HRSDC-IC-SSHRC Skills Research Initiative

Working Paper Series

Adjustments in Labour Markets for Skilled Workers in Canada

by Daniel Boothby and Bruno Rainville.

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Abstract

Meeting the challenge of the 21st century Canadian economy through rapid expansion of the highly skilled labour force involved in innovation will require important labour market adjustments. The purpose of the roundtable for which this paper was prepared is to discuss a series of issues concerning these adjustments in order to develop a medium-term research program on these issues. They include:

What are the types and levels of skilled labour Canada needs and will need in building an innovative economy?

Where does Canada stand now in the supply of these types of skilled labour? What are the current conditions in markets for these types of skilled labour?

Does Canada have the institutional set-up needed to achieve the required adjustments? What institutional barriers are there to adjustments? Are there institutional changes that could facilitate adjustments?

Section 1 of this paper takes up the first two points raised above. The section begins by discussing issues that concern the links between skilled workers and innovative activity. A better understanding of these links is a key element in developing a framework of indicators of how Canada is faring in the provision of the human resources required by a greatly increased level of innovation. Section 1 concludes by presenting and discussing a number of indicators of Canada's current situation.

Adjustments in sectors, regions and firms and in their institutional environment are discussed in Section 2 of this paper. The fourth point raised above-the role of institutions in these adjustments-is central to developing policy for ensuring an adequate supply of skilled labour in support of greatly increased levels of innovation. The research program outlined in Section 2 would seek to identify institutional constraints to adjustments (other than constraints due to the institutional structure of Canada's post-secondary educational system, which are discussed in the issues paper Montmarquette and Boisclair, 2004).

Section 3 of the paper is a brief conclusion.