effective local approaches to boost quality job creation

12
Effective local strategies to boost quality job creation: Lessons from Canada Anil Verma, Ph.D. Professor & Director Centre for Industrial Relations & Human Resources and Rotman School of Management University of Toronto September 2014

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Economy & Finance


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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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Page 1: Effective Local Approaches to boost quality job creation

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

Page 2: Effective Local Approaches to boost quality job creation

Skill gaps,

shortages

High skill equilibriu

m

Low skill equilibriu

m

Skills surplus

Demand for High Skills

Sup

ply

of H

igh

Ski

lls

Page 3: Effective Local Approaches to boost quality job creation

Traditional Approaches

• Emphasize Supply-side Policies– Boost post-secondary enrollments– Incentives for apprenticeships– Incentives for training– Target key groups: youth, women,

minorities– Bridging programs

Page 4: Effective Local Approaches to boost quality job creation

Not just supply, also demand..

Page 5: Effective Local Approaches to boost quality job creation

-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

Page 6: Effective Local Approaches to boost quality job creation

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

Page 7: Effective Local Approaches to boost quality job creation

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

Page 8: Effective Local Approaches to boost quality job creation

Innovation

Compete Locally

High Quality

Unique Products

Responsive to

customer tastes

Page 9: Effective Local Approaches to boost quality job creation

Specific skills & knowled

ge

Competing Locally

High Quality

Unique Products

Responsive &

Flexible

Page 10: Effective Local Approaches to boost quality job creation

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

Page 11: Effective Local Approaches to boost quality job creation

Role of Industry Networks (Non-profits)

Diffuse Innovation

s

Demonstrate

2

Train

3

Support

4

Legitimate

1

Page 12: Effective Local Approaches to boost quality job creation

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