Aboriginal Hiring in Canada: A Practical Guide for Employers

Key Takeaways

• Indigenous GDI grew 74.7% between 2012 and 2022, outpacing all Canadians (Statistics Canada, 2025)
• Federal contractors with deals over $1M must implement employment equity, including Indigenous hiring
• Over 300 companies participate in the PAIR certification program through the CCIB
• The ISET Program funds Indigenous service delivery organizations that connect employers with trained workers

Why Should Your Company Hire Indigenous Workers?

Between 2012 and 2022, Indigenous gross domestic income in Canada grew by 74.7%, compared to 54% for the total population, according to Statistics Canada's Indigenous Peoples Economic Account (2025). That kind of growth signals a workforce gaining skills, education, and market presence at a pace that outstrips national averages. Employers who aren't paying attention are missing something.

Here's the practical reality. Canada's Indigenous population is young. The average age is 33.6 years, compared to 41.8 for non-Indigenous Canadians (2021 Census). That's a large, growing talent pool entering prime working years when many industries are struggling to fill positions.

And this isn't just about demographics. Nearly 1 in 22 jobs in Canada are now held by Indigenous people. Indigenous-held jobs grew 4.4% year-over-year in 2022 alone. These numbers reflect real workforce participation, not aspirational targets.

So what's the business case? It comes down to three things: access to a growing talent pool, eligibility for government contracts that require Indigenous participation, and stronger community relationships in regions where your business operates. Let's break each of these down.

What Is the Federal Contractors Program and Does It Apply to You?

The Federal Contractors Program (FCP), administered by the Labour Program under Employment and Social Development Canada, requires organizations doing business with the federal government to implement employment equity. According to ESDC, this applies to companies with 100 or more permanent employees that receive an initial federal goods or services contract valued at $1 million or more.

If your company bids on federal work, you need to know this program exists. Employment equity under the FCP covers four designated groups: women, Indigenous peoples, persons with disabilities, and visible minorities. You're expected to analyze your workforce, identify gaps, and create a plan to close them.

Separately, the federal government set a mandatory minimum target: 5% of the total value of federal contracts must be held by Indigenous businesses. This was phased in starting in 2022 with full implementation by 2025. Even if you're not an Indigenous-owned business, partnering with one or demonstrating Indigenous workforce participation strengthens your bid.

What does this mean for your hiring? If you want government work, showing genuine Indigenous employment and procurement efforts isn't optional. It's a competitive advantage baked into the evaluation process.

LMIA Considerations

When applying for a Labour Market Impact Assessment (LMIA) to hire temporary foreign workers, Service Canada assesses whether you've made reasonable efforts to recruit Canadians first. This includes demonstrating outreach to underrepresented groups like Indigenous job seekers. Posting on platforms like Indigenous job boards shows documented evidence of that effort.

It won't guarantee LMIA approval. But it removes one common reason for denial: insufficient domestic recruitment outreach.

What Is PAIR Certification and Why Does It Matter?

The Partnership Accreditation in Indigenous Relations (PAIR), formerly called Progressive Aboriginal Relations (PAR), is Canada's premier corporate certification for Indigenous engagement. Administered by the Canadian Council for Indigenous Business (CCIB), over 300 companies now participate in the program. In 2025, 33 organizations received Gold, Silver, or Bronze certification.

PAIR evaluates companies in four performance areas: Indigenous employment, business development, community relationships, and leadership. Certification happens at Bronze, Silver, or Gold levels after three years of reporting and independent verification by a jury.

Why bother? PAIR-certified companies use the certification logo in procurement bids, recruitment materials, and community engagement. It signals to Indigenous communities, government buyers, and prospective employees that your commitment isn't performative. It's been verified by a third party.

Companies like Stantec, BC Housing, and Defence Construction Canada have gone through the process. If your competitors hold PAIR certification and you don't, you're starting from behind in any bid that weighs Indigenous relations.

How to Get Started with PAIR

The entry point is PAIR Committed status, which requires one year of reporting. You can stay at this level for a maximum of three years before moving to the certified track. Annual membership through the CCIB is required. Start at ccib.ca to review eligibility.

How Do You Write Job Postings That Actually Attract Indigenous Candidates?

A 2024 survey found that 62.4% of Indigenous workers have experienced bias when applying for a job because of their Indigenous identity (HRD Canada). If your job posting feels exclusionary, even unintentionally, qualified candidates will skip it. The wording matters more than you might expect.

Here are specific things to do:

• State your commitment clearly. Add a line like: "We welcome and encourage applications from First Nations, Metis, and Inuit candidates." Put it near the top, not buried in fine print.
• List actual requirements, not wish lists. If the job genuinely needs a degree, say so. If experience matters more, say that instead. Inflated requirements filter out strong candidates who learned through community work or trades training.
• Mention specific support. If you offer relocation assistance, cultural leave, or flexible scheduling for ceremony attendance, say it in the posting. These details attract applicants who've been burned by vague promises before.
• Avoid jargon like "culture fit." This phrase often signals that a workplace hasn't examined its own biases. Use "values alignment" and describe what those values actually are.
• Include salary ranges. Pay transparency builds trust, especially when Indigenous workers earn an average of $33.37/hour compared to $37.77 for non-Indigenous workers in the same age bracket (Statistics Canada, 2024).

Where should you post? Indigenous Job Board Canada connects employers directly with First Nations, Metis, and Inuit job seekers across every province and territory. Posting here shows that you're making a targeted effort, which also helps with your FCP compliance documentation.

What Government Programs Help Fund Indigenous Hiring?

The Indigenous Skills and Employment Training (ISET) Program, funded by Employment and Social Development Canada, provides funding to Indigenous service delivery organizations that design and deliver job training across the country. These organizations operate under 10-year agreements with flexible terms, meaning they can match workers to your specific needs.

Through ISET, you can connect with local organizations that pre-screen and train candidates before they start. This reduces your onboarding costs and helps new hires succeed from day one.

Provincial Programs Worth Knowing

• Alberta's Aboriginal Training to Employment Program (ATEP): Supports partnerships between employers, First Nation bands, and Metis settlements to fund direct training costs like instructor fees, materials, and project coordination.
• BC's Training Tax Credit: Provides tax credits to employers who hire and train apprentices, with enhanced rates available for Indigenous apprentices in eligible trades.
• Ontario's Employment Ontario network: Connects employers with wage subsidies for hiring workers from underrepresented groups, including Indigenous job seekers.

Don't overlook the ISET service delivery organization directory on Canada.ca. Find the organization nearest your business location and reach out directly. They want to hear from employers.

How Do You Build a Culturally Aware Workplace?

Hiring Indigenous workers is one step. Keeping them is another. Statistics Canada (2024) reports that Indigenous people experience workplace discrimination at a rate of 15.2%, compared to 9.1% for non-Indigenous workers. Even more troubling, 56.2% of Indigenous employees have played down their background to fit in at work.

These numbers tell you that good intentions aren't enough. You need structures.

Practical Steps for Cultural Awareness

• Offer cultural awareness training. Not a one-hour webinar. Invest in training from Indigenous-led organizations like Indigenous Corporate Training Inc. or your regional Friendship Centre. Make it mandatory for managers, not just HR.
• Recognize ceremonial and cultural leave. Smudging, powwows, National Day for Truth and Reconciliation, and community events matter. Build flexibility into your leave policy.
• Create mentorship programs. Pair new Indigenous hires with senior staff who've completed cultural training. Mentorship reduces isolation and improves retention.
• Establish an Indigenous employee resource group. Even in small companies, giving Indigenous employees a voice in workplace decisions signals respect.
• Audit your physical space. Consider a land acknowledgment in your office. Display Indigenous art from local artists. Small signals add up.

What happens when you get this right? Retention improves. Recruitment gets easier through word of mouth. And your PAIR certification track becomes genuine rather than performative.

Are There Tax Benefits for Hiring Indigenous Workers?

Section 87 of the Indian Act provides a tax exemption for income earned by a Status Indian on a reserve. For employers, this means specific payroll considerations when a worker qualifies. The Canada Revenue Agency provides detailed guidance on calculating deductions for payments to First Nations employees, and the rules depend on where the employee lives, where they work, and the employer's location relative to reserve lands.

This isn't a direct "tax credit for hiring Indigenous workers," despite what some consultants claim. But it does affect payroll costs and can reduce the total compensation burden in certain scenarios. Check the CRA's Payments to First Nations Workers page for specifics.

The real financial incentives come from wage subsidies through ISET-funded organizations and provincial programs. These can cover a portion of wages during the first months of employment, making it cheaper to hire and train new workers while reducing risk.

What Should Your Next Steps Be?

Start with one action this week. Not a committee. Not a strategy document. One concrete step.

• Post a job on Indigenous Job Board Canada and include inclusive language in the posting
• Contact your nearest ISET service delivery organization and ask about pre-screened candidates
• Review your existing job postings for exclusionary language or inflated requirements
• Book cultural awareness training for your management team
• Start the PAIR Committed process if you're serious about long-term Indigenous relations

Browse current Indigenous job postings to see how other employers write inclusive listings. The gap between intention and action is often just one phone call or one job posting.

Frequently Asked Questions

Is it legal to prefer Indigenous candidates in hiring?

Yes. Section 16 of the Canadian Human Rights Act permits special programs designed to address disadvantages experienced by designated groups, including Indigenous peoples. The Employment Equity Act specifically names Indigenous peoples as a designated group. Programs designed to increase Indigenous representation are legally protected.

How much does it cost to post on an Indigenous job board?

Costs vary by platform. Indigenous Job Board Canada offers affordable posting packages for employers of all sizes, from single job listings to bulk packages for larger organizations. Check our pricing page for current rates.

Do I need to be PAIR-certified to bid on federal contracts?

No, PAIR certification isn't mandatory for federal procurement. However, the Federal Contractors Program requires employment equity implementation for contracts over $1 million. PAIR certification demonstrates your commitment and can strengthen your bid evaluation. Over 300 companies now participate, according to the CCIB (2025).

What's the difference between ISET and the old ASETS program?

The Indigenous Skills and Employment Training (ISET) Program replaced the Aboriginal Skills and Employment Training Strategy (ASETS) following consultations with Indigenous partners in 2016-2017. ISET offers 10-year agreements with greater flexibility, allowing Indigenous organizations to design programs tailored to their communities rather than following federal templates.

How do I find Indigenous candidates in remote areas?

Contact regional ISET service delivery organizations, post on Indigenous Job Board Canada, and connect with local band offices and Friendship Centres. Many remote communities have employment coordinators who can share postings directly with job seekers. About 25.4% of the Indigenous population is under 14, so youth employment programs are also worth considering (2021 Census).