Ontario is losing out on as much as $24.3 billion in economic activity and $3.7 billion in provincial tax revenues annually because employers cannot find people with the skills they need to innovate and grow in today’s economy, according to a report.
The Conference Board of Canada’s report, The Need to Make Skills Work: The Cost of Ontario’s Skills Gap, finds that employers most need post-secondary graduates in science, engineering, technology, and business and finance.
Skills gaps currently affect much of Ontario’s economy, including sectors that account for almost 40% of employment: manufacturing; healthcare; professional, scientific and technical services; and financial industries. These shortages are projected to worsen if action is not taken.
“Ontario cannot afford to live with a skills gap of this magnitude,” says Michael Bloom, the organization’s vice-president of organizational effectiveness and learning. “The need for action is urgent, since changes in education will take years to bear fruit in the labour force.”
The negative impact on the Ontario economy goes beyond the issue of skills shortages. Another issue with economic consequences is skills mismatches in the labour force, individuals whose skills and training are not being fully utilized in the jobs they have.
The report says many stakeholders have a role to play—individually and collaboratively—in alleviating the province’s skills gaps.
- Employers can increase their training and development investments and provide more experiential learning opportunities, such as apprenticeships, co-op placements and paid internships.
- Educators can better align programs to the needs of the economy.
- Governments can allocate additional resources for experiential learning opportunities, and collect and share better labour market information.
- Students can match their own education and training planning to the realities of the labour market.