Canada’s labour market is changing at a speed we’ve never seen before. Digital transformation, climate action, and demographic shifts are reshaping what jobs exist, the skills workers need, and how businesses grow. In the face of these changes, ICTC recently submitted recommendations to Employment and Social Development Canada (ESDC) as part of its consultation on building a modern, 21st-century workforce.

Our message was clear: Canada has the talent, the diversity, and the innovation to lead — but we need to remove barriers and invest strategically to get there.

Why this matters

Today’s economy is marked by twin transitions: digital and green. Artificial intelligence, robotics, and big data are altering how work is done, while the shift to a net-zero economy is transforming entire industries. Together, these changes will disrupt millions of jobs over the next decade. At the same time, young people are struggling with high unemployment, newcomers face barriers to putting their skills to work, and small businesses often hesitate to adopt the very technologies that would make them more competitive.

Without action, Canada risks falling behind. But with the right policies, we can build a workforce that is resilient, inclusive, and globally competitive.

Where Canada is strong

Canada already has some powerful building blocks in place. Public funding supports workforce programs across the country. Flexible pathways like bridging programs and work-integrated learning help young people gain real-world experience. And equity, diversity, and inclusion are built into many initiatives, ensuring underrepresented groups can access opportunities.

ICTC’s own labour market research — from electric vehicles to cybersecurity to creative tech — shows that targeted analysis and forecasting can help Canada anticipate where jobs will grow and what skills will be needed.

The challenges ahead

Still, our recommendations to ESDC highlight barriers that Canada must address:

  • Fragmented and outdated labour market information. Without clear data, businesses, workers, and policymakers can’t plan effectively.
  • Credential recognition that varies by province. Skilled newcomers are left on the sidelines, even as Canada faces shortages.
  • Low investment in training and technology. Many SMEs lack both the resources and the confidence to innovate.
  • Financial and administrative hurdles. For small businesses, the paperwork and costs of workforce programs can outweigh the benefits.

A roadmap for action

ICTC’s recommendations to ESDC point to a path forward:

  • Build a national framework for credential recognition. Workers should be able to move across provinces easily, and newcomers should see their expertise recognized more quickly.
  • Create a “heat map” of Canada’s labour market. Policymakers and businesses need a live picture of which jobs are at risk of automation, which sectors are growing, and how skills can transfer between them.
  • Support in-career training. Lifelong learning — through micro-credentials, modular training, and on-the-job programs — must become the norm.
  • Help SMEs innovate. Through tax credits, grants, and awareness programs, small businesses can adopt digital and green tools while investing in their workers.
  • Strengthen youth and newcomer pathways. Work-integrated learning, pre-arrival programs, and soft skills training can smooth transitions into meaningful careers.

Learning from what works

Canada already has successful models to build on. In Alberta, Edge Up helped oil and gas workers pivot into digital careers by mapping transferable skills, offering short training, and connecting participants with employers. WIL Digital has created thousands of student work placements, giving young people real-world experience while helping businesses expand their talent pools.

At the same time, programs like CyberTitan spark early interest in tech through gamified cybersecurity competitions, while Digital Dash equips teachers with ready-to-use curriculum on emerging technologies. For newcomers, GO Talent connects skilled immigrants with employers before they arrive in Canada, smoothing the path to meaningful work.

Together, these initiatives show that when training is practical, accessible, and linked directly to employers, it creates clear pathways into the jobs of tomorrow.

The role of AI

Perhaps the most urgent challenge is the rise of artificial intelligence. Research shows that approximately 60% of Canadian workers are exposed to AI-related job transformation. For some, AI will enhance productivity; for others, it could mean job displacement.

ICTC urges Canada’s government to take a balanced approach:

  • Focus AI adoption in areas where it complements rather than replaces human skills.
  • Support workers in adapting to AI through training and workforce development.
  • Invest in reskilling programs for occupations most at risk.

Handled wisely, AI can drive growth and innovation. Managed poorly, it could deepen inequality.

Moving forward

Canada’s future prosperity depends on how well we prepare our workforce today. By investing in skills, removing systemic barriers, and fostering collaboration between government, business, and labour, Canada can ensure that no one is left behind in this era of transformation.

ICTC’s submission to ESDC offers a roadmap: a workforce that is not only modern and productive, but also inclusive, sustainable, and resilient.

The choices we make now will shape the Canada of tomorrow.