Up to $7,000 in subsidies available to Canadian employers
The federal government has officially opened the employer application period for the Student Work Placement Program (SWPP) for the Summer 2025 term.
Employers can apply to receive funding for each post-secondary student they hire with a start date between May 1 and August 31, 2025.
Under the program, employers are eligible for the following subsidies:
- Up to 50% of the wage cost for the placement (up to a maximum of $5,000 per placement)
- Up to 70% (up to a maximum of $7,000 per placement) for first-year students and under-represented groups, such as women in science, technology, engineering, and mathematics (STEM), Indigenous students, people with disabilities, and newcomers
Employer eligibility criteria
To qualify for funding, employers must be:
- A registered Canadian business or not-for-profit;
- Willing to provide a quality work-integrated learning experience to a post-secondary student;
- Committed to paying the student for the role, with the financial capacity to pay the full wage for the duration of the placement (the wage subsidy will be administered after receiving all supporting documentation at the end of the placement);
- Compliant with all federal and provincial human rights and labour legislation, regulations, and relevant standards, including the Occupational Health and Safety Act and the Employment Standards Act;
- Where legally required, responsible for Workplace Safety and Insurance Board (WSIB) or alternate workplace insurance coverage.
Ineligible employers include (but are not limited to):
- Federal, provincial, territorial, and municipal governments
- Hospitals and public long-term care facilities
Crown corporations - Post-secondary institutions (PSIs)
- Financial institutions
- Non-secular institutions*
Employers can start an application at SWPProgram.ca.
The SWPP gives post-secondary students across Canada paid work experience related to their field of study. Since its launch in 2017, SWPP has supported over 249,000 work opportunities for students in all fields of study, including health services, transportation, advanced manufacturing, biotechnology, and more.
Previously, Prince Edward Island urged employers across the province to take advantage of the Jobs for Youth program to hire students for summer employment.
Ottawa has also opened the hiring period under the Canada Summer Jobs 2025 program.
How employers benefit from SWPP
The SWPP has shown measurable benefits for employers. According to Magnet, a national delivery partner for the program:
- 86% of employers said they had an excellent experience
- 48% hired students long-term after their placement
Each SWPP hire generated approximately $400 in additional monthly value for employers
"At a time when developing skills for Canada's key sectors and bolstering talent pipelines for small businesses is more critical than ever, SWPP offers a significant boost for students and employers, especially small and medium-sized businesses," says Magnet.
Randstad Canada highlights several advantages of hiring seasonal employees, including:
- More flexibility – Seasonal hiring enables employers to scale their workforce up or down based on demand, an important asset during uncertain economic periods.
- Lower costs – Seasonal roles help avoid the long-term financial commitment of full-time staff when additional help is only needed temporarily.
- Employment trial – These positions provide an opportunity to evaluate a student’s performance and potential fit for future full-time roles.
- Faster hiring – Seasonal contracts allow for an expedited hiring process due to their short-term nature and reduced screening requirements.
Canadian employers’ struggle to fill open job positions continued in the first quarter of 2025, according to the Canadian Federation of Independent Business (CFIB).
Overall, the employment rate in Canada saw little change in April 2025 (+7,400; +0.0%), compared to data from March and February, according to Statistics Canada (StatCan).
