Budget and accompanying Finance report take aim at labour supply and skills needs

While the Budget offered few financial incentives for innovation-intensive companies, an accompanying report on The State of the Canadian Labour Market offers reason for optimism, according to the Information Technology Association of Canada (ITAC). The 56-page report was released by the Department of Finance along with Budget documents and while it generally praises Canada's job creation record since the 2008 recession it does not shy away from future challenges.

The report outlines weakness in high-demand in fields such as science, technology, engineering and mathematics as well as apprenticeship programs, business skills and a surprisingly high job vacancy rate. It notes that productivity gains will be crucial in maintaining future income growth in the face of rapid technological change and "the rising competitive intensity of emerging markets".

"The report addresses the talent issue in ways that are particularly satisfying. Much of it is interesting and new," says ITAC senior VP Lynda Leonard. "The ICT sector has 2-3% unemployment and we need better access to the global workforce in ICT … Technology skills are foundational across the whole economy."

The Budget responded to the talent shortage with $11 million over two years and $3.5 million annually thereafter to further strengthen the Labour Market Opinion process for temporary foreign workers. It also announced the creation of an Immigrant Investor Venture Capital Fund pilot project to replace the Immigrant Investor and Entrepreneur programs, which the government has deemed ineffective.

Polytechnics Canada is also pleased with the Budget's skills training initiatives. CEO Nobina Robinson says the Budget's allocation of $40 million for up to 3,000 apprenticeships in high-demand fields is particularly welcome, although details remain scarce.

"Out of the $40 million, $30 million goes to IRAP (Industrial Research Assistance Program). Is it re-allocated money? It appears to be for technical R&D projects by SMEs (small- and medium-sized enterprises)," says Robinson.

The Budget also announced $100 million in interest-free loans for up to 26,000 apprentices in Red Seal trades that allow qualified tradespeople to practise anywhere in Canada. Robinson calls the initiative a "massive, radical shift" which will require considerable resources to "get the design right and raise awareness". "The program treats trade workers as learners, which sends an important philosophical signal," she says.

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