Issue/Source: Labour and Skills Shortages in the Transportation Sector

Location: National

Date: October 2025

Suggested Responses

  • Canada’s transportation network and supply chains must have a future-ready workforce from coast to coast to coast, connecting communities and supporting reliable domestic and international trade.

  • Transport Canada continues to work collaboratively with industry, provincial and territorial governments, and education and training institutions to address labour shortages, and to ensure resiliency and capacity.

  • The Department is working closely with federal partners, as well as provinces and territories, and industry, on solutions to attract workers and prioritize the transportation in labour and skills development programs.

Background Information

In the context of a slowing economy, the job vacancy rate in the transportation and warehousing sector declined from 3.6% in June 2024 to 2.7% in June 2025, and is now slightly below the national average. The overall vacancy rate across the Canadian economy fell from 3.3% to 2.9% over the same period.

These shortages cause disruptions to supply chains, including grounded airplanes, docked marine shipping vessels, and a lack of available trucking capacity. Without sufficient skilled labour, the transportation system risks facing capacity constraints that could affect service reliability and Canada’s economic competitiveness, particularly in transportation-reliant sectors, including manufacturing, agriculture, and natural resources.

Many of the levers in this area are within the mandates of other departments as well as the provinces and territories. Transport Canada has an important leadership role to play for the transportation sector – both as a regulator and convenor. It regulates aspects of labour across federally regulated transportation modes, primarily focusing on safety and operational regulations. This includes certification and licensing of personnel in federally regulated transportation sectors (e.g., aviation, marine, rail), National Defence, foreign credential recognition, and overseeing operational standards and regulations that provide for the safety and security of personnel (including fatigue management).

In aviation, Transport Canada is undertaking digital transformation initiatives designed to streamline exam, flight test and licensing services. They are set up to bring about a more efficient and user-friendly system in the near future. This transformation promises to not only address current irritants but also implement more effective training practices, paving the way for a smoother and more effective training process.

Supporting Facts and Figures

  • In 2024, the transportation sector moved $1.55 trillion worth of international trade, contributed $92.5 billion (4.1%) of Canada’s GDP and employed 1.02 million workers.