Canada’s Decarbonization Means More Jobs for Canadians

Canada’s net-zero transition is happening, and it is creating jobs. While the country’s unemployment rate saw a seven-year high in August, sectors playing a key role in the transition, like construction, agriculture, clean energy and manufacturing, continue to face long-term job shortages. We need a green-skilled workforce to fill these jobs, help the country benefit from decarbonization and stay competitive.

The Urgent Need for Green Skills Development

LinkedIn’s latest Global Green Skills Report says that the world’s workforce is not on track to meet the ambitious climate targets of governments and businesses. According to the report, if we fail to focus on strategic, extensive upskilling, roughly half of jobs in the 2050 global green economy will lack qualified candidates. The demand is there, but Canada and the rest of the world must prioritize helping workers gain the green skills needed to fill it. 

Our report, As the Weather Changes, found that Canada’s green transition could create up to 300,000 jobs by 2030 and see investments between $29 and $49 billion. The federal government must help build a workforce with the right green skills, or Canada risks missing these economic and social benefits of decarbonization. In the most optimistic scenarios, where the global economy is healthy and international trade is fair, Canada can reach its 2030 climate goals and achieve between 2.5% and 3% year-over-year GDP growth.

To ensure green sectors thrive, our research proposes a “skills ecosystem” approach where learners, employers, policymakers and training providers work together. As Canada moves towards net zero, demand for green skills will grow. But this does not mean workers will have to drastically change their skills to meet this demand. Workers can adapt their current skills and learn new ones in as little as a few weeks, according to our studies.

Consider that the technicians who can fix your gas boiler could also install heat pumps. To meet the labour demand, we need to ensure Canadian workers are equipped with the skills necessary for clean growth industries while also addressing labour shortages and diversifying the workforce.

Addressing Current Labour Shortages

The federal government has allocated $99 million over four years to fund training for low-carbon energy, green building retrofits and electric vehicle infrastructure. While this is a welcome step, more must be done. To build a skilled workforce, three key factors must be addressed by governments, industry and educational institutions. 

First, workers need to be upskilled and reskilled to adapt to new technologies and move between sectors. Skills assessments tied to specific regions and sectors are essential. For instance, workers in Northern British Columbia’s mass timber ecosystem will need specialized training to handle these new products. In Manitoba and Saskatchewan, agricultural training programs must be more flexible, accommodating the farming calendar with smaller, more accessible course components. Training programs, in general, should be more flexible, decentralized and modular. This way learners can go at their own pace, avoid moving, and they can study while working or caring for family, for example.

Workforce diversification is also key. Sectors competing for skilled labour need to attract a broader demographic by making training and jobs more inclusive for underrepresented groups. For example, when General Motors restarted their Oshawa plant in 2022, they focused on hiring more women, particularly in manufacturing roles traditionally dominated by men, and offered support like specialized training and childcare.

Finally, governments must ensure communities welcoming clean-sector workers have the right infrastructure, including access to healthcare, childcare, eldercare, transportation and affordable housing. While urban centers in Ontario have better social support, they face a housing crisis, pushing young workers to more affordable areas. In comparison, rural communities in Saskatchewan and Manitoba face gaps in infrastructure, particularly in rental housing, childcare and public transportation.

The Path Forward for Canada’s Green Economy

The transition to a clean economy is underway, and workers and industries should be supported today so Canadians can build a better tomorrow. The federal government must continue taking immediate steps to create a workforce with the right skills in growing green sectors.