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Effective local strategies to 
boost quality job creation: 
Lessons from Canada 
Anil Verma, Ph.D. 
Professor & Director 
Centre for Industrial Relations & Human Resources 
and 
Rotman School of Management 
University of Toronto 
September 2014
Skill gaps, 
shortages 
High skill 
equilibrium 
Low skill 
equilibrium 
Skills 
surplus 
Demand for High Skills 
Supply of High Skills
Traditional Approaches 
• Emphasize Supply-side Policies 
– Boost post-secondary enrollments 
– Incentives for apprenticeships 
– Incentives for training 
– Target key groups: youth, women, minorities 
– Bridging programs
Not just supply, also demand..
Eastern 
Ontario 
Central 
Ontario 
Niagara 
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 
Huron 
1 
0.8 
0.6 
0.4 
South Central 
Ontario 
Northern Ontario 
Ottawa 
Kingston 
Oshawa 
Toronto 
Hamilton 
0.2 
0 
St. Catharines 
London 
Windsor 
Kitchener 
Sudbury 
Thunder Bay 
-0.2 
-0.4 
-0.6 
-0.8 
-1 
Rural Urban 
(1.17, 1.04) 
SKILLS 
DEMAND 
SKILLS 
SUPPLY 
Skills supply and demand in Ontario
Skills supply and demand in Ontario 
Eastern 
Ontario 
Central 
Ontario 
Niagara 
-1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 
Huron 
1 
0.8 
0.6 
0.4 
South Central 
Ontario 
Northern Ontario 
Ottawa 
Kingston 
Oshawa 
Toronto 
Hamilton 
0.2 
0 
St. Catharines 
London 
Windsor 
Kitchener 
Sudbury 
Thunder Bay 
-0.2 
-0.4 
-0.6 
-0.8 
-1 
Rural Urban 
(1.17, 1.04) 
SKILLS 
DEMAND 
SKILLS 
SUPPLY
First Theorem of the Skilled Jobs Economy 
Utilization of enhanced skills depends 
largely on a demand for enhanced 
skills 
Demand for enhanced skills depends 
on innovation and creativity at the 
workplace 
Workplaces vested in the status 
quo do not contribute to demand for 
enhanced skills 
A culture of innovation creates a 
steady demand for enhanced skills
Innovation 
Compete 
Locally 
High Quality 
Unique 
Products 
Responsive 
to customer 
tastes
Specific 
skills & 
knowledge 
Competing 
Locally 
High 
Quality 
Unique 
Products 
Responsive 
& Flexible
A Model of Policy Interventions for a Shift to a High-skill Equilibrium 
Public 
Policies, 
Programs 
& 
Institutions 
Private and 
Not-For- 
Profit 
Policies, 
Programs 
& 
Institutions 
Demand-side Processes 
More 
Value-added 
Products 
& Services 
Persuade 
People to 
Acquire 
Higher 
Skills 
Increase in 
Employer 
demand for 
Higher 
Skills 
Supply-side 
Processes 
Increase in 
Supply of 
Higher 
Skills 
Improve 
productivity, 
quality, cost, 
service; 
Promote 
innovation 
Fund & 
Promote 
Education 
& Training 
Policy Inputs 
Outcomes 
High-Skill 
Equilibrium 
(demand 
High Skill 
Surplus 
(Demand 
< 
Supply) 
= 
supply) 
High Skill 
Shortage 
(Demand 
> 
Supply) 
Feedback for Policy Adjustments
Role of Industry Networks (Non-profits) 
Demonstrate 
2 
Diffuse 
Innovations 
Train 
3 
Support 
4 
Legitimate 
1
Role of Universities & Colleges 
• Niagara College as an Exemplar 
– Programs pertinent to local industry: 
viniculture, tourism & hospitality 
– Local labour market surveys 
– Internships 
– Research Projects 
– Contract research with industry

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Effective Local Approaches to boost quality job creation

  • 1. Effective local strategies to boost quality job creation: Lessons from Canada Anil Verma, Ph.D. Professor & Director Centre for Industrial Relations & Human Resources and Rotman School of Management University of Toronto September 2014
  • 2. Skill gaps, shortages High skill equilibrium Low skill equilibrium Skills surplus Demand for High Skills Supply of High Skills
  • 3. Traditional Approaches • Emphasize Supply-side Policies – Boost post-secondary enrollments – Incentives for apprenticeships – Incentives for training – Target key groups: youth, women, minorities – Bridging programs
  • 4. Not just supply, also demand..
  • 5. Eastern Ontario Central Ontario Niagara -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 Huron 1 0.8 0.6 0.4 South Central Ontario Northern Ontario Ottawa Kingston Oshawa Toronto Hamilton 0.2 0 St. Catharines London Windsor Kitchener Sudbury Thunder Bay -0.2 -0.4 -0.6 -0.8 -1 Rural Urban (1.17, 1.04) SKILLS DEMAND SKILLS SUPPLY Skills supply and demand in Ontario
  • 6. Skills supply and demand in Ontario Eastern Ontario Central Ontario Niagara -1 -0.8 -0.6 -0.4 -0.2 0 0.2 0.4 0.6 0.8 1 Huron 1 0.8 0.6 0.4 South Central Ontario Northern Ontario Ottawa Kingston Oshawa Toronto Hamilton 0.2 0 St. Catharines London Windsor Kitchener Sudbury Thunder Bay -0.2 -0.4 -0.6 -0.8 -1 Rural Urban (1.17, 1.04) SKILLS DEMAND SKILLS SUPPLY
  • 7. First Theorem of the Skilled Jobs Economy Utilization of enhanced skills depends largely on a demand for enhanced skills Demand for enhanced skills depends on innovation and creativity at the workplace Workplaces vested in the status quo do not contribute to demand for enhanced skills A culture of innovation creates a steady demand for enhanced skills
  • 8. Innovation Compete Locally High Quality Unique Products Responsive to customer tastes
  • 9. Specific skills & knowledge Competing Locally High Quality Unique Products Responsive & Flexible
  • 10. A Model of Policy Interventions for a Shift to a High-skill Equilibrium Public Policies, Programs & Institutions Private and Not-For- Profit Policies, Programs & Institutions Demand-side Processes More Value-added Products & Services Persuade People to Acquire Higher Skills Increase in Employer demand for Higher Skills Supply-side Processes Increase in Supply of Higher Skills Improve productivity, quality, cost, service; Promote innovation Fund & Promote Education & Training Policy Inputs Outcomes High-Skill Equilibrium (demand High Skill Surplus (Demand < Supply) = supply) High Skill Shortage (Demand > Supply) Feedback for Policy Adjustments
  • 11. Role of Industry Networks (Non-profits) Demonstrate 2 Diffuse Innovations Train 3 Support 4 Legitimate 1
  • 12. Role of Universities & Colleges • Niagara College as an Exemplar – Programs pertinent to local industry: viniculture, tourism & hospitality – Local labour market surveys – Internships – Research Projects – Contract research with industry

Editor's Notes

  1. Because of this variation we would argue that it is imperative that many sub-regions not only invest in the supply of skills but also the demand for skills: On left hand – balanced against on right side
  2. X axis: supply of skills – population in working age 15-64 with post secondary education Y axis : demand indicator Income from employment (weight=0.75) Employment in medium- high skilled jobs (weight=0.25) - skills level A using HRSDC classification The supply and demand indices are calculated on data for Canada, here we just present the values for Ontario
  3. Focus on Niagara and Kitchener Niagara is rural and in the second quadrant (low supply and relatively high demand) Kitchener is an urban area and is a potential high skilled equilibrium (high supply and high demand) THIS IS THE FIRST WAY OF PRESENTING THE DATA . THE FOLLOWING GRAPHS WILL SHOW THE SUPPLY AND DEMAND INDICES BY BENCHMARKING GROUP BASED ON EMPLOYMENT BY SECTOR  In this way we will compare EI regions with similar labour market characteristics