Canada sets aside $50m to retrain workers as AI reshapes job sectors, highlighting the urgent need for skill adaptation
Amidst growing concerns about artificial intelligence (AI) impacting jobs, the federal government has earmarked $50 million for skills retraining for workers, as reported by The Canadian Press.
This allocation was announced as part of a $2.3bn investment outlined in the federal budget to enhance the adoption of AI technology and bolster Canada’s AI industry.
Additionally, the budget promises to invest $50m over four years to aid workers in “potentially disrupted sectors and communities” through the Sectoral Workforce Solutions Program.
Joel Blit, an associate professor of economics at the University of Waterloo, noted that the advent of AI signals a significant transformation in the economy and society, anticipating a transition period that might be chaotic.
Despite historical jokes about robots displacing human jobs, the real implications of AI, as evidenced by the emergence of systems like ChatGPT, have heightened these concerns.
A briefing note for Finance Minister Chrystia Freeland highlighted that generative AI could affect about 40 percent of all working hours, with sectors like banking, insurance, and energy facing a higher potential for automation.
The government has specifically acknowledged the creative industries as affected sectors, spurred by concerns from Canadian TV, film, and music industries about AI impacting their livelihoods and reputations.
Bea Bruske, president of the Canadian Labour Congress, emphasized the need to consider AI's implications across all jobs, not just those in the creative sector.
Large language models and other generative AI technologies can perform a variety of functions, including writing, idea generation, data analysis, and generating digital content such as code, music, images, and video.
This breadth of capabilities suggests that white-collar professions such as marketing, healthcare, law, and accounting may also experience significant impacts.
Looking forward, the debate around AI’s impact on the labour market focuses not just on job replacement but on the transformation of job tasks.
Viet Vu, manager of economic research at Toronto Metropolitan University’s the Dais, argues that understanding computational thinking and data skills will be crucial, as these are foundational to how AI operates.
However, critics like Valerio De Stefano, Canada research chair in innovation law and society at York University, argue that the proposed $50m may not be sufficient to address the scale of change AI is expected to bring.
He suggests that the government should also explore forms of unconditional income support, such as basic income, and potentially require AI companies and profit-boosting employers to contribute directly to social initiatives.
