skill shortages: leaders’ views presented to natcon january 20, 2003 canadian labour and business...
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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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
Average Retirement Age Declines
57585960616263646566
1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999
age
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
Shortage of skilled labour
Health Care issues
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
International trade issues
Privatization of government services
Polarization' of work hours
Reduced spending on social programs
Health Care issues
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
Shortage of skilled labour
Income inequality
Increased gov't deregulation
Environmental degradation
International trade issues
Polarization' of w ork hours
Privatization of gov't services
Reduced spending on social programs
Health Care issues
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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%
private sectormanagers
public sectormanagers
private sectorlabour
public sectorlabour
October, 2002Canadian Labour and Business Centre www.clbc.ca
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%
private sectormanagers
public sectormanagers
private sectorlabour
public sectorlabour
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
October, 2002Canadian Labour and Business Centre www.clbc.ca
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%
private sectormanagers
public sectormanagers
private sectorlabour
public sectorlabour
October, 2002Canadian Labour and Business Centre www.clbc.ca
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%
private sectormanagers
public sectormanagers
private sectorlabour
public sectorlabour
October, 2002Canadian Labour and Business Centre www.clbc.ca
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
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