Employers are increasingly taking training into their own hands

For years, policymakers have warned that Canada’s widening skills gap, the gulf between what workers know and what employers need, could slow the country’s growth. But new evidence suggests that businesses are no longer waiting for government to close that gap.

According to a recent survey by Morneau Shepell and the Business Council of Canada, 83 percent of major employers now participate in co-op, apprenticeship, or work-integrated learning programs, a striking increase from just 60 to 65 percent in 2018-2020. In only a few years, employer participation in structured training has surged by nearly twenty percentage points, reflecting how post-pandemic labour shortages, automation, and digital transformation have pushed companies to take control of their talent pipelines.

Rather than expecting new hires to arrive fully job-ready, more firms are now building their own internal academies, funding retraining programs, and partnering directly with colleges and universities to shape the next generation of workers. The goal is pragmatic: reduce dependence on unpredictable external hiring markets, and ensure that new employees acquire the precise blend of technical and soft skills needed to thrive in increasingly automated workplaces.

For the staffing industry, this quiet shift could reshape the ground beneath it. When employers “grow their own,” they often rely less on transactional recruiting to fill entry-level or mid-skill positions. That might dampen demand for certain categories of temp or contract placements. But for agencies willing to evolve, it also opens a new frontier; one where staffing firms act not only as recruiters but as partners in workforce development.

By helping clients design and manage training-to-employment pathways, pre-screen candidates for co-op programs, or coordinate transitions from temporary to permanent work, staffing companies can deepen relationships and move upstream in the value chain. Those that understand education partnerships, skills assessment, and funding programs could become essential brokers between business, academia, and government.

Even as more employers take ownership of training, the skills mismatch remains stubborn. Many firms still struggle to forecast demand or scale programs nationally. Others lack reach into underrepresented communities, newcomers, or career switchers. That’s where staffing intermediaries can add value: bridging the final gap between potential and placement, and turning education pipelines into active labour supply.

At the policy level, Ottawa’s recent $450 million reskilling package under the Labour Market Development Agreements suggests that public funding will complement, not replace, this new private-sector momentum. Together, these forces are moving Canada toward a hybrid model where government sets the framework, employers drive implementation, and intermediaries ensure connectivity.

For staffing leaders, the message is clear: adaptation will define survival. Agencies that remain focused solely on filling requisitions risk being bypassed by employers cultivating in-house capabilities. Those that reimagine themselves as architects of training, talent mobility, and upskilling could find themselves at the centre of Canada’s next great workforce transformation.

The shift toward employer-driven training is not just a human-resources trend; it’s a strategic response to a national productivity challenge. And for once, the story isn’t about waiting for Ottawa. It’s about business taking the reins of Canada’s future workforce, one co-op placement and one training cohort at a time.