The wave of retirements looming as baby boomers age out of the workforce coupled with the substantial existing need for skilled tradespersons point to current and future vacancies in specific sectors of the economy. There are also a growing number of impact and benefit agreements (IBAs) signed between industry and Aboriginal communities that include a clear target for a number of employment opportunities to be reserved for Aboriginal people.[1] Taken together, this demonstrates that there are significant opportunities for Aboriginal people to improve their economic and social condition.

However, many Aboriginal people face multiple barriers to employment including challenges relating to education, literacy and essential skills, and job readiness. There is often a mismatch between the skills of a vast number of Aboriginal people and the skills required for current and future employment opportunities, primarily in the resource extraction and supporting industries. The report will look at some of the factors that preclude Aboriginal people from taking advantage of opportunities in the workforce and will also make recommendations to improve their participation in post-secondary education and the labour market.

On Tuesday 30 April 2013, 1st Session of the 41st Parliament, the House of Commons Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (hereafter, the Committee) adopted the following motion:

That the Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities undertake a study on opportunities for Aboriginal persons in the workforce, and the supports available to them through the federal government including the Aboriginal Skills, Employment and Training Strategy (ASETS) which is up for renewal in 2015; and that this study begin after the summer adjournment.

On Thursday 7 November 2013, 2nd Session of the 41st Parliament, the Committee adopted a similar motion.

The Committee held a total of nine meetings on this study, and heard from 40 witnesses including Aboriginal organizations, not-for-profit associations and some economic sectors, primarily in the resource extraction industry. As well, the Committee heard from officials from the Department of Aboriginal Affairs and Northern Development, and Employment and Social Development Canada (ESDC).[2] It also received numerous briefs that were taken into consideration in the writing of this report. Members of the Committee want to offer their gratitude to all of the witnesses who provided testimony as well as those who submitted briefs. Without their input this study would not have been possible.

The federal government has been offering Aboriginal labour market programming continuously since 1999 when the first Aboriginal Human Resources Development Strategy (AHRDS) was introduced. Since then, progress has been made, but a lot remains to be done to close the education and employment gap between Aboriginal people and the rest of the Canadian population. Members of the Committee recognize that opportunities are knocking on the doors of Aboriginal people, and they want to ensure that Aboriginal people have access to the education, skills development and training and other supports that will allow them to take advantage of these opportunities as employees or as business owners. The pool of working-age Aboriginal people who are either underemployed or out of the labour market is attractive and important to employers, particularly in the natural resource extraction industry.

There are a number of reasons why there is great potential for the Aboriginal population to participate increasingly in the labour market. First, the Aboriginal population is growing rapidly, representing 3.8% of the country’s population in 2006 and 4.3% in 2011. As Statistics Canada indicates, “[t]he Aboriginal population increased by 232,385 people, or 20.1% between 2006 and 2011, compared with 5.2% for the non-Aboriginal population.”[3] That is a growth rate approximately four times that of the non-Aboriginal population during the same period. Although it is possible that these numbers could be influenced by an increase in self-identification as well as changes in methodology between the studies, Statistics Canada scenarios all project that Aboriginal people will continue to form a bigger and bigger percentage of the Canadian population over the coming decades.[4]

Also, Inuit, First Nations and Métis populations are young in comparison with the rest of the Canadian population. According to the National Household Survey (NHS) 2011, their respective median ages were 23, 26 and 31 years old, while the median age for the non-Aboriginal population was 41 years old.[5]

Finally, Aboriginal populations often reside in close proximity to projects with potentially significant employment opportunities, for instance those in the natural resources development sector.

This report is divided into four chapters. The first chapter focuses on the theme of improving Aboriginal education, including early childhood education. It provides general statistical information and, based on the testimony, raises issues, presents possible solutions, and highlights key recommendations. The second chapter discusses ways to improve labour market outcomes for Aboriginal people. Based on the testimony, the issues related to barriers to employment, promising solutions, best practices and recommendations are presented. The third chapter explores how to encourage private-sector investment in skills development as well as how to support Aboriginal businesses. Finally, the fourth chapter focuses on testimony related to the renewal of the Aboriginal Skills and Employment Training Strategy (ASETS) and examines other Aboriginal labour market training programs. It provides recommendations concerning the next steps moving forward to support Aboriginal people in gaining access to post-secondary education and employment opportunities in proximity to their residence and across the country.