To meet labour needs, Indigenous workers—especially youth—must fill the jobs created in the coming decades. Better collaboration among government, industry, and educational institutions can help Indigenous students prepare for energy sector careers.
The debate over fast-tracking resource projects is winding down, shifting the focus to whether Canada has the talent to fill the new jobs these projects create. This is particularly relevant in Canada’s oil and gas industry, which is experiencing significant public support for pipelines and LNG projects amid U.S. trade protectionism.
Canada’s oil and gas sector remains vital to the national economy and energy system. In 2023 alone, the country had 223 energy projects—worth $294 billion—that were either planned, under review, or approved. There were also 120 energy projects under construction worth $180 billion, leading to a combined total of $474 billion. Projects related to oil and gas accounted for $319 billion of this investment.
The sector faces a coming wave of retirements: 69,000 energy workers are eligible to retire between 2022 and 2035. Meanwhile, the expanding energy industry is projected to create between 41,640 and 46,500 direct jobs during the same period. If the sector replaces all retirements while meeting growing demand, net hiring requirements could reach between 110,340 and 116,000 jobs by 2035.
Industry leaders recognize the urgency. Mark Scholz, president and CEO of the Canadian Association of Energy Contractors, warned in 2022 that Canada will not be able to “supply our domestic market with responsible energy products” if it doesn’t recruit and build expertise in the industry. “We’re also not going to be able to support the growing energy demands and energy security issues that many of our key allies are looking for,” he said.
The oil and gas sector is a significant employer. It directly employs about 200,000 Canadians and supports 400,000 indirect jobs annually. For every $1 billion spent on capital projects, 5,400 indirect jobs are created. Careers in Energy’s National Labour Market Outlook, released in February 2024, identifies 81 separate occupations within the sector.
Indigenous communities increasingly seize opportunities in oil and gas. Many projects are near Indigenous communities and within traditional territories. Since 2009, Indigenous employment in the sector has climbed nearly 17 percent, with average annual wages rising over 39 percent, reaching $111,037 in 2021. Indigenous direct employment peaked at 10,934 jobs in 2014, dipped to 8,016 jobs in 2016, and then recovered to 9,683 in 2021. Indigenous partnerships in oil and gas projects have grown dramatically over the past decade, with many groups now seeking equity participation and co-ownership in pipelines and LNG projects.
Despite market volatility, these partnerships often serve as models for Indigenous economic reconciliation. An RBC study published in April 2025 found that oil and gas offer the greatest Indigenous equity opportunity—valued at $57.6 billion—far surpassing the $9.2 billion opportunity in critical minerals.
To meet labour needs, Indigenous workers—especially youth—must fill the jobs created in the coming decades. The Indigenous energy workforce is younger than the overall sector: about 37 percent of Indigenous energy workers are under 35, versus 28 percent of the sector overall. To tap into this young talent, governments and industry must provide training for Indigenous youth.
Of the Indigenous Peoples working in the energy sector, 35 percent work in trades, transport, and equipment operation, and 27 percent work in natural resources and production. Indigenous workers are also more likely to hold trades, operator, and labourer roles that typically require an apprenticeship or trades certificate or diploma, a high school diploma, or no certificate, diploma, or degree. Better collaboration among government, industry, and educational institutions can help Indigenous students prepare for energy sector careers.
Indigenous communities, often located in remote or northern areas, face barriers to higher education, including limited access, family responsibilities, and insufficient financial resources. The sector’s future will also demand higher technical skills as automation and artificial intelligence transform work. Yet Indigenous youth, the fastest-growing segment in Canada, remain underrepresented in science, technology, engineering, and mathematics (STEM) education and careers.
Canada and the provinces need a clear strategy to boost STEM participation in Indigenous communities. Industry and government must also prioritize long-term retention by fostering career growth and leadership opportunities for Indigenous workers. They must communicate that oil and gas can coexist with environmental sustainability. Misleading narratives that pit oil and gas against climate action obscure the industry’s progress in reducing emissions and environmental impact. Carbon capture projects are now routine, and energy production and environmental responsibility increasingly go hand in hand.
As Canada aims to become an energy powerhouse, young Indigenous workers will play a crucial role in this transition, helping the country meet new labour demands and advance environmental and economic goals.
Originally published by The Hill Times: https://www.hilltimes.com/story/2025/09/01/how-the-indigenous-workforce-can-stem-the-tide-for-the-coming-energy-tsunami/471254/