Industry coalition wants party leaders to debate acute skilled labor shortage in federal election

A coalition of business groups, unions and colleges has called on federal election candidates to debate solutions for the acute shortage of skilled labor in Canada, which is not only crippling the domestic economy but also reaching the point of a "national crisis" if not dealt with by the political parties aiming to form the next government.

The Investing in Skills coalition was officially launched few days earlier to bring the growing skills deficit to the attention of mainstream political parties’ leadership and demanded to get this issue on their agenda for the election.

The coalition, at a news conference and in a letter to all party leaders, urged them to respond to the issue that it said will need changes to policies governing immigration and the employment insurance system, and require increased spending on apprenticeship training and post-secondary education.

According to the coalition, the skills crisis affects all sectors of the
Canadian economy and is becoming an accepted part of life for many small and medium-size businesses, leading to companies choosing to operate with fewer employees and ignore growth opportunities.

To support its claim that crisis exists, the coalition cited, among other things:

• In a 2008 survey, the Bank of Canada found that over 40 per cent of firms surveyed were reporting that labor shortages were restricting their ability to meet demands.


• In a recent 2008 survey of 640 CEOs by Canadian Manufacturers & Exporters, 41 per cent said shortages of skilled workers are an important challenge for their business, while an additional 30 per cent said this issue has become critical and is a constraint on growth.


• The construction sector will need approximately 260,000 new workers over the next eight years.


• The Railway Association of Canada predicts the railway sector will need to hire 11,000 workers in the next four years (33 per cent of its total current workforce) to fill technical positions.
  
• A 2007 Canadian Federation of Independent Business (CFIB) survey of its members found that over 300,000 jobs were unfilled for at least four months in 2007.


• A 2006 Canadian Federation of Independent Business (CFIB) survey found that because hiring skilled workers was so difficult, 38 per cent of its members had chosen to function with fewer employees and ignore new business opportunities.


• The Canadian Tourism Human Resource Council (CTHRC) predicts unprecedented labor shortages in the tourism sector with a forecast of 348,000 unfilled jobs by 2025.


• The Canadian Automotive Repair and Service (CARS) Council predicts it will face annual shortages of between 4,290 and 7,380 skilled workers from 2005 to 2009 and between 4,450 and 8,050 skilled workers between 2010 and 2014.


• The Mining Industry Human Resources (MIHR) Council predicts a need for 10,000 people per year or 100,000 people over the next 10 years.


• Growth in manufacturing will require up to 62,000 skilled workers in aircraft maintenance alone by 2016.

The coalition says that while erasing the skills deficit will not happen overnight and will require a number of specific policy responses ranging from immigration to employment insurance to added investments in apprenticeship and post-secondary education, the scope, complexity and urgency of the issue require political will on a national scale.

Policy initiatives that Ottawa needs to address include a complete revamp of the immigration system, which has a backlog of nearly a million people and can take five years (or more) to process an individual's application; and additional investment in skills training and post-secondary education, especially at the community college level that focuses on trades where lengthy waiting lists of 2-4 years are common.

The Investing in Skills coalition includes 17 national organizations: Association of Canadian Community Colleges (ACCC), Association of Canadian Engineering Companies (ACEC), Association of Equipment Manufacturers (AEM), Canadian Advanced Technology Alliance (CATAAlliance), Canadian Construction Association (CCA), Canadian GeoExchange Coalition, Canadian Healthcare Association (CHA), Canadian Labor Congress (CLC), Canadian Manufacturers & Exporters (CME), Canadian Solar Industries Association (CSIA), Cement Association of Canada (CAC), Certified General Accountants Association of Canada (CGAAC), Certified Management Accountants (CMA), Hotel Association of Canada (HAC), Railway Association of Canada (RAC), Retail Council of Canada (RCC) and Tourism Industry Association of Canada (TIAC).