Canada Bolsters Northern Ontario, Strengthens Workforce

Employment and Social Development Canada

September 8, 2025 Thunder Bay, Ontario Employment and Social Development Canada

The world is rapidly changing, and the effect is profound. To meet the challenges of our time, we must build Canada strong. This starts with strength, ambition, and action, right here at home.

To these ends, the Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario (FedNor) announced a series of investments to strengthen economic resilience across Northern Ontario. Building on previously announced measures to help transform the Canadian steel and softwood lumber industries, she also highlighted new initiatives and investments for workers and businesses most affected by tariffs and trade disruptions.

Of the funding announced today, over $3.5 million will help the forestry industry and boost economic resilience in Northern Ontario. Targeted investments will drive innovation, expand infrastructure, and diversify local economies for long-term resilience. These projects will strengthen Northern Ontario's forestry industry and ensure workers and businesses have the tools they need to succeed.

This announcement also highlights several new measures to support Canada's workforce and build economic resilience, including:

1. A reskilling package to train workers: The government will invest an additional $450 million over the next three years under the Labour Market Development Agreements. In partnership with provinces and territories, this investment will provide training programs for workers impacted by tariffs and global market shifts.

2. Regional Tariff Response Initiative: The Government will expand support to SMEs to $1 billion over three years, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors.

3. Workforce Alliances and Sectoral Workforce Investment Fund: The Government will invest $382 million over five years and $56 million ongoing to tackle urgent labour market challenges, bring together government, employers, unions, and industry organizations to develop and implement tailored workforce development strategies, and drive growth.

4. Employment Insurance temporary measures: The Government is extending measures until April 11, 2026, to ensure income stability for workers, particularly those who are most vulnerable to income shocks. This includes:

  • Waiving the one-week EI waiting period to support an additional 700,000 EI claimants.
  • Suspending the treatment of monies paid on separation which is expected to support close to an additional 175,000 claimants
  • Investing $1.6B over five years to temporarily give 20 extra weeks of income support, up to a maximum of 65 weeks to support nearly 190,000 long-tenured workers (LTWs).

5. Modernizing the Job Bank and launching a new online training platform: The Government is investing $50 million over five years towards a new digital jobs and training platform that will connect Canadians to jobs, tools, and training resources more quickly.

The full list of measures is available here.

These measures will give workers the tools they need to build a better future and help create the strongest workforce in the G7. As Canada's new Government embarks on these missions, we will transform our economy - from one of reliance to resilience. By supporting our workers and industries, we are building Canada strong.

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