An empirical exploration of skills use in Canada
This report shows that training is one of Canada’s best tools to protect workers against the risks of job automation.
First, it finds that the use of ICT skills (information and communications technology) increased between 2012 and 2016, while the use of all other skills (such as reading, writing, numeracy) lowered. This finding verifies that that the Canadian labour market is becoming increasingly technical.
Second, it shows that Canadians with less education are also less likely to receive in-job training, which in turn lowers their skills profile. As a result, they are more vulnerable to job displacement as industries continue to undergo a technological shift in production due to automation.
Their vulnerability to displacement is supported by the report’s finding that the skills use of less-educated workers decreased between 2012 and 2016. Not surprisingly, these same individuals were found to transition in and out of employment more frequently than other groups. Without opportunities to enhance their skills, they are stuck in jobs whose tasks are increasingly being automated or outsourced—jobs that are therefore disappearing.
Since this report also shows that individuals with higher skills portfolios have better, more stable employment with more training opportunities, the intervention needed is clear: governments should incentivize firms to provide more training to workers vulnerable to automation. They could also develop and deliver training programs, either through government agencies, or jointly with educational institutions, targeting these individuals.
