Colleges Ontario

(TORONTO, June 19, 2007) – An analysis of economic trends in Ontario underlines the urgent need for a comprehensive skills and workforce development strategy to increase the province’s competitiveness.

Colleges Ontario’s 2007 Environmental Scan examines a number of workforce challenges – the increasing pace of technological change, falling productivity in the face of growing international competition, and an aging workforce – that require a proactive, co-ordinated strategy to strengthen Ontario’s labour force.

"We have a serious problem with skills mismatches in Ontario and the time for complacency is over," said Linda Franklin, President and CEO of Colleges Ontario. "We have to act now – we can’t wait until we have been eclipsed by faster-moving competitors in the world economy."

The report highlights several economic warning signs, including:

• Youth unemployment is higher in Ontario than in any other province outside of the Maritimes.

• Wages and participation rates of unskilled workers continue to fall due to globalization and technological change.

• Almost half of unemployed Ontarians have literacy scores below the level needed to cope with current skill demands for the economy.

• By 2015, the number of young people will begin to decline resulting in a greater demand on people already in the workforce to have skills and knowledge that are current and effective.

• 70 per cent of all new jobs in Canada require some postsecondary education. Today, less than half of Canadians have postsecondary qualifications.

The report points out that industries to be hit first by the declining youth population will be those employing young workers, such as accommodation and food services, retail, information, and culture and recreation.

Sectors that employ older workers, including health care, manufacturing, energy, and the public sector will be hit by the retirement boom as the first of the baby boomers reach the age of 65 years starting in 2011.

"As the economy relies more heavily on older workers, skills upgrading and retraining for existing workers will continue to grow in importance," said Franklin. "The fact is too many people don’t have the right skills for the jobs that are available. And those working will require continuous education and re-training throughout their lives to update and transform their skill sets to use new technology and meet new needs."

Franklin said Ontario’s 24 colleges, which successfully educate and train students from every socioeconomic group and from all walks of life, are uniquely positioned to work with government and industry in developing solutions to Ontario’s workforce challenges.

"Ontario’s future economic performance relies on investments in highly skilled people, new technologies, innovation, and an educated citizenry," she said. "The government must implement effective strategies to ensure that our future labour force has the skills we need to compete in a tough world economy."

In addition to its analysis of economic trends and prospects, the 2007 Environmental Scan provides a full picture of college students and graduates and their contribution to Ontario. It discusses college performance trends and the perceptions of colleges held by Ontarians, which is taking on greater significance as colleges work to attract more students and produce greater numbers of college graduates.

The report also examines college system resources, including capital and operational funding, human resources, and student financial information, while highlighting the continuing fiscal challenges facing the college sector.

Colleges Ontario is the voice of Ontario’s 24 colleges of applied arts and technology, which deliver a wide range of career-focused education and training programs to more than 150,000 full-time and 350,000 part-time students. One third of Ontario’s workforce or 2.1 million workers has a college credential.

2007 Environmental Scan

-30-

For more information, contact:
Darrell Neufeld
Senior Communications Officer
416 596-0744, ext. 242
neufeld@collegesontario.org