How to Hire Unemployed and Entry-Level Workers Using Wage Subsidies

How to Hire Unemployed and Entry-Level Workers Using Wage Subsidies

Hiring new staff can be costly. Small and mid-sized Canadian businesses face expenses like wages, training, and onboarding risks. Wage subsidy programs help by covering part of an employee’s wages. This support makes it easier to grow your team without putting pressure on your cash flow.

In Atlantic Canada, the START Program in Nova Scotia is a practical choice. There are also federal programs for early-career hires, depending on your business type and the role you want to fill.

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How Wage Subsidies Work for Entry-Level and Unemployed Workers

Wage subsidies are government-funded programs. They share the cost of wages for a set time. These programs aim to reduce hiring risk and help unemployed people or those early in their careers return to work.

Most wage subsidy programs follow a similar process:

• You must apply before hiring the employee.
• The employee needs to meet eligibility rules. Usually, this means they are unemployed or a recent graduate.
• You pay wages as usual.
• The program reimburses or finances part of those wages over time.

Some subsidies are non-repayable grants. Others, like the START Program, offer repayable financing. This means you get a low-cost loan that is linked to hiring and employment outcomes.

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START Program: Hiring Unemployed Workers in Nova Scotia

The START Program is run by Employment Nova Scotia. It helps employers hire unemployed Nova Scotians.

Who the START Program is for

To qualify, you must:

• Be a small or medium-sized business, not-for-profit, or social enterprise.
• Operate with a physical location in Nova Scotia.
• Hire an employee who will work in Nova Scotia.
• Apply before the employee is hired.

Employee eligibility

The person you hire must:

• Be unemployed at the time of hire.
• Be a resident of Nova Scotia.
• Be a Canadian citizen, permanent resident, or eligible international graduate.

How the funding works

• The START Program gives repayable wage financing, not a non-repayable grant.
• Funding amounts are negotiated and depend on your agreement with the program.
• Repayment terms can vary. Confirm details during the application process.

This structure is helpful if you need hiring support now but expect steady revenue after the employee is trained.

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Federal Option: NRC IRAP Youth Employment Program

The NRC IRAP Youth Employment Program is a federal option for businesses hiring entry-level talent in technical or innovation-focused roles.

Eligible employers must be:

• Incorporated, for-profit SMEs.
• Have 500 or fewer full-time equivalent employees.
• Be willing to work with NRC IRAP to build innovation capacity.

Supported roles include:

• Research and development.
• Engineering and technical roles.
• Multimedia and technology development.
• Market analysis and science-based business development.

This program is best for businesses developing new products or processes. It is not meant for general retail or service roles.

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How to Choose the Right Wage Subsidy for Your Business

Before applying, ask yourself:

• Is the person I want to hire currently unemployed or a recent graduate?
• Do I need short-term wage relief or longer-term financing?
• Am I hiring for a general role or a technical/innovation role?
• Can I manage repayable assistance, or do I need non-repayable support?

Tools like GrantHub’s eligibility matcher let you filter wage subsidy programs by province, role type, and worker profile. This helps you find programs that fit your needs quickly.

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Common Mistakes to Avoid

Applying after hiring

Most wage subsidies, including the START Program, require approval before the employee’s start date. If you hire first, you may become ineligible.

Assuming all wage subsidies are grants

Some programs offer repayable financing. Always check repayment terms and how they affect your cash flow.

Hiring the wrong worker profile

If the employee is not officially unemployed or does not meet residency rules, your application may be rejected.

Ignoring reporting requirements

Programs often need progress updates or payroll records. Missing reports can delay funding or cause repayment issues.

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Frequently Asked Questions

Q: Is the START Program a grant or a loan?
The START Program provides repayable financing, not a non-repayable grant. Repayment terms are set in your agreement.

Q: Do I have to apply before hiring someone?
Yes. Applications must be approved before the employee is hired to be eligible.

Q: Can I use wage subsidies for entry-level roles?
Yes. Many programs support entry-level and early-career positions, especially when the worker is unemployed or a recent graduate.

Q: Are international graduates eligible?
Eligible international graduates who are unemployed and living in Nova Scotia may qualify for the START Program.

Q: Are wage subsidies taxable?
Tax treatment depends on whether funding is repayable or non-repayable. Check with your accountant for details.

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Next Steps

Wage subsidies can reduce hiring risk and help you bring on unemployed or entry-level workers sooner. The important thing is to match the right program to your location, role, and worker profile.

GrantHub tracks thousands of active grant and wage subsidy programs across Canada. This includes provincial and federal hiring supports, so you can see which options fit your business.

See also:

• Federal vs Provincial Wage Subsidy Programs in Canada: Key Differences
• Common Mistakes Employers Make When Applying for Wage Subsidy Grants
• How to Use Wage Subsidy and Student Hiring Programs to Reduce Staffing Costs