PARTNERING FOR PROSPERITY. Addressing Mal-employment in Canada Report following discussions on economic enhancement

Transcription

1 PARTNERING FOR PROSPERITY Addressing Mal-employment in Canada Report following discussions on economic enhancement

2 SPOTLIGHT ON RYERSON UNIVERSITY INITIATIVES: Graduate Enterprise Internship (GEI) Ryerson s istem Program To help provide the skilled talent that companies need to succeed in a highly competitive market and offer students real-world experience, Ryerson University launched istem, a matching-funds graduate enterprise internship program supported by an investment from the Federal Economic Development Agency for Southern Ontario (FedDev). This program connects employers with talented candidates in the science, technology, engineering, or mathematics (STEM) fields to fill critical roles in Ontario-based organizations. Interns will gain valuable experience as a paid employee with access to mentors in business and innovation. To benefit participating organizations, Ryerson s istem GEI program offers highly-skilled workers and funding to cover wages. Tax Executives Institute Mentorship Program Let s Talk Tax Let s Talk Tax was launched in January As the result of this program, students selected by the Dean s office of Ryerson University s G. Raymond Chang School of Continuing Education attend events as guests of the Toronto Chapter of Tax Executives Institute (TEI). The program matches each student with a TEI member at each event (mentor and mentee). Ryerson University s Tri-Mentoring Program For 12 years the Tri-Mentoring Program at Ryerson has been assisting culturally and linguistically diverse students with their transition into Ryerson University and providing career-relevant information about entering the workforce after graduation. The program has become a key source of support and development, mentoring over 2,000 students each year. Gateway for International Professionals Ryerson University s G. Raymond Chang School of Continuing Education has developed bridging programs to help internationally educated professionals gain recognition for their previous experience and credentials in order to transition to meaningful employment in Canada. These programs accurately assess the skills of international professionals and provide them with the education and experience needed to succeed in the Canadian workplace. Bridging programs are currently offered in Accounting and Finance, Dietetics and Nutrition, Engineering (through Ryerson s Faculty of Engineering and Architectural Science), Midwifery, Project Management (Middle-Level Managers), Social Work, and Workplace Communication. Gateway bridging programs are funded by the Government of Ontario and the Government of Canada. January 2014

3 Foreword Partnering for Prosperity: Enhancing Employment Opportunities Fulfilling our potential is an important part of the journey towards personal development and prosperity. It is also vital to the development and prosperity of our communities and economy. As an educator, a second generation Canadian, and former Ontario cabinet minister, I am a firm believer and advocate of education. Knowledge, and the process of acquiring it, is the key to unlocking our human potential and the single most effective path we have found to building futures for individuals, communities, and countries. When I first joined the academic community of Ryerson University s G. Raymond Chang School of Continuing Education as a visiting scholar, my research quickly revealed troubling data about the experience of young people and new graduates in today s post great recession economy. Specifically, the weak labour market has been, and continues to be, particularly tough on young workers and new Canadians. Mal-employment of new graduates and recent immigrants is now a well-documented and growing public policy concern. With the persistence of double-digit youth unemployment rates and continued bleak job prospects, more and more voices are joining the conversation to find solutions. In the last year, each week seemed to bring a new report with greater perspective and evidence to potential solutions. I am encouraged by the dialogue and the innovative strategies reported in the literature. I am also optimistic about the innovative partnerships like the Tax Executives Institute (TEI) mentorship pilot Let s Talk Tax and the Graduate Enterprise Internship Program (istem) developed to bridge the gap between student backpack and business briefcase. Facing the worst stagnation since the Great Depression, our responsibility is to innovate and partner in creating a brighter future. I look forward to partnering with you to build a prosperous city, province, and country. Dr. Marie Bountrogianni Interim Dean, The G. Raymond Chang School of Continuing Education Ryerson University

4 Table of Contents Executive Summary Mal-employment Underutilized Skills Mal-employment Among New Graduates Mentoring Matching Skills Training Conclusion Recommendations

5 Executive Summary Mal-employment refers to the employment of college or university graduates in jobs that do not take advantage of their abilities and do not require a post-secondary education to do the work. It results in significant earning loss and removes the economic benefit of a college diploma or university degree. Mal-employment is a major concern to many Canadians, but it is a much bigger problem among new graduates and recent immigrants. Canada s ability to maintain economic competitiveness and prosperity relies on the effectiveness of our workforce. We simply cannot afford to shut out skilled immigrants and new graduates from the labour market. As Canada and countries across Europe face an aging population and low birth rates, the need for foreign skilled workers is higher now than ever before. Despite attracting internationally trained skilled workers, Canada is not integrating immigrants in a way that maximizes their contribution to the economy. According to the Organisation for Economic Co-operation and Development (OECD), as cited by McMahon (2013), only 60% of highly skilled Canadian immigrants are working in professional jobs compared to an OECD average of 71%. 1 This indicates a high rate of underutilization of immigrants skills among OECD countries but even more so in Canada. Failing to integrate skilled immigrants into the labour market results in fewer immigrants selecting Toronto as a destination of choice. According to Citizenship and Immigration Canada (CIC) statistics, the number of immigrants who chose to settle in Toronto in 2012 dropped by approximately 10,000 as compared to The combined under-employment and decline in the number of immigrants will cost the Canadian economy about $20 billion in foregone earnings, according to CIBC World Markets. 3 Equally affected by under-employment are new graduates. While the number of Canadians with a post-secondary certificate, diploma, or university degree has been steadily increasing, the number of high-paying full-time jobs is rising at a quarter of the pace of low-paying jobs. The economic principle of supply and demand requires an equal increase in the number of job opportunities in order to maintain equilibrium in the economy. However, despite shifting into a knowledge-based economy, Canada is experiencing a situation where the two sides of the equation are not equal. This is forcing many young graduates into lowskill jobs, resulting in a situation commonly referred to as mal-employment. 1 McMahon, T. (April 17, 2013). Land of misfortune. Maclean s. 2 Citizenship and Immigration Canada. (August 1, 2013). Facts and figures Immigration overview: Permanent and temporary residents. Retrieved from 3 Tal, B. (August 13, 2012). Long-term immigration approach needed to maximize newcomers employability. CIBC World Markets. Retrieved from Partnering for Prosperity: Addressing Mal-employment in Canada 1

6 Mal-employment Lack of language proficiency, no Canadian work experience, credential certification challenges, and employers averse to hiring immigrants are some of the barriers new immigrants face in Canada. The issue of credential certification is one of the biggest obstacles facing internationally trained immigrants. Most challenging for new immigrants is the labyrinth of institutional processes that an internationally trained professional must undertake to secure certification. It is not uncommon for a professional certification granting body to require Canadian work experience as proof of non-technical job skills as well as a good grasp of the Canadian work culture. The irony, however, is that to acquire the one year of relevant Canadian work experience needed to meet the certification criteria, one must secure a position which almost always requires at least one year of Canadian work experience. These systemic regulatory barriers prevent new immigrants from acquiring the non-technical experience required to further their employment prospects. 4 The global movement of people has resulted in different policies being implemented in various jurisdictions to address the credential recognition problem. Australia, for example, has adopted an onshore immigration model aimed at international students who graduate from Australian universities. Since the mid-1990s, Australia has increased its focus on employer-sponsored skilled migration, resulting in one of the lowest unemployment rates for immigrants in the OECD. Australia is one of only three OECD countries where immigrant unemployment rates are virtually the same as for the locally born. The market-influenced immigration program linking skills to jobs could be considered a step towards recognition of foreign credentials. The offer of a skilled job could be deemed as recognition of credentials, although extra certification procedures may also be required. In addition, Australia has established a national office on overseas skills recognition to help employers assess the skills of immigrants before emigration. A closely related program is the Canadian Experience Class (CEC), introduced in The CEC is designed to streamline the process of becoming a permanent resident in Canada for foreign workers and international students. The program mainly targets those who either studied or worked in Canada and subsequently possess the highly sought-after Canadian work experience. A joint report by the Ontario Chamber of Commerce, the Mowat Centre for Policy Innovation, and Leger Marketing sets out several recommendations for collectively building a stronger provincial economy. Specifically, it recommends that Ontario universities and colleges continue to expand their recruitment initiatives aimed at international students. Furthermore, the report recommends that post-secondary institutions provide more on-campus settlement and integration services and promote the CEC program to all foreign students, including those without a job offer, so they may consider applying for permanent resident status. 5 However, for this program to have a discernible impact on the economy, a larger portion of immigrants coming to Canada will need to be drawn from the pool of international students similar to the practice in Australia. To improve job market integration of new immigrants and to address the foreign credential 4 Girard, E. & Bauder, H. (2005). Barriers blocking the integration of foreign-trained immigrant professionals: Implications for smaller communities in Ontario. Immigrant Labour Project (unpublished MA thesis), University of Guelph. Retrieved from labour/immigrant_credentials.pdf 5 Ontario Chamber of Commerce, Mowat Centre for Policy Innovation, Leger Marketing. (2013). Emerging stronger Retrieved from 2 The G. Raymond Chang School of Continuing Education

7 recognition issues, there are calls for a re-design of the licensing processes of the various professional bodies. Improved collaboration between public and private stakeholders is needed to find a better balance between the need for public protection and fair access to professions (Girard & Bauder, 2005). Reforms can be complex, but they can also be as simple as streamlining process. In Alberta, for example, internationally trained veterinarians traveled to the U.S. or eastern Canada to take their qualifying exams. Based on discussions with key stakeholders, an exam centre was built in Calgary, allowing for more exam dates and saving candidates the added expense of travelling outside of Alberta. Also developed in Alberta is an automated online self-assessment tool to help internationally trained physicians decide whether to apply for an eligibility review (Government of Alberta, 2010). 6 Underutilized Skills Jeffrey Reitz, in his 2005 article Tapping Immigrants Skills: New Directions For Canadian Immigration Policy In The Knowledge Economy, 7 outlines the failure in human capital theory as it applies to credential criteria that in a properly functioning system should afford greater potential access to the knowledgebased economy. Reitz examines three policy options. The first, reducing immigration levels, is considered impractical. Canada remains dependant on immigration for economic and population growth. The second, accepting the downward employment trend among skilled immigrants, is simply unappealing for both social and economic reasons. Declining immigrant earnings is a significant economic policy concern. Census data reports show that recent immigrants earned 30% to 40% less Immigrants who receive pre-arrival information perform better. than their Canadian-born counterparts in 2006 compared to 10% to 15% less in the late 1970s. 8 While many immigrants are willing to sacrifice their own career aspirations for a better future for their children, there are significant negative social consequences to ignoring the increasing poverty levels among immigrants. As an alternative to the two options, Reitz proposes a third policy option namely increasing institutional capacities to utilize the skills and talents of immigrants. In particular, he proposes access to better web-based information, including pre-arrival information and self-assessment tools; funding support for credential assessment services and programs to enhance skills transferability; competency-based assessment frameworks; and subsidized workplace internships and training programs to bridge the gap between what immigrants already know and can do and the additional skills and knowledge needed to work in Canada. Results of a recent evaluation of the Canadian Immigrant Integration Program (CIIP), a pre-arrival orientation initiative funded by Citizenship and Immigration Canada to help prepare newcomers for economic integration while still in their country of origin, indicated 91% of participants strongly agreed that CIIP was useful and 99% of the respondents reported that the program had improved their understanding of how to find relevant jobs in Canada. 9 6 Government of Alberta. (November 23, 2010). Alberta moves forward in recognizing foreign-earned qualifications. Retrieved from 7 Reitz, J. G. (2005). Tapping immigrants skills: New directions for Canadian immigration policy in the knowledge economy. Law and Business Review of the Americas, 11(3/4) (Summer): Office of the Fairness Commissioner, Toronto. (2013). A fair way to go: Access to Ontario s regulated professions and the need to embrace newcomers in the global economy. 9 Citizenship and Immigration Canada. (February 12, 2013). Overseas orientation program celebrates 20,000 graduates. Retrieved from Partnering for Prosperity: Addressing Mal-employment in Canada 3

8 In a knowledge-based global labour market, credential recognition and the transferability of skills are central to a successful immigration strategy. To be competitive in a global economy, Canada s institutional capacity (e.g., that of employers, government, professional associations, educational institutions, labour organizations) must remove systemic barriers which prevent qualified immigrants from being employed in knowledge-based occupations. Unfortunately, employers, especially within small- and mediumsized businesses, are unfamiliar with assessing the international competencies of job applicants. Making formal credential recognition easier will help familiarize employers with international standards and remove a perceived hiring risk. Continuing to transform and modernize Canada s immigration policies and settlement model are essential if we are to overcome the challenges of a slow-growing knowledge-based economy. Collaborative partnerships will be key to developing innovative strategies to incorporate and maximize the knowledge, skills, and talents of new immigrants. Canada s future success and growth depend on how well we link workers to jobs and provide for the international transferability of skills. Eaton (2013) 10 contends the problem is not a skills knowledge mismatch but rather a failure to make connections between employers and immigrants. She advocates building on strategies we know work connecting new immigrants to professional networks through mentors and providing bridge training to help skilled newcomers obtain their licence or certificate in their profession or trade. For example, Ryerson University s G. Raymond Chang School of Continuing Education has successfully developed bridge training programs for internationally educated professionals in various fields. Outstanding achievements include the following: since the program began in 2005, 94% of dietitian graduates have passed the licensure exam and more than 87% of graduates found work in their field; 89% of social work graduates found employment within one year of graduating; and since the midwifery program began in 2002, registration exam-pass rates have increased from 32% to 100%, and 90% of graduates became registered as midwives within three months of graduating. 11 Mentoring is a proven initiative we know works. For a number of years, Deloitte, a leading professional services firm, has had hundreds of employees and senior managers act as mentors to recent immigrant job seekers. In addition to giving skilled newcomers an opportunity to gain Canadian experience, the mentoring program helps Deloitte tap into the immense immigrant talent pool. A recent study by Accenture and ALLIES (Assisting Local Leaders with Immigrant Employment Strategies) Canada reported that within 12 months of completing a mentoring program, full-time earnings of participants rose from $36,905 to $59,944, an improvement of 62%. Similarly, there was a substantive improvement in the number of mentees who were employed in their field of expertise from 27% at the start of the mentoring to 71% after 12 months of mentoring (Accenture and ALLIES, 2013). 12 New immigrants tend to settle in major urban centres. Currently, three major gateway cities are home to the largest portion of immigrants in Canada. This settlement pattern is largely attributed to the presence of family and established multicultural communities in larger metropolitan 10 Eaton, M. (April 23, 2013). Employers must take proactive approach to integrating immigrants. Financial Post. 11 Gateway for International Professionals. (2013). [Internal program records]. Unpublished raw data. 12 Accenture and ALLIES. (2013). The results are in: Mentoring improves employment outcomes for skilled immigrants. Retrieved from 4 The G. Raymond Chang School of Continuing Education

9 areas. Three destinations Vancouver, Toronto, and Montreal are a logical economic choice, since large cities offer a wider range of employment options. It is reasonable that new immigrants with degrees would choose to locate in places where there are large labour markets specializing in their industry and occupation. However, recent studies show labour force participation rates and incomes for new immigrants are higher in rural areas than in urban centres. By supplying immigrants with accurate labour market information, it would be reasonable to expect, similar to their Canadian counterparts, that they would be willing to settle in smaller locations because there is better remuneration and a better match of their skills to a job. 13 The Canadian government s efforts to influence and encourage immigrants to consider a wider range of settlement options (regional distribution) is showing positive results in both the attraction and retention of newcomers. For example, the federal government has made policy changes allowing foreign students living outside the three major cities to work off campus a maximum of 20 hours per week while attending school and 40 hours per week in the summer. In addition to attracting international students to smaller urban centers, the government initiative provides students with the opportunity to gain valuable Canadian work experience while pursuing their academic degrees. Should graduate international students choose to remain in Canada, their Canadian work experience removes a common employment barrier. The widely publicized Canada-wide Provincial Nominee Program (PNP) is designed to increase and distribute the economic benefits of immigration. With the PNP, provincial governments have a larger say in what kind of immigrants they want to bring to their province and how to settle them. A case study of Manitoba s PNP shows an increased attraction of skilled immigrants into the province. By developing partnerships with various ethnocultural organizations to provide settlement and employment support, Manitoba has been successful in attracting, retaining, and integrating much-needed skilled immigrants to the province. Furthermore, the Manitoba Immigration Council was established to advise the provincial government on ways of attracting new immigrants. In addition, measures to address barriers to qualification recognition, language training, as well as direct work with employers also contributed to the success of Manitoba s PNP. A new immigration application model, the Expression of Interest (EOI) system was designed to create a pool of skilled workers and is expected to be in place by First developed in New Zealand, the system has also been adopted by Australia. This new application system will give prospective immigrants an opportunity to express their interest while still in their home countries, to become a Canadian permanent resident. It is not a request for a permanent residence visa but a request to become a candidate for permanent residency. Designed as a demand-driven approach for economic immigrants, the EOI applications will be categorized into pools based on qualifications and experience. Employers looking for more than just temporary workers can search the candidate database. A match would trigger an invitation to the candidate to submit an immigration application. The EOI model has the potential to reduce the underutilization of immigrant skills. From this new model Canada will benefit from the speedy selection of the most skilled international talent while employers benefit from access to a potential pool of candidates. More importantly, involving employers in the selection process means that new immigrants could arrive with a job in their profession Carter, T., Morrish, M., & Amoyaw, B. (2008). Attracting immigrants to smaller urban and rural communities: Lessons learned from the Manitoba Provincial Nominee Program. Journal of International Migration and Integration, 9(2) (June 2008): Retrieved from 14 Chase, S. (January 2, 2013). Ottawa to play matchmaker for foreign workers. The Globe and Mail, p. A.1 Partnering for Prosperity: Addressing Mal-employment in Canada 5

10 Mal-employment Among New Graduates Mal-employment affects recent university graduates who are often forced to choose between unemployment and under-employment. The new economic reality combined with increased levels of student debt is delaying the financial independence of the Millennial generation. The 2011 Census shows that 42% of young adults (20 29 years of age) are living with their parents compared to 32% a decade earlier. Underemployment is causing these types of milestones of adulthood to be delayed for these new graduates, who are often referred to as boomerang kids, in delayed adulthood, or experiencing failure to launch. An estimated one in three yearolds end up in low-skilled jobs. One view attributes the high level of under-employment among new graduates to an overvalued status of university degrees. Proponents of this view contend students enrolling in university believe that a degree, in fact any degree, is the key to a better job and greater earning potential. Post-secondary students pay no attention to prospective careers nor to future job prospects associated with the program they are entering (Coates & Morrison, 2013). 15 While studies conclusively show university graduates on average earn more income over a career, a troubling trend is emerging where Canada has the highest percentage of post-secondary educated workers who earn less than half of the national median employment income. To avoid post-graduation under-employment, students are advised to supplement their education with co-op programs, relevant summer job experience, and volunteer activities throughout their schooling. Responding to the demands of a knowledge-based economy, education levels among young adults continue to increase, yet job opportunities are decreasing. As world economies emerge from the great recession they are doing so with the lowest rate of growth in over 30 years. As a result, new graduates are facing an inelastic labour market. A recent study by the United States Bureau of Labor Statistics, showed that of the 41.7% jobs occupied by college graduates, only 28.6% required a degree. The difference represents college graduates working in jobs for which they are overqualified. 16 Ontario has the highest aggregate post-secondary education completion rate in Canada. At 57% it is higher than the OECD average of 32%. 17 However, changes in the labour market and the nature of work appear to be outpacing changes in education and skills training. Despite a larger pool of educated young people, employers are having difficulties recruiting candidates with specific skills for vacant positions. According to a recent survey by Randstad Canada, two-thirds of businesses report having trouble finding qualified personnel to meet their needs. There is a mismatch between the training of young Canadians and current labour market demands. This mismatch has led to an acute shortage of workers in particular sectors of the economy Coates, K. & Morrison, B. (January 16, 2013). The graduate s million-dollar promise. Maclean s. 16 Vedder, R., Denhart, C. & Robe, J. (January 2013). Why are recent college graduates underemployed? University enrollments and labor-market realities. Center for College Affordability and Productivity. Washington, DC. Retrieved from 17 Statistics Canada, Council of Ministers of Education, Canada. (September 2012). Education indicators in Canada: An international perspective. Canadian Education Statistics Council, Ottawa. Retrieved from 18 Sorensen, C. & Gillis, C. (January 16, 2013). The new underclass: Why a generation of well-educated, ambitious, smart young Canadians has no future. Maclean s. 6 The G. Raymond Chang School of Continuing Education

11 The cost of under-employment and unemployment of new graduates to the economy is enormous. According to The Conference Board of Canada, skill gaps cost the Ontario economy up to $24.3 billion in foregone GDP in addition to $4.4 billion in federal tax revenues and $3.7 billion in provincial tax revenues. At the employer level, the costs include lower productivity as well as lower sales and profits. For individuals, the costs of skills underutilization include, but are not limited to, lower wages, higher unemployment rates, and lower levels of employment participation. 19 Echoing the Conference Board of Canada report, a study of under-employment in Scotland also found a mismatch of skills required by the labour market and the university education of young adults. Both studies underscore the importance of aligning skills and qualifications from colleges/universities to employment opportunities in the labour market. 20 Applying the economic model of supply and demand, analysts point out that the education premium is narrowing, while the supply of new post-secondary school graduates is increasing. The employment gains, however, are primarily occurring in the lower-paying food and accommodation sector. Even though Ontario has the highest proportion of work-age people with tertiary education among all OECD countries, since 1990 the proportion of youth employed in lower-skilled occupations remains unchanged. 21 Strategies to address post-secondary graduate mal-employment range from suggestions to increase access to low-cost online degree programs and massive open online courses (MOOCs), to combining academic studies with work experience by expanding the availability of co-operative education opportunities. Studies have consistently shown that co-op graduates report higher salaries, higher employment rates, more permanent as opposed to temporary positions, and a better match of educational experience with job skills and knowledge. 22 Yet the number of full-time students involved in university co-ops in Ontario is just over 10%. 23 Mentoring Mentoring opportunities for students is another strategy that has produced promising results in a variety of environments. Public and private venture advocates of mentoring programs refer to it as gap fillers and the secret sauce. Mentoring is reported to help students develop a more defined understanding of their career goals and gain insights into the professional world. 19 Munro, D. & Stuckey, J. (2013) The need to make skills work: The cost of Ontario s skills gap. The Conference Board of Canada. Retrieved from 20 The Scottish Parliament. (April 17, 2013). Economy, Energy and Tourism Committee, 6th Report, 2013 (Session 4) Underemployment in Scotland. Retrieved from 21 Certified General Accountants Association of Canada. (October 2012). Youth unemployment in Canada: Challenging conventional thinking? Retrieved from 22 Downey, J., Kalbfleisch, J.G., & Truman, R.D. (October 2002). Co-operative education: Greater benefits, greater costs. Waterloo Centre for the Advancement of Co-operative Education. Retrieved from 23 Council of Ontario Universities. (October 2012). Transforming Ontario universities. Retrieved from Ontario Ministry of Training, Colleges and Universities (MTCU). Enrolment, table 1: Summary of enrolments in Ontario universities, Retrieved from Partnering for Prosperity: Addressing Mal-employment in Canada 7

12 Matching Skills To be job-ready and to avoid post-graduation disappointment, students and post-secondary institutions need to do a better job of aligning educational paths with future workforce needs. Universities and governments need to develop better tools to project future skills requirements and identify emerging market trends. Labour market information currently available has also proven to be inadequate and in need of retooling. Access to timely labour market research will be vital to addressing the current skills mismatch. By aligning the relevant skills development of new graduates with the skill requirements of the labour market, positive results can be achieved for both students and employers. Students for their part can augment their education with career-related summer job opportunities and relevant volunteer activities. Training The lack of employer-sponsored training has been a recurring criticism of Canadian employers. Over the years a number of economic reports have identified the need for Canadian firms to invest more in employee training to maintain skills and improve productivity. Compared to U.S. businesses, Canadian firms continue to under-invest in employee training. By 2010, spending on learning and development in Canada had fallen 13% since 2008 and was down 40% since its peak in the early 1990s. 24 As a result, government commitment to skills training incentives through tax credits and matching training funds continues to be identified as an important part of the training equation. A more flexible training system is needed to better align evolving labour market and workforce needs to the fastest growing fields in the economy. Recommendations for a more responsive training model include regional multi-stakeholder training hubs, central funding models, and training leaves. 25 With the labour market unlikely to return to its pre-recession composition, closer collaboration between post-secondary institutions and employers to develop more labour market oriented training curriculum, will create a smoother transition from school to work. Employers play a significant role in employee training. A recommendation following a Toronto Roundtable on Employer Investment in Workplace Learning urges the education sector to develop pathways for employers to find and access curricula that meets their specific skill requirements. By creating modular curriculum, training can be delivered in stages and aligned to the specific skill requirements of employers. 26 By working in partnership with business to remove the most significant barriers to employer-sponsored skills training, obstacles to labour productivity and economic growth are also removed. With the collaboration of all stakeholders, the development of a joint plan for improving the transition from school to work can be hastened. 24 Lavis, C. (October 2011). Learning and development outlook 2011: Are organizations ready for learning 2.0? The Conference Board of Canada. 25 Ontario Chamber of Commerce. (June 2011). Protecting our most valuable resource: The business case for lifelong learning and job-based training. Toronto. Retrieved from 26 Saunders, R. (April 2008). Employer investment in workplace learning: Report on the Toronto roundtable. Work and Learning Knowledge Centre and Canadian Policy Research Networks. Ottawa. Retrieved from 8 The G. Raymond Chang School of Continuing Education

13 The Ontario Chamber of Commerce, following a survey in 2010, recommended the modernization of current workforce training programs in the following ways: harmonizing the different funding streams for workforce training into one central fund accessible to all applicants the establishment of central training hubs managed by regional stakeholders familiar with regional economic priorities pooling of resources through partnerships the adoption of a client-centric training approach targeting emerging skills demands Compared to U.S. businesses, Canadian firms continue to under-invest in employee training. By 2010, spending on learning and development in Canada had fallen 13% since 2008 and was down 40% since its peak in the early 1990s.24 Partnering for Prosperity: Addressing Mal-employment in Canada 9

14 Conclusion As Canada moves into a more competitive knowledge-based economy, tapping the talents of immigrant professionals as well as new graduates is crucial to the country s future economic prosperity. Currently, because of the increasing mal-employment or underutilization of the skills of new graduates and new immigrants, Canada is in danger of falling behind in the highly competitive global economy. As in other jurisdictions, during the present economic recession high departure rates among business and skilled newcomers whose skills are being under-utilized can be expected. While some steps have been taken to address these problems, more needs to be done in the years ahead. The following recommendations are important building blocks to Canada s path to prosperity: aligning university or college skills with the needs of the labour market, developing flexible training programs that fulfill employers needs, improving foreign skills certification programs, increasing opportunities for mentorships and/or co-ops for both recent immigrants and new graduates, and developing better immigration models. The success of all the aforementioned programs will depend on how well stakeholders collaborate in both their design and implementation. In a knowledgebased economy the intra- and inter-dynamics of education, immigration, and the labour market are more complex and pose a fundamental challenge to all stakeholders. With the structure of the economy changing, it will take all of us individuals, government, education, business, and NGOs to partner for prosperity. Acknowledgement This report was made possible with the research support of Habib Abdullahi, 4th-year Accounting student in Ryerson University s Ted Rogers School of Business Management and Research Support intern at Ryerson s G. Raymond Chang School of Continuing Education. 10 The G. Raymond Chang School of Continuing Education

15 Recommendations Provide access to more flexible educational programs such as continuing education, online, and part-time learning programs (e.g., low-cost degrees/certificates). Increase experiential learning opportunities for both new graduates and recent immigrants. Develop closer collaboration between employers and post-secondary institutions. Increase the number of co-op programs for students to gain necessary hands-on experience, as well as to test their fit and interest in a field and assess career opportunities. Develop more mentoring programs. Harmonize different funding streams for workforce training into one central fund accessible to all applicants. Establish central training hubs managed by regional stakeholders familiar with regional economic priorities. Develop and implement a client-centric training approach targeting emerging skills demand. 11

16 Office of the Dean The G. Raymond Chang School of Continuing Education Ryerson University 350 Victoria Street Toronto, ON M5B 2K3 ryerson.ca/ce This report is available online as a PDF: ryerson.ca/ce/mal-employment