Canada’s huge skills gap in the workforce has only widened during the pandemic, according to a report from the Conference Board of Canada, with experts saying this is a “critical” time when the country must invest to create a more qualified workforce if you so desire. to remain competitive globally.
Since the start of the pandemic, Canadian businesses have become more reliant on digital tools and technologies. According to a recent report on “Digital skills for today and tomorrow” by the Conference Board of Canada, in association with the Future Skills Centre. The Conference Board report projects that over the next 10 years, nine out of 10 jobs will require digital skills.
“We definitely have a labor shortage, but we also have skills shortages because business needs are changing due to increased automation,” said Dr. Tricia Williams, director of research, assessment and knowledge mobilization at Future Skills Centerhe told CTVNews.ca in a phone interview Thursday. “So people who find their skills outdated will need to upgrade or invest in new skills.”
according to a StatCan report, more than half (56.1 percent) of Canadian businesses in 2021 said their current workforce was not fully competent to perform jobs at the required level. Most of the companies that reported skills gaps were large companies with more than 100 employees (93 percent) or medium-sized companies with 20 to 99 employees (90 percent). Three-fifths (60.3 percent) of companies said they faced at least a negative consequence of their activities due to the skills gap in their workforce. Although the regional disparities were smaller, the distribution between the different sectors has been uneven. For example, the accommodation and food services sector showed the highest skills gap rate of any other sector, with nearly four-fifths (78 per cent) of companies struggling to hire.
Skills with the highest gap
Companies reporting skills gaps reported that technical, practical, or job-specific skills showed the highest gap (57.5 percent), followed by problem solving (46.2 percent), according to figures released by StatCan.
Another report tracking global digital skills readiness gave Canada an index score of 23, which is below the global average of 33 (out of 100). The 2022 Salesforce report, “Global Digital Skills Index”, surveyed 23,000 employees in 19 countries. Canadian employers also raised concerns related to wage inflation, as well as the loss of talent to other countries, such as the US, where wages tend to be higher.
The US had a higher index score of 36, showing a high level of readiness for digital skills in the workplace. According to the report, at least four in five Canadians (81 per cent) felt they did not have the resources to learn digital skills. Prospective employees surveyed rated themselves as beginners in AI, coding and development, and product management technology.
The digital skills needed in the pandemic-era workplace have gone far beyond basic digital literacy. Companies need workers with stronger skills and a deeper understanding of advanced digital areas such as data analytics, cybersecurity, and cloud technology. With large tech companies opening offices or expanding their existing workspaces In Canada, employers are looking for workers with advanced digital skills to solve problems and help make informed decisions.
Skills gap in the workplace by generations
A large proportion of the Canadian population is changing as baby boomers age and immigration increases the number of younger workers. Millennials in Canada represent the most of the working-age population (33.2 percent), but many struggle to meet the demand for skills in the workplace.
According to sales force reportonly 40% said they are very prepared with digital skills in the workplace, compared to 50% in the US In five years, only 23% felt they will be “very equipped with resources to learn skills digital”.
Skill gaps and willingness to hone new skills also vary by generation.
Only 12 percent of baby boomers in Canada, according to the sales force report, were actively learning/training in digital skills. After five years, fewer baby boomers (8 percent) want to actively learn digital skills. While the younger workforce (Gen Zers) showed more enthusiasm and ambition in learning digital skills, only 8 percent said they were “very prepared with digital skills in the workplace.” Fewer Gen Zers in Canada (17 percent) were currently learning/training in digital skills compared to millennials (24 percent)
But digital skills may not be the only gap facing the Canadian workforce, Williams said.
Employers also report critical gaps in social and emotional skills, such as collaboration and problem-solving management. In fact, older Canadians, she said, have more valuable social and emotional skills that are being lost in today’s job market, and these include more experience and stronger social and emotional skills developed over time.
“But I certainly feel that older Canadians who want to stay active in the workforce should also think about upskilling and keeping up with today’s skills demands, including digital technology.”
Rather, he said that as digital natives, Gen Zers need to engage in conversations that aren’t just limited to the hyperconnected digital world. “So we need to make sure that we’re building and balancing these digital and general life skills,” Williams said.
Another report from The Conference Board of Canada showed that the six skills for which vacancies incur the highest costs are active listening, critical thinking, reading comprehension, speaking, tracking, and coordination. These skills-related vacancies cost the economy as much as $25 billion in 2020: about 1.3% of Canada’s GDP.
The unrealized economic value of $25 billion in 2020 is a 67 percent increase from $15 billion in 2015. The increase in the number of job openings, higher salaries, and changes in job rates Available jobs have contributed to this increase, according to a recent report on skills vacancies by the Conference Board of Canada.
Solutions to Address the Skills Gap
To meet the demands of this unique labor market:retirement recordlabor shortages, layoffs/hiring freezes and a looming recession – it becomes even more important that the Canadian workforce is prepared for what lies ahead.
“This is a critical time for Canada to invest in skills to remain competitive with the US and Europe,” Williams said.
Companies are providing home training to close the skills gap in the workforce. More than seven out of 10 companies (71.0%) provided training to their employees in 2021. Almost all were from large companies (97.6%). But Williams said that might not be enough because only big companies have the means to fully digitize their workforce.
With the workforce small and medium enterprises that represent the largest proportion of the workforceIt becomes critical that skills training opportunities are available to employees of companies of all sizes and not just targeted at the largest, wealthiest corporations, he said.
Williams said thinking about skill acquisition needs to shift toward lifelong learning. “Now we’ve started to see more attention to micro-credentials and what that looks like in practice,” she said.
Immigration it’s another tool to attract those with a specialized skill set. the system of training, education, experience and responsibilities (TEER)which Immigration, Refugees and Citizenship Canada (IRCC) will implement in November, would invite applicants based on occupation, language or education instead of the traditional Comprehensive Ranking System.
“This will help alleviate some of the labor shortages that are being seen across the country in various sectors,” Rick Lamanna, director of Fragomen Canada, an immigration service provider, said in a telephone interview Thursday. “It is an attempt to address the skills gap and will clearly define what is required to work in an occupation combined with specific draws.”
But Williams said Canada also needs to recognize and take advantage of the current skill sets that immigrants bring. “Because if we can’t find a way to recognize their abilities and get them to use them, then we’re really going to be way behind our peers,” she said.