The Upcoming Skills Shortage
Finding skilled employees was slightly easier for most employers in 2008 compared to 2007 but that is about to change.
This year worldwide trends in skills shortages are making a profound impact in the way businesses hire, train and retain employees. In 2007 41% of all employers had difficulty filling jobs, in 2008 the rate dropped to 31%, but this will change over the next ten years as the population demographics change. And many experts are positive that Canada will not be immune to these changes.
Influencing Factors
Two of the factors that will influence the employee and skill shortage in Canada include the fact that baby boomers will be leaving the workforce and the fact that many technical programs are not receiving enough students. In Canada the population after the Second World War grew quickly with roughly 28 births per 1,000 people (currently the rate is around 11 per 1,000). These people entered the workforce between the 1960 and 1980 and will be retiring very soon.
In addition fewer students are entering job fields like engineering. Instead fields like social sciences and law are attracting the largest number of students (142,000 in Canada in 2006 according to the Association of Universities and Colleges of Canada report Trends in Higher Education
http://www.aucc.ca/_pdf/english/publications/trends_2007_vol1_e.pdf). During that same year only about 55,000 were studying architecture, engineering and related technologies. This creates a distortion in terms of the skills that are available on the market, a distortion that profoundly affects the job market.
As these factors continue to influence the job market the effects will be felt in many industries