Federal budget includes measures to encourage modern skills, retraining

OTTAWA - The federal government is enlisting the provinces and territories to help turn Canada's workforce into a cutting-edge, 21st-century engine of economic growth.

The budget tabled today by Finance Minister Bill Morneau spells out part of the government's strategy for a more innovative, tech-fuelled economy, and ensuring traditional workers don't get left behind.

It includes $1.8 billion over six years to expand labour market development agreements -- arrangements with the provinces and territories that help to finance a range of programs, including skills training.

The budget also commits $287.2 million over three years for a pilot project designed to test how to make it easier for adults for qualify for Canada student loans and grants.

It includes $132.4 million over four years, beginning in 2018-19, to allow unemployed Canadians the chance to pursue training while receiving employment insurance.

Morneau says Canada is well-positioned to build one of the smartest and most creative workforces in the world, thanks in part to high rates of post-secondary education.