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The untapped resource to building an inclusive workforce and a stronger economy

By Marsha Josephs, Executive Director, Indigenous Institutes Consortium

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The untapped resource to building an inclusive workforce and a stronger economy

October 15, 2025

Labour shortages are deepening across Ontario, threatening the province’s competitiveness. Meeting this challenge will depend on unlocking the full potential of a diverse and inclusive workforce. For Ontario businesses facing persistent labour and skills gaps, Indigenous Institutes represent a direct, and often overlooked solution – building local talent pipelines that strengthen the economy and drive shared prosperity.

Ontario is already investing heavily in critical minerals, infrastructure and clean energy to fuel its future. But to realize these ambitions, the province must also invest in its people, and Indigenous Institutes are a powerful resource ready to deliver.

Education grounded in Indigenous culture is a winning formula

Indigenous Institutes and learners are prepared to power Ontario’s economy. With over 30 years of experience, Indigenous Institutes have already been educating learners in culturally responsive ways, in fields such as manufacturing, transportation, construction, healthcare, agriculture and skilled trades.

What sets Indigenous Institutes apart is their unique approach. They ground education in Indigenous culture, language, and knowledge, and attribute their success to the wraparound support they provide learners. By removing barriers, they allow learners to be fully engaged with their learning experience.

The results speak for themselves: over 90 per cent of graduates transition into good-quality employment, and 94 per cent of learners report having the confidence to apply their learnings in a workplace or further education.

Indigenous youth are the fastest growing demographic

The good news is the province doesn’t need to look far for a solution to its workforce challenges. Learners at Indigenous Institutes across Ontario are ready, willing, and can fill the workforce gap. Indigenous youth are the fastest-growing demographic and by 2026, more than 350,000 Indigenous youth will reach working age.

Scaling Indigenous-led postsecondary institutions would have a monumental impact. A gradual increase in funding and enrolment at the seven-member Indigenous Institutes in Ontario could generate over 40,000 new skilled workers, add at least $4.5 billion in additional GDP, and deliver a 3-to-1 return on every dollar invested over the next two decades.

Immigration will not be enough to fill the workforce gap

Ontario’s ambitious infrastructure development goals will require over 351,000 workers by 2033. Immigration will remain important, but it cannot fill the gap on its own. New populations settling in Canada often gravitate toward larger urban centres. However, the workforce shortages are most severe in rural areas like northern Ontario which are home to many Indigenous communities.

Indigenous Institutes provide culturally grounded education close to home. This means Indigenous youth can access training in trades and other in-demand fields while staying rooted in their community. This model boosts completion rates and equips graduates to drive prosperity in the very regions where Ontario needs it most.

True reconciliation is the path to shared prosperity

There lies a great opportunity ahead of us to build a path toward reconciliation and achieve Ontario’s aspirations of a stronger economy. When Indigenous People and Institutes are engaged as true partners, this can build a domestic, long-term solution to Ontario’s workforce shortage.

We are already seeing large organizations like the MasterCard Foundation leading the charge, making major investments in Indigenous Institutes, recognizing the critical role Indigenous Institutes have in closing the gaps in Ontario’s workforce and economy. Their $235 million national gift to Indigenous education sent a clear message: supporting Indigenous-led education is not only reconciliation action but also a smart economic strategy.

Ontario’s business community also has a vital role to play in building pathways for Indigenous participation in the economy. This means intentionally creating opportunities that welcome Indigenous talent. – from work-integrated learning and mentorship programs to apprenticeships and long-term careers.

Canada and Ontario have a clear opportunity to step up and make equitable, long-term, sustainable investments in Indigenous Institutes to unlock the full potential of Indigenous learners.

The time is now for governments and industry to partner with Indigenous People, investing in solutions like Indigenous Institutes to build a stronger and more inclusive economy.

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