Yesterday, the federal government presented its 2025 budget, focusing on stability and fiscal discipline. In a context of economic slowdown and persistently high living costs, the Minister of Finance has opted for caution: reducing debt, slowing the growth of public spending, and investing in priority sectors such as health, housing, and infrastructure. While it includes several positive measures, the budget also raises concerns about certain issues that directly affect workers.
Immigration and the Labour Force
The government plans to reduce the number of temporary foreign workers from more than 670,000 in 2025 to approximately 370,000 by 2027. This decision aims to ease pressure on housing and public services, but it could worsen labour shortages in essential sectors such as maintenance, food service, and hospitality, where many SEU800 members work. A balance must be found between responsible management of migration flows and the reality of labour needs on the ground.
Recognition of Skills
A $97 million fund has been set aside to accelerate the recognition of foreign diplomas and credentials, in collaboration with provinces and territories. This action fund will prioritize areas facing labour shortages, particularly health care and construction. This is an encouraging measure that could facilitate the professional integration of many immigrants. However, its impact will remain limited if it is not extended to other occupations where recognition of prior learning continues to be a barrier to employment.
Income Protection and Support for Workers
Despite repeated calls from the labour movement, no major reform of employment insurance has been announced. In a time of economic uncertainty, this lack of more structural measures leaves many workers vulnerable in the event of job loss.
Currently, only 40% of unemployed individuals qualify for employment insurance.
However, earlier this fall, the government announced it would maintain two temporary employment insurance measures that were set to expire in October, extending them until April 11, 2026:
- Elimination of the waiting period: eligible individuals will receive benefits starting in the first week, with no waiting time.
- Access to benefits despite severance pay: workers will be able to receive employment insurance benefits without first exhausting their severance pay.
These measures provide tangible support to hundreds of thousands of workers affected by the current economic climate. However, they remain temporary, and several groups are calling for them to be made permanent as part of a comprehensive reform of the system.
In addition, the 2025 budget includes new investments in continuing education and the transition toward sustainable jobs — a step in the right direction to better equip the workforce for the changing labour market. For example, significant funds are being allocated to retraining workers affected by trade disruptions, creating a national online training platform, and supporting workforce alliances that bring together employers, unions, and industry groups. These initiatives aim to help businesses and employees adapt to shifting sectors and to better coordinate public and private investment in skills development.
Conclusion
This budget reflects a desire for stability and prudent management of public finances. It includes promising measures for certain sectors but leaves aside key social issues. At SEU800, we will continue to closely monitor the impacts of these decisions and to advocate for our members on issues related to employment, skills recognition, and income security.
Translated into English by SEU800 from the original French-language press release.