canadian labour and business centre lmi: crucial in a time of change a presentation to the third...

CANADIAN LABOUR AND BUSINESS CENTRE www.clbc.ca

LMI: Crucial in a LMI: Crucial in a Time of ChangeTime of Change

A Presentation to the Third Annual National LMI Forum, Vancouver, BC,May 18, 2004,

Derwyn Sangster, Director, Business, Canadian Labour and Business Centre

CANADIAN LABOUR AND BUSINESS CENTRE 2

“In 2003-4,CME Members told us that lack of qualified personnel was one of the top three constraints on performance improvement”

– Perrin Beatty, President, Canadian Manufacturers and Exporters, April 2004

“We know we have workers who want training. And what do we have? A skills crisis.”

- Ken Georgetti, President , Canadian Labour Congress, September 2003


Shortage of Skilled WorkersShortage of Skilled WorkersAA serious problem serious problem – on the rise– on the rise

0%

20%

40%

60%

80%

100%

1996 1998 2000 2002

Private Managers

Public Managers

Private Labour

Public Labour


The Workplace Skills Challenge: The Workplace Skills Challenge: A Time of ChangeA Time of Change

> Major workforce shifts and trends:

> Slower labour force growth> Aging population; trends to earlier retirement> Competition for skills taking on an international

dimension> Recruitment/retention issues> Emerging skill requirements (new technology,

hard and soft skills)


Labour Force Growth Drops Labour Force Growth Drops Below One PercentBelow 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


The Near-Retirement Population is The Near-Retirement Population is IncreasingIncreasing

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

25%

27%

29%

31%

33%

35%

1990 1992 1994 1996 1998 2000


Top 5 Actions to Address Skill RequirementsTop 5 Actions to Address Skill Requirements

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


Apprenticeship Statistics, CanadaApprenticeship 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


Employer-Sponsored Training:Employer-Sponsored Training:Them That Has, GetsThem 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


Statistics Canada: An Increasing Statistics Canada: An Increasing Dependence on Immigrants for Labour Force Dependence on Immigrants for Labour Force GrowthGrowth

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


Statistics Canada… the ‘Transition Statistics Canada… the ‘Transition Penalty’ Has Been IncreasingPenalty’ Has Been Increasing

Unemployment Rates, Canadian- born and Recent ImmigrantsCanada

7.9%

17.4%

7.1% 5.7%7.4%

29.7%

12.7%9.2%

0.0%5.0%

10.0%15.0%20.0%25.0%30.0%35.0%

Canadian- born Entered countryduring the census year

Entered countrywithin 5 years of

Census

Entered countrywithin 6 to 10 years of

Census

Recent Immigrants

1981 2001


Dependence on Immigrants: Ontario, Dependence on Immigrants: Ontario, British Columbia, QuebecBritish Columbia, Quebec

Ontario British Columbia

Quebec

Share of New Immigrants, 1991-2001

57.1% 19.1% 12.8%

Immigrants’ Share of Labour Force Growth, 1991-2001

97% 60% 61%


Perceived Importance of Immigration in Addressing Perceived Importance of Immigration in Addressing Skill Needs: Ontario, British Columbia, QuebecSkill Needs: Ontario, British Columbia, Quebec

Percentage of Managers and Labour Leaders saying Hiring Foreign-trained Workers is "Not Important" in Addressing

Skills Needs, by Selected Provinces

0%

10%

20%

30%

40%

50%

60%

70%

Ontario BritishColumbia

Quebec

private sector managers

public sector managers

private sector labour

public sector labour


Views on Importance of the Aboriginal Views on Importance of the Aboriginal Workforce – Manitoba & SaskatchewanWorkforce – 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


In This Skills Challenges Context, Why In This Skills Challenges Context, Why Does LMI Matter to CLBC?Does LMI Matter to CLBC?

The answer is defined by:

> Our Stakeholders> Our Mission > What we do, and what we care about


CLBC’s StakeholdersCLBC’s Stakeholders Independent national organization Multipartite Board (business, labour, government

and education) Co-chaired by Labour and Business

CLBC’s MissionCLBC’s Mission To improve public policy and business and labour

practices, especially at the workplace level To improve dialogue among all parties


What CLBC Does, What CLBC Does, What CLBC Cares AboutWhat CLBC Cares About

> Applied research, analysis, consultation;

> Focus on labour market, skills, skill shortages and learning issues

> Interests at international, national, sectoral and workplace levels


For Its Stakeholders and Mission, CLBC Must For Its Stakeholders and Mission, CLBC Must Have:Have:

> Capacity to interpret the labour market through independent, credible LMI/analysis

> Capacity to provide balanced commentary which understands the perspectives, LMI needs and contributions of our stakeholders

> Particular concern for the needs of the workplace parties; strong understanding of workplace issues

> A pragmatic rather than academic approach, with emphasis on information sharing with stakeholders


CLBC’s Activities Mean We Must Have:CLBC’s Activities Mean We Must Have:

> A capacity not only to use the LMI and analysis generated by others, but to generate our own, to meet the needs of our stakeholders

> A strong overview of the issues and LMI sources related to the labour market as a whole

> A capacity to deal with LMI and analysis at the firm, sector or various geographical levels


Thus, a Strong CLBC Interest in Issues Thus, a Strong CLBC Interest in Issues Such As:Such As:

> Apprenticeship;> Worker retention and knowledge transfer;> Aboriginal issues;> Foreign credentials recognition; > Enhanced language training for immigrants;> Essential skills;> Sectoral human resources issues.


CLBC’s Future Plans/Hopes:CLBC’s Future Plans/Hopes:

> To continue to serve its stakeholders;> To maintain its program of research and

consultations based on LMI/analysis> To host the Canadian Council on

Learning’s Adult and Workplace Learning ‘Node’


The Canadian Council on Learning: A The Canadian Council on Learning: A Potential Major LMI InnovationPotential Major LMI Innovation

Mandate:> Informing Canadians regularly on Canada’s

progress on learning

> Disseminating knowledge and information on learning among Canadians


Proposed Coverage of CCLProposed Coverage of CCL

All aspects of ‘lifelong learning’, including:> Early childhood education> K-12> Post-secondary education> Adult and workplace learning


Adult and Workplace Learning ‘Node’Adult and Workplace Learning ‘Node’

CLBC sees Priority Areas of Activity in LMI terms:

> Informing Canadians about the State of Adult and Workplace Learning

> Knowledge/Information Exchange (Enabling Canadians to inform one another of what they are doing in this area)


Informing Canadians Informing Canadians

> Annual Report to Canadians on Adult and Workplace Learning

> Research program driven by Annual Report


Knowledge/Information ExchangeKnowledge/Information Exchange

> Adult and Workplace Learning Portal> Systematic research on innovative practices in

adult learning> Promoting strategic knowledge exchange in

specific areas (PLAR, Essential Skills, Literacy, Foreign credentials recognition, etc.)


In Summary:In Summary:

> Canada faces dramatic skills challenges;> CLBC, through its stakeholders, is heavily

involved in these issues;> The need for clear and credible LMI/analysis

has never been greater;> Viewed through an LMI lens, the CCL is a

potentially important future tool.

CANADIAN LABOUR AND BUSINESS CENTRE www.clbc.ca

Thank you!

Derwyn SangsterDirector, Business,Canadian Labour and Business [email protected]

canadian labour and business centre lmi: crucial in a time of change a presentation to the third...

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