Budget 2025 Canada Releases Major Investments to Strengthen Skills, Worker Mobility, and Labour Market Growth

Canada is preparing to take significant steps to support workers and stabilize the labour market with the release of Budget 2025 Canada. The focus is clear: strengthen the workforce, expand access to training, and ensure workers have fair opportunities to grow. This update reflects Canada’s long-term goal of building a skilled workforce capable of meeting the demands of housing development, infrastructure expansion, healthcare support, and the growing digital economy. At a time when global markets are shifting, Canada is choosing stability, resilience, and growth rooted in its people.

Strengthening Skilled Trades Training

One of the key measures in Budget 2025 Canada is the expansion of the Union Training and Innovation Program. This initiative will fund more apprenticeship and hands-on training opportunities in Red Seal trades.

Impact on the Labour Market

• More skilled trades workers for construction and infrastructure
• Greater support for apprentices and early-career workers
• Stronger talent pipelines in high-demand fields such as carpentry, electrical, welding, and HVAC

This plays a critical role in Canada’s plan to accelerate homebuilding and major infrastructure projects.

Support for Personal Support Workers Through a New Tax Credit

Personal Support Workers (PSWs) have been essential across long-term care, home care, and community health settings. To recognize their contribution, Budget 2025 will provide a refundable tax credit equal to 5% of eligible earnings, up to $1,100 per year, for workers in regions without wage-boost agreements.

This Measure Helps

• Improve worker retention in the care sector
• Provide financial relief to lower and middle-income healthcare workers
• Support seniors and patient care stability

Greater Worker Mobility Through New Limits on Non-Compete Agreements

Budget 2025 Canada also proposes changes to the Canada Labour Code to restrict non-compete agreements in federally regulated workplaces. This means workers will be able to:

• Move to better-paying positions more freely
• Explore opportunities across the labour market
• Start new businesses without restrictions

This is expected to increase job mobility and competition, benefiting workers and employers.

Faster Credential Recognition for Newcomers

Many newcomers arrive with strong professional experience, especially in healthcare and skilled trades. However, licensing delays have often stood in the way of employment. To address this, Budget 2025 Canada will create a Foreign Credential Recognition Action Fund, supported by $97 million over five years.

Goals of the Fund

• Reduce licensing wait times
• Improve transparency in evaluation requirements
• Help skilled newcomers enter the workforce faster

This initiative is particularly beneficial for nurses, physicians, personal support workers, and tradespeople, all sectors facing labour shortages.

Additional Support for Workers Affected by Trade and Market Changes

Budget 2025 also includes large-scale retraining initiatives for workers impacted by U.S. tariffs and economic shifts. This includes:

• A new national digital job and training platform
• Additional Employment Insurance (EI) support in affected sectors
• Funding for Workforce Alliances to align training with real labour market needs

Budget 2025 Canada Focuses on Economic Strength Through People

Budget 2025 Canada places workers at the center of Canada’s growth strategy. The measures introduced strengthen training capacity, improve job access, protect worker mobility, and enhance pathways for skilled newcomers. With these changes, Canada continues building a labour market that is fair, forward-looking, and resilient.