New workforce initiative aims to support up to 27,000 workers in key industries including steel, lumber and automotive manufacturing
The federal and Ontario governments are investing more than $228 million to help workers affected by tariffs and global trade disruptions retrain and upgrade their skills, part of a broader effort to strengthen key industries and support employment across the province.
Announced in Ottawa on March 10, the $228.8-million investment from the Government of Canada will fund the Canada-Ontario Workforce Tariff Response over the next three years. The program is expected to help as many as 27,000 Ontario workers develop new skills and remain competitive in sectors facing increasing pressure from U.S. tariffs and shifting global supply chains.
The initiative focuses on industries that play a significant role in Ontario’s economy, including softwood lumber, steel and automotive manufacturing, where trade measures and market volatility have raised concerns about job security and investment.
“Ontario’s workers are at the forefront of our economy, and our government will never shy away from helping them when it’s needed,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development. “As tariffs continue to impact key sectors, we are standing with the workers and communities feeling these pressures the most. Through this funding, we’re helping workers retrain, upgrade their skills and move into new opportunities so they can continue to work, thrive and support their families while keeping Ontario strong, competitive and resilient.”
Training programs aimed at keeping workers employed
A key component of the initiative will be the expansion of Skills Advance Ontario (SAO), a program designed to help workers remain employed, upgrade their skills and transition into in-demand jobs. The program also supports employers seeking to retain experienced staff during periods of economic uncertainty.
Skills Advance Ontario will provide targeted training and workforce development opportunities in sectors expected to see strong growth, including health care, skilled trades, energy and natural resources.
Eligible participants will include laid-off and unemployed workers looking to transition into high-demand fields, employees whose workplaces are participating in Employment Insurance work-sharing agreements, and workers needing additional training to remain competitive within companies directly affected by tariffs.
Communities with significant economic dependence on affected industries will also be a focus of the initiative, with governments aiming to minimize job losses while preparing workers for emerging opportunities.
“Canada’s workforce is strongest when employers and training partners work together. As global trade evolves, no worker will be left behind,” said Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario. “Through the Workforce Tariff Response, that means providing the tools and training workers need to secure good jobs, continue building strong communities, and ensure Canada remains resilient in the face of global challenges.”
Applications for Skills Advance Ontario are now open and will be accepted on an ongoing basis. Employers, employment agencies and training providers can submit project proposals to the provincial government, while workers interested in participating are encouraged to contact participating employers, service providers or Employment Ontario.
Industry groups welcome support amid trade pressures
Government officials and industry leaders say the funding arrives at a critical time as businesses navigate trade tensions, tariffs and ongoing adjustments in global supply chains.
“Ontario’s workforce is among the most talented and highly sought after in the world, with deep capabilities across the steel, manufacturing, lumber and automotive industries. As global supply chains undergo unprecedented realignment, the Canada-Ontario Workforce Tariff Response will equip workers with the skills and resources necessary to build a more competitive, resilient and prosperous economy,” said Vic Fedeli, Minister of Economic Development, Job Creation and Trade and Member of Provincial Parliament for Nipissing.
Forestry sector representatives also highlighted the importance of workforce training to maintain stability in regions dependent on resource industries.
“We must stand together to protect the workers who depend on the good paying jobs in Ontario’s forestry sector. The support provided through the Canada-Ontario Workforce Tariff Response will give workers the training and skills needed to build a more competitive, resilient forestry sector that can stand up to changing markets and trade uncertainties,” said Mike Harris, Minister of Natural Resources and Member of Provincial Parliament for Kitchener–Conestoga.
Kevin Holland, Associate Minister of Forestry and Forest Products and Member of Provincial Parliament for Thunder Bay, emphasized the challenges facing northern communities tied to forestry.
“Workers in Ontario’s forest sector are facing real pressure from global tariffs and market shifts. By working together, our federal and provincial governments are ensuring forestry workers can access the training and employment supports they need to adapt, stay competitive and protect northern Ontario communities,” he said.
Labour organizations also signalled support for the program.
“Steelworkers know that global tariffs and economic uncertainty can put good union jobs at risk and create real challenges for working families and communities. Investments like the Canada-Ontario Workforce Tariff Response are important to ensure workers have access to the training and support they need to protect jobs, strengthen our industries, and build a more resilient workforce,” said Kevon Stewart, USW District 6 Director for Ontario & Atlantic Canada.
Broader effort to strengthen Ontario’s workforce
Industry groups and employers say retraining programs and workforce development initiatives are essential to maintaining Canada’s competitiveness as trade conditions evolve.
Ken Delaney, Executive Director of CSTEC, said workforce investment is a critical response to tariff-driven disruptions.
“We are thrilled that the Governments of Canada and Ontario have launched the Canada-Ontario Workforce Tariff Response initiative. Programs that help retrain laid off workers and upskill those currently employed in sectors under pressure is exactly what is needed right now. When tariffs are causing layoffs and undermining new investment, and when workforce disruptions occur due to these tariffs or due to the adoption of new technologies, reinvesting in one of Canada’s and Ontario’s great competitive advantages, our skilled workforce, is just smart public policy.”
Manufacturing leaders also noted that the program could help stabilize employment during a volatile trade environment.
“We welcome this announcement from Ministers Hajdu and Piccini. Algoma Steel, like many companies in the steel sector, is navigating a challenging and uncertain trade and market environment. The support being provided by the Governments of Canada and Ontario for affected workers is welcome and will help workers and communities during this period,” said Rajat Marwah, CEO of Algoma Steel.
Additional workforce programs such as Protect Ontario Workers Employment Response (POWER) Centres, Better Jobs Ontario and Integrated Employment Services may also receive funding through the tariff response initiative.
Employment Ontario currently delivers free employment services and training programs through more than 700 service locations across the province. In the 2024-2025 fiscal year, the network assisted more than 693,000 Ontarians.
Provincial officials say the latest investment is intended to ensure Ontario workers remain competitive and prepared as industries adapt to new economic conditions and global trade realities.