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Spring fiscal update boosts colleges, trades training

University Affairs CA United States
Spring fiscal update boosts colleges, trades training
The spring economic update , which Finance Minister François-Philippe Champagne tabled in the House of Commons on Tuesday, April 28, announced a $6 billion investment in training young people for skilled trades, mainly through colleges, union training centres, and on-the-job apprenticeships. The government’s strategy aims to train up to 100,000 skilled trade workers by the 2030-31 fiscal year. “That’s going to divert some students, understandably and correctly, from programs at universities perceived to not help them get a job, to start to look at the trades,” said Ian Lee, a professor at Carleton University’s Sprott School of Business. However, Gabriel Miller, president and CEO of Universities Canada (which publishes University Affairs) says the trades strategy does not come to the detriment of universities. “Universities want to be a big part of preparing the Canadian workforce for the changes that are coming and for the federal government’s objectives,” Mr. Miller said. He said that new opportunities for universities will arise through collaboration, such as one announced earlier this week between the Canadian Armed Forces and Royal Roads University to establish a new program aimed at increasing access to subsidized officer education at Canadian civilian universities. Starting in September, about 40 naval and officer cadets will arrive at the Victoria-based university’s campus as part of the Subsidized University Training List – Enhanced Pathway program. Mr. Miller also expects new partnerships to emerge between universities and colleges, which received a financial boost in the recent economic update through a $165-million investment in the Tri-agency College and Community Innovation program that was renewed for five years, and which is one of the largest vehicles for funding applied research at colleges, including polytechnics and CEGEPs, across Canada. “Terrific” emphasis on trades: CICan Colleges and Institutes Canada (CICan) applauded the creation of the trades-training program, which the government calls Team Canada Strong. “It was terrific to see the strong emphasis and central focus on trades,” said Pari Johnston, president and CEO of CICan. “We’ve been saying for months that by investing in major projects we are going to need to invest in those people who are actually going to build them, and that has started.” She noted the announcement of an apprenticeship grant that will provide apprentices with $400 per week while they are attending mandatory in-class technical training, and a Build Canada initiative for employers to train apprentices through up to $10,000 in wage subsidies for the new hire’s first-year salaries. “There’re more to do. We’re going to need investments in capital and equipment at public colleges and polytechnics to handle the waiting lists for trades folks, but it was great to see the value put on the careers that skilled tradespeople have,” said Ms. Johnston. Sounding a supportive note, Mr. Miller said that “to drive an economy like Canada’s in the 21st century,” the country needs both university and college-educated people with a wide range of skills, and that he views the idea behind Team Canada Strong as “a very specific measure related to a particular moment in this government’s economic agenda.” “We know in the near term that Canada is desperately trying to improve its productivity by building a lot of new ports, pipelines, highways and houses,” he said. “So, it’s sensible that the government would want to move quickly to get people into jobs that will help them build that infrastructure and provide incentives to ensure that people go into the trades.” Mr. Miller noted that while enrollment at community colleges has fallen over the past decade, it has increased at universities — a trend he expects to continue. “We expect enrolment to continue to rise in the next five or six years because there’s a demographic wave of younger Canadians coming,” he explained. “Our challenge isn’t convincing people they should go to university. They know it’s the single best investment people can make for their future.” Promise to increase student grants and loans confirmed Although the spring economic update provided no new funding for universities and for students, it reiterated a March 23 announcement to increase annual Canada Student Grants from $3,000 to $4,200 and interest-free Canada Student Loans from $210 to $300 per week. But this financial support will have little impact on students compared to “the impact of AI on entry-level employment” that they face, according to Dr. Lee. “There’s a real sense that it’s sabotaging the number of jobs available.” By contrast, he noted: “There are a significant number of analysts who believe that the trades are mostly immune from AI job-destruction.” However, Mr. Miller said he believes AI will drive demand for university education, as well as providing jobs for graduates. “AI is a perfect example of where we need university talent, whether it’s on the research front or to turn research into new commercial opportunities or to take AI tools into workplaces across the country.” “Artificial intelligence for all” is how the federal government described its forthcoming AI strategy that features six pillars, including one “empowering Canadians” by giving “all Canadians” access to AI training and education, and another to build the Canadian Sovereign AI Foundation and “grow Canada’s exceptional AI researchers and talent pool,” according to the economic update. 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