:
Thank you very much for the invitation to be here today.
Yes, we understand that the committee wishes to conduct some discussion and some study around employability issues, so we have come prepared today to deal with three of the six that you've chosen: skilled worker shortages, labour mobility, and recognition of foreign credentials. There will be a group from the department who will come back next week, June 8, ready to discuss with you the others: seasonal workers, older workers, and workplace literacy.
If I could, I would begin by introducing my colleagues. With me is Cliff Halliwell, who is our director general of policy research and coordination; Barbara Glover, who is the acting director general of labour market policy; and Corinne Prince-St-Amand, who is the director general for foreign worker programming and immigrants and has responsibilities as well for the Agreement on Internal Trade and mobility.
[Translation]
We have provided you with materials on today's issues in both official languages which we believe will be helpful in highlighting relevant facts and research on the issues that you are examining.
I will begin my comments with a brief description of the Canadian labour market, followed by a short synopsis of today's three issues. I will then be pleased to respond to any questions that you may have.
[English]
On the labour market context, the Canadian labour market is performing well. Participation in employment rates rank in the top of the OECD, and the unemployment rate, at 6.4%, is at its lowest in three decades. Job growth continues to be strong, with 220,000 jobs created in 2005, of which 205,000 are full-time positions. This is actually the twelfth consecutive year of gains in full-time employment. As well, average hourly earnings have risen by 3.5% in 2005.
While Canada has trailed the U.S. in labour productivity growth in recent years, last year, again in 2005, labour productivity in the Canadian business sector rose for the first time in three years. It was up by 2.2%, which actually represents the strongest annual productivity performance since the beginning of the decade, the year 2000.
Moving forward, a number of current and emerging drivers could actually both exacerbate challenges and present us with opportunities. This morning I would like to name a couple of the key ones: globalization, the commodities boom, the knowledge-based economy, and the aging of our population.
The U.S. is still our predominant trading partner, but emerging economies, notably China and India, are providing new markets for our goods and services and are also a source of growing competition in a number of sectors, notably manufacturing.
The commodities boom has been an increasingly important source of both regional and sectoral growth and change in the country. In particular, labour shortages are substantially more pronounced and persistent in western Canada as a result of the strong growth of the energy sector in that region. At the same time, however, higher energy prices, combined with the stronger dollar and increased international competition, are indeed creating challenges for the manufacturing sector in central Canada, and there continues to be persistently high unemployment in areas of eastern Canada.
The fourth key driver here, as we look at our labour market, is the move and the increasing shift to a knowledge-based economy. As the magnitude and pace of technological change intensifies, labour demand is increasingly skill biased. Emerging across a number of sectors, you'll see rising skill requirements in health, oil and gas, construction, mining, and definitely other skilled trades.
Finally, on the reality of an aging population, while it brings forth a number of challenges in the Canadian context, its most pronounced effect is likely to be that of its impact on our future labour supply. Slower labour force growth will make it difficult to sustain past growth rates and improvements in our standards of living.
In summary, we can really see the need for a highly skilled labour force, one that's adaptable, flexible, and resilient in the face of all these pressures of change.
If I could, I'll now move specifically to skilled workers and shortages in that area.
[Translation]
Labour market indicators such as the employment rate, the unemployment rate, the labour force participation rate and real wages, provide no strong evidence of a generalized labour shortage in Canada at the present time.
However, a balance between overall labour demand and labour supply usually hides many instances of imbalances in specific regions, sectors and occupations of the labour market, with excess supply in some sectors coexisting with excess demand in others.
[English]
At the present time there are indications of shortages in several skilled occupations, in particular the health sector. We see these as a result of rising demands associated with population aging, combined with retirements among health professionals. We also see shortages in the oil and gas sector, largely as a result of the large investments in that sector, particularly in western Canada, and in management, largely as a result of the levels of retirement we are experiencing.
Most of the skilled occupations that are currently facing demand pressures are expected to remain in that situation over the next several years. Again, contributing to this will be the retirement of the baby boomers, opening up jobs across the spectrum of the occupations.
Market signals, such as higher wages, can certainly help to reduce those shortages over time by encouraging students to enrol in programs that lead them to be able to work in those occupations, and by encouraging employers to move from less buoyant or less healthy sectors to the hotter sectors, or the hotter regions and occupations.
But it goes without saying, certainly, that supporting high levels of PSE and training throughout the lifetime of Canadians really is important so that they have the necessary foundational skills to often be able to make adjustments to changes in the labour market.
I would just note here that in the recent budget for 2006, the federal government did propose a number of initiatives in support of a more skilled and educated workforce. Among those initiatives are plans to discuss with provinces a new approach to long-term and predictable support for post-secondary education and training, some immediate investments in post-secondary education infrastructure, and measures to support apprenticeship, among others.
With that, I would now turn to labour mobility as the next topic.
[Translation]
Labour mobility is the ability of workers to move between jobs, occupations, sectors and regions.
The type of mobility that we tend to focus on most, is the ability of workers to move to a different region or province to find a job—geographic labour mobility. The free flow of workers between provinces is an important component of Canada's economic union.
[English]
Labour mobility is the ability of workers to move between jobs, occupations, sectors, and regions of the country. Just to probe a bit deeper, I want to underscore three reasons it is important.
First, mobility is essential to growth and prosperity, as it shifts labour to more productive uses—to firms and workers that the Canadian economy can benefit from.
Second, labour mobility enables adjustment, including from the forces of globalization and technological innovation, which are changing the types of businesses and employees that are successful in Canada. To be able to adapt to these changes, workers need to be able to move from declining sectors and declining careers into other growth areas.
Third, no doubt citizens have the right to move within Canada. Enabling workers to move strengthens Canada's economic union and the economy as a whole.
There is no specific target for how mobile a workforce should be. In the absence of artificial barriers, market forces should determine how much movement you want to see. If a booming sector requires more workers, it can get them by paying higher wages or by offering relocation incentives, etc. However, if workers with good skills and experience are prevented from taking those jobs because they can't get licensed in different provinces or areas of the country, the labour market is indeed not functioning properly.
Some of the largest barriers to mobility involve workers being re-accredited, or their credentials being re-recognized, as they change provinces. Provinces, territories, and the federal government have agreed to work on the elimination of these barriers in the regulated professions. You will find those commitments where they were first agreed, in the Agreement on Internal Trade signed in 1994. However, progress has been slower than ideal.
A survey done by the federal-provincial-territorial Forum of Labour Market Ministers in 2005 found that 35% of workers had difficulties getting relicensed as they moved between provinces. An even higher proportion than that—50%—had trouble getting relicensed if indeed they were foreign trained, having acquired their credentials outside of Canada.
Concluding my comments on labour mobility, I will move on briefly to the recognition of foreign credentials. Immigration is expected to account for all net labour force growth within the next 10 years, so immigration does provide part of the solution to meeting our labour force needs of the future and our productivity challenges.
But research tells us that approximately 60% of employed immigrants in Canada don't work at the same level of job as they were doing before coming here, regardless of their education level. The biggest reasons for this are that we're not recognizing their credentials, they have insufficient language capacities, and they lack Canadian work experience required by employers.
Human Resources and Social Development has had in place for a number of years now a foreign credential recognition program, by which we're working with provinces, territories, other partners, and stakeholders such as regulatory bodies, sector councils, provincial assessment agencies, and post-secondary institutions to implement fair and more transparent credential recognition processes to address this problem facing skilled immigrants.
Since its inception in 2003, the program has funded a variety of projects, including diagnostics, research, partnership building, engagement of employers, and development of tools and processes to help speed up the processes of assessing and recognizing credentials, and making those processes more efficient, such as by using online regulatory exams, as well as piloting certain overseas integration services.
Initially, after consulting with the provinces, the program people focused their efforts on three regulated occupations, doctors, nurses, and engineers--in the case of the first two because of shortages across the country, and in the case of engineers because the majority of economic immigrants who apply to come to Canada actually identify engineering as their profession. Subsequently, based on further discussions over the last 18 months to two years with provinces and territories, we've now moved on to begin work with five other health occupations in demand--pharmacists, occupational therapists, physiotherapists, medical lab technologists, and medical radiation technologists.
Here too, as a next step, the recent federal budget set aside $18 million to be spent over the coming two years to consult with provinces, territories, and stakeholders on a mandate, a structure, and a governance for a national agency, and then to see us take the first steps toward the creation of such an agency to assist in this area of assessment and recognition of credentials.
Mr. Chair, that's it for me. We'd be pleased to answer any questions on those comments or on the materials we've brought, or on anything else the members would wish to put to us.
I want to focus on the issue of training and development and to ask why it is that we're coming to this so late in the game. We knew there were going to be labour shortages as we looked at the demographics and at some of the changes.
I had the good fortune to go on some trips to countries in Europe--Ireland and Finland, in particular--and in Ireland's case, in the seventies when they decided to recover their economy, immediately they looked at the question of skill shortages and training and they moved very quickly. Their first initiative was to put in place the resources to train absolutely everybody they could identify.
And actually, Finland did the same thing. And not only that, but Finland, Ireland, and other European countries moved to change their immigration laws so that people who had left to get work in North America primarily and other places in the world could actually come back home and hold dual citizenship. That wasn't possible before, but they made those changes in the expectation that there would be this challenge on the skilled labour front that they would need, and every one of them, when you asked them what the biggest obstacle to further growth was for them, said it was access to skilled labour and trained workers.
So here we are now. We were the recipient of a lot of these immigrants and hopefully we'll get more, because as you said, if you look at the way we're replacing ourselves in Canada these days, we will get a lot of our skilled and trained people from offshore.
I'm concerned, though, at the same time that we're not training our own people effectively. I know young people in my own community who aren't going to school, who aren't going to college, who aren't going into apprenticeships because it's just too difficult. It's too complicated, and number two, it's too expensive. So many of them are taking jobs at grocery stores, call centres, thereby underutilizing the potential and the skills they have, which talks to the issue of productivity and our ability to compete out there.
So we have literally thousands and thousands of people now.... We've had three studies in the last week to suggest that not only are the poor getting poorer, but people working are getting poorer. We now have the working poor, and it's a growing part of our demographic. People are working in low-wage jobs because they can't seem to find a way to access training to get into the higher-paid jobs, where they could probably do well.
The question I have is, why are we coming at this so late in the day? Why are we sitting here in 2006 saying that this is going to be a problem, when we knew--or at least others knew--that it was going to be a problem twenty or thirty years ago?
Looking back on my own experience in the sixties and seventies when I was in school, there were literally hundreds of people in apprenticeship programs all over the place, like Algoma Ore, Algoma Steel in my area. There were twenty or thirty apprentices in almost every workplace, and it seemed to be easy to get in. People worked hard to learn the skills, and they were supported in it. I remember some of the students from Wawa, for example, going to Toronto to George Brown College to get the training they needed at the academic level in order to get their papers. It doesn't seem to be possible any more. Companies aren't interested. Young people find it too difficult and too expensive.
So what are we doing about all of that, if anything?
I'm going on a bit here, but the other issue that comes into play, then, is that now you've got foreign-trained workers who want to come in and get experience and upgraded in how we do things in Canada, but they're competing with our own people who want to get in, because there are so few spaces for any of them to actually get in and get the training they need, it seems.
May I begin by telling you a little bit about the most recent statistics we have in terms of internationally trained doctors in this country? In 2005, we know there were approximately 14,000 practising international medical graduates in Canada. Those were people who had actually gotten through the barriers that you were describing and were practising. What we don't know and where we are lacking reliable data is how many others there are in the country who are unable to obtain their licences.
The program we're running, the foreign credential recognition program, has been working for the past two years with the Medical Council of Canada to address this specific issue around credential recognition. We have three projects running with them as we speak.
The first is an online assessment so that foreign-trained doctors, in their home country prior to arrival on Canadian soil, can do an electronic assessment on the Internet to check their credentials against Canadian requirements and to determine, before even making a decision to emigrate to Canada, whether or not they generally stack up and whether they'll have some issues in integrating into their profession when they arrive.
Secondly, we have another project running with the Medical Council of Canada that gives their evaluation exam. Historically, this exam--and it has to be written by those who are Canadian-trained as well as those who are foreign-trained--was offered once a year in Canada, in Toronto. What this meant for foreign-trained physicians was that they had to fly to Toronto to write the evaluating exam at a huge cost to themselves. What this project does now is to offer the evaluating exam in many countries around the world, as well as in Canada, and many more times a year, thereby helping to increase the number of potential foreign applicants who are able to actually write the exam each year with a view to, hopefully, increasing the number of doctors we have in our communities.
The final project we have in place right now, again with the Medical Council of Canada in order to assist physicians and address the demand in all areas of the country, is something called a national credential verification agency. What this agency will provide, in essence, is one-stop shopping for physicians who want to come to Canada. If you've ever talked to someone in a licensed occupation who wants to come to Canada, you'll know that they have to bring many copies of their original documents. Those documents then have to be assessed and recognized by the appropriate regulatory authorities prior to allowing that individual to then write the licensing exams and obtain licensure.
This agency will allow foreign-trained doctors to send one set of documentation to this agency and have the credentials assessed and recognized. It will then create, as well, an ongoing database for that physician if he or she gets other accreditations throughout their medical career. It will keep an ongoing history and list of all their ongoing credentials throughout their practice.
This means that instead of a health authority having to first check that the credentials are not fraudulent, that they are properly assessed and the individual meets all the licensing requirements, the employers will only now have to call one place. They will not have to also check all of the various places the doctor has practised in the world to see if those were legitimate and reputable hospitals. All of that kind of work will be done by the national credential verification agency for physicians--