Boosting participation rates of under-represented groups like Aboriginal people won't be enough
Increasing the representation of women, Aboriginals, mature workers, visible minorities and people with disabilities in the labour force will not be enough to stave off the coming labour shortage and the effect on productivity, according to a new report from the Conference Board of Canada.
While a net increase in the workforce from these under-represented groups would be welcome, the gains would not be very significant relative to the overall size of the labour force, stated the report Sustaining the Canadian Labour Force: Alternatives to Immigration.
For example, Aboriginal people represent a rapidly growing segment of Canada's population but in 2006, their labour force participation rate was at 63 per cent, below the national average of 67 per cent. If their participation rate was brought in line with the national average, that would eventually add another 46,000 workers to the Canadian workforce, stated the report.
While any increase helps, this would only amount to less than 0.2 per cent of the workforce, said the Conference Board.
“Bringing more members of currently under-represented groups into our workforce is important for the economy as a whole and to the social and economic prospects for those individuals and communities,” said Glen Hodgson, senior vice-president and chief economist, and author of the report.
“Nevertheless, an increased Aboriginal presence will not by itself resolve the coming decline in Canada’s overall potential economic growth.”
The best option, still, is to increase immigration levels from 250,000 a year to 350,000 by 2030, stated the report. Even then, significant growth in productivity will be required to grow Canada's potential output beyond 1.7 per cent annually by 2026, stated the Conference Board.
