Canada, like many other developed countries, is experiencing a major labour shortage that has significant implications for various industries, businesses, and the economy at large. The issue is particularly pressing in industries such as healthcare, construction, and technology, where the demand for skilled workers has been steadily increasing.
At the root of the problem is a demographic shift where an ageing population and declining birth rates have resulted in fewer young people entering the workforce to replace retiring workers. Add to that sectoral issues, the lingering impact of the Covid-19 pandemic, and a skills mismatch and the picture is complex.
According to a recent report by the Conference Board of Canada, the country is projected to face a labour gap of 1.5 million workers by 2025. This gap is expected to be felt across a range of sectors, including manufacturing, transportation, and natural resources, as well as in many skilled trades. In particular, the shortage of workers in healthcare is a significant concern, given the country’s aging population and the increasing demand for healthcare services.
Collaborative Solutions Provide A Way Forward
Unemployment is still an issue in some sectors, while labour scarcity persists in others.
Labour shortages have complex causes and addressing them requires a cohesive, joined-up approach that breaks open the siloes and embeds collaboration.
Collaborative solutions involving government, industry, and community partnerships will be critical to addressing the growing labour shortage challenge over the coming years. A joined-up approach is essential to attracting new workers, retraining existing workers for different careers, and ensuring they have the support and facilities they need to build a career and a life.
What does this mean in practical terms?
Workforce Development Programs
Working together, governments, employers and community organizations can collaborate to develop job-focused schemes that provide training, education and placement services to underrepresented groups. These can be particularly useful in tackling barriers to employment in marginalized communities
Governments and employers can work with community organizations to support the integration of immigrants into the workforce. For example, the Atlantic Immigration Pilot program connects skilled immigrants with employers in the Atlantic provinces to take up vacancies they have been unable to fill internally.
Sector Specific Partnerships
Governments, employers, and community organizations can collaborate to address labour shortages in specific sectors. An example of this in action is the Ontario government’s Advanced Manufacturing Talent Strategy which is a partnership between industry associations, post-secondary institutions, and community organizations to address the skills gap in the manufacturing sector.
Employers can partner with community organizations to attract and retain workers from underrepresented groups. The Retail as a Career program is a partnership between the Retail Council of Canada and community organizations that offers training and career development opportunities to youth and other groups who face barriers to employment.
Governments, employers, and community organizations can work together to address labour shortages in specific regions. There are examples of these in action across Canada, including the Northern Ontario Heritage Fund Corporation which provides funding to support economic development initiatives in Northern Ontario.
Innovation, new ideas and a willingness to break down barriers between sectors will be key to addressing this key economic challenge. By working together, government, employers and community groups can identify opportunities and develop innovative solutions to attract, train, and retain workers in industries and regions experiencing labour shortages.
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