OTTAWA – Filling empty jobs with well-trained Canadians is a top priority for Finance Minister Jim Flaherty in Thursday’s budget, as the federal government tries to solve the country’s labour shortages.
“There are too many jobs that go unfilled in Canada because employers can’t find workers with the right skills,” Flaherty wrote in a letter to his caucus on Tuesday.
Flaherty said training in Canada doesn’t match the skills employers need and pledged to do better.
Here’s a look a closer look at one of the issues sure to be a hot topic on Thursday afternoon.
What Flaherty wants to tackle: While numbers vary by sector, 25 per cent of firms told the Bank of Canada they face a labour shortage – a number higher than in 2009 and 2010, but lower than the 30 per cent who reported a shortage in 2008.
While there are nearly six unemployed people for every one of the 221,000 job vacancies in Canada, many employers say they can’t find the employees they need.
The problem is that those job-seekers may not be properly trained and they may not be in the right place to fill the gaps.
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Not all sectors of the economy are suffering from a skills gap, statistics suggest that over the next decade there will be shortages of heavy machine operators, machinists, electricians, power line workers, mechanics, physical scientists, broadcast technicians, doctors, dentists and veterinarians.
The Construction Sector Council estimates it will need 319,000 workers over the next 10 years. The council believes 163,000 people will graduate into the sector, but that leaves 156,000 jobs unfilled.
The gaps are only expected to grow as baby boomers retire.
What’s being done now: Since 2008, the federal government has provided provinces with $500 million each year to help match under- or unemployed workers to jobs. Another $2 billion is transferred to provinces to train people who qualify for employment insurance.
The federal government has also tried to address the changing demographics of the labour force by changing rules around temporary foreign workers, better recognizing the credentials of immigrants, and investing some money in youth employment programs.
Why hasn’t it worked: Despite the money, the gap isn’t closing fast enough for a variety of reasons. Students still aren’t enrolling in trades as fast as the jobs are appearing. Not all apprentices are getting the support they need to complete the program. Trainers say they don’t have enough information about where the gaps are.
“Canada has not been getting the results it needs. That’s the bottom line,” said Warren Everson of the Canadian Chamber of Commerce. “It doesn’t matter whose fault it was.”
What do people want Flaherty to change: There are a wide range of suggestions from employers, economists and politicians, but many have said to start with more information about were the future jobs lie. Everson said better connections between educators and future employers would help on that front.
When it comes to skilled trades, the language has to change, according to Chris Smillie of Canada’s Building Trades Union.
“Traditionally, construction has been viewed as a second or last chance occupation,” he said. “The one per cent of tomorrow for Canada will be people in the skilled trades.”
Smillie also would provide more incentives to get people to move for a job, hire an apprentice or sign up for a skilled trade.
“If I were finance minister I would directly incent apprentices, directly incent companies and directly incent the purchasers of construction – big oil companies, energy companies, etc. These people have the opportunity to shape who comes onto their job sites,” he said.
With a file from The Canadian Press
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