Canada Wasted the Federal Skilled Trades Program Opportunity

The Federal Skilled Trades Program (FSTP) is one of the three Express Entry programs available for skilled workers to move to Canada permanently. At least in theory.  

In reality, this program has hardly been used in recent years. From 2022 to 2024, 14 ITAs were issued under the FSTP, an average of 4.6 per year — despite the severe shortage of tradespeople the country faces. 

So, why did the Federal Skilled Trades Program fail so badly? Before we go there, let’s start with a bit of history.

The Federal Skilled Trades Program: Launch and Early Years 

The Federal Skilled Trades Program was launched in January 2013. According to IRCC, it was created to fill persistent labour shortages, especially in the construction and natural resources sectors, and bring in a diverse range of skilled tradespeople.  

The annual intake was initially capped at 3,000, but in 2014, was increased to 5,000. In 2015, processing of applications under the FSTP, along with the Federal Skilled Worker Program (FSWP) and theCanadian Experience Class (CEC), were moved to the newly launched Express Entry system. 

Since then, IRCC’s use of the Federal Skilled Trades Program declined remarkably. Between 2015 and 2024, only 6,639 invitations to apply for permanent residence were issued through the program. 

The Demand for Trades Workers

If your first reaction to these numbers is “Oh, maybe Canada didn’t need skilled tradespeople anymore,” you would be very wrong. 

Recently, Prime Minister Mark Carney stated that Canada will need around 1.3 million more trades workers by 2033, to meet the country’s housing, infrastructure and energy needs. He also mentioned that if the training capacity and certification process isn’t improved urgently, Canada will face a shortage of 20,000 skilled trades workers annually. This need is so pressing that he allocated $6 billionto train and recruit skilled tradespeople.

The Canadian Occupational Projection System (COPS) predicts that between 2024 and 2033, many trades, transport, manufacturing, production and related occupations will face labour shortages. This includes 29 of the National Occupational Classification (NOC) codes currently eligible under the Federal Skilled Trades Program. 

On the flip side, no skilled trades occupations are expected to see a labour surplus in this decade. What’s worse is that these estimates were based on IRCC’s 2023 immigration targets, which anticipated 500,000 new permanent residents each in 2025 and 2026. With IRCC’s new immigration targets being 25 per cent lower, these shortages will only increase. 

Trades Draws Everywhere, But Not Under FSTP 

So why is IRCC blind to these labour needs? That is a loaded question. And the short answer is: they aren’t.  

In 2023, IRCC introduced category-based selection to supplement draws under the three economic immigration programs. Trades occupations have featured on the list of categories every year since. And, aside from NOC 22303 (Construction estimators), all the eligible occupations under this category were (surprise, surprise!) already covered under the FSTP. Another two FSTP-eligible NOCs are captured under the Transport occupations category, a priority category in 2023, 2024, and 2026. 

Between August 2023 and April 2026, IRCC conducted six draws for the Trades occupations category, issuing 10,350 ITAs. In contrast, the last FSTP draw was in August 2020.  

The real question is why did IRCC need a Trades occupations category when they had a whole immigration program devoted to the occupation? Because the eligibility requirements for FSTP were unnecessarily high.

The High Eligibility Threshold for the FSTP 

A key point to note is that, to enter the Express Entry pool and get an ITA under a category-based draw, candidates must first meet the eligibility criteria for one of the three underlying programs—FSTP, FSWP, or the CEC. This also means that ITAs issued under a Trades draw are attributed to one of these programs. 

In August 2023, 1,500 ITAs were issued under a trade occupations draw. Only 2 of these candidates were eligible through the FSTP. 1,357 qualified for the CEC, and 141 for the FSWP. 

But if 99.8% of skilled trades professionals were supposed to qualify through the CEC or FSWP, then why create a program for tradespeople in the first place? The FSTP was specifically created to bring in skilled tradespeople who couldn’t get in through the FSWP or the CEC. So why did the FSTP fail to live up to those expectations? 

The answer becomes clear when you compare the eligibility requirements of the FSTP with the other programs. 

Where the CEC and the FSWP require one year of experience (Canadian and foreign, respectively), the FSTP requires two years of experience in the last five years. It also requires a full-time job offer or a certificate of qualification from a Canadian province or territory—a requirement that does not exist for the CEC or the FSWP.  

This means the eligibility criteria for FSTP candidates were harder, except for language requirements, where FSTP requirements are lower than the others.

Language requirement by program:

• FSTP: CLB 5 in speaking and listening, CLB 4 in reading and writing
• FSWP: CLB 7 in all four language abilities
• CEC: CLB 7 if the applicant’s primary occupation is in a NOC TEER 0 or 1 occupation; CLB 5 for NOC TEER 2 and 3 occupations.

There is one added complication though: In situations where a candidate qualifies for more than one Express Entry program, IRCC issues invitations in the following order of priority: CEC first, then FSWP, and finally FSTP. This means that when a candidate is eligible for FSTP and another program, they will typically always be invited through the other program. 

The Trades Occupation Category Requirements  

Let’s look at the Trades occupations draw requirements now. To qualify, candidates must meet the minimum eligibility requirements for one of the three Express Entry programs and have at least one year of full-time experience (or equivalent in part-time), Canadian or foreign, in an eligible skilled trade in the last three years.  

Note that this work experience requirement is similar to CEC and FSWP but lower than FSTP. There is also no requirement for a job offer or a certificate of qualification (except to qualify through the FSTP, something very few do). 

Clearly, the Trades occupation category was created because the FSTP eligibility threshold was too high for candidates to realistically meet. And IRCC eventually realized that Canada needed trades professionals, regardless of whether they already had a job offer or certification. 

The Certification Complication 

With the country facing a dire shortage of skilled trades people, it is obviously advantageous to bring in trades workers who can join the workforce quickly. But unlike other regulated occupations where the certification process can be completed online, the trades certification process typically has a hands-on practical component. 

For instance, in Alberta, the Trades Qualifier – Work Experience program requires applicants to either take a practical exam in the province, work with an Alberta journeyperson in the trade, or get a declaration letter from their Alberta-based employer. 

This makes it extremely hard for outside Canada applicants to get a certificate of qualification, unless they’ve previously studied or worked in Canada. Getting a work permit for a trade occupation, without an existing certification, isn’t easy either. 

What’s In Store with The Express Entry Reforms 

There’s good news and bad news for skilled tradespeople. By merging all three Express Entry programs into one, IRCC plans to remove the job offer or certificate of qualification requirement for tradespeople to enter the Express Entry pool. The proposed Express Entry reforms would also bring the minimum work experience requirement down to one year. 

However, increasing the language requirement to CLB/NCLC 6 could make it harder for skilled trades workers to qualify. 

Qualifying to enter the pool is only step one. Whether a candidate is invited to apply for PR depends on their CRS score. Unfortunately, where IRCC previously accepted all trades certifications, they now plan to only award points for Red Seal designated trades certificates. This would make it harder for non-Red Seal trades workers to compete in the pool. 

This means IRCC will likely continue to select tradespeople through dedicated category-based draws, like it has been doing since 2023. While this approach helps foreign trades workers avoid the pre-arrival certification hurdle, it does nothing to shorten the time-to-practice.  

What remains to be seen is whether Canada’s new investments in trades training programs, combined with efforts to speed up foreign credential recognition programs will help skilled trades workers move to or settle in Canada permanently. Because the truth is, without foreign tradespeople, labour market gaps will continue to exist for years to come.