The EV strategy: what investments in electric vehicles will mean for the labour market

In a landmark move to insulate the Canadian economy from escalating trade volatility, Prime Minister Mark Carney has unveiled a comprehensive industrial strategy designed to transform Canada into a global electric vehicle (EV) powerhouse. By committing billions in tax breaks, plant investment credits, and consumer rebates, the federal government is signaling a decisive shift away from historical reliance on the U.S. market. For the staffing and recruitment industry, this pivot represents a significant restructuring of the domestic labour market, characterized by a transition from traditional mechanical manufacturing to high-tech, electrified production.

The policy shift arrives at a critical moment for the 125,000 workers currently employed in the Canadian auto sector. Recent layoffs at General Motors in Oshawa and Stellantis’s decision to move production to the U.S. have underscored the vulnerability of the existing North American trade framework. Carney’s strategy counters this decline by aggressively courting non-U.S. investment, specifically from South Korean and Chinese firms. This "multi-polar" approach to investment is expected to generate a surge in demand for specialized talent, particularly in southern Ontario and Quebec, as new battery and vehicle assembly plants begin to break ground.

The labour market impact of this plan is projected to be both substantial and phased. Industry analysts and government sources estimate that the build-out of a comprehensive "mines-to-mobility" supply chain could result in the creation of over 200,000 direct and indirect jobs by 2030. In the immediate term, specifically between 2026 and 2028, the injection of $3 billion in plant investment credits is expected to trigger the creation of approximately 15,000 to 20,000 high-value manufacturing and engineering roles. These positions will require a workforce proficient in chemical processing, software-defined vehicle architecture, and advanced automation, marking a departure from traditional internal combustion engine assembly.