From Labour Skills to Skilled Labour - Realizing Our Economic Development Potential
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Skilled Labour Forecast

From Labour Skills to Skilled Labour - Realizing Our Economic Development Potential

 

During the month of May 2012, the Globe and Mail ran a series entitled “Our Time to Lead.” The May 4-18 series indicated that Canada will face an acute labour shortage of 1 million skilled workers by 2021. The Globe goes on to say “Virtually every sector of the economy is forecasting shortages: The information, communications and technology industry needs 106,000 people in the next five years, mining needs 112,000 by 2021, construction needs 319,000 by 2020 and Alberta will need 607,000 new workers in the next decade.”

Resource rich areas of the country (which are located for the most part in Northern Canada) are facing unprecedented demand for commodities that are in the ground and on top of the ground. Northwestern Ontario’s palladium, copper, gold, silver, iron ore and chromium are fueling the economic growth of developing countries such as India and China which account for 33% of the world’s population. Former Prime Minister Paul Martin in an interview on the CBC’s Doc Zone documentary series “The 8th Fire” stated that there was an estimated $200 billion of projects in various stages of approval or construction in Canada which are located largely on Aboriginal lands. According to a report entitled “Worldwide Outlook for Metals & Mining Construction Spending” by Industrial Information Resources, there is an estimated $63 billion in planned North American construction starts in this sector for 2012. This equates to $41 billion (65%) in Canada with the balance (35%) invested in the U.S.!

Other countries particularly Greece, Portugal, Ireland whose economies have recently undergone cataclysmic meltdowns look at Canada in awe because we not only fared much better than other countries, during the recent recession but we are so well positioned today because of our coast-to-coast-to-coast abundance in mineral wealth. So what has all of this got to do with Thunder Bay and Northwestern Ontario?

Quite simply the resource that is going to be in greatest demand and the one that is most critical for the foreseeable future by Thunder Bay and other resource rich areas across Canada are human resources, skilled trades, mining professionals and an educated workforce. The unemployment rate for Thunder Bay declined to 5.2% in April 2012 which compared to 7.8% for Ontario and 7.3% for Canada.

Today the five producing mines in Northwestern Ontario employ 3,545 staff and contractors. Among the estimated 13 new mines coming on stream between 2013-2017, eight of the companies/projects which are the most mature (first producers) responded directly to a Thunder Bay CEDC survey with employment forecasts. Based on this feedback, it is estimated that 3,955 skilled labourers and tradesmen will be required for the construction phase and 3,301employees for the operational phase of these projects alone. Using an Ontario Mining Association Multiplier of 4:1, this infers 13,204 indirect jobs (based on the operational phases) for a total of 16,505 direct and indirect jobs once the mines are in production. This forecast bodes very well for the future growth and development of the region…..provided that we are prepared for the opportunities at our doorstep. In order to capitalize upon these future employment opportunities, we must develop our local and regional talent and aggressively  market and brand Thunder Bay and the region as a choice Canadian destination to move to and raise a family not only because of the employment opportunities, but because of the enviable quality of life. Great areas like Thunder Bay and Northwestern Ontario must market themselves aggressively both nationally and internationally in order to realize their economic potential. We must let Canada and the rest of the world know that not all of the employment opportunities are going to be in Alberta and Saskatchewan!

In order for us to realize our anticipated economic potential, we will need to thoroughly comprehend the labour and skill requirements of industry and we must fully engage all of our academic and educational institutions and community partners to ensure we are fully prepared to meet the skilled labour challenge and realize the coming opportunities.

Steve Demmings, CEO

Thunder Bay community Economic Development Commission



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