‘We are investing to support our businesses, stimulate innovation, and accelerate the transformation of our economy’
As HR professionals across Quebec face intensifying competition for skilled talent, new opportunities to tap into government‑funded training and innovation programs are coming their way.
The province’s 2026–2027 budget combines more than $1.7 billion over five years to accelerate Quebec’s economic transformation with nearly $9.6 billion in additional measures to strengthen public services, support communities and protect purchasing power, while keeping to a path back to balanced finances.
“In a global context marked by trade uncertainty and technological change, Québec must act with determination,” Finance Minister Eric Girard said. “With this budget, we are investing to support our businesses, stimulate innovation, and accelerate the transformation of our economy.”
A total of $693 million will support businesses adapting to the new economic climate, including $410 million for investment projects in promising sectors. The Quebec government says it aims to act as a catalyst for private investment, productivity and economic transformation, leveraging the province’s trade climate, diversified economy and natural resources.
Measures are also planned to help strategic businesses keep their head offices in Quebec, including via business succession, and to develop the critical and strategic minerals sector, with up to $2.0 billion in additional capitalisation for investment funds. For HR teams in affected industries, these moves point to ongoing pressure to recruit, develop and retain high‑skill talent while managing leadership and succession risks.
Previously, the federal and British Columbia governments announced an investment of $70.4 million over three years to retrain and support more than 8,000 workers in industries affected by global tariffs, with services delivered through the WorkBC network.
Indigenous participation, AI innovation
The Quebec budget creates a $500‑million fund to provide loan guarantees enabling Indigenous communities to participate financially in economic projects, alongside commitments to increase Indigenous participation in environmental consultations.
To speed up major industrial projects, the government is relying on Bill 5, An Act to accelerate the granting of the authorizations required to carry out priority national‑scale projects, which seeks to create a simpler and more predictable approval process “while maintaining the highest government standards for environmental protection and transparency.”
The government is also allocating $283 million over five years to support the innovation chain, foster innovative industries and promote adoption of cutting‑edge technologies. Innovation and research are described as “at the heart of improving the productivity and competitiveness of Québec businesses” in the budget.
More than $90 million will fund the innovation ecosystem and key bodies, with a new Quebec Research and Innovation Investment Strategy to be developed by 2028. Additional investments will support innovation zones, adoption of artificial intelligence and quantum technologies, and an innovative construction district. HR leaders should expect sustained demand for AI, engineering, construction‑tech and digital skills, reinforcing the need for upskilling, reskilling and internal mobility.
More than $580 million over five years is earmarked for small and medium‑sized businesses (SMBs) across all regions, including over $215 million to strengthen regional assets, tourism and the bio‑food sector, and more than $365 million to bolster the forestry sector amid the softwood lumber dispute with the United States. These measures are designed to stabilise and grow regional employment, influencing HR strategies around attraction and retention outside major urban centres.
Currently, HR professionals play an important role in driving the business forward in organisations, and business leaders are very much aware of this. Specifically, 65% of senior leaders see HR as a “key business enabler, driving transformation and value creation,” note the Boston Consulting Group (BCG) and the World Federation of People Management Associations (WFPMA). However, more than half of leaders (51%) cite administrative workload as the primary barrier preventing HR from contributing more strategically.
People, services and future workforce
Of the Quebec budget, nearly $4.3 billion over five years is directed at what the government calls its main missions, with almost $2.2 billion to improve access to health and social services and strengthen front‑line care.
The budget includes $639 million for initiatives to promote students’ educational success and attract workers to the education network, plus nearly $392 million for higher education training, labour market integration and research, including $150 million to promote engineering and information technology disciplines and $132 million to extend employment assistance allowances.
Additional measures cover the training and qualification of childcare educators, expansion of medical school cohorts, integration of immigrants into the workforce, development of the Indigenous workforce and extra funding for university research. For HR, these initiatives aim to reinforce long‑term talent pipelines in critical occupations, potentially easing future recruitment challenges in healthcare, education, STEM and childcare.
Cost of living, social supports and infrastructure
Also, more than $3.6 billion is being invested to “ensure the well‑being of Quebecers and strengthen the vitality of communities,” including nearly $2.4 billion to help residents cope with the rising cost of living. Measures include converting 5 000 non‑subsidised childcare spaces, capping school tax increases at 3%, supporting access to housing, and addressing homelessness, mental health and domestic and sexual violence.
The Quebec Infrastructure Plan will increase by over $5 billion to $167 billion over six years, focused on health, education, public transit, the road network and digital transformation of public bodies, with 71% going to maintaining existing assets. These social and infrastructure investments will shape employees’ daily realities — from commuting and childcare to mental health — and will be central to how HR designs benefits, flexible work and broader people strategies.
Following the release of the budget, the Fédération de la santé et des services sociaux (FSSS‑CSN) said that after the March 2025 budget it “regretted that, by bringing down an austere budget, the CAQ government was asking Quebecers to get used to inadequate services” and warned that holding health‑and‑social‑services growth below system costs would further degrade care.
The group explicitly opposed solving deficits with cuts in the public health and social‑services network and called for planning exercises on workforce and resources before Budget 2026‑2027.
The Quebec government should focus on restraining public‑sector wages and benefits as it prepares its next budget amid mounting deficits and rising debt, the Fraser Institute previously said.
