On March 5, federal Agriculture Minister Heath MacDonald announced nearly $13.47 million in funding for the 2026-26 Youth Employment and Skills Program.

The program encourages agriculture and food employers to hire people aged 15 to 30 for work experience and skill development opportunities by contributing to their wages and benefits, Agriculture Agri-Food Canada said in a news release.

AAFC will contribute up to 50 per cent of wage and benefit costs, to a maximum of $14,000 per project, the government’s website says. For Indigenous employers or employers who hire youth facing barriers to employment, the federal government will pay a maximum of 80 per cent of elligible costs to a maximum of $19,000 per project.

Youth facing barriers to employment include groups like youth living in remote or northern communities, single parents, recent newcomers, racialized youth and youth living with disabilities, among others.

Applications opened on March 5 and close on May 4.

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“I think we need to find our hook in some of those core government priorities,” said Brodie Berigan, the Canadian Federation of Agriculture’s (CFA) senior director of government relations and farm policy.

Berigan spoke alongside Food and Beverage Canada CEO Kristina Farrell and Canadian Agricultural Human Resources Council (CAHRC) executive director Jennifer Wright in a webinar on June 26.

Large financial commitments to things like defense and housing could draw away workers from an already strained agriculture and food labour force, Wright said.

The sector should look at how its priorities fit into the government’s mandate and use that as an entry point for advocacy, Berigan said.

Prime Minister Mark Carney set seven priorities in his mandate letter earlier this year, including building “one Canadian economy” by removing barriers to interprovincial trade, establishing a new economic and security relationship with the U.S., strengthening the Canadian Armed Forces, and making housing more affordable.

The mandate letter also mentioned “attracting the best talent in the world” while balancing immigration rates.

It’s hard to know what this means, Berigan said. He speculated this could be targeted at Americans who are feeling insecure in their job and who may be interested to move to Canada.

Need to build consensus

The Agri-food sector needs also needs to agree on what it needs so it can present a unified voice to the government.

“When you are the government, and you have a diverse set of stakeholders who are calling for different things, it’s very easy to do nothing,” Berigan said.

More than 100 members of the agriculture and food sector met for a summit on June 11 and 12 in Toronto. Berigan said the need to strengthen employers’ human resource capacity came up a lot—specifically, the need to support employers to build capacity around tech solutions and a labour pool that will increasingly rely on technology to drive productivity.

The sector also needs to identify its skills gaps, said Farrell. Berigan said the need for a “skills gap map” came up at the summit. The government already has some of this data, but needs to hear it from the industry.

Programs in flux

The federal government is at the beginning of a new mandate and structuring its priorities, Berigan said. A lot of programs are in flux, including the Temporary Foreign Worker Program.

The sector needs to clearly articulate the advantage of pursuing a multi-pronged approach like the National Workforce Strategic Plan that the CFA, CAHRC and Food and Beverage Canada have developed, he added. It also needs some sense as to how it will implement it.

“I think the clock is definitely ticking,” Berigan said.

“Unless we’re in there, able to articulate the value and the role of these types of strategies and the importance of them, decisions are going to be made without us.”

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Cow Coliseum, one of the main venues at the Canadian Dairy Expo during the show on April 2 and 3 in Stratford, was the perfect place to take part in these events. The venue hosted several youth-focused activities designed to help people get to know the industry better.

The resume blitz allowed youth to meet with businesses that are actively seeking new employees. Throughout the XPO show floor, businesses had signs front and centre, indicating that they were looking for talent.

According to Statistics Canada, jobs in agriculture account for one in nine jobs in Canada, employing more than 2.3 million people.

Mark Crawford, service and repair shop manager at Waterloo-based Centrifuges Unlimited Inc., was among the employers’ seeking applicants. He said it is important to find people who are excited to get into the workforce.

“We are looking for motivated individuals who are looking to challenge themselves and provide an opportunity for young workers to get into the workforce and get a start on their professional careers,” he said.

The event also gave students an opportunity to meet with colleges and universities that will offer a future pathway to the dairy industry. Sixteen-year-old Emily Van Den Broek used Canadian Dairy XPO as a chance to chat with educational advisors from the University of Guelph, one of Canada’s leading agriculture schools.

She said she is eager to explore what educational opportunities are available to help her achieve her goals.

“You work for yourself; you work with animals all day. They say find a job you love; you don’t have to work the rest of your life. There are good and bad days all the time, but I would rather have a bad day with cows than a bad day at the office,” she said.

Check out the rest of our coverage of the Canadian Dairy Xpo here.

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Currency markets increased the bets for a rate cut of 50 basis points next week to 68 per cent from 55 per cent before the employment report was released. A rate reduction of 25 basis points is fully priced in.

Analysts polled by Reuters had forecast a net gain of 25,000 jobs and an unemployment rate of 6.6 per cent from 6.5 per cent in October.

The jump in unemployment may nudge the Canadian central bank toward lower borrowing costs by a larger-than-typical half a percentage point for a second consecutive time at the bank’s rate announcement on Dec 11.

The unemployment rate has risen 1.7 percentage points since April 2023 and is now the highest since January 2017, excluding the coronavirus pandemic years, Statistics Canada data showed.

The rise in the unemployment rate was due to more people looking for work, the agency said in the last major economic data report to be released before the Bank of Canada’s interest rate announcement.

The Canadian dollar slightly strengthened after the jobs report to 1.4053 to the U.S. dollar, or 71.16 U.S. cents. Yields of government’s two-year bonds were down seven basis points to 3.026 per cent.

Canada’s labor force grew by 137,800, more than double the gain in jobs, data showed.

Adding to signs of labor market weakness, the average hourly wage growth for permanent employees slowed to an annual rate of 3.9 per cent from 4.9 per cent in October. The closely watched wage growth rate was the slowest since the 3.9 per cent rate in June 2023.

The BoC has reduced its key policy rate by 125 basis points since June to 3.75 per cent.

The job additions in November were entirely in full-time work that more than offset a small decrease in part-time jobs.

Overall, employment in the goods sector decreased by a net 20,800 jobs, mainly in manufacturing, while the services sector gained a net 71,500 jobs, led by wholesale and retail trade.

The employment rate, or the proportion of the population who are employed, remained at 60.6 per cent in November after falling for six consecutive months, as employment growth kept pace with growth in the population, StatCan said.

— Reporting by Ismail Shakil and Dale Smith in Ottawa; Additional reporting by Promit Mukherjee.

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Agricultural merchants including privately held Cargill are under pressure as prices of the commodity crops they trade, such as wheat, corn and soybeans, have dropped to near four-year lows and crop processing margins have shrunk.

Most of Cargill’s job reductions would take place this year, the company’s president and CEO, Brian Sikes, said in a memo reviewed by Reuters on Tuesday.

“They will focus on streamlining our organisational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Sikes said in the memo.

The move is part of a shift in strategy at the nearly 160-year-old company, Cargill said, when asked about the memo.

“Unfortunately, that means reducing our global workforce by approximately five per cent,” it said.

Minnesota-based Cargill has more than 160,000 employees, which implies that a five per cent cut in staff would hit about 8,000 jobs.

Unlisted Cargill reported revenue of $160 billion for its 2024 fiscal year that ended in May, down from a record $177 billion in the previous year.

Cargill does not release quarterly earnings statements, but in a memo seen by Reuters in August, it said less than one-third of its businesses met their earnings goals in the last fiscal year.

“Impacts to our operations and frontline teams will be kept to a minimum as we empower them to continue delivering for our customers,” Sikes said in the memo.

The move comes after Cargill said in August it would undergo structural changes after missing internal earnings goals, with plans to streamline operations into three units from five as part of its 2030 strategy, Reuters reported in August.

Sikes said the company will hold a meeting on Dec. 9 to share more information about the restructuring.

“This week, for those in countries where we can immediately communicate to employees whose roles are impacted, we’ll set up meetings to explain next steps,” he said.

Bloomberg News reported Cargill’s job cut plan earlier.

Cargill’s restructuring comes as its competitor Archer-Daniels-Midland faces its own challenges after discovering accounting irregularities and at the same time battling weaker earnings.

Meanwhile, after months of tackling competition regulators including in Canada and China, U.S. grains trader Bunge Global said in October it expects to complete its takeover of Glencore-backed Viterra by early 2025.

Cargill to terminate about 475 employees in Minnesota

Chicago | Reuters – Global trading house Cargill plans to permanently terminate about 475 employees in Minnesota, home to its corporate headquarters, starting on Feb. 5, according to a company letter released by the state on Tuesday.

Cargill has said it plans to cut around five per cent of its staff after revenue slumped in its most recent fiscal year as crop prices hit multi-year lows.

The company is informing Minnesota employees about layoffs this week, and they are eligible for severance pay and outplacement services, Cargill said in a letter to the Minnesota Department of Employment and Economic Development.

The employees work at an office center in Wayzata or are “tagged” to the facility but live elsewhere, according to the letter, which added that they are not represented by a union.

“Cargill is undergoing a business restructuring that is resulting in a reduction in force of certain roles at the Wayzata Office Center,” the letter said.

Agricultural merchants, including privately held Cargill, are under pressure as prices of the commodity crops they trade, such as wheat, corn and soybeans, have dropped to near four-year lows and crop processing margins have shrunk.

Cargill has more than 160,000 employees, which implies that a five per cent cut in staff would hit about 8,000 jobs.

The company reported revenue of $160 billion for its 2024 fiscal year that ended in May, down from a record $177 billion in the previous year.

Cargill does not release quarterly earnings statements, but in a memo seen by Reuters in August, it said less than one-third of its businesses met their earnings goals in the last fiscal year.

– Above reporting by Tom Polansek

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“We are currently seeking eligible partners across Canada that have existing training programs that may be in need of further refinement or support,” it said in an emailed newsletter.

Eligible organizations can access funding between Feb. 1 and March 31 of this year, CAHRC’s website says. The training programs must be ready for delivery so participants may finish them by the end of March.

Funding may be used for things like enhancement of programs and materials, funding to deliver training in Indigenous communities or at an institution, and for ‘wrap around’ supports for participants, such as transportation or childcare allowances.

CAHRC will ask for an in-kind contribution of 10 per cent of the training program’s total budget.

The deadline to apply is Jan. 31.

—Geralyn Wichers is associate digital editor with AgCanada. She writes from southeast Manitoba.

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The economy added just a net 100 jobs last month, Statistics Canada said. Analysts polled by Reuters had forecast a net gain of 13,500 jobs and the unemployment rate to tick up to 5.9 per cent from 5.8 per cent in November.

The average hourly wage growth for permanent employees – a figure closely watched by the central bank – accelerated to an annual rate of 5.7 per cent in December – the highest since January 2021 – from 5.0 per cent in November, Statscan said.

“The main story here is we are seeing some cool down in the job market,” said Doug Porter, chief economist at BMO Capital Markets. “The one disturbing aspect for the (central) bank is that average hourly wages took a big step up in the month.”

The Bank of Canada (BoC) has said wage growth that sticks above 4 per cent would hinder its efforts to sufficiently cool inflation.

The Canadian dollar was trading 0.1 per cent lower at 1.3360 per U.S. dollar, or 74.85 U.S. cents, after earlier touching a 17-day low at 1.3398. The Canadian jobs figures were released at the same time as U.S. data, which showed the economy there added more workers than expected in December.

Wage growth in Canada has remained strong even though job growth has eased in recent months as the economy slows under the impact of the BoC’s 10 rate hikes between March 2022 and July 2023. Canada’s economic growth was flat in October.

“The stagnation in employment, which follows sluggish GDP growth last year, suggests that the impacts of high interest rates are becoming more widespread across the economy,” said Royce Mendes, head of macro strategy at Desjardins Group.

The BoC has left its key policy rate on hold at a 22-year high of 5 per cent since July as it weighs whether rates are high enough to bring inflation back to a 2 per cent target.

But with inflation slowly ticking down and an unexpected contraction in third-quarter gross domestic product, money markets and economists expect the bank to start cutting rates in the first half of 2024.

“With wage numbers like this, the Bank of Canada will remain concerned about the inflation risk being still slanted to the upside,” said Derek Holt, vice president of capital markets economics at Scotiabank. “Markets are still aggressive in pricing cuts as soon as the March or April meetings.”

Canada’s economy added an average of 23,000 jobs per month during the last half of 2023, compared with an average of 48,000 per month in the first half of last year, Statscan said.

December’s gains were entirely in part-time work that offset a job losses in full-time work. Employment in the goods sector decreased by a net 42,900 jobs, driven by losses in manufacturing, construction and agricultural jobs.

Those losses were balanced out by a net 43,100 positions gained in the services sector, led by increases in the professional, scientific and technical services as well as health care and social assistance.

In the services segment, the wholesale and retail trade sector recorded their third consecutive month of job losses, another sign of a slowing economy.

The central bank’s next rate announcement is on Jan. 24, after the release of December inflation data on Jan. 21.

–Additional reporting for Reuters by Dale Smith in Ottawa and Fergal Smith and Divya Rajagopal in Toronto.

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Statistics Canada data Nov. 5 showed the national unemployment rate hit a 20-month low in October. The shortage of skilled and unskilled workers threatens to hurt economic growth and fuel inflation, which is already at an 18-year high.

“Talent is an issue in every sector, at every level of the value chain, in every part of the country, and there’s no silver-bullet fix at hand,” said Leah Nord, a senior director at the Canadian Chamber of Commerce.

Industry groups blame the shortage partly on COVID-19 unemployment benefits that alleviated the need for some people to work, and increased demand for better work-life balance among younger workers as older employees retire.

One solution, companies say, is to raise the numbers of temporary foreign workers. The federal government and several provinces are working on possible changes that would shorten the process to bring such workers to Canada and raise the maximum number of temporary foreign workers allowed to work per facility, said Richard Vigneault, spokesman for Quebec pork producer Olymel. The company is looking for 3,000 workers to add to its 14,000-member workforce, he added.

In the energy services sector, which is entering its busiest time of year as the winter drilling season gets underway, a shortage of labour has propelled firms to boost wages 10 per cent since June, according to the Canadian Association of Energy Contractors (CAOEC).

To attract workers, companies are also offering more flexibility in the hours they operate.

Canada’s oil and gas sector contributes about five per cent to national GDP and CAOEC chief executive Mark Scholz said the labour crunch could leave companies unable to capitalize on soaring energy prices.

Precision Drilling, Canada’s biggest rig contractor, is offering referral bonuses and incentives to recruiting teams to help address worker shortages, CEO Kevin Neveu said.

“I’ll tell you, it’s a big challenge right now,” Neveu told a third-quarter earnings call.

Suzanne Benoit, president of aerospace trade group Aero Montreal, said some Canadian companies are considering whether to raise salaries twice in the same year to retain workers.

“They feel obliged, or the people will leave,” Benoit said on the sidelines of the organization’s recent supply chain summit in Montreal, the country’s aerospace hub.

“It’s a perfect storm in the sense that there is inflation, a shortage of workers and the aging of the population,” she added.

The agriculture sector has long struggled to hire enough workers to pick fruits and vegetables. But this year is also seeing shortages of butchers and truck drivers, said Debra Hauer, manager of labour market intelligence at the Canadian Agricultural Human Resources Council.

Staffing shortages may improve as the government transitions people off its main emergency income support program and on to traditional unemployment benefits.

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As of Jan. 27, the program will be open to a new list of workers along with several other categories, in addition to other essential workers who were previously eligible.

The program aims to help workers who have to leave home to go to work, but have children who are learning online at home.

New additions to the emergency child care program include:

• Individuals working in fuel distribution and oil refineries;
• Education staff who are required to report to work in person while their children continue with remote learning;
• Grocery store and pharmacy workers;
• Truck drivers;
• Farmers and those who support food or agricultural product supply chains;
• Individuals involved in the collecting, transporting, storing, processing, disposing or recycling of any type of waste; and
• Individuals working in the manufacturing and distribution of disinfectants and sanitizers.

Eligibility can be determined by contacting a local municipality or municipal service system manager.

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Career opportunities are increasing and a change in skills demand is shaping the next generation.

Employers must understand the expectations of new farm hires and how to address them in order to attract dependable workers.

While agriculture and local food may intrigue today’s curious job seekers in the face of the pandemic, farm employers should make an effort to reflect on their workplace culture and the reasons why employees choose food and farming out of the many career paths available.

Employees expect open communication and transparency, positive recognition and workplace culture, an open learning and skill-building environment, as well as training to support physical and mental health, according to a recent webinar series hosted through the Feeding Your Future initiative.

To retain qualified workers, it is important to view these desires in a positive way, to be open to new ideas, and to appreciate that job seekers want to find a workplace that is rewarding and supportive.

Starting with recruitment, a detailed, yet concise job description appeals to job seekers. The job posting should outline the minimum level of education, skills and experience, as well as salary or wage, which will reduce the candidate pool to key qualified job seekers.

Employers should also be up front and realistic about the less attractive components of the job to convey honesty and transparency. Describe the learning and skill-building opportunities the job can provide, as well as potential career paths from entry-level positions.

Onboarding is another important learning opportunity for new hires. Dairy farm owners Rose Keunan and Jayne Dietrich spoke about their experiences during a recent Feeding Your Future webinar.

Both employers are thorough during the hiring and training process. They make an effort to provide learning opportunities and maintain open communication to address all concerns or questions.

Employers should make their expectations clear, but employee needs should be respected as well.

For more information on the Feeding Your Future initiative, led by the Ontario Federation of Agriculture and collaborators, visit feedingyourfuture.ca.

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