Skill Shortages: Leaders’ Views Presented to NATCON January 20, 2003 Canadian Labour and Business...

Skill Shortages:Leaders’ Views

Presented to NATCON

January 20, 2003

Canadian Labour and Business Centre

October, 2002Canadian Labour and Business Centre www.clbc.ca

The Canadian Labour and Business Centre

Seeks to improve dialogue between business, labour, government and education

Multipartite Board Research / Consultation focus on labour

market, skills and skill shortages Operates at international, national, sectoral

and workplace levels


Importance of the Skills Issue

Underlying trends in Canada’s workforce are heightening the skill shortage issue: – Aging population– Trends to earlier retirement – Slower labour force growth– Competition for skills takes on international

dimension


Labour Force Growth Drops Below One Percent

Average Annual Growth Rate of the Labour Force

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

1955-1959

1960-1964

1965-1969

1970-1974

1975-1979

1980-1984

1985-1989

1990-1994

1995-1999

2000-2004

2005-2009

2010-2014

2015-2019

2020-2024

2025-2029


Tracking the Near-Retirement Population

Older Workers 45+ : A Growing Share of the Labour Force

25%

27%

29%

31%

33%

35%

1990 1992 1994 1996 1998 2000


Average Retirement Age Declines

57585960616263646566

1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999

age


The Viewpoints Survey

A snapshot of business, labour and public sector leaders’ perceptions on a range of issues

Conducted every two years – first done in 1996 Deals with challenges facing the economy, potential

solutions, demographic and skills issues, healthy workplace practices, and labour-management relations

In 2002, largest response ever: 1,145


Lack of Jobs% saying “a serious problem” declines

0%

20%

40%

60%

80%

100%

1996 1998 2000 2002

private managers

public managers

private labour

public labour


Shortage of Skilled Labour% saying “a serious problem” – on the rise

0%

20%

40%

60%

80%

100%

1996 1998 2000 2002

Private Managers

Public Managers

Private Labour

Public Labour


Leadership Views on Skill Shortages, Viewpoints 2002

48%

57% 55%59%

0%

10%

20%

30%

40%

50%

60%

70%

privatesector

managers

publicsector

managers

privatesectorlabour

publicsectorlabour

not a problem

moderate problem

serious problem


How Skill Shortages Rank as an Issue of Concern – Private Sector Managers

(% saying issue is a "serious problem")

48%

53%

55%

60%

75%

0% 10% 20% 30% 40% 50% 60% 70% 80%

Shortage of skilled labour

Government deficits/debts

Health Care issues

High corporate taxes

High personal taxes


How Skill Shortages Rank as an Issue of Concern – Public Sector Managers

(percent saying issue is a "serious problem)

45%

46%

49%

57%

63%

0% 10% 20% 30% 40% 50% 60% 70%

Reduced gov't spending on social programs

International trade issues

High personal taxes


Health Care issues


How Skill Shortages Rank as an Issue of Concern – Private Sector Labour

(percent saying issue is a "serious problem")

55%

55%

58%

63%

65%

66%

67%

74%

77%

81%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Shortage of Skilled Labour

Environmental degradation

Lack of jobs

Globalization

Increased gov't deregulation


Privatization of government services

Polarization' of work hours

Reduced spending on social programs

Health Care issues


How Skill Shortages Rank as an Issue of Concern – Public Sector Labour

(percent saying issue is a "serious problem")

57%

59%

62%

62%

64%

66%

77%

78%

81%

89%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Globalization


Income inequality

Increased gov't deregulation

Environmental degradation


Polarization' of w ork hours

Privatization of gov't services

Reduced spending on social programs

Health Care issues


Top 5 Actions to Address Skill Requirements(based on percent saying action is very important)

Managers Labour Leaders

private public private public

Upgrading Skills of Current Employees 1 2 1 4

Improve Succession Planning 2 1 3 1

Specific Measures to Retain Current Employees 3 4 5 3

Mentoring of Young Workers by Older Workers 4 3 2 2

Hiring Young Labour Market Entrants 5 5 4

Phased-in Retirement Policies 5


Upgrading Skills of Current Employees Seen as Very Important

Percent Saying Upgrading Skills of Current Employeesis a very important action in addressing skill requirements

59% 61%70%

52%

0%

25%

50%

75%

private sectormanagers

public sectormanagers

private sectorlabour

public sectorlabour


Employer-Sponsored Training:Them That Has, Gets

Employee Participation in Employer-Sponsored Training

40%47% 50%

58%64%

0%10%20%30%40%50%60%70%

Not completedhigh school

High schooldiploma

Trade /VocationalDiploma

CollegeDiploma

UniversityDegree


Apprenticeship Statistics, Canada

0

20000

40000

60000

80000

100000

120000

140000

160000

1977 1980 1983 1986 1989 1992 1995 1998Year

Nu

mb

er

of

Pe

rso

ns

Number Registered

Completions during year


Disagreement Over the Importance of Phased-in Retirement Policies

Percent Saying Phased-in Retirementis very important in addressing skill requirements

14%28%

43%48%

0%

25%

50%

75%




public sectorlabour


Where Does Immigration Fit in the Picture?

Percent saying hiring foreign-trained workers is a very important action in addressing skill needs

9% 9% 10% 14%

0%

25%

50%

75%




public sectorlabour


An Increasing Dependence on Immigrants for Labour Force Growth

Immigrant Contribution to Labour Force Growth, 1951-1996

0%

20%

40%

60%

80%

100%

1951-56 1956-61 1961-66 1966-71 1971-76 1976-81 1981-86 1986-91 1991-96

net immigration Can-born


Views on Importance of the Aboriginal Workforce - Canada

Percent Saying Hiring Aboriginalsis very important in addressing skill requirements

9%19% 22% 20%

0%

25%

50%

75%




public sectorlabour


Views on Importance of the Aboriginal Workforce – Manitoba & Saskatchewan

Percent Saying Hiring Aboriginals is very important in addressing skill requirements

23%

40%

63%53%

0%

25%

50%

75%




public sectorlabour


Key Questions

Managers and labour leaders identify upgrading skills of current employees as a priority. Do we do enough? How can we do better?

How do we attract and retain workers?– Young new labour force entrants– Older workers

How do we tap into under-utilized groups?– Women in non-traditional occupations; Immigrants;

Aboriginal population

Skill Shortages: Leaders’ Views Presented to NATCON January 20, 2003 Canadian Labour and Business...

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