Canadians have been falling behind when it comes to adopting digital skills, leaving its work force ill-prepared to meet the needs of an increasingly digital economy. Now, organizations are partnering with educational institutions to offer new alternatives to traditional degree programs.
According to Salesforce Canada’s 2022 Digital Skills Index, 81 per cent of Canadians say they don’t have the resources to learn the digital skills required by businesses today, and 86 per cent say they are not prepared to meet the digital skills requirements of the future.
The survey of 23,000 employees and prospective employees across 19 countries examined their readiness to acquire those skills that are often a prerequisite to employment in the digital economy. Only 28 per cent of Canadians rate their digital communication skills as “advanced,” 19 per cent self report an advanced understanding of smart technology, and 16 per cent have expertise in data analytics.
Canada is far from alone in struggling to keep its work force up to date with digital skills training. The countries examined in the study averaged a score of 33 out of 100 in their workplace digital skills readiness. Canada, however, lags behind the international average, with a score of 23.
With the rapid adoption of remote work and transition to a more digital economy during the COVID-19 pandemic, employers are now struggling to find candidates who possess the digital skills they need to keep up. According to a recent study conducted by KPMG, nearly 80 per cent of Canadian business leaders are seeking more workers with digital skills, and 68 per cent are struggling to find candidates with the skills they need to build their business.
“Canada’s standing in the global economy will depend on our ability to fully leverage new and emerging digital technologies,” said Margaret Stuart, country manager for Salesforce Canada. The company provides cloud-based services and software for enterprises, and commissioned the digitals skills survey.
With universitytuition on the rise, and technology evolving at a rapid pace, Ms. Stuart believes Canadians need alternatives to the traditional three- or four-year degree. That is why Salesforce Canada is partnering with Seneca College to pilot a micro-credential program in the spring, with plans for a full launch in September. The program offers students the ability to learn digital skills specific to Salesforce’s software, which includes technical training modules and real-world case studies, at a significantly lower cost and time commitment than conventional postsecondary programs.
“The labour shortage is so dramatic, and some of those [educational] barriers can be overlooked, especially in tech-related jobs,” said Gord Smith, a professor at the Seneca College School of Marketing. “If somebody is passionate and if they enthusiastically embrace the skills of a micro-credential, I think [employers] will look at them.”
Seneca has similar partnerships with a range of private-sector employers, and Mr. Smith believes that such collaborations are necessary to ensure that educational programs are directly aligned with business talent needs.
“Businesses who can afford it are solving this problem themselves, going directly to academic institutions, and also recruiting internationally, but I don’t think that’s enough,” said Georgina Black, a managing partner for Deloitte Canada. “Government has a role to play here in creating the conditions for all businesses to be able to benefit from those initiatives.”
In a country where 70 per cent of employees work for small and medium-sized businesses, Ms. Black believes those organizations that don’t have the resources to create such partnerships need greater government support. Governments can also address the digital skills gap and the shortage of technical talent by addressing barriers that keep many under-represented Canadians out of the work force, she said. According to a recent study conducted by Deloitte Canada, there are roughly 1.7 million Canadians who are unable to participate in the digital economy because of such barriers.
“There are certain populations that don’t have access to devices, access to the Internet – from a cost perspective – and this disproportionately affects Indigenous people, low-income seniors, people from diverse backgrounds, low-income [communities], and people in rural areas,” Ms. Black said. “Imagine if companies could tap into that work force, up-skill them, train them, and you suddenly have access to a skilled labour pool.”
Canada has historically relied on immigration and international workers to fill its talent needs. With the demand for digital skills now increasing around the world, however, Ms. Black believes all stakeholders need to work together to develop strategies for keeping Canada’s work force on the cutting edge, and so reduce its dependency on foreign talent.
“You want all of your citizens to be able to participate in society and in the economy, and society and the economy are going to be increasingly digital,” she said. “If we as a country – businesses, individuals, training institutions and government – don’t address this digital skills shortage, it’s only going to get worse over time.”
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OTTAWA – Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.
Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.
Business, building and support services saw the largest gain in employment.
Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.
Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.
Despite ongoing softness in the labour market, however, strong wage growth has raged on in Canada. Average hourly wages in October grew 4.9 per cent from a year ago, reaching $35.76.
Friday’s report also shed some light on the financial health of households.
According to the agency, 28.8 per cent of Canadians aged 15 or older were living in a household that had difficulty meeting financial needs – like food and housing – in the previous four weeks.
That was down from 33.1 per cent in October 2023 and 35.5 per cent in October 2022, but still above the 20.4 per cent figure recorded in October 2020.
People living in a rented home were more likely to report difficulty meeting financial needs, with nearly four in 10 reporting that was the case.
That compares with just under a quarter of those living in an owned home by a household member.
Immigrants were also more likely to report facing financial strain last month, with about four out of 10 immigrants who landed in the last year doing so.
That compares with about three in 10 more established immigrants and one in four of people born in Canada.
This report by The Canadian Press was first published Nov. 8, 2024.
The Canadian Institute for Health Information says health-care spending in Canada is projected to reach a new high in 2024.
The annual report released Thursday says total health spending is expected to hit $372 billion, or $9,054 per Canadian.
CIHI’s national analysis predicts expenditures will rise by 5.7 per cent in 2024, compared to 4.5 per cent in 2023 and 1.7 per cent in 2022.
This year’s health spending is estimated to represent 12.4 per cent of Canada’s gross domestic product. Excluding two years of the pandemic, it would be the highest ratio in the country’s history.
While it’s not unusual for health expenditures to outpace economic growth, the report says this could be the case for the next several years due to Canada’s growing population and its aging demographic.
Canada’s per capita spending on health care in 2022 was among the highest in the world, but still less than countries such as the United States and Sweden.
The report notes that the Canadian dental and pharmacare plans could push health-care spending even further as more people who previously couldn’t afford these services start using them.
This report by The Canadian Press was first published Nov. 7, 2024.
Canadian Press health coverage receives support through a partnership with the Canadian Medical Association. CP is solely responsible for this content.
As Canadians wake up to news that Donald Trump will return to the White House, the president-elect’s protectionist stance is casting a spotlight on what effect his second term will have on Canada-U.S. economic ties.
Some Canadian business leaders have expressed worry over Trump’s promise to introduce a universal 10 per cent tariff on all American imports.
A Canadian Chamber of Commerce report released last month suggested those tariffs would shrink the Canadian economy, resulting in around $30 billion per year in economic costs.
More than 77 per cent of Canadian exports go to the U.S.
Canada’s manufacturing sector faces the biggest risk should Trump push forward on imposing broad tariffs, said Canadian Manufacturers and Exporters president and CEO Dennis Darby. He said the sector is the “most trade-exposed” within Canada.
“It’s in the U.S.’s best interest, it’s in our best interest, but most importantly for consumers across North America, that we’re able to trade goods, materials, ingredients, as we have under the trade agreements,” Darby said in an interview.
“It’s a more complex or complicated outcome than it would have been with the Democrats, but we’ve had to deal with this before and we’re going to do our best to deal with it again.”
American economists have also warned Trump’s plan could cause inflation and possibly a recession, which could have ripple effects in Canada.
It’s consumers who will ultimately feel the burden of any inflationary effect caused by broad tariffs, said Darby.
“A tariff tends to raise costs, and it ultimately raises prices, so that’s something that we have to be prepared for,” he said.
“It could tilt production mandates. A tariff makes goods more expensive, but on the same token, it also will make inputs for the U.S. more expensive.”
A report last month by TD economist Marc Ercolao said research shows a full-scale implementation of Trump’s tariff plan could lead to a near-five per cent reduction in Canadian export volumes to the U.S. by early-2027, relative to current baseline forecasts.
Retaliation by Canada would also increase costs for domestic producers, and push import volumes lower in the process.
“Slowing import activity mitigates some of the negative net trade impact on total GDP enough to avoid a technical recession, but still produces a period of extended stagnation through 2025 and 2026,” Ercolao said.
Since the Canada-United States-Mexico Agreement came into effect in 2020, trade between Canada and the U.S. has surged by 46 per cent, according to the Toronto Region Board of Trade.
With that deal is up for review in 2026, Canadian Chamber of Commerce president and CEO Candace Laing said the Canadian government “must collaborate effectively with the Trump administration to preserve and strengthen our bilateral economic partnership.”
“With an impressive $3.6 billion in daily trade, Canada and the United States are each other’s closest international partners. The secure and efficient flow of goods and people across our border … remains essential for the economies of both countries,” she said in a statement.
“By resisting tariffs and trade barriers that will only raise prices and hurt consumers in both countries, Canada and the United States can strengthen resilient cross-border supply chains that enhance our shared economic security.”
This report by The Canadian Press was first published Nov. 6, 2024.
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