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This expert meeting of the ESSSA initiative will provide a unique opportunity to share international experience in addressing the issue of skills mismatch as a way to contribute to more inclusive growth and good quality job creation across Southeast Asian countries.
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Effective local strategies to boost quality job
creation: Lessons from Canada
Anil Verma, Ph.D.Professor & Director
Centre for Industrial Relations & Human Resourcesand
Rotman School of Management
University of Toronto
September 2014
Skill gaps,
shortages
High skill equilibriu
m
Low skill equilibriu
m
Skills surplus
Demand for High Skills
Sup
ply
of H
igh
Ski
lls
Traditional Approaches
• Emphasize Supply-side Policies– Boost post-secondary enrollments– Incentives for apprenticeships– Incentives for training– Target key groups: youth, women,
minorities– Bridging programs
Not just supply, also demand..
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
10.90
0.31
0.66
0.54
0.43
-0.06
0.370.39
0.49
0.15
0.26
Rural Urban
(1.17, 1.04)
SKILLS DE-MAND
SKILLS SUPPLY
Skills supply and demand in Ontario
Skills supply and demand in Ontario
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1
-1
-0.8
-0.6
-0.4
-0.2
0
0.2
0.4
0.6
0.8
10.90
0.31
0.66
0.54
0.43
-0.06
0.370.39
0.49
0.15
0.26
Rural Urban
(1.17, 1.04)
SKILLS DE-MAND
SKILLS SUPPLY
First Theorem of the Skilled Jobs Economy
Utilization of enhanced skills depends largely on a demand for enhanced skills
Demand for enhanced skills depends on innovation and creativity at the workplace
Workplaces vested in the status quo do not contribute to demand for enhanced skills
A culture of innovation creates a steady demand for enhanced skills
Innovation
Compete Locally
High Quality
Unique Products
Responsive to
customer tastes
Specific skills & knowled
ge
Competing Locally
High Quality
Unique Products
Responsive &
Flexible
Public Policies,
Programs &
Institutions
Private and Not-For-
Profit Policies,
Programs &
Institutions
More Value-added Products & Services
Persuade People to Acquire Higher Skills
Increase in Employer demand for Higher Skills
Increase in Supply of Higher Skills
Improve productivity, quality, cost, service;Promote innovation
A Model of Policy Interventions for a Shift to a High-skill Equilibrium
Fund & Promote Education & Training
Policy Inputs
High Skill Surplus
(Demand<
Supply)
High-Skill Equilibrium (demand
=supply)
High Skill Shortage(Demand
> Supply)
Outcomes
Feedback for Policy Adjustments
Demand-side Processes
Supply-side Processes
Role of Industry Networks (Non-profits)
Diffuse Innovation
s
Demonstrate
2
Train
3
Support
4
Legitimate
1
Role of Universities & Colleges
• Niagara College as an Exemplar– Programs pertinent to local industry:
viniculture, tourism & hospitality– Local labour market surveys– Internships– Research Projects– Contract research with industry
