Canada is aiming to streamline foreign credential recognition for construction workers as part of a funding package introduced in the federal budget.

The 2024 budget is putting major focus on the need to boost Canada’s housing supply by providing measures and funding for getting more skilled trades workers to contribute toward that aim.

Delivered by Canada Finance Minister Chrystia Freeland on April 16 in Ottawa, the budget provides $50 million over the course of two years to Employment and Social Development Canada for the Foreign Credential Recognition Program.

Half of this amount will be dedicated to the construction industry, with a focus on homebuilding.

The remaining funding will support foreign credential recognition in the healthcare sector. The funding is an add-on to Budget 2022’s five-year $115 million investment.

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“Similar to a recent agreement between federal, provincial and territorial health ministers to recognize foreign credentials for health care professionals, the federal government is calling on provinces and territories to expedite removal of their barriers to foreign credential recognition,” said the budget document.

The budget proposed the construction of 3.87 million net new homes by 2031. It also said that Ottawa is working towards making it easier to rent while saving for one’s first home.

“For generations, one of the foundational promises of Canada’s middle-class dream was that if you found a good job, worked hard, and saved money, you could afford a home. For today’s young adults, this promise is under threat,” read the first chapter of Budget 2024.

“Rising rents are making it hard to find an affordable place to call home and rising home prices are keeping homes out of reach for many first-time buyers. The ability of an entire generation of Canadians to achieve the promise of Canada is at risk, despite their sheer grit and hard work. Millennials and Gen Z are watching the middle-class dream become less and less achievable. They worry that they won’t ever be able to afford the kinds of homes they grew up in. They deserve the same opportunity to own a place of their own as was enjoyed by generations before them.”

The budget said that the government is taking action to build more homes, shedding light on the plan released on April 12, Solving the Housing Crisis: Canada’s Housing Plan, which includes Ottawa’s plan to make it easier to afford rent and buy a home, and a commitment that no Canadian should spend more than 30 per cent of their income on housing costs.

Ottawa is topping up the $4 billion Housing Accelerator Fund – which includes 179 agreements with municipalities, provinces, and territories, enabling the construction of more than 750,000 new homes in the next 10 years – with $400 million to build more homes, faster, and in more communities.

Some other “key ongoing actions” being taken by the federal government are:

• The Affordable Housing and Groceries Act, which is making it less expensive to build new homes by removing the GST on new purpose-built rental housing projects.
• Over $40 billion through the Apartment Construction Loan Program, which is providing low-cost financing to build more than 101,000 new rental homes across Canada.
• Over $14 billion through the Affordable Housing Fund to build 60,000 new affordable homes and repair 240,000 additional homes.

• Unlocking $20 billion in new financing to build 30,000 more rental apartments per year by increasing the annual limit for Canada Mortgage Bonds from $40 billion to up to $60 billion.

The government is also breaking down regulatory and zoning barriers, providing direct low-cost financing, and making more land available for housing construction.

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Moreover, to ensure that Canada has the workers and innovative construction methods needed to build more homes fast, Ottawa is training and recruiting skilled trades workers, and transforming how homes are built to increase construction productivity.

Canada recently also initiated a review process for temporary resident programs to better align with labour market needs, protect against abuses in the system, and match the capacity to build new homes.

Both temporary and permanent residents will thus be subject to targets, to “ensure a well-managed, responsive, and sustainable immigration system to help balance housing supply with housing demand.”

The budget took data from BuildForce Canada to argue that the construction industry has a shortage of more than 60,000 workers by 2032, because of many retiring workers.

This is even further amplified because of the rising demand for home construction, as per Construct Connect.

The budget has suggested the provision of $100 million over two years to Employment and Social Development Canada, of which $90 million will be spread over two years for the Apprenticeship Service to help create placements with small and medium-sized enterprises for apprentices.

An additional $10 million is being allocated over two years for the Skilled Trades Awareness and Readiness Program in 2024-2025, to encourage Canadians to explore and prepare for careers in the skilled trades.

The budget added that to make it easier for young people who hope to start a career in the skilled trades, in addition to interest-free Canada Apprentice Loan and Employment Insurance Regular Benefits for apprentices on full-time technical training, the government will continue explore options to make apprenticeships more affordable.