Apprenticeship Supply and Demand Challenges. Dialogue Findings Summary

Apprenticeship Supply and Demand Challenges Dialogue Findings Summary

About the Canadian Apprenticeship Forum The Canadian Apprenticeship Forum Forum canadien sur l apprentissage (CAF-FCA) is a national, not-for-profit organization working with stakeholders in all regions of Canada. We influence pan-canadian apprenticeship strategies through research, discussion and collaboration sharing insights across trades, across sectors and across the country to promote apprenticeship as an effective model for training and education. Our Board of Directors is comprised of representatives of business, labour, the jurisdictional apprenticeship authorities, education and equity-seeking groups. Through our work, CAF-FCA has shed light on a number of key issues affecting apprenticeship, such as the perceived barriers to accessing and completing apprenticeship and the business case for apprenticeship training. For more information, visit the CAF-FCA website at www.caf-fca.org This project was funded by the Government of Canada s Sectoral Initiatives Program.

Table of Contents 1.0 Introduction... 2 2.0 Main Dialogue Themes... 3 2.1 Supply Challenges... 3 2.1.1 The Nature of the Economy... 3 2.1.2 A Lack of Career Awareness and Insufficient Preparation for Skilled Trades Careers... 5 2.2 Demand Challenges... 6 2.2.1 Limited Employer Participation in Apprenticeship... 6 2.2.2 Technical Training Barriers... 7 2.2.3 Low Completion Rates.... 7 2.2.4 Apprentice Turnover... 7 2.3 Best Practices... 7 2.3.1 Apprenticeship Stakeholder Best Practices... 7 2.3.2 Employer Recruitment Best Practices... 8 2.3.3 Employer Retention Best Practices.................................... 9 3.0 Recommendations for Moving Forward... 10 4.0 Conclusion... 12

2 1 Introduction In the fall of 2015, CAF-FCA hosted four discussion forums across the country in Ottawa, Ontario, Halifax, Nova Scotia, Calgary, Alberta and Vancouver, British Columbia. Participants discussed apprenticeship-related supply and demand challenges. This report summarizes the main dialogue findings, highlights best practices and provides recommendations. More than 250 apprenticeship stakeholders participated in the sessions. Participants included employers, labour representatives, high school and college educators, community and industry organizations, apprenticeship administrators and equity groups. The construction, oil and gas, manufacturing and service sectors were represented. Participants learned about CAF-FCA research findings on qualifications-based labour market information and heard employer panelists share apprentice recruitment and retention strategies. Employers represented a variety of sectors and a range of firm sizes from micro (less than 5 employees) to large (over 500 employees). During roundtable discussions, participants articulated their challenges, shared best practices and made recommendations for moving forward.

2 Main Dialogue Themes 2.1 Supply Challenges 2.1.1 The Nature of the Economy Participants reflected upon the unique supply and demand challenges experienced in their region and provided their own assessments of the current demand in the labour market for apprentices and journeypersons. Alberta There are a number of large oil and gas companies in Alberta. The boom and bust nature of the oil and gas industry and global oil prices deeply affect the economy in this province. Alberta has a relatively small permanent population in comparison to industry skills needs during boom periods. Alberta is reliant on labour mobility and immigration to meet demand. The current economic decline has led many tradespeople from northern Alberta to seek work in southern Alberta. There high numbers of apprentices in Alberta. In general, senior level apprentices are in greater demand than first- or second-year apprentices. Apprentices tend to go back to school during down cycles, facilitating reskilling and upskilling. Sometimes, the sector loses apprentices during these cycles because they are attracted to other positions or sectors. As larger construction projects are completed, maintenance work is required. The maintenance trend and its impact on journeyperson demand needs to be better understood. Often maintenance work requires more experienced journeypersons, potentially leading to an increase in demand. British Columbia Natural resource sectors are the primary users of the skilled trades workforce in the province. The potential emergence of the liquefied natural gas (LNG) sector will create a demand for tradespeople. Shipbuilding projects are creating long-term opportunities as well. Tradespeople in British Columbia are a source of talent to Alberta when demand is high. When work slows down in Alberta, tradespeople return and this may create a surplus of talent in some trades. When journeypersons are available in the market, demand for apprentices is negatively impacted, particularly for first year placements. When strong economic growth returns, this has the potential to leave a shortage of tradespeople in British Columbia. The high cost of living in British Columbia may keep older journeypersons in the workforce for longer. This makes it difficult to predict retirement patterns and future demand. 3 Apprenticeship Supply and Demand Challenges Dialogue Findings Summary

4 Nova Scotia There are a greater proportion of small businesses in Nova Scotia, potentially leading to less capacity for managing human resources. Larger employers may also be in a position to offer higher wages. Small businesses in Atlantic Canada are vulnerable to losing trained people to higher paying mega-projects in the west, preventing some employers from making the initial investment in an apprentice. Red Seal certification is also often a hiring requirement, leaving little room for apprentices to apply for positions. Ontario Many tradespeople in Ontario have sought work in other regions due to the decline of the manufacturing sector. Opportunities may be emerging in advanced manufacturing, but upskilling may be necessary to meet industry demand. There are not enough apprenticeship opportunities available for young people. There is a perception that individuals are completing foundation programs, but are not finding jobs afterwards. FIGURE 1: Trades in Demand PROVINCE ALBERTA TRADES IN DEMAND BASED ON INDUSTRY AND EMPLOYER FEEDBACK There has been a slowdown in the construction and the industrial sectors and, as a result, there are more journeypersons available in the labour market. Despite the slowdown, there is an ongoing need for painters, tile setters, pipefitters, cement masons, carpenters, ironworkers, boilermakers, instrumentation mechanics, automotive service technicians and landscapers. BRITISH COLUMBIA Demand continues for carpenters, painters, roofers, sheet metal workers, heavy duty equipment mechanics, parts persons, welders, cooks, joiners, machinists, metal fabricators and steamfitters. NOVA SCOTIA Trades in demand include welders, painters, carpenters, bricklayers, automotive service technicians, heavy duty equipment mechanics, ironworkers and metal fabricators. ONTARIO There is a need for machinists, heavy-duty equipment mechanics and painters.

5 2.1.2 A Lack of Career Awareness and Insufficient Preparation for Skilled Trades Careers There was widespread agreement among participants that a lack of awareness about apprenticeship and skilled trades careers is a major challenge. Participants from across the country shared these concerns: Lack of Awareness Although many older journeypersons have delayed their retirements and are working longer, the reality is at some point they will leave the workforce. It is crucial that youth learn about the trades and adequate numbers pursue this career option. There is a need to reach out to youth and parents earlier. Many participants said youth and parents should learn about the trades at elementary school. Information about trades in demand and job opportunities should be communicated to teachers, youth, parents, community colleges and industry. The labour market information has to be presented in an easy-to-understand format. The specific skill sets required in the trades need to be articulated and shared with youth, parents and teachers. Better career decision-making is needed to ensure the trade selected is the right fit for the individual. Youth need to learn about the lifestyle of a tradesperson and how moving over the course of one s career may be required. Career awareness and outreach needs to include underrepresented groups such as women, Aboriginal peoples and immigrants. These groups require information about the programs available and existing financial supports. Too many youth and parents still think the trades are a dead-end career. Career pathways in the trades need to describe how an apprenticeship is a building block to a number of related occupations. Career progression over time needs to be clearly illustrated. Programs such as Blue Seal, which enable tradespeople to learn business skills, emphasize the possibilities for future career development and need to be shared with youth and parents. Encouraging youth to learn about mentoring can motivate them to see the future teaching opportunities in the trades. Outdated Equipment in Shop Classes Better equipment should be provided to high schools so youth can familiarize themselves with the equipment industry uses in today s workplace. Old equipment in high schools can lead to the impression that trades careers are stagnant and do not require cutting-edge technical knowledge. Insufficient Essential and Soft Skills Participants agreed there is always demand for journeypersons who have a combination of technical skills, essential skills, a positive attitude and a good work ethic. Many potential candidates do not meet the academic requirements to pursue apprenticeship training and additional essential skills upgrading is required. When seeking candidates for youth apprenticeship programs, high school teachers need to target those who are willing to learn and who have the foundational skills to succeed. Candidates often do not have sufficient math skills and taking math beyond Grade 10 is required. The reality is that some employers require pre-calculus math. The importance of math in the trades needs to be more clearly communicated to teachers, parents and youth. Youth need to better understand the why behind concepts and the practical application of ideas. What it takes to be a good listener and learner needs to be better understood. Mentors are needed to help candidates build their soft skills and ensure they have the right attitude. Prospective apprentices need to understand the importance of consistent behaviour in the workplace, particularly in terms of regular attendance and showing up on time. Apprenticeship Supply and Demand Challenges Dialogue Findings Summary

6 Safety training is an important part of preparing for an apprenticeship. Employers, especially small- to medium-sized businesses, need opportunities to share with teachers the skills they are looking for in potential hires. Limited Apprenticeship Opportunities Participants agreed more opportunities for pre-apprentices or first-year apprentices are required. More employers and schools need to be involved in co-op or youth apprenticeship programs. On-the-job training obtained while attending high school can be a real advantage when a young person is seeking an employer sponsor. Any insurance or liability issues need to be addressed in order to facilitate employer participation. Stronger Partnerships between Industry and Education are required Industry, high schools and colleges need to work more collaboratively. 2.2 Demand Challenges 2.2.1 Limited Employer Participation in Apprenticeship Participants agreed employers are not offering enough training opportunities to apprentices, especially when they are first starting out, but pointed to a number of challenges: Communication was identified as an ongoing challenge. Employers are busy, yet they need to be more aware of the programs and supports available. Employers need to learn about their responsibilities as sponsors. A single point of contact was suggested as a tactic for improving communication with employers. To encourage employer participation in training, there needs to be greater public demand for certified journeypersons. Employers will train if their customers ask for tradespeople with Red Seal or provincial certification. Educational institutions have good programs, but the information is not getting through to employers. More coordination around communication with employers is required. Government could facilitate these partnerships by creating clearer policies and procedures about how these groups may work together.

7 2.2.2 Technical Training Barriers Participants raised a number of issues related to technical training: Access to technical training is an ongoing concern. Another issue is the lack of instructors. Individuals willing to teach at the college can be hard to find, leading to long waiting lists for technical training. There needs to be innovation and flexibility around how apprentices receive technical training. Two-day release for technical training may work better for the cook trade than leaving for several weeks at a time. The availability and eligibility for EI is a barrier to pursuing technical training. This concern persists despite the fact the Canada Apprentice Loan is available. Cross-credit recognition and identifying common competency markers among trades were suggested as ways to recognize transferable skills. Transferability ensures tradespeople can maintain employment in different, but related, trades. 2.2.3 Low Completion Rates Participants agreed that completion barriers should be addressed. The reasons why completion rates are so low in certain trades should be investigated. 2.2.4 Apprentice Turnover Turnover is costly for employers. Mentoring and coaching, particularly for first-year apprentices, is critical. Mentoring programs need to be relevant to industry, value the role of the mentor and break down generational prejudices. 2.3 Best Practices 2.3.1 Apprenticeship Stakeholder Best Practices When addressing supply and demand challenges, participants shared these best practices: Career Awareness Initiatives Skills Canada initiatives effectively promote the trades and offer experiential learning opportunities. Giving guidance counsellors tours of skilled trades workplaces exposes them to the complexity involved in trades work and encourages them to appreciate these occupations. Youth Apprenticeship Programs Participants in every region said youth apprenticeship programs provide valuable opportunities for employers to connect with youth. Youth gain crucial hands-on work experiences through these programs. Programs to Engage Underrepresented Groups Programs to engage Aboriginal groups and women provide important opportunities to learn about the trades and connect with employers. Financial Supports Financial supports facilitate participation in apprenticeship for both employers and apprentices. Recognize the Employer Champions Recognizing those employers who offer high quality training rewards the champions. Partnerships Building relationships among industry, training providers and local high schools is essential. When stakeholders share information and resources, efforts are not duplicated. Apprenticeship Supply and Demand Challenges Dialogue Findings Summary More information about how to train-the-trainer would be useful as many journeypersons require direction and advice about teaching adult learners. Programs and initiatives that are successful include employers from the beginning and are relevant to industry s needs.

8 2.3.2 Employer Recruitment Best Practices During the panels, employers from different trades and sectors shared their strategies for recruiting apprentices. Diverse and multi-faceted recruitment strategies are required: Value the Apprenticeship Program Engage the senior decision-makers and leaders in the company and ensure they understand the value of the apprenticeship program. Make Apprenticeship a Requirement Make it a requirement that any owners, contractors and sub-contractors working on a project have apprentices. Contractor requirements can ensure there are opportunities at all apprentice levels. A consistent and steady flow of apprentices moving through the system is necessary. Engage Potential Apprentice Candidates and Parents Participating in youth apprenticeship programs helps employers connect with apprentices. These programs provide opportunities for employers to assess whether the candidate will be a good fit at the company long-term. One employer has parents come to the restaurant and the apprentices demonstrate what they do. Parents are shown that working as a cook is a skilled occupation, not a dead-end job. Parents are encouraged to support their children s career path. By reaching out to instructors at local colleges, employers learn about co-op, pre-employment or pre-apprentice students looking for opportunities. Graduates of these programs often already have safety and on-the-tools training. In partnership with the colleges, employers can set-up programs to meet their needs. One employer sponsored a cohort of apprentices. Along with the regular curriculum, the employer integrated specific training content into the program. The employer hired a number of graduates from the cohort. Creating an engaging website that describes the company s values and effectively uses social media is another way to attract youth. Looking for internal candidates to become apprentices is another strategy used by employers. These individuals are already working at the company so they understand the culture and may be more committed to staying. Offering high-quality training and a positive learning environment attracts additional apprentices through word of mouth. Apprentices often become the best recruiters by sharing their experiences with others. Apprentices will use social media to spread the word about employers, so it is important the employer has a good reputation. Assess Candidates Meet any potential hires in-person so there is face-to-face interaction. Examine post-secondary transcripts, especially math marks. Assess the skill level of candidates and offer upgrading if required. Offer an Apprentice Orientation An apprentice orientation provides information about how the apprenticeship system works and the company s culture and business goals. Clear communication with the apprentices from the beginning is essential. Connect apprentices with a buddy so they have someone with whom they can talk.

9 Show Apprentices a Career Path in the Company Showing apprentices a map of their apprenticeship, earnings and potential career pathways helps them envision a future at the company. Emphasize opportunities for personal growth and learning. Ask the apprentice about their career goals. Offer employees opportunities to try out different roles at the company, even if it is just on a short-term basis. Emphasize the potential opportunities that come with a Red Seal designation to promote certification as a goal. 2.3.3 Employer Retention Best Practices Turnover is costly to employers making apprentice retention crucial. Employers shared their retention best practices: Support Apprentices Help apprentices navigate the process, the paperwork and the financial challenges Meet and communicate regularly with the apprentices Ensure each apprentice has a training plan Explain the business realities and the plans for sending apprentices to technical training so there is no confusion and the commitment to apprentice development is articulated Set-up an internal website to facilitate communication and team-building Create loyalty incentives for the apprentices Offer incentives such as free tools if the apprentice stays 2 to 3 years Identify the Best Mentors Formalize the mentoring program Put first-year apprentices with the best mentors and teachers Ensure the mentor identifies and addresses any issues with the apprentice Give the mentor a bonus to reward good mentoring in the workplace Create a Positive Workplace Culture Recognize quality work Provide opportunities for professional career development Manage Down Cycles When there are down times, share the apprentices with other employers so the apprentices remain employed and continue to earn hours towards completion When there are work opportunities in different regions, ask employees if they are willing to move. Distributing the workforce may avoid lay-offs Celebrate Completion Apprentice progression and completion is important to producing the qualified journeypersons needed in the skilled trades labour force Offer exam preparation to improve the pass rates on the certification test Set targets such as passing the exam within a year so apprentices will be motivated to write the exam Top up the apprentice completion grant to reward program progression Celebrate completion as a milestone Apprenticeship Supply and Demand Challenges Dialogue Findings Summary Provide a variety of interesting training opportunities

10 3 Recommendations for Moving Forward Across the country, participants provided similar recommendations: apprenticeship advisors or high school teachers play in this process? Create Awareness about Skilled Trades Careers Provide information to youth, parents and guidance counsellors. Engage these groups as early as elementary school Give specialized career advice to potential apprentices as the pathway is unique in comparison to other post-secondary options Encourage youth to take math courses beyond Grade 10 Engage the school superintendents as leaders and decision-makers. They can promote the trades throughout their districts and direct resources to shop classrooms Provide better equipment to high school shop classes Seek ways to address the disconnect between potential apprentice candidates and industry. Could mentorship around this transition be facilitated? What positive role can Teach youth and underrepresented groups to develop networks in the trades that will help them secure job opportunities Promote the Importance of Soft Skills Along with strong technical skills, promote soft skills such as communication and team work Engage Employers Encourage employer participation in youth apprenticeship programs Offer employers incentives to hire 1st and 2nd year apprentices Inform employers about the supports and programs already available to them Help employers meet the workplace expectations of the younger generation Offer employers information sessions about their role in the apprenticeship system so they can better navigate the system

11 Promote Certification and the Red Seal Create public demand for certified journeypersons and the Red Seal Promote High Quality Training Promote continuous learning so apprentices are safe and productive workers throughout their entire careers Ensure consistency in workplace training so apprentices develop all the necessary skills and competencies Support Apprentice Progression and Completion Offer greater technical training flexibility to accommodate apprentices and employers Give journeyperson mentors more insights about how to effectively teach and train apprentices Support Harmonization Efforts Support harmonization and apprentice mobility protocols to facilitate apprentice mobility Create more timely and reliable sources of data Up-to-date and reliable data is required in order to make informed and strategic programming decisions about apprenticeship Position Apprenticeship as a Collective and Shared Responsibility Effective labour market planning is a shared responsibility and employers, parents, educators, labour and government need to work together to act strategically Nothing replaces face-to-face interaction and opportunities that bring the apprenticeship community together are an important way to make sector, provincial and national connections that facilitate collaboration Apprenticeship stakeholders need to take a team approach to helping the apprentice throughout the entire journey from career awareness to completion Apprenticeship Supply and Demand Challenges Dialogue Findings Summary

12 4 Conclusion Participants across the country agreed that apprenticeship is central to training the next generation of journeypersons. Participants talked about the unique supply and demand challenges in their region. The economic downturn in Alberta has led to tradespeople from Atlantic Canada and British Columbia to return home, leading to more qualified journeypersons in the labour market. These tradespeople are likely to return to Alberta when conditions improve, however, creating future gaps. Participants agreed there is an ongoing need to train apprentices to replace retiring journeypersons. Every region could name trades where more apprentices need to be trained to meet current and future demand. There was agreement across regions that more employers should hire and train apprentices, especially at the first-year level. Participants agreed more employers should participate in youth apprenticeship programs so they are directly connecting with youth and offering practical work experience opportunities. To facilitate their participation, employers need to learn about the programs and supports available to them. The need for improved awareness among youth, parents and educators about skilled trades careers and apprenticeship was a common challenge. Participants said youth need to improve their essential and soft skills in order to better prepare for apprenticeships. High school classrooms require more up-to-date equipment so students are learning on the latest technology. Stronger partnerships between industry and educational institutions were considered important to addressing these challenges. Participants from each region provided examples of career awareness initiatives, youth apprenticeship programs, programs to engage underrepresented groups, financial supports and successful industry and education partnerships. Effective programs need to be expanded and replicated, but there is often a lack of awareness about what works. Employers shared their recruitment and retention best practices. Recruitment strategies included connecting with local high schools and colleges, meeting any potential hires in-person, examining post-secondary transcripts, holding an apprentice orientation and showing the apprentice a career path within the company.

13 Retention best practices included supporting the apprentice throughout the process, offering financial help, meeting and communicating regularly and ensuring every apprentice has a training plan. Employers also said creating a positive workplace culture focused on continuous learning supported skills development. According to employers, celebrating achievements such as completion makes apprentices feel valued and supports goal-setting and progression. Managing down cycles by communicating with employees and offering flexibility such as working for other employers or in different regions can avoid lay-offs, fostering employee loyalty. The two priorities for participants were improving career awareness and encouraging employers to participate in apprenticeship training. Other recommendations included promoting high-quality training and improving the teaching skills of journeyperson trainers. Supporting harmonization and apprentice mobility protocols was considered important so apprentices can relocate to find work and earn hours towards completion. Efforts to create more timely and reliable apprenticeship data sources were supported to ensure decisions can be made with accurate information. Participants emphasized the importance of apprenticeship as a collective and shared responsibility, further highlighting the importance of collaboration and partnerships. Apprenticeship Supply and Demand Challenges Dialogue Findings Summary