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Workforce Requirements Recession and Recovery

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Workforce Requirements Recession and Recovery workforce requirements recession and recovery setting targets and working together to achieve them www.workforcecoalition.ca THE VOICE OF THE AUTOMOTIVE ORIGINAL EQUIPMENT SUPPLIERS IN CANADA Ontario Environment Industry Association(ONEIA) www.oneia.ca ONTARIO TOURISM COUNCIL An Ontario knowledge and skills strategy In 2007, business, education and labour leaders came together want to gain qualifications to ensure they can survive in to form Ontario’s Workforce Shortage Coalition, dedicated to a rapidly changing work environment raising awareness of the emerging skills shortage challenge. The coalition represents more than100,000 employers and • Extend the Apprenticeship Training Tax Credit to all millions of employees. Ontario apprenticeship programs. A Conference Board of Canada report prepared for the coalition Strategies to supply the workforce needed for predicted Ontario will face a shortage of more than 360,000 sustained growth employees by 2025. Employers will need more highly skilled workers as technology changes and competition for customers Looking to the longer term, the first barrier to a robust recovery grows tougher. As well, baby boomers are retiring and the will be the lack of skilled workers available to small business. number of young workers is about to plummet. For example, shortages of tradespersons would reduce the capability of small and medium enterprises (SMEs), inhibit The coalition has now consulted with 700 individuals and the revitalization of the manufacturing and resource sectors, organizations representing business, labour, education and and discourage value-added tourism. It would also jeopardize government from across Ontario. Its recommendations are government priorities such as infrastructure renewal and based on these consultations, recent research, and the views environmental protection. of members of the constituent organizations. With more skilled workers to draw on, Ontario can attract Immediate action to get through the recession investment and avoid skills bottlenecks that limit potential and transfer opportunity and momentum to our competitors. In a recession, workers and employers share similar concerns Producing the skilled people employers need will also about business survival and job retention. It is harder for firms help address poverty: many adults without postsecondary to retain the skilled workers they will need until the recovery credentials, especially from under-represented groups, are comes. It is essential that governments take extraordinary not working. steps to: If Ontario is to have a solid recovery and sustained growth, • Provide the supportive business climate (lower taxes and action must be taken now to ensure there is an attractive elimination of unnecessary regulation) that employers business climate, strategic infrastructure, and an effective need to survive the recession and to maximize growth skills strategy. The Ontario government’s Reaching Higher during the recovery plan, expansion of literacy and apprenticeship programs, and increased Co-op and Apprenticeship Tax Credits demonstrate • Make quick changes to postsecondary and adult a strong commitment to supplying the skilled workers Ontario retraining programs to accommodate an increased needs for recovery and sustained growth. This report describes number of students who cannot find jobs, adults who the key elements central to an Ontario knowledge and skills have lost their jobs and need re-skilling, and adults who strategy for the next decade. 600 Projected shortage is 500 364,000 in 2025 400 300 200 100 0 -100 -200 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Source: Conference Board of Canada, 2007. 1 What we heard “ There were 100,000 jobs going begging A strong consensus for action in Ontario last year, and they tend to be more highly skilled jobs.” “ As our country braces for more economic uncertainty, we can choose to invest in a skilled Premier Dalton McGuinty, 2008. workforce that can compete with the best the world has to offer, or we can continue to turn our back on the problem and force employers to fight among themselves for an ever- “ Changing workplace demographics more scarce resource.” and the current economic environment Jayson Myers, president, Canadian Manufacturers & Exporters, 2008. have put increased demands on the supply of skilled workers. Clearly, To succeed in a tougher national and global environment, with an aging population, Canada must work towards refining Ontario requires a renewed balance of responsibility and more effective co-operation the delivery mechanisms for bridging between government, employers, labour and educators. There is a consensus that and training programs as well as many challenges are beyond the capability of unco-ordinated players acting alone. improved labour mobility and better We need a proactive skills strategy that co-ordinates government and partner information networks.” activities. It will: Anthony Ariganello, president and CEO of CGA-Canada, 2008. • Reaffirm that Ontario’s competitive advantage and success in attracting investment depends on an attractive business climate and workforce skills that “ In order for Canada to attract and exceed those available to its competitors in Canada and globally develop talent, governments should take steps to create the best educated, highest • Continue shifting from short-term “take any job” policies to programs such as skilled and most flexible workforce in the Second Career Strategy, which create meaningful, long-term attachment the world.” to the workforce based on better information about skills requirements within Competition Policy Review Panel, individual sectors Compete to Win, June 2008. • Recognize the challenges posed by the predominance of ‘non-standard’ jobs (temporary, part time, self-employed) for employee training and re-skilling, and “ Other countries such as United States, its impact on smaller employers, who hire 94 per cent of young workers United Kingdom and Australia have been proactive in their development of • Integrate skills policies with poverty reduction strategies for unskilled and strategic educational and developmental under-represented groups. initiatives and partnerships to advance and develop capabilities in critical technological disciplines.” Canadian Aerospace Human Resources Strategy, 2008. “ The importance of a strong training system to competitiveness was underscored by a recent report by Colleges Ontario and a broad coalition of business associations, unions and students. The report stated that Ontario must make a concerted effort to address potential skills shortages as competitive pressures grow and a wave of retirements begins.” Ontario Economic Outlook and Fiscal Review, 2007. 2 The challenge for employers Ontario’s strong emphasis on skills in past decades has paid Examples of employer actions off; job growth since 1990 has been higher in Ontario than in the U.S., and it is closely linked with Ontario’s rapid increase in • The Canadian Manufacturers & Exporters program, postsecondary graduates. “Business Takes Action” (BTA), calls upon employers to “take action” by hiring persons with disabilities. This Ontario employers now have a big skills advantage over their is the first program of its kind intended to advocate in U.S. competitors. Most industries have essentially the same the interest of employers, and was developed entirely number of university graduates, but far more college graduates, with feedback from its founding employer members. with an education designed to meet employer requirements. In exchange for the employers’ commitment, BTA can help As a result, Ontario’s private sector includes a higher share of employers source, hire and accommodate skilled persons high-skill industries than the U.S., and a higher proportion of with disabilities, which is critical to the many employers the overall Ontario population is working. facing skill shortages. To help business get through the recession and emerge with • An Ontario Mining Association video, Mining New the strength to successfully compete in the recovery, the Opportunities, is intended to help First Nations residents coalition supports the government’s decisions to cut corporate gain a better understanding of the mineral industry and taxes and reduce business regulations by 25 per cent. the employment and entrepreneurial opportunities it offers. The film was created by Big Soul, an aboriginal- At the same time, employers will need to recognize that they owned and operated television production house. It is will be facing a different reality within a few years; one of produced in Cree, Oji-Cree, Ojibway, English and French. chronic labour shortages that will require them to: • The Alliance of Ontario Food Processors is looking • Develop a clear picture of their longer-term employment to attract new employees by enhancing the image needs, to ensure they have the right skills when business of the sector. opportunities arise • Look to aboriginals, persons with disabilities, immigrants, Ontario job and skills growth exceeds U.S. (1990-2005) and women in non-traditional careers for skilled employees and managers 25% U.S. Ontario 20% 23% 15% • Build a training culture by keeping employees up to date 16% 15% 14% 10% on technology and encouraging employees to attend 10% 5% relevant educational courses through flexible workforce 0% 4% 0% hours, recognition and rewards Total No PSE College Degree -5% -8% -10% • Strengthen public awareness of skills shortages
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