Skills gap continues to impede economic productivity & competitiveness

Calgary Chamber calls for action on skills, workforce participation and credential reform to close Canada’s growing productivity gap

Calgary, AB, April 17, 2025 – More than 28% of Canadian businesses report difficulty finding skilled workers — even with unemployment at 6.7%. This challenge is particularly acute within small business, which employ the majority of Canada’s workforce and nearly 1 in 5 Canadians say they’re not confident they could find a new job today. All of this points to a growing mismatch between the skills workers have and what employers need.

This mismatch is made worse by barriers to equitable participation, rigid credentialing systems and a lack of coordination between training and economic goals. Ultimately, the result is lower economic output, higher hiring costs, rising wage pressures and constrained growth.

“We’re seeing clear signs of misalignment between workforce development and market demand,” said Ruhee Ismail-Teja, Vice President, Policy & External Affairs at the Calgary Chamber of Commerce. “Businesses need a workforce that’s equipped with the right skills to meet demand — not just today, but long-term. Targeted investments in upskilling, credential recognition, and newcomer supports would make a direct difference in our ability to grow and compete.”

Smart investments in our workforce can lead to stronger productivity, more resilient businesses and better outcomes for workers. A Conference Board of Canada report found that Canada’s GDP would be $49 billion higher today if we had adequately invested in skills development over the past 20 years.

Canadians are aligned. A majority support government investment in workforce development, including training, education and skilled trades. More than half of Chamber members also agree that advancing diversity and equal opportunity in the workforce drives better outcomes. But short-term fixes won’t be enough. Real change requires long-term, coordinated planning, linking workforce development with economic, infrastructure and immigration strategies.

“Canada cannot solve its productivity problem without fixing its workforce problem,” says Ismail-Teja. “That means aligning skills with demand, modernizing how we develop and deploy talent, and removing the barriers that prevent people from fully participating — whether access to childcare, broadband or mental health services. This isn’t just good workforce policy — it’s essential to Canada’s economic competitiveness.”

Canada’s workforce by the numbers

• Canada’s GDP would be $49 billion higher today if we had invested in skills development over the past 20 years.
• 28% of businesses are struggling to find the skilled workers they need.
• Newcomers are twice as likely to start a business; however, they often pursue entrepreneurship because they face major barriers entering the workforce, including credential recognition.
• More than half of Canadians support action on workforce development, including training, trades programs and credential recognition.

Key Recommendations

To build a workforce that is ready for the future, the Calgary Chamber of Commerce is calling for five bold actions:

1. Restore Labour Market Transfer Agreement funding to support small business training and reskilling through the Canada-Alberta Job Grant.
2. Expand inclusive workforce access through affordable childcare, mental health supports, rural broadband, and targeted programs to advance equitable opportunity.
3. Streamline credential recognition across provinces and internationally to reduce delays in workforce integration.
4. Align immigration with labour and infrastructure needs, including regional shortages, housing, and provincial nomination systems.
5. Improve mental health access through federal transfers to support provincial service delivery, recognizing its impact on participation and productivity.

About Inflection Point

Inflection Point is a plan for a competitive, productive and prosperous Canada. It outlines 82 evidence-based policy recommendations across five pillars, shaped by extensive consultation with businesses and Canadians through roundtables, surveys and national polling. These recommendations are intended for all political parties, elected officials and civil servants — recognizing that both government and the business community have a shared responsibility to address Canada’s most pressing challenges.

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About the Calgary Chamber of Commerce

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.

Media opportunities

For media inquiries, please contact

Brittany Brander, Manager, Public Relations & Communications
media@calgarychamber.com