Federal Fall Economic Update - key highlights

Last week, Finance Minister and Deputy Prime Minister Chrystia Freeland unveiled the federal government’s Fall Economic Update. Here are some of the key highlights:
 
Skilled trades support
As expected, there is an acknowledgment of the challenges being faced by employers across Canada to fill positions. In terms of new programming, the update also places particular emphasis on investing for a net-zero economy. This includes an investment of $250 million over 5 years (beginning next fiscal year), for the following:

• The Sustainable Jobs Training Centre: this would bring workers, unions, industry and training institutions to examine the skills of today, forecast the future skills that will be required, and help develop curriculum and on-site training for 15,000 workers to upgrade or gain new skills for a low carbon economy. The forecasting of future skills is something MCA Canada has emphasized the need for in our meetings with policymakers, and there is specific reference that the Centre will focus on areas in high demand, starting with the sustainable battery industry, and low-carbon building and retrofits.
• A Sustainable Jobs Stream under the Union Training and Innovation Program: it is expected that 20,000 apprentices and journeypersons would benefit from this investment to support training for green skills training in the trades.
• The Sustainable Jobs Secretariat: this would be a one-stop shop for workers and employers to access information on programs, funding, and other services offered by the federal government related to a low-carbon economy.

 *The Fall Economic Statement has also proposed to provide $60 million over three years (also beginning next fiscal year) to create supplemental supports to existing federal and provincial/territorial programming. 
 
Incentives for green technologies
The Fall Economic Statement also proposes a refundable tax credit equal to 30 per cent of the capital cost of investments in:

• Electricity generation systems, including small modular nuclear reactors
• Low-carbon heat equipment, including air and ground-source heat pumps

 *This credit would be available as of the day of Budget 2023, and no longer in effect at the start of 2035.  
 
Support for immigration
The update also reaffirms the government’s announced programs this week with the 2023-25 Immigration Levels, to reach 500,000 immigrants in 2025 – the majority of whom will be skilled workers who will help to address persistent labour shortages, including in healthcare, manufacturing, and the building trades.