The federal government will be pouring hundreds of millions of dollars into job creation initiatives as many Canadians continue to struggle in their efforts to find work. The focus of the funding is on innovative, knowledge-based sectors of the economy.

This year’s federal budget includes a variety of measures intended to protect Canadian workers from the effects of the global recession — and measures to create a more highly skilled, knowledgeable and creative workforce.

“We are supporting innovation in our colleges and universities, research hospitals and other research institutions,” said Finance Minister Jim Flaherty in his budget speech on Thursday. “These investments will help create clusters of great new jobs on the frontiers of knowledge.”

Specifically, $613 million over two years is earmarked for initiatives to “create economic growth and jobs through innovation.” This includes funding for research in such areas as nuclear and particle physics, genomics and medical isotopes, and $45 million over five years to establish a post-doctoral fellowship program.

These types of programs will help attract international talent and research leaders from around the world, the budget says.

A number of other job creation measures in the budget pertain specifically to Canada’s youth — a demographic that has been hit particularly hard by the recession, with the unemployment rate among students reaching record highs.

“Young workers have been significantly affected by the recession,” the budget acknowledges.

The budget includes $60 million to assist more young Canadians while the labour market recovers. An increase in funding of $30 million will support youth internships, and $10 million in new funding will support young entrepreneurs through the Canadian Youth Business Foundation.

In terms of protecting jobs, the budget includes a proposal to extend the work-sharing initiative introduced in last year’s Economic Action Plan — an initiative that has already benefited more than 160,000 Canadians, according to the government. Thursday’s budget proposes to extend work-sharing agreements by an additional 26 weeks, to a maximum of 78 weeks, and to continue to provide greater flexibility in the qualifying criteria and streamlining processes for employers.

The program helps prevent layoffs by offering Employment Insurance income benefits to qualifying workers willing to work a reduced work week while their employers recover from the economic recession.

IE