On Labour in Canada
One of the problems in Canada that has been raised recently by the Canadian Federation of Independent Business is the current labour shortages in Canada and the likelihood that these shortages are going to get worse as we go forward, due to demographics.
The first solution to some of the distribution of the labour shortages would be to improve labour mobility. Now there aren't any overt restrictions to labour mobility in Canada. If you live in Nova Scotia you can go work in BC or Ontario or Alberta if you choose to do so.
The problem is that the governments in Canada have created a disincentive to move to where there are more jobs, through overgenerous social programs like Employment Insurance. Given the current labour shortages, EI should be significantly scaled back to provide a driver for people to move to where the work is. This is what has happened in the United States for many years, and is the reason why Phoenix and Las Vegas are growing so fast, while the population of Pittsburgh has fallen.
The second solution to assist in our labour shortages is to increase the number of skilled immigrants entering the country. This is not an easy solution, as much of the world has a shortage of skilled workers. But we should streamline the process for foreign trained labour to come here either temporarily or permanently. We should also remove all union or professional restrictions that are not there to serve public safety. Having restrictions that are there to create shortages (as I think some professional organizations have done) are counter-productive.
The third solution is to train more people. This is a slow process because expanding the universities and technical schools isn't a quick or cheap process. However, it could be done with a better student loan system and more direction of students towards those skillsets the country needs. We don't need more lawyers, english professors or people studying social issues. We need more engineers, doctors, welders, pipefitters, and similar activities. I find it a good study of the missteps of our society that young people go to university to get degrees for which there is limited demand, yet fields which have shortages continue to have shortages...
The first solution to some of the distribution of the labour shortages would be to improve labour mobility. Now there aren't any overt restrictions to labour mobility in Canada. If you live in Nova Scotia you can go work in BC or Ontario or Alberta if you choose to do so.
The problem is that the governments in Canada have created a disincentive to move to where there are more jobs, through overgenerous social programs like Employment Insurance. Given the current labour shortages, EI should be significantly scaled back to provide a driver for people to move to where the work is. This is what has happened in the United States for many years, and is the reason why Phoenix and Las Vegas are growing so fast, while the population of Pittsburgh has fallen.
The second solution to assist in our labour shortages is to increase the number of skilled immigrants entering the country. This is not an easy solution, as much of the world has a shortage of skilled workers. But we should streamline the process for foreign trained labour to come here either temporarily or permanently. We should also remove all union or professional restrictions that are not there to serve public safety. Having restrictions that are there to create shortages (as I think some professional organizations have done) are counter-productive.
The third solution is to train more people. This is a slow process because expanding the universities and technical schools isn't a quick or cheap process. However, it could be done with a better student loan system and more direction of students towards those skillsets the country needs. We don't need more lawyers, english professors or people studying social issues. We need more engineers, doctors, welders, pipefitters, and similar activities. I find it a good study of the missteps of our society that young people go to university to get degrees for which there is limited demand, yet fields which have shortages continue to have shortages...
posted by Technical Bard | 10:55
2 Comments:
The more you research about EI in Canada the scarier it gets. It is even worse out on the east coast. Due to the fact that EI benefits are allocated regionally. Therefore, if you are on the east coast without work, you will receive greater benefits than if you are in Ontario. Almost communist isn't it?
Oh yes ... this is a can of worms.
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