What this program stream offers

On this page

• What the program supports
• Program objectives
• Program principles
• Program outcomes
• Expected project results
• Funding priorities
• Glossary

What the program supports

Program funding will focus on key sectors essential to Canada's economic resilience and growth, while advancing government priorities and strategies. These investments will include, but not limited to:

• housing and construction
  • Outcome: accelerate residential construction capacity to meet national affordable housing targets
• transportation and supply chain
  • Outcome: strengthen supply chains, reduce trade barriers, and improve goods movement efficiency
• advanced manufacturing
  • Outcome: advance adoption of technology (AI, robotics) to boost productivity and foster growth of critical sectors
• energy and electricity
  • Outcome: drive decarbonization and expand clean energy infrastructure for sustainable growth
• mining and minerals
  • Outcome: secure critical minerals supply and enable major projects for economic development
• care economy
  • Outcome: build a resilient care workforce to support well-being, gender equity, and economic participation
• defence industrial strategy
  • Outcome: strengthen domestic defence industrial base and workforce readiness
• workforce transition
  • Outcome: support workers moving from declining sectors to growth industries through reskilling and redeployment
• national-Building Projects (major projects)
  • Outcome: ensure a stable and skilled workforce to proceed on schedule with large, nationally significant projects across the construction, energy, mining, and transportation sectors

Program objectives

Proposed investments must focus on addressing at least one of the following three objectives to be considered for funding:

objective 1: to scale up or adopt proven, high-impact workforce initiatives in growing sectors of the economy

• Evidence-based initiatives that advance sectoral recruitment, skilling and upskilling solutions at the national level, or through regional pilot projects that could be scalable at a national level

objective 2: to build talent pipelines to advance federal missions, industrial strategies, and major projects

• Workforce initiatives that directly support workforce development to support federal missions and priorities (for example Major Projects, Housing Strategy, Defense Industrial Strategy, Canadian Critical Minerals Strategy) and accelerate workforce readiness

objective 3: to mobilize industry to co-invest in the development of new skills programs that respond to workforce needs

• New initiatives that focus on adoption of emerging technologies that demand new workforce capabilities, with an emphasis on transformative solutions that boost productivity and competitiveness at the national level, or through regional pilot projects that could be scaled up (for example Artificial Intelligence, digital twinning and other business improvement processes)

Program principles

The program is guided by the following principles:

• strategic investments: resolve a mismatch between the supply and demand of workers in the labour market. Projects must demonstrate time-limited intervention that lead to lasting, sustainable solutions. Proposals should include evidence-based labour market analysis demonstrating the nature, scale, and geographic scope of workforce shortages or mismatches, including anticipated future demand where relevant
• labour market linkages: projects should demonstrate active employer participation in project design, training delivery, work-integrated learning, and recruitment pathways. Direct and measurable connection to employment outcomes, including creating talent pipelines that enable businesses to access the skills they need and for participants to access job opportunities in targeted sectors, and on-the-job training, work-integrated learning, and/or employer onboarding components that lead to sustainable employment outcomes. Concrete hiring commitments or employment pathways must be identified
• efficiency and scale: projects should maximize the reuse and scalability of workforce solutions by leveraging shared curriculum, digital tools, partnership models, and coordinated delivery approaches across sectors or regions
• sustainability: outcomes must endure beyond project completion. Projects must provide evidence of lasting sectoral capacity-building (for example, established training partnerships, employer networks, curriculum frameworks) and demonstrate that the project creates systemic change rather than temporary solutions. Sustainability expectations will be proportionate to project type and intended outcomes. Projects involving ongoing delivery or recurring services should demonstrate a credible pathway toward operational or financial sustainability beyond federal funding, while time-limited initiatives may demonstrate sustainability through institutional adoption, sector integration, or transition planning
• partnerships: collaboration with multiple employers/small and medium sized enterprises, as well as recognized post-secondary institutions, training providers, or industry training organizations, with letters of support from participating partners required
  • note: educational institutions are expected to participate as collaborative delivery partners within broader industry-led initiatives, rather than as standalone project proponents focused solely on institutional program delivery. Project funds must be allocated toward participant outcomes
• co-investment and multi-source funding: a minimum cost-sharing threshold of 25% of total amount of requested ESDC funding must come from private sector
  • co-investment: ESDC funding cannot exceed 75% of the total project value
    • note: upon exception only, ESDC may reimburse a larger percentage of project costs. Applicants need to clearly justify why their proposal would be subject to this exception. Exemptions will be given on a case-by-case basis, based on project scale and impact, as determined by program officials
  • multi-source funding: project funds cannot have more than 75% of funds coming from publicly sourced funds (municipalities, provinces, territories, federal government, and post-secondary institutions)
    • funding profile: the annual cost-sharing ratio may vary, with federal support potentially decreasing over time (for example, covering up to 100% in year 1, up to 75% in year 2, and up to 50% in year 3. However, total federal funding across the project cannot exceed 75% overall. This approach aligns with the principle of sustainability - focusing on one-time solution development and higher initial costs - rather than funding ongoing operational expenses
• accelerated deployment: ability to mobilize quickly (within 3 months of funding approval) and deliver measurable results and targets within 6 months. Projects must provide a detailed implementation plan with clear milestones and timelines

Program outcomes

The program is designed to deliver the following outcomes:

• strategic investments are made in a timely manner to address identified gaps in the labour market and ensure businesses can hire talent they need
• Canadian workers have enhanced skills and employability to meet current and emerging needs in key sectors of the economy
• employers have increased access to skilled workers to meet current and emerging workforce needs in key sectors of the economy
• industry investment in workforce development is increased; and/or
• businesses have access to the talent and solutions they need to address workforce challenges and grow their sectors

Expected project results

• Your concept must demonstrate:
  • how the sector(s) will benefit from your project
  • the expected results of your project (outcomes and outputs)
  • a robust dissemination plan of your project outputs
  • a post-project sustainability plan
  • how you plan to gather, measure, and report on results achieved by your project
• funding recipients will be expected to report on the following indicators as required through quarterly and annual activity and progress reports, and their final report:
  • number of workforce solutions (projects) developed to address identified labour market gaps
  • number and percentage of participants who complete an employment support intervention or training initiative
  • number and percentage of individuals employed following participation in an employment support intervention or training initiative
  • number of employer placement opportunities created
  • number of employer hiring commitments secured
  • number of participants hired by participating employers
  • number and percentage of employers that report being better able to:
    • recruit skilled workers to meet demand in targeted sectors
    • onboard workers more effectively
    • retain workers more effectively
    • make more informed workforce planning decisions
    • align skills of workers with labour requirements
    • increase productivity within their sector
  • number and percentage of employers who are satisfied with the workforce readiness of individuals in targeted sectors
  • decreased vacancy rates in targeted sectors

Funding priorities

• Priority may be given to projects that:
  • directly support federal missions, support national projects, and demonstrate alignment with federal strategies
  • align with the recommended strategies from one of the Workforce Alliances
  • demonstrate sector-wide coordination through workforce-employer collaborative approaches
  • promote shared, scalable, and transferable workforce solutions including:
    • common curriculum development
    • shared digital learning platforms
    • transferable credentials, and
    • coordinated delivery models across multiple institutions or regions
  • include diversity and inclusion principles in the project design and implementation to support the representation of equity-seeking groups (ESGs) in the industry
  • demonstrate higher cost-sharing ratios from private investments

Glossary

Here is a list of key terms used within this application guide.

Continuous Intake

A continuous intake is a call for proposals with no closing date where applications are accepted on an ongoing basis.

Convening Organization

A convening organization is an entity that brings together employers and partners to coordinate workforce solutions and align efforts across sectors or regions.

Cost-sharing ratios

Cost sharing ratios refer to the proportionate allocation of total eligible project costs between the Sectoral Workforce Innovation Fund and one or more recipient or partner organizations.

Equity-seeking groups (ESGs)

Equity-seeking groups include but are not limited to, women, persons with disabilities, racialized Canadians, Indigenous peoples and youth, and newcomers.

Impactful

Impactful refers to the extent to which a funded initiative produces meaningful, measurable, and sustained positive changes aligned with the objectives of the Sectoral Workforce Innovation Fund. This includes strengthening workforce outcomes, addressing sectoral needs, and improving labour market efficiency.

Outputs

Direct products or services that you will produce to get the outcomes you want. They answer the question, "What will the project produce?".

Outcomes

The short-term and medium-term changes that you expect the project to deliver. You can link more than one outcome to an objective. Outcomes answer the questions, "How do we know the project is a success?" and "How do the activities address the workforce needs of Canadian workers and employers?".

Scale up

Scale up refers to the systematic expansion of a tested innovation to achieve broader adoption, increased impact, and sustained outcomes across sectors or regions.

Statement of Interest

A Statement of Interest (SOI) is a document used to present your project idea. It includes basic information about your proposed project so it can be reviewed before you are invited to submit a full application.

Sustainability plan

Sustainability plan refers to a comprehensive strategy outlining how a project's activities, outputs, and outcomes, will be maintained and continued beyond the period of SWIF funding, including the resources, partnerships, and actions required to support long - term viability.

Transferability

Transferability refers to the capacity of workforce systems, data, and tools to function together across organizations, regions, and/or sectors enabling seamless information exchange, coordination, and reuse to support labour market outcomes.

Wrap-around supports

A set of supports or services provided to an individual, particularly, though not exclusively from an equity-seeking group, that are necessary to remove barriers to their participation in the project. The types of supports or services provided depends on the individual's level of need, as determined by the project proponent. Wrap-around supports may include, but are not limited to, accommodation, child care, and transportation costs.

Workforce Alliances

Workforce Alliances are a new initiative within Employment and Social Development Canada that brings together employers, unions, educational institutions and industry groups to work on ways to help businesses and workers succeed in the changing labour market and mobilize private investments in skills development on key Government missions.