Canada Invests $3.2 B in Newcomer Support to Ease Labour Shortages

Ottawa (July 23, 2025) – The federal government has announced an investment of over $3.2 billion over the next three years to expand services that help new immigrants settle and find jobs, in a bid to tackle labour shortages across the country. The funding, unveiled by Immigration Minister Lena Metlege Diab, will be distributed to more than 520 local organizations outside Quebec to improve newcomers’ integration into communities and the workforce. Officials say the initiative is designed to fill critical job vacancies by connecting immigrants with opportunities and supporting their success in Canada.

Tailored Settlement Services for Regional Needs

Rather than a one-size-fits-all model, the new funding will flow to community-based service providers, allowing each region to offer programs suited to local needs. These organizations will deliver a range of settlement and employment services – from helping newcomers obtain licenses or certifications in regulated professions to providing job-specific and general language training in English and French. There is also dedicated support for French-speaking immigrants settling in Francophone communities outside Quebec, reinforcing Canada’s bilingual commitment while addressing regional workforce needs. By tailoring services in this way, the government aims to make newcomer support more effective and accessible across different provinces and industries.

Filling Jobs and Strengthening Communities

A core goal of the investment is to help newcomers apply their skills quickly in sectors facing worker shortages, such as health care and skilled trades. By improving economic integration, immigrants will be able to fill critical labour gaps and boost productivity in high-demand industries. For example, a newcomer with overseas credentials in nursing or engineering could receive assistance to get Canadian certification and language training, enabling them to enter the job market faster. This not only benefits employers struggling to find qualified talent, but also contributes to stronger communities as newcomers secure meaningful work and settle into local life. Settlement services are already a vital resource for immigrants – nearly half of recent permanent residents outside Quebec have used at least one federally funded support to help them build their new lives. The expanded programs are expected to make the integration process even smoother, helping new Canadians thrive and, in turn, helping towns and cities across the country grow.

Part of Canada’s Long-Term Economic Strategy

This major funding effort aligns with Canada’s broader immigration and workforce strategy. Federal officials have emphasized that with an aging population and persistent skill shortages, immigration is essential for sustaining economic growth and innovation. The $3.2 billion initiative complements other measures – such as targeted immigration streams for in-demand occupations and a stabilized immigration levels plan – all aimed at bringing in talent while ensuring newcomers can succeed once they arrive. By focusing on tangible outcomes like employment and credential recognition, the government aims to build a stronger workforce and keep Canada’s economy competitive. In fact, the integration investment is seen as a step toward “one Canadian economy” and is part of a vision to make Canada’s economy one of the strongest in the G7.

The optimistic message behind the announcement is clear: Canada is not only opening its doors to newcomers, but also investing in their success. By equipping new immigrants with the skills, support, and opportunities they need, the country is banking on a future where newcomers thrive – and in doing so, help drive Canada’s communities and economy forward together.

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