This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.
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Effective Local Approaches to boost quality job creation
1. Effective local strategies to
boost quality job creation:
Lessons from Canada
Anil Verma, Ph.D.
Professor & Director
Centre for Industrial Relations & Human Resources
and
Rotman School of Management
University of Toronto
September 2014
2. Skill gaps,
shortages
High skill
equilibrium
Low skill
equilibrium
Skills
surplus
Demand for High Skills
Supply of High Skills
3. Traditional Approaches
• Emphasize Supply-side Policies
– Boost post-secondary enrollments
– Incentives for apprenticeships
– Incentives for training
– Target key groups: youth, women, minorities
– Bridging programs
5. Eastern
Ontario
Central
Ontario
Niagara
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
Huron
1
0.8
0.6
0.4
South Central
Ontario
Northern Ontario
Ottawa
Kingston
Oshawa
Toronto
Hamilton
0.2
0
St. Catharines
London
Windsor
Kitchener
Sudbury
Thunder Bay
-0.2
-0.4
-0.6
-0.8
-1
Rural Urban
(1.17, 1.04)
SKILLS
DEMAND
SKILLS
SUPPLY
Skills supply and demand in Ontario
6. Skills supply and demand in Ontario
Eastern
Ontario
Central
Ontario
Niagara
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
Huron
1
0.8
0.6
0.4
South Central
Ontario
Northern Ontario
Ottawa
Kingston
Oshawa
Toronto
Hamilton
0.2
0
St. Catharines
London
Windsor
Kitchener
Sudbury
Thunder Bay
-0.2
-0.4
-0.6
-0.8
-1
Rural Urban
(1.17, 1.04)
SKILLS
DEMAND
SKILLS
SUPPLY
7. First Theorem of the Skilled Jobs Economy
Utilization of enhanced skills depends
largely on a demand for enhanced
skills
Demand for enhanced skills depends
on innovation and creativity at the
workplace
Workplaces vested in the status
quo do not contribute to demand for
enhanced skills
A culture of innovation creates a
steady demand for enhanced skills
9. Specific
skills &
knowledge
Competing
Locally
High
Quality
Unique
Products
Responsive
& Flexible
10. A Model of Policy Interventions for a Shift to a High-skill Equilibrium
Public
Policies,
Programs
&
Institutions
Private and
Not-For-
Profit
Policies,
Programs
&
Institutions
Demand-side Processes
More
Value-added
Products
& Services
Persuade
People to
Acquire
Higher
Skills
Increase in
Employer
demand for
Higher
Skills
Supply-side
Processes
Increase in
Supply of
Higher
Skills
Improve
productivity,
quality, cost,
service;
Promote
innovation
Fund &
Promote
Education
& Training
Policy Inputs
Outcomes
High-Skill
Equilibrium
(demand
High Skill
Surplus
(Demand
<
Supply)
=
supply)
High Skill
Shortage
(Demand
>
Supply)
Feedback for Policy Adjustments
11. Role of Industry Networks (Non-profits)
Demonstrate
2
Diffuse
Innovations
Train
3
Support
4
Legitimate
1
12. Role of Universities & Colleges
• Niagara College as an Exemplar
– Programs pertinent to local industry:
viniculture, tourism & hospitality
– Local labour market surveys
– Internships
– Research Projects
– Contract research with industry
Notes de l'éditeur
Because of this variation we would argue that it is imperative that many sub-regions not only invest in the supply of skills but also the demand for skills:
On left hand – balanced against on right side
X axis: supply of skills – population in working age 15-64 with post secondary education
Y axis : demand indicator
Income from employment (weight=0.75)
Employment in medium- high skilled jobs (weight=0.25) - skills level A using HRSDC classification
The supply and demand indices are calculated on data for Canada, here we just present the values for Ontario
Focus on Niagara and Kitchener
Niagara is rural and in the second quadrant (low supply and relatively high demand)
Kitchener is an urban area and is a potential high skilled equilibrium (high supply and high demand)
THIS IS THE FIRST WAY OF PRESENTING THE DATA . THE FOLLOWING GRAPHS WILL SHOW THE SUPPLY AND DEMAND INDICES BY BENCHMARKING GROUP BASED ON EMPLOYMENT BY SECTOR
In this way we will compare EI regions with similar labour market characteristics