Government of Canada invests in Northern Ontario and launches new measures to protect, build, and transform Canada's workforce and Build Canada Strong

THUNDER BAY, ON, Sept. 8, 2025 /CNW/ - 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.

Quotes

"Canadian workers are the backbone of our economy, driving success in every corner of our country. By investing in skills, training, and resources, we are equipping workers with the tools they need to succeed today, and the confidence to lead tomorrow. Together we are building Canada strong."
— The Honourable Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario  

"Canadian workers are facing a global economy that is changing rapidly but that holds significant opportunity for our workforce and for our country.  The measures highlighted today are a good example of how we can put smart, strategic investments in place to help our workers advance their skills and build a Canada for the future."
— The Honourable John Zerucelli, Secretary of State (Labour)

"We are proud to play a role in the ongoing development of new products and technologies that promote the growth of the forest sector and the North. Thanks to support from FedNor and the Government of Canada, CRIBE will continue to help develop a sustainable and innovative forest bio-economy that works for businesses, organizations, and the communities they call home. We are excited to continue helping to create new jobs and prosperity, that benefit everyone."
— Scott Jackson, CEO, Centre for Research & Innovation in the Bio-Economy (CRIBE)

Quick facts

• A recent evaluation of the LMDAs showed that for each $1 invested in skills development, $1.54 in social benefits was generated for each person who received LMDA supports.
• The unemployment rate stands at 7.1% as of August 2025, indicating significant labour market challenges due to tariff impacts.
• In March 2025, the Government introduced a suite of temporary employment insurance (EI) measures in response to tariffs imposed on Canadian goods.
• The EI Work-Sharing Program flexibilities announced earlier this year to improve access and duration of agreements under the Program remain in place until March 2026. Strong employer uptake on the EI Work-Sharing Program with these flexibilities has helped avert over 11,000 layoffs, including in the hard-hit manufacturing sector.
• Job Bank is the leading source of jobs and labour market information in Canada, with over 100,000 jobs advertised per month, 300,000 registered employers, nearly 15 million jobs postings views per month, and 2 million job profile monthly views.

Associated links

• Backgrounder: Government of Canada invests in Northern Ontario and launches new measures to protect, build, and transform Canada's workforce and Build Canada Strong
• Backgrounder: Government of Canada invests over $3.5 million in forestry industry and economic resilience in Northern Ontario
• News release: Prime Minister Carney launches new measures to protect, build, and transform Canadian strategic industries | Prime Minister of Canada
• News release:  Prime Minister Carney announces new measures to protect and strengthen Canada's steel industry | Prime Minister of Canada
• News release: Prime Minister Carney announces new measures to transform Canada's softwood lumber industry | Prime Minister of Canada

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SOURCE Employment and Social Development Canada

Contacts: For media enquiries, please contact: Jennifer Kozelj, Senior Communications Advisor and Press Secretary, Office of the Minister of Jobs and Families, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]