What is happening in Canada?
Canadian Labour market is facing a problem that can turn into a crisis of major proportion if it is not tackled in time: although having one of the best universities in the world, the country is struggling with an unemployment rate that does not come down from a solid 7% in the country.
There are several factors in between that are affecting the Labour market in Canada. The perception that the jobs in the industry have low wages and are not fulfilling. The constant pressure of the families to their younger generations to pursue only the careers that seem to have prestige in the community. The boom of technology and the “millennials identity,” among other issues that will be discussed throughout this article.
The perception of the younger generations about trade industry work.
For Canadians, it seems to be that a very big lack of interest in careers that are focused on trade industry work. That is mainly due to the perception that the youngest generations have about this kind of jobs. They seem to think that these jobs are unfulfilling and will lead them nowhere, too easy or they do not take special skills to be done, or simply they are too much hard work for a very low wage.
That is not necessarily the case. Taking the case of a plumbing job. A person that wants to enter this industry needs, first of all, needs a four-year training, including eight weeks a year in a classroom, learning basic concepts of physics and mathematics that are necessary to be able to deal with cavitation, pipelines, fluids and flow of a liquid such as water. A plumber does not only fix pipes, but he also needs to track down the origin of the problem, and then find the best solution. He needs to be able to test the devices that are connected to the pipes and see where the malfunctioning could be. Also, the hour rate of a plumber is not bad at all: it can range from $90 to $135, which is good enough to afford a solid middle-class life. eavestrough repair Toronto is also another similar case. the contractors make up to 6 figures income a year. Here is a list of high paying trade careers in Canada.
What are the younger generations looking for?
Considering the trade industry work a no-go option for many young people, or so-called “Millennials,” they are pursuing careers that seem to be more engaging regarding social commitment and personal realization: arts and humanities are, nowadays, the preferred options for Canadians that go to the universities. This is not necessarily bad, arts and humanities are needed in every society, but society also needs engineers, health workers, drivers, plumbers, cleaners, and other jobs that require a set of skills different that the ones offered in the arts.
Also, the type of workforce that the industry needs is not in harmony with the type of the education that the Canadians are receiving: even with good quality universities, the focus in polytechnics is lost and is mismatching the needs of the industry. For example, industries like oil, mining, and gas offer good wages and stable positions, but there is a lack of well-trained labor force that can take this positions.
Another problem that the younger generations are facing is that they are constantly changing jobs. The works with temporary durations are more popular that they were before, and people with degrees are facing the issue of having part-time jobs or multiple contract positions, looking for the one that offers the most stable working conditions. According to the data of Statscan, measured on 2011, a 40% of adults whose ages are around 20 and 29 years old still leave with their parents due to the lack of a job with an adequate payment to become financially independent. Over a decade ago, this number was around 27%, showing an alarming situation regarding work stability for the younger generations.
What can be done then?
The Canadian Chamber of Commerce is already addressing that issue and creating awareness of it: the paradox of having jobs that do not have people, and people with skills but no jobs, is posing as one of the major threats to the Canadian economic growth shortly. It is estimated that, by 2021, there will be 2.6 million vacancies for jobs in the country, but the number of unskilled workers for that year will peak to one million.
The mismatch of skills acquired in the educational institutions and the set of skills required in the industry is the first issue to be tackled by the Canadian government in the medium term. It is now common to find a barista or a bartender with a university degree, which leads to a diminished performance that does not match with his education, and the impossibility for a person who did not acquire any skill in the formal education to access to this job.
This kind of domino effect is affecting both sides and will generate a major negative impact on the Canadian economy. Artists working as baristas, unemployed and unskilled people trying to find a job as baristas. Big oil and gas companies are desperately accepting people from other markets. Even if they do not have the skills required in the beginning, only to fill the gap and attend their basic needs. It is now, the kind of situations that Canadians need to reconsider quickly and effectively if they want to avoid an economic crisis of major proportions. Which could lead to a destabilization and perhaps something worse in the near future?