Canada faces a critical challenge as the nation transitions to a greener economy, with 68 communities identified as susceptible to workforce disruption. These communities, home to one in 10 Canadians, have been highlighted in a recent report by the Institute for Research on Public Policy (IRPP). The report calls for urgent government intervention to maintain employment and economic activity in these areas. It emphasizes the need for tailored investments and support from Ottawa to help these communities navigate the transition.
The IRPP's comprehensive analysis reveals that many of the communities at risk have deep ties to the oil and gas sector, particularly in Alberta and Saskatchewan. Of the 13 most susceptible communities, eight are located in these provinces. As Canada shifts towards more sustainable energy solutions, these regions face significant challenges in adapting their workforce to new industries.
The report recommends the establishment of the Canadian Centre for Community Transformation, a dedicated body to guide and support these communities through economic change. It also suggests Ottawa tailor its tax incentives and subsidies to drive investments where they are needed most, ensuring that susceptible communities receive the necessary support. Despite existing programs offering some assistance, the report indicates that federal contributions have not increased since 2009.
“What we hear from the communities is that it’s not sufficient. It’s not enough to help ensure that they can maintain the level of employment and economic activity that they have right now,” – Rachel Samson, a co-author of the report and vice president at IRPP.
The report highlights a significant funding gap faced by offices in these communities, with an average operational shortfall of $130,000 as of 2023. Furthermore, only about one in 10 projects announced under Ottawa's $18.5-billion Strategic Innovation Fund are situated in a susceptible area. This disparity raises concerns about the effectiveness of current governmental strategies in addressing the needs of these vulnerable communities.
“What they’re looking for is more control and agency over the planning and government investments that are happening,” – Rachel Samson, a co-author of the report and vice president at IRPP.
The IRPP stresses that current government programs are inadequate for guiding communities through large-scale economic and societal transformations. There is a pressing need for increased support and strategic planning to ensure a smooth transition for these regions.
“they are not equipped to guide communities through large-scale economic and societal transformations,” – The report published by the Institute for Research on Public Policy.
Additionally, the report voices concerns over potential disruptions caused by an influx of new workers in certain regions. For instance, Ontario communities identified for new electric vehicle battery plants could face housing shortages due to increased demand. This situation underscores the need for comprehensive planning to accommodate new residents while maintaining community stability.
