Development of Indigenous HR Strategy
Canadian manufacturers face widening labour shortages costing billions annually, while Indigenous workers remain underrepresented despite government pushes for reconciliation and economic inclusion.
Key takeaways
- •Persistent labour shortages in manufacturing have caused $12.6 billion in economic losses recently, prompting sector-wide efforts to tap into underutilized Indigenous talent pools amid ongoing reconciliation demands.
- •Truth and Reconciliation Commission Call to Action #92 urges businesses to provide equitable access to jobs, training, and education for Indigenous peoples, with corporate adoption accelerating in 2025-2026 through targeted HR strategies.
- •Federal Indigenous procurement mandates and youth employment programs set concrete targets through 2026, creating pressure on employers to build inclusive practices or risk missing out on talent, contracts, and community partnerships.
Indigenous Inclusion in Manufacturing
Canada's manufacturing sector continues to grapple with severe labour and skills shortages, exacerbated by an aging workforce where over a quarter of employees are 55 or older and fewer than 9% are under 25. These gaps contributed to $12.6 billion in losses from lost sales, penalties, and delayed projects in recent years, according to industry surveys.
Indigenous peoples represent a significant untapped labour pool, yet face higher unemployment rates and barriers to entry in corporate environments. This disconnect has gained urgency as the sector seeks to address workforce deficits while responding to longstanding calls for reconciliation.
The Truth and Reconciliation Commission's Call to Action #92 specifically directs the corporate sector, including manufacturers, to adopt measures ensuring Indigenous peoples have equitable access to jobs, training, and education opportunities, alongside education for staff on Indigenous histories and rights. Many organizations, particularly in Manitoba's manufacturing ecosystem, are now advancing workforce development strategies rooted in partnership and barrier removal to meet these expectations.
Federal initiatives add concrete pressure: mandatory 5% Indigenous procurement targets for government contracts have phased in fully by 2025, with ongoing reporting and verification tightening access to opportunities. Programs like the First Nations and Inuit Youth Employment Strategy's Skills Link component continue into 2026, funding essential skills development and job placement for youth, while broader Indigenous Skills and Employment Training efforts support over 40,000 individuals annually.
Tensions arise between rapid implementation and meaningful outcomes: superficial compliance risks tokenism, while genuine strategies require cultural awareness, retention supports, and long-term community relationships. Employers that fail to adapt may face not only talent shortages but also reputational and economic risks in an environment where reconciliation intersects with business imperatives.
Sources
- https://cme-mec.ca/connection/indigenous-employment-strategies-hr-training
- https://cme-mec.ca/innovation/indigenous-workforce-development-strategy
- https://www.ngen.ca/hubfs/NGEN-Best-Practices-Report-2024.02.05-Draft.pdf
- https://fasken.com/en/knowledge/2025/07/federal-procurement-strategy-for-indigenous-business-faces-further-scrutiny
- https://www.sac-isc.gc.ca/eng/1691786841904/1691786863431
- https://diversity.tapnetwork.ca/equity-deserving-populations/indigenous
- https://www.rcaanc-cirnac.gc.ca/eng/1524494530110/1557511412801