Montreal – New research from the Institute for Research on Public Policy recommends a proactive, flexible and place-based strategy for skills development, tailored to the unique needs of specific regions that can respond to changes in the economy.

Authored by the IRPP’s Abigail Jackson, Rachel Samson and Ricardo Chejfec, the report highlights the challenges facing Canadian communities exposed to tariffs on their exports, the global energy transition or rapid expansion of major projects. These types of economic disruptions can be particularly challenging for Indigenous, rural and remote communities that face greater barriers to attracting skilled workers and accessing training opportunities.

“Workers are understandably hesitant to invest in training unless it’s clearly tied to a job opportunity,” says IRPP Vice President of Research Rachel Samson. “And while employers and governments offer programs to fill some gaps, these efforts are often fragmented, slow to respond to change, or too limited in scope to meet the needs of workers in the community.”

The IRPP research identifies a critical disconnect between economic development planning and local skills training. That gap has resulted in missed opportunities for both communities and businesses.  To address this, the IRPP recommends governments adopt a more localized and coordinated approach to workforce development.

Key recommendations from the policy brief include:

• Flexible funding for local skills programs: Governments at all levels should offer flexible funding that enables a diverse range of local organizations to propose innovative, community-led training initiatives aligning with local economic development plans.
• Enhanced coordination through Community Futures organizations: These federally funded organizations, in collaboration with regional economic development agencies, should be strengthened. The mandate can be broadened and resourced with coordination with the local economic and skills development in place. This could improve cooperation and communication among key players.
• Early planning and partnerships for major projects: Governments, at all levels, should proactively facilitate partnerships between employers, learning institutions and community groups to ensure that local workers can access training that enables them to benefit from upcoming major projects, particularly in rural and remote areas.

“Canada’s ability to adapt depends on the strength and resilience of its workforce,” says Samson. “That means investing in people where they are — and ensuring skills development is aligned with local realities.”