Manufacturing is a key pillar of Canada's economy, employing 1.7 million workers and driving innovation in everything from aerospace to food production. But as the industry evolves, so do its workforce needs. New technologies are transforming production processes, creating demand for highly skilled professionals who can help manufacturers stay competitive.
If your organization has been feeling the pinch when hiring for advanced manufacturing roles, you’re not alone. At LevelUP, our talent intelligence team has been analyzing job postings, wage trends, and hiring challenges across the sector. Here’s what manufacturing employers need to know as they plan for the future.
Demand for Specialized Talent Is Driving Up Wages
Demand & Wage Growth in Canada, Advanced Manufacturing and Engineering
(2020-2025)
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Data Source: Lightcast. Data Visualization: LevelUP. Job postings are measured as a yearly average. Wages reflect the average of median advertised wages in job descriptions. Wages shown in CAD.
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A More Selective Hiring Market Signals Competition for High-Value Expertise
Job postings for advanced manufacturing and manufacturing talent remain well above pre-pandemic levels, though slightly below their 2022 peak. At the same time, wages have climbed steadily, reaching an average of $75,000–$85,000 CAD in 2025. This is reflective of a more selective hiring market, where employers are prioritizing fewer but more skilled professionals.
A major factor is that Canada’s manufacturing industry is pivoting toward productivity, automation, and technology-driven growth. Many traditional roles that required larger workforces are now being streamlined through technology, reducing the number of general laborers needed for routine tasks. However, this also means that the professionals who remain in demand—such as engineers, AI specialists, and advanced manufacturing technicians—must possess increasingly complex skill sets.
Recruiting Outlook: The push toward high-value roles is driving steady wage increases. Be prepared to offer competitive compensation packages and benefits to compete for skilled talent.
Skills Shortages Present a Barrier to Innovation
Training Gaps Hinder AI and Robotics Adoption
While automation is optimizing manufacturing, it's also creating a skills gap. Many companies struggle to recruit talent to implement and manage new technologies. A shortage of skilled staff is a major obstacle to adopting AI and robotics, according to 40% of manufacturers. Underinvestment in training exacerbates the problem, with only 15% of firms spending more than $500 per employee.
Recruiting Outlook: Manufacturers will need to explore alternative workforce strategies, such as reskilling initiatives, apprenticeships, and partnerships with post-secondary institutions to ensure a steady pipeline of skilled talent.
Immigration Cuts Could Worsen the Talent Shortage
Canada has historically relied on immigration to fill critical skills gaps in STEM and skilled trades, with immigrants making up 43% of engineers, 35% of computer programmers, and 57% of chemists. Pending immigration policy changes could further exacerbate talent shortages and put even greater pressure on wages.
Recruiting Outlook: Advocate for policies that support immigration, and actively support skilled workers by offering sponsorship, assisting with permits and residency, and partnering with immigration consultants.
An Aging Workforce Puts Skills Transfer at Risk
The manufacturing sector is facing a wave of retirements, particularly among skilled tradespeople. In Ontario, for example, one in three workers with an apprenticeship or trade certificate is over 55. Companies must urgently develop succession planning and skills transfer initiatives to mitigate the loss of invaluable experience and expertise.
Recruiting Outlook: Prioritize training younger workers and leverage experienced employees for mentorship programs to mitigate the loss of institutional knowledge.
Economic Pressures Impact Workforce Stability
Job Uncertainty in Steel and Aluminum Manufacturing
External factors, such as trade policies, can also significantly impact the talent market. In recent news, the U.S. tariff on steel and aluminum threatens thousands of jobs in Hamilton and other steel-dependent regions, with roughly 90 percent of Canada's steel and aluminum exports going to American Companies. Union leaders and local officials have expressed concerns about hiring freezes and layoffs if tariffs lead to reduced exports.
Recruiting Outlook: Stay informed about economic developments and be prepared to adjust your workforce planning as needed.
What This Means for Manufacturers
The trends outlined in this post highlight the need for a forward-thinking approach to talent acquisition and retention in advanced manufacturing and engineering:
- Employer branding and differentiation will become more important to compete for top talent.
- Upskilling and workforce development should be a priority to fill skill gaps and adapt to technology adoption and automation-driven changes
- Strategic workforce planning will be necessary to mitigate the risks of an aging workforce and shifting immigration policies.
At LevelUP, we specialize in providing manufacturers with data-driven talent solutions to navigate these challenges effectively. Contact us to discuss how we can help you build a future-ready workforce.
