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GOVERNMENT FUNDING AND NEWS

Prime Minister Mark Carney announced a series of new, strategic measures for workers and businesses in sectors most impacted by U.S. tariffs and trade disruptions. These initiatives will help workers acquire new skills and businesses retool their production and diversify their products, while spurring more domestic demand for Canadian businesses. 

New initiatives include: 

• Strengthening the workforce: introducing a new reskilling package for up to 50,000 workers, make Employment Insurance more flexible and with extended benefits, and launch a new digital jobs and training platform with private-sector partners to connect Canadians more quickly to careers.
• Strategic Response Fund: investing $5 billion through a new fund with flexible terms to help firms in all sectors impacted by tariffs adapt, diversify, and grow, with support provided to industries by the new Workforce Alliances to align training and workforce needs.
•  Buy Canadian Policy: introducing a new policy to ensure the federal government buys from Canadian suppliers, requiring local content when domestic suppliers are unavailable, extending this approach to all federal funding streams and Crown corporations, and providing a roadmap for provinces and municipalities to apply similar standards to their own procurement.
• Immediate liquidity relief: expanding Business Development Bank of Canada loans for small and medium-sized enterprises (SMEs) to $5 million, providing more flexible financing through the Large Enterprise Tariff Loan Facility, and giving the auto sector flexibility by waiving 2026 model year vehicles from Electric Vehicle Availability Standard requirements and by launching an immediate 60-day review to reduce costs.
• Assisting Canada’s canola and agriculture producers: The government will introduce a new biofuel production incentive, with over $370 million for domestic producers to address immediate competitiveness challenges, amend Clean Fuel Regulations to support the domestic biofuels industry, temporarily increase the Advance Payments Program interest-free limit to $500,000 for canola advances, and provide increased funding for the AgriMarketing Program to support diversification into new markets of agricultural products.
• Regional Tariff Response Initiative: The government will expand support to SMEs to $1 billion over three years, with flexible terms, and increase new non-repayable contributions to eligible businesses impacted by tariffs across all affected sectors, including agricultural and seafood.

The full list of measures is available here.

The government has launched the Major Projects Office to fast-track nation-building projects, and will soon launch Canada’s Defence Industrial Strategy, Canada’s new Trade Diversification Strategy, and Build Canada Homes, a government entity that will help double the pace of construction over the next decade. Prime Minister of Canada

The Government of Alberta is introducing the Alberta Jobs Strategy as a blueprint to address labour challenges and foster job growth. This includes highlighting several initiatives supported by the province that increase skills, training and education opportunities to prepare people in Alberta for the workforce. The strategy is built with four key pillars: career awareness, career readiness, removing barriers and employer focus.

Nearly 50 government programs and initiatives come together to form the Alberta Jobs Strategy, including:

• Advanced Education’s Foundational Learning Assistance and Community Adult Learning programs, helping people in Alberta improve their literacy, numeracy and English language skills;
• Indigenous Relations’ Employment Partnerships Program, which connects Indigenous people to employment projects; and
• Primary and Preventative Health Services’ Alberta Health Workforce Strategy 2024, which addresses the pressures affecting the maintenance and development of Alberta’s health workforce. Alberta

The governments of Canada and Ontario are investing up to $4.77 million in 48 research and innovation projects and supporting 20 companies through the Ontario Agri-Food Research Initiative (OAFRI). This funding through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) will protect Ontario by helping farmers and agribusinesses grow their businesses by adopting new technologies and advancing commercialization to remain competitive in the face of economic uncertainty from U.S. tariffs. OAFRI provides funding for 5 research, innovation and commercialization streams. Examples of research projects funded include:

• Piloting new growing strategies to boost grape quality, yields and food safety for Ontario-grown table grapes.
• Using natural compounds from probiotics to reduce harmful bacteria like Salmonella developing in raw poultry.
• Enhancing a robotic platform to apply key crop nutrients more precisely in fields.
• Developing a non-invasive tool using imaging and Artificial Intelligence to detect mastitis early in dairy cattle, improving milk quality and animal welfare.

In addition, 20 new companies have joined the Grow Ontario Accelerator Hub, helping Ontario-based agri-food and agri-tech companies grow and bring their innovations to market through business and investment strategies. Agriculture and Agri-Food Canada.

Global Affairs Canada announced amendments to the Special Economic Measures (Russia) Regulations to reduce oil export revenue flowing into Russia. These amendments follow a commitment made by Canada on August 8, 2025, to lower the price cap for Russian oil, after the European Union and the United Kingdom announced similar measures. In alignment with the European Union and the United Kingdom’s recently announced measures, Canada has lowered its price cap for Russian crude oil from US$60 to US$47.60 per barrel. The new oil price cap provides a 45-day non-application period for goods loaded onto a vessel and unloaded at their destination within 45 days after the amendments come into force. Canada first implemented oil price cap measures against Russia in December 2022. Global Affairs Canada

The Government of Canada concluded its nationwide consultations for Budget 2025 on Sept. 3. Discussions touched on internal trade and labour mobility, addressing the impact of U.S. tariffs, advancing digital transformation including through artificial intelligence, manufacturing and innovation, immigration, and affordable housing. The public’s opinion was collected through a survey launched in July, with nearly 84,075 Canadians sharing their views. Responses focused on building one strong economy, reducing everyday costs, and bolstering Canada’s defence and security. The insights gathered through these consultations and online submissions will play a vital role in shaping Budget 2025 and ensuring it reflects the voices and priorities of Canadians. Department of Finance Canada

The Federal Economic Development Agency for Southern Ontario (FedDev Ontario) visited the Black Creek Community Health Centre (BCCHC) to announce an investment of $2.4 million to expand and enhance the Black Entrepreneurship Alliance (BEA) initiative. The Black Entrepreneurship Alliance (BEA) is a co-designed initiative by Black Creek Community Health Centre, York University’s YSpace, TD Community Engagement Centre, and Schulich ExecEd. Launched in 2021 with support from FedDev Ontario, BEA is helping Black entrepreneurs and professionals to build successful companies through curated programs, partnerships and innovative tools. Through this new investment, BEA will offer a range of new programs, including an 11-week Business Process Improvement training program, a 12-week program aimed at helping businesses become export-ready, and an annual forum in partnership with York University, the City of Toronto, the City of Mississauga, York Region and the City of Brampton through Entrepreneur Centre and Export Development Canada for Black-led businesses to share new ideas. This project is expected to support over 350 businesses, while also providing mentorship or training to more than 350 professionals across the Greater Toronto Area. FedDev Ontario

The Department of National Defence (DND) announced the integration of the Canadian Coast Guard (CCG) into the Defence Team through the signing of an Order in Council. This transition also includes key personnel from Fisheries and Oceans Canada to better support Canada’s maritime priorities. The CCG will remain a civilian Special Operating Agency, with no change to its status. It will continue to operate in search and rescue, icebreaking, environmental response, safe navigation, and ocean science. The Government of Canada proposed expanding the CCG’s services to include maritime security activities under Bill C-2, which is currently before Parliament. As of July 2025, the CCG’s fleet of 126 vessels includes icebreakers, search and rescue lifeboats, patrol ships, science vessels, hovercraft and more. National Defence

Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, announced $26.1 million in funding for six national projects under Employment and Social Development Canada’s (ESDC’s) Youth Employment and Skills Strategy (YESS) Program. Building on previous investments in the YESS Program, which are providing employment supports to over 23,600 young people, these new projects will help improve employment outcomes for a larger number of youth. Funded through the Strategic Collaboration stream of ESDC’s YESS Program, these projects bring together youth, service providers, and employers to create approaches that can be scaled across sectors. That includes guidelines to help employers better integrate youth with disabilities and tools that improve data collection for more evidence-based decision-making. For the 2025–26 academic year, the Government has extended the temporary increases to student grants and loans through the Canada Student Financial Assistance (CSFA) Program. This includes maintaining the 40% increase to grants for full-time students, part-time students, students with disabilities and students with dependants, and the Canada Student Loan limit increase from $210 to $300 per week of study. Employment and Social Development Canada

RESEARCH, TECHNOLOGY AND INNOVATION

Ontario Premier Doug Ford dumped a bottle of Crown Royal whisky on the ground around his podium during an announcement in Kitchener in response to parent company Diageo's announcement that it will close its Amherstburg, Ont., bottling plant. "This is what I think about Crown Royal. That's what they can do," Ford said, as the amber liquid chugged out of the bottle. Diageo, which owns Crown Royal and also has Canadian facilities in the GTA, Gimli, Man., and Valleyfield, Que., said on Thursday it will close the Ontario facility in February 2026. The move prompted a boycott of the brand, with many suggesting the province should remove Crown Royal from LCBO shelves. Meanwhile, workers at the plant, represented by Unifor Local 200, met with union executives to air their concerns and questions. A spokesperson on behalf of the company did not respond directly to Ford's remarks but said, "Diageo's focus at this time remains on their commitment to Canada." According to Unifor, a total of 207 unionized workers stand to be impacted by the closure, including both full- and part-time staff. CBC

Montreal-based GHGSat, which uses a fleet of satellites to monitor greenhouse gas emissions from space, signed a partnership with ExxonMobil Corp. to scrutinize sources of methane for the U.S. giant’s onshore operations in Canada, the United States, Indonesia and Papua New Guinea. While financial terms were not shared, a press release about the partnership called it a “significant investment” by ExxonMobil, which has taken other measures already to reduce emissions intensity by more than 60% since 2016. This number should increase to between 70% and 80% by 2030, according to the companies’ officials. ExxonMobil will bring GHGSat’s platform into its Center for Operations and Methane Emissions Tracking, which “continuously monitors and analyzes methane emissions data from a network of measurement technologies,” the release stated. GHGSat has launched 14 satellites since 2016 and says it can find methane leaks as small as 100 kg/hr, which is a scale allowing for the identification of individual equipment at fault. The company says it has mitigated more than 20 megatons CO2e of methane since it began operations. SpaceQ

In a landmark settlement, AI firm Anthropic has agreed to pay US$1.5 billion to a group of authors and publishers after a judge ruled it had illegally downloaded and stored millions of copyrighted books. The settlement is the largest payout in the history of U.S. copyright cases. Anthropic will pay US$3,000 per work to 500,000 authors. The agreement is a turning point in a continuing battle between AI companies and copyright holders that spans more than 40 lawsuits across the country. Experts say the agreement could pave the way for more tech companies to pay rights holders through court decisions and settlements or through licensing fees. “This is massive,” said Chad Hummel, a trial lawyer with the law firm McKool Smith, who is not involved in the case. “This will cause generative AI companies to sit up and take notice.” The settlement came after a ruling in June by Judge William Alsup of the U.S. District Court for the Northern District of California. In a summary judgment, the judge sided with Anthropic, maker of the online chatbot Claude. The ruling that when Anthropic acquired copyrighted books legally, the law allowed the company to train AI technologies using the books because this transformed them into something new. But the judge also found that Anthropic had illegally acquired millions of books through online libraries like Library Genesis and Pirate Library Mirror, which many tech companies have used to supplement the huge amounts of digital text needed to train AI technologies. When Anthropic downloaded these libraries, the judge ruled, its executives knew they contained pirated books. As part of the settlement, Anthropic said it did not use any pirated works to build AI technologies that were publicly released. The settlement also gives others the right to still sue Anthropic if they believe that the company’s technologies are reproducing their works without proper approval. Anthropic also agreed to delete the pirated works it downloaded and stored. The New York Times

The University Health Network (UHN) announced the successful completion of Canada’s first Neuralink implant surgeries, conducted on Aug. 27 and Sept. 3, 2025, at UHN's Toronto Western Hospital. These procedures mark the first Neuralink surgeries performed outside the United States, representing a significant milestone in global neurosurgical innovation. The surgeries are part of the CAN-PRIME Study (Canadian Precise Robotically Implanted Brain-Computer Interface), a clinical trial evaluating the safety and functionality of Neuralink’s implant and surgical robot. The study aims to enable individuals with quadriplegia to control external devices using their thoughts. Led by Dr. Andres Lozano, the Alan and Susan Hudson Cornerstone Chair in Neurosurgery at UHN, the neurosurgery team implanted the wireless brain-computer interface (BCI) device in Canadian patients living with cervical spinal cord injury. “We are incredibly proud to be at the forefront of this revolutionary advancement in neurosurgery,” said Dr. Thomas Forbes, Surgeon-in-Chief, UHN. “This achievement reflects the dedication and expertise of our world-leading surgical and research teams, and our commitment to delivering the most innovative and effective treatments for patients.” The patients will participate in follow-up appointments and research sessions as they learn to use the BCI device. UHN

Dozens of experts, academics and organizations have released an open letter urging Prime Minister Mark Carney to swiftly "defend Canada's digital sovereignty" and protect the country from the whims of the Trump administration. The letter says Carney has argued Canada must become an energy superpower and get big projects built, but has not spent enough time talking about the need to secure Canada's digital economy. "Empires once built railways. Now they build algorithms," said Barry Appleton, a Toronto-based international trade lawyer and one of the letter's signatories. "If Canada cannot govern the code that governs Canadians, then we are no longer a sovereign democracy. We will be tenants in Trump's regime." The signatories ask Carney to stake out protections for social media, cloud systems, AI engines, digital transactions and other data that can be "weaponized by a Trump regime seeking unchallenged technological dominance." The letter said action must be taken because 90 per cent of Canada's internet traffic is currently routed through the U.S. or through U.S.-based tech giants. Tech giants making over $20 billion tax-free annually from Canadian digital creators. Canada also needs to act now to secure its digital sovereignty, the letter says, because U.S. companies like Amazon, Microsoft and Google control most of Canada's cloud infrastructure, and CUSMA trade rules prevent the federal government from requiring those companies to store Canadians' data north of the border. Among the signatories of the letter are: Canadian writers Margaret Atwood and John Ralston Saul; filmmaker Atom Egoyan; former Gov. Gen. Adrienne Clarkson and organizations such as the Canadian Civil Liberties Association and the Canadian Medical Association. The letter also calls on the federal government to reconsider its decision to kill the digital services tax (DST), which the Liberal government cancelled in June amid threats from the Trump administration. CBC

Alphabet’s Google won’t have to sell its Chrome browser, a federal judge ruled in a landmark antitrust case against the internet and search giant. In a statement, Google praised the decision for recognizing how AI has changed the search industry, but said the company continues to disagree with an earlier ruling that it monopolized online search. The search giant also said it was worried about the data-sharing requirements the judge imposed. “We have concerns about how these requirements will impact our users and their privacy, and we’re reviewing the decision closely,” said Lee-Anne Mulholland, vice president of regulatory affairs. “The court did recognize that divesting Chrome and Android would have gone beyond the case’s focus on search distribution, and would have harmed consumers and our partners.” While it’s barred from exclusivity deals, Google will still be allowed to pay its partners – a key win for Apple Inc., which has received roughly $20 billion a year for making Google search the default on iPhones. Bloomberg

According to a recent Statistics Canada (StatCan) Labour Force Survey, employment declined by 66,000 (-0.3%) in August, largely the result of a decline in part-time work, with the employment rate falling 0.2 percentage points to 60.5%. The unemployment rate rose 0.2 percentage points to 7.1%. Employment fell for core-aged (25 to 54 years old) men (-58,000; -0.8%) and core-aged women (-35,000; -0.5%) in August. Employment decreased across several industries in August, led by professional, scientific and technical services (-26,000; -1.3%), transportation and warehousing (-23,000; -2.1%), and manufacturing (-19,000; -1.0%). There was an increase in construction employment (+17,000; +1.1%). Several provinces recorded employment declines in August; with the largest declines in Ontario (-26,000, -0.3%), British Columbia (-16,000; -0.5%) and Alberta (-14,000; -0.6%). Total hours worked were little changed in August (+0.1%) and were up 0.9% compared with 12 months earlier. Average hourly wages among employees increased 3.2% (+$1.12 to $36.31) on a year-over-year basis in August, following growth of 3.3% in July. StatCan

Montreal-based Congruence, a computationally-driven biotechnology company building a unique pipeline of pharmacological correctors for diseases of protein misfolding, including MC4R-deficient (MC4R-d) genetic obesity, GBA1-driven Parkinson's disease and Alpha-1 antitrypsin (A1AT) deficiency, announced today the closing of a US$32 million financing round. The round included participation from all existing investors, including: Amplitude Ventures, FSTQ, Lumira, Investissement Quebec, BDC Capital's Thrive Venture Fund, OrbiMed, Driehaus, Silver Arc, and Alexandria. "This financing enables us to generate the first clinical proof of concept data with our corrector for MC4R-d driven obesity, a serious and debilitating condition without current treatment options," commented Dr. Clarissa Desjardins, CEO of Congruence. "We will also advance our programs in GBA-1 Parkinson's Disease and Alpha-1 Antitrypsin Deficiency toward Development Candidate nomination this year." Congruence plans to start a Phase 1 trial of CGX-926 in healthy volunteers, including a Phase 1b efficacy cohort in MC4R-d patients, in early 2026. Congruence will also advance its programs targeting Parkinson's Disease and A1AT-deficiency into late preclinical testing. The company also continues to advance its R&D collaborations, including a multi-target deal in oncology with Ono Pharmaceuticals and another collaboration on a difficult to drug metabolic target with an undisclosed pharmaceutical company. PR Newswire

Fermeuse Energy Limited announced plans to lead the development of a liquefaction hub at the Fermeuse Marine supply base. The announcement is in advance of the Gastech 2025 Conference and Exhibition in Milan, Italy. Fermeuse Energy Limited will deploy advanced LNG technology to help unlock the province’s 9.7 Tcf (trillion cubic feet) of offshore associated gas reserves in the Jeanne d’Arc Basin. This estimate is more than triple the initial estimate for Nova Scotia’s Sable Island. Enabled by Fermeuse Energy Limited’s new Fermeuse Marine Base, designed to support a growing offshore energy sector, this gas project will transform Newfoundland and Labrador into a major LNG exporter to Europe and beyond. The estimated $12-15 billion project promises significant economic benefits, including provincial royalties, and alignment with national and global need for Energy security. Energy Fermeuse

VC, PRIVATE INVESTMENT & ACQUISITIONS

The Government of Quebec has pulled funding for Northvolt Batteries North America, putting an end to its project to build a battery manufacturing plant for electric vehicles in Saint-Basile-le-Grand and McMasterville, both in Montérégie. “Today, we are ending Northvolt’s financing in Quebec. Since the company did not present a satisfactory plan with respect to Quebec interests, we are asserting our rights to recover the maximum amount of our investment. This adventure proved unsuccessful, and we are obviously disappointed. However, the outcome of the project does not mean the end of the battery industry here. On the contrary, our industry is very much alive with several companies active in this ecosystem. We remain convinced that it has a bright future, particularly in Bécancour, where nearly 3,000 people are working on the construction of the plants,” stated Minister Christine Fréchette. The Quebec government's investment in the project totalled $510 million, including a $240 million guaranteed loan to purchase the land and a $270 million subscription to the company's parent company in Sweden. The amount lost was $270 million, with a $240 million loan with guaranteed repayment. 

First Nations Financial Markets (FNFM), a majority First Nations-owned investment dealer, has officially launched. Six Alberta First Nations have taken a majority interest in Agentis Capital Markets, a dealer regulated by the Canadian Investment Regulatory Organization (CIRO) that has been operating since March 2023. Launching as FNFM, the firm is designed to advance Indigenous prosperity and provide differentiated opportunities in financial markets. FNFM is composed of six Alberta First Nations: Athabasca Chipewyan First Nation (Treaty 8), Cold Lake First Nation (Treaty 6), Fort McMurray 468 First Nation (Treaty 8), Heart Lake First Nation (Treaty 6), Sawridge First Nation (Treaty 8), and Whitefish Lake #128 First Nation (Treaty 6). As a CIRO-regulated firm, FNFM will assist institutional clients in raising capital through equity and debt markets, building on several years of experience in the mining sector. FNFM plans to expand into new sectors such as oil and gas, energy, infrastructure, technology, and diversified industries – while working with Corporate Canada as a key partner in advancing shared goals. Cision

Business Development Bank of Canada increased provisions for expected loan losses sharply in Q4, reflecting the potential hit from U.S. tariffs on the small and medium businesses financed by the federal Crown corporation. BDC ended its 2025 fiscal year on Mar. 31 with a $624.3-million provision for expected credit losses on loans, according to its annual report, published on its website. That’s up from $465.6-million three months earlier. Its level of impaired loans jumped by 86 percent year-over-year, reaching $514.4-million. Provisions for credit losses have jumped in each of the past three years. BDC subsequently booked a $160-million provision for credit losses in the first quarter of its 2025-26 fiscal year. The Globe and Mail

Tetra Digital Group has secured investment capital as the local financial technology innovator seeks to launch the first stablecoin backed by Canadian fiat. The group, which owns Calgary’s Tetra Trust and Tetra Unity, raised $10 million from a range of investors, including Toronto’s Wealthsimple, Purpose Unlimited, Montreal’s Shakepay, Edmonton’s ATB Financial, the National Bank, Ottawa’s Shopify, and Urbana, a publicly traded corporation with a focus on financial services and innovative technologies. With an aim to launch the stablecoin in 2026, Tetra’s move marks a first in Canada. The new Tetra stablecoin will leverage the Digital Group’s institutional-grade custody infrastructure to provide businesses and consumers with a stable, secure, and fully compliant digital currency backed 1-for-1 by Canadian dollar reserves. Fintech.ca

Vancouver-based medtech company Molecular You closed a US$5 million Series A funding round led by Voloridge Health, LLC, with participation from Dynamic Leap, among others. With a single blood sample, Molecular You’s predictive health platform measures over 250 biomarkers across all major systems, analyzing deep biological pathways to identify health risks at their root cause, providing a comprehensive snapshot of full-body health for over 25 health areas. With this data, Molecular You delivers highly personalized, actionable lifestyle recommendations, enabling proven, preventative lifestyle actions to be taken before disease symptoms appear. This differs from traditional diagnostics taken after a patient becomes symptomatic, which often require multiple blood draws for individual tests. “We plan to use this capital to grow our customer base across both consumer and clinical channels in North America, while also continuing to expand the platform’s analysis and predictive capabilities,” said Jim Kean, CEO of Molecular You, who has decades of expertise pioneering within the health testing space, including previously founding San Francisco-based WellnessFX and developing the technology underlying WebMD’s consumer platform. Molecular You

Vancouver-based AI startup Klue announced the acquisition of Ignition, an agentic AI platform built for product marketers. Ignition’s technology spans the full product marketing cycle – from customer research and competitive strategy to roadmapping, launches, messaging, and voice-of-customer insights. By acquiring Ignition, Klue will accelerate development of its AI-driven Compete and Win-Loss products, giving customers more powerful ways to capture buyer feedback, generate competitive insights, and equip sales teams to succeed. Klue

The Opportunity Calgary Investment Fund (OCIF), along with PrairiesCan, Alberta Innovates, CIBC, Avatar Innovations and Pathways Alliance, is investing over $10 million into the ETC Foundation, reinforcing Calgary’s position as the energy capital of Canada. This investment into the ETC Foundation includes a significant expansion of entrepreneurial resources and facilities, such as a 17,000 sq ft flexible workspace in downtown Calgary designed specifically to facilitate collaboration among low-emission energy startups, ecosystem partners, and investors. Expanded programming will feature structured educational courses, industry workshops and hands-on training, particularly benefiting graduate students, PhDs and professionals seeking to upskill. “Our energy sector in our community was, and continues to be, built by innovators and doers, driven by an entrepreneurial spirit that is second to none. This investment by OCIF will help fuel local startups to find technological solutions that will power a low-carbon economy and secure economic prosperity for generations to come," said Brad Parry, CEO, Opportunity Calgary Investment Fund and President and CEO, Calgary Economic Development. OCIF’s investment is expected to train up to 60 individuals, support 30 local companies, and incubate 10 new companies for commercialization over the next four years. Calgary Economic Development

White Star Capital, the global multi-stage technology investment firm, has announced a first close of $25 million for its new North American Seed Fund, anchored by the Fonds de solidarité FTQ. The strategy is designed to back high-potential startups from pre-seed through seed stages across the region. The fund will support early-stage founders building globally scalable solutions across the US and Canada. Other Limited Partners joining the first close include Capital régional et coopératif Desjardins (CRCD), Fonds québécois d'amorçage Teralys financed by La Caisse, and TD Innovation Partners (TDIP), a division of The Toronto-Dominion Bank. Fonds FTQ

REPORTS AND POLICIES

Government jobs impacted by increasing exposure to AI: The Dais

The federal government is increasing automation, but it must contend with the impacts of increased AI use on public sector jobs, say report authors Graham Dobbs, Vivian Li, Viet Vu and André Côté in Adoption Ready? The AI Exposure of Jobs and Skills in Canada’s Public Sector Workforce, a report by the Dais in partnership with The Future Skills Centre.

The study uses data from the 2021 Census of Population for Canada’s public sector workforce, assessing occupations on two measures: exposure to AI – how probable interaction with AI is in day-to-day tasks – and complementarity to AI – whether AI use is likelier to assist the worker with common tasks instead of replacing the worker entirely. 

The report's findings indicate that government workers are significantly more likely to be in occupations that include exposure to AI applications (74 per cent) vs. the general Canadian workforce (56 per cent). Public sector jobs rate similarly to the general population in terms of high-exposure occupations (27 per cent and 25 per cent, respectively), but there is a wider gap for low-complementarity tasks that are at risk of being replaced by AI for government workers (49 per cent) vs. the general workforce (29 per cent).

The federal public sector has a higher concentration of workers facing high-exposure and low-complementarity (58 per cent) jobs, reflecting occupations in business, finance, and administration. Meanwhile, Canada’s labour force boasts a larger segment of workers in occupations like senior management; natural and applied sciences; education; law, and social, community and government services. 

Report authors found that the most useful AI applications for the public sector can be broken into four categories: interpreting and reproducing language (e.g. reading and writing tasks); recognizing and interpreting images (analytics); applications in abstract strategy games (data analysis and pattern recognition); and interpreting auditory information (speech recognition).

Non-technological factors also play an important role in successful public sector tech adoption, such as human oversight, access to AI tools and training, and application of non-technological values and ethical principles for responsible AI deployment. 

Study authors recommend six immediate action items to guide the effective execution of public sector automation:

• Develop and publicly release clear, plain-language strategies for internal AI adoption and use.
• Equip workers with the AI tools and governance framework — and clear “social license” from management — to encourage responsible AI experimentation in day-to-day work, with tracking of outcomes, successes, and failures.
• Identify priority applications for trialling AI in public organizations, with a focus on high-volume, low-risk repetitive tasks where AI can augment existing jobs.
• Deploy AI literacy and responsible-use training and upskilling programs at scale across the workforce, to support adoption opportunities and general AI skills development.
• Launch a rolling process for realigning job classifications, to reflect AI exposure and job change resulting from adoption.
• Develop longer-term plans for managing the AI-driven workforce disruption, job change, and transition.

The potential for AI to augment public sector tasks and abilities is significant, but faces complex adoption challenges relative to the rest of the economy. Experimentation, evaluation, and iteration of public service AI adoption can accelerate the practical use of these technologies. In such early stages of innovation technology adoption, an emphasis should be placed on ensuring that adoption is flexible, purpose-driven, and focused on tasks with low criticality or harm to public service delivery and Canadian society. Long-run workforce planning should also incorporate training and upskilling opportunities to ensure that workers who may be most vulnerable to AI disruption and displacement are supported to upskill and transition to other jobs and careers.

Experimentation, evaluation and iteration are necessary in promoting practical use of public sector AI adoption. Emphasis should be placed on ensuring that adoption is flexible, purpose-driven and focused on tasks with low criticality to avoid harming public service delivery and Canadian society. Long-run workforce planning should include training and upskilling to support workers who are vulnerable to AI disruption in upskilling and transitioning to other career paths. 

“AI technologies can serve as valuable tools in the public sector, but are not a substitute for the strategies and bold actions we and others are calling for to modernize Canada’s governments and public administration to be fit for purpose in the twenty-first century.” The Dais

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Improved productivity starts with human capital development and resilient regional labour markets: Canada West Foundation

The Canada West Foundation has released the first two reports addressing Canada’s productivity challenges as part of its  Productivity Project series.

The study is a collaboration of experts from academia, industry and policy. Together, they address a pivotal question: How can human capital drive Canada’s productivity? 

Key stats from the study addressing Canada’s productivity problem: 

• Canada ranks second among 37 countries for having a highly educated workforce, but it also has the highest rate of underemployment among graduates. 
• Fifty years ago, Canada’s productivity surpassed that of the United States. Now, it lags the U.S by 28 per cent.  
•  Canada ranks low on innovation metrics, standing at 15th out of 20 measured countries.

The first report, Productivity and People: Exploring Human Capital and Productivity, takes a human-centred approach to Canada’s productivity gap. 

According to the report, while fifty years ago, Canada’s productivity surpassed that of the United States (US), it currently lags 28 per cent behind the US. It also trails many of the Organisation for Economic Co-operation and Development (OECD) countries, placing it 18th overall. Finally, Canada also ranks low on innovation metrics, standing at 15th out of 20 measured countries.

Among the main hindrances to Canada’s productivity growth, the report highlights weak capital investment, a lack of competitive business environments, as well as a widening chasm between supply and demand of core competencies required to perform jobs. 

The report stresses that any solutions presented must specifically target issues with Canada’s human capital system.

“There is a significant gap between workforce supply and industry demand for the competencies required to meet the needs of jobs in the economy. While regional competitive advantage used to be shaped by factors such as proximity to natural resources, it has increasingly shifted towards human capital—the collective knowledge, skills, and abilities of the workforce.”

Human capital is the driving force behind the physical infrastructure, machinery and technology at play within regulatory frameworks, markets and governing institutions, all of which are enhanced by a high-performing workforce. It [human capital] is a direct result of the knowledge and skill sets embedded into this workforce, measured at the individual, organizational, and regional levels. 

The report pinpoints five key stakeholders responsible for human capital development:

• Individuals: all residents of a region. 
• Learning providers: all individuals and organizations responsible for delivering certified, non-certified and informal learning in a region. 
• Credentialing bodies: all organizations assessing, verifying and acknowledging qualifications and competencies of individuals within a profession or field. 
• Policy makers: all levels of government engaged in learning, training, workforce development, etc. 
• Employers: regional employers, businesses, and professional associations.

“Each of these stakeholders has a part to play in one or more links in a conceptual, interactive human capital value chain.”

Increased development opportunities create increased human capital, which leads to improved productivity outcomes benefiting individuals, organizations, and the economy. 

Canada has the highest post-secondary attainment in the OECD, but this investment in education has not translated into high levels of productivity. Canada also has a highly educated workforce and relatively high unemployment, with 2.5 unemployed individuals for every available job. 

The report predicts that this mismatch of competencies will worsen as technological adoption progresses. This mismatch can be traced to a lack of what the report calls foundational competencies, including communication, collaboration and adaptability. 

“There is a direct link between foundational competencies and productivity. Research indicates that a one per cent increase in average literacy scores could result in a five per cent increase in productivity. To improve productivity in Canada, people need to work smarter.”

Canada’s outdated education system lies at the heart of this issue, with educational institutions requiring major overhauls – and incentives – to adopt innovative learning pathways, including vocational training and new learning methods to replace traditional credential-based learning outcomes. 

By 2024, the number of degree holders in Canada outpaced available jobs requiring such qualifications by a factor of four— the mismatch in competencies is exacerbated by this emphasis on post-secondary education.

The report recommends a reimagining of Canada’s human capital system to solve the country’s productivity problem. The report encourages stakeholders “to reflect on and reimagine the role of people—human capital—in driving future productivity and prosperity” by adopting a systemic approach that prioritizes coordination and collaboration.

The Productivity Project’s second report, titled The Coming Storm: The Eight Forces Reshaping Regional Labour Markets, takes a magnifying glass to Canada’s regional labour markets and breaks apart eight disrupting forces furthering misalignment between Canada’s labour force and productivity potential. 

The eight disrupting forces and their recommended responses are:

• Talent scarcity - The competency shortages and systemic barriers hindering full workforce participation.

• Recommendation: Employers should shift from proxies to competency-based hiring to drive workforce inclusion and boost productivity.

• The role of place - In a post-pandemic labour market, 80 per cent of occupations are still location-based, with 95 per cent anchored to geographic areas.

• Recommendation: Regions need to adopt competency demand forecasting, competency development and open recognition systems. 

• Declining trust - Rising institutional mistrust disrupts knowledge legitimacy and hiring.

• Recommendation: Regions can rebuild trust through competency-based systems with transparent verification. 

• Automation - Up to 62 per cent of Canadian jobs are at risk of some level of automation by 2028. 

• Recommendation: Decouple learning pathways from competency assessment in favour of agile, non-certified and informal learning pathways. 

• 50-year working life - Working lives will extend from 35 to over 50 years, impacting work culture and continuous learning frameworks. 

• Recommendation: Decouple learning pathways from age in favour of a continuous learning mindset that empowers individuals to take accountability for their learning pathways. 

• From jobs to competencies - Workplace value will be defined by an individual's capacity to adapt in the face of technological advancements, eroding task-specific learning competencies. 

• Recommendation: Encourage and prioritize adaptive capacity – the ability to learn, unlearn and relearn – at all levels of learning systems. 

• Risk management - Hiring proxies like degrees and references amplify systemic bias. 

• Recommendation: Introduce open, verified and technology-enabled credentialing systems. 

• The rise of contingent labour - Up to 35 per cent of Canada’s current workforce is made up of non-permanent workers. 

• Recommendation: Organizations adopt policies and support systems that integrate non-permanent workers. 

Canadian employers and educators can reshape learning and occupational pathways to encourage openness, diversity and transparency by building an adaptive workforce to empower Canadians and bolster productivity. Canada needs to adopt a people-first approach to solve its productivity problem, which includes reimagining its currently fragmented human capital system. This requires collaboration across public and private sectors to build a better future for Canada’s economy, workforce and productivity potential. Canada West Foundation

THE GRAPEVINE – News about people, institutions and communities

Montreal-based SRTX Inc. (formerly Sheertex) has appointed Sophie Boulanger as its new chief executive officer. The announcement comes at a critical moment for the company, which has endured a turbulent year marked by a steep drop in valuation, a major refinancing deal, and the departure of founder Katherine Homuth. Boulanger, a veteran of Canada’s fashion and retail sector, assumes the role from interim chief executive Timothy Leyne, who had stepped in after Ms. Homuth left the company in April. The leadership change is intended to stabilize the business as SRTX works toward profitability and expands its presence in global retail. Boulanger brings a wide-ranging background in fashion and consumer goods to the role. Her early career included positions with L’Oréal Canada, Christian Dior Couture, and Boutique Jacob, giving her direct experience with both the operational and consumer-facing sides of the industry. In her own statement, Boulanger emphasized continuity, describing herself as “honoured to join the company at such a pivotal stage.” She credited Homuth for laying the foundation with “vision and entrepreneurial drive” and said she was eager to “carry that legacy forward.” Retail Insider

Ontario-based MDA Space Ltd. announced the appointment of Andrew Stanniland as Managing Director, MDA Space UK, effective September 10, 2025. Based in the company’s Didcot office, Stanniland will oversee all aspects of MDA Space’s UK operations and drive continued growth and innovation in the region. Stanniland brings more than 30 years of multidisciplinary and international management experience in the space sector, with an established track record of leading high-performance teams and business development strategy from Thales Alenia Space, Inmarsat, and Airbus Defence and Space. Mr. Stanniland’s deep expertise and industry knowledge will be instrumental as MDA Space strengthens its UK presence and pursues new opportunities in the rapidly evolving space market. MDA Space

Mila, the Quebec Artificial Intelligence Institute, announced the appointment of Hugo Larochelle, Adjunct Professor at the Université de Montréal and former head of Google’s AI research lab in Montreal, to the position of Scientific Director. He officially assumes his duties on September 2, succeeding Laurent Charlin, who had been acting in that capacity since Yoshua Bengio transitioned to the role of founder and Scientific Advisor of Mila. Hugo Larochelle is a pioneer in deep learning and one of Canada’s most respected researchers. He brings a unique understanding of both the workings of major corporate research laboratories and the excellence of the country’s academic AI community. As Scientific Director of Mila, Professor Larochelle will chair the institute’s Scientific Council and ensure the strategic orientation of its research activities. Mila

The University of Saskatchewan has officially concluded its 10-year Be What the World Needs fundraising campaign. The campaign raised more than $570 million, with the funds being put towards a variety of initiatives, including scholarships, research chairs, and facilities. USask President Peter Stoicheff said that the university can already see how the funds “have expanded opportunities for our students, faculty, and visiting researchers and how the campaign has positively impacted our teaching and research mission.” Stoicheff noted the generosity of alumni during the campaign, with one in nine alumni contributing to the fundraiser. USask

The University of Windsor and two Unifor units – representing special constables and workers at the Energy Conversion Centre – recently avoided a strike by agreeing to extend their previous collective agreements. Both of the units’ agreements were set to expire on Sept. 1st, just ahead of the start of the Fall term. In his comments to the Windsor Star, James Stewart, Unifor Local 444 President, acknowledged the university’s deficit and impending change in leadership, as well as the importance of ensuring the safety of students during the first week of school. Mike Kisch, Unifor Local 2458 secretary-treasurer, added that the unions plan to set a new deadline when they meet with incoming UWindsor President JJ McMurtry. Windsor Star

Navigate – a partnership between Memorial University’s Grenfell Campus and College of the North Atlantic – has received $1.1 million to deliver a training initiative focused on strengthening the province’s entrepreneurial capacity. The Harnessing Entrepreneurial Learning and Mindsets project will offer flexible, non-degree training programs combining AI education and entrepreneurship development. The funding will support the design and delivery of an online certificate in entrepreneurship, as well as the expansion of the Navigate flagship base camp program for early-stage entrepreneurs and the summit accelerator program. By 2029, the program is expected to have supported the launch of five new businesses and the creation of 15 new jobs. Memorial

A group of 25 graduate students from China have filed a case in the Federal Court against Immigration, Refugees and Citizenship Canada (IRCC), claiming that their study permit applications have been unfairly stalled. The students –all of whom were still awaiting a decision when classes started this month – claim that the IRCC’s inaction is causing significant harm to their lives. "The IRCC pressed the pause button for my life for over one year," said Yixin Cheng, a prospective PhD student in computer science who has been waiting to hear about his application since May 2024. CBC

Cégep André-Laurendeau, Collège de Maisonneuve, and Université TÉLUQ have joined Obvia, an inter-university network focused on research on the societal impacts of artificial intelligence and digital technology. Obvia was founded in 2019 by Fonds de Recherche du Québec to support intersectoral research on the impacts of AI and digital technology, promote research from Québec, and support the development of AI in the Québec ecosystem. With this new development, researchers from each of the three institutions will be able to advance their research, mobilize knowledge, and collaborate with others on priority issues. By joining the network, the institutions join 20 other cégeps and universities from across Québec that have already joined Obvia. Obvia 

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