Colleges key to building Canada’s workforce
As Ottawa readies its budget and Queen’s Park releases its fall economic statement, both governments can strengthen workforce development by investing in Ontario’s public colleges.
A September 2025 Abacus Data poll for Colleges Ontario found 74 per cent of Ontarians expect widespread job losses in the next five years, and nearly two-thirds believe they’ll need retraining to stay competitive. Ontarians see the greatest shortages coming in health care (51 per cent) and skilled trades (49 per cent). By next year, Ontario will face a shortfall of 33,000 nurses and personal support workers, and by 2034 it will need 154,000 new construction workers.
Colleges are central to addressing these gaps. After the 2008 financial crisis, Ontario’s colleges helped 45,000 people return to work through the Better Jobs Ontario program. They are ready to do it again.
In its 2025 federal pre-budget submission, Colleges Ontario urged Ottawa to let colleges access workforce development funds directly under Labour Market Development Agreements. With $450 million in new federal training investments, this flexibility would move funding faster to colleges, communities and workers.
As the province’s Plan to Protect Ontario targets growth in key industries, its success depends on the skilled workforce trained at public colleges. More than half of workers in advanced manufacturing, energy, mining, health care and skilled trades come from colleges, which train over 400,000 learners each year.
Despite significant financial pressure facing colleges, Ontario’s review of its funding formula and its commitment to a sustainable model are positive steps. Colleges have already cut $1.8 billion, suspended more than 600 programs and eliminated over 8,000 staff positions. Shared services, open education resources and a centralized library system have saved more than $90 million since 2020.
As Ontario updates its fiscal outlook, colleges stand ready to partner with government and industry to close the skills gap. With stable funding, they can expand training and applied research to meet labour market needs.
Colleges Ontario looks forward to this week’s budget and economic statement and continued collaboration with federal and provincial partners to build Canada’s workforce.