Canada’s largest business association demands for "just-in-time" immigration system to tackle skills crisis

The Canadian Chamber of Commerce, one of Canada’s largest business associations, has released a new strategy to bring focus to growing skilled labor shortage in the country and recommended actions including a robust and just-in-time immigration system like Australia.

Drawing upon extensive staff research and surveys of local chambers of commerce and their members, as well as business members of its own, the Canadian Chamber of Commerce has launched a new report, Building a Twenty-First Century Workforce: A Business Strategy to Overcome Canada's Skills Crisis, at the Durham Economic Prosperity Conference 2008 on November 7, 2008.

The report views skills shortage as a critical economic issue that impacts Canadian productivity and competitiveness. It analysis that labor shortages exist throughout the economy and the reasons for this shortages are equally wide-ranging – economic competition, shortages of affordable housing, high rates of pay in different regions, changing demographics, fewer skilled trades apprentices, change in job skills requirements and lack of mobility of existing workers.

According to the report, by 2010, 75 per cent of all new jobs created will be highly skilled, meaning that those without skills will be hard pressed to find work. By 2010, only 6 percent of jobs will be open to those with less than a high school diploma.

This report's recommendations call on the federal, provincial and territorial governments, as well as business, to act quickly to combat this real threat to Canadian prosperity, especially in light of current global economic turmoil. Surveys of the Canadian Chamber of Commerce's business/corporate members and local/regional chamber managers - along with research conducted by the Canadian Chamber's staff - identify actions in four key areas in this report that, if acted upon now, will do much to build and maintain a competitive workforce for Canada's businesses and economy.

Along with adjusting the Canadian pension regulations, removing inter-provincial barriers to labor mobility and developing measures to encourage greater investment in training by employers, the recommendations of this report call on the federal government to continuously improve Canada’s immigration system to keep Canada competitive in the world competition for skilled workers by (a) benchmarking Canada’s immigration system against other nations strongly competing for immigrants (e.g., Australia and the UK); (b) reviewing and streamlining current processes to ensure that applications are processed within 6-12 months, starting with economic and business applicants; (c) giving priority to applicants who possess skills that are in short supply in the Canadian labor market; and (d) examining ways to do a better job of matching supply and demand for immigrants.

The report recognizes immigration as an important source of net labor force growth in Canada and appreciates federal government for its efforts in recent years to align Canada’s immigration policies more closely with the needs of the labor market including modifications in Temporary Foreign Worker Program, creation of Foreign Credentials Referral Office, enactment of Canadian Experience Class and changes in the Post-Graduation Work Permit program.

Finally, the report emphasizes the need to design and sustain an efficient immigration system that gives Canada a competitive edge in the battle to attract and retain the skills country need to ensure a healthy economy.

Just a few weeks earlier, 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, and recommended various policy initiatives including a complete revamp of the immigration system and additional investment in skills training and post-secondary education.