3.1 Entrepreneurs’ skills

One important factor for the success of Canadian manufacturing businesses is the competence of entrepreneurs. They must be very knowledgeable about foreign markets[55] and the skills associated with commercializing and selling products.[56]

It is also very important to instill a sense of entrepreneurship in students who are not studying management, and to promote entrepreneurship as a viable career path.[57] For example, at Simon Fraser University (Burnaby, British Columbia), every student now has an opportunity to obtain an entrepreneurial certificate, and there is a master’s program for students in sciences, technology, engineering and math that teaches them the basics in business management.[58]

3.2 Labour market information

Workers in the manufacturing sector have jobs that require specific skills, and generally have good working conditions. Specialized workers graduating from technical colleges and CEGEPs bring specialized technical capacity to the workforce.[59]

Labour Market Information (LMI) contains useful data for employers and students on what skills are and will be in demand.

Employment and Social Development Canada has created a model called the Canadian Occupational Projection System (COPS) that provides forecasts of shortages and surpluses by occupation. Among the 262 occupations analyzed in COPS, 30 are considered to be facing a shortage for the period 2015–2024. This includes 8 occupations associated with the natural and applied sciences (e.g., aerospace engineers), 12 in the field of health (e.g., nursing aides) and 6 occupations in trades, transport and equipment operators (e.g., welders).

Furthermore, several witnesses indicated that their industry is experiencing shortages of highly skilled workers, in areas such as entertainment software,[60] furniture manufacturing[61] or the chemistry industry.[62]

According to a document from the Canadian Chamber of Commerce that was submitted in the context of this study, Canada does a good job producing statistics on labour requirements, such as vacant positions, in major geographic areas. Data are lacking, however, for students’ skills. In addition, the sample of data used to determine skills at the local level (Statistics Canada’s labour force survey) is deemed to be too small to obtain detailed LMI at the local level.

RECOMMENDATION 2

The Committee recommends that the federal government improve the labour market information it produces, notably connecting jobs in occupations in demand (such as in the sciences and specialized trades), locally and at the national level, with skills available with job seekers.

Changes are needed in the manufacturing sector, and new fields are being created, but it takes time to begin teaching them in Canadian institutions.[63] For example, Canada still doesn’t have any teaching programs on additive manufacturing, while several other countries already have at least one.[64]

Manufacturing sector councils could bring together representatives of the provincial, territorial and federal governments, teaching institutions and business and labour associations. This would improve cooperation between the private sector and teaching institutions with regard to the skills being sought by businesses.[65]

Certain witnesses also proposed providing wage subsidies to businesses that offer workplace opportunities for students with a view to better aligning business needs with the skills students have to offer,[66] particularly in small and medium enterprises (SMEs).[67] Such “co-op” programs could also be offered in all disciplines.[68]

RECOMMENDATION 3

The Committee recommends that the federal government establish sector councils in order to make students and post-secondary institutions more aware of what skills are required by manufacturing businesses, advanced manufacturing, in emerging fields that will be important to Canada’s growth. These sector councils could be tasked to work with local educational institutions to create streams to employment, including work experience for students, and share best practices on processes and innovation as well as promoting investment.

3.3 Training employees and temporary immigration

More assistance for retraining and training workers who lose their jobs in a declining field could help them to acquire skills that are in demand.[69] An example of such programs is CertWORK+, a collaboration between the Canadian Labour Congress and the CME. It is a certification program that enables workers who have lost their job in the manufacturing sector to have their skills certified in order to enhance their employability.[70]

One witness even proposed that because of the pace of technological change, “reverse” co-op programs could be created, whereby employees would learn new production processes in colleges and universities and put them into practice in their companies.[71]

Programs such as the Temporary Foreign Worker Program (TFWP) are another way to address labour shortages.[72] Some changes were put in place to the TFWP in April 2011, introducing a “more rigorous assessment of the genuineness of the job offer” (made by the employer when searching for local employees) and putting “a limit of the length of time a temporary foreign worker may work in Canada before returning home”, to prevent abuse of the program. According to the most recent data, the number of positions held by temporary foreign workers declined from 269,575 in 2012 to 113,580 in 2015. Some witnesses said that there have been problems with the program since then, primarily with the labour market impact assessment necessary to get foreign workers.[73]

I think that there are few mechanisms for immigration and refugee and talent acquisition. When international students finish the two years, there is no process, really, to see their value added to the whole ecosystem. We are not guiding them, we are not driving them, and there is no innovation hub or centre to bring them and another system together.[74]

Farzad Rayegani

Polyechnics Canada

Moreover, a rapid need for highly skilled workers is often required in industries such as the automotive industry.[75] Many businesses would like the temporary foreign workers they hire to be able to eventually become permanent residents, but permanent immigration programs are generally aimed at more qualified workers.[76] Certain organizations do not see the need for the TFWP, and believe we should look first for solutions that involve training Canadian workers.[77]

Finally, several witnesses feel that we should try to keep foreign students in Canada – including those who wish to become entrepreneurs – by expediting the permanent resident process.[78]

RECOMMENDATION 4

The Committee recommends that the federal government increase options to address labour shortages: above all, by promoting on-the-job-training of Canadian and prospective employees, either through an increase in the Canada Job Grant or other means; also, by examining the possibility of using the Temporary Foreign Worker Program as a gateway to permanent immigration; and by expediting the process through which foreign students can become permanent residents, as a way to attract and retain top talent and skilled workers.