Canada’s Federal Budget to Allocate Millions for Job Retraining and Faster Foreign Credential Recognition

Employment Minister Patty Hajdu has announced that the upcoming federal budget will commit $75 million over the next three years to expand an apprenticeship training initiative focused on Canada’s construction and building trades.

The planned funding, earmarked for the Union Training and Innovation Program during the 2026-27 fiscal year, is part of a new set of job-creation measures unveiled Monday.

Hajdu told The Canadian Press that the country is facing a serious shortage of workers holding Red Seal Trade certifications — credentials that qualify them to work nationwide in fields such as construction, automotive services, and hairstyling.

In addition, the government said it will collaborate with provinces and territories to accelerate the recognition of foreign professional credentials. A $97-million fund will be established for that purpose, drawn from existing Employment Department resources.

According to Hajdu, this reallocation is part of a broader government effort to find efficiencies across departments.

“The department has done a very thorough job of identifying areas that haven’t delivered the outcomes Canadians need,” she said.

“This investment is designed to encourage provinces and territories to move faster, since they oversee licensing bodies. It’s those regulators who ultimately need to act quickly.”

The minister declined to specify which departmental programs will see cuts to free up the necessary funding.

Hajdu also said the budget will introduce a new personal support worker tax credit, which could save eligible workers up to $1,100 per year in provinces without sectoral wage-supplement agreements with the federal government — including B.C., Newfoundland, and the Northwest Territories.

There are roughly 380,000 personal support workers in Canada, she added.

Finally, the upcoming budget bill will include an amendment to the Canadian Labour Code to limit the use of non-compete agreements in federally regulated workplaces.