Toronto Needs More Skilled People

July 8 2003 - More work needs to be done to attract high-skilled immigrants to Toronto if the city's potential for growth in producing knowledge-based goods and services is to be realized. If this does not happen there will be a serious labour shortage by the end of the decade, according to a new report presented to the Council's Economic Development and Parks Committee.

"Toronto has a bright future as a global centre of the knowledge-based economy, but only if all levels of government, educational and training institutions, business and labour work more closely to improve the labour force development system," said Councillor Denzil Minnan-Wong, Chair of the Committee.

On the positive side, the report indicates that Toronto has a very highly educated, highly skilled and culturally diverse labour force that will provide a strong foundation for future economic growth. In the services sector more than three out of four employees have post-secondary education. This compares with more than half of Toronto's manufacturing employees.

Between 2000 and 2010, employment in the Toronto region will increase by 400,000 to just over 3 million - a 13% increase. Demand for labour will grow for all skills groups, especially in occupations requiring a university degree, community college or apprenticeship training, or a high school diploma.

But after 2008 baby boomers will be retiring. This will result in the loss of a major share of the region's workforce and consequent labour shortages across all occupations and skill groups by the end of the decade. The report concludes that immigration will be a major source of new entrants into the labour force.

The report proposes that governments, educational and training institutions, business and labour unions should work together to implement necessary changes, including:

* Making the training and skills development system more flexible and adaptable so that it is better able to respond to economic change.

* More involvement by employers in providing skills upgrading, and better links between employers, educators and trainers.

* Improving access to training for youth who do not continue on to college or university.

* Expanding and improving immigrant and migrant resettlement programs in Toronto.

* Reversing federal policies that seek to disperse immigrants away from Toronto to other places in Canada.

* Creating a more integrated labour force development system in Toronto.

Next steps include consultations to refine and prioritize the recommendations, and to build partnerships and alliances to implement them. As well, staff of the City's Economic Development Division are working with the Lakeshore Community Partnership (formerly the South Etobicoke Regeneration Project) to undertake a labour force readiness plan for the food industry in Toronto.

The study was made possible through the generous support of the Government of Canada's Human Resources Development Canada.