Laid-off welders in Ontario sit idle, while oilsands employers in Alberta are chronically short-handed. High-skill jobs go unfilled, yet university graduates can’t find work. Canada has 1.33 million unemployed workers, yet busines...
Laid-off welders in Ontario sit idle, while oilsands employers in Alberta are chronically short-handed. High-skill jobs go unfilled, yet university graduates can’t find work. Canada has 1.33 million unemployed workers, yet business hired 338,000 temporary foreign workers last year, citing shortages in such low-skilled jobs as fast-food servers.Why? One reason cited has been called the skills mismatch or skills shortage, phrases that refer to the growing gap between the skills Canadian employers say they need and the ones job seekers can provide.Employers say it’s one of the toughest challenges they face; the federal government made it the centrepiece of its 2013 budget, with a training incentive grant for employers called the Canada Job Program.Labour groups, meanwhile, say the skills crisis has been overblown by employers looking for a way to keep a lid on wages and training costs.On all sides, there’s precious little agreement about what the skills shortage is, how to address it, and whether it even exists.There is, however, agreement on the need to address the growing problem of what one observer has called “People without Jobs: Jobs without People.”How pressing is the ‘skills gap’?Like other advanced economies, Canada has an aging population and a rapidly changing economy.As the first wave of baby boomers hits retirement age and younger people stay in school longer, the percentage of Canadians in their prime earnings years begins to shrink, taking with it Canada’s capacity to fund everything from pensions to education.John Manley, president and chief executive officer of the Canadian Council of Chief Executives, has called it a “demographic time bomb.”Critics say the impact of this demographic shift is being overstated, saying the warnings ignore the fact many baby boomers are already staying in the workforce longer, either because lifespans are lengthening or they need to recover retirement savings lost in the recent economic downturn.The federal government’s own data shows the overall labour market will remain “in balance” over the next decade, much like it is today.The Canadian Occupational Projection System predicts Canada will create 6.5 million new jobs and 6.3 million new job seekers — including recent graduates and immigrants — between 2011 and 2020.Retiring baby boomers will play a huge role in the creation of job openings, the study acknowledges, creating nearly two-thirds of the vacancies, while economic growth will account for the rest.At the same time, globalization has intensified the competition from lower-cost countries, creating a growing pool of jobless Canadians at the low-skilled end of the workforce, while technology changes the nature of work.“The new jobs require more education, more specific skills than the professions of the past,” said Benjamin Tal, deputy chief economist at CIBC World Markets. “And we are competing with China and Mexico. And we lose low-skilled employment to those countries.“The nature of those jobs is changing. So the nature of training and education is changing. The labour market is changing faster than our ability to adapt to it.”Business groups like the Canadian Chamber of Commerce say if nothing is done to address these challenges, we could have a shortfall of 1 million skilled workers by the end of the decade. That could mean lower productivity and longer waits for service. “A crisis that had been hidden by the recession has become fully apparent,” the chamber said in a policy paper outlining its top 10 public policy priorities.Labour groups, however, say the skills crisis has been overblown. “In very rare industries and very rare regions, labour markets are tight,” said Jim Stanford, economist with the Canadian Auto Workers. “But we should not for a minute accept at face value the claim that there