Tariff response: how federal measures can indirectly benefit staffing firms

When the government of Canada moved on September 5 to respond to escalating trade tensions and U.S. tariffs, it did so with more than a cheque, it issued what could be a call to arms for the staffing and recruitment sector. For staffing firms that have long watched manufacturing, agriculture and exports churn under global pressure, the new suite of policies signals not only crisis mitigation but potential new streams of demand for talent and advisory services.

The measures announced by the federal government articulate multiple strands: a reskilling programme for up to 50,000 workers, a new digital jobs and training platform, employment-insurance flexibilities, a flexible fund of some C$5 billion to help firms impacted by tariffs, the introduction of a “Buy Canadian” procurement policy, expanded business-loans for SMEs and large enterprises, and support to critical sectors such as agriculture, seafood and auto manufacturing. 

From the vantage point of the staffing industry, there are three major implications: (1) far-reaching workforce transformation, (2) structural demand shift for contingent and permanent staffing, and (3) an advisory and value-added role for staffing firms beyond simply placing workers.

Workforce transformation: reskilling at scale

Tariffs act as a blunt instrument: they raise costs, disrupt supply chains, and can force firms to adapt quickly or exit markets. The government’s move to launch a reskilling package and a new digital jobs and training platform signals recognition of this. Firms in tariff-exposed sectors will need new skills, perhaps in automation, export diversification, logistics, bio-processing, or value-added fabrication.

For a staffing firm, this means an expanding remit. It is no longer enough to simply source body-count hires; clients will expect help mapping the “new workforce”. When industries like agriculture are supported (e.g., the canola and bio-fuels push) the talent profiles change: from commodity-farming roles to processing, regulatory or export-compliance roles. With up to 50,000 workers eligible for the reskilling package, staffing firms that build training-partnerships, redeployment programmes and talent mobility services will gain first mover advantage.

Structural demand for staffing in impacted sectors

The government’s support fund with “flexible terms” and the “Buy Canadian” policy represent signals to industry that the federal procurement engine and direct subsidy channel will be active. Firms that win contracts or receive support will need to expand or shift staffing quickly. For example, if a Canadian manufacturer wins a bid under the new procurement policy, they may ramp operations, open new shifts, bring on contract labour, and then convert to permanent roles. Staffing firms can position themselves as the bridge between government-enabled industrial expansion and agile talent supply.

Even SMEs, which are being offered expanded loans ($5 m from the Business Development Bank of Canada) and non-repayable grants via the Regional Tariff Response Initiative, may find themselves scaling operations or changing hiring needs. For staffing firms specialising in SME markets, this is a moment to deepen client relationships by advising not just hiring but workforce strategy: how to redeploy workers, how to source rare skills, how to manage labour flexibility.

Advisory role & market-diversification

Beyond plain hiring, staffing firms now have a clear role as workforce-transformation advisors. The policy narrative emphasises diversification, reducing reliance on a single trading partner, building Canadian content, stronger domestic supply chains. In practice this means the staffing industry can advise clients on how to pivot: for example, moving from commodity-export to value-added manufacturing, exploring alternative geographic markets, or embedding digital-skills in traditional roles.