When economic turmoil hits, Canadians rely on the social sector. While deeper impacts of the trade war loom, data from the 211 services – a national social services navigation helpline – already show a trend of increased need for social services related to employment, income support and mental health. In the face of a steep uptick in demand, the value of investing in the sector is undeniable.
Against the volatile backdrop of tariffs and structural savings targets of the Comprehensive Expenditure Review, Prime Minister Carney and his Cabinet begin work on their first budget. As CanadaHelps reports demand for service is already at an all-time high – with 57% of charities unable to meet this staggering demand – Canada’s social sector is ready to demonstrate the indispensable role that community services play in strengthening our communities – and our economy.
The charitable and non-profit sector in Canada is a social infrastructure that brings down costs for Canadians and helps them get ahead. The sector is an under-recognized economic engine that employs 2.4 million people and contributes 8.9% or $211 billion to Canada’s GDP. The community services subsector employs over 620,000 people and provides essential services to more than 8 million people across Canada.
Research indicates that investments in Canada’s social sector present strong value for our money: every $1 invested in social services returns $2-6 in economic and social value.
Community services are not “nice to haves” – they are essential infrastructure embedded in our communities that provide care, build vital social connections, address affordability challenges and enable equitable economic participation. The sector delivers on core government priorities, including employment and upskilling for workers; housing construction and homelessness prevention; childcare and services for youth, seniors and people with disabilities; mental health and counselling; and support for survivors of gender-based violence. Increasingly, the sector is on the front lines of emergencies like wildfires, playing a critical role in community resilience, response, and recovery from disasters that too many of us are now familiar with.
The sector plays this outsized role despite decades of precarious funding and while experiencing what Carleton University’s Charity Insights Canada Project calls “a trilemma.” The first of the three challenges is that demand for services exceeds capacity, and the gap is widening. Second, the sector faces ongoing financial instability due to unpredictable and diminishing funding while the costs of programs and demand for services increase. Thirdly, the non-profit sector is facing a workforce crisis with organizations struggling to recruit and retain workers, unable to invest in the longevity of their organizations.
This trilemma threatens Canada’s social safety net, and the status quo is unsustainable for the workers providing care day in and day out. The Future of Good’s Changemaker Wellbeing Index revealed that burnout is rampant in care and community work. While 1 in 3 non-profit workers say they are ready to quit, 36 per cent say they “often or always” feel burnt out or exhausted. These workers hold our social systems together—and when they falter, we all pay the price. When nonprofits are forced to limit or discontinue services, we all feel the gaps, as we seek care for aging parents, arrange after-school programs for our children, or look for mental health support.
As we collectively brace for greater economic impact from tariffs and work to bolster Canada’s economy, we must invest in the services that protect our communities. That means adopting federal and government funding models that promote predictable, longer-term funding that enable community services to focus on mission delivery and innovation. It means making strategic capital investments in community service hubs that house organizations and drive efficiency and stability in delivering community services. It means promoting community benefit agreements that connect Canada’s major economic investments to local employment opportunities and benefits. It means investing to strengthen the workforce we depend on to deliver cost-effective services to people across Canada.
An investment in the community sector is an investment in the long-term well-being of our communities. To foster a resilient, productive Canadian economy that works for people in Canada, we must invest in the social infrastructure that supports essential community services that return value to the economy and to communities, and we need to do it now.
