Preparing for the Jobs of Tomorrow HRSDC Presentation to COAA Best Practices Conference - Martin Green, Director General Workplace Partnerships ...
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Preparing for the Jobs of Tomorrow
HRSDC Presentation to COAA
Best Practices Conference
Martin Green, Director General
Workplace Partnerships
Human Resources and Skills Development
Canada
May 18, 2010
Presentation Overview
1. Canadian labour market has been unstable
2 Canada
2. Canada’s
s key labour market challenges
3. Sectoral employment situation
4 What
4. Wh t can be
b done?
d ?
5. HRSDC
- quality: access to skilled workers
- efficiency: improved worker mobility
- quantity: increased participation
6 Moving
6. Mo ing forward:
for ard Key
Ke messages
2Canadian labour market has been unstable
Canada weathered recession better
Summer 2008 very tight than many other OECD countries
labour market – record low
unemployment (Aug 2008). Unemployment rate: Canada vs. US
– Canada: 6.1%
– Alberta: 3.5%
Recession– rapid rise in
unemployment (Aug 2009).
– Canada:
C d 8 8.7%
7%
– Alberta: 7.4%
Showing signs of recovery
– 2/3 off the
h llost jjobs
b
regained nationally. Source: Labour Force Survey
3Going forward, Canada will again face key labour market challenges
Underlying labour market dynamics likely to re-
emerge to challenge Canadian firms:
Globalisation
Increasing
g skills demands of the
Canadian labour market
Placing emphasis on skills, innovation,
productivity and value-chains
Knowledge-based Economy
Increasing skills requirements to meet Advanced degrees
Advanced degrees
employer demand. High-skills
70% of new jobs will require post
post-secondary
secondary Training,
education Trades and middle- apprenticeships, work
skills experience and matching
Job growth expected to continue in
skilled occupations and emerging sectors
Literacy, and
Literacy
(i.e. green economy). Essential skills numeracy skills
Demographic Change
Population ageing, low-birth
low birth rates
Greater diversity in workplace
4Population ageing is a significant challenge for all industries
Labour force growth can no longer be Labour Force Inflows and Outflows
relied on as an economic driver.
(1999- 2018)
Over the next 10 yyears: Inflow Outflow
Only 5.2
5 2 million
5.2 million will enter labour force. 600,000 entering labour
force…
But, due to retirements overall 500,000
labour force expected to grow by Projection
only 1.4 million (8%). 400,000
300,000
Over 60% of job openings (3.2
…but most will be
million) will be due to retirements. 200 000
200,000 needed to replace
those leaving
Immigration alone will not be 100,000
enough to increase supply of
skilled workers. 0
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Retirement wave will stress need for workplace training, maximum
participation and better job matching.
5Alberta’s construction job market is re-tightening
After 20 years off growth,
Aft th Alb
Alberta
t CSC expects 24,000 additional
construction employment dropped by 10% jobs in Albertan construction by 2018
in 2009.
Despite this, construction jobs across
C
Canada grew 7.3%3% (83
(83,400
00 jobs)) ffrom Employment (construction, new) - Total All Trades - Alberta
April 2009 to April 2010, outpacing other
sectors. 140000
However, concern exists over
130000
sustainability of construction recovery.
– Rising interest rates, planned expiry 120000
of home renovation tax credit and 110000
government fiscal constraints
constraints.
100000
Construction Sector Council
Alberta’s construction sector faces 90000
competition with other industries and 80000
regions for skilled workers
70000
CSC is helping through its innovative
forecasting model. 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
6Sectoral job shifts will require tailored responses
• Canadian Occupational Projection
• Employment in Alberta’s mining, oil and gas
System estimates strong job growth
extraction sectors fell by almost 15,000 (6.6%) from
2008 to 2009. in 2008-2018:
- Oil and gas extraction: 19%
• The petroleum
Th t l sector
t llostt jjobs
b iin conventional
ti l - Mining:
Mi i 14
14.2%
2%
production and services but employment is - All industries: 8.2%
expected to pick up strongly.
Sector councils are working in
various innovative ways to
address these challenges:
• Mining is developing an
attraction recruitment and
attraction,
retention strategy.
• Environment (ECO) is setting
up a national accreditation
process to increase mobility
mobility.
• Petroleum is building an
Educational Partnership
Framework to better align
industry needs with training
training.
Source: Petroleum Human Resources Council – Supply/Demand Analysis 2009-2020
7What can be done?
Governments,
G t education
d ti system,
t andd employers
l mustt workk together
t th tot
identify innovative ways to meet future job demands.
Tighter
g labour markets and higher
g skills needs mean that we need to focus:
– Labour quality – improve skills at all levels
– Labour market efficiency – reduce mobility barriers and reduce job
mismatch
– Labour quantity – ensure that all Canadians who want to work can work
Importance of federal and provincial/territorial governments working together.
– Transfers via Labour Market Development
p Agreements
g and Labour
Market Agreements to respond to local challenges.
• Alberta is projected to receive $151.1M (LMDA) and $77.9M (LMA) in
2010/11.
• Economic Action Plan (EAP) increased LMDA funding by $47 $47.5M
5M and
the Strategic Training and Transition Fund increased LMA funding to
$23.3M in 2010/11.
HRSDC also has many targeted programs.
8Quality: HRSDC programs help firms gain access to skilled workers
Focus on promoting apprenticeship skills.
– Apprenticeship Incentive Grant (AIG) and Apprenticeship
Completion Grant (ACG) support apprentices to undertake and
complete their training
training.
• In Alberta alone, 30,500 apprentices have received AIG since 2007 and
since July 2009, 3,500 have received ACG.
Work with employers through Sector Councils to
strategically plan for future labour market needs.
– Examples include employer-driven LMI, occupational standards,
curricula, HR planning, and incentives/tools for training
– Many councils
councils’ activities are related to construction: Construction
Sector Council, ECO, Petroleum Sector Council, Mining, and the
Canadian Apprenticeship Forum.
Promote strong skills base in the workplace through Office
of Literacy and Essential Skills.
– E.g. Bow Valley developing a comprehensive suite of literacy
y adults.
assessment tools to for low literacy
9Efficiency: HRSDC programs help firms by improving worker mobility
Foreign Credential Recognition is a key program to help immigrants get
their qualifications recognized by Canadian employers.
– Initial focus on regulated occupations (e.g. engineers)
– Includes targeted
g efforts in construction sector.
• e.g. Construction Industry Immigrant Employment Program (iSTEP) in British
Columbia, creating a bridge-to-work model for immigrants working in construction.
Agreement on Internal Trade (AIT) amended Chapter 7 implementation
The Red Seals program, covering 88% of registered apprentices in
Canada, is ensuring that skilled tradespeople can work in all 13 Canadian
jurisdictions.
– For the construction trades, there were 15,049 Red Seal endorsements
issued in 2009; 4,308 of these were issued in Alberta
Temporary Foreign Worker program is responsive to employers’ short-
term workforce needs:
– In the Alberta construction industry, over 10,500 TFW positions were
confirmed in 2008, falling to just under 3,000 in 2009.
10Quantity: HRSDC programs help firms access larger pools of workers
Many Canadians,
Canadians especially non-traditional
non traditional groups
groups, require assistance to become
job-ready.
Aboriginal programming is helping meet the needs of Canadian employers.
–Aboriginal Skills and Employment Partnership focuses on demand-driven projects
with Aboriginal communities,
communities e.g.
e g the "Trade Winds to Success" project in Alberta
Alberta.
–Aboriginal Skills and Training Strategic Investment Fund supports construction-
related projects, e.g. Building a Community project with the Lesser Slave Lake Indian
Regional Council.
Range of actions to reduce labour market barriers
– e.g. the Mining Human Resource Sector Council’s Physical Demand Analysis (PDA)
project will help the industry attract, recruit and retain workers in currently
underrepresented groups (i.e. people with disabilities, older workers and women).
Youth Employment Strategy helps transition youth into the labour market.
– Skills Link is helping at-risk youth enter labour market
– Canada Summer Jobs for students
Innovative best
best-practice:
practice: Industry-Education
Industry Education Partnerships to connect school
students with work in industry
– Partnerships of Sector Councils, P/Ts and local school boards to bring industry
influence to curricula, create co-op opportunities and provide students with
industry/post secondary education (PSE) recognized skills.
11Key messages
Ti
Tighter
ht labour
l b markets
k t will
ill b
be a persistent
i t t challenge:
h ll
– We need to raise skill levels, improve worker mobility and ensure
participation for all.
– Construction labour market challenges could have national impact
impact.
Partnerships are critical to improve labour market quantity, quality and
efficiency.
efficiency
Employers will need to be more pro-active:
– Major projects require HR strategies
strategies.
– Rewarding careers are key to planning sustainable workforces.
IInnovative
ti solutions
l ti – we needd tto look
l k within
ithi sectors
t as wellll as across
sectors to seek best practices.
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