Employers facing shortages of skilled trades workers encouraged to apply for ESDC funding
Employers facing acute and long‑term shortages of skilled trades workers in construction and related sectors are getting more federal support to strengthen apprenticeship pipelines and ensure recruits are trained on modern equipment.
Employment and Social Development Canada (ESDC) has announced that it has doubled its investment in the Union Training and Innovation Program (UTIP) and expanded flexibilities under the Canadian Apprenticeship Strategy’s Investments in Training Equipment (ITE) stream.
The measures are intended to make it easier for unions and training providers to buy and install up‑to‑date tools and machinery used to train apprentices in the Red Seal trades, which underpin many of the roles employers struggle most to fill.
Under the updated ITE stream, federal funding will now cover shipping and installation costs for new training equipment. The program will also provide federal contributions of up to 70% in remote or infrastructure‑limited areas, compared with the existing standard of up to 50% of eligible costs.
The 70/30 cost‑sharing option is targeted at projects in remote locations, areas with a lack of infrastructure or regions with limited partnership opportunities. ESDC said the changes are intended to make this higher level of support clearer and easier to access where needed.
At the start of 2026, Ontario began rolling out its new labour mobility and internal free‑trade regulations aimed at breaking down interprovincial barriers for workers and businesses and helping employers access skilled Canadian talent more quickly.
New funding details under the ITE stream
In the 2025–26 fiscal year, Ottawa is making $20 million available through the ITE stream, with proposals to be accepted and assessed on an ongoing basis.
Currently, the ITE program provides recipients with up to 50% of the cost of new, up‑to‑date equipment and materials used to train pre‑apprentices and apprentices in the Red Seal trades. The updated rules add coverage of shipping and installation and introduce the higher contribution rate for specified projects.
The federal government said it will engage with partners to explore further enhancements to apprenticeship programming under the Canadian Apprenticeship Strategy.
This work will include responding to feedback from apprentices and training organisations, such as interest in funding for renovation needs at training facilities, to ensure supports “keep pace with labour market needs.”
The ITE funding stream is open for applications from:
- Unions representing Red Seal trades workers
- Organisations that manage their own training funds
- Training providers that deliver technical training to apprentices as part of a recognised apprenticeship program or Red Seal trade
Applications can be submitted by mail, email or through the federal Grants and Contributions Online Services (GCOS) portal, which ESDC describes as a secure online environment for accessing its funding opportunities.
Although most employers will not apply directly, ESDC’s framework allows organisations to work with their union and training partners to shape funding proposals that reflect their equipment needs and skills requirements.
Union Training and Innovation Program
Also, Budget 2025 proposes an additional $75‑million expansion of UTIP over three years, aimed at further supporting union‑based apprenticeship training in the Red Seal trades.
Since 2017, UTIP funding has supported more than 145,000 participants, including 28,463 in 2024–25, according to ESDC. The program backs union‑led projects that upgrade training equipment, develop innovative approaches to apprenticeship and improve the participation and success of under‑represented groups.
The changes are part of the federal government’s broader response to Canada’s housing and infrastructure pressures.
“Canada is unlocking its full economic potential and the way to get there is through the hard work of those who build – the skilled trades people,” said the Honourable John Zerucelli, Secretary of State (Labour), in the announcement.
“We need more apprentices to complete their training so that Canada can advance our key priorities: increasing housing construction, meeting the Defence Industrial Strategy, and building our infrastructure and major projects,” he said.
Zerucelli added that the government is “delivering high‑quality training for our workers and by investing in modern and state‑of‑the‑art training equipment and materials, we are laying the foundation for young people to build Canada strong.”
Labour market context
The announcement comes against the backdrop of significant labour pressures in the skilled trades. By 2033, more than 410,000 job openings are expected for skilled trades workers in the construction sector alone, including 189,000 positions due to anticipated retirements.
Canada’s construction sector, in particular, is on track for a significant surge in activity over the next decade, driving the need for hundreds of thousands of additional workers, according to a new report. By 2034, the industry will face a total hiring requirement of 380,500 workers, forecasts BuildForce Canada.
Nearly $1 billion in federal funding is provided annually to support apprenticeships in Canada, including through loans, project funding, tax credits and deductions, and Employment Insurance benefits aimed at making trades training more accessible.
Information about the skilled trades, including how to become a tradesperson and what financial supports are available during training, is available at Canada.ca/skilled-trades, which employers can reference in recruitment campaigns and career information for prospective apprentices.
