Ontario Invests $1 Billion in Skills Training to Shield Workers from U.S. Tariffs and Economic Uncertainty

TORONTO — The Ontario government is injecting nearly $1 billion in new funding into its Skills Development Fund (SDF) over the next three years, a major expansion aimed at protecting workers and industries from the growing impact of U.S. tariffs and global economic headwinds.

Premier Doug Ford announced the move Tuesday, calling it the next step in Ontario’s strategy to strengthen the economy through workforce development and resilience. The additional investment brings the province’s total commitment to the Skills Development Fund to $2.5 billion since its launch in 2021.

“We’re already seeing the impact of President Trump’s tariffs and the economic uncertainty he has created on Ontario workers,” said Ford. “My message is clear: we’ll always have your backs.”

What the $1 Billion Expansion Includes

The funding will be split across two core streams:

• $705 million will go toward the SDF Training Stream, helping workers gain in-demand skills and practical experience, particularly in sectors expected to be hit hardest by U.S. tariffs such as manufacturing, health care, and construction.

• $150 million will be allocated to the SDF Capital Stream, enabling organizations to build or upgrade training facilities to meet rising demand. This includes retrofitting spaces to deliver advanced hands-on instruction.

An additional $100 million was announced earlier in January 2025, bringing this year’s total new funding to $955 million.

Labour Minister David Piccini called Ontario’s skilled workforce “our greatest competitive advantage,” emphasizing that these investments will support jobs, wages, and long-term economic strength.

Broad Support from Industry and Labour Leaders

The expansion has been widely endorsed by major unions, industry associations, and skills development groups across Ontario.

• Marc Arsenault of the Provincial Building and Construction Trades Council said the investment “secures continued employment for the workforce.”

• LiUNA’s Joseph Mancinelli called the Capital Stream “a direct investment in workers,” noting the fund helps break down barriers and connect people to long-term careers.

• The Carpenters’ Regional Council, Ontario Home Builders’ Association, AIA Canada, Skills Ontario, and Canadian Manufacturers and Exporters all applauded the move, citing the urgent need to replace retiring workers and meet demand in housing and auto sectors.

Looking Ahead: Ontario Budget on May 15

The government says more details on its plan to “make Ontario the most competitive jurisdiction in the G7 to invest” will be unveiled in the 2025 Ontario Budget on May 15.

“These investments are changing lives,” said Brad Loiselle of the Skills Council of Canada. “We’re proud to be part of that journey.”

Ontario estimates over 500,000 skilled trade-related jobs will need to be filled in the next decade. With ongoing challenges posed by global trade tensions, the province is positioning workforce training as a cornerstone of economic stability and growth.

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