Transcript Human Capital: “Every Canadian will have a high level of

Reform Experiences of Asian Pacific
Countries: The Case of Canada
Linda French
A/Director General
Labour Market Policy
Human Resources and Skills Development Canada
Presentation prepared for the OECD Policy Forum on Reassessment of
the OECD Jobs Strategy, July 7 – 8, Tokyo Japan
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Overview of the presentation
1. Macroeconomic and labour market challenges in the
early 1990s
2. Policy responses to these challenges
3. Current macroeconomic and labour market
challenges
4. Emerging policy directions
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Portrait of Canada
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1. Challenges in the early 1990s
Macroeconomic
• Recession of 1990 – 1991
• Worsening fiscal situation - increasing debt and
deficits
• North American Free Trade Agreement (NAFTA) in
1994
• Widespread corporate downsizing
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Challenges in the early 1990s
Labour Market
Unemployment Rate, by Duration
1990 - 2004
10
9
8
7
6
5
Less than 1 Year
03
20
01
20
99
19
97
19
95
19
19
93
4
91
• Decreased labour force
participation for youth
and older workers
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19
• Jobless recovery
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% of Labour Force Unemployed
• Double digit
unemployment
Long-term Unemployed (more than 1 year)
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2. Policy responses to the key challenges in
the early 1990s
• Strengthened macroeconomic management –
fiscal and monetary discipline
• Pension reforms
• Labour market reforms
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Labour Market Reforms
Drivers
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Enhanced labour market flexibility and attachment
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Fiscal imbalance – generate labour market efficiencies and reduce budgetary
pressures
Objectives
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Appropriate incentive structures
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Reducing unemployment, long-term unemployment and benefit dependency
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Reducing regional disparities
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Making work pay
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Labour mobility
Strategy
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Getting people back to work quickly
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Specific labour market and social reforms
Reforms to Unemployment Insurance (UI)
• Employment Insurance (EI)(active measures)
• Tightening eligibility
• Intensity rule (discouraging repeat use of EI, eliminated in 2000)
Agreement on Internal Trade (AIT)
• Encouraging labour mobility
National Child Benefit
• Levelling the playing field for those leaving social assistance
(continued to receive child benefits while working)
• Promoting labour force attachment (reinvestment of social
assistance savings to promote labour market entry)
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Current state of the economy
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Strong macroeconomic performance
• Balanced budgets
• Improving labour market productivity – but still lags behind the
United States
• Low inflation and interest rates
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Strong labour market performance
• Strong job growth
• Rising employment rates
• Low unemployment
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3. Current challenges and opportunities
Global/Macroeconomic
Realignment of global economic power
• The United States – but vulnerable to budget and
trade deficits
• Europe
• China and India
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Current challenges and opportunities
Labour Market
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Population aging constraining labour supply and economic growth
Certain groups having difficulties participating fully in the labour market –
Aboriginal people and new immigrants, low skilled workers, lone
parents, persons with disabilities
Persistent regional disparities
Lagging productivity growth
Rise of non standard work
Skills mismatch and consequent skills shortages in specific occupations
(e.g. trades occupations) and local labour market pockets
Income polarization between high skill and low skill workers
Underemployment (relative to educational levels)
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4. Emerging policy directions
Drivers
• Demographics
• New technology
• Globalization
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Transformative Change
Old Policy Reality
New policy reality
Entitlement
Empowerment
Learning during youth
Lifelong learning
Job-for-life
Employability-for-life
Reducing unemployment
Increasing participation
“Any job is a good job”
Quality jobs and full skill utilization
Remedial skills development
Proactive upskilling for the future
Domestic vs. international interests
Lines between domestic and
international blurring
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A human capital agenda is fundamental to
many Government of Canada priorities
Human capital agenda supports the following goals:
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Wealth creation
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Stronger communities
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Regional development
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Innovation
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Social inclusion
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Global competitiveness
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Prosperity of Aboriginal people
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A forward looking strategy
• Action in both the learning and employment systems
• Skills and learning across the life course
• Variety of settings
• More demand-driven, enhance employer investments
in skills
• Enhance skills and adaptability of existing workforce
• Maximize participation
• Partnerships
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Initiatives
Demand driven policies
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Workplace Skills Strategy
Lifelong learning
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Skills agenda
Increasing participation among “at-risk groups”
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New immigrants, persons with disabilities, Aboriginal people
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International Trained Worker Initiative (ITWI)
Review of Canada Labour Code (Part III)
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To address changing work arrangements, work-life balance issues and
non-standard work
Innovative employment programming
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Conclusion
• These emerging labour market issues and global
challenges are not unique to Canada
• Canada is well positioned to take advantage of the
opportunities of the new economy
• Canada looks forward to continuing to work with our
OECD partners to share best practices and find
solutions to emerging labour market issues