POSTSECONDARY INSTITUTIONS

 Ontario’s Universities is calling for urgent action in the Government of Ontario’s 2026 budget, pointing out that the funding gap for universities is now $1.3 billion The sector is projecting deficits of $265 million in 2025-26, with a total budget shortfall growing to $1.3 billion by 2028-29. In a pre-budget submission, Ontario’s Universities is asking the government to increase base operating funding for universities by $1.2 billion starting in 2026-27, growing to $1.6 billion by 2028-29, to expand access for Ontario students and strengthen research-driven economic growth. “At a moment of profound global uncertainty C marked by escalating geopolitical tensions, supply-chain disruptions, accelerating technological change, and intensifying global competition – Ontario cannot afford to weaken the very institutions that underpin its economic prosperity, resilience, and long-term competitiveness,” said Steve Orsini, president and CEO of the Council of Ontario’s Universities. The combined impact of the government’s tuition cut and freeze, along with reductions to international student visa permits – which alone is projected to result in a cumulative revenue loss of $5.4 billion by 2028-29 – far exceeds the $1.3 billion over three years in additional government funding support scheduled to expire in just over a year, Ontario Universities said. Universities have already absorbed deep cost pressures while working to protect students from disruption. Nearly $1.28 billion in cuts and deferrals have been implemented across the sector over the last three years. “But despite these efforts, and despite recent support, the funding gap remains – and it is widening – putting essential student services, research capacity and enrolment in high-demand programs at risk.” Colleges Ontario has called for over $1.5 billion in provincial investments to address the college operating funding gap; expand high-priority programs; maintain regional access for small, northern, rural and French-language colleges and campuses; and support sector-wide collaboration and sharing. Ontario Universities

The Government of Québec is maintaining a tuition hike for out-of-province students taking English-language programs at the province’s universities, despite a court ruling last year that it wasn’t justified. The government says the higher fees are meant to prevent Quebec taxpayers from subsidizing a large part of the education of Canadian students who are not from the province. That explanation is part of a new rationale for the tuition hike that comes months after the Quebec Superior Court invalidated the measure. In an April, 2025, decision, Justice Éric Dufour ruled the government lacked data to support the policy. Dufour said the government offered little evidence to back up its claims that English-speaking out-of-province students contribute to the decline of French in Quebec and tend to leave the province after graduation. The Quebec government signalled last year it would not back down on the tuition hike, without explaining how it would conform to the court ruling. An updated version of Quebec’s budget plan for universities, published Jan. 23, does not provide new data underpinning the measure. But in a new preamble justifying the out-of-province fees, the government links the policy to protecting the “vitality” of the French language. The Quebec government first announced in October, 2023, that it would double tuition for Canadian students from outside the province attending anglophone universities. The hike was later reduced to about 33 per cent. The Globe and Mail

The Manitoba Institute of Trades and Technology (MITT) is winding down operations over the course of the next year as a result of a steep decline in international student enrolment. The Winnipeg post-secondary institution announced it will be closing after a federal cap led to a drop in international enrolment exceeding 55 percent, making its current financial model "unsustainable," a memo on MITT's website said. The document stated that an undetermined number of programs will be transferred to RRC Polytech. Numbers from the province show revenue from international students dropped nearly 60 percent from the 2024-25 school year to the current academic year – from $23.2 million to $9.5 million. MITT said it will work with the province and RRC Polytech to make sure there's a plan for students to complete their studies, whether they're in postsecondary, high school, adult learning, industry training or English language programs. All current MITT students will be able to complete their programs, said provincial Advanced Education and Training Minister Renée Cable – but where and when is still to be determined. MITT provides training in a range of in-demand skills, from early childhood education to welding, carpentry, and cybersecurity. It also offers English-language classes and high school courses for Grade 11 and Grade 12 students and adult learners. MITT had a total enrolment of 4,663 students across its various programs, its 2024-25 annual report said. According to the province, 1,988 of them — more than four in 10 — were international students. In a memo to staff, RRC Polytech president Fred Meier decried the impact of Ottawa’s cap on international students on Manitoba’s post-secondary sector, saying it doesn't take the province's unique market needs into account. CBC News

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Federal caps and constraints on international students will continue to impact Canada’s postsecondary sector in 2026

Higher education consultant Ken Steele has tracked almost 16,000 job losses at postsecondary institutions across Canada, alongside a slew of program closures and other cost-cutting measures, according to an article in The Pie.

After the repercussions of two years of federal caps and constraints on international students, stakeholders said they’re fatigued but hopeful about the year ahead, said the article by Poly Nash.

However, in the face of visa processing delays and record-low international student approval rates, experts widely anticipate inbound mobility to remain constrained in 2026, with study permit issuance unlikely to meet this year’s target of 408,000, including 155,000 new student arrivals – a near 50-percent reduction compared with the previous year.

Since January 2024, study permit numbers have fallen far short of government caps, with stakeholders criticizing the government’s “key miscalculation” in assuming that allocated volumes would automatically translate into issued permits.  

“This underestimates the cumulative effects of the past two years, including reputational damage, rapid policy churn, inconsistent messaging and shifting eligibility criteria,” said Philipp Reichert, University of British Columbia’s director of global engagement.  

“Visa approvals have been a mess this year. Only about 30 to 34 percent of study permit applications are getting through, a huge drop from the 50- to 60-percent range we used to see,” said Chris Busch, University of Windsor assistant vice-president of enrolment management.

“It’s not a demand issue; students still want to come, but bottlenecks and stricter assessments are turning too many away,” he said.

In some much-needed good news for the sector, Nash pointed out that last year the government announced that graduate students would be exempt from 2026 caps, as it committed $1.7 billion to attracting global talent in this year’s budget.  

As such, graduate, doctoral and research linked mobility will grow in relative importance, with these pathways aligning more directly with Canada’s workforce priorities and facing fewer policy headwinds, Reichert said.

“As a result, this could very well mean that institutional outcomes will increasingly be shaped by program mix and research intensity rather than only overall recruitment reach,” he predicted.  

Beneath the likely contraction of international students, impacts will be uneven, as public universities with graduate-heavy, doctoral and research-intensive portfolios are predicted to remain comparatively insulated. 

“By contrast, colleges, smaller institutions, and those heavily dependent on pathway programs, short-cycle credentials, or price-sensitive undergraduate markets are likely to face sustained pressure and further enrolment declines” – a divergence that will deepen structural differences across the sector, Reichert said.

Institutions that reposition international education as core public infrastructure rather than pushing discretionary enrolment growth will be better positioned to navigate this period, he added, with colleagues calling for the recognition of the value of international students by the Canadian public.  

“We need a more balanced, evidence-based strategy, one that supports housing, cracks down on bad actors, and invests in long-term capacity,” Busch urged. “If Ottawa listens, we might get policies that protect both integrity and access.” The Pie

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International students could be a key in strengthening Canada’s economic resilience

International students could be a critical factor in bolstering Canada’s economic resilience, says Isaac Garcia-Sitton, associate faculty in the School of Education and Technology at Royal Roads University.

For decades, international students have contributed to Canada’s research enterprise, workforce development and economic growth, she wrote in an article in The Conversation.

Now, as Canada navigates strained relations and an escalating trade war with its largest economic partner, it’s important policymakers stop overlooking international education, Garcia-Sitton said. “Unlike volatile trade agreements and fragile supply chains, international education provides a stable, long-term economic and social advantage.”

In 2018, international students contributed $21.6 billion to Canada’s postsecondary institutions, local communities and gross domestic product, she noted.

By 2022, that figure had grown to $37.3 billion. This represented just over 23 percent of Canada’s total service exports and around five percent of total merchandise exports. The economic contributions from international education outpaced economic contributions from other industries, such as softwood lumber and auto parts.

But international students’ contributions extend far beyond financial impact, Garcia-Sitton said.

They drive cutting-edge research in artificial intelligence, clean energy, biotechnology and climate science. This strengthens Canada’s innovation ecosystem and global competitiveness.

International students also serve as vital ambassadors – diversifying trade connections and expanding Canada’s global reach.

“Despite their undeniable value, recent policy shifts risk undermining Canada’s position as a top destination for global talent,” she said.

In early 2024, the federal government imposed a two-year cap on new study permits. The cap would mean approximately 360,000 study permits would be approved in 2024 – a decrease of 35 per cent from the previous years.

However, institutions fell well below the imposed cap, Garcia-Sitton noted. This wasn’t due to a lack of demand “but because of the rushed, poorly managed roll-out that amplified disruption beyond expectations.”

While a cap may have been necessary to moderate the sector’s growth, its rollout created uncertainty for institutions and students, she said. “This damaged Canada’s reputation for high-quality education. The impact to our global standing as a top destination for international students will take years to repair.”

This policy shift is especially concerning given Canada’s ongoing innovation and productivity challenges, Garcia-Sitton said.

A recent report from U15 research institutions shows Canada lags behind its peers in the Organisation for Economic Co-operation and Development (OECD). Canada is mainly falling behind in research and development intensity, private sector innovation and technology adoption.

In 2022, Canada’s research and development spending stood at just under two percent of GDP. This is well below the OECD average of around three percent.

Many small and medium-sized businesses rely on university partnerships for research and development, Garcia-Sitton pointed out. “Cutting international graduate student numbers disrupts these collaborations – hindering innovation at a time when Canada can least afford it.”

Policymakers claim restricting international student permits will ease labour market pressures. But the real problems with the labour market lie in skill mismatches, underemployment and employer hiring biases – not the number of international students, she said.

With unemployment at around six-and-a-half percent and youth unemployment at 13.6 percent, concerns about job competition are valid, she said. “Yet newcomers and international students face significant barriers in finding jobs in their fields.”

In 2024, the unemployment rate for recent immigrants reached 11 percent. This is nearly double the unemployment rate for Canadian-born workers.

Despite holding advanced degrees, two-thirds of foreign-trained professionals remain underemployed. This may be due to employers undervaluing international credentials and prioritizing “Canadian experience.”

This trend extends to international student graduates who remain less likely than their Canadian peers to find jobs that match their level of education. In 2023, just over 36 percent of international graduates with a bachelor’s degree secured roles requiring a university-level qualification, compared to just under 59 percent of Canadian graduates.

International student graduates also earn significantly lower salaries, despite having similar levels of job satisfaction.

These barriers not only limit individual potential but also weaken Canada’s ability to harness the talent it attracts, Garcia-Sitton said. “International students are more than workers – they’re entrepreneurs, innovators and future job creators.”

For example, as of 2022, nearly 180 of the U.S.’s billion-dollar companies were founded by former international students. Each of these companies created an average of 800 jobs and made up nearly a quarter of all dollar companies.

“Canada risks losing similarly bright minds to more welcoming countries if clear pathways for them to stay, contribute and build businesses aren’t established. This would cost the country both talent and billions in economic potential,” she said.

If Canada is serious about building a stronger, more competitive economy, it must address the systemic issues that stand in the way of international student success, she added.

This includes modernizing credential recognition so employers can fairly assess international experience and qualifications, expanding co-op programs, internships and mentorships so international students can gain relevant Canadian experience before graduation, and protecting them from misinformation and questionable recruitment practices.

Employers need to be educated about immigration pathways to reduce hiring hesitancy, she said. The government also must create a stable and predictable immigration policy framework to give businesses confidence in hiring international graduates.

As Canada continues to face labour shortages and growing economic and political volatility, international education remains a strategic asset, Garcia-Sitton said. It fuels research, diversifies trading partners, supports innovation and supplies the workforce Canada needs for long-term prosperity.

“The future of Canada’s economy depends on its ability to attract and retain the thinkers, creators, and innovators who will define the next generation of progress. At this critical moment, Canada must decide if it will invest in the talent that fuels innovation, or close the door on opportunity.” The Conversation

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Canada’s postsecondary institutions need to make a critical shift to be more relevant to Canada’s economic needs

Canada’s postsecondary institutions need to a critical shift to make themselves more relevant to Canada’s economic needs, government policies and industry’s requirements, according to a report by RBC Thought Leadership.

The report was done in partnership with the Business + Higher Education Roundtable and Higher Education Strategy Associates, through a series of roundtable dialogues about the future of postsecondary education.

“We heard concern – from coast to coast from industry representatives, governments and educators – that the perception postsecondary institutions are out of touch is growing and therefore threatening their argument to reverse years of funding cuts. It’s a vicious cycle, and colleges and universities will need to shift gears to get out of it,” wrote Jackie Pichette, skills policy lead at RBC Thought Leadership, in an article in Policy Options.

Last fall, a group of postsecondary and business leaders came together with policymakers to help with that critical shift. They hosted a summit focused on driving Canada’s ambitions in three key areas – space and defence artificial intelligence and digital technology and major energy projects.

The resulting report, Powering a Postsecondary Pivot, outlines more than 30 specific actions that governments, industry and postsecondary leaders can take to ensure Canada has the talent and technology needed to capitalize on opportunities tied to the country’s current nation-building agenda.

Building Canada’s innovation capacity to fight wildfires and encouraging skills development in the energy and critical minerals sector are two key activities from that list, Pichette said.

Canada recently agreed to the NATO commitment to allocate five per cent of GDP annually on core defence requirements as well as defence- and security-related spending by 2035.

While not part of core defence, wildfires (and climate change more broadly) are recognized by NATO as a “threat multiplier,” so spending that builds Canadian firefighting capacity and resilience aligns with Canada’s obligations, Pichette said.

Wildfires have obvious humanitarian and environmental implications. They are also a threat to national security and international order. They can damage military facilities, disrupt training and occupy forces in response efforts at the expense of other needs.

Canada is already ahead in developing wildfire monitoring capability, she noted.

Project WildFireSat is developing microsatellites that will measure fire heat, including during daily peak burns when existing satellite technology fails to capture the necessary data. This technology will help Canada track fire activity and inform management efforts.

Similar technology and skill could be deployed abroad. Federal defence spending commitments represent an opportunity to grow these and other wildfire management capabilities, such as AI-enabled disaster response and drone technologies.

Pichette said that on the heels of the national dialogue series, she encouraged Canadian universities and colleges to lean into thematic strengths and develop unique reputations as part of their modernization strategies.

Several universities have programs on disaster response, University of British Columbia and Carleton University have research and programs advancing relevant technology, while a number of colleges offer first-responder training. “These are all exciting initiatives that fall within broader institutional mandates,” Pichette said.

Federal and provincial governments are passing legislation and announcing plans to streamline approvals and get shovels in the ground on major nation-building projects. These will generate and transport clean energy, as well as extract the critical minerals needed.

“But they will stall without the necessary skilled labour,” Pichette noted.

The energy sector is currently dealing with large, technical skill gaps. In the electricity sector alone, 28,000 new employees will be needed by 2028, equivalent to 25 per cent of the current labour force – 57 per cent to replace retiring employees, 43 per cent to meet expansion demand, according to Electricity Human Resources Canada.

Meanwhile, enrolment in the disciplines needed to move forward with critical minerals extraction has taken a nosedive, Pichette said.

The Mining Industry Human Resources Council describes that industry as one of the least popular disciplines for undergraduate engineering in Canada, representing just one percent of total engineering enrolment. It also highlights a concerning drop in the number of geologists being trained.

“Canada needs to build excitement around its energy sector and the potential careers in it if we have any hope of fueling growth,” she said.

A few postsecondary institutions – such as the University of Alberta with its mining engineering program and energy research portfolio, and Concordia University with its energy transition research – could act as a major force, she added.

Pichette said Canadian postsecondary institutions need to focus on providing foresight and skills to capitalize on opportunities, such as those the American Office of Clean Energy Demonstrations identified, and prevent Canada from falling behind other countries, such as China, which is forging ahead with its clean energy transition, backed by growing strength and investment in R&D.

There are many other urgent social and economic priorities that postsecondary institutions could be taking up in bigger, bolder ways in conjunction with industry, governments (including First Nations) – such as cultivating talent and innovation in the agriculture sector or developing advanced space capabilities for Arctic defence, Pichette said.

“The point is that Canada needs the creative thinkers, capable workers and bold innovations that we’ve relied on colleges and universities to deliver in the past. Without that, we will stall in our efforts to reorient the economy and unlock new sources of value amid climate pressures, technological forces and an uncertain trade environment.”

Offering more distinct and relevant choices to students and industry partners will help the postsecondary sector demonstrate value to Canadians, Pichette said. “That will in turn build a stronger case to restore the public funding needed to ensure our colleges and universities remain engines for growth and prosperity in the years ahead.” Policy Options

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CourseCompare released its 2026 rankings of the best 20 universities in Canada. CourseCompare evaluated every school’s funding, teaching, student reputation and campus life, industry reputation and connections, and employment networks. CourseCompare said it placed particular emphasis on evaluating how well universities create career-ready graduates. The best 20 are:

1. University of Toronto
2. McGill University
3. University of British Columbia
4. University of Alberta
5. University of Calgary
6. Université de Montréal 
7. McMaster University
8. Western University
9. Queen’s University
10. University of Ottawa
11. University of Waterloo
12. Dalhousie University
13. University of Saskatchewan
14. University of Manitoba
15. Simon Fraser University
16. University of Victoria
17. University of Guelph
18. York University
19. Wilfred Laurier University
20. Concordia University CourseCompare

Teachers, pharmacists and other early‑career professionals who move to rural Canada can now access $65.3 million a year in student loan forgiveness, part of a federal government push to shore up critical services in small communities. The new rules took effect the first week of January and mirror an earlier program credited with drawing nearly 18,000 doctors and nurses to rural practice. The federal Department of Employment said the expanded incentives are meant to draw workers into communities that have struggled for years to attract and retain staff. Officials estimate more than 2,700 graduates each year will choose rural placements because of the loan relief. Under the updated Canada Student Loan Regulations, dentists, pharmacists and psychologists can see up to $60,000 in loans forgiven over five years. Teachers, physiotherapists, midwives and social workers are eligible for up to $30,000, while dental hygienists, early childhood educators and personal support workers can receive up to $15,000. All must relocate to what Ottawa defines as “under‑served rural or remote communities,” meaning populations under 30,000. Federal regulators said smaller communities consistently face limited access to health and social services, with residents often travelling long distances for basic care. The government said it selected eligible occupations based on labour market data, feedback from stakeholders and ongoing efforts across jurisdictions to address shortages. Western Standard

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Provincial governments urged to correct decade-long decline in Canadian students’ math performance on international tests

The decline in Canadian students’ math scores on international tests is a national challenge and provincial governments need to correct the problem, according to a report from the C. D. Howe Institute.

For over a decade, math scores on international tests have declined across all Canadian provinces, said the report by Anna Stokke, professor in the Department of Mathematics and Statistics at the University of Winnipeg.

On the 2023 Trends in International Mathematics and Science Study assessment, Grade 4 Canadian students performed below the international average on nearly every benchmark level.

“Given the strong link between early math achievement and later academic success, earnings, and careers in sectors such as science, technology and finance, this decline represents an urgent national challenge,” the report said.

In Getting Math Instruction Right: Strategies for Improving Achievement in Canada, Stokke noted that seven provinces declined more than 40 points on the Program of International Student Assessment since 2003, equivalent to about two years of lost learning, while the share of students performing at the lowest levels in math has more than doubled in most provinces.

She urged provincial governments to act, outlining practical, evidence-based solutions to reverse the downward trend and help ensure Canada remains globally competitive.

“Since Canada already spends more per student on education than the Organisation for Economic Development and Co-operation average, funding alone is unlikely to improve math achievement,” Stokke said.

 “For example, Japan spends about 14 percent less per student and gets much better results. Refocusing resources rather than increasing spending is more likely to be effective.”

The report highlights two low-cost, high-impact reforms that provinces can implement immediately: a mandatory multiplication tables check by the end of Grade 4, and universal screening in math for all K-8 students. These measures would identify students who are falling behind before gaps compound, enable early intervention, and send a clear signal that math fact fluency matters for later success.

Stokke recommended engaging experts in the science of learning to ensure instruction is aligned with high-quality research evidence, including prioritizing explicit, teacher-led instruction over inquiry or discovery-based approaches. 

“For too long, teachers have been told that inquiry-based instruction works best in math,” Stokke said. “That claim is not supported by high-quality research. Explicit, teacher-led instruction is most effective, especially for novice learners and students with math difficulties.”

The report also recommended strengthening standardized testing, setting clear evidence standards for instructional programs, directing funding toward programs shown to improve math achievement, improving math curricula, and requiring stronger math content knowledge for K-8 teachers.

Stokke warned that reforms will fail without leaders willing to change course. “When implementers are invested in maintaining the status quo, they often undermine meaningful reform," she said. “Governments must appoint leaders who support evidence-based practices and hold them accountable for the results.”

“Our students deserve an education that gives them strong mathematical foundations and prepares them for a wide range of careers in a math-driven economy, and we can’t afford to wait,” Stokke said.

“The time to fix math instruction in Canada is now, and it will take committed leadership and evidence-based policies to reverse this decline and set students up for long-term success.” C. D. Howe Institute

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The Alberta Machine Intelligence Institute (Amii) is expanding efforts to increase AI literacy with a new scholarship program aimed at environmental and atmospheric science students. Dubbed AI for Earth, the scholarship is open nationwide to any Canadian postsecondary student studying environmental science, meteorology or a related field. Amii is accepting applications until the end of February, with scholarships awarded in March. With 750 spots available, the program offers fully funded access to AI literacy training tailored to the field of environmental and atmospheric science. It was developed in conjunction with Environment and Climate Change Canada (ECC) and based on Amii’s existing AI Literacy for Everyone platform. Officially called Artificial Intelligence Literacy Foundations: Environmental Sciences and Meteorology Pre-Professional Development, the course includes both a focus on the basics of AI and its application in the context of meteorological and environmental science work. Funding the program is a joint venture between Amii and ECC, with the latter providing financial support toward the development of the new curriculum. BetaKit

Simon Fraser University (SFU) said it has achieved a major sustainability milestone by fully divesting its public equity and fixed income portfolios from fossil fuel investments as of June 30, 2025, delivering on its 2021 pledge and reinforcing its commitment to climate action. As of June 30, 2025, SFU’s total investment portfolios exceeded $1.2 billion and all assets of SFU endowment and non-endowment investment portfolios that carried direct fossil fuel exposure were transitioned into fossil fuel-free investments. SFU is also on track to meet and exceed its commitment to reducing the carbon footprint of our public equity investment portfolio by 45 percent by the end of 2025, relative to the 2016 baseline. The most recent measurement of SFU’s investment holdings as of March 31, 2025 shows a 74-percent reduction against the 2016 baseline, representing a nine-year decarbonization journey for SFU’s investment program. SFU continues to focus on making responsible financial decisions and investments that will advance its academic mission and support an excellent and sustainable learning and teaching environment. The university’s current responsible investment policy is being updated, and proposed changes will be shared with the SFU community for consultation in early 2026. Simon Fraser University

CANADA’S CURRENT & FUTURE WORKFORCE

 The Government of Ontario is investing $26 million into training additional frontline staff for long-term care. This investment will be used to train nearly 3,000 new staff members and support professional development, while offering students in related programs the opportunity to study within their communities through Living Classrooms. Of the funds, $5.5 million will support upskilling and training for staff already working in long-term care homes, while $21 million will go towards the Living Classrooms model, where students can apply their learning as they work with residents in the long-term care homes. Govt. of Ontario

Employment and Social Development Canada (ESDC) announced close to $10 million in federal funding for the BC Construction Industry Skills Improvement Council, commonly referred to as SkillPlan. This project will support Canada’s climate and low-carbon economy goals by developing, implementing and evaluating a national energy assessment training program for the insulator (heat and frost) Red Seal trade. This project is funded by the Union Training and Innovation Program’s Sustainable Jobs stream under the government’s Canadian Apprenticeship Strategy, which also complements investments in the Sustainable Jobs Training Fund that help thousands of workers to upgrade or gain the new skills required for a green economy. Budget 2025 proposed a $75-million expansion of the Union Training and Innovation Program over three years, which will further boost union-based apprenticeship training in the Red Seal trades. ESDC estimates that y 2033, there will be more than 410,000 job openings for skilled trades in the construction sector alone – including 189,000 from retirement. ESDC

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Three-quarters of Canadian workers using AI at work without employer training or using self-guided training, yet most businesses struggle to identify a business case for AI

Canadian workers who were the most familiar with artificial intelligence tools were those who were the most worried about their jobs being automated, according to a report on AI, future skills and future work.

The 2024 report was done by the Ted Rogers School of Management, Diversity Institute at Toronto Metropolitan University, Future Skills Centre, and Environics Institute for Survey Research.

Canada is positioned to become a global leader in AI, the report said. Already, Canada is a leader in AI talent, with over 140,000 AI professionals in 2023; this is a 29-percent increase from 2022.

Canada also leads in gender diversity in AI. Within most technology fields, there is a known gender gap when it comes to employment and wages. However, Canada saw a 67-percent growth in the number of women in AI from 2022 to 2023 — the largest year-over-year growth seen worldwide.

Despite leading in AI talent, Canada lags behind other countries in terms of AI adoption. A survey by KPMG showed that 35 percent of Canadian businesses are using AI in their operations.

While this is over one-third of businesses surveyed, this number pales in comparison to AI adoption in the U.S., where nearly three-quarters of businesses surveyed (72 percent) are using AI within their operations.

Similarly, while almost two-thirds of U.S. companies (65 percent) say they are using the generative AI platform ChatGPT to improve operations, only about one-third (37 percent) of Canadian businesses say they are looking into this.

Globally, Canada falls far behind leading countries in AI adoption, with 3.7 percent of firms indicating that they have adopted AI into their operations. This is much lower than other countries that have AI adoption rates more than double those of Canada’s, with Denmark having the highest at 24 percent.

The top barrier cited by Canadian companies to AI adoption is difficulty finding employees with AI expertise, according to the report.

About one in five (21 percent) of organizations surveyed said they do not currently have employees with the adequate skills to use AI tools they plan to integrate and just under one in five (17 percent) cannot find new employees to fill up this gap.

Two in five Canadian organizations (41 percent) in one survey said limited AI skills and expertise was the top barrier to AI adoption.

Over one-half (54 percent) of Canadian businesses in another survey said they are concerned about the accuracy of the AI algorithms they are using and that they might be making decisions based on poorly designed algorithms.

However, just under one-half (47 percent) in the same survey said they lack the expertise among their workforce to validate and verify the algorithms they have in place.

Lack of awareness of the AI tools that are available is also a barrier often cited to adoption.

This may make identifying the business case for AI a challenge; in fact, nearly three-quarters (69 percent) of Canadian businesses say they struggle to identify the business base for AI.

Another barrier to adoption cited by Canadian businesses is ethical concerns and trust of AI tools. Canada has one of the lowest levels of trust in AI technology. This highlights the need for governance policies for using these tools in the workplace, the report noted.

Sixty percent of students surveyed indicated that they have used AI at school, while only 34 percent of those who were employed said they have used AI at work to help with tasks.

For those who use AI at work, the impact is positive: most say it has made them more productive (81 percent) and more creative (71 percent).

Nearly three in five survey respondents (57 percent) say they are familiar (very and somewhat combined) with AI programs to use in the workplace. Of this, most – about two in five (40 percent) – are only somewhat familiar with AI tools that can be used in the workplace.

This leaves just under one in five (18 percent) who are highly confident in their familiarity with AI tools to use in the workplace. “This suggests that there is still work to be done to improve confidence in using AI tools at work.”

Perceptions of the speed at which their workplace is adapting to new technologies is mixed, with 51 percent agreeing that their workplace is too slow in their adaptation.

On the other hand, most respondents are not finding it difficult to keep up with changes at work caused by new technologies (61 percent) and most (61 percent) are not worried about automation.

Perceptions about training provided by their employer are slightly negative, with 53 percent of respondents agreeing that they haven’t received enough training on new technologies in the workplace.

Almost three quarters (72 percent) of those who used AI at work are doing so on their own –whether that means they are learning to use the tools without any training (48 percent) or they are using the tools with self-guided training (24 percent).

Group differences were also identified. Younger age groups, men, Indigenous, racialized and immigrant respondents were more likely than their counterparts to be familiar and have received training on AI tools in the workplace.

Nearly half of respondents (48 percent) of those were the most worried about their job becoming automated were those who said they very familiar with AI in the workplace, while just over half of those who were the least worried about automation (i.e., strongly disagreed) were not very (26 percent) or not at all familiar (25 percent) with AI in the workplace.

Data from Statistics Canada shows that over three-quarters of businesses (79 percent) reported no change in employment levels after AI implementation, while nearly one in five (18 percent) actually saw an increase in employment.

“The threat to jobs is not AI, but rather, failing to support reskilling and upskilling of the workforce,” the report said.

The results from this wave of the survey highlight the urgency for employers to create policies and implement training on using AI tools in the workplace, the report noted.“ To fill the AI skills gap, employers must ensure they are reskilling and upskilling the entire workforce.”

Employees are already using these tools, with or without guidelines from employers and this is likely to increase as AI tools become more widespread. If employers do not put policies into place and provide training soon enough, adoption of AI into business operations down the line will be more difficult if employees already have their own informal rules about this.

When employers are asked, they often say they are struggling to fill AI-related roles, but data shows that there are certainly workers in Canada with AI-related skills.

Results from this survey also indicate that despite claims from employers, employees are using AI in the workplace but are doing so without training.

“Together, this suggests a misalignment between post-secondary curricula and employer needs: graduates may not be coming out of school with the AI skills that employers are looking for, which might be driving employees to seek out their own training.”

The finding from other data that employers struggle with filling their AI-related roles combined with the finding here that employees are quite familiar with AI and are using it in the workplace on their own also suggests that employers might not be looking in the right places.

In other words, it highlights the need to expand the talent pool. Women, racialized and Indigenous Peoples are historically underrepresented in technology roles and often experience barriers to entering these workforces.

The relationship between familiarity and worry about automation suggests a need for AI literacy. Data suggests that AI adoption is associated with job creation rather than job loss, but a lack of understanding and fear mongering in the media about these tools might contribute to this worry. Increasing AI literacy in the general population could go a long way to reducing skepticism about these technologies and increasing AI adoption.

These results also highlight an important shift to self-guided training. Employees are taking it upon themselves to keep up with these new technologies and are not waiting for their employer to offer training or guidance.

Overall, employers need to catch up to employees and expand the talent pool if Canada is to keep its lead in the global AI race, the report said. Toronto Metropolitan University

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More than half of Canadian workers are frequently exposed to ergonomic risks, nearly 18 percent to biological/chemical risks, 17 percent doing unpaid work

In 2024-2025, more than half of Canadian workers (54.3 percent) were frequently exposed to ergonomic risk factors, (the most common physical risk) such as repetitive hand or arm movements, and 17 percent reported doing unpaid work in their free time several times a month – that is, at times they were not originally scheduled to work, according to a Statistics Canada (StatsCan) survey.

Work environments can expose workers to different types of risks to their physical health. These include ambient risk factors (such as high and low temperatures and loud noises), biological and chemical risks (such as breathing in smoke and exposure to chemicals) and ergonomic risks (such as repetitive hand or arm movements and moving heavy loads).

Data for StatsCan’s Canadian Survey on Working Conditions was collected from September 2024 to July 2025 over the course of four collection periods.

The occupations with the highest rates of frequent exposure to ergonomic risks were natural resources, agriculture and related production (74.9 percent), trades, transport and equipment operators and related occupations (74.5 percent) and manufacturing and utilities (73.2 percent).

Ambient physical risks were the second-most common type of physical risk, with 28.1 percent of workers reporting that they were frequently exposed to such risks.

The proportion was well above this national average in occupations in manufacturing and utilities (65 percent), natural resources, agriculture and related production (64.9 percent) and trades, transport and equipment operators (64.7 percent).

Overall, almost one in five workers (17.8 percent) were frequently exposed to biological and chemical risks. However, this proportion reached 46.6 percent in health occupations.

The likelihood of being exposed to physical risks also varied according to the educational attainment of workers.

In 2024-2025, having a bachelor's degree or higher was associated with the lowest probability of frequent exposure to ergonomic risks (41.9 percent compared with the average of 54.3 percent); ambient risks (15.1 percent compared with the average of 28.1 percent); and biological and chemical risks (10.4% compared with the average of 17.8 percent).

Workers with a high school diploma or less were the most likely to have been frequently exposed to ergonomic (64 percent) and ambient (40.8 percent) risk factors.

For biological and chemical risks, the rate of frequent exposure was similar for those with postsecondary education below a bachelor's degree (23.1 percent) and those with a high school diploma or less (21.7 percent).

A larger share of men than women were frequently exposed to ambient risks (35.9 percent compared with 19.5 percent) and biological and chemical risks (20.2 percent compared with 15.2 percent).

However, men (54.7 percent) and women (53.7 percent) were about as likely to report being frequently exposed to ergonomic risks.

Emotional demands at work can represent a distinct risk factor that can affect the psychological well-being of workers.

In 2024-2025, 16.1 percent of workers had to frequently deal with angry or dissatisfied clients, patients, or students (at least half of the time during the previous 12 months).

However, this proportion was 35.2 percent among workers in health occupations, more than double the overall figure for all occupations.

Overall, a larger share of women (20.1 percent) than men (12.5 percent) were in a job that involved frequently dealing with angry or dissatisfied clients.

Further, youth aged 15 to 24 (22.1 percent) were more likely to have been frequently exposed to angry or dissatisfied clients than either core-aged workers (25 to 54 years old) (17 percent) or workers aged 55 to 69 (8.9 percent).

When a job involves long hours or working at unusual times, work can also affect the ability of workers to achieve a good balance between their work and their personal lives.

In 2024-2025, two-thirds of workers in natural resources, agriculture and related production occupations (66.4 percent) usually worked over 10 hours a day at least once a month.

Further, one-third (33.5 percent) of workers in this occupational category indicated having had less than 11 hours of rest between two workdays at least once over the previous month – the highest proportion among all occupations.

Men were more likely than women to have worked at night (22.3 percent compared with 14.5 percent) at least once a month or to have had workdays that exceeded 10 hours (43.3 percent compared with 25.1 percent) at least once a month.

Workers in management (all educational requirements) and in occupations requiring higher levels of education are more likely to experience time pressures that could affect their work-life balance.

In 2024-2025, half (50.2 percent) of workers in management reported frequently working to tight deadlines (half of the time or more during the previous 12 months), a proportion nearly 20 percentage points higher than the share observed among workers in jobs that usually require a high school diploma or less (31.6 percent).

In addition, 34.6 percent of managers and 29.5 percent of workers employed in jobs that usually require a bachelor's degree or higher reported completing unpaid work in their free time several times a month or more to meet work demands.

This share was lower among workers in jobs that usually require a college diploma or an apprenticeship (12.8 percent) or a high school diploma or less (six percent).

Having access to a flexible schedule can help alleviate the negative impacts of time-related work pressures on work-life balance.

In 2024-2025, the majority (58.9 percent) of employees in Canada had their schedules set by their employer and 8.9 percent could choose between different fixed schedules

Over one-quarter (26.2 percent) were able to adapt their working hours within certain limits while 6.3 percent determined their working hours entirely by themselves.

Employees in the professional, scientific and technical services industry were the most likely (58.3 percent) to report being able to adapt their schedule or determine their own working hours.

Conversely, employees in the business, building and other support services industry were the least likely (24.2 percent) to report being able to do so.

While the parents of young children can often benefit greatly from having flexible schedules, core-aged parents living with a child under 6 years old (33.7 percent) were about as likely to be in a job that allowed them to adapt or determine their own working hours as core-aged employees who did not live with children (32.7 percent).

Supportive co-workers can make it easier for employees to navigate a variety of different situations at work.

While a majority of employees felt that their colleagues (79.5 percent) and their manager (73.6 percent) were usually supportive, this proportion varied by industry.

In 2024-2025, employees in construction (83.9 percent) and agriculture (83.8 percent) were most likely to indicate that their colleagues helped and supported them always or most of the time.

Meanwhile, employees in finance, insurance, real estate, rental and leasing (80.8 percent) and in natural resources (79.9 percent) were most likely to report receiving frequent support from their manager.

In comparison, the proportion of employees with a manager who supported them most of the time or always was lowest in health care and social assistance (66.2 percent).

In 2024-2025, the proportion of employees reporting that their colleagues provided frequent support was lower in several racialized groups, including Black (69.4 percent), Southeast Asian (70.7 percent) and Arab (72.3 percent) employees, compared with non-racialized, non-Indigenous employees (81.6 percent).

Black employees (66.2 percent) were also less likely to report receiving frequent support from their manager than non-racialized, non-Indigenous employees (74 percent).

Although many workers face challenging work environments, in 2024-2025 over four in five (81.9 percent) workers in Canada felt that they were doing useful work most of the time or always.

Workers in agriculture (92.3 percent) and construction (88.5 percent) were most likely to indicate that they had the feeling of doing useful work a majority of the time.

The proportion was also above the national average in health care and social assistance (87.2 percent). Statistics Canada

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The People’s Republic of China’s 15^th Five-Year Plan pledges to “establish an immigration system for hi-tech talent,” according to an article in VisaHQ. China’s Five-Year Plan explicitly calls for attracting top global researchers and engineers and building “internationally influential centres for education, science and talent.” Policy planners are building on the recently launched new K-visa – a fast-track permit that lets recent overseas STEM graduates enter, reside and work in China without first securing an employer sponsorship. The K-visa addresses a long-criticized gap in China’s work-permit framework, which historically made it difficult for junior foreign researchers to take up internships or post-doctoral placements on the mainland. Officials believe a dedicated visa class will help Chinese laboratories compete with R&D hubs in the United States, Singapore and the European Union. In practice, the coming immigration system is expected to merge the current R-class (“high-level talent”) work authorization with the new K-visa into a single points-based pathway. Early drafts seen by policy advisers propose multi-year residence permits, spousal work rights and a clearer route to permanent residence for foreign scientists who meet salary or publication thresholds. Local governments in Beijing, Shanghai and Shenzhen have already begun mapping provincial incentives, including tax breaks and subsidized housing, to complement the national scheme. Draft regulations are expected in early 2026. VisaHQ.com

SECTOR SIGNALS: Focus on the  quantum industry

 Some quantum numbers from the Natural Sciences and Engineering Research Council Canada (NSERC):

• $537 million – NSERC’s total investment in quantum-related research over the last decade.
• 535 percent – Increase in the number of quantum-related research partnerships NSERC has funded since 2015 (from 32 to 171).
• 1,600 – NSERC-funded trainees, at every stage of study, who experienced talent development opportunities in quantum research in 2024.
• 5,284 – The total number of NSERC grants, scholarships and fellowships involving quantum research from 2015 to 2024.
• $8 million – NSERC’s investment to support of the quantum discoveries of Gilles Brassard, at Université de Montréal, inventor of quantum cryptography. https://n3.nserc-impact.ca/3/

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Canada’s quantum ecosystem requires modern partnership models to realize new Defence Industrial Strategy’s ambitions

Canada has one of the world’s strongest, most complete quantum ecosystems and can take advantage of the defence sector being the earliest adopter of quantum technologies, says the head of Quantum Industry Canada (QIC).

But if Canada’s new Defence Industrial Strategy is to meet its ambitions, the country must create modern partnership models that let the Department of National Defence and the Canadian Armed Forces work directly with emerging industries like quantum, Lisa Lambert, CEO of QIC, said in testimony to Parliament.

This will enable Canada to validate capabilities early, reduce friction and scale sovereign technologies “at the speed of relevance,” she said.

“This is how Canada strengthens both prosperity and protection: by ensuring the technologies that secure us also build our economic future.”

Quantum is no longer theoretical, Lambert said. Some capabilities are already being deployed; others are advancing faster than expected.

“They’re enabling entirely new ways to sense, navigate, secure and interpret our world, unlocking dual-use capabilities that today’s systems simply can’t match,” she said.

Unlike many technologies that mature in civilian markets before reaching defence, quantum is moving in the opposite direction, Lambert noted.

Defence will be the earliest adopter, because the missions demand it and the advantages are too significant to ignore, she said. “The countries that develop and deploy these capabilities now will shape the next era of economic and strategic power.”

Canada enters this moment with real advantages, Lambert pointed out. The country recognized the quantum opportunity early, invested, built world-class institutions, trained top talent, and commercialized quantum before most countries even recognized its importance.

Because of those early bets, she said:

• Canada now has one of the strongest, most complete quantum ecosystems in the world.
• Canada has the second-highest number of quantum small and medium-sized businesses globally, and the highest per capita.
• Canadian companies routinely compete against far larger, better resourced players.

However, early leadership is not the same as lasting advantage, Lambert said. “If we do not convert Canada’s quantum strengths into deployable capability and industrial scale, they will be captured elsewhere – along with the talent, IP, and economic value that follow.”

The global quantum race is accelerating, she said. Quantum is being hard-wired into both defence and industrial strategies. Allies and competitors alike are standing up defence innovation units, securing supply chains, and using strategic procurement to expeditiously pull technologies into deployment. 

A study referenced in Canada’s National Quantum Strategy estimates quantum could contribute more than three percent of GDP by 2045, roughly the size of today’s aerospace sector. Global estimates run into the trillions. 

“That value will be captured somewhere. The question is whether it will be captured here, for the benefit of Canadians,” Lambert said.

Quantum’s defence relevance is profound, she said, including:

• Quantum sensing can detect what current systems cannot, including submarines beneath Arctic waters or stealth aircraft.
• Quantum navigation provides precise positioning without GPS, essential in contested environments.
• Quantum communications and quantum-safe cybersecurity make command-and control harder to disrupt, and easier to trust.
• Quantum computing will transform materials discovery, logistics, advanced cyber operations, and complex decision-making.

“These capabilities will determine, quite literally, who can see first, act first, and stay secure under pressure,” Lambert said.

Through Quantum Industry Canada, Canada’s quantum sector is already coordinated, making engagement simpler and more strategic, she said.

“Quantum is at a hinge moment, and so is Canada. With the right approach, the Defence Industrial Strategy can turn Canada’s early leadership into critical capabilities and enduring advantage while helping our homegrown SMEs grow into tomorrow’s industrial champions.” Quantum Industry Canada

*******************************************************************************************************************************Global quantum ecosystem is expanding rapidly but still focused on technology development over commercialization

The global quantum ecosystem is expanding rapidly, with strong growth in innovation, new firm creation and investment, particularly in quantum computing, according to a study by the Organisation for Economic Development and Co-operation (OECD) and the European Patent Office (EPO).

Despite rapid progress, the field remains focused on technology development over commercialization, and rising dependence on a few strategic suppliers is adding to systemic vulnerabilities, the study said.

Public policies have so far focused mainly on supporting research and development.

More than 30 countries have formulated tailored policies to support the responsible development and adoption of quantum technologies, including 18 OECD countries that have comprehensive national quantum strategies.

As part of a broader effort to support European competitiveness, the EPO’s Observatory on Patents and Technology has launched a new platform on quantum technologies, offering a unique lens on technological developments, and has updated the Deep Tech Finder with an extended quantum filter to help identify startups innovating in this field.

Together, these tools reinforce the role of patents as a cornerstone for advancing quantum technologies, helping innovators bring discoveries from the lab to the market.

Quantum technologies have the potential to drive broad societal progress, the study noted. They could deliver unprecedented advances in communication security, computational performance and sensing capabilities, with benefits reaching from defence to healthcare and environmental protection.

The study’s key findings are:

1. Rapid but uneven growth across technologies.

The ecosystem is expanding rapidly, reflected in rising firm entry, increasing investment – both venture and corporate – and strong growth in innovation activity across multiple competing alternative technologies within each quantum domain.

While quantum communication remains central in terms of both firm creation and patenting activity, quantum computing is currently the most dynamic area, driving the sharpest increases in both firm creation and patenting.

The number of international patent families (IPFs) in quantum increased sevenfold between 2005 and 2024, with most of this growth concentrated in the last decade, according to the study.

Since 2014 quantum IPFs have expanded at a compound annual growth rate of 20 percent, far outpacing the two-percent growth observed across all technologies.

Quantum communication generated the largest number of yearly IPFs until 2022, when it was overtaken by quantum computing.

Among all fields, quantum computing has shown the most dynamic growth over the last decade, expanding nearly 20-fold since 2014, compared with a threefold increase in communication and a 50-percent rise in sensing.

Canada ranks 7^th worldwide with 334 quantum-related IPFs between 2005 and 2024. More than half (175) relate to quantum computing, where the country ranks 4^th.

Canada accounted for 3.2 percent of worldwide IPFs from 2020 to 2024, broadly stable compared to 3.3 percent from 2015 to 2019.

The top five patent applicants overall in quantum IPFs from 2005 to2024 were IBM, LG, Toshiba, Intel, and Microsoft.

D-Wave Systems, founded in Burnaby, B.C. and currently headquartered in California, ranks 11^th globally and 6^th for quantum-computing patents.

Four of the top five universities by number of quantum-related cited IPFs were from the U.S., led by MIT and Harvard. 

2. Young firms focused on quantum development coexist alongside diversified, established companies.

The field is characterized by the coexistence within the broad ecosystem of a relatively small number of “core” companies whose primary activity is to develop quantum and quantum-enabling technologies, and a plethora of non-core organizations composed of large established companies, universities and PROs moving into the quantum space.

The broader ecosystem plays a pivotal role in both innovation and shaping labour demand, as most patents and quantum-related job postings originate from firms whose main business lies outside quantum technologies.

This underscores the relevance of large, established players operating outside the core, and the potential of firms developing specific quantum applications for their own use to drive the ecosystem’s growth.

The global quantum industrial ecosystem comprises 4,622 organizations, including 830 core companies whose activities are primarily or entirely focused on quantum technologies.

Core quantum firms are typically startups that rely heavily on early-stage investment and public funding. While these are poised to play a key role in translating deep tech research from universities into market applications, the broader ecosystem (including both public research organizations and large established companies) accounts for the majority of quantum activity.

These non-core organizations whose main area of activity lies outside quantum represent more than 80 percent of the quantum ecosystem, accounting for most quantum-related patents and jobs created.

Large established companies outside the core are likely to be well positioned for commercialization once quantum technologies mature, as they will be able to integrate quantum advancements into their existing operations without facing the scaling challenges typical of startups.

The relative importance of core quantum players varies significantly across countries, with the United States having a lower share of core companies in its ecosystem than most European countries and Canada.

These differences may signal how strongly national ecosystems will eventually rely on scaling up their startups to bring quantum technologies to market. However, this interpretation should be made with caution, as the broader ecosystem in each country includes not only large firms that are well positioned for commercialization but also public research organizations with different roles and incentives.

Canada has the fifth-ranked global quantum ecosystem in terms of number of companies, behind the U.S., China, Denmark and South Korea. However, Canada has the third-highest number of core quantum companies, according to the study.

Canada’s quantum ecosystem comprises 128 actors (companies, startups and universities. Of these, 44 percent are “core” quantum firms (mostly startups) primarily or entirely focused on quantum technologies – significantly higher than the share in the U.S. or China.

“This concentration suggests that successful commercialization will depend on securing sufficient early-stage investment and scale-up financing for Canada’s strong base of startups,” the study noted.

Between 2014 and 2024, Canada accounted for 10.1 percent of global core quantum firms funded and 8.5 percent of global funding channeled to such firms – the second-largest share after the U.S.

From 2021 to 2024, more than 40 percent of all investment into Canadian core quantum companies came from the government.

Between 2012 and 2022, the Government of Canada invested more than $1 billion in quantum research.

Canada’s National Quantum Strategy, launched in January 2023 with a $360-million investment over seven years, was followed by the federal government’s 2025 budget commitment in November 2025 of $334.3 million over five years to strengthen the quantum-technology ecosystem under a new Defence Industrial Strategy.

According to analysis of the OECD Fundstat database, Canada invests 0.71 percent of its total public R&D funding in quantum technologies.

A 2020 study commissioned by the National Research Council projected that by 2045, Canada’s quantum industry could be worth $139 billion and support over 200,000 jobs.

3. Geographical concentration but strong international competition.

The United States stands out as the leading player across all quantum domains in terms of firm entries, innovation output and total investment mobilized.

Other countries, including Canada and the United Kingdom with their strong revealed technological advantage (RTA) and dense cluster of core firms, but also China, Germany, Japan and Korea (which stands out particularly for quantum communication) with their broad industrial base and rich patent portfolios, also play major and complementary roles in the emerging global quantum landscape.

The U.S. accounts for the largest share of patenting activity in quantum, although its share has declined from 41 percent in 2015-2019 to 31 percent in 2020-2024.

Europe follows with an increasing share of IPFs, driven mainly by Germany, the United Kingdom, and France. Japan ranks as the second-largest national IPF filer, followed by China and Korea.

In terms of technological specialization, Canada has the highest RTA, followed by the U.S., Finland, the United States, France and the Netherlands.

4. High technological complexity and skill requirements.

The industry remains strongly science-driven, with highly educated founders and a workforce concentrated in technical and research roles.

The composition of job vacancies and the scientific character of quantum patenting both point to a continued focus on technology development rather than commercialization.

Founders of core quantum firms are more highly educated than the general population of non-quantum companies, with over half holding a PhD degree, versus just 10 percent for the general population. Employees of quantum firms also typically possess advanced scientific and engineering qualifications.

Job postings reveal that demand for quantum-related skills is heavily concentrated in a small number of technical and research-oriented occupations such as computer science (26 percent), science and research (25 percent) and education and training (10 percent).

By contrast, commercialization-oriented occupations such as business management, marketing and sales account for less than 10 percent of vacancies altogether.

The high educational level and strong research orientation of quantum founders and employees are reflected in the scientific character of quantum patenting. A significantly larger share of quantum patents cite non-patent literature (NPL) compared with patents in other technology fields. This indicates a close proximity between quantum innovation and scientific research, as most NPL citations refer to academic journals and other outputs from basic research.

Both the composition of quantum-related vacancies and the strong scientific focus of quantum patents suggests that the industry remains primarily oriented toward advancing the development of quantum technologies, although some firms outside core companies have started applying quantum technologies to specific activities, including optimization, cryptography and financial modelling.

5. Challenges to scaling-up and commercialization.

Recent data on firm entry, investment and job postings require cautious interpretation, but suggest that the pace of growth may have plateaued in recent years.

Trade data, albeit of limited in precision, indicate increasing concentration and dependencies in global supply chains for critical quantum components, for example, industrial diamonds, aluminium oxide and oxometallic salts.

Advancing toward commercialization (an increasing but still small focus in firms’ job postings) and establishing dominant technological paradigms are important steps for the ecosystem’s continued growth.

Overall, funding for quantum firms has expanded significantly over the past decade, reflecting growing investor interest in quantum technologies.

However, after a sharp rise peaking in 2021, total investment volumes have plateaued, with 2022 and 2023 recording declines before a partial recovery in 2024. This slowdown reflects a reduction in the average deal size rather than a fall in the number of firms funded, which has remained relatively stable.

6. R &D-focused public policies.

Governments have recognized that quantum technologies are still immature and that the ecosystem faces significant supply-chain vulnerabilities.

In response, they have pursued a combination of policy initiatives focused not only on growing levels of public R&D funding but also on strengthening industrial competitiveness, supporting technology adoption and helping firms navigate early experimentation and commercialization. “Public support will need to continue to expand beyond innovativeness to support the ecosystem’s continued growth,” the study noted.

The growing strategic importance of quantum technologies is evidenced by the steady adoption of national and supranational quantum strategies over the past decade, with more than 18 OECD countries having implemented such initiatives.

These strategies outline priorities for technological development, risk management, stakeholder engagement, and desired policy outcomes.

Consistent with the adoption of formal quantum strategies that emphasize investment in research and innovation, public funding for quantum R&D has risen sharply in recent years. This increase extends beyond countries with dedicated strategies, as many others have also committed significant resources to develop and deploy quantum technologies.

The share of quantum R&D funding relative to total R&D funding in the OECD Fundstat database (which covers Government Budget Allocation for R&D) increased steadily over the last decade, from approximately 0.4 percent in 2015 to 1.1 percent by 2023, with a peak of 1.2 percent in 2022.

In parallel, the share of quantum-related project awards grew proportionally, reaching nearly 0.8 percent of all funded projects by the end of the observed period.

Notably, the implied award size for quantum R&D peaked in 2023 and has consistently exceeded that of non-quantum R&D projects since 2018 (except in 2020, potentially due to shifting priorities during the COVID-19 pandemic). European Patent Office

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University of Waterloo researchers make breakthrough in copying quantum information

A team of researchers at the University of Waterloo has made a breakthrough in quantum computing that elegantly bypasses the fundamental “no cloning” problem.  

With quantum computing, information is stored and processed in tiny units – called qubits. Qubits can be stored, for example, in individual electrons, photons (particles of light), atoms, ions or tiny currents.  

Universities, industry and governments around the world are spending billions of dollars to perfect the technology for controlling these qubits so that they can be combined into large, reliable quantum computers.

This technology will have powerful applications, including in cybersecurity, materials science, medical research and optimization.  

The UWaterloo’s researchers breakthrough “will enable quantum cloud storage, like a quantum Dropbox, a quantum Google Drive or a quantum STACKIT, that safely and securely stores the same quantum information on multiple servers, as a redundant and encrypted backup,” said Dr. Achim Kempf, the Dieter Schwarz Chair in the Physics of Information and AI in the Department of Applied Mathematics at Waterloo. “It’s an important step in enabling the buildup of quantum computing infrastructure.” 

The team’s research, “Encrypted qubits can be cloned,” was published in Physical Review Letters.

“Quantum computing has tremendous potential, particularly for solving very hard problems, but it also poses unique challenges,” Kempf said.

“One of the most challenging issues facing quantum computing is called the no-cloning theorem, which states that quantum information cannot be copied, at least not directly. This is because of the delicate way in which quantum information is stored.”  

Kempf, who is also an associate at the Institute for Quantum Computing at Waterloo and an associate member of the Perimeter Institute, explained that quantum information works a bit like splitting a password. If you have the first half of the password and a friend has the second half, neither of you can use it alone – but if you put your two halves together, you acquire the valuable password.  

In a similar sense, qubits are special because they can share information in a way that grows as you combine them. A single qubit doesn’t hold much on its own, but when qubits are linked together, they can store a huge amount of information that only appears when they’re connected. This unique ability to hold shared information across multiple qubits is called quantum entanglement. 

Kempf explains that 100 qubits can share information in 2¹⁰⁰ ways simultaneously. This allows them to share so much entangled information that all of today’s classical computers could not store it. 

For all the potential of quantum computing, however, the no-cloning theorem limits how it can be applied. This is because, unlike in classical computing, where the copying of information – for sharing and for backups – is a very commonly used tool, there is no simple copy and paste in quantum computing.  

“We have found a workaround for the no-cloning theorem of quantum information,” explains Dr. Koji Yamaguchi, who co-discovered the new method with Kempf while working as a post-doctoral researcher in Kempf’s lab and who is now a research assistant professor at Kyushu University.  

“It turns out that if we encrypt the quantum information as we copy it, we can make as many copies as we like. This method is able to bypass the no-cloning theorem because after one picks and decrypts one of the encrypted copies, the decryption key automatically expires, that is the decryption key is a one-time-use key. But even a one-time key enables important applications, such as redundant and encrypted quantum cloud services. UWaterloo

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A quantum technology-based navigation system has completed a successful trial at sea, which has shown its potential to operate where other networks are unavailable. The HARLEQUIN system was tested on board the Galatea, a buoy and lighthouse maintenance vessel, and was shown to be capable of functioning in real-world conditions, outside the laboratory. It could be used to support more widely-used global navigation satellite systems when they are out of service or are less reliable. HARLEQUIN combines conventional elements of navigation systems with a cold-atom quantum accelerometer. At the heart of this quantum technology is a gMOT (grating magneto-optical trap) cold-atom source, developed over more than a decade through collaboration between the University of Strathclyde, and CPI TMD Technologies. The sea trials, led by CPI TMD, were carried out in partnership with the University of Strathclyde, Covesion and Trinity House. The trial was the first demonstration in the field of the gMOT based cold-atom technology, which has potential for other applications in future. Data from the trials will now inform a program of system upgrades aimed at improving performance and enhancing suitability for long-term shipboard operation. A second field trial is planned for the end of 2026.The project is funded by Innovate UK. University of Strathclyde Glasgow

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