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A curated resource of recent research on trends shaping Canada's labour market.

Harnessing generative AI: Navigating the transformative impact on Canada’s labour market 

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Key Takeaway
While generative AI won’t necessarily eliminate jobs, it is poised to transform how many Canadian workers perform tasks, with the impacts varying by industry and region. 

 

Using tools like ChatGPT and the OaSIS database, the Institute for Research on Public Policy examined jobs across Canada to determine which sectors and regions will be most affected by generative AI. The research found that impacts are likely to vary significantly by region, industry, and tasks performed.  

The report found that, rather than entirely replacing roles, AI is more likely to shift the mix of tasks within jobs. Routine clerical and data processing tasks are the most likely to be affected, while tasks that require social interaction, leadership, and problem-solving will remain resistant. Overall, roughly 50% of Canadian jobs are moderately exposed, with roles expected to evolve rather than disappear.   

The impacts of generative AI vary widely across industries. Due to their task structures, sectors like transportation, warehousing, and manufacturing are more exposed. Sectors like education, health care, and professional services are less likely to be affected. Regionally, provinces like Ontario and Manitoba face higher exposure in key occupations, whereas places like Prince Edward Island and Newfoundland see less risk overall.   

The authors recommend responding with investments in digital infrastructure and skills training, with a focus on abilities that will complement AI. Such areas include emotional intelligence, social perception, and critical thinking—domains where humans retain a clear advantage. 

Resisting technological change is not a viable way forward. Managing this inevitable shift effectively will require proactive, targeted policy. 

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2021 | Chiarello, F., Fantoni, G., Hogarth, T., Giordano, V., Baltina, L., & Spada, I.
Key Takeaway: Text mining and natural language processing techniques can help identify gaps in skills classification systems, ensuring they keep pace with the rapid technological changes that are being driven by Industry 4.0. Understood as the fourth industrial revolution, Industry 4.0 refers to the current wave of advanced manufacturing and industrial transformation driven by connected digital technologies—such as automation, AI, and the Internet of Things—that make production systems more data-driven and intelligent.
2025 | Javed, A., & Usman, N.
Key Takeaway: Italy's green transition is creating a widening skills gap, with environmental regulations and renewable energy adoption reducing demand for low-skilled workers while increasing opportunities for high-skilled labour.
September 14, 2023 | Scanlon, K.
Key Takeaway: What people long for is not higher GDP, but systems they can see, feel, and believe in.
October, 2025 | Sigelman, M., Fuller, J., Tan Levy, E., Saleh, Y., Chen, L., Guilford, G., Kang, SH., Tan, R., Chua, S.
Key Takeaway: Firms that retain older workers are 55 percentage points more likely than others to achieve high overall retention.
2024 | Handa, K., Tamkin, A., McCain, M., Huang, S., Durmus, E., Heck, S., Mueller, J., Hong, J., Ritchie, S., Belonax, T., Troy, K. K., Amodei, D., Kaplan, J., Clark, J., & Ganguli, D.
Key Takeaway: Most workers will experience AI as a reshaping of their daily activities, not a sudden loss of employment.
October, 2025 | Scott-Clayton, J., Minaya, V., Libassi, C. J., & Thomas, J. K. R.
Key Takeaway: Helping recent graduates navigate the job market after college could significantly reduce socio-economic disparities.
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