Backgrounder

Canada is facing growing workforce pressures driven by skilled labour shortages, economic uncertainty and rapid changes across key sectors of the economy. At the same time, major projects, industrial priorities and emerging economic opportunities are increasing demand for skilled workers across the country. The Sectoral Workforce Innovation Fund (SWIF) is a contribution program that will invest, in projects that help industries and regions recruit, train and retain the workforce they need to grow.

The fund is designed to support workforce initiatives tied to federal priorities, industrial strategies and major economic initiatives. Through targeted, industry-driven investments, the SWIF will help strengthen Canada’s workforce, support workforce transitions and prepare Canadian workers for opportunities in growing industries.

Supporting workforce solutions tied to economic priorities

The SWIF will support projects that help address industry’s pressing skilled labour shortages, reskilling and upskilling needs, as well as broader domestic talent gaps. Projects funded through the program are expected to help:

• increase the supply of skilled workers in key sectors in growth;
• improve alignment between training programs and employer needs;
• reduce critical skills gaps and hiring delays; and
• improve employment, retention and job-quality outcomes for workers.

The Fund will place a strong focus on helping new and mid-career workers gain the skills needed to succeed in a changing economy and prepare for opportunities in growing industries.

Supporting industry-led partnerships

Projects supported through the SWIF must demonstrate strong labour market linkages and strategic value and must be sustainable after the federal contribution is done. Initiatives are expected to be delivered through partnerships involving employers, training providers, post-secondary institutions and other sectoral stakeholders.

Through a co-investment model, the fund will help encourage employer investment in skills and training initiatives while supporting projects that strengthen the long-term sustainability, scale and impact of workforce solutions across Canada. Projects are expected to support long-term workforce capacity building and contribute to lasting workforce solutions rather than short-term interventions.

Projects supported through the SWIF are expected to advance at least one of the following objectives:

• scale up or adopt proven, high-impact workforce initiatives;
• build talent pipelines tied to federal priorities, industrial strategies and major projects; or
• mobilize industry partners to co-invest in new training solutions that respond to their workforce needs.

The SWIF is also intended to support projects aligned with the strategies developed by the new Workforce Alliances, as well as initiatives that address regional workforce needs or help mobilize workers to support major projects and emerging economic priorities.

The fund builds on the Government of Canada’s broader efforts to strengthen Canada’s long-term economic resilience, support nation-building projects and create high-paying careers for generations to come.

Examples of projects that could be supported through the SWIF

Projects funded through the SWIF could include:

• accelerated training approaches and micro-credentialling initiatives;
• targeted certification programs tied to emerging industries;
• skills assessment tools that help workers transition between sectors;
• workforce initiatives tied to artificial intelligence and advanced technologies; and
• industry-led partnerships that create direct pathways to employment.