‘Success will depend on sustained focus and careful implementation,' says chamber of commerce
The 2025 Federal Budget has drawn strong and varied reactions from Canada’s leading business, investment, and labour organisations, reflecting the high stakes for employers and HR professionals as the country navigates economic headwinds, skills shortages, and global uncertainty.
The Canadian Chamber of Commerce (CCC) acknowledged the government’s focus on investment and productivity but stressed that the real test will be whether businesses are convinced to invest.
“Canada has an urgent need to get back to a growing, productive economy,” said Candace Laing, President and CEO of the CCC. “In this federal fudget, the government has heard business’ call to focus on the economy and has made some tough choices to attract investment. Individual businesses—small, medium and large—will be the ultimate judges of whether this is enough to start making investments in Canada again.”
Matthew Holmes, Executive Vice President and Chief of Public Policy at the CCC, noted, “To attract capital investment to fuel the growth we need, the government is making some large expectations on returns. It will be up to businesses to see if this will be enough to spur the level of economic activity, return on investment and capital attraction the government hopes for.”
Holmes also highlighted the importance of stability, saying, “Investors and employers need stability, consistency and a sense that Canada can still nation-build in troubling times, which is why Parliamentarians must come together quickly to agree on a reasonable path to passage of a Budget—even if it sees some changes.”
The budget — released on Nov. 4 and Mark Carney’s first as Prime Minister — is framed as a response to significant global and economic changes with priorities ranging from workforce renewal and skills development to regulatory changes and public sector transformation.
Budget 2025: 'More transitional than transformational'
The Ontario Chamber of Commerce (OCC) also described the budget as “more transitional than transformational,” but praised its focus on investment and productivity.
“It marks an important turning point—prioritising and incentivising investment more than consumption, and focusing on the environment and infrastructure businesses need to diversify and grow, benefiting workers and communities,” said Daniel Tisch, President and CEO of the OCC.
The OCC highlighted several wins for employers, including the Productivity Super-Deduction, enhanced SR&ED tax incentives, and investments in AI infrastructure and life sciences. The budget’s $97-million Foreign Credential Recognition Action Fund and $1.7 billion for recruiting international researchers were also seen as positive steps to address workforce shortages.
However, Tisch cautioned, “It’s time to shift from ambition to execution, and the Ontario Chamber will keep urging the government move further and faster to catalyse private-sector investment in high-potential sectors to drive productivity and prosperity.”
While Budget 2025 makes historic investments, “success will depend on sustained focus and careful implementation,” notes the OCC.
Previously, Canadian business leaders sounded the alarm over the future of the U.S.-Canada trade, with the vast majority warning that losing current protections under the Canada-U.S.-Mexico Agreement (CUSMA) would be the greatest risk to their companies, according to a report.
Tariffs putting Canadian workers 'on the line'
Teresa Palandra, President of Mercer Canada, noted that while institutional investors have been hesitant to increase domestic investments, the budget’s “$51-billion Build Communities Strong fund and the $10-billion increase to the Canada Infrastructure Bank’s statutory capital envelope may help large Canadian investors to look more closely at domestic investment.”
She added: “The government’s role in fostering investments that deliver tangible economic benefits—beyond just job creation and driving positive sentiment—is critical.”
Business leaders across the country are calling for increased government support, improved access to capital, and meaningful tax reform as Canada prepares for its upcoming federal budget, according to a previous report from KPMG.
Meanwhile, the Canadian Labour Congress (CLC) took a more critical stance, warning that the budget does not go far enough to protect jobs and public services.
“When it comes to defending Canadian jobs, this government needs to get its elbows back up. Trump’s tariffs and trade threats are putting Canadian workers on the line, and sitting on the sidelines won’t cut it,” said Bea Bruske, President of the CLC. “You can’t create jobs by cutting thousands of them. You can’t grow the economy by shrinking public services. Workers need a budget that invests in people and public infrastructure.”
While the CLC welcomed investments in home building, infrastructure, and skills training, Bruske stressed that “to truly protect workers and our economy, we need more of that—and fewer cuts.” She called on Parliament to “strengthen this budget: protect public services, strengthen health care, modernise Employment Insurance, ensure labour standards in our trade, close corporate tax loopholes, and make the generational investments in housing, infrastructure, and domestic production Canada needs to secure our economic future.”
A wave of layoffs and hiring freezes are sweeping through major corporations in North America, as companies increasingly bet that artificial intelligence (AI) and automation will allow them to grow without expanding their workforces.
