Canada Introduces New Incentives to Boost Skilled Trades Apprenticeship Completion
Despite record enrolment in 2024, low completion rates among Canadian skilled trades apprentices have prompted the federal government to announce new financial incentives starting in 2027. The measures aim to address a projected shortage of 1.4 million trades workers by 2033.
Canada is facing a projected need for 1.4 million new trades workers by 2033 to replace retiring workers and meet infrastructure project demand. While apprenticeship enrolments reached a record high of more than 101,500 in 2024, completions remained below prepandemic levels, with almost 47,000 certifications issued, representing a 19.9 per cent completion rate.
Financial strain during classroom training periods is a significant barrier. Apprenticeships typically last two to five years and include eight to 12 weeks of classroom training per year. During these stints, apprentices receive employment insurance (EI), which is about half of their salary up to a maximum of just more than $600 a week. First-year apprentices start at roughly 50 per cent of a certified journeyperson’s rate. In 2022, newly certified journeypersons made a median income of just more than $56,500 one year after completing their apprenticeship.
The disparity between on-the-job wages and EI benefits discourages apprentices from finishing their programs. In 2024, the percentage of apprentices who had not yet become certified at the expected completion of their program remained elevated at 49.2 per cent. Demographic factors add further pressure: the average age of apprentices registering for a Red Seal trade was 25 in 2023, while in Ontario the average age of a level-one apprentice is 29. High living costs combined with lower entry-level wages create barriers for older apprentices with existing financial obligations.
Additional challenges persist across the sector. Employers face difficulties releasing apprentices for school or providing sufficient training, hindering advancement. Stigma around skilled trades jobs contributes to recruitment challenges, and women and gender-diverse people face additional obstacles such as alienation and harassment on job sites. For context on early-career expenses, apprentice Justin Santos earned a $16.50 hourly wage in his first job and spent $4,000 on tools.
To make finishing apprenticeship programs more financially feasible, the federal government is introducing new incentives. Starting in spring 2027, apprentices will receive a top-up of $400 a week for in-class learning. The government is also bringing back a $5,000 apprenticeship completion bonus for Red Seal trades—a designation covering 54 professions—that was scrapped at the beginning of 2025. Furthermore, small and medium employers will receive up to $10,000 for every first-year apprentice in a Red Seal trade they hire.
These measures are part of broader efforts that include an $880-million cost for paid placements funding and a $6-billion boost for the labour force. Organizations involved in addressing these issues include Statistics Canada, the Canadian Apprenticeship Forum, Canada’s Building Trades Unions, the Residential Construction Council of Ontario, the British Columbia Institute of Technology, and ConnectHer Hub, with stakeholders such as Anna Lary, Emily Arrowsmith, Richard Lyall, and Sean Strickland contributing to the ongoing dialogue in locations including Ottawa, Kelowna, B.C., and across British Columbia and Ontario.