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Older Workers in Canada: Success with Local Strategies

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Older Workers in Canada: Success with Local Strategies Older Workers in Canada: Success with Local Strategies Ramona McDowell PES and effective employment of older workers Sofia, Bulgaria November 17-18, 2015 Canada at a Glance . 35.8 million Canadians, 86% in Ontario, Quebec, Alberta and British Columbia . Over 20% born outside Canada . 1% year-over-year population growth highest among G7 countries . 380,000 births/year . 250,000 immigrants/year . Average age 39.9 years . Participation rate 65.9% . Recent weakness in resource prices slowing job growth . Nationally, unemployment close to OECD harmonized rate but with significant regional variation (5.7% to 11.5%) 2 Canada’s comprehensive employment supports… TEMPORARY INCOME SUPPORT . A broad-based national EI Part I employment system of passive Employment Insurance and active supports meets the needs of most job seekers TRAINING AND EMPLOYMENT ASSISTANCE . Active measures support Canada Job EI Part II Labour Market Fund national policy goals with a Labour Market Agreements for Agreements decentralized approach; flexible Development Persons with Agreements Disabilities to meet regional and local needs TARGETED INITATIVES FOR AT-RISK GROUPS – Funded by federal transfers Aboriginal Skills to provinces and territories Youth and Employment Targeted Employment Training Strategy/ Initiative for Additional targeted measures Strategy Skills and Older Workers . Partnership Fund designed to meet the additional Enabling Fund needs of specific at-risk groups Foreign Opportunities for Official Credential Fund for Person Language Recognition with Disabilities Minority Communities 3 …emphasize quick returns to work… . Employment Insurance claimants are aware of their job search Employment Insurance beneficiaries responsibilities, have incentives to accept available work . Targeted investments in training to equip individuals with the skills to fill evolving job opportunities . Labour market information to support efficient skills matching between job seekers and employers . Support for relocation to areas where jobs exist Source: Statistics Canada CANSIM table 276-0022 4 …recognizing local and regional diversity . Formal structures support consultation and information sharing between levels of Horizontal and government, stakeholders integrated approaches are recognized as being . Employers help align skills the most effective way training and development to develop a skilled, with labour market needs mobile and productive . Communities play a lead workforce role in delivering programs promoting skills, quality job creation, and local economic development 5 Going forward we need to do more Mid-term 5.8 million job openings between 2013- 2022 Long-term Short-term growth in hours annualized worked, average growth 2.5%-3% 0.5% per year in 2016 2017-2050 Shortage of workers and skill sets 6 As the Canadian population ages… . 2008 marked a record high, nearly 70%, of the population was of working age (15-64) . As of July 2015, for the first time Canadians aged 65+ outnumber children 0-14 . Significant regional dimension to aging; highest proportion of 65+ in New Brunswick (19%), lowest in Nunavut (4%) . Population aging could increase regional disparities within Canada 7 …older workers are increasingly important . Canadians aged 55-64 (the age when people typically begin to leave the labour market) now represent a larger share of the workforce than those aged 15-24 (when Canadians typically enter the labour market) . The labour force participation rate of older workers has increased by over 8% since 2000; they work later into life compared to previous generations – Improved health and life expectancy – Higher levels of education – Later labour force entry, with more years spent in school – Desire for social interaction – Financial reasons . Older Canadians are particularly valuable given the knowledge and experience they bring to the workforce 8 Most, but not all, older workers do well + Participation rate increased . Relatively higher concentrations from 51% to 65%, between in declining sectors and in rural 2000-2013 areas of Atlantic Canada . Older recent immigrants have + Older women experienced the considerably higher most significant gains in unemployment rates than those participation with an increase who have resided in Canada for from 41% to 60% 10+ years or are Canadian-born . Those with less than a high + Unemployment rates of older school education have higher adults are consistently below unemployment rates the Canadian average . Duration of unemployment increases with age 9 Employment supports for older workers Most older workers are served through broad-based programs, labour market information (job matching) and mobility supports . To enter or re-enter the workforce – Employment counselling support; Canada Job Grant for training to obtain an available job . To stay in the workforce – Employer Sponsored Training; Canada Job Grant for training to obtain a better job; Supports such as literacy and essential skills, job readiness training, with priority given to low-skilled individuals . To find a new job – Temporary income support; Training, work skills and experience; Employment counselling support 10 Additional targeted supports for older workers Industry & Labour Older Workers Labour Adjustment Program for Older Targeted Initiative Adjustment Pilot Projects Benefit Program Worker Adjustment for Older Workers Program Initiative 1997 1999 2006 1972 1982 1984 1987 Building on research and lessons from previous programs, shifting From passive income support To active employment measures . Baby boomers offered an ample . Decline in rate of labour force growth labour supply . On average, displaced older workers . Period of relatively high staying unemployed longer than unemployment younger counterparts; adjustment pressures on traditional sectors . Early retirement programs had social objective . Evidence that workers no longer view retirement as a fixed point in time, but a gradual transition 11 Targeted Initiative for Older Workers (TIOW) Supports older workers in reintegrating into the workforce, or in increasing their employability, where the most innovative solutions are needed – in small, vulnerable communities Eligible • Unemployed workers living in eligible communities Participants • Normally aged 55-64, but younger (50-54) or older (64+) may participate Eligible • Community population less than 250,000 • Vulnerable labour market due to: high unemployment; significant Communities downsizing/closure(s); and/or unfulfilled employer demand/skills mismatches • Must offer employment assistance activities (e.g. résumé, interview Project techniques) plus at least two other employability improvement activities Activities • Must include a group-based component in a classroom setting (minimum 25 hours/week) • The Government of Canada funds up to 70%, while each province/territory funds a minimum of 30% of total program costs Funding • Where provincial/territorial legislation allows, participants are offered income support (allowances, wages, wage subsidy to employer) 12 TIOW supports local approaches to local challenges Communities customize Assessment project activities to clients’ e.g. prior learning, needs, and to take vocational Essential interest Skills advantage of opportunities Post-Project Follow-up e.g. reading, numeracy, computers . High intensity of support . Average duration 12 Specific TIOW Project Skills for weeks (range 6-24 weeks) Employment Must include job search skills current or Supports and minimum of two other anticipated activities demands . Participants receive income support (allowances, wages, or Community or Employer wage subsidies) Mentorship Based Work Experience Preparation . Often embedded in for Self- Employment regional economic development strategies 13 Well received by communities and employers . As of March 2015, over 35,000 participants served through 800 projects . Evidence shows that projects support local community structural adjustment – Older worker training often tailored to emerging sector needs – 75% found employment in their local area . Majority of employers retain participants after work placement . Most employers would participate in TIOW again – Wage subsidies are a key incentive – Appreciate ability to fill gaps with experienced workers . Recognized as international best practice – Featured in G20 and OECD best practice publications/materials 14 Identifying and sharing good practices . Innovative and successful models for TIOW projects are shared by provinces and territories and the Government of Canada – Quarterly conference calls – Yearly workshops – “Best Practices Compendium” with input from all provinces and territories . Results tracking – Information on participants at start and end of a project is tracked and analyzed in a central database – Formative and summative evaluations of the Program 15 TIOW Best Practice - working with local employers . Facilitating linkages with local employers and reinforcing the benefits and advantages of hiring older workers as part of a comprehensive, adaptable, responsible human resource strategy – Ensuring potential employers and participants were well matched in Manitoba – Improving awareness among local employers of the valuable role of older workers in Nova Scotia and Alberta – Tailoring training to meet unique employer needs in Quebec 16 Example – meeting employers’ changing needs Antoine-Labelle Regional Municipality Quebec Unemployment 12.9% Population 35,000 Project Information Project Name Projet O’Bouleau Duration 17 weeks Participants
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