Calgary builders ‘deeply disappointed’ with funding cuts

Key Takeaways:

• The Alberta government has placed an “indefinite hold” on the Canada-Alberta Job Grant program for the rest of the fiscal year due to a $70.8 million cut in Labour Market Transfer Agreement (LMTA) funding from the federal government.
• The termination of the Canada-Alberta Job Grant program will disproportionately affect small/medium enterprises in Alberta, especially within the construction industry. These businesses rely heavily on the grant to subsidize employee training costs.
• The Calgary Construction Association (CCA) expressed deep disappointment with the funding cuts, highlighting the Canada-Alberta Job Grant as crucial for bridging the skills gap in the construction industry.

The Whole Story:

Alberta is putting an “indefinite hold” on the Canada-Alberta Job Grant program for the rest of the fiscal year in response funding cuts from the federal government.

Provincial officials noted that Ottawa unexpectedly announced its decision to cut $70.8 million in Labour Market Transfer Agreement (LMTA) funding for Alberta.

Minister of Jobs, Economy and Trade Matt Jones stated that he sent several letters to the federal government, including Prime Minister Justin Trudeau and Minister of Employment, Workforce Development and Official Languages Randy Boissonnault urging them to reconsider the cuts.

“As a result of this cut, Alberta’s employers will be short roughly $10 million in skills and training funding for 2024-25. This means approximately 1,000 businesses, and the training for up to 4,000 Albertan employees, will be impacted,” said Jones.

He explained that LMTAs support important workforce development programs that help Albertans get the training they need to find and keep good jobs. This includes the Canada-Alberta Job Grant program, which provided nearly $27 million in 2023-24 to Alberta employers so new workers could be properly trained. This funding also supported existing employees in gaining job-related skills, with small- and medium-sized businesses receiving approximately 80% of the overall funding.

“This cut to funding has serious, far-reaching consequences for workers and comes at a time when Alberta continues to face critical skills shortages in several industries, including construction, health care and education,” said Jones. “The Canada-Alberta Job Grant program has helped thousands of Albertans close skills gaps, further strengthening Alberta’s labour market and growing our economy.”

The Calgary Construction Association (CCA) stated that it was “deeply disappointed” by the province’s decision to cut the program and the initiative has been instrumental in the development of a highly skilled workforce within the construction industry.

“The Canada-Alberta Job Grant has been a cornerstone program to bridge the skills gap in the construction industry,” said Bill Black, president and CEO of the association. “In an industry that is constantly evolving and facing a shortage of qualified professionals, this grant has enabled businesses to invest in their employees, ensuring they possess the latest skills and knowledge to meet the demands of modern construction projects while developing a skilled workforce.”

The group explained that the termination of the Canada-Alberta Job Grant program will ultimately and disproportionately affect small and medium enterprises (SMEs) within the construction industry. They noted that unlike larger corporations that often have the resources to invest independently in workforce training, SMEs heavily rely on this grant to subsidize the costs of upskilling their employees. Without this crucial funding, many smaller businesses will struggle to provide the necessary training to their workforce, hindering their ability to stay competitive, adopt new technologies, and meet evolving industry standards.

The CCA emphasized that investing in workforce development is not just a matter of economic necessity but a strategic priority for the future of industry and province. They stressed that skilled trade workers are the backbone of construction, driving innovation, safety, and quality in every project.

In the next decade, 700,000 of the four million Canadians who work in the trades are expected to retire. Moreover, according to data analyzed by Alberta Jobs, Economy and Trade, there were 7,560 construction trades and management job vacancies in the Calgary economic region in Q3 2023, representing a staggering one-quarter of all job vacancies (30,500) in the city.

“The decision to cut this funding undermines the progress we have made in building a robust and competitive construction workforce in Alberta,” said Black. “We urge both the provincial and federal governments to reconsider this decision and explore alternative solutions to address the funding gap. Ensuring continuous support for workforce training programs is vital to maintaining Alberta’s competitive edge and achieving long-term economic prosperity.”