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Ottawa Previews Budget Labour Package: Trades Training, PSW Tax Credit, Non-Compete Curbs

The plan targets labour shortages with skills investment plus mobility reforms to support housing and major projects.

Overview

  • Ministers outlined an expansion of the Union Training and Innovation Program worth $75 million over three years starting in 2026–27 to bolster Red Seal apprenticeship training.
  • The budget will propose a five-year refundable Personal Support Workers Tax Credit equal to 5% of earnings up to $1,100 annually, available only where no federal–provincial PSW wage deal exists.
  • British Columbia, Newfoundland and Labrador, and the Northwest Territories already have bilateral PSW wage agreements, so workers there would not qualify for the new credit.
  • Ottawa plans Canada Labour Code changes to restrict non-compete agreements in federally regulated workplaces, with consultations on the legislative approach slated for early 2026.
  • The budget will create a $97 million, five-year Foreign Credential Recognition Action Fund to work with provinces on faster, fairer approvals for qualified professionals, including in health care and construction.