Supply of skilled workers can't keep pace with demand
A report prepared by economists with the TD Bank Financial Group warns that Canada is not producing enough skilled workers to satisfy the growth in demand. It blames this shortfall on the fact that the supply of technologically skilled workers has not kept pace with the rapid growth of technology over the last decade, and on government cutbacks in health care and education spending, resulting in fewer highly trained doctors, nurses and teachers.
Canada’s Talent Deficit warns that if the demand for trained workers is not met, Canadians’ living standards may suffer.
The report recommends that the following measures be taken to meet the demand for skilled workers:
•Encourage skilled workers to work longer. Canada’s baby-boom generation – which totals one-third of Canada’s population – will start to reach retirement age in 2011. Given the trend towards early retirement, government and businesses will feel the effects of labour shortages even before that.
Corporations should encourage older employees to keep working by establishing flexible work arrangements and tailor-made compensation packages. The government may want to reconsider the issues of mandatory retirement age and the age at which people are entitled to receive public pensions.
•Increase education and training efforts. Raise the average skill set of Canadian workers through education and training.
Businesses must recognize the payback from investing in training, both on-the-job and in the classroom. Governments should strike partnerships with educational institutions and the private sector to encourage training.
•Change immigration policies to attract skilled workers. The federal government has already announced changes that will speed up the entry of highly skilled workers.
The federal government should increase its immigration rate target from 225,000 to 300,000 (one per cent of the population) per year as soon as possible.
•Federal and provincial governments should work together. The federal government will soon release its Agenda on Innovation White Paper, with provisions for increasing immigration and employee training. However, as education and training are provincial responsibilities, the provinces will have to co-operate.
In order to achieve the goal of increasing Canada’s supply of skilled workers, the two levels of government will have to work together.
Canada’s Talent Deficit warns that if the demand for trained workers is not met, Canadians’ living standards may suffer.
The report recommends that the following measures be taken to meet the demand for skilled workers:
•Encourage skilled workers to work longer. Canada’s baby-boom generation – which totals one-third of Canada’s population – will start to reach retirement age in 2011. Given the trend towards early retirement, government and businesses will feel the effects of labour shortages even before that.
Corporations should encourage older employees to keep working by establishing flexible work arrangements and tailor-made compensation packages. The government may want to reconsider the issues of mandatory retirement age and the age at which people are entitled to receive public pensions.
•Increase education and training efforts. Raise the average skill set of Canadian workers through education and training.
Businesses must recognize the payback from investing in training, both on-the-job and in the classroom. Governments should strike partnerships with educational institutions and the private sector to encourage training.
•Change immigration policies to attract skilled workers. The federal government has already announced changes that will speed up the entry of highly skilled workers.
The federal government should increase its immigration rate target from 225,000 to 300,000 (one per cent of the population) per year as soon as possible.
•Federal and provincial governments should work together. The federal government will soon release its Agenda on Innovation White Paper, with provisions for increasing immigration and employee training. However, as education and training are provincial responsibilities, the provinces will have to co-operate.
In order to achieve the goal of increasing Canada’s supply of skilled workers, the two levels of government will have to work together.
