The Engineering Skills Shortage- Fact or Fiction? Joint OSPE PEO Chapter Labour Market Presentation

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1 The Engineering Skills Shrtage- Fact r Fictin? Jint OSPE PEO Chapter Labur Market Presentatin This presentatin can be dwnladed at: OSPE Underemplyment Wrking Grup Nvember 2013

2 2 Outline f Presentatin Data Surces Glbal Cmpetitin and Its Impact Scietal Value Changes and Their Impact Supply-Demand Gaps Emplyer Requirements Engineering University Faculty Respnse Skills Lacking in Recent Grads and Immigrants Prducing Jb-Ready Engineers Sme Hpeful Signs What Individual Engineers Can D Q&A perid.

3 3 Data Surces fr Tday s Presentatin Statistics Canada Census fr 1995, 2000 & 2005, Husehld Survey 2012 Citizen and Immigratin Canada Immigratin data Engineers Canada - Labur market and emplyer surveys Prism Ecnmics and Analysis, 2010 Survey f Wrking Cnditins fr Engineers, May 2011 Prism Ecnmics and Analysis, Skills Shrtage in the Engineering Labur Market, June 2013 Cuncil f Ontari Universities Emplyment Outcmes f 2009 Graduates The Cnference Bard f Canada, Sep 4, 2013, Skills Mismatches and the Ecnmic Impact in Ontari. OSPE Emplyer Surveys TD Ecnmics, Oct 22, 2013, Jbs in Canada Where, What and fr Whm? Public media reprts n labr market cnditins, Glbe & Mail, McLeans, etc. If yu are interested in the ther labur market infrmatin r dwnlading this presentatin, please visit OSPE s website at:

4 4 Glbal Cmpetitin and Its Impact Liberalizatin f trade plicies Eliminatin f lwer skilled jbs in industries (e.g. manufacturing) and assciated prfessinal jbs. Glbal cmpetitin: Lwer training budgets Eliminatin f paid internships and mentring supprt Increase in shrt-term n-demand prjects (fee fr service mdels) Reductin f in-huse functins (HR, CPD, R&D, etc.) Reduced benefits (e.g. defined cntributin instead f defined benefit plans) Reduced wages (e.g. CAW/UAW cntract fr new emplyees)

5 5 Scietal Value Changes and Their Impact Mre yung peple in pst secndary educatin (ver 60% in Ontari); and, Mre highly educated immigrants. Resulting In, Mre highly educated individuals but insufficient entry level pprtunities fr new graduates and newcmers.

6 6 Scietal Value Changes and Their Impact Universities Cntinue t fcus n academic learning. Emplyers Abandnment f frmal training prgrams (<35% fr large firms and <15% f small firms). Resulting in, Many cllege and university graduates have insufficient industry sectr skills t find wrk: In their field f study In their gegraphic area

7 7 Supply-Demand Gaps High Canadian dllar Uncmpetitive with USA and thers. Gegraphic and lifestyle cnsideratins Jbs in remte areas (e.g. il sands). Glbal recessin f Engineering graduates lacking the hands-n industrial/business experience demanded by emplyers. 94% engineering grads find wrk within 2 yrs. but nly 35% in applied science and 50% in university level jbs but nt in engineering.

8 8 Supply-Demand Gaps Emplyers typically lk fr 5 t 10 years f sectr specific experience. Ecnmy des nt generate enugh jbs fr all cllege and university graduates. Businesses need t be encuraged t prvide mre entry level jbs fr new graduates. But n the bright side, Jb prspects fr Canadian engineering grads better than ther disciplines.

9 9 Supply-Demand Gaps Annual demand fr new jbs in Ontari frm ecnmic grwth 850 Replacement demand (retirements, deaths, exit frm prfessin) 4,200 Ttal Ontari Annual Demand (2012 t 2020) 5,050 New university engineering graduates entering the labur market 3,700 Temprary Freign Wrker engineers 2,085 Permanent Immigrant engineers 1,430 Ttal 2011 Ontari Supply 7,215 Data curtesy f Prism Ecnmics and Analysis, Skills Shrtage in the Engineering Labur Market, June The data abve des nt reflect the accumulated surplus f previus years.

10 10 Supply-Demand Gaps Immigratin and Temprary Freign Wrkers Since 2001 Decreases in Internatinally Trained Engineers Permanent Residents but cntinuing flw f Temprary Freign Engineering Wrkers (Citizenship and Immigratin Canada data).

11 11 Emplyer Requirements Emplyers demanding new emplyees pssess: Industrial/business skills and experience specific t the sectr. Sft skills (e.g. cmmunicatin, writing, planning, etc.). Technlgy skills (e.g. knwledge f sectr sftware tls). Knwledge and practical applicatin f lcal cdes and standards (e.g. electrical, mechanical and safety cdes, etc.). Knwledge f lcally supplied prducts and services. 5 t 10 years pertinent wrk experience.

12 12 Engineering University Faculty Respnse Successes Semester C-Op r 1 Year Internship Very beneficial t students. Graduates with industrial/business experience Better chance f landing engineering jb sner. But, View that universities educate, emplyers train (Dr. Max Bluw, Chair f the Cuncil f Ontari Universities). Grwing number f unpaid internships.

13 13 Skills Lacking in Recent Grads and Immigrants Business and sectr specific knwledge Practical skills Organizatinal skills Interpersnal skills Language Wrkplace culture Canadian industrial practice knwledge (cdes and standards, etc.)

14 14 Prducing Jb-Ready Engineers Needs invlvement f all 4 majr parties educatinal institutins, gvernment, emplyers and emplyees. Financial incentives fr emplyers. Financial supprt fr educatinal institutins. Resurces fr students t learn effective jb searching skills. Pragmatic prgrams by gvernment fr all parties.

15 15 Sme Hpeful Signs Ontari Yuth Jbs Strategy (jb pprtunities fr 30,000 yung peple ages 15 t 29): The Yuth Skills Cnnectins Fund Partners yung peple with industry, nt-fr-prfits and academic leaders t help yuth build career skills and secure industry jbs. The Ontari Yuth Innvatin Fund Prvides internship pprtunities fr graduate and pstgraduate students, and helps pst-secndary students launch start-ups by funding campus-linked business acceleratrs. The Ontari Yuth Entrepreneurship Fund Will help yuth wh want t start their wn cmpany by prviding training, mentrship and seed financing. The Yuth Emplyment Fund 4 t 6 mnth training placements fr yuth. Fr mre inf n the yuth jbs strategy g t https://www.ntari.ca/jbs-and-emplyment/yuth-jbs-strategy

16 16 Sme Hpeful Signs New prgrams t imprve emplyability f new graduates: UNENE university & industry initiative fr the nuclear sectr. EPEEC university/utility/labur initiative fr the pwer sectr. SME TBM initiative and new apprenticeship mdel fr the manufacturing sectr. DAIR Bmbardier & Centennial initiative fr the aerspace sectr. OSPE ITE prgrams, jb netwrking events, PD curses. Much mre needs t be dne.

17 17 What Individual Engineers Can D Dn t get discuraged! Develp teamwrk, cmmunicatin, interpersnal, leadership and rganizatinal skills. Develp resume writing and interview skills. Develp business/industry technical skills. Take apprpriate prfessinal develpment curses. Netwrk and attend industry events.

18 18 What Individual Engineers Can D Use cmpany websites and OSPE jb site fr jb searches. Research industry sectr/cmpany. Register with PEO as engineering intern, Prvisinal License fr experienced immigrant engineers. Create wn jb/business. Stay psitive and dn t sell yurself shrt!

19 19 Questins? Ntes: This presentatin can be dwnladed at: Wuld yu like t becme a member f OSPE? Visit:

20 Ynge Street, Suite 502, Trnt ON M2N 6K1 Tel: Tll Free:

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