Liberal Party promises $8,000 apprenticeship grant to strengthen skilled trades workforce

Also plan to expand Labour Mobility Tax Deduction, for workers who travel more than 120 kilometres from home to work site

Liberal Party promises $8,000 apprenticeship grant to strengthen skilled trades workforce

The Liberal Party of Canada has unveiled a plan to offer an $8,000 apprenticeship grant for registered apprentices, along with expanded investments in training infrastructure, to address skills shortages in the trades sector.

“The next decades are going to be a great time to be in the skilled trades,” said Mark Carney, prime minister of Canada. “President Trump’s tariffs are already impacting Canadian industry, but by investing in workers, we will build a much stronger economy. My new government will make apprenticeship training more affordable so we can build more in this country and connect workers to higher-paying jobs.”

If an apprentice does not complete their program within the established timelines, the $8,000 grant will convert into an interest-free loan.

This initiative complements the existing Canada Apprentice Loan, which provides up to $20,000 in interest-free support to apprentices progressing through their training, according to the party.

The Liberals have also pledged to double funding for the Union Training and Innovation Program, increasing it from $25 million to $50 million. The enhanced funding will support investments in training spaces and classrooms.

A new $20 million capital funding stream is also planned for colleges to develop training infrastructure, including new classrooms for apprenticeship programs. The Liberal Party also plans to uphold the Apprenticeship Service program to support employers in hiring new apprentices in Red Seal trades, with up to $10,000 for eligible employers for each new apprentice hired.

More industries across the world doubled down on artificial intelligence training, according to a previous Udemy report.

This comes as there is a growing talent gap in terms of AI as the technology's adoption in workplaces expands while the number of qualified candidates is not keeping pace, according to a previous Bain & Company report.

Labour mobility in skilled trades

The Liberal Party has also committed to enhancing labour mobility for skilled tradespeople across Canada.

“We will build one Canadian economy - instead of 13 - where qualified workers can work anywhere in Canada,” they said.

They plan to expand the Labour Mobility Tax Deduction, enabling workers who travel more than 120 kilometres from their home to a job site to claim higher deductible expenses.

The party also intends to significantly raise the annual deduction limit, pending consultations with key industry stakeholders.

High housing costs are making it increasingly difficult for Canadian workers to relocate for better job opportunities, limiting talent mobility and slowing national productivity growth, according to a previous report from the Canada Mortgage and Housing Corporation (CMHC).

How to address workforce shortage in skilled trades

Here are some ways to address labour shortages, according to Randstad:

  • Invest in education and training.
  • Showcase the success stories of tradespeople who have built rewarding careers.
  • Emphasize diversity and inclusion.
  • Retrain experienced workers.
  • Leverage the powers of automation and robotics.
  • Enhance working conditions.

“Employers will need to continue to innovate their recruitment, training, and retention practices to keep their talent pipeline strong in 2025,” says Randstad.

“Stakeholders involved in creating jobs for skilled trades workers need to think ahead to create sustainable workforces over the short and medium term. As skilled trades workplaces evolve, employers will need to continue to adapt to offer the training, support, and benefits that keep talent in the trades.”

One reason many Canadians are struggling with finances these days is the labour shortage that numerous sectors are experiencing, according to a previous report.