of hard work
• We take a whole-of-government approach to protect Canadians by implementing a number of activities to raise awareness among seniors to prevent fraud
• This includes protecting seniors through awareness campaigns such as Fraud Prevention Month, Cyber Security Awareness Month, and Financial Literacy month
• On October 20, the government announced that Budget 2025 will introduce Canada's first-ever whole-of-government National Anti-Fraud Strategy. As a first step, our government will introduce legislative amendments requiring banks to have policies to prevent and address fraud, while giving consumers more control over their bank accounts. All Canadians, especially seniors, would benefit from stronger fraud-related consumer protections
• The government will also establish a new Financial Crimes Agency to lead Canada's efforts in combatting sophisticated financial crimes
• The government will also work with stakeholders and banks to develop a Code of Conduct for the Prevention of Economic Abuse. Economic abuse - such as restricting access to money, sabotaging employment, or forcing debt - is a common yet under-recognised form of gender-based violence and financial harm. Seniors are also particularly vulnerable, especially when financial control or exploitation comes from family members or caregivers

Questions and Answers - Federal Anti-Fraud Strategy

Q1: What will be included in the federal strategy to address fraud?

A1: The intent of the strategy will be to establish a multi-sector approach to fighting financial fraud at all stages of its lifecycle - from preventing fraudsters' initial contact with victims, to preventing fraudulent transactions, to mitigating harms to fraud victims. The strategy will be led by Finance Canada, in collaboration with other key federal actors.

Q2. How long will it take to develop the strategy and what will be the next steps?

A2. Announcements about timelines and specific measures included in the strategy will follow.

Questions and Answers - Addressing Economic Abuse

Q1. What is a code of conduct? Why is it voluntary?

A1. Voluntary codes of conduct are established instruments in the Canadian financial sector. For example, the Code of Conduct for the Delivery of Banking Services to Seniors addresses specific consumer needs related to seniors. These codes are often developed through consultation with industry, consumer advocacy groups, and affected communities to ensure they reflect real-world challenges and workable solutions.

While it is voluntary for a bank to sign on to voluntary codes, adherence to such codes is monitored by the Financial Consumer Agency of Canada, ensuring transparency and accountability once banks sign on.

Q2. What is the goal of the Code of Conduct for the Prevention of Economic Abuse?

A2. At its foundation, the Code will recognize economic abuse as a serious form of harm that can significantly affect an individual's ability to maintain control over their finances and make independent decisions. The goal would be to ensure that banks can respond to economic abuse in ways that reduce harm and support long-term financial stability.

By adopting the Code, banks will acknowledge the role they plan in helping clients who may be living in, or recovering from, abusive situations. The Code will provide a framework of shared commitments, while allowing flexibility for banks to adapt their approaches to their own operations.

G. Disability and accessibility

1. Way Forward on Barrier-free Canada by 2040

Issue

Progress on the implementation of the Accessible Canada Act (ACA), which will help support Canadians get ahead by removing and preventing barriers to full participation in the workforce and in society.

Background

• The ACA came into force in 2019 and has the overarching goal of realizing a barrier-free Canada by 2040 through the proactive identification, removal and prevention of barriers to accessibility in seven (7) priority areas including built environment, employment, digital technologies, service delivery, procurement, transportation and communication. The ACA applies to a wide range of federally regulated entities including government departments and agencies, Crown corporations, Parliament and certain private sectors like banking and transportation service providers such as airlines.
• Regulation making and compliance authorities under the ACA are shared across three government organizations, including:
  • the Canadian Radio-television and Telecommunications Commission (CRTC), which is responsible for regulatory oversight of the telecommunication and broadcasting sector
  • the Canadian Transportation Agency (CTA), which is responsible for regulatory oversight of the national transportation system and
  • Employment and Social Development Canada, acting on behalf of the Governor in Council, which has the authority to make regulations in all other areas not covered by the CRTC or the CTA; compliance promotion and enforcement of these regulations is the responsibility of the Accessibility Commissioner, housed within the Canadian Human Rights Commission

Key facts

Implementation of the ACA is well underway with the establishment of two new roles and one new organization under the ACA

• Accessibility Standards Canada (ASC) was established in 2019 with a mandate to develop national accessibility standards. These standards are voluntary. If adopted into regulation, they become mandatory. To date, ASC has published two new standards in the areas of employment and accessible-ready housing, and adopted the European standard on digital accessibility for use in Canada. The organization has collaborated with CSA Group to publish standards such as Accessible dwellings and Accessible design for self-service interactive devices, and has many technical committees working to develop standards in areas such as accessible childcare centres and accessible tourism.
• Canada's first Chief Accessibility Officer (CAO), Stephanie Cadieux, was appointed in May 2022. The CAO published their second annual report in June 2025 with a focus on employment.
• Canada's second Accessibility Commissioner (AC), Christopher Sutton, was appointed in May 2025. The AC published their third annual report in September 2025, with a focus on the progress made related to the enforcement of the Accessible Canada Regulations planning and reporting requirements in the private and public sectors.

Significant progress has been made on regulatory development

• Three sets of accessibility planning and reporting regulations were published in December 2021. These regulations that operationalize requirements related to accessibility plans, progress reports, feedback processes and administrative monetary penalties.
• The Department also published the first phase of draft digital accessibility regulations in Canada Gazette, Part I, in December 2024. Once finalized, these regulations will set accessibility requirements for new websites, mobile applications and digital documents such as PDFs - and support capacity building to enable future accessibility improvements in areas such as Artificial Intelligence. The Department is now working to finalize the regulations based on feedback received during the public comment period. Digital technologies are a significant part of people's daily life and are also an important element of the employment continuum for persons with disabilities and other Canadians.
• The Department will also collaborate with the disability community, regulated entities and other implicated stakeholders to develop guidance materials aimed at helping regulated entities understand and comply with the new accessible digital technologies requirements.
• Due to the complexity of the digital accessibility space, a further set (Phase 2) of digital accessibility regulations will address more complex digital technology areas such as artificial intelligence tools and/or software. The Department is closely monitoring standards developed by ASC to inform future regulatory development.

The Government has invested and continues to invest in advancing accessibility and disability inclusion and building capacity within the disability community

• Since 2019, the Accessible Canada Fund has provided $2.7M in annual funding to support community-led projects that celebrate National AccessAbility Week and help build capacity and create necessary partnerships between the disability community and other sectors. The Department also provided $5.5M under the Opportunities Fund for Persons with Disabilities to support five projects that aim to enhance access to professional sign language interpretation.
• The Department has also hosted three Canadian Congresses on Disability Inclusion since May 2022. These events, which brought together academia, the general public, the disability community and all levels of government to exchange ideas and insights regarding accessible and inclusively designed communities and workplaces reached over 11,000 participants from across Canada and beyond.
• Lastly, in recognition that federal effort alone is not enough to realize a barrier-free Canada, the Department is finalizing an Accessible Canada Roadmap (the Roadmap). Once finalized, the Roadmap will set out a national vision that helps guide cohesive and complimentary action on accessibility across Canada and in all levels of Canadian society.

Measuring progress in the removal of barriers is an important aspect of the implementation of the ACA

In order to build the evidence base, the Department published a Federal Data and Measurement Strategy for Accessibility in 2022. The Strategy aims to provide Canadians with comprehensive information and data on barriers to accessibility. In implementing the Strategy, The Department works with Statistics Canada and other federal partners to collect and publish accessibility data that will support measuring progress towards a fully accessible Canada.

Key messages

• The Government of Canada remains committed to advancing accessibility and disability inclusion. Ensuring the economic, social and civic participation of all persons in Canada, including persons with disabilities, is essential to creating a better Canada where no one is left behind.
• The Government introduced the landmark Accessible Canada Act in 2019 with the goal of creating a barrier-free Canada by January 1, 2040.
• It stands as one of the most significant achievements ever for disability rights in Canada and the legislation has been recognized internationally for its broad scope of application and its proactive approach to removing barriers to accessibility.
• The reality is that with 27% of Canadians aged 15 and older having at least one disability and an aging population that is likely to experience disability in some way in the future, we can no longer afford to think about accessibility as an afterthought.
• With its focus on identifying, removing and preventing barriers, the ACA is paving the way for the widespread adoption of an inclusive culture across Canada. To date, regulated organizations have published their first accessibility plans, and many have published their first and second progress reports demonstrating their commitment to identifying, removing and preventing barriers.
• Digital technologies are a significant part of people's daily lives and are also an important gateway to employment. The Government published the draft regulations dealing with accessible digital technologies in December 2024. Stakeholder comments are being analyzed to inform the final regulations.
• I'm committed to working with my Cabinet colleagues to ensure that they consider accessibility and inclusion in their work, so that we avoid introducing new barriers as we advance other federal priorities.

2. Employment Strategy for Canadians with Disabilities

Issue

Persons with disabilities continue to face barriers to employment and advancement in Canada's labour market. The Employment Strategy for Canadians with Disabilities provides the framework to close the employment gap between Canadians with and without disabilities by 2040.

Background

• The Employment Strategy for Canadians with Disabilities, launched in July 2024, is the first national framework designed to improve employment outcomes for persons with disabilities.
• The Strategy fulfilled a commitment from the 2020 Speech from the Throne and was reaffirmed in Budget 2022, by providing $272.6 million over five years (2022-2027) to support its implementation through the Opportunities Fund for Persons with Disabilities.
• The Strategy aims to close the employment gap between Canadians with and without disabilities by 2040, addressing the persistent barriers that limit participation and advancement in the labour market.
• The Strategy builds on the Opportunities Fund, created in 1997, which provides $40 million annually to fund projects that help persons with disabilities prepare for, obtain, and maintain employment. The Opportunities Fund also helps employers create inclusive and accessible workplaces and recruit, hire, and retain persons with disabilities.
• The Strategy takes a holistic and intersectional approach, by using three pillars:
  • individuals - helping persons with disabilities find and maintain good jobs, advance in their careers, or become entrepreneurs
  • employers - helping them diversify their workforces and create inclusive and accessible workplaces
  • enablers - increasing the capacity of individuals and organizations that promote disability inclusion and accessibility in employment

Key facts

• 8 million Canadians (27%) aged 15 and over have at least one disability (2022 Canadian Survey on Disability, Statistics Canada).
• Over 1 million working-age Canadians with disabilities (15-64) who are not employed report that they could work if the right supports were in place (2022 Canadian Survey on Disability, Statistics Canada).
• Employment rate: 67.1% for persons with disabilities aged 15-64 compared to 83% for those without - a 16-point gap (2024 Labour Force Survey).
• Budget 2022 provided $272.6 million over five years (2022-2027) to implement the Employment Strategy for Canadians with Disabilities.
• $40 million annual base funding through the Opportunities Fund, supporting ~120 projects, over 6,000 participants, and 4,000 employers each year.
• Opportunities Fund program results (Evaluation 2022-23): participants' average annual earnings increased by 38%, and each $1 invested in skills training generates up to $4.40 in economic return over 10 years.

Key messages

• Persons with disabilities continue to face real barriers to finding and keeping good jobs. That's why our government is focused on breaking down those barriers and building more inclusive workplaces across Canada.
• In July 2024, we launched Canada's first-ever Employment Strategy for Canadians with Disabilities - a national framework that will help close the employment gap between Canadians with and without disabilities by 2040.
• The Strategy is supported by $272.6 million over five years through the Opportunities Fund for Persons with Disabilities. It builds on the $40 million already provided annually through the Opportunities Fund for Persons with Disabilities program. These investments are helping over 6,000 Canadians with disabilities and 4,000 employers each year through nearly 120 community projects across the country.
• These projects help persons with disabilities gain skills, prepare for work, and succeed on the job - while also supporting employers to create inclusive workplaces. It also includes dedicated initiatives for Black, Indigenous, and other racialized persons with disabilities.

3. Canada Disability Benefit

Issue

How the Canada Disability Benefit is being implemented

Background

• In June 2025, the Government of Canada successfully launched the new Canada Disability Benefit (CDB) and recipients began receiving payments in July 2025
• The CDB is intended to supplement, not replace existing federal and provincial/territorial programs and benefits by providing a maximum of $2,400 per year to low-income persons with disabilities between the ages of 18 and 64
• To be eligible for the benefit, individuals must be approved for the Disability Tax Credit (DTC) and meet other eligibility criteria
• In the spirit of "Nothing Without Us", the CDB application and invitation to apply letters were tested with the disability community. Feedback from the testing was incorporated, to ensure that the CDB application process was made as barrier-free as possible
• Budget 2024 announced $6.1 billion over 6 years for the CDB, beginning in 2024-2025, and $1.4 billion per year ongoing, including costs to deliver the benefit, with first payments in July 2025. The Budget also included funds for community-based navigation services to improve awareness and take-up of federal and provincial/territorial programs, including the CDB (led by Employment and Social Development Canada)
• Budget 2025 proposes funding of $115.7 million over 4 years, beginning in 2026-2027, and $10.1 million per year ongoing for a one-time supplemental CDB payment of $150 in respect of each DTC certification, or re-certification, giving rise to a CDB entitlement. The first supplemental payments are expected to be made to CDB recipients before the end of 2026-2027
  • Separate from this work, the government is committed to looking at ways to provide such a payment in respect of other DTC certifications as part of its work to review and reform the process to apply for the credit

Key facts

• The CDB is a new statutory income-tested benefit intended to support the financial security of working-age persons with disabilities
  • Persons with disabilities aged 18-64 are significantly more likely than their peers without disabilities to be living in poverty (14.7% compared to 8.6%, 2023 Canadian Income Survey).
  • The employment rate of persons with disabilities aged 25 to 64 was 67.1% in 2024, compared with 83.0% among those without disabilities. This represents an employment gap of 15.9% (2024 Labour Force Survey)
  • The employment rate of persons with more severe disabilities aged 25 to 64 is substantially lower than those with less severe disabilities-only 54.2% of those with severe disabilities and 32.0% of those with very severe disabilities were working in 2024 (2024 Labour Force Survey)
• Budget 2025 re-confirms the government's intention to bring forward legislation to exempt the CDB from being treated as income under the Income Tax Act (ITA)
• An amendment to the ITA is needed to help prevent CDB clawbacks from other federal, provincial and territorial programs and benefits that use the ITA definition of income

Post program launch

• Since applications opened in June 2025, as of November 2, 2025, over 320K applications have been processed and more than 218K clients have received payments
• In total, $155 million has been paid out between July and October 2025: $18 million in July, $39 million in August, $43 million in September and $54 million in October
• Eligible applicants may receive back payments for up to 24 months from the date Service Canada receives their application (excluding months prior to the June 2025 launch of the program)
• The CDB Call Centre continues to respond to high volumes, with over 173K calls answered between June 9 and November 2, 2025, with an average wait time of approximately 11 minutes

Key messages

• The CDB is the cornerstone of Canada's Disability Inclusion Action Plan, representing a significant step in reducing poverty and improving financial security for working-age persons with disabilities
  • It is estimated that this benefit could improve the financial well-being of over 600,000 low-income individuals, helping reduce poverty and promote inclusion
• In June 2025, the Government of Canada successfully launched the new CDB to support the financial security of working-age Canadians with disabilities. The first payments began in July 2025
• People who are eligible for the DTC, have filed their taxes, and meet the income thresholds for the CDB have received a letter inviting them to apply for the benefit
  • As of November 2, 2025, over 400K potential beneficiaries have been sent a letter inviting them to apply for the Benefit
  • Individuals who do not receive a letter of invitation can still apply online, by telewriter, through the Canada Video Relay Service, by mail, in person at a Service Canada Office or through a Community Outreach and Liaison Service and via telephone
• The maximum CDB amount is $200 per month ($2,400 annually) for the first year, with annual inflation adjustments starting in July 2026

Amendment to the Income Tax Act

Budget 2025 confirms the government's intention to bring forward legislation to exempt the Canada Disability Benefit from being treated as income under the ITA

Disability Tax Credit

• Using the DTC streamlines and simplifies the application process for the many working-age persons with disabilities who are already qualified for the tax credit
• Basing disability eligibility for the CDB on the DTC ensured that the CDB could be delivered in a consistent and equal way across Canada and that the program could be launched quickly, since the DTC already existed and many Canadians with disabilities had already applied and been approved for the tax credit
• The DTC can provide access to many other federal programs, such as the Registered Disability Savings Plan, including the Canada Disability Savings Bond and the Canada Disability Savings Grant, and the Canada Workers Benefit disability supplement. The government is aware that, for many, obtaining a valid DTC certificate to become eligible for the CDB can represent a financial barrier
• Budget 2025 reaffirms the government's intention to lower barriers to access the CDB by helping to offset the costs of applying for the DTC. This will be through a supplemental CDB payment of $150 for each DTC certificate or re-certification, giving rise to a CDB entitlement. This supplemental payment would be retroactive to the launch of the CDB, with the first payments expected before the end of 2026-2027
• In addition, the government is committed to looking at ways to provide such a payment in respect of other DTC certifications as part of its work to review and reform the process to apply for the credit

Navigator Services

• In addition, the Department has invested in community-based navigation services to improve awareness and take-up of federal, provincial, and territorial programs available to working-age Canadians with disabilities, including the DTC and the CDB
  • These organizations are well positioned to provide disability benefits navigation in accessible and culturally appropriate ways
  • Their reach extends across Canada including to persons with marginalized identities, cross-disability populations, and those living in rural and remote areas

Service Delivery

• Service Canada is working with the Canada Revenue Agency (CRA) to leverage all available client information through a data sharing agreement to ensure clients are not repeatedly providing the same information to the Government of Canada
• The CDB is being promoted to persons with disabilities through Service Canada's Community Outreach and Liaison Service
  • This service builds relationships with community organizations to raise awareness of and offer application support for programs and benefits through application intake clinics, support to acquire personal identity documents and assistance with tax and benefit form filing
  • This includes dedicated capacity to reach all Indigenous communities and an effort to reach a broad range of demographic groups, including vulnerable and harder to reach populations
• Client feedback has been received from the post-online application survey. As of September 30, 2025, the results show:
  • 82% satisfaction with the application process
  • 91% found the process easy to complete
  • 81% understood next steps
  • 85% found the application quick to complete, and
  • 88% found the process to be barrier-free

Delay in Payment

• In August 2025, a system issue resulted in a delay in payment for a limited number of Canada Disability Benefit recipients. The issue was caused by discrepancies in client bank account data received from the CRA
• Service Canada, in close collaboration with the CRA, took immediate corrective action and payments were reissued to affected clients within 3 business days from the time the issue was identified
• The Department is actively working to address all underlying systems issues to ensure that upcoming payment cycles are completed in full and in adherence with published payment dates

CDB amount and Employment Income Exemption

• During a review of applications in July, a discrepancy was identified in the calculation of applicants' employment income and their Working Income Exemption. As a result, some eligible applicants may have received either no payment or a lower payment than their entitlement
• Potentially impacted clients were made aware of the calculation discrepancy and advised by letter that their file would be recalculated, and they would be notified of the result. File revisions for those who receive no payment has commenced
• Service Canada is actively working to resolve outstanding files. In the coming weeks, once the files have been revised, potentially impacted clients will receive another letter subsequently advising that the revision to their file is completed

H. Service Delivery

1. Benefits Delivery

BDM - Overview

Issue

What is the status of the Benefits Delivery Modernization (BDM) programme?

Background

• BDM is a large-scale digital transformation of Service Canada's benefits delivery experience for its key statutory programs: Old Age Security (OAS), Employment Insurance (EI), and the Canada Pension Plan (CPP).
• At its core, BDM helps to protect vulnerable populations by replacing old, fragmented systems that underpin the delivery of over $160B in annual benefits (~5.6% of Canada's GDP).
• Through a new modern platform, BDM will scale technology solutions and help to address critical risks, while also leveraging technological advancements to improve client experience, drive productivity, increase policy agility, and reduce costs.
• BDM supports the Minister's mandate to develop and implement modern, resilient, secure, and reliable services and benefit delivery systems for Canadian citizens.

Key facts

• At an estimated $6.6B, the total cost over the 10-year life of BDM will amount to less than 0.5% of the total benefit payout of more than $1.6 trillion. BDM funding is allocated within a special purpose allotment, strictly designated for BDM initiatives only.
• BDM is being implemented through three overlapping tranches that sees key statutory programs - OAS, EI and CPP - onboarded to a common benefits delivery platform over the 2021-2022 to 2030-2031 period.
• BDM also seeks to enhance the user experience by replacing aging call centre technology, and ensuing clients have a secure way to authenticate themselves, protecting individuals and their benefits.
• BDM's approach allows for early value through a transformed service experience while also maintaining business continuity, and incrementally advancing the standardization of operations, technology and processes. The work is supported by an established vendor ecosystem with transformational and IT experience.
• In March 2025, BDM migrated from the OAS legacy system, impacting 7.4M clients and over 6,600 Service Canada staff. The migration also built on earlier BDM achievements, including generative AI tools (AssistMe) to better support the transition of processing representatives using the new system. Additionally, the implementation of benefits estimators for OAS and EI to help clients in managing their benefits.
• BDM has funding in place until 2028-29. BDM will be seeking additional funding to support the planning, build, and implementation phases for Integrated Pensions on BDM. This work will onboard CPP onto BDM and further transform service delivery for seniors.

Key messages

• BDM is focused on the modernization and streamlining of the benefits systems, to deliver faster decisions, shorter wait times and less paperwork; BDM officials want senior decision-makers to hold us accountable for our commitments.
• In the short to medium term, BDM is looking to build on the success of OAS on BDM as it ramps up efforts tied to both EI and call centre optimization.
  • EI is the next program to undergo BDM transformation through a multi-year series of small and well-measured releases, starting with the migration of Compassionate Care Benefits for the self-employed in November 2025.
  • BDM is working with Shared Services Canada (SSC) to proceed with the new cloud-based CCaaS solution for ESDC. The project goal is to both replace the legacy platforms with the Genesys Cloud platform, and to further transform service delivery.
• In the longer term, BDM is committed to establishing an integrated benefits delivery platform that will allow for an efficient transition to Service Canada operations by 2030-2031.
• Using the recent deployment of OAS on the Cúram platform as a foundation, BDM will continue to identify and define metrics and indicators to support long-term outcomes including productivity, employee and channel efficiency and citizen experience. The Programme's business case will continue to evolve to support departmental transformation.

a. EI on BDM

Employment Insurance

Employment Insurance Processing

• In 2025-2026, as of the week ending September 20, 2025, 85.0% of Employment Insurance (EI) payments, or notifications of non-payment, were made within 28 days, surpassing the target of 80%. For the same period in 2024-2025, 85.1% payments, or notifications of nonpayment, were made within 28 days.
• In 2025-26, as of August 31, 2025, the average number of days it took for a client to receive their first EI benefit payment was 16 days, compared to an average of 18 days over the same period in 2024-2025 and 20 days in 2023-2024.
• In 2025-2026, as of the week ending September 20, 2025, 1,509,780 EI Initial and Renewal applications have been received and 1,482,527 have been processed.
• In 2024-2025, Service Canada received and processed 3.2 million claims.
• The EI program monitors applications on a weekly basis and uses all available capacity to process those applications in a timely manner. A National Operating Model is used to manage EI workload, ensuring intakes are assigned to the next available officer anywhere in the country.

EI Call Centre Wait Times

• In 2025-2026, as of the week ending September 19, for the year-to-date, the EI Call Centre had an average wait time of 5 minutes (the service standard is to answer 80% of calls within 10 minutes). For the same period in 2024-2025, the Call Centre had an average wait time of 5 minutes, and 4 minutes for the same period in 2023-2024.
• In 2025-2026, as of the week ending September 19, 2025, for the year-to-date, the EI, Call Centre has answered 2.6 million calls. For the same period in 2024-2025, the Call Centre had answered 2.8 million calls, and 2.8 million calls for the same period in 2023-2024.

Pensions

Old Age Security Processing

• The OAS service standard is to issue 90% of benefits payments within the first month of entitlement, and for 2025-2026, as of the end of August 2025, Service Canada is close to achieving this standard, having paid 88.6% of OAS benefits within the first month of entitlement. This was a slight increase from the year-to-date result of 87.2% for the same period in the previous year.
• In 2024-2025, as of October 31, 2024, the OAS program received 589,000 applications and paid $47.5 billion to approximately 7.4 million beneficiaries each month.

Guaranteed Income Supplement Processing

• In 2024-2025, as of October 2024, 2.5 million individuals currently receive Guaranteed Income Supplement (GIS) benefits. For the same period in 2023, 2.4 million individuals received a GIS benefits. Entitlement for the GIS is reassessed automatically by Service Canada every year in July based on the previous year's income, which means that clients do not need to re-apply every year.
• The 2025 GIS renewal process went very smoothly in the new Curam system. The annual GIS reassessment was completed on July 11, 2025, and resulted in 96.1% of individuals having their GIS successfully reassessed automatically - the highest automatic renewal rate ever seen - largely due to additional simplification and automation features made possible through Curam.

Canada Pension Plan Processing

• In 2025-2026, as of August 31, 2025, for Canada Pensions Plan (CPP) Retirement benefits, 84.0% of clients were paid within the first month of entitlement (target is 90%). For the same period in 2024, 96.5% of CPP Retirement benefits were paid within the first month of entitlement.
• In 2025-2026, as of August 31, 2025, 65.2% of CPP death benefit decisions were made within 45 calendar days (target is 80%). For the same period in 2024, 84.5% CPP Death Benefit decisions were made within 45 calendar days.
• As of August 31, 2025, 62.4% of CPP survivor benefit decisions were made within 45 days (target is 80%). For the same period in 2024, 84.1% of CPP Survivor Benefit decisions were made within 45 calendar days.
• In 2025-2026, as of September 28, 2025, the CPP program received approximately 308,000 applications and paid $30.9 billion to approximately 6.5 million beneficiaries

Canada Pension Plan Disability Processing

• In 2025-2026, as of August 31, 2025, 65.5% of CPP Disability (CPPD) initial applications were processed within 120 days (target is 80%). For the same period in 2024, 50.7% of CPP-D Regular Application decisions were made within 120 calendar days.
• In 2025-2026, as of August 31, 2025, 87.9% of CPPD terminal illness application decisions were completed within 5 calendar days (target is 95%). For the same period in 2024, 91.3% of CPP-D Terminally Ill Application decisions were made within 5 business days.
• In 2025-2026, as of August 31, 2025, 84.6% of CPPD grave condition application decisions were completed within 30 calendar days (target is 80%). For the same period in 2024, 85.8% of CPP-D Grave Condition Application decisions were made within 30 calendar days.
• In 2025-2026, as of August 31, 2025, 34.8% of CPPD requests for reconsideration were completed within 120 calendar days (target is 80%). For the same period in 2024, 57.1% of CPP-D Requests for Reconsideration decisions were made within 120 calendar days.
• In 2025-2026, as of September 28, 2025, the CPPD program received 45,000 applications and paid $2.2 billion to approximately 378,000 beneficiaries.

Pensions Call Centre Wait Times

• In 2025-2026, as of the week ending September 19, for the year-to-date, the Pensions Call Centre had an average wait time of 18 minutes (the service standard is to answer 80% of calls within 10 minutes). For the same period in 2024-25, the Call Centre had an average wait time of 11 minutes, and 11 minutes for the same period in 2023-2024.
• In 2025-26, as of the week ending September 19, for the year-to-date, the Pensions Call Centre has answered 1.5 million calls. For the same period in 2024-2025, the Call Centre had answered 1.4 million calls, and 1.3 million calls for the same period in 2023-2024.

b. OAS on BDM

Issue

What is the status of OAS on BDM?

Background

• The Government of Canada (GC) needs technology that can respond to the changing everyday needs of Canadians, ensuring that our high-quality services continue to be delivered.
• The Benefits Delivery Modernization (BDM) Programme is a long-term, strategic undertaking to modernize the delivery of Old Age Security (OAS), Employment Insurance (EI) and Canada Pension Plan (CPP) benefits, providing a single point of access for Canadians and ensuring reliable, accurate payments.
• BDM is on track to modernize OAS, EI, and CPP over three phases, with an expected completion date of 2030-31. OAS is the first benefit to onboard the new, modern BDM Common Benefits Delivery platform.
• In March 2025, BDM moved all 7.4M OAS clients from legacy systems to the new benefits delivery system, a change which impacted more than 6,600 Service Canada employees. The new system has been delivering OAS benefit payments since its implementation.
• In parallel to the project, an OAS Benefits Estimator was launched online in June 2023 and has had, to date, over 1.2 million visits.

Key facts

• The BDM Programme supports the Minister's mandate to develop and implement modern, resilient, secure, and reliable services and benefit delivery systems for Canadian citizens.
• In March 2025, BDM successfully migrated 7.4M OAS clients from the OAS legacy system to the new benefits delivery system. OAS clients are now being served via the Common Benefit Delivery (CBD) platform, which introduced a redesigned OAS/GIS application, the ability to upload supporting documents directly, the ability to update life events (for example, marital and legal status changes), and other self-service features (for example, requests for reconsideration and voluntary tax deduction) for our OAS benefit recipients.
• The project is currently in the stabilization phase. Additional system releases were scheduled during this nine-month period to enhance user experience and resolve issues as needed. Release 3.1 occurred in June 2025, and Releases 3.2 and 3.3 are scheduled for October and December 2025, respectively.
• Following completion of the OAS on BDM project in December 2025, OAS will transition to ongoing operational maintenance effective January 2026, with minor enhancements also planned throughout 2026 to ensure continued improvements to the new system.
• The OAS on BDM project has successfully adhered to three guiding principles:
  • The product delivered all Legacy system functionalities and met or exceeded the Legacy service standards on Day 1.
  • Accurate and timely payments to seniors have been prioritized and have not been put at risk.
  • Timing of the initial and subsequent releases are scheduled to minimize business impact.

Key messages

• The GC needs technology that can respond to the changing everyday needs of Canadians, ensuring that our high-quality services continue to be delivered. Putting vulnerable seniors' payments at risk is not an option.
• Canadians are already benefitting from this modern, stable OAS system deployed on current technology that can adapt quickly to changes in policy or legislation. It features new self-serve options, remains safe and secure, and ensures that benefits will be paid accurately and on time for years to come.
• The new benefits delivery platform boosts processing speed and reduces errors; staff productivity continues to rise with the automation of manual processes (e.g. GIS calculations).
• AI tools are also boosting productivity. For example, Assist-Me (ESDC's first generative AI-powered chatbot) provides accurate, real-time answers to over 90% of staff enquiries, helping agents deliver services effectively and focus on meaningful support. Assist-Me continuously improves learning from interactions and feedback, enabling it to deliver increasingly accurate and relevant support that evolves with staff needs and priorities.
• ESDC acknowledges that the implementation of the new system marked a significant change for employees. Training was provided before implementation to ensure a foundational understanding of the new system. To produce the best user-adoption results, this training has been coupled with continuous support, including work-integrated learning, a robust support model, and real-world experience with the system.
  • Original and additional training remains available to all employees, and the support model in place helps ensure successful and sustainable user adoption.
  • Productivity measures were adjusted for the transition period, allowing users to learn through hands-on experience without the pressure of unrealistic productivity standards. Employees are consistently meeting these adjusted targets, though not actively being measured against them - this underscores the department's commitment to a sustainable transition.
• Beyond its initial scope, BDM's core capabilities could scale to support the delivery of other programs and services across the Government of Canada in the future. Looking ahead, Service Canada will be better positioned to introduce new benefits and respond to policy changes more quickly and effectively.

2. EI Board of Appeal

Issue

What is the government doing to implement the Employment Insurance (EI) Board of Appeal?

Background

• First announced in August 2019, the Employment Insurance (EI) Board of Appeal is part of broader improvements to the EI and Income Security recourse processes, returning to a locally based tripartite model for first-level EI appeals.
• Consultations were held in summer 2022 with stakeholders, parliamentarians, and the public to shape the legislation to meet the needs of Canadians. The Budget Implementation Act, 2023, No. 1 received Royal Assent on June 2, 2023, introducing amendments to the Department of Employment and Social Development Act to establish the new independent EI Board of Appeal.
• This initiative supports the Minister's mandate commitment to improve the EI appeals process and ensure fair, client-centric service delivery.

Key facts

• The Employment Insurance (EI) Board of Appeal is a new, tripartite, decision-making body to replace the existing EI Section of the Social Security Tribunal's General Division, which will ensure greater regional representation and participation from employers, workers and government.
• Legislation that was introduced under the Budget Implementation Act, 2023, No. 1 in March 2023, to enable the creation of EI Board of Appeal, received royal assent and became law on June 22, 2023.
• Since 2023, key activities to launch the EI Board of Appeal are well advanced, in anticipation of the Coming into Force date, which will be set by Order in Council. These include:
  • in 2024, the selection process for EI Board of Appeal member appointments was launched
  • in March 2025, the Executive Head of the Board of Appeal was appointed
  • in March 2025, the EI Board of Appeal Regulations were published in the Canada Gazette, Part II

Key messages

• The Government is improving the Employment Insurance appeals process by launching the new Employment Insurance Board of Appeal, which will be dedicated to ensuring fair, impartial and client-centric decisions.
• Under this new decision-making body, first level Employment Insurance appeals will be heard by regionally dispersed, tripartite panels comprised of three members. One member will be appointed by the Governor in Council, acting as the presiding member, and two members will be appointed by the Canada Employment Insurance Commission, one from the worker community and one from the employer community.
• Key activities for the Employment Insurance Board of Appeal are progressing well, in anticipation of the launch date, which will be set by Order in Council.

3. Canada Dental Care Plan

Issue

How is Service Canada managing the application and renewal process for the Canadian Dental Care Plan (CDCP)?

Background

• Budget 2023 announced $13.0 billion over five years, starting in 2023-2024, and $4.4 billion to implement the CDCP.
• It is estimated that up to ten-and-a-half million individuals may be eligible for the plan once fully implemented.
• On behalf of Health Canada, Service Canada:
  • promotes the plan and provides information through targeted communication efforts and by responding to Canadians' enquiries
  • accepts applications and processes CDCP eligibility based on criteria determined by Health Canada
  • communicates enrolment information to applicants and to a Third-Party Administrator, Sun Life
  • provides application services and dedicated client support via call centres, digital services, and through its community outreach network across Canada
• Sun Life delivers the dental plan coverage to Canadians through a contract established by Health Canada and Public Services & Procurement Canada.
• The CDCP specialised call centre has responded to over 2.6M inquiries about the Plan since its launch in December 2023.
• In March 2025, Service Canada launched for the first time its annual renewal system, enabling existing members to renew their coverage.
• As of October 21st, of the 3,218,132 total renewal applications completed, just over 88% (2,870,574) are eligible, suggesting communication efforts on who can apply, when, and how have been strong.
• For the current 2025-2026 benefit year, from June 1st to October 21st, 2025, Service Canada has received 7,012,920 completed applications, including:
  • 3,145,077 from individuals aged 65 and over
  • 914,899 for children under the age of 18, and
  • 2,952,944 from adults aged 18 to 64

Key facts

• The Canadian Dental Care Plan (CDCP) is led by Health Canada and aims to reduce cost barriers to oral health care to the greatest extent possible, with a focus on diagnostic, preventative, and restorative services.
• As of October 21, 2025, over five million (5,440,387) Canadians are currently enrolled for benefits, and 3.13 million clients have received care since applications opened in December 2023. So far, this fiscal year (April 2025), Sun Life has paid out over $2 billion in approved claims.
• Through its Community Outreach and Liaison Service, Service Canada promotes the Canadian Dental Care Plan with a focus on vulnerable populations who face barriers.
• As of October 30, 2025, the department conducted over 34,750 liaison services with community organizations and facilitated over 6,600 outreach events, reaching approximately 147,600 participants to raise awareness of and assist with the Canadian Dental Care Plan.

Key messages

• The Canadian Dental Care Plan has significantly improved affordability and access to dental care for millions of Canadians across the country.
• Since the Canadian Dental Care Plan was launched in December 2023, over five million Canadians have been enrolled in the plan and over three million have received care, helping millions of Canadians get the dental care they need.
• All eligible Canadians now have access to the Canadian Dental Care Plan.

4. Passports and Workforce Alignment

Issue

Service Canada has aligned its workforce levels to reflect projected lower passport demand in 2025-2026 to remain fiscally responsible while maintaining timely delivery of the Passport Program.

Background

• ESDC/Service Canada continually assesses its workforce levels to align with forecasted volumes to make sure the Passport program is adequately staffed. ESDC/Service Canada carefully manages its spending and human resources to support the continuity of operations allowing the Department to fulfil its mandate to serve Canadians, while ensuring that future operations remain sustainable and deliver the best value for money for Canadians.
• ESDC/Service Canada has measures in place to monitor performance against service standards, respond to unforeseen surges, and adapt to changing client needs.

Key facts

• The Passport Program is led by Immigration, Refugees and Citizenship Canada (IRCC). On behalf of IRCC, Service Canada leads the delivery of the Passport Program to Canadians in Canada.
• The Passport Program budget is based on the volume of applications forecasted by IRCC. IRCC has projected lower passport volumes in 2025-2026.
• Workforce alignment is underway to reflect forecasted volumes.
• An early termination of 800 term employees took place in June 2025, another 184 term employees in August 2025 and an additional reduction of 134 employees (107 indeterminate and 27 term) is currently underway.
• Through workforce adjustment, the indeterminate employees affected by the reduction will have supports, including guarantee of a reasonable job offer and priority status where possible.

Key messages

• As a full cost-recovery program, the Passport Program must align workforce capacity with the service demand and balance revenues with costs, including employee salaries.  
• IRCC has projected lower passport demand in 2025-2026 compared to 2024-2025.
• As a result of this projected reduction in passport demand, Service Canada has been adjusting its passport workforce since June 2025 to align with the forecasted volumes.
• Service Canada is taking steps to monitor Passport service results to make sure that Canadians receive timely passport services.
• As of October 26, 2025, Service Canada is surpassing its annual service standard for the Passport Program, with 91% of complete applications being processed within the service standard.

I. Corporate issues

1. Q&As for FTEs published in ESDC's 2025-2026 Departmental Plan

Q: What are Planned FTEs?

A: Planned FTEs are a measure of the extent to which an employee represents a full person-year charge against the departmental budget for future spending years. Full-time equivalents are calculated as a ratio of assigned hours of work to scheduled hours of work. Scheduled hours of work are set out in collective agreements.

FTEs are not the same as Headcount.

Q: What are FTE forecasts based on?

A: The FTE forecasts for fiscal year 2024-2025 are based on the confirmed salary spending authority, as approved by the Treasury Board at the time of the departmental plan's development.

Q: What are actual FTEs based on?

A: The actual FTEs are derived from the final salary spending at the end of the fiscal year and are reported in the Departmental Result Reports.

Q: How are Planned FTEs calculated in the Department Plan?

A: They are based on funding in the Department's reference levels, as per approved Treasury Board submissions and the 2025-2026 Main Estimates.

Generally, when salary operating budget is added to the Department's reference levels it will increase Planned FTEs. An increase to the reference levels would require a new funding decision, a Treasury Board submission, and when necessary, inclusion in an Estimates.

Q: Why is there a reduction of 1,617 between the Planned FTEs in fiscal year 2025-2026 compared to the forecasted FTEs in fiscal year 2024-2025?

A: The reduction in planned FTEs is mainly attributable to:

• a reduction in planned FTEs for the delivery of Passport services and other service delivery partnerships on behalf of other government departments, such as the Canadian Dental Care Plan, impacting the planned FTEs in future years
• lower FTEs for specific measures including the processing and payments of Employment Insurance and Old Age Security benefits

Q: Why is there a reduction of 5,090 Planned FTEs between fiscal years 2025-2026 and 2027-2028 in ESDC's 2025-2026 Departmental Plan?

A: The decrease of 5,090 planned full-time equivalents (FTEs) from fiscal year 2025 to 2026 to fiscal year 2027 to 2028 is mainly explained by:

• a reduction in temporary resources provided for the delivery of various departmental programs and initiatives such as Employment Insurance, Old Age Security and CPP processing and payments, as well as the Temporary Foreign Worker Program and Canada Summer Jobs
• modernization efforts and other efficiencies aimed at delivering Passport services and the Canadian Dental Care Plan, as well as partnership agreements to be renewed
• a decrease of FTEs for internal services, mainly explained by reductions in permanent funding and the sunsetting of funding for the corporate costs associated with various initiatives

The variance in Planned FTEs will diminish when additional budget is added to the Department's reference levels after the 2025-2026 Main Estimates, as a result of new funding decisions and the renewal of partnership agreements.

The final item approved for inclusion in ESDC's 2025-2026 reference levels received Treasury Board decision on February 18, 2025.

2. Q & A on ESDC Contracting - Fiscal Year 2025 to 2026 Update

Question 1: What is the value of professional services expenditures by Employment and Social Development Canada (ESDC)?

In fiscal year 2024 to 2025, ESDC reported $998.5 million in professional and special services expenditures, a decrease from $1.02 billion in 2024. Most of these expenditures supported core operational and modernization priorities, including:

• Business Services ($454M): Operational support such as program administration (for example: Canada Student Loans, Labour Market Development Agreements - transfer payments to provinces) and logistics
• Informatics Services ($447M): IT infrastructure and digital transformation initiatives, including re-platforming federal benefit systems (EI, CPP, OAS)
• Management Consulting ($29M): Strategic advisory services to enhance departmental efficiency and service delivery

These investments reflect ESDC's continued focus on service modernization, operational excellence, and program integrity.

Based on an analysis of departmental expenditures in the top 3 reporting categories - Business Services, Informatics Services, and Management Consulting - as well as some expenditures under the Benefits Delivery Modernization (BDM) Programme, we estimate that spending on per diem-based consultants in fiscal year 2024 to 2025 was approximately 10% of the $998.5M.

Do these expenditures align with established procurement benchmarks or industry standards?

• Overall, these expenditures demonstrate ESDC's commitment to responsible stewardship of public funds, continuous improvement, and alignment with government-wide priorities for digital transformation, accountability, and service excellence.
• Major initiatives such as BDM leverage vendors with global experience in executing complex, large-scale business transformations. ESDC also engages independent third-party firms to conduct objective assessments, ensuring accountability and informed decision-making throughout the transformation process.

Question 2: What percentage of the Department's budget was spent on professional services?

*Note: For comparative purposes, total operating expenses for fiscal year 2024 to 2025 have been reduced by $3.9B to exclude an exceptional and material bad debt expense associated with COVID related benefits.

According to Volume III of the Public Accounts of Canada, for the 2024 to 2025 fiscal year, the 5 largest professional services expenditure categories at ESDC are as follows:

• Business Services: $454.2 M (includes Canada Student Loan, Labour Market Development Agreements, call centre operations and warehousing)

• Informatics Services: $446.8M (includes IT infrastructure and software support)
• Management Consulting: $29.2M (includes BDM governance and planning)
• Legal Services: $19.9M (includes specialized legal expertise and support)
• Training and Educational Services: $15.6M (includes staff training for digital systems)

These categories collectively represent the operational backbone of ESDC's modernization and service delivery efforts.

Question 3: What is the rationale for hiring consultants?

Consultants provide a flexible and rapid deployment of resources with specialized skills and expertise to support ESDC's operational requirements and internal systems, specifically providing guidance for the department's transformation efforts, and to help ensure ESDC programs and services are delivered efficiently, effectively, and prudently. ESDC's professional service contracts provide resources with specialized skills and expertise to support ESDC operational requirements and internal systems.

Question 4: How does ESDC ensure value for money in professional services contracts?

To strengthen oversight and ensure value for money in professional services procurement, new measures have been introduced for contracts based on hourly or daily rates. These include enhanced benchmarking against market standards and clearer expectations for cost-effectiveness. Vendor performance management has also been formalized as a mandatory requirement for new professional services contracts, supporting greater accountability and improved outcomes.

Question 5: How does the department ensure that the use of consultants complements, rather than replaces, the work of public servants?

• ESDC engages consultants strategically to address temporary gaps in capacity or to access specialized expertise not readily available within the public service. These engagements are typically project-based and aligned with departmental priorities, such as the development and implementation of complex social programs, particularly during periods of exceptional demand, including the early stages of the COVID-19 pandemic. Professional services contracts are structured to include knowledge transfer components, ensuring that public servants are equipped to sustain and manage solutions over the long term.
• The department remains committed to building internal capacity and reducing reliance on external resources as projects transition from development to operational phases. Notably, recent data indicates a substantial reduction in the number of active consultants across key branches, reflecting this shift toward sustainable, in-house delivery.

Question 6: What steps is ESDC taking to reduce its reliance on consultants and optimize their use?

• A department-wide horizontal initiative is currently reviewing the use of consultants across ESDC. This exercise provides a high-level assessment of consultant engagements, with a focus on staff augmentation and per diem-based contracts. It supports strategic decision-making through targeted reviews, quarterly monitoring, and improved workforce planning.
• The initiative aims to reduce reliance on high-cost consultants by distinguishing core from non-core activities, evaluating opportunities to internalize expertise, and prioritizing high-usage areas. Reviews are also underway to assess the necessity and value of atypical or high-cost consultant engagements.

Question 7: How does ESDC demonstrate stewardship and responsible management of public funds in professional services procurement?

ESDC follows all applicable laws, policies, directives, and trade agreements, in all its procurement activities. Notably, ESDC, conducts procurements in line with the key principles found in Treasury Board's Directive on the Management of Procurement, the Government Contracts Regulations (GCRs), and the guidance provided in Public Services and Procurement Canada's Supply Manual. Furthermore:

• as per the requirements outlined in the Guide to the Proactive Publication of Contracts, ESDC proactively discloses all contracts/amendments valued over $10,000.00, on a quarterly basis
• ESDC conducts comprehensive due diligence to uphold principles of transparency and ensure value for money in all contracting activities. Their efforts are supported by the Procurement Review Committee (PRC), which provides a challenge function aimed at upholding the principles of fairness, openness, transparency, and sound contract management
• ESDC relies on Public Services and Procurement Canada's mandatory government-wide procurement tools to manage professional services contracts, ensuring optimal value from private sector engagements, stronger contract oversight, and increased accountability for business owners

Question 8: How is centralized procurement data being leveraged to strengthen departmental oversight and inform strategic decision-making?

ESDC has implemented a centralised procurement repository to strengthen oversight and accountability across all branches. This integrated platform enables real-time tracking of consultant numbers, contract durations, and expenditure trends, providing leadership with a clear, department-wide view of professional services activity. By consolidating procurement data, ESDC can quickly identify opportunities for efficiency, monitor compliance with new policies, and ensure resources are allocated where they deliver the greatest value for Canadians. The repository supports evidence-based decision-making and reinforces ESDC's commitment to transparency and responsible stewardship of public funds.

3. ESDC 2025‑2026 Main Estimates Overview

Descriptive text figure 1

Figure on the left: ESDC total planned spending is $208.2 billion

• EI Benefits planned spending is $27.7 billion or 13.3% of total planned spending
• CPP Benefits planned spending is $68.8 billion or 33.1% of total planned spending
• Other EI and CPP Recoveries and Workers Compensation planned spending is $2.8 billion or 1.3% of total planned spending
• EI and CPP Operating Costs planned spending is $3.2 billion or 1.5% of total planned spending
• Main Estimates represents $105.7 billion or 50.8% of total planned spending

Figure on the right: ESDC Main Estimates is $105.7 billion

• Statutory planned spending is $92.6 billion or 88% of total Main Estimates
• Vote 1 - Operating Expenditures planned spending and Vote 10 - Debt Write-off are $1.5 billion or 1% of total Main Estimates
• Vote 5 - Grants and Contributions planned spending is $11.6 billion or 11% of total Main Estimates

Of the $105.7 billion in planned budgetary expenditures included in ESDC's 2025‑26 Main Estimates, $103.1 billion (98%) directly benefits Canadians through statutory and voted transfer payment programs:

• Old Age Security Program = $85.5 billion
• Canada Student Financial Assistance Program and Canada Apprentice Loans = $3.2 billion
• Canada Education Savings Program = $1.3 billion
• Canada Disability Benefit= $0.8 billion
• Canada Disability Savings Program = $0.7 billion

Main programs included in the $11.6 billion in voted grants and contributions in ESDC's 2025‑2026 Main Estimates:

• Early Learning and Child Care = $8,521.5 million
• Workforce Development Agreements = $722.0 million
• Youth Employment and Skills Strategy = $412.5 million
• Indigenous ELCC Transformation Initiative= $311.1 million
• Indigenous Skills and Employment Training Program = $236.7 million
• Canadian Apprenticeship Strategy = $227.5 million
• Student Work Placement Program = $202.1 million
• National School Food Program = $142.2 million
• Opportunities Fund for Persons with Disabilities = $100.7 million
• Canada Service Corps = $82.9 million
• New Horizons for Seniors Program = $76.7 million
• Social Development Partnerships Program = $77.7 million
• Future Skills = $72.7 million
• Foreign Credential Recognition Program = $70.4 million
• Enabling Fund for Official Language Minority Communities = $67.7 million
• Social Innovation and Social Finance Strategy = $60.0 million
• Skills and Partnership Fund = $50.0 million

4. Leveraging Artificial Intelligence to Enhance Productivity, Efficiency and Effectiveness

• Employment and Social Development Canada (ESDC) is advancing artificial intelligence initiatives to better address emerging policy challenges, reduce operational costs, and enhance services for Canadians.
• These efforts are grounded in a strong commitment to protecting the privacy and security of Canadians' information. They also reflect the department's focus on building a responsible Artificial Intelligence Strategy grounded in transparency and ethical adoption. ESDC's artificial intelligence initiatives contribute to progress across three key themes: enhancing productivity, efficiency, and effectiveness

Enhancing Productivity

DatMedia

Status: Deployed

• Context: Government relies on timely news updates; however, scanning and searching through large volumes of articles to generate insightful summaries is resource-intensive.
• Solution: DatMedia uses generative artificial intelligence and natural language processing to select and summarize relevant news articles.
• Impact: Various groups within ESDC and one group in Canadian Heritage are using DatMedia, enabling timely news summaries with far fewer resources.

Assist-Me for Old Age Security

Status: Deployed

• Context: Old Age Security agents previously had to manually search for guidance when processing applications.
• Solution: Assist-Me is an artificial intelligence chatbot that helps Old Age Security agents quickly access procedures, guides, links, and more.
• Impact: Offers real-time, accurate answers to over 90% of staff enquiries, enhancing agents' productivity and effectiveness.

ESDC Virtual Assistant, EVA

Status: Deployed

• Context: Generative artificial intelligence can enhance employee productivity, but publicly available tools are not tailored to meet the specific needs of ESDC employees.
• Solution: EVA is a secure, employee-centred productivity tool that is highly customizable and scalable. Its Domain Assistant feature enables teams to interact directly with program-specific data.
• Impact: Delivers secure artificial intelligence access to up to 25,000 ESDC employees through a Protected B cloud environment.

Enhancing Efficiencies

Record of Employment Comment

Status: Deployed

• Context: In Employment Insurance applications, the Record of Employment form previously required manual review of open-text fields.
• Solution: A natural language processing solution was developed to analyze open-text fields, determining relevance to the application without manual review.
• Impact: The artificial intelligence component is integrated in a fully automated process, saving Employment Insurance agents thousands of processing hours annually.

eSIN Automation (Phase 1)

Status: Deployed

• Context: Online social insurance number (SIN) applications require agents to manually validate submitted documents.
• Solution: eSIN Automation uses optical character recognition to validate a portion of the documents automatically.
• Impact: Reduces wait times for online applicants, from several days to just minutes in some instances.

DatScribe for Pensions Automation

Status: In Development

• Context: ESDC processes a large volume of paper forms and applications, which is resource intensive.
• Solution: A custom optical character recognition tool that converts printed or handwritten text into machine-readable format for integration with pensions systems and processes.
• Impact: The tool is custom-fitted to key departmental forms for future integration with automated processes, which will save processing agents tens of thousands of hours each year.

Enhancing Effectiveness

Guaranteed Income Supplement Involuntary Separation

Status: Deployed

• Context: ESDC needed to identify potential Guaranteed Income Supplement recipients impacted by changes in 2017 to the Old Age Security policy on involuntary separation.
• Solution: A natural language processing solution was developed to review 10 months of open-text agent notes to identify potential beneficiaries.
• Impact: Over 2 million dollars in Guaranteed Income Supplement payments was transferred to vulnerable Canadian seniors. ESDC received a 2020 International Social Security Association good practice award for this work.

Artificial Intelligence for Job Bank Modernization

Status: In Development

• Context: Job Bank is a digital platform that connects job seekers with employers. ESDC is integrating artificial intelligence to better support labour market needs and improve platform usability.
• Solution: Job Bank Modernization will introduce artificial intelligence-enabled capabilities including:
  • Skills profile generation from job seeker resumes
  • Improved job matching
  • Identification of relevant training opportunities
• Impact: These improvements will help Canadians find suitable jobs more easily and assist employers in accessing the skilled labour they need.

Looking Forward

These initiatives form part of Employment and Social Development Canada's broader commitment to advancing artificial intelligence. Additional projects are actively progressing across the department, each at different stages of development.

Many of these artificial intelligence solutions are designed to be scalable, allowing them to be adapted and applied to other programs, services, and operational contexts.

5. Comprehensive Expenditure Review

Issue

The Government has launched a Comprehensive Expenditure Review (CER) to ensure spending is responsible, cost-effective and delivers results for Canadians.

Background

• Departments were asked to bring forward ambitious savings to support a phased approach to achieving potential savings of 15% by fiscal year 2028-2029, based on planned spending in the 2025-2026 Main Estimates.
• This target is ambitious and represents an 'up to' amount, providing the government with flexibility to select proposals that best align with its focus on balancing fiscal discipline, quality service delivery for Canadians, and economic growth.

Key facts

ESDC savings targets have been assigned as follows, based on 2025-2026 Main Estimates levels:

• 7.5% in 2026-2027
• 10% in 2027-2028
• 15% in 2028-2029

Budget 2025

Budget 2025 announced $780.5 million in ongoing savings for the Department, following the Comprehensive Spending Review. These savings will be achieved through the following measures:

• program consolidation
  • The Canada Service Corps and the Supports for Student Learning Program will be merged to streamline administration, reduce duplication, and improve program delivery. This consolidation will generate ongoing savings of $50.5 million while continuing to support youth engagement and learning outcomes.
  • The integrated program will maintain Canada Service Corps' focus on youth volunteer placements and micro-grants for youth-led initiatives, alongside the Supports for Student Learning Program's support for vulnerable students-including those from low-income families, rural communities, and underrepresented groups-by improving access to educational resources.
• modernizing government operations
  • Employment and Social Development Canada will implement artificial intelligence to automate internal processes, reduce office space requirements, consolidate administrative functions, and limit spending on consultants, travel, and conferences.
  • These efforts will result in ongoing savings of $101.7 million.
• program optimization and jurisdictional alignment
  • Employment and Social Development Canada will eliminate duplication with other jurisdictions and reallocate funding from programs with limited need or effectiveness.
  • This will contribute ongoing savings of $628.5 million.

Key messages

• The Comprehensive Expenditure Review is about ensuring that government spending is responsible, cost-effective and delivers results for Canadians.
• As Minister, I am cognisant of the important role that Government programs and services play in the lives our citizens. Any decisions taken as part of the Comprehensive Expenditure Review will be in the best interest of Canadians, including workers and families.

J. Ministerial mandate: mandate and priorities

Issue

How is Employment and Social Development Canada advancing the Government's seven missions outlined in the Prime Minister's mandate letter of May 21, 2025?

Background

• The Prime Minister's May 21, 2025, mandate letter asked Ministers and Secretaries of State to "meet a series of unprecedented challenges with both a disciplined focus on core priorities and new approaches to governing."
• The letter outlined 7 specific missions:
  1. establishing a new economic and security relationship with the United States and strengthening our collaboration with reliable trading partners and allies around the world
  2. building one Canadian economy by removing barriers to interprovincial trade and identifying and expediting nation-building projects that will connect and transform our country
  3. bringing down costs for Canadians and helping them to get ahead
  4. making housing more affordable by unleashing the power of public-private cooperation, catalysing a modern housing industry, and creating new careers in the skilled trades
  5. protecting Canadian sovereignty and keeping Canadians safe by strengthening the Canadian Armed Forces, securing our borders, and reinforcing law enforcement
  6. attracting the best talent in the world to help build our economy, while returning our overall immigration rates to sustainable levels
  7. spending less on government operations so that Canadians can invest more in the people and businesses that will build the strongest economy in the G7
• Given its broad mandate and role in shaping policies and programs that impact Canadians throughout their lives, the Employment and Social Development Canada portfolio, including Service Canada and the Labour Program, contributes to all 7 missions.

Key messages - Mission #1 (Economic and Security Relationship - US)

Tariff Support Measures

Our Government has acted decisively to support workers in Canada's response to U.S. tariffs including committing:

• $570 million over three years, starting in 2025-2026, through Labour Market Development Agreements with provinces and territories to support training and employment assistance for workers impacted by tariffs and global market shifts
• $382.9 million over five years, starting in 2026-2027, and $56.1 million ongoing, to launch new Workforce Alliances and a new Workforce Innovation Fund to provide support to impacted and priority sectors to align and coordinate training investments with workforce needs
• temporary flexibilities to the Employment Insurance Work-Sharing program, to provide Employment Insurance benefits to eligible employees who agree to work reduced hours due to a decrease in business activity beyond their employer's control. This measure is expected to cost $370.5 million over five years, starting in 2025-2026, and $18.5 million ongoing
• Temporary Employment Insurance measures that enhance income supports for Canadian workers whose jobs have been impacted by the economic uncertainty caused by foreign tariffs. These supports are expected to cost $3.7 billion over three years, starting in 2025-2026
• $50 million over five years, starting in 2026-2027, and $8 million ongoing, to modernize Canada's Job Bank by implementing new digital tools to facilitate job search and applications, and launch a national online training platform in partnership with the private sector

Key messages - Mission #2 (One Canadian Economy)

Labour Mobility

• A key part of breaking down barriers to internal trade is ensuring that our workforce can move seamlessly between jurisdictions to fill jobs in demand. This will be more important than ever as we embark on major projects that will grow our economy.
• The Government is rapidly advancing a labour mobility action plan with provincial and territorial labour market and labour ministers, which was endorsed by First Ministers in June 2025. The plan is comprehensive and will include:
  • Amending the Labour Mobility Chapter (Chapter 7) of the Canadian Free Trade Agreement to close all loopholes and ensure pan-Canadian consistency;
  • Creating a new digital system to make it easier for skilled trades people to have certification verified in all jurisdictions;
  • Action by Provinces / Territories to eliminate unnecessary exceptions on the 13 federally-regulation occupations;
  • Aligning occupational health and safety and labour mobility priorities;
  • driving industry transformation (Federal Economic Development Agency for Northern Ontario).
• Given its vast natural resources, such as the Ring of Fire, and strategic location in Canada, northern Ontario represents a significant opportunity for economic development.
• Federal support for small businesses, innovation and workforce development in northern Ontario, particularly in sectors such as clean energy and artificial intelligence, is important for the Government's mission to build one strong Canadian economy. Growth in northern Ontario will drive broader economic development across Canada.
• As Minister for the Federal Economic Development Agency for Northern Ontario, I will continue to promote strategic investments for small and medium-sized business across northern Ontario.
• This will enable businesses to scale, adopt advanced technologies including artificial intelligence, and strengthen supply chains. I will continue to support regional resilience as it is crucial to our national priorities of building a more connected and competitive Canada for all.
• As part of this effort, I will also foster and expand strategic relationships with government partners, Indigenous communities, and regional businesses.

Key messages - Mission #3 (Helping Canadians Get Ahead)

• As Minister of Jobs and Families, bringing down the cost of living for Canadians and helping them get ahead is one of my top priorities.
• Developing the Canada-wide Early Learning and Child Care systems is one of the most effective ways for governments to empower Canadians by lowering costs and removing barriers to participation in the workforce. Although Early Learning and Child Care is a priority for the Secretary of State (Children and Youth), I am fully committed to supporting my colleague in advancing this important initiative.
• The federal government continues to work with provincial, territorial, and Indigenous partners to build and provide families with access to high-quality, affordable, flexible and inclusive Early Learning and Child Care no matter where they live.
• Recent federal investments in Early Learning and Child Care have made life more affordable for parents. Furthermore, affordable, high quality Early Learning and Child Care enables labour market participation of primary caregivers (predominantly women), and the healthy development of children.
• Beyond Early Learning and Child Care, the Government is advancing other initiatives to make life more affordable and support families' well-being:
  • the Canada Child Benefit is a tax-free monthly payment that helps low- to middle-income families with children manage everyday expenses like groceries, clothing or childcare, providing added support as they raise their children
  • the National School Food Program, supported by a $1 billion investment over five years, is expanding and enhancing access to healthy food for children and youth across Canada. On October 10, the Prime Minister announced that the National School Food Program will be made permanent to ensure kids get nutritious meals at school, while bringing down costs for parents. Additionally, Budget 2025 proposes to introduce legislation and provide $216.6 million annually, starting in 2029-2030, to make the National School Food Program permanent. I am committed to supporting my colleague, Secretary of State (Children and Youth) in advancing this important measure for the benefit of children and youth across Canada
  • the Canadian Dental Care Plan is transforming access to oral health care by helping make the cost of dental care more affordable for eligible Canadians
  • the Canada Workers Benefit provides a refundable tax credit that supplements the earnings of low- and moderate-income workers, letting them take home more money while they work
  • the Canada Disability Benefit, which was issued for the first time in July 2025, provides persons with disabilities with more money to cover the costs of accessible housing, medical care and disability supports
  • the Canada Student Financial Assistance Program helps make post-secondary education more affordable and accessible to all Canadians by providing interest-free loans, grants, and repayment assistance
  • the Canada Education Savings Program helps families save early and build aspirations for their children's post-secondary education through education savings benefits
  • the Supports for Student Learning Program provides afterschool and wraparound supports (for example, tutoring and mentoring) aimed at helping under-served youth succeed in their studies and transition to post-secondary education or the labour market, and
  • the Canada Service Corps provides access to meaningful volunteer opportunities and skills development which helps build future readiness amongst youth participants
• These efforts reflect the Government of Canada's commitment to bringing down costs for Canadians and helping them to get ahead.
• The Government also supports youth to transition successfully into the labour market.
• To support youth employment, the Government will invest $594.7 million over two years, starting in 2026-2027, to my Department's Canada Summer Jobs to support around 100,000 summer jobs in summer 2026.
• Additionally, $307.9 million will be invested over two years, starting in 2026-2027, for the horizontal Youth Employment and Skills Strategy to provide employment, training, and wraparound supports to around 20,000 youth facing employment barriers annually.
• To support 50,000 work-integrated learning opportunities for post-secondary students in 2026-27, the Government will also be providing $635.2 million over three years to my Department's Student Work Placement Program.
• Furthermore, my Department will be establishing a Youth Climate Corps initiative to provide paid skills training for young Canadians, with training focused on climate emergency response, support recovery, and strengthening resilience in communities. This will be implemented through a $40 million investment over two years, starting in 2026-2027.
• Together, these investments will empower the next generation with the confidence and skills they need to succeed.

Key messages - #4 (Skilled Trades to Build Homes)

Skills Training

• Continued support for the expansion of a skilled workforce is crucial to expedite nation-building projects and build more homes. One of my top priorities is to ensure that employers can get the workers that they need, when and where they need them most.
• Budget 2025 proposes a $75 million investment over three years, starting in 2026-2027, to expand the Union Training and Innovation Program under the Canadian Apprenticeship Strategy to support union-led training, innovation, and enhanced partnerships in Red Seal Trades to train the next generation of Canadian builders. I am committed to supporting my colleague, Secretary of State (Labour) in advancing this important initiative.
• Existing funding under the Canadian Apprenticeship Strategy is currently being used to grow the skilled trades.
• My Department also continues to support Canada's Housing Plan via investments in the Apprenticeship Service and the Skilled Trades Awareness and Readiness Program. This program helps bolster the supply of labour across sectors including in the construction sector.
• However, any actions taken by the federal government cannot be made in isolation as provinces and territories also play a key role in skills and training programs including having primary responsibility for education, and skilled trades certification.
• Earlier this year, the Forum of Labour Market Ministers reiterated the vital role of Labour Market Transfer Agreements, which empower the provinces and territories to deliver tailored employment assistance and reskilling services that response to the unique needs of their respective labour markets. I look forward to further collaboration with my provincial and territorial counterparts.
• Moving forward, we need to ensure Canadians and their families feel supported and that we have the skilled workforce available for the economic transformations ahead and the success of our economic missions. I am therefore committed to continue working towards improving the Government's skills training and employment agenda.

Key messages - Mission #5 (Canadian Sovereignty)

• Continued support for the expansion of a skilled workforce is crucial for sectors linked to the defense industry. One of my top priorities is to ensure that employers can get the workers that they need, when and where they need them most.
• The Government delivers on this through a diverse suite of skills training programs including the Canadian Apprenticeship Strategy, Indigenous Skills and Employment Training Program, Youth Employment and Skills Strategy, Canadian Apprenticeship Strategy and many others.
• Existing funding under the Canadian Apprenticeship Strategy is also currently being used to grow the skilled trades.
• This is in addition to our work with provinces and territories on Labour Market Transfer Agreements.
• Moving forward, we need to ensure Canadians, and their families feel supported and that we have the skilled workforce available for the economic transformations ahead and the success of our economic missions. I am therefore committed to continue working towards improving the Government's skills training and employment agenda.

Key messages - Mission #6 (Immigration and attracting talent)

• I think we can all agree that immigration has a key role to play to help maintain and bolster Canada's competitive advantage. For that reason, I work closely with the Minister of Immigration, Refugees and Citizenship to ensure that immigration levels planning is informed by the latest labour market conditions.
• This government is focused on building lasting economic strength. This starts with a focused approach that targets specific strategic sectors and needs in specific regions. In partnership with the Minister of Immigration, Refugees and Citizenship Canada, and Minister of Health, I will advance foreign credential recognition in Canada to ensure that newcomers can work in their trained professions without unnecessary delays.
• Towards this end, my department will establish the Foreign Credential Recognition Action Fund to work with provinces and territories to improve the fairness, transparency, timeliness and consistency of foreign credential recognition. This initiative will help qualified foreign-trained professionals contribute more quickly to Canada's workforce and will be implemented through an investment of $97 million over five years, starting in 2026-2027.
• In addition, the Temporary Foreign Worker Program is one of several tools the Government of Canada has to protect the Canadian economy, support Canadian businesses, and to respond to labour market needs, especially in a rapidly changing economy.
• In total, temporary foreign workers under the Temporary Foreign Worker Program account for only approximately 1% of Canada's overall workforce and support key regions and sectors that face serious labour storages, such as agriculture, food processing, construction and health care.
• Not only does the Temporary Foreign Worker Program play an essential role in addressing skills and labour shortages, but it also enables the expedited onboarding of foreign nationals with in-demand skillsets through the Global Talent Stream, which is designed to provide priority sectors with accelerated access to skilled labour.
• Tightening measures, implemented since 2023, have restricted access to the Temporary Foreign Worker Program, particularly for positions that require entry-level skills and provide on-the-job training. This has translated to a 70% reduction in eligible applications for the Low-wage Stream, and a 50% reduction overall.
• At the same time, compliance efforts have been strengthened. Penalties for non-compliant employers are significant. Last year, we saw the fines more than double over the previous year, and the number of employers banned from the Temporary Foreign Worker Program more than triple.
• When it comes to jobs, Canadians are always first in line. I am committed to ensuring that the Temporary Foreign Worker Program is used as an extraordinary and temporary measure to fill critical employment gaps, and only when Canadians and permanent residents are not able to fill job vacancies.
• The Temporary Foreign Worker Program is meant to complement, not compete, with regional economies. It is regularly adapted to ensure it is fit for purpose and responsive to shifts in the labour market. Employers are expected to recruit, upskill, and train domestic workers first. They are required to advertise on Job Bank or its provincial counterpart, and, for low-wage positions, to demonstrate that efforts have been made to recruit from at least two underrepresented domestic employment groups, which include youth.
• These efforts will support economic growth and innovation and help Canada make full use of the talent it welcomes.

Key messages - Mission #7 (Bringing down costs of Government)

• Budget 2025 announced $780.5 million in ongoing savings for my Department, following the Comprehensive Spending Review.
• As the Minister responsible for Service Canada, I am fully committed to meeting the spending reduction targets outlined by the Prime Minister for Employment and Social Development Canada while also continuing to delivery high-quality, citizen-centred services that Canadians rely on. I am also committed to ensuring that savings come from smarter delivery, not reduced or inaccessible services or quality.
• As we mark Service Canada's 20th anniversary, our Government is focused on its original vision - a one-stop, secure, and cost-effective service experience for Canadians.
• Budget 2025 included $28.7 million for a two-year pilot project to find out if Employment Insurance eligibility and entitlement can be determined using real-time payroll information. This will benefit Canadian workers, Employment Insurance applicants and recipients, and businesses of all sizes by streamlining interactions with the Government.
• Budget 2025 also included the Government's intention to amend the Department of Employment and Social Development Act with changes that will mean more efficient and convenient government services for all Canadians. For example, new provisions related to information sharing and digital services would address outdated, paper-based processes - with particular benefits for seniors, newcomers, persons with disabilities and rural residents.

6. Table of Budget 2025 Items

Minister of Jobs and Families

Below is a list of Budget 2025 announcements under the purview of the Minister of Jobs and Families. Secretary of State-led items that would be of interest to the Minister are also provided.

Minister of Jobs and Families-led items

• Program/Initiative 1: Supporting Workers
  • Theme: Building a Stronger Economy and Labour Market
    • The government is implementing a new reskilling package for workers, has made Employment Insurance more flexible and with extended benefits, and will launch a new digital jobs and training platform with private-sector partners to connect Canadians more quickly to careers. Measures include:
      • $570 million over three years, starting in 2025-2026, through Labour Market Development Agreements with provinces and territories to support training and employment assistance for workers impacted by tariffs and global market shifts.
      • $382.9 million over five years, starting in 2026-2027, and $56.1 million ongoing, to launch new Workforce Alliances to bring together employers, unions, and industry groups to work on ways to help businesses and workers succeed in the changing labour market and coordinate public and private investments in skills development. A new Workforce Innovation Fund will invest in projects tailored to local job markets to help businesses in key sectors and regions recruit and retain the workforce they need.
    • Temporary flexibilities to the Employment Insurance Work-Sharing program, as announced on March 7, 2025, to provide Employment Insurance benefits to eligible employees who agree to work reduced hours due to a decrease in business activity beyond their employer's control. This helps employers and employees avoid layoffs while supplementing reduced income with EI benefits. This measure is expected to cost $370.5 million over five years, starting in 2025-2026, and $18.5 million ongoing.
    • Temporary EI measures that enhance income supports for Canadian workers whose jobs have been impacted by the economic uncertainty caused by foreign tariffs. These supports are expected to cost $3.7 billion over three years, starting in 2025-2026.
    • $50 million over five years, starting in 2026-2027, and $8 million ongoing, to implement a new digital tool to facilitate job search and applications, and launch a national online training platform in partnership with the private sector.
• Program/Initiative 2: Helping Youth Find and Keep Jobs
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 2: Budget 2025 proposes to provide $594.7 million over two years, starting in 2026-2027, to Employment and Social Development Canada for Canada Summer Jobs to support around 100,000 summer jobs in summer 2026.
    • Budget 2025 proposes to provide $307.9 million over two years, starting in 2026-2027, for the horizontal Youth Employment and Skills Strategy to provide employment, training, and wraparound supports (for example, mentorship, transportation, mental health counselling) to around 20,000 youth facing employment barriers annually. $20.1 million of this is offset by funding already provisioned in the fiscal framework.
    • Budget 2025 proposes to provide $635.2 million over three years, starting in 2026-27, to Employment and Social Development Canada for the Student Work Placement Program to support around 55,000 work-integrated learning opportunities for post-secondary students in 2026-2027.
• Program/Initiative 3: Advancing the Youth Climate Corps
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 3: Budget 2025 proposes to provide $40 million over two years, starting in 2026-2027, to Employment and Social Development Canada, to create a Youth Climate Corps to provide paid skills training for young Canadians. They will be trained to quickly respond to climate emergencies, support recovery, and strengthen resilience in communities across the country. The skills training and work experience opportunities created through a Youth Climate Corps support reducing youth unemployment, increasing innovation, and strengthening adaptation and mitigation projects.
• Program/Initiative 4: Improving Foreign Credential Recognition
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 4: As announced on October 27, 2025, Budget 2025 proposes to provide $97 million over five years, starting in 2026-2027, to Employment and Social Development Canada to establish the Foreign Credential Recognition Action Fund to work with the provinces and territories to improve the fairness, transparency, timeliness, and consistency of foreign credential recognition, with a focus on health and construction sectors. This funding will be sourced from existing departmental resources.
• Program/Initiative 5: Real-Time Employer Reported Payroll Information Pilot
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 7: Budget 2025 proposes to provide $29 million over two years, starting in 2026-2027, to be charged to the Employment Insurance Operating Account, to Employment and Social Development Canada to support a two-year pilot project to assess whether Employment Insurance eligibility and entitlement can be determined accurately and securely using real-time payroll information.
• Program/Initiative 6: Employment Insurance Parental Benefits during Bereavement
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 7: Budget 2025 proposes to provide $17 million over three years, starting in 2027-2028, to Employment and Social Development Canada to amend the Employment Insurance Act to allow claimants receiving Employment Insurance parental benefits to access an additional eight weeks of parental benefits in the event of the death of the child.
• Program/Initiative 7: Restricting Non-Compete Agreements
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 7: Budget 2025 announces that the government intends to amend the Canada Labour Code to restrict the use of non-compete agreements in employment contracts for federally regulated businesses. The government will launch consultations on proposed legislative changes in early 2026.
• Program/Initiative 8: Lowering Barriers to Access the Canada Disability Benefit
  • Theme: Tackling Affordability
    • Budget 2025 Announcements 8: Budget 2025 reaffirms the government's intention to lower barriers to access the Canada Disability Benefit by helping to offset the costs of applying for the Disability Tax Credit for Canada Disability Benefit recipients. Budget 2025 proposes $115.7 million over four years, beginning in 2026-2027, and $10.1 million per year ongoing, including administrative costs, for a one-time supplemental Canada Disability Benefit payment of $150 in respect of each Disability Tax Credit certification, or re-certification, giving rise to a Canada Disability Benefit entitlement.
• Program/Initiative 9: Protecting Workers Against Wage Theft
  • Theme: Tackling Affordability
    • Budget 2025 Announcements 9: The 2024 Fall Economic Statement announced the government's intent to make regulatory changes to substantially increase the penalties imposed on federally regulated employers who commit wage theft. The government remains committed to ensuring workers are protected and compensated for the work they perform. The work to increase penalties is currently underway and consultations with workers and employers on proposed changes will take place over the coming months.
• Program/Initiative 10: Protecting Workers Against Improper Classification
  • Theme: Tackling Affordability
    • Budget 2025 Announcements 10: To crack down on employers that misclassify employees, Budget 2025 proposes to provide $77 million over four years starting in 2026-2027, with ongoing funding of $19.2 million annually, for the Canada Revenue Agency to implement a program that addresses non-compliance related to personal services businesses, as well as lift the moratorium on reporting fees for services in the trucking industry. Budget 2025 also proposes to amend the Income Tax Act and the Excise Tax Act to allow the Canada Revenue Agency to share information with Employment and Social Development Canada for the purpose of addressing worker misclassification.
• Program/Initiative 11: Improving the Integrity of Student Financial Assistance
  • Theme: More Efficient and Effective Government
    • Budget 2025 Announcements 11: Budget 2025 announces the government's intention to propose legislative and regulatory amendments to address integrity issues related to private educational institutions by generally limiting access to the Canada Student Grant for Full-time Students to students attending public educational institutions and not-for-profit private institutions within Canada. Internationally, Canada Student Loans and Grants generally would only be provided to those who attend public institutions. This measure is expected to result in savings of approximately $1.0 billion over four years, starting in 2026-2027, and $280.1 million ongoing.
• Program/Initiative 12: Emergency Benefits Overpayments
  • Theme: More Efficient and Effective Government
    • Budget 2025 Announcements 12: Budget 2025 proposes to provide $123 million over two years, starting in 2026-2027, to continue collections for overpayments related to COVID-19 emergency benefits, in collaboration with the Canada Revenue Agency.
• Program/Initiative 13: International Mobility Program Compliance
  • Theme: More Efficient and Effective Government
    • Budget 2025 Announcements 13: To reduce duplication and streamline delivery, Immigration, Refugees and Citizenship Canada will transfer responsibility for employer-focused compliance inspections under the International Mobility Program to Employment and Social Development Canada. Both organizations conduct parallel inspections under separate programs (the International Mobility Program and the Temporary Foreign Worker Program), using similar tools and authorities, resulting in duplication of effort, oversight, and internal service demands. This change would simplify the compliance landscape for employers, while supporting more coherent federal oversight.
• Program/Initiative 14: Legislative Amendments to the Department of Employment and Social Development Act
  • Theme: More Efficient and Effective Government
    • Budget 2025 Announcements 14: In Budget 2025, the government proposes to amend the Department of Employment and Social Development Act to enable the delivery of integrated and efficient services across government.
• Program/Initiative 15: Legislative Amendments to the Government Annuities Improvement Act
  • Theme: More Efficient and Effective Government
    • Budget 2025 Announcements 15: In Budget 2025, the government proposes to amend the Government Annuities Improvement Act to eliminate the legislative requirement for a duplicative audit of the Government Annuities Account.

Secretary of State (Labour)-led Items of Interest to the Minister

• Program/Initiative 1: Union Training and Innovation Program to Train the Next Generation of Canadian Builders
  • Theme: Building a Stronger Economy and Labour Market
    • Budget 2025 Announcements 1: As announced on October 27, 2025, Budget 2025 proposes to provide $75 million over three years, starting in 2026-2027, to Employment and Social Development Canada to expand the Union Training and Innovation Program, which supports union-based apprenticeship training in the Red Seals trades.

Secretary of State (Children and Youth)-led Items of Interest to the Minister

• Program/Initiative 1: Making the National School Food Program Permanent
  • Theme: Tackling Affordability
    • Budget 2025 Announcements 1: As announced on October 10, 2025, Budget 2025 proposes to introduce legislation and provide $216.6 million per year, starting in 2029-2030, to Employment and Social Development Canada, Indigenous Services Canada, and Crown-Indigenous Relations and Northern Affairs Canada, to make the National School Food Program permanent.

Secretary of State (Seniors)-led Items of Interest to the Minister

• No Budget 2025 announcement

Secretary of State (Seniors) support to other Cabinet Ministers

• Program/Initiative 1: Delivering Automatic Federal Benefits for Low-Income Individuals - Canada Revenue Agency
  • Budget 2025 Announcements 1: As announced on October 10, through Budget 2025, Canada's new government will start Automatic Federal Benefits for the 2026 tax year that will reach up to 5.5 million low-income Canadians by the 2028 tax year.
  • To help individuals with lower income receive the benefits to which they are entitled, Budget 2025 also proposes to amend the Income Tax Act to allow the Canada Revenue to file a tax return on behalf of certain eligible individuals with lower incomes in simple tax situations who do not owe tax and do not file themselves.
• Program/Initiative 2: Delivering for Personal Support Workers - Canada Revenue Agency
  • Budget 2025 Announcements 2: As announced on October 27, Budget 2025 proposes to introduce a temporary Personal Support Workers Tax Credit, under which eligible personal support workers employed in the remaining provinces and territories could claim a refundable tax credit equal to 5 per cent of their eligible earnings, providing support of up to $1,100 per year. This measure to support front-line health care workers would be available for the 2026 to 2030 taxation years and is estimated to cost $1.48 billion over six years, starting in 2025-2026.
• Program/Initiative 3: Protecting Against Economic Abuse - Department of Finance
  • Budget 2025 Announcements 3: Budget 2025 proposes to introduce a voluntary Code of Conduct for the Prevention of Economic Abuse for federally regulated banks. This code, to be overseen by the Financial Consumer Agency of Canada, will set clear expectations for how banks can identify, prevent, and respond to economic abuse to better protect Canadians.
• Program/Initiative 4: Combatting Financial Fraud - Department of Finance
  • Budget 2025 Announcements 4: Budget 2025 announces the government's intention to develop a whole of-government National Anti-Fraud Strategy. This strategy will bring together financial institutions, technology, and telecommunication companies to develop a cross-sectoral approach to protect Canadians from evolving and highly complex fraud schemes.