November 14, 2012
Toronto, Ontario
Check against delivery
Thank you for that kind introduction.
And thanks to all of you for having me here today to address your Symposium.
I’d be remiss if I didn’t take this opportunity to also thank all of the local Chambers of Commerce – and your members – who continue to make such a difference at the local level, in communities all across this wonderful country.
And this is a wonderful country, full of success and opportunity.
From an economic perspective, our performance has been far better than that of many countries around the world, particularly in Europe.
In fact, since July 2009, more than 820,000 new jobs have been created in Canada.
That makes us the nation with the strongest employment growth among the G-7 countries!
That’s great, right? The answer is: “Absolutely! Of course! But…”
We can’t rest on our laurels. We need everyone at work.
As business people, you know better than anyone that Canada’s economy is still fragile.
That means, frankly, that setbacks in other countries could have an impact on us.
They could be ripples, but they could equally be waves.
Here at home, we are facing high unemployment in some regions, and labour shortages in others.
And, in some cases, we are facing the paradox of labour shortages in areas of high unemployment.
But more acutely, where we’re really feeling the pinch, is in the ‘mismatch’ that exists between the needs of employers and the skills and labour available to them.
You yourselves have identified Canada’s skills shortage as the number one barrier to the success of your members, as noted in your report on the Top Ten Barriers to Competitiveness.
You describe the skills shortage as “the major socio-economic challenge confronting this country.”
Let me stand here and say I agree with you.
It’s about to grow because the population is aging, and that “big bunch of boomers” is starting to leave the workforce.
It’s about to grow because we’re competing globally for talent and for skilled workers.
And the situation is only going to get worse if we don’t do something about addressing the gap that exists in terms of skilling-up our own people.
Let’s be clear on something though. Although I agree with the fact that we have a major issue on our hands in this country, I do not agree that it is the sole responsibility of the government to fix it.
In fact, it can’t be, nor should it be.
It’s a collective issue and effort.
Our success will be dependent on our ability to be innovative, flexible and willing to change.
That will be important for all businesses in Canada and especially for small- and medium-sized enterprises, which after all, represent the majority of businesses in Canada.
As business people, entrepreneurial in how you work, you’re used to looking for practical solutions.
And when you turn to government for help, that’s what you’re looking for: real assistance and collaboration, rather than empty political rhetoric.
You want action.
As part of our government’s top priorities of job creation, economic growth and long-term prosperity for Canadians…that’s what we want, too.
So how do we “get at” doing things a bit differently, and achieving results?
Partnership is key. All levels of government, the private sector, and education and training institutions, we all have a role to play in getting Canadians back to work, diversifying and strengthening our workforce and addressing the skills shortages.
And so today, I’d like to talk to you about a few of our government’s initiatives aimed at addressing the challenges we’re facing.
So what’s the first step?
First, we are making changes to the Employment Insurance program to make it easier for unemployed Canadians to search for and find work.
There has been much discussion and debate about the changes we announced to EI this year.
I don’t think I need to remind any of you in this audience that Employment Insurance is just that—an insurance program— that exists to support you when you are out of work at no fault of your own.
With that support, comes the responsibility for you to be available and actively looking for work.
In talking with and listening to hard-working Canadians all across this country, they understand that our Government wants to make sure that they are better off working, than not.
They understand that we want to make sure employers like you, get the workers that you need to run your businesses.
It really is as simple as that.
The changes to the EI program will help achieve those goals. Think of the measure to better connect Canadians with available jobs in their local area.
We believe that these changes will make a difference, while ensuring that the program continues to support Canadians, as it always has, when they need it.
It’s also why we recently announced an extension to the temporary Hiring Credit for Small Business – a noteworthy announcement for all of you here today.
This credit provides up to $1000 to an employer whose total Employment Insurance (EI) premiums were at or below $10,000 in 2010.
As you know, by reducing payroll expenses, this credit defrays the costs of hiring new workers and allows your companies to take advantage of emerging opportunities.
But let me pause there for a moment.
Creating incentives for employers to hire Canadians would be a wasted effort if the EI program continued to created disincentives for people to accept work.
This story might resonate with all of you.
I spoke with a hotel owner recently, who has three locations in my riding. At one of these locations, he has an outstanding young man working the front desk, on the night shift, in the high season.
A few weeks ago, he asked the young man if he would consider working some hours, just part-time, in the off-season, at the other locations.
The hotel owner thought he was rewarding the desk clerk by giving him more work, but he was startled when the young man said:
“I’d love to, but I can’t afford to. I’m on EI in the winter. If I worked for you, my benefits would be clawed back. I’d lose money. That’s just the way it goes.”
Do you think that story illustrates an employment insurance system that is fair, flexible, and responsive? I don’t think so.
Yet small business owners across the country, including some of you here today, can tell similar stories of their own employees and their own experiences.
And that’s why we’re changing things.
I could talk about EI all day. In fact, some days I do during Question Period!
But there is more happening and I want to shift gears and talk about an even more important topic when it comes to addressing the skills and labour shortage.
And that’s training.
I know that the Canadian Chamber consulted on this topic over the summer, and you came out with a great statement.
You said: there is no such thing as an “unskilled job” anymore.
Work is becoming even more sophisticated, at both ends of the skills spectrum.
Things have quickly changed over the past decade when it comes to the skills required in the workforce. I’ll admit that often, at quick glance through the jobs section of a paper, I’m unfamiliar with many of the jobs! IT and ICT have transformed the work – and the technical language – of many companies.
And today, certain skills are essential for everyone. I’m of course talking about literacy, computer skills and the ability to communicate well, just to name a few.
And what that means is that upgrading or retraining is no longer optional or “nice to do” for employees or for employers.
Training needs to be an “essential” of its own in companies in Canada.
Government plays an important role in skills and training—no question. We give the provinces and territories significant funding for exactly that purpose. And we can encourage and facilitate the notion.
But it goes well beyond government, at any level.
Employers must be prepared to do their part. So, I want to make an appeal to you today.
You have the opportunity and the responsibility to ramp up your efforts when it comes to training and especially re-training workers.
Investing in the skills of your workers is just as important as investing in the latest technology.
It’s good for your business and good for the Canadian economy.
If we take the skilled trades as an example, the federal government offers grants to encourage people to become apprentices and attain journeyperson certification in a Red Seal trade.
And we can and will do more to encourage our young people to seriously consider the skilled trades for their future careers. I can only hope those discussions will happen more and more in the high schools and the junior highs.
But we also know that there’s only so much government can do, because it’s hard for “would-be apprentices” to find an employer to take them on.
That’s where small businesses come into the equation.
After all, we collectively need to take responsibility for guiding our young people and our future workforce.
Many of them, however, are facing an uncertain job market.
Many are graduating into unemployment or underemployment, rather than into a career.
Youth employment, although better in Canada than most of the developed world, sits at double the regular unemployment rate in this country.
Why?
Because they don’t have the skills that employers need.
Too many young people are caught in the vicious circle of “no job, no experience – no experience, no job.”
So I issue the challenge that this is your chance, as employers, to better work with colleges and universities to influence curriculum.
And, as the Chamber’s recent report says, it’s your chance to encourage your peer Canadian companies, small and large, to welcome the next generation of workers.
We need all of our young people and their talent at work.
That includes hiring them, training them, and always doing everything possible to ensure that Canadians get first crack at the jobs available.
Speaking of hiring Canadians, you may know that as part of our overall improvements to EI, we’re connecting the EI and Temporary Foreign Worker programs for the first time.
You also may know that we are currently reviewing the TFW program to make sure that it is as strong as it can be.
But in the long run, ladies and gentlemen, we can’t, won’t, or shouldn’t, solve our skills shortages by importing foreign workers.
That’s only a stopgap.
We need to develop the skills of the people we have, here at home, so that they can fill the available jobs.
Whether those jobs are industrial mechanics or computer programmers, we need to invest more in our own domestic workforce.
That also involves having a better understanding of where the jobs are and getting that information in circulation.
That’s why, in late August, I officially launched the new Sectoral Initiatives Program.
Under the new program, critical labour market information will be gathered and made available through the Working in Canada website.
This will help Canadians become more aware of the skills needed for the jobs that are in demand in various sectors.
And it will help you post your job vacancies and hopefully find employees, faster.
By giving people access to better information, employers, workers and job seekers alike will be able to make better decisions.
Stay tuned for news on the results of our recent call for concepts. I’m sure you’ll be interested in the results!
Speaking of investments that could potentially benefit our young people and the skills gap, it reminds me of a speech I gave last week when we launched our new social finance initiative.
I have to tell you, I’m still excited about this announcement, even after a week! And that’s a lifetime in politics and government!
Social finance is a new area for Canada.
The short definition is that it’s all about collaboration between businesses, the voluntary sector, social entrepreneurs and individuals to address complex social challenges. Think of things such as persistent unemployment, homelessness and chronic poverty.
Although we’ve been looking into social finance for a while as a government, last week’s announcement took the next step.
We launched a national call for concepts where essentially, we’re inviting ideas from individuals and organizations.
Ideas that might shape future social policy in Canada.
Ideas that might help us address persistent challenges like poverty or youth unemployment.
Ideas that might identify new partners for our government.
Ideas that will benefit citizens who need them most.
Needless to say, I very much look forward to the results!
Ladies and gentlemen, as I conclude, I think we’re all on the same wavelength here.
I want to ensure that small and medium businesses like yours have the skilled workers that you need to grow and prosper.
But I need your help.
We have a serious situation ahead of us when it comes to skills and labour shortages.
We need to share best practices and get better at information sharing.
We need to all acknowledge our challenges and our opportunities.
And we all need to be accountable for Canada’s continued success of being open for business and keeping businesses open.
Together, government and business can ensure Canada’s continued prosperity.
With the help of the Chamber, of organizations like yours, and the creative, adaptable and resilient people you represent, we can do it.
Thank you.
