Written Submission for the Pre-Budget Consultations in Advance of the Upcoming Federal Budget

by:

List of Recommendations

Recommendation 1: CEWIL Canada (Co-operative Education and Work-Integrated Learning Canada) requests a sustained and predictable multi-year renewal of funding for the Innovative Work-Integrated Learning (I-WIL) and Student Work Placement Program (SWPP). 

The Ask 

CEWIL Canada is the national leader in work-integrated learning with over 50 years of expertise in connecting education and industry. CEWIL Canada requests sustained and predictable multi-year funding to renew and expand the SWPP and I-WIL initiatives to enhance Canada's economic development and workforce capabilities. 
This will allow Canada to: 
  • Expand access to work-integrated learning placements across a broader range of industries, regions, and underserved youth populations. 
  • Enhance program support for industry to increase the availability and quality of work placements, with a focus on innovative sectors like AI, clean technology, and digital media. 
  • Grow partnerships between higher education institutions, industry, and government to create new, sustainable, and innovative models of work-integrated learning that address the needs of today’s Canada. 
By expanding access to WIL, enhancing program supports for industry and growing partnerships, the Government of Canada will prepare Canada’s youth for the future economy, enabling them to thrive amidst technological change, global trade uncertainties, and evolving employment patterns. 

Rationale

In the spring of 2025, CEWIL Canada commissioned a poll with Abacus Data where we learned that 95% of Canadians overwhelmingly see the value in college and university students receiving real world, hands-on, work experience during their studies in preparation for the job market.
The investment in WIL is critical to addressing Canada’s youth unemployment crisis, bolstering our economic resilience amidst global uncertainties, and ensuring that our workforce is well-prepared to thrive in a rapidly evolving economy marked by automation and artificial intelligence (AI) advancements.  
CEWIL Canada is a trusted partner of the Government of Canada and has over 50 years of experience supporting work-integrated learning across the nation. CEWIL Canada’s iHUB, funded by the I-WIL Initiative, is proof that this type of funding works. Since 2021: 
  • 48,000+ WIL experiences partnering with 10,000+ organizations, 57% being SMEs;  
  • 73% of experiences supported equity deserving students; 
  • 92% of industry/community partners said that these experiences benefited their organizations; 
  • 93% of students said that this experience will help them in the workplace after they graduate. 
CEWIL Canada is the leading work-integrated learning organization in Canada, with over 1900 members across over 160 organizations in post-secondary, industry and community across the country.   
Finally, as youth unemployment rates remain high, and with an increasingly volatile relationship with our southern neighbour, Canada must urgently strengthen its workforce development strategies. WIL, as a key mechanism for bridging education and employment, can help mitigate the challenges youth face in entering the workforce while also addressing Canada’s productivity challenges. 

Background

Youth Unemployment Crisis  The economic landscape facing Canada’s youth is increasingly bleak. According to Statistics Canada, the youth unemployment rate (ages 15-24) as of the latest data stands at approximately 13.3%, more than double the national unemployment rate of 5.2%. Furthermore, youth are overrepresented in precarious and part-time work, which impedes their long-term economic prospects.  For instance, the 2023 Canadian Youth Employment Survey found that 60% of youth are underemployed in terms of hours worked relative to their desired full-time status, with many struggling to transition from academic learning to full-time employment after graduation. This situation, exacerbated by inflationary pressures and increasing cost-of-living concerns, poses a significant threat to the long-term economic mobility of our youth population.  In addition, the disruption caused by AI and automation has the potential to further displace workers and challenge traditional employment structures, particularly for younger individuals entering the workforce without hands-on experience or critical industry exposure. There is an urgent need for programs that help young people adapt to these changes and gain practical skills that align with the new economy. 

 

The Threat of Geopolitical Instability  While our relationship with the United States remains foundational, its volatility, due in part to shifting political dynamics, trade tensions, and emerging protectionist policies has underscored the need for economic diversification and greater domestic resilience. Canadian industries will need a skilled, agile workforce to navigate these challenges, and young people will play a pivotal role in driving innovation and economic growth in the coming decades.  Canada must also increasingly invest in developing homegrown talent to mitigate risks associated with global supply chain disruptions, political instability, and reliance on external markets. WIL and SWPP are proven programs that offer a cost-effective pathway to creating a competitive, future-ready workforce that can drive economic growth from within. 

Proven Impact of Work-Integrated Learning  Work-integrated learning (WIL), including co-op placements, internships, and apprenticeships, has been shown to be one of the most effective strategies to increase youth employability and address workforce shortages in critical industries. Research conducted by the Canadian Apprenticeship Forum reveals that 80% of employers are more likely to hire a candidate who has relevant work-integrated learning experience, and students who participate in WIL programs are 60% more likely to find full-time employment within six months of graduation.  Additionally, WIL provides significant benefits not just for students, but for employers and the Canadian economy as a whole: 

  • Employers gain access to a highly skilled, motivated pool of young talent, helping them meet labour shortages and innovate in a competitive environment. 
  • Students develop critical soft and hard skills, from problem-solving and collaboration to industry-specific knowledge, making them more workforce-ready and adaptable to emerging trends such as AI and automation. 
  • Canada’s economy benefits through improved productivity and innovation as students contribute to workplace solutions, often leading to long-term career opportunities and tax revenue generation. 

The Economic Development Case  Investing in WIL and SWPP aligns directly with Canada's economic growth goals. According to the Conference Board of Canada, work-integrated learning programs contribute $1.8 billion annually to the Canadian economy. Expanding WIL and SWPP has the potential to further amplify this impact by connecting more youth to industry, reducing unemployment, and increasing the tax base.  Additionally, the Productivity Commission of Canada notes that increased youth employment is a key lever for boosting national productivity. As the labour force ages and fewer workers are available to contribute to economic growth, young workers must be empowered to take on these roles. WIL and SWPP can act as a conduit, helping young people enter key sectors—technology, health, engineering, clean energy, and more—that are crucial to maintaining Canada’s economic competitiveness on the global stage. 

Long-Term Return on Investment for the Canadian Government The expansion of these programs will yield long-term benefits for the Canadian economy through: 

  • Reduced social costs: Higher employment rates among youth reduce dependency on government programs and social services. 
  • Improved innovation and productivity: Work-integrated learning helps to drive innovation and entrepreneurship, contributing to Canada’s digital economy and overall productivity levels. 
  • Fostering a diverse talent pool: WIL can be a powerful tool in promoting equity and inclusion by providing marginalized youth with the experience and opportunities they need to succeed in the workforce.

Conclusion The investment in the Innovative Work-Integrated Learning (WIL) and Student Work Placement Program (SWPP) is a critical step towards addressing Canada's youth unemployment crisis and strengthening our long-term economic prospects. By providing youth with the opportunity to gain hands-on experience in a rapidly evolving job market, Canada can develop a skilled, adaptable workforce capable of meeting the challenges of the 21st century. 

We urge the Government of Canada to invest in the multi-year renewal and expansion of these programs to help ensure that our youth are well-equipped to lead our economy into the future. With this funding, we can build a more prosperous, innovative, and inclusive Canada for generations to come. 

 

References

  1. CEWIL Canada. (2024). “Navigating New Ground: Perspectives from Canada’s WIL Ecosystem.”
  2. CEWIL Canada. (2024). “Mapping the Terrain: A Synthesis of Recent Research and Future Directions.” 
  3. Statistics Canada. (2023). "Youth Unemployment in Canada." 
  4. Canadian Apprenticeship Forum. (2022). "The Value of Co-op and Apprenticeships." 
  5. Conference Board of Canada. (2022). "Economic Impacts of Work-Integrated Learning in Canada." 
  6. Productivity Commission of Canada. (2022). "Improving Productivity Through Youth Employment."