OECD Reviews on Local Job Creation O E C Employment and Skills Strategies in Canada D R e v ie The Local Job Creation series focuses on the role of employment and training agencies in contributing to job w OECD Reviews on Local Job Creation creation and productivity. It explores how OECD countries are implementing labour market and skills policy s o and putting measures in place at the local level to stimulate quality employment, inclusion and growth. n L o Employment and Skills Contents c a Executive summary l J o Strategies in Canada b Reader’s guide C Chapter 1. Policy context for employment and skills in Canada re a Chapter 2. Ontario’s employment and skills system tio n Chapter 3. Quebec’s employment and skills system Chapter 4. Overview of the Canadian case study areas Chapter 5. Local job creation dashboard fi ndings in Canada Chapter 6. Towards an action plan for jobs in Canada: Recommendations and best practices a d a E m p lo y m e n t a n n d S k ills S t r a t e a g ie s in C a n Consult this publication on line at http://dx.doi.org/10.1787/9789264209374-en. a d a C This work is published on the OECD iLibrary, which gathers all OECD books, periodicals and statistical databases. Visit www.oecd-ilibrary.org for more information. ISBN 978-92-64-20936-7 9HSTCQE*cajdgh+ 84 2014 05 1 P OECD Reviews on Local Job Creation Employment and Skills Strategies in Canada ThisworkispublishedundertheresponsibilityoftheSecretary-GeneraloftheOECD.The opinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficial viewsofOECDmembercountries. This document and any map included herein are without prejudice to the status of or sovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundaries andtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2014),EmploymentandSkillsStrategiesinCanada,OECDReviewsonLocalJobCreation,OECD Publishing. http://dx.doi.org/10.1787/9789264209374-en ISBN978-92-64-20936-7(print) ISBN978-92-64-20937-4(PDF) Series:OECDReviewsonLocalJobCreation ISSN2311-2328(print) ISSN2311-2336(online) ThestatisticaldataforIsraelaresuppliedbyandundertheresponsibilityofthe relevantIsraeliauthorities.Theuse ofsuchdatabytheOECDiswithoutprejudicetothestatusoftheGolanHeights,EastJerusalemandIsraeli settlementsintheWestBankunderthetermsofinternationallaw. Photocredits:Cover©AndyDeanPhotography/Shutterstock.com;©djgis/Shutterstock.com. CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/about/publishing/corrigenda.htm. ©OECD2014 Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECDpublications,databasesand multimediaproductsinyourowndocuments,presentations,blogs,websitesandteachingmaterials,providedthatsuitable acknowledgmentofthesourceandcopyrightownerisgiven.Allrequestsforpublicorcommercialuseandtranslationrightsshouldbe submittedtorights@oecd.org.Requestsforpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbe addresseddirectlytotheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdudroitdecopie (CFC)[email protected]. PREFACE – 3 Preface Across the OECD, policy makers are grappling with a critical question: how to create more and better-quality jobs? The recent financial crisis and economic downturn have had serious consequences across most OECD countries, with rising unemployment rates and jobs being lost across many sectors. Indeed, for some countries, the effects the downturn brought with it are continuing, if not amplifying. Shrinking public budgets in some countries also mean that policy makers must now do more with less. In this context, it is necessary to think laterally about how actions in one area, such as employment and training, can have simultaneous benefits in others, such as creating new jobs and better supporting labour market inclusion. Over recent years, the work of the OECD LEED Programme on Designing Local Skills Strategies, Building Flexibility and Accountability into Local Employment Services, Breaking out of Policy Silos, Leveraging Training and Skills Development in SMEs, and Skills for Competitiveness has demonstrated that local strategies to boost skills and job creation require the participation of many different actors across employment, training, economic development, and social welfare portfolios. Employers, unions and the non-profit sector are also key partners in ensuring that education and training programmes provide the skills needed in the labour markets of today and the future. The OECD Reviews on Local Job Creation deliver evidence-based and practical recommendations on how to better support employment and economic development at the local level. This report builds on sub-national data analysis and consultations with local stakeholders in four case study areas across two provinces. It provides a comparative framework to understand the role of the local level in contributing to more and better quality jobs. The report can help federal, provincial and local policy makers in Canada build effective and sustainable partnerships at the local level, which join-up efforts and achieve stronger outcomes across employment, training, and economic development policies. Co-ordinated policies can help workers find suitable jobs, while also stimulating entrepreneurship and productivity, which increases the quality of life and prosperity within a community as well as throughout the country. I would like to warmly thank Employment and Social Development Canada, the Ontario Ministry of Training, Colleges, and Universities and the Quebec Ministry of Employment and Social Solidarity (Ministère de l’Emploi et de la Solidarité Sociale Québec) for their active participation and support of the study. Sergio Arzeni, Director, OECD Centre for Entrepreneurship, SMEs and Local Development EMPLOYMENT AND SKILLS STRATEGIES IN CANADA – © OECD 2014 ACKNOwLEDGEMENTS – 5 Acknowledgements This review has been written by the Local Economic and Employment Development (LEED) Programme of the Organisation for Economic Co-operation and Development (OECD) as part of a project undertaken in co-operation with Employment and Social Development Canada, the Ontario Ministry of Training, Colleges, and Universities and the Quebec Ministry of Employment and Social Solidarity (Ministère de Emploi et Solidarité Sociale Québec). This project is part of the OECD LEED programme of work under the leadership of Sylvain Giguère. The principal authors are Thomas Townsend (University of Ottawa), Jonathan Barr and Sylvain Giguère (OECD secretariat). Francesca Froy provided valuable comments and feedback on this report. Thanks also go to Michela Meghnagi for her work on the data analysis as well as Elisa Campestrin, François Iglesias, Malika Taberkane and other colleagues in the OECD LEED Programme for their assistance with this report. Special thanks should be given to federal and provincial officials who contributed to this report and participated in the OECD study visits: Ramona McDowell and Kerry Lake- Kealey, Employment and Social Development Canada; Normand Roy and Michel Cantin, Ministère de Emploi et Solidarité Sociale Québec; and Joe McDonald, Ontario Ministry of Training Colleges and Universities. Special thanks should also be given to local stakeholders in each of the case study areas, who participated in meetings and provided documentation and comments critical to the production of the report. EMPLOYMENT AND SKILLS STRATEGIES IN CANADA – © OECD 2014 TABLE OF CONTENTS – 7 Table of contents Acronyms and abbreviations � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �11 Executive summary � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �13 Reader’s guide � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �17 Chapter 1. Policy context for employment and skills in Canada� � � � � � � � � � � � � � � � � � � � � � � � � � � � �21 Key economic and labour market trends in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Federal employment policies and programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24 Supporting local economic development in Canada . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Building skills through immigration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .28 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .29 Chapter 2. Ontario’s employment and skills system� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �31 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Local government in Ontario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 The management of employment policies and programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Vocational Education and Training . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34 Economic development policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Supporting inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Chapter 3. Quebec’s employment and skills system � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �41 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Local government in Quebec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 The management of employment policies and programmes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43 Vocational and technical education and training. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Economic development policies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 Supporting inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Chapter 4. Overview of the Canadian case study areas� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �53 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Employment and labour market overview of the four case studies. . . . . . . . . . . . . . . . . . . . . . . . . . . .60 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .64 Chapter 5. Local job creation dashboard findings in Canada� � � � � � � � � � � � � � � � � � � � � � � � � � � � � � �65 Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .66 Theme 1: Better aligning policies and programmes to local economic development. . . . . . . . . . . . . .67 Theme 2: Adding value through skills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 EMPLOYMENT AND SKILLS STRATEGIES IN CANADA – © OECD 2014 8 – TABLE OF CONTENTS Theme 3: Targeting policy to local employment sectors and investing in quality jobs. . . . . . . . . . . . .88 Theme 4: Inclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 Chapter 6. Towards an action plan for jobs in Canada: Recommendations and best practices� � �105 Federal considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .106 Recommendations for Ontario. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .107 Recommendations for Quebec. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .126 Figures Figure 1.1 GDP growth in Canada, 2002-12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22 Figure 1.2 Unemployment rate by Canadian province and territory. . . . . . . . . . . . . . . . . . . . . . . . . . .23 Figure 4.1 Map of Hamilton. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54 Figure 4.2 Map of the Thunder Bay Region. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56 Figure 4.3 Map of Mauricie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58 Figure 4.4 Map of Estrie. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 Figure 4.5 Balancing Supply and Demand, Ontario, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Figure 4.6 Balancing Supply and Demand, Quebec, 2011. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 Figure 5.1 Local Job Creation dashboard results for Quebec and Ontario . . . . . . . . . . . . . . . . . . . . . .66 Figure 5.2 Dashboard results: Better aligning policies and programmes to local economic development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .67 Figure 5.3 Areas in which local offices would like to have more flexibility, Ontario. . . . . . . . . . . . . .69 Figure 5.4 Areas in which local offices would like to have more flexibility, Quebec. . . . . . . . . . . . . .69 Figure 5.5 Employment offices with sufficient, adequate and insufficient capacities in Ontario and Quebec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 Figure 5.6 Dashboard results: Adding value through skills. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .77 Figure 5.7 Dashboard results: Targeting policy to local employment sectors and investing in quality jobs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 Figure 5.8 Dashboard results: Inclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .95 Tables Table 4.1 Employment indicators across the case study areas, 2013 . . . . . . . . . . . . . . . . . . . . . . . . . .60 Table 4.2 Net employment changes, 2008-12 (%). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .61 Table 4.3 Employment by industry, 2012. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Boxes Box 1 Summary of the OECD LEED Local Job Creation Project Methodology . . . . . . . . . . . . . . 17 Box 2 Local Job Creation Dashboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 Box 4.1 Explaining the diagnostic tool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62 Box 5.1 workforce Planning Boards in Hamilton and Thunder Bay. . . . . . . . . . . . . . . . . . . . . . . . .73 Box 5.2 Ontario’s Second Career Programme. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .78 Box 5.3 Programmes to encourage employers to participate in Apprenticeship Training . . . . . . . .80 Box 5.4 The Act to promote workforce skills development and recognition. . . . . . . . . . . . . . . . . . .82 Box 5.5 workplace Apprenticeship Programme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .82 Box 5.6 “Hamilton Employment Crawl” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .84 Box 5.7 Diversification Committee and Entrepreneurship Centre, Shawinigan (Comité de diversification et Centre d’entrepreneuriat, Shawinigan). . . . . . . . . . . . . . . . . .87 Box 5.8 Hamilton Living wage Campaign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .94 Box 5.9 Hamilton Roundtable for Poverty Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .96 EMPLOYMENT AND SKILLS STRATEGIES IN CANADA – © OECD 2014