Backgrounder on Workforce Alliances

Canada’s labour market is experiencing sustained pressure from tariffs, skills shortages, supply chain disruptions and the rapid adoption of artificial intelligence and emerging technologies. To support Canada’s productivity and long-term competitiveness, these challenges demand coordinated national action to close skills gaps, align training with employment needs and strengthen sectoral collaboration.

On September 5, 2025, the Government of Canada announced bold measures to protect, build and transform Canadian industries most affected by tariffs and global trade disruptions. As part of this response, six Workforce Alliances are being established to mobilize industry leaders, workers and training institutions around a shared national vision: building a workforce that is skilled, adaptable and ready to meet Canada’s economic challenges. 

Budget 2025 reinforced the commitment to launch the new Workforce Alliances. These Alliances will bring together governments, employers, unions, industry groups, post-secondary educational institutions and Indigenous partners to identify workforce pressures, map skills gaps and coordinate sector workforce development action plans to create talent pipelines. Their work will guide federal workforce planning and help coordinate public and private investments in skills development – ensuring workforce resources are aligned with the real needs of Canadian employers and are able to support economic priorities and initiatives, including Build Canada and Major Projects. 

Each Workforce Alliance will include leader representatives from the sector, training institutions, unions, and will be supported by a dedicated delivery organization. These teams will be supported by a broader membership and network of stakeholders, to ensure the views of small, medium and large enterprises, equity deserving communities, youth and other stakeholders will directly contribute expertise, help develop solutions and guide Alliance activities. They will also work collaboratively with provincial and territorial governments, including through the Forum of Labour Market Ministers meetings, to ensure coordinated actions at the national, regional and local levels.

The Workforce Alliances will focus on six priority sectors essential to Canada’s economic resilience, sovereignty and long-term competitiveness: 

Housing and Construction 

• This Alliance will tackle workforce needs for nation building projects with a focus on residential construction and affordable housing. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners in residential, commercial, and public infrastructure projects, along with supporting supply chains for building materials and skilled trades. 
• This area is central to addressing Canada’s housing shortage and modernizing infrastructure, while integrating green building practices to increase sustainability and advanced construction technologies to boost productivity. 
• Key Facts:
  • The construction sector is one of Canada’s largest economic drivers, contributing approximately $162 billion (about 7.5%) to Canada’s annual Gross Domestic Product (GDP), and employing over 1.6 million workers.
  • Construction supports housing, infrastructure and supply chains, spanning 34 trades and occupations within the construction industry, which includes residential and industrial, commercial and institutional construction and maintenance.
  • Canada will need more than 1.4 million new trades workers by 2033—driven by retirements and industry growth—at a time when new pressures like tariffs, reduced immigration, and major projects are expected to tighten labour markets even further.

Transportation and Supply Chains 

• This Alliance will focus on the workforce needed to ensure strong supply chains, removing internal trade barriers and improving the movement of goods within Canada and to international markets. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners with connections to the movement of goods through road, rail, air, and marine networks, as well as warehousing and logistics hubs.
• This sector is essential for trade, economic resilience, and regional connectivity, requiring modernization of infrastructure, digital integration and workforce strategies to address labour shortages and strengthen multimodal supply chains.

• Key Facts: 
  • The transportation and warehousing sector supports nearly a million direct and indirect jobs and connects rural and urban communities across provinces, territories, and borders.
  • In 2024, the sector directly contributed $96.5 billion to Canada’s economy, representing 4.3% of the country’s GDP, reflecting a 2.6% increase over the previous year.
  • The Canadian transportation system supports the movement of trillions of dollars in trade through Canada’s key transportation corridors each year, underscoring its key role in national prosperity and global competitiveness.

Advanced Manufacturing  

• This Alliance will focus on the workforce that will advance the adoption of technology/innovation (AI and robotics) and foster growth of critical sectors. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners in high-value manufacturing processes and sub-sectors such as automotive, aerospace, and clean technology, driven by automation, robotics, and AI-enabled systems. 

• This area is critical for trade competitiveness and supply chain resilience, requiring workforce strategies to address skills shortages, support digital transformation, and strengthen domestic production amid global tariff pressures. It will also be critical to the new industrial defense strategy.

• Key Facts:
  • Manufacturing is a key pillar of Canada’s economy, contributing $208 billion to GDP and employing 1.85 million workers in 2024.
  • The sector is dominated by small- and medium-sized enterprises (SMEs), with 99.1% of firms being micro, small, or medium-sized.
  • Canada’s manufacturing sector is poised for growth across several high-potential sub-sectors, driven by technological innovation, shifting global supply chains, and domestic policy priorities. Advanced manufacturing including robotics, automation, and Industry 4.0 technologies is seeing increased investment, with 89% of surveyed firms reporting benefits from adopting smart technologies like predictive analytics and Industrial Internet of Things.

Energy and Electricity 

• This Alliance will focus on ensuring we have the workforce necessary to meet clean energy and power needs. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners related to conventional energy and clean electricity generation, transmission, and grid modernization. 

• This sector is central to Canada’s energy needs and economic security, requiring workforce strategies for reskilling, regional labour mobility, and adoption of emerging technologies such as AI and renewable systems. 

• Key Facts:
  • Canada’s energy sector, including oil, gas, and electricity, contributed $232 billion to the GDP and employed 316,200 workers in 2024.
  • Clean Energy Canada estimates 2.2 million new jobs in the sector by 2050, growing at 7% annually. Major investments in generation, transmission, and grid modernization will be needed to meet rising demand from electrification.
  • While most energy occupations are balanced, shortages exist in roles like heavy-duty mechanics and industrial technicians. Growth opportunities exist in liquefied natural gas and clean energy (hydro, wind, solar, nuclear).

Mining and Minerals 

• This Alliance will enable Canada’s national security and economic growth, through strengthening the workforce; and ensure the overall success of Canada’s critical minerals strategy and major projects. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners involved in exploration, extraction, and processing of minerals essential for clean energy, advanced manufacturing, and national security. 

• This area is vital for resource sovereignty and global competitiveness, requiring strategies to address aging demographics, skills shortages, and adoption of automation and sustainable mining practices. 

• Key Facts: 
  • In 2024, the mining sector contributed $112 billion directly to Canada’s GDP and directly employed about 438,000 workers.
  • In 2024, mineral production totalled $64 billion. Canada produces 60 minerals and metals at 200 mines and thousands of sand and gravel pits and stone quarries.
  • Canada is primed to capitalize on rising global demand for critical minerals that will power low-carbon and digitized economies. Canada is a key global producer of copper, nickel and cobalt and hosts advanced mineral projects for rare earth elements, lithium and graphite. Canada is looking to leverage its sustainable mining prowess to develop competitive supply chains and value-added products across a range of sectors.

Care Economy 

• This Alliance will focus on workers involved in caregiving, and promote well-being, economic resilience, and gender equity across all sectors. It will include employers, unions, industry groups, post-secondary educational institutions and Indigenous partners connected to providing services that involve the direct care of others such as children who require care due to young age, and adults (including older adults) with long-term conditions or disabilities. 

• This area supports key caregiving systems and could alleviate pressure on unpaid caregivers. It has the potential to unlock stronger labour force participation, economic resilience, and gender equity. As provinces and territories primarily deliver on health care and education, this federally funded Alliance will prioritize cross jurisdictional collaboration, focusing on workers and employers outside of formal systems such as early childhood educators or personal support workers.  

• Key Facts:
  • The Canadian Centre for Caregiving Excellence (CCCE) indicates that the economic value of caregiving work is immense. According to the CCCE, caregivers in Canada spend 5.7 billion hours each year supporting others and are estimated to contribute the equivalent of 4.2 per cent of GDP or $97.1 billion annually to Canada’s economy.
  • The care economy is an emerging global issue, with the International Labour Organization estimating that globally 2.3 billion adults and a 100 million children will need care as of 2030.
  • In 2022, one in two Canadians aged 15 or older reported providing either unpaid or paid care in the past 12 months for care-dependent adults or children. As population aging continues, pressure on health and home care services and unpaid caregivers will likely intensify. Through this growing importance of care, the care economy is a potential “new economic growth engine”.

The Government of Canada will work closely with Alliance members to advance priorities and translate sector expertise into concrete action. This coordinated approach will keep Canada’s workforce strategy responsive, forward-looking and grounded in the real needs of workers and industries across the country.