Ontario Investing $1 Billion in Skills Development Fund to Protect Workers
May 8, 2025
New funding will support workers in the face of U.S. tariffs and economic uncertainty
As the next step in its plan to protect Ontario workers in the face of tariffs and economic uncertainty, the provincial government is expanding its Skills Development Fund (SDF) by nearly $1 billion over the next three years, for a total of $2.5 billion. This funding will help train and reskill Ontario workers, including those directly impacted by layoffs resulting from tariffs and ensure they have the necessary support to find good-paying jobs and help strengthen Ontario’s economy.
“We’re already seeing the impact of President Trump’s tariffs and the economic uncertainty he has created on Ontario workers,” said Premier Doug Ford. “My message to these workers and their families is clear: We’ll always have your backs. Today’s announcement of a further $1 billion in SDF funding is just the latest step in our plan to protect Ontario by investing in workers and making sure they have the support they need to succeed, no matter what comes our way.”
To help Ontario workers gain in-demand skills and practical hands-on experience, the government is expanding the Skills Development Fund by $955 million over three years starting in 2025–26.
This includes $705 million in new funding through the upcoming 2025 Ontario Budget to train more workers through the SDF Training Stream, building on the additional $100 million announced in January 2025. These funds will support more projects that will help build Ontario and protect workers and jobs in industries expected to face pressures from U.S. tariffs, including manufacturing and health care.
Through the upcoming 2025 Ontario Budget, the government is also providing $150 million over three years starting in 2025–26 to support increased demand in the SDF Capital Stream. This investment will help more organizations build, expand and retrofit their training facilities to deliver better training programs and help more workers get better jobs and bigger paycheques.
“Ontario’s prosperity is built with the hands of skilled workers,” said David Piccini, Minister of Labour, Immigration, Training and Skills Development. “Through the Skills Development Fund, our government is making historic investments in the training, tools and supports that workers need to succeed. Ontario’s greatest competitive advantage is our highly skilled, world-class workers and today’s investment strengthens their paycheques and ensures Ontario remains strong in the face of global uncertainty.”
The province is protecting Ontario’s workers against U.S. tariffs and economic uncertainty. These new investments through the Skills Development Fund brings the total SDF funding commitment to $2.5 billion, continuing to demonstrate the government’s support for major industries and sectors while training the workers needed to build and strengthen Ontario’s economy.
“Our government has a plan to protect and support the training of the province’s highly skilled and world class workforce against U.S.-imposed tariffs and for generations to come,” said Peter Bethlenfalvy, Minister of Finance. “Our government continues to demonstrate our commitment to invest in our greatest resource, our workers. With these investments through the Skills Development Fund streams, we are taking bold actions to support our workers and businesses, while ensuring the economic prosperity of the province.”
More information about the government’s plan to protect Ontario, grow our economy and make Ontario the most competitive jurisdiction in the G7 to invest, will be included in the 2025 Ontario Budget, to be released on May 15, 2025.
Quick Facts
- More than 500,000 workers are expected to be needed to fill job openings in skilled trades-related occupations in Ontario over the next decade.
- Since the Skills Development Fund launched in 2021, the Ontario government has invested $2.5 billion through both SDF streams, supporting the training of over one million workers for in-demand careers across the province.
- The Skills Development Fund is comprised of two funding streams: the Training Stream, which supports hiring, training and upskilling programs for job-seekers, apprentices and workers; and the Capital Stream, which supports upgrades or construction of training centres for high-demand jobs in key sectors of Ontario’s economy such as skilled trades.
- The SDF Capital Stream of the Skills Development Fund is exclusively funded by the Government of Ontario. The SDF Training Stream is supported through labour market transfer agreements between the Government of Canada and the Government of Ontario.
Quotes
“On behalf of all building trades workers, we welcome today’s announcement to invest $955 million over three years towards added funding for the SDF capital and training streams. The government is demonstrating its firm commitment to support Ontario during an uncertain time. These considerable investments will increase construction training capacity to meet the needs of projects, securing continued employment for the workforce. We look forward to continued collaboration as we build infrastructure to propel our economy forward.”
– Marc Arsenault
Business Manager and Secretary-Treasurer, Provincial Building and Construction Trades Council of Ontario
“On behalf of LiUNA, we welcome the expansion of the Skills Development Fund with an additional $955 million over three years that will deliver a worker first focus as we invest in and protect Ontario’s skilled workforce. The Skills Development Fund Capital Stream extends beyond brick and mortar. It is a direct investment in people and potential. It is a direct investment in workers. By equipping workers with the right skills, it strengthens our workforce, improves productivity and keeps Ontario competitive in the global economy.
Through our continued collaboration with the provincial government, industry and non-profit partners, we are breaking down barriers, advancing innovative training and apprenticeship programs and strengthening access to good jobs and meaningful careers. Together we are building, connecting and strengthening an Ontario for all.”
– Joseph Mancinelli
International Vice President and Canadian Director, LiUNA
“As Ontario continues to invest in infrastructure to increase our self-reliance in the face of US tariffs, our province needs a skilled, mobile and productive workforce to build it. That is why the Carpenters’ Regional Council is thrilled to support additional funding for the highly successful SDF Capital and Training Streams. This investment will build on the incredible results to date, ensuring more young people have access to the rewarding careers in the trades.”
– Tom Cardinal
President and Chief of Staff, Carpenters’ Regional Council
“The Ontario Home Builders’ Association applauds the Ministry of Labour, Immigration, Training and Skills Development for its transformative increase in Skills Development Funding — a crucial investment in Ontario’s workforce. This funding has empowered OHBA and our members to deliver valuable initiatives that connect skilled trades talent to meaningful careers in residential construction and support long-term workforce retention. These investments are critical to preventing labour shortages, keeping pace with housing demand and protecting Ontario’s economic stability in the face of challenges like American tariffs. This renewed commitment will help ensure our province continues to grow with strength and resilience.”
– Scott Andinson
CEO, Ontario Home Builders’ Association
“As vehicles become more advanced, so must the skills of those who service them. Ensuring technicians have access to the latest training is essential to keeping vehicles on the road and Canadians safe. This investment in the Skills Development Fund will help address the growing demand for qualified auto care professionals — especially in underserved rural Ontario communities — strengthening the sector and the people who rely on it every day.”
– Jean-François Champagne
President and CEO, AIA Canada
“On behalf of Local 787, I am proud to commend the leadership of Premier Doug Ford and the Hon. David Piccini, Minister of Labour, Immigration, Training and Skills Development, as they announce robust investments to better support the delivery of training initiatives. This funding will strengthen Ontario’s workforce against the threat of U.S. protectionism and tariffs. In partnership with Ontario’s government, the enhanced Skills Development Fund will help keep workers working who build our economy, strengthen our country and most importantly, protect their families. Together, we will protect Ontario.”
– Andrew Tarr
Business Manager, UA Local 787
“We are truly grateful to Premier Ford and the Government of Ontario for this significant $955 million investment in the Skills Development Fund. It’s a powerful statement of support for the people of Ontario — and for the future of our workforce. At Skills Council of Canada, SDF funding has allowed us to create meaningful programs that connect thousands of youth, newcomers and vulnerable communities with hands-on skilled trades training and real career opportunities. These investments are changing lives and we’re proud to be part of that journey.”
– Brad Loiselle
CEO, Skills Council of Canada
“This Skills Development Fund funding top-up comes at a crucial time. As detailed in our latest workforce report, as many as 22,000 manufacturing workers retire each year from our Ontario workforce. We need predictable resources to train the workers we need — the millwright, machinists, electricians and technology specialists to implement robotics or predictive maintenance solutions. Today’s announcement will help secure our future. Keep calm and keep training.”
– Vincent Caron
Vice President, Ontario Government Relations and Member Advocacy, Canadian Manufacturers and Exporters
“We are entering another period of uncertainty with the impact of new U.S. tariffs and Ontario’s hospitality industry is feeling it. This means fewer events, fewer bookings and fewer hours for hospitality workers. Our members at Unite Here Local 75 are already seeing the signs: shifts are being cut and the future is unclear once again. That’s why we welcome Premier Doug Ford’s commitment to increase funding for the Skills Development Fund. During the pandemic, this funding was a critical support for our members, helping them get the skills they needed to stay connected to work. With this renewed investment, Local 75 members and other hospitality workers will be equipped to meet the challenges ahead and are not left behind.”
– Guled Warsame
President, UNITE HERE! Local 75
“Skills Ontario applauds the investment the Ontario government is making into skilled trades to build the provinces future workforce. The Skills Development Fund has proven to be an excellent vehicle to develop and deliver skills solutions to address the challenges we face. The Ford government must be commended for its leadership and commitment to growing the economy and improving our quality of life.”
– Ian Howcroft
CEO, Skills Ontario
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