2014
Labour Market Plan A Multi-Year Plan for Labour Market Development in Hamilton
October 2014
2014
Labour Market Plan A Multi-Year Plan for Labour Market Development in Hamilton
Acknowledgments Workforce Planning Hamilton would like to acknowledge our partners and other key stakeholders for their contributions to this report. The labour market intelligence presented here is much richer because of your contributions. WPH would also like to thank our partners from across the community for their collective and individual action in support of the priorities.
This Employment Ontario project is funded by the Ontario Government. This document may be freely quoted and reproduced without obtaining the permission of Workforce Planning Hamilton provided that no changes whatsoever are made to the text and Workforce Planning Hamilton is acknowledged as author. The information presented in this report is current at the time of printing. The views expressed in this document do not necessarily reflect those of the Government of Canada or the Government of Ontario. a member of
Workforce Planning Hamilton | 2014 Labour Market Plan
Table of Contents Executive Summary ....................... 4 Overview of the Plan and its Objectives ........................... 6 Methodology: The Labour Market Planning Process .............. 7 Update of Hamilton’s Labour Market Conditions ......................... 8 Trends over Time: Unemployment, Employment and Participation ................................ 8 Migration Characteristics ...... 10 Top Industries by Employment ............................... 11 Top Occupational Groups by Employment ......................... 12 Canadian Business Patterns ...................................... 14 Labour Supply Analysis of Job Seeking Clients ...................... 17 Employer Consultations ............. 21 Update on Local Labour Market Plans 2013-14 ................. 24 Priorities and Actions for 2014-17 ...................................... 27 Conclusion ...................................... 32 Works Cited ................................... 32
Appendix A – Headlines and Evidence Presented at the Community Consultation ................................... 33 Appendix B – Advisory Team Members .............................. 35 Appendix C - Employer Consultation Distribution by Industry and Employee Size Range ...................................... 36
Appendix D - Employment and Training Agencies Consulted for Analysis of EO and OW client Data ............... 37
List of Tables
Appendix E - List of Participating Organizations in Community Consultation .................................. 38
Table 2 Top 10 Industries By Employment, Hamilton CMA .......................... 11
List of Figures
Table 3 Top 10 Occupational Groups By Employment, Hamilton CMA ......................... 12
Figure 1 Labour Force showing Employment Levels, Unemployment Levels and Unemployment Rates, Hamilton CMA, Annual Average, 2008-2013 ..................... 9 Figure 2 Participation Rates, Employment Rates, and Unemployment Rates, Hamilton CMA, Annual Average, 2008-2013 ....................................... 9 Figure 3 Hamilton Business Counts 2008-2014, Canadian Business Patterns ......................... 14 Figure 4 Age Distribution of Clients, Hamilton and Ontario, April 2013March 2014..................................... 18 Figure 5 Clients by Designated Groups (Self-Identified), Hamilton and Ontario, 2013-2014............... 19 Figure 6 Clients by Highest Educational Attainment, Employment Service Clients and Ontario Works, 2013-2014 ....................................... 19
Table 1 Migration Characteristics by Age Groups, 2007 to 2012, Hamilton ......................... 10
Table 4 Employment Change by Skill Level, 2001-2011, Hamilton, Analyst .................... 13 Table 5 Hamilton Businesses by Employee Size Range, Canadian Business Patterns ..................... 14 Table 6 Hamilton’s Top Detailed Industries by Number of Businesses with Employees, Canadian Business Patterns ..................... 15 Table 7 Hamilton’s Highest Growth Industries by Number of Businesses with Employees, Canadian Business Patterns ..................... 15 Table 8 Hamilton’s Industries by Decline 2013-2014, Canadian Business Patterns ...................................... 16 Table 9 Overview of Client Data April 2013 – March 2014, Hamilton ..................................... 17
Figure 7 Basic Training Courses that Employers Value in New Hires........................ 23
Workforce Planning Hamilton | 2014 Labour Market Plan
Executive Summary The 2014 Labour Market Plan is the result of an extensive evidence-based planning process that discovers and prioritizes Hamilton’s labour market challenges and opportunities. It acts as a multi-year plan for community organizations, employers, job seekers and other stakeholders to contribute and build upon its developments. Hamilton’s labour market is evolving. As the local economy continues to recover from the last recession, employment is increasing and the unemployment rate is stabilizing. Economic encouragements such as strong business growth, over $1 billion in new building permits in 2013 and being ranked the ‘Top Investment City in Canada’ in 2012 and 2013 by Site Selection Magazine have all driven positive momentum in the local labour market. However, with an increasingly diversified economy, the type of work now available is also changing. New evidence from the 2011 National Household Survey shows that part-time work is prevalent (accounting for 22% of work in Hamilton), self-employment is gaining momentum and 11% of workers indicated they have no fixed workplace address. Helping unemployed or underemployed workers, including those accessing Employment Ontario services and/or those with barriers to employment, navigate Hamilton’s new labour market realities is vital to the long-term success of the city. As such, the need for local real-time labour market information is more important than ever.
Since the last recession, Hamilton’s employment figures have increased and unemployment rates have decreased. New opportunities for job seekers have been created as the economy continues to diversify.
Employers’ needs are also shifting. Through the 2014 Hire Learning Survey and in-depth interviews, over 200 employers in Hamilton were consulted about their workforce needs and challenges. Skill requirements continue to increase, as well as the demand for multi-skilled workers across all industries. Finding qualified candidates can make recruitment challenging, especially for small and medium-sized businesses and the importance of developing high-level soft skills should not be understated. Demand-driven priorities were determined based on the results of the employer and employment and training network consultations. Nine key themes that emerged from the consultations were presented to community organizations who then determined which of the themes the employment and training network could best address over the next several years. These themes have become Hamilton’s labour market priorities. Actions and partnerships to address each priority are already underway.
Hamilton’s Labour Market at a Glance - 2013 (CMA) Employment
377,100
(Increase of 0.8% since 2009)
Unemployment Rate
6.4%
(Down 2% from height of recession in 2009)
Participation Rate
63.8%
(Down 3.8% since 2009) Source: Statistics Canada, Labour Force Survey
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Workforce Planning Hamilton | 2014 Labour Market Plan
The following priorities were determined by the community to be the ones that are most important and can best be addressed over the next several years.
Hamilton’s Multi-Year Labour Market Priorities
1 2 3 4
ACTION UPDATE
SOFT SKILLS DEVELOPMENT Identified need in building fundamental soft skills for new labour market entrants and those with barriers to employment.
DESIGNATED GROUPS ENGAGEMENT WITH THE LABOUR MARKET Designated groups (including youth, immigrants, persons with disabilities, visible minorities and Aboriginals) face specific and unique challenges to finding employment.
UNDERSTANDING INCREASING AND EVOLVING SKILLS REQUIREMENTS Technological advancement across all industries requires multi-skilled workers at all levels who are adaptable, flexible and willing to learn.
FROM PREVIOUS LABOUR MARKET PLAN CYCLE Actions from the last labour market planning cycle have not been forgotten. Tremendous advancements on important labour market issues have been made, including over 25 different community projects and partnerships over the past several years. As we continue to strengthen and better integrate the employment and training network, our workforce will have the skills and training to best prepare them to find successful long-term employment.
EXPLORING OPPORTUNITIES IN HAMILTON’S DIVERSIFYING ECONOMY Broaden job seekers’ awareness of the growth of opportunities of SMEs and different work environments (including part-time, contract and shift- work) through labour market information and other resources.
This plan has been created by a truly community-wide joint effort. Without the support and guidance from business, the employment and training network, education and other stakeholders, this plan would not succeed. For more information about how you can support Hamilton’s Labour Market Plan please contact Workforce Planning Hamilton.
Business, Labour & Community: Planning for Prosperity
Workforce Planning Hamilton | 2014 Labour Market Plan
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Overview of the Plan and its Objectives Hamilton’s workplaces are transforming. Once dominated by the manufacturing industry, the local labour market has diversified, giving rise to new opportunities and creating challenges for our workforce. As the local and provincial labour markets continue to recover from the economic downturn, businesses are becoming more innovative and resourceful. As such, the nature of work is changing, and skills requirements by employers are increasing. This transformation makes it more important than ever to have accurate local labour market information. We need to make sure that Hamilton’s workforce is properly aligned to meet the needs of its employers. The annual Labour Market Plan is the result of Workforce Planning Hamilton’s evidencebased planning process that documents Hamilton’s labour market conditions and identifies new priority demand-driven labour market issues and actions for the community.
The objective of the 2014 Labour Market Plan is to identify Hamilton’s multi-year labour market priorities and establish community actions and efforts to address these priorities.
The 2014 LMP will act as the foundation for a new multi-year plan that needs full support from all labour market stakeholders in order to succeed. It is important to note that the LMP does not belong to government, nor does it belong to any particular group or organization. There is a need for collaborative action from education and training institutions, businesses, industry associations, labour, as well as government. Meeting current and future local labour market needs requires our collective attention and absolute efforts. Workforce Planning Hamilton would like to thank all those who helped to make this report possible. Without the efforts of the advisory team, the input from employers and the employment and training community, this plan would not be possible. Thank you to everyone who contributed their knowledge to the labour market planning process.
ABOUT
Workforce Planning Hamilton MISSION: WPH is a leader in local workforce development providing evidence-based analysis and engaging a broad range of labour market stakeholders. VISION: WPH is a leader in transforming local labour market information into workforce planning solutions that contribute to a prosperous and diverse Hamilton community. Workforce Planning Hamilton (established in 1997) is a catalyst for economic and labour market development, building solutions and engaging multi-stakeholder alliances. To achieve results for our community in the area of labour market development we work in partnership with a broad range of stakeholders including business, labour and other community partners. We are a member of Workforce Planning Ontario, a network of twenty-six labour market planning regions covering Ontario. WPH is funded by Employment Ontario – the Ministry of Training, Colleges and Universities. Visit our website www.workforceplanninghamilton.ca to review our many research reports, project activities and other publications.
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Workforce Planning Hamilton | 2014 Labour Market Plan
Methodology: The Labour Market Planning Process The planning process for the 2014 Labour Market Plan involved analysis of local labour market indicators, as well as consultations from key stakeholders in the community. The key stages of the planning process are outlined here.
1. Update on Hamilton’s current labour market conditions An ongoing literature review, combined with a comprehensive data analysis, gives an evidence-based foundation on which to base key stakeholder consultations. The following data sources were used to form the update of the labour market: Labour Force Survey, Canadian Business Patterns, 2011 National Household Survey, EMSI’s Analyst, 2014 Hire Learning Survey and Vicinity Jobs’ online job vacancies.
WPH will revisit each priority and report progress of each action in the 2015 Labour Market Plan.
2. Labour supply analysis of job-seeking clients For the second time, the Ministry of Training, Colleges and Universities provided WPH with aggregated client data for the year April 2013 – March 2014. The City of Hamilton’s Community and Emergency Services also provided WPH with aggregated client data for the same time period for Ontario Works recipients. WPH used this data to form the basis for a discussion with employment and training service providers about local service issues including gaps, overlaps, and underserved populations. The issues identified through the labour supply analysis were brought forward with the employer consultation results to the community event in September 2014 to plan coordinated actions to address the issues.
3. Employer consultations The 2014 Hire Learning Survey gathered information from Hamilton employers about their employment outlook, occupations in demand/decline, recruitment challenges and skill requirements. Building upon these results, WPH conducted 63 in-depth interviews with employers and representatives of each of the top sectors of employment. Through these interviews, employers expanded on their recruitment difficulties including occupations and required skill sets. After the discussion of their key workforce challenges, employers identified their top priority for the employment and training network to focus on.
4. Community consultation WPH hosted the broad employment and training community for a consultation held on September 10, 2014. Representatives from 24 community stakeholder organizations attended the consultation facilitated by the Queen’s School of Business Executive Decision Centre. Nine headlines identified from the employer and service provider consultations were presented before the community to decide which priorities the employment and training community can best address over the next several years. The group then prioritized and agreed on four headlines. They brainstormed over 50 potential actions for these priorities and divided them by timeframes.
5. Launch of the Labour Market Plan and partnership development The community consultation identified potential partnerships to address each action. Actions for the short, medium or long-term may be adjusted as necessary as they become more robust and additional partnerships are formed. WPH will host an engagement session in early November 2014 to formalize partnership agreements around these actions.
Workforce Planning Hamilton | 2014 Labour Market Plan
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UPDATE OF HAMILTON’S Update of Hamilton’s Labour Market Conditions LABOUR
Understanding Hamilton’s current labour market conditions is essential to the evidence-based labour market planning process. The consultations with employers and community stakeholders were based on data-driven local labour market indicators and a literature scan of workforce developments over the past year. An overview of key indicators and trends is presented here. Looking at current trends, it is clear that Hamilton’s labour market continues to recover from the economic downturn. In both 2012 and 2013, Site Selection Magazine named Hamilton the ‘Top Investment City in Canada’ and the Real Estate Investment Network ranked Hamilton as the ‘Top Location for Investment in Ontario’.1 Building permits continued to see strong growth in 2013, with over $1.03 billion in construction value.2 Some of the major projects over the past year have included the construction of Homewood Suites and Bella Towers complex, McMaster University’s health campus downtown, the Tim Hortons Field stadium and other large industrial projects in the business parks.
The unemployment rate does not fully illustrate the health of the local labour market.
Labour Market Trends over Time: Unemployment, Employment and Participation As shown in Figure 1, Hamilton’s total labour force (people who are either employed or looking for work) has increased 1.3% since 2008, similar to the growth experienced in Ontario during the same time period. Employment grew 1.1%, while the number of people unemployed increased 5.3%, but is down from the height of unemployment levels during the economic downturn in 2009. The unemployment rate has steadied since 2011 even though employment has slightly declined during this time, which indicates people may be dropping out of the labour force. The unemployment rate does not fully illustrate the health of the labour market; with several recent studies looking closely at what lower unemployment rates since the recession really means for the provincial and national economies. The Bank of Canada found the unemployment rate has overestimated the jobs recovery in Canada and the US. An unusually large share of the unemployed have been out of work for six months or more and many workers who would like full-time work have only been able to obtain part-time employment.3 To get a clearer picture of labour market conditions in Hamilton beyond the unemployment rate, participation and employment rates can also be studied.
1
City of Hamilton, Economic Development Hamilton’s building boom continues in 2013, Lisa Marr, January 7, 2014 3 Zmitrowicz, Konrad and Khan, Mikael. Beyond the Unemployment Rate: Assessing Canadian and US Labour Markets Since the Great Recession. Bank of Canada, 2014. 2
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Workforce Planning Hamilton | 2014 Labour Market Plan
500 450 400 350
8.4% 6.1%
7.6%
6.4%
6.5%
6.4%
24.4
34.1
30.7
25.9
26.7
25.7
373.1
374.1
371.8
379.4
381.2
377.1
2008
2009
2010
2011
2012
2013
300 Employment
Unemployment
10.0% 8.0% 6.0% 4.0% 2.0% 0.0%
Unemployment Rate
Employment and Unemployment Levels (in 000s)
Figure 1. Labour Force showing Employment Levels, Unemployment Levels and Unemployment Rates, Hamilton CMA, Annual Average, 2008-2013 (Labour Force Survey)
Unemployment rate
70.0%
10.0% 8.0%
65.0%
6.0% 4.0%
60.0%
2.0% 55.0%
0.0% 2008
2009
Participation rate
2010
2011
Employment rate
As shown in Figure 2, the unemployment rate has steadied since 2011; however, the participation and employment rate have decreased. Unemployment rates in Hamilton tend to be lower than those of Ontario, but so are participation and employment rates. In a Workforce Planning Hamilton discussion paper, Are Hamiltonians giving up the job search? The reality behind the numbers it was found that participation rate decline is due in part to demographic shifts as the population ages, as well as a steep decline in youth participation. How much of the youth declining participation is due to people staying in school longer or if youth have given up on finding work requires further research.
2012
2013
Unemployment Rate
Participation and Employment Rates
Figure 2. Participation Rates, Employment Rates, and Unemployment Rates, Hamilton CMA, Annual Average, 2008-2013 (Labour Force Survey)
Unemployment rate
the unemployment rate has steadied since
2011 Workforce Planning Hamilton | 2014 Labour Market Plan
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Migration Characteristics Table 1. Migration Characteristics by Age Groups, 2007 to 2012, Hamilton (Taxfiler) Age Group
In-migrants
Out-migrants
Net-migrants
0-17
20,613
16,412
4,201
18-24
13,705
11,340
2,365
25-44
40,564
34,348
6,216
45-64
15,796
14,585
1,211
65+
5,944
5,967
-23
Total
96,622
82,652
13,970
Migration characteristics show positive growth for Hamilton’s labour market. From 2007-2012 Hamilton has seen a total of 13,970 net-migrants. Approximately 70% of net-migration in Hamilton is experienced from people of typical working-age (18-64 years), with the other 30% of net-migration from children and youth who will contribute to our future workforce. It is important to note that Hamilton typically receives a steady number of immigrants each year. Approximately 3,190 permanent residents came to Hamilton in 2013.4
Net-migrants is calculated as the difference between
Approximately
70% of net-migration in Hamilton is experienced from people of typical working age 4
10
in-migrants (those who have moved to Hamilton from elsewhere inside or outside Canada) and out-migrants (those who have moved away from Hamilton to elsewhere inside or outside Canada). Positive net-migrant values for working-age groups indicate growth in the potential labour pool.
Citizenship and Immigration Canada
Workforce Planning Hamilton | 2014 Labour Market Plan
Top Industries by Employment Table 2. Top 10 Industries By Employment, Hamilton CMA (Labour Force Survey) Employment 2013 Annual Average
% of Total Employment
% Change 2008-2013
Ontario % Change 2008-2013
Location Quotient
1. Trade
57,500
15.2%
-2.5%
-0.5%
1.03
2. Health care and social assistance*
50,100
13.3%
5.0%
13.2%
1.17
3. Manufacturing*
47,500
12.6%
-11.4%
-13.3%
1.12
4. Educational services
31,400
8.3%
2.6%
7.7%
1.10
5. Professional, scientific, technical services*
29,600
7.9%
34.5%
15.2%
0.95
6. Construction
28,900
7.7%
6.3%
5.2%
1.15
7. Finance, insurance, real estate and leasing
26,500
7.0%
9.5%
9.8%
0.93
8. Accommodation and food services
25,300
6.7%
13.5%
6.8%
1.07
9. Business, building, other support services
16,200
4.3%
-9.0%
6.5%
0.94
10. Transportation and warehousing*
15,700
4.2%
-7.1%
2.2%
0.87
ALL INDUSTRIES
377,100
87.2%
1.1%
3.2%
Industry
*- denotes part of a City of Hamilton Economic Development key cluster
One of the most common methods to describe the labour market is through levels of employment by industry. The diversity of Hamilton’s labour market is apparent in Table 2’s top 10 industries of employment. Trade (retail and wholesale) continues to be the top industry of employment in Hamilton, representing 15.2% of all employment, while health care and social assistance became the second most prevalent industry. Industries that experienced the greatest growth were not necessarily the top industries of employment, with high growth in knowledge industries of professional, scientific and technical services, and finance, insurance, real estate and leasing. Detailed industry profiles available on WPH’s website take a closer look at the prevalent occupations in each industry to help job seekers and other stakeholders discover where the jobs are in Hamilton.
The higher the location quotient, the more opportunity there may be for employment within that industry in Hamilton compared to Ontario.
Location quotients (LQ) measure the degree of concentration of an industry in Hamilton compared to Ontario. A LQ of “1” means that the number of jobs in that industry in Hamilton is exactly the same proportion as found in Ontario as a whole. A LQ of “2” would mean that industry has twice the proportion of jobs in Hamilton compared to Ontario, while “0.5” would mean half. Table 2 illustrates Hamilton has a substantial greater employment concentration in health care and social assistance, manufacturing, educational services, and construction than Ontario as a whole.
For detailed industry spotlights using data from the 2011 National Household Survey, including subsector employment, business distribution and workforce profiles visit Workforce Planning Hamilton’s website www.workforceplanninghamilton.ca
Workforce Planning Hamilton | 2014 Labour Market Plan
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Top Occupational Groups by Employment Another way to profile Hamilton’s labour market is by the occupations of Hamilton residents. Not all of these jobs are located in Hamilton (as some people will commute outside of the city to work), but the majority of residents both live and work in Hamilton. Table 3. Top 10 Occupational Groups By Employment, Hamilton CMA (Labour Force Survey) Employment 2013 Annual Average
% Change 2008-2013
Ontario % Change 2008-2013
1. Sales and service occupations
95,900
2.6%
5.6%
2. Business, finance, and administrative occupations
63,300
0.8%
2.8%
3. Trades, transport and equipment operators and related occupations
51,800
-12.5%
-1.8%
4. Occupations in social science, education, government service and religion
37,200
7.8%
12.7%
5. Management occupations
35,300
-5.4%
-7.1%
6. Health occupations
29,000
9.8%
13.39%
7. Natural and applied sciences and related occupations
23,700
20.9%
5.5%
8. Occupations unique to processing, manufacturing and utilities
21,400
-7.4%
-7.6%
9. Occupations in art, culture, recreation and sport
13,100
24.8%
9.6%
10. Occupations unique to primary industry
6,400
4.9%
5.0%
377,100
1.1%
3.2%
Occupational Group
ALL OCCUPATIONS
As shown in Table 3, sales and service continues to be the top occupational group in both Hamilton and Ontario. Online job vacancy statistics also show that sales and service (including retail) is the most common type of job posting each quarter. In March 2014 WPH released Discovering Career Success through Sales and Service in Hamilton, which found that there are many different career paths in sales and service for job seekers of all educational backgrounds and the opportunities are expected to continue to grow. The top occupational groups by employment are not necessarily the groups that have experienced the highest growth over the past five years. From 2008-2013 Hamilton has seen strong growth in art, culture, recreation and sport occupations, natural and applied sciences and related occupations, and health occupations.
sales and service continues to be the occupational group
top
12
TOP
5
Hamilton’s Top Occupational Groups by Online Job Postings April 2013 – March 2014 1. Sales and service 2. Management 3. General help wanted (including warehouse jobs) 4. Trades, transport and construction 5. Administrative and legal Source: Vicinity Jobs Inc
Workforce Planning Hamilton | 2014 Labour Market Plan
Employment by Skill Level Using the National Occupational Classification (NOC), occupations can also be categorized based on the skill level typically required for the position. Detailed skill level trends over time in Hamilton can be examined using EMSI’s Analyst tool. As shown in Table 4, occupations that typically require postsecondary education are increasing and accounted for 56.9% of all employment in 2011. In fact, employment in occupations typically requiring university education (Skill Level A) has increased 21.8% since 2001 in Hamilton, more than 6 times the increase than the next leading skill level change.
Table 4. Employment Change by Skill Level, 2001-2011, Hamilton, Analyst Skill Level
Employment % Change 2001-2011
A (university education typically required)
21.8%
B (college or vocational training typically required)
3.6%
C (secondary schooling or occupationspecific training typically required)
-2.8%
D (on-the-job training typically provided)
1.4%
Results from the 2014 Hire Learning Survey found that
67%
of employers surveyed expect skill requirements to continue to increase to a moderate or significant extent over the next 5 years. Academic upgrading and continuous learning are essential for job seekers to be competitive in today’s labour market. While workers with any postsecondary education have lower unemployment rates than those without, those who studied education, health and related fields, and mathematics, computer and information sciences have the lowest unemployment rates in Hamilton (2011 National Household Survey).
Workforce Planning Hamilton | 2014 Labour Market Plan
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Business Growth and Decline Canadian Business Patterns data released by Statistics Canada every six months provides a count of businesses operating in Hamilton, categorizing them by industry and employee size range. This data provides accurate up-to-date information about local labour demand and can be used to get a sense of employment needs by industry.
Number of Businesses
Figure 3. Hamilton Business Counts 2008-2014, Canadian Business Patterns
17000 16000 15000 14000 13000 12000 2008
2009
2010
2011
Indeterminate
2012
2013
2014
Businesses with employees
As of June 2014, Hamilton has 30,635 businesses, an increase of 1.9% since last year. Figure 3 shows business growth over time for both indeterminate businesses (meaning there are no employees on payroll) and businesses with employees. Following a period of relative stagnancy from 2008-2012, both indeterminate and businesses with employees have seen considerable growth in the past two years.
Businesses by Employee Size Range Table 5 shows the change in number of employers based on their employee size range. While much of the growth was seen in small employers, Hamilton did see considerable growth in the number of large employers with over 500 employees. Table 5. Hamilton Businesses by Employee Size Range, Canadian Business Patterns Employee Size Range
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Number Number of of Employers Employers 2013 2014
Absolute Change
Percent Change
Ontario Percent Change
Indeterminate
16,218
16,672
454
2.8%
4.9%
1-4
7,330
7,445
115
1.6%
2.5%
5-9
2,934
2,846
-88
-3.0%
1.2%
10 - 19
1,727
1,785
58
3.4%
1.9%
20-49
1,211
1,234
23
1.9%
4.1%
50-99
380
376
-4
-1.1%
3.0%
100-199
160
160
0
0.0%
-1.3%
200-499
85
85
0
0.0%
1.3%
500+
27
32
5
18.5%
5.1%
Total
30,072
30,635
563
1.87%
3.77%
FAST FACTS
•
Hamilton has 30,635 businesses as of June 2014
•
54% of businesses are owner-operated
•
Of businesses with employees, 86% have under 20 employees and 98% have under 100 employees
Workforce Planning Hamilton | 2014 Labour Market Plan
Businesses with Employees by Detailed Industry Table 6. Hamilton’s Top Detailed Industries by Number of Businesses with Employees, Canadian Business Patterns Rank
Detailed Industry
Number of Employers 2014
% of All Employers
Growth (2013 - 2014)
1
541 - Professional, scientific and technical services
1,387
9.9%
2.8%
2
621 - Ambulatory health care services
1,305
9.3%
4.1%
3
238 - Specialty trade contractors
1,221
8.7%
1.2%
4
722 - Food services and drinking places
983
7.0%
3.8%
5
561 - Administrative and support services
648
4.6%
-1.2%
Table 6 shows the top 5 subsectors by total number of employers (with employees). Indeterminate businesses were not included in these rankings, as they are not a current driving force for employment (although they may be in the future). Comprising almost 10% of all businesses, professional, scientific and technical services is the top detailed industry by number of businesses, followed by ambulatory health care services and specialty trade contractors. An industry that has both a high number of businesses and is growing, indicates areas where job seekers may find more opportunities.
Highest Growth Industries Table 7. Hamilton’s Highest Growth Industries by Number of Businesses with Employees, Canadian Business Patterns Number of Employers 2013
Number of Employers 2014
Absolute Change 2013-2014
Percentage Change 2013-2014
621 – Ambulatory health care services
1,254
1,305
51
4.1%
541 – Professional, scientific and technical services
1,349
1,387
38
2.8%
722 – Food services and drinking places
947
983
36
3.8%
531 – Real estate
518
548
30
5.8%
484 – Truck transportation
490
516
26
5.3%
Detailed Industry
Ambulatory health care services and professional, scientific and technical services are not only two of the top subsectors by number of businesses, but they are also two of the highest growth industries over the past year. Other high growth industries by number of businesses include food services and drinking places, real estate, and truck transportation. Job seekers may have great opportunity for employment in these growing industries.
Workforce Planning Hamilton | 2014 Labour Market Plan
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Declining Industries Table 8. Hamilton’s Industries that Experienced the Most Decline 2013-2014, Canadian Business Patterns Number of Employers 2013
Number of Employers 2014
Absolute Change 2013-2014
Percentage Change 2013-2014
447 - Gasoline stations
115
86
-29
-25.2%
112 - Animal production and aquaculture
64
44
-20
-31.3%
814 - Private households
103
86
-17
-16.5%
451 - Sporting goods, hobby, book and music stores
104
93
-11
-10.6%
713 - Amusement, gambling and recreation industries
103
92
-11
-10.7%
Detailed Industry
While the total number of businesses has increased over the past year, there are subsectors that are declining. Table 8 shows the five industries that saw the steepest decline in the number of businesses from 2013-2014. Job seekers may have a tougher time finding employment in these declining industries.
TOP
Opportunities for Self-Employment
5
Indeterminate or owner-operated businesses have seen strong growth in the past two years. Since 2012, indeterminate businesses in Hamilton have increased 17.0%, compared to 6.8% growth of businesses with employees during the same time period. There are many support services and resources available in Hamilton to help individuals start their own business, including those offered by employment service providers and the Small Business Enterprise Centre. The high growth in owner-operated businesses may indicate the strength and importance of these services.
Top Industries for Indeterminate Businesses (By Number of Businesses in 2014) 1. Real estate 2. Professional, scientific and technical services 3. Specialty trade contractors 4. Management of companies and enterprises 5. Truck transportation
indeterminate businesses in Hamilton have increased
16
17%
Workforce Planning Hamilton | 2014 Labour Market Plan
Labour Supply Analysis of Job Seeking Clients For the second consecutive year, the Ministry of Training, Colleges and Universities and the City of Hamilton Community and Emergency Services both provided Workforce Planning Hamilton with aggregated client data sets for the year April 2013- March 2014. While Employment Ontario and Ontario Works recipients do not encompass the entire unemployed population, the data sets do help provide insight into the subset of job seekers accessing services. Workforce Planning Hamilton presented this data through an online discussion with the employment service organizations to identify any potential gaps, overlaps or underserved populations.5 The insights gained through this data consultation were brought forward to the community labour market planning session.
Overview Table 9. Overview of Client Data April 2013 – March 2014, Hamilton 2012-2013
2013-2014
% Change Hamilton
% Change Ontario
Employment Ontario – Unassisted Resource and Information Clients
N/A
13,918
N/A
N/A
Employment Ontario- Employment Service Assisted
4,292
5,872
36.8%
6.3%
816
969
18.8%
30.2%
20,303
19,215
-5.4%
N/A
3,626
3,912
7.9%
N/A
Employment Ontario- Literacy and Basic Skills Ontario Works – Active Applicants6 7
Ontario Works- Employment Counseling
As shown in Table 9, Hamilton saw a considerable increase in the number of employment service assisted clients served from April 2013-March 2014 compared to the year previous, with a smaller increase in the number of LBS learners and OW clients who accessed employment counselling. Consultation with agencies revealed that growth in the number of clients served can be attributed in part due to increased marketing/increased awareness of services, (as indicated by 75% of agencies), introduction of the Youth Employment Fund (66.7%), specialized outreach for target groups (41.7%) and more focused and directed marketing for Ontario Works staff. Word of mouth proved particularly valuable for reaching additional clients as more people in the community heard about the benefits of accessing services. Larger caseloads have caused a shift in priorities for meeting client needs while still maintaining high levels of customer service. More clients accessing services with no increase in staffing has resulted in more limited time for individualized counselling and the capacity of each team is maximized to provide intensive case management with limited resources.
5
See Appendix for list of responding organizations The total number of persons that at some point during the April 2012-March 2013 timeframe received Ontario Works benefits as an active applicant of a benefit unit. 7 This number does not include those who use the OW employment resource centre independently. 6
Workforce Planning Hamilton | 2014 Labour Market Plan
17
Age Distribution of Clients Figure 4. Hamilton Business Counts 2008-2014, Canadian Business Patterns
Age Distribution of Clients 0.7%
0.8%
1.9%
3.4%
0.2%
30.2%
29.6%
19.4%
22.5%
26.2%
47.3%
44.5%
49.3%
47.3%
47.0%
65 and over 45 to 64 25 to 44
21.8%
22.6%
31.4%
Hamilton
Ontario
Hamilton
Employment Service Clients
29.4%
24.3%
Ontario
Hamilton
Literacy and Basic Skills
15 to 24 years
Ontario Works
Hamilton has a similar age distribution as Ontario. Clients in different age groups face different challenges gaining employment. Youth tend to have a lack of experience with the labour market and therefore require more on-the-job support to retain employment. Agencies noted the high turnover and lack of professionalism among many youth workers (an observation also evident through the employer consultation process). Employment and training agencies must also tailor different programs for older workers, as they may have unrealistic expectations and a common theme of underdeveloped computer skills. That being stated, many programs designed to develop marketable skills for the current labour market are applicable for all age groups.
Introduction of the Youth Employment Fund With the introduction of the YEF during Fall 2013, many employment service agencies have already seen much success assisting youth in finding employment. With less risk to the employer to hire youth workers, placements have been on the rise, allowing these workers to gain practical experience. Referrals to agencies that deliver YEF have also increased. However, job retention of youth workers was noted as a potential issue, again due to lack of professionalism and sense of entitlement of many people in this group.
Clients that experience challenges with employment and are in need of additional support to secure employment benefit from programs targeted for their age group and circumstances.
It will be important to look at the effect of the YEF on the number of youth clients and their outcomes once a full year of the program has passed.
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Workforce Planning Hamilton | 2014 Labour Market Plan
Designated Groups Figure 5. Clients by Designated Groups (Self-Identified), Hamilton and Ontario, 2013-2014
25.0% 19.3%
20.0% 15.0% 10.0%
10.0% 9.7%
8.9% 7.2% 4.1% 5.0%
5.0%
9.0%
8.0%
6.3% 6.2%
6.6%5.7%
4.5%
1.6% 2.7%
0.0% Newcomer
Visible Minority
Hamilton - ES
Ontario - ES
Person with Disability Hamilton - LBS
Aboriginal Group
Ontario - LBS
During consultation for Workforce Trends in Hamilton, it was heard that clients belonging to one or more of these designated groups can be more difficult to serve as they can require more time and resources to connect them with the right training and jobs. These challenges remain this year, although several agencies noted providing staff with more resources and training to support and best serve clients with barriers to employment. Through WPH’s Hamilton’s Employment and Training Network report released in January 2014, it was found that the service mix in Hamilton is distributed to help each designated group. Many of the employment and training agencies noted that while services are available for each group, there is room to improve or add more programs particularly targeted to persons with disabilities and newcomers. Wrap-around external support organizations were identified as imperative to client success and more integration between organizations would prove helpful for clients.
Academic Upgrading Vital to Finding Long-Term Employment Success Figure 6. Clients by Highest Educational Attainment, Employment Service Clients and Ontario Works, 2013-2014
Ontario Works
43.1%
32.1%
24.8%
Less than high school Secondary school Postsecondary school
Hamilton - ES Clients
14.2%
29.3%
47.8%
8.7%
Other
‘Other’ (not collected for Ontario Works data) refers to some college, some university or some apprenticeship.
Workforce Planning Hamilton | 2014 Labour Market Plan
19
Continuous learning is crucial to long-term employment success. The 2014 Hire Learning Survey found that 67% of Hamilton employers expect skill requirements to increase to a moderate or significant extent over the next 5 years. Many clients would benefit from academic upgrading, yet there is resistance in pursuing this training. This may be because of a perceived negative stigma, immediate need for employment income or lack of understanding of what skills are truly required. Increasing awareness of literacy and basic skills training options (part-time, in-class, online, etc) is important so clients know they can access upgrading while still pursuing employment. Without proper education, jobs that some clients must take are low-skilled, low-income positions that are not sustainable long-term. In Fall 2013, WPH partnered with the Adult Basic Education Association to help Literacy and Basic Skills practitioners incorporate relevant labour market information within their learners’ goal paths to help bridge the transition from LBS to employment services.
Second Career
There may be further opportunity for workplace skills development with the introduction of the Canada-Ontario Job Grant.
Of the 162 Second Career clients for whom there is an outcome at exit, 57 (35.2%) indicated they were employed. At 12 months, the percentage employed increased to 80.6%. During consultations, it was heard that success in the Second Career program largely depends on what occupation clients train for, as well as what institution clients attend. Investment needs to begin at the beginning of the process to do research into the demand outlook for potential occupations. Agencies noted that emphasis on transferable skills needs to be presented to clients.
Apprenticeship The Hire Learning Survey found that skilled trades was one of the top occupational groups that employers indicated would be in demand over the next year. Increased demand, combined with an older than average workforce in many of the trades, indicates there will be opportunities for new workers in these positions. However, the number of new apprenticeship registrations decreased 2.7% last year in Hamilton and 13.8% across the province. Agencies identified missed opportunities of promoting trades including: promoting apprenticeship more during high schools, presentations directly to LBS learners, engaging more employers to embrace apprenticeship, and making the Ontario College of Trades changes more clear to staff and clients.
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Workforce Planning Hamilton | 2014 Labour Market Plan
Employer Consultations Employer consultations are a central component to labour market planning. Employers create the demand for labour in the community, including the type and skill level of work available. Understanding the key workforce issues from the employer perspective ensures that the skills of our workforce can be properly aligned for current and future labour market requirements. In order to find out the current demand-driven workforce priorities in Hamilton, several methods were used to gather information from employers about evolving skill requirements, training initiatives, recruitment challenges and retention. WPH’s Hire Learning Survey (HLS), which was distributed in January 2014, received 166 total responses from employers about these workforce topics and identified key issues that the employment and training community could address. Building upon the Hire Learning results, WPH also followed up with 63 employer interviews representing all industries of employment and employee size ranges.8 To be interviewed, employers must have hired at least one new employee in the past year or plan to hire at least one new employee in the next year. Interview questions were formed based on the evidence found from industry cross-tabulations using data from the 2011 National Household Survey. These profiles can be found on Workforce Planning Hamilton’s website.
Key themes heard throughout consultations Overall, Hamilton employers generally have a positive employment outlook. The HLS found that 72% of employers plan to hire at least 1 new employee in the next year and 16% plan to hire at least 20 new employees. In particular, businesses in health care and social assistance, finance, insurance, real estate and leasing, and professional scientific and technical services were most likely to indicate they were currently growing in the number of employees.
Skill Requirements While proper certifications and specific technical skills are required to be considered for most positions, across all industries the most common skills gaps identified by employers were soft skills. • Of the applicants that have the specific educational or technical background, excellent soft skills differentiate those who will excel at the job – difficulty is finding applicants with the right combination of technical and soft skills • Employers who hire entry-level positions were more likely to indicate soft skills as difficult to find in potential employees • Soft skills self-identified by employers as the most difficult to find include communication, positive attitude, and strong work ethic Employees with the right technical and soft skills for the job have lower turnover than those who do not have the right fit. • Most common reasons for turnover included leaving for full-time opportunities, compensation and to pursue advancement opportunities elsewhere • Turnover tended to be more of an issue for entry-level positions and for industries that typically have shift or part-time work such as trade or accommodation and food service • Most employers (large and small) are working on their workplace culture as a way to retain employees – making their organization a place people want to work
8
See Appendix C for distribution of employers interviewed by industry and size range.
Workforce Planning Hamilton | 2014 Labour Market Plan
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Employers’ increasing and evolving skill requirements continue to place importance on continuous learning. • Basic computer skills are becoming essential across all industries, even for non-traditional occupations Administrative roles are mostly going digital, but even production/
service workers are using more technology in day-to-day uses (e.g. using an app to get schedules, or tablets to record information) • Training for new technology differs company to company Large employers tend to have formal training procedures, sometimes
created by head offices, while smaller employers indicated they are able to train on a more individual basis depending on specific employee needs
67% of HLS respondents expect skill requirements to increase to a moderate or significant extent over the next 5 years
Trial and error with new technology – important to have tech savvy
individuals in many positions and those taking the initiative to learn new programs and procedures
Recruitment Sectoral approach to job development is key as industry- and occupation-specific recruitment challenges were apparent. • Health care and manufacturing top the list as the industries with more recruitment challenges, generally for part-time or shift positions • Employers typically identified recruitment was challenging for one or two occupations they hire for, not for the entire organization (specific occupations mentioned are too numerous to list here) • The more specific the technical or educational skills required, the more challenging it is to recruit qualified applicants • The most common occupations identified as difficult to recruit for were skilled trades and other highly technical occupations • 56.4% of employers interviewed indicated that hard-to-fill positions were experienced, whereas only 17.7% of employers said they had difficulty filling entry-level positions
22
87% of HLS respondents indicated recruitment was either somewhat challenging or very
TOP
challenging.
5
Recruitment Methods 1. Word of mouth/employee networks 2. Online job listing 3. Organization’s website 4. Personal contacts 5. Social media Source: 2014 Hire Learning Survey
Workforce Planning Hamilton | 2014 Labour Market Plan
Training Most employers indicated they provide all training but some basic courses can make an applicant more competitive. Figure 7. Basic Training Courses that Employers Value in New Hires
Are there any basic training courses a job seeker can take beforehand that will help them succeed once on the job?
WHMIS, 22.6% Computer (basic), 21.0% Health and safety, 9.7% First Aid, 9.7% Forklift, 6.5% Food handling, 4.8% Smart Serve, 3.2%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
• The more specific a course to the industry/occupation an applicant is applying for can show commitment and dedication to a career rather than just a job • Courses such as these can help demonstrate engagement with the labour force even when unemployed • 93.5% of employers provide all on-the-job training for new employees – ability to learn once on the job is key • Other courses that were mentioned that can help job seekers succeed included literacy, writing, soft skills training, or college courses specific to the occupation they are applying for
93.5% of employers provide all on-the-job training
Workforce Planning Hamilton | 2014 Labour Market Plan
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Update on Local Labour Market Plan 2013 - 14 WPH last reviewed priorities with the community in 2010 and at that time four challenges emerged as key labour market priorities for action. The following section highlights these priorities and related actions occurring in the past year. It is important to note that this list is non-comprehensive and that there may be other activities planned or underway that are not included in this update.
UP-TO-DATE LABOUR MARKET INFORMATION There is a constant need for current labour market information to assist job seekers and others in career transition to find employment or training in our community.
ACTIONS Hire Learning Initiative: comprised of an employer survey and quarterly vacancy report this initiative focuses on providing real time local labour market information for the community.
2013 -2014
Hire Learning Survey: an annual employer skills survey was launched with over 160 responses from employers across all sectors and sizes. Highlights and key findings from the survey were published in a userfriendly format. Help Wanted in Hamilton: Quarterly Vacancy Reports for Hamilton provides a snapshot of ongoing labour market demand. Four bulletins were released to the community. Also available is a roll up of the findings of both the vacancy and Hire Learning Survey results for 2013 – 14. This initiative continues in 2014-15 Discovering Career Success through Sales and Service: provides a labour market profile and highlights the potential pathways opportunities in sales and sector occupations, the largest employment sector in Hamilton. Included outreach to YWCA Hamilton’s SISTER program participants. Understanding Labour Market Information Needs in Hamilton: focus groups with service providers and job seeking clients to better understand as foundation to understand the LMI needs of these audiences. Labour Market Information for Literacy and Basic Skills: working with the Adult Basic Education Association, a handbook was developed for literacy service providers on how to use labour market information to guide literacy clients towards employment goals and training provided.
YOUTH ATTRACTION, RETENTION AND INTEGRATION
2 01 3 -2 014
To meet future skills requirements and fuel our local labour force Hamilton needs to attract and retain skilled youth.
24
ACTIONS Youth Engagement Plan: The Youth Employment Network is working to develop a communication and outreach strategy for youth in Hamilton. Through research, consultations with youth and peer-to-peer network development, a better understanding of the strategies that engage youth. Specifically the strategy will inform development of a youth employment portal.
Workforce Planning Hamilton | 2014 Labour Market Plan
SKILLS ALIGNMENT Skills requirements are evolving and increasing skills requirements across many sectors. Hamilton’s unemployment rate continues to decline which means that our local labour market is tightening. At the same time we note that our participation rate is also lower than the provincial average.
ACTIONS
201 3 -2 01 4
Experienced Workers Project: developed a profile of the experienced worker and their related job search issues through a series of twenty interviews with workers who are finding it a challenge to gain employment. Hosted a forum for front line workers with over 30 participants. It featured a key note presenter that provided tips and strategies to work with this group. Recommendations from the report are pending further action. Employment and Training Community Services Mapping: Using the WIN Hamilton website and the special client data received from MTCU plus information on OW clients developed a 'map' of employment, training and literacy services in Hamilton. The final report provided the service provider community with in-depth information about service alignment in Hamilton. Further work is underway to develop a broad-based communication strategy for the employment and training community. Labour Market Action Plan for the Neighbourhoods: Working with the City of Hamilton’s Neighbourhood Action Strategy and Mohawk College, explored the specific employment needs of unemployed residents as well as examining the employment available through neighbourhood-based employers in three areas: Keith, Jamesville and Beasley. Recommendations for a learning model with specialized services and actions to address the unique neighbourhood need was identified. Funding for Phase II, to further develop the model was applied for. Connect to Careers Job Fair 2014: Working with McMaster University, Mohawk College and Redeemer University College, hosted a community job fair for post-secondary students and community jobseekers. In total there were approximately 4000 attendees with over 140 employers participating.
IMMIGRANT SKILLS INTEGRATION Working in partnership with Hamilton Immigration Partnership Council (HIPC) Employment Working Group to align priorities and action to increase opportunities for immigrants to work at a skill level commensurate with their education and experience.
2013 -2 01 4
ACTIONS Hamilton Immigrant Mentoring Partnership: Hosted by WPH the HIMP program brings together experienced professionals with internationally trained professionals (ITPs) with a common background to support the ITPs access to employment through enhanced knowledge of workplace culture, job search practices and sector-specific networks. To date the program has supported 53 mentoring matches with approximately 22% of mentees having already secured employment. This program continues in 2014-15. Hiring Immigrants Project: 300+ employers provided feedback through a telephone survey on their experience and attitudes towards hiring immigrants. A series of ten recommendations included in the final report are being explored with further action pending. Together We are Better: A key finding of the Hiring Immigrants Project is that employers are concerned about immigrants’ communication skills. This half-day forum follows up on this and brings together language trainers and employment service providers for an opportunity to learn about each other’s roles and discuss ways to help newcomer clients obtain and maintain employment.
Workforce Planning Hamilton | 2014 Labour Market Plan
25
This action plan update brings to a close our 2010 – 2014 priorities. Over that time period there have been over 25 actions recorded as completed in our annual plan updates with strong results for the local labour market. WPH thanks all community partners for their collective work on these priorities. In the next few pages you will see an updated set of priorities and actions based on new evidence from community data and consultations. As a community we have determined that some priorities will continue. The 2010-14 priority around Skills Alignment continues in the 2014 - 17 plan as Understanding Increasing and Evolving Skills Requirements. The 2010-14 priorities around youth and immigrants are now reflected in a broader priority called Designated Groups Engagement with the Labour Market. Also the 2010-14 priority around accessible labour market information will be covered by Exploring Opportunities in Hamilton’s Diversifying Economy. WPH welcomes the opportunity for new partnerships presented in the priorities and actions in years ahead.
25
actions recorded as completed in our annual plan updates with strong results
26
Workforce Planning Hamilton | 2014 Labour Market Plan
Priorities and Actions for 2014-17 Community Consultation Overview WPH brought together 24 key stakeholder organizations to identify projects and partners for workforce-related opportunities over the next several years. The session began with a presentation on trends, challenges and opportunities in workforce development for Hamilton. Nine key headlines derived using evidence from the employer consultations, employment and training consultation and other resources were shared.9 The group felt the nine headlines were comprehensive of the major labour market priorities and chose not to add any. The group then agreed on four key priorities on which to focus. Over 50 potential actions for these priorities were brainstormed and divided into short and long term initiatives. These initiatives will next move forward at a partnership engagement event in early November 2014. The following is a documentation of the four key priorities and proposed partnerships. Outcomes are presented for short-term actions, while outcomes for the mid-term and long-term actions will be further developed in future labour market plan updates.
50
over potential actions for these priorities were brainstormed
9
See Appendix A for the nine headlines and supporting evidence that was presented to the consultation group.
Workforce Planning Hamilton | 2014 Labour Market Plan
27
PRIORITY: SOFT SKILLS DEVELOPMENT Identified need in building fundamental soft skills for new labour market entrants and those with barriers to employment. Soft skills (e.g. communication, time management, positive attitude) refer to personal qualities, habits attitudes and social graces that make a worker a good employee and compatible with an organization’s workplace culture. In particular, employers and the employment and training community identified the difficulty of finding job seekers with adequate soft skills amongst new labour market entrants (including youth) and those with barriers to employment. Short-Term (1-2 years) Action
Proposed Lead(s)
Proposed Partners
Outcome(s)
• Through research and looking at best practices, define soft and job foundation skills and host an event for the employment and training network to highlight key findings from the research and develop next steps
WPH
ES Providers LBS
1. Research report that identifies best practices 2. Event to share findings and develop next steps
• Explore boutique-type training currently being developed around development of soft skills
ABEA
LCP
1. Identification of best practices to incorporate into above event
Mid-Term (2-3 years) Action
Proposed Lead(s)
Proposed Partners
• Based on key findings in Phase I, resources and workshops to be developed for the promotion of soft skills self-development
ABEA/WPH
ES Providers OW LBS
Long-Term (3+ years)
28
Action
Proposed Lead(s)
Proposed Partners
• Exploring findings from research, develop long-term strategies and resources (e.g. ‘gamification’) to support on-going soft skills training
TBD
TBD
Workforce Planning Hamilton | 2014 Labour Market Plan
PRIORITY: DESIGNATED GROUPS ENGAGEMENT WITH THE LABOUR MARKET Designated groups (including youth, immigrants, persons with disabilities, visible minorities, older workers and Aboriginals) face specific and unique challenges to finding employment. Designated groups can have difficulty navigating the labour market. Many of these groups experience higher unemployment rates and lower participation rates than average. Designated groups can have multiple barriers to finding successful employment and typically need additional time and resources from service providers. Employers are not always aware of the benefits of hiring a worker from a designated group or express difficulty reaching these applicants. Short-Term (1-2 years) Action
Proposed Lead(s)
Proposed Partners
Outcome(s)
• Review mentorship/internship program offerings in the community and identify any gaps and best practices for any of the designated groups
WPH
HIMP IEC ES Providers HRIC
1. Document of best practices 2. Recommendations based on evidence found through consultations and research
• Develop and pilot employer engagement strategy for hiring skilled newcomers
HIPC Employment Working Group
Employers Job Developers Network
1. Report that outlines strategy and implementation plan including targeted sectors
• Develop a communication and outreach strategy for youth in Hamilton
YEN
Service Providers
1. Youth employment portal
Mid-Term (2-3 years) Action
Proposed Lead(s)
Proposed Partners
• Based on research findings, expand mentorship/internship opportunities to underserved designated groups
TBD
TBD
• Evaluate pilot of employer engagement strategy for newcomers and adapt for other designated groups
TBD
TBD
Long-Term (3+ years) Action
Proposed Lead(s)
Proposed Partners
• TBD based on short-term and mid-term findings
TBD
TBD
Workforce Planning Hamilton | 2014 Labour Market Plan
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PRIORITY: UNDERSTANDING INCREASING AND EVOLVING SKILLS REQUIREMENTS Technological advancement across all industries requires multi-skilled workers at all levels who are adaptable, flexible and willing to learn. Throughout the consultation process, employers mentioned the increasing skills requirements for their industry and the need for multi-skilled workers. The use of technology is increasing in many workplaces and the 2014 Hire Learning Survey found that 67% of employers expect skills requirements to increase to a moderate or significant extent over the next five years. This includes both formal academic upgrading as well as continuous learning. Short-Term (1-2 years) Action
Proposed Lead(s)
Proposed Partners
Outcome(s)
• Research ROI for employers to provide training and development for their workers and identify best practices that can be adopted at the local level
WPH
TBD
1. Marketing piece with recommendations for how to adopt training
• Develop an outreach strategy to promote training incentives and resources available for employers, such as the newly introduced Canada Ontario Jobs Grant, especially as they relate to SMEs
WPH
Chambers of Commerce ES Providers Job Developers Network
1. See above
Mid-Term (2-3 years) Action
Proposed Lead(s)
Proposed Partners
• Bring education and employment partners together to consider a local strategy for developing a coordinated approach to better connect people to future labour markets (e.g. through skills development, career exploration, training, etc)
Skills Development Flagship
IEC School Boards Other partners TBD
• Host a forum to increase awareness in the employer community of the benefits of investing in training and development (as established through research findings)
WPH
Chambers of Commerce
Long-Term (3+ years)
30
Action
Proposed Lead(s)
Proposed Partners
• Address training gap for those jobseekers who do not qualify for government funded training programs
TBD
TBD
Workforce Planning Hamilton | 2014 Labour Market Plan
PRIORITY: EXPLORING OPPORTUNITIES IN HAMILTON’S DIVERSIFYING ECONOMY Broaden job seekers’ awareness of the growth of opportunities of SMEs and different work environments (including part-time, contract and shift- work) through labour market information and other resources. Hamilton’s economy, once dominated by the manufacturing industry, has diversified. Hamilton is dominated by small and medium businesses, with 98% having fewer than 100 employees. During consultations, SMEs noted the difficulty of recruiting qualified applicants as they do not have the same company profile as larger employers. SMEs offer a wide range of opportunities and different work environments that allow workers to develop their skills and experience. Short-Term (1-2 years) Action
Proposed Lead(s)
Proposed Partners
Outcome(s)
• Develop sector-based marketing strategies for small businesses and lesser-known companies to help make the connection to qualified job seekers
WPH
Economic Development Job Developers ES Providers
1. Marketing piece with recommendations for how to adopt training
• Increase worker awareness of employment standards for precarious work environments (including part-time and/or contract work) to enhance labour force participation
SPRC
WPH Hamilton District Labour Council Chambers of Commerce Ministry of Labour
1. Job seeker material and event(s) to promote labour standards
Mid-Term (2-3 years) Action
Proposed Lead(s)
Proposed Partners
• Develop targeted media campaigns that will raise the profile of new small businesses and their skill requirements and opportunities as well as the benefits of working in SMEs (skills, breadth and variety, etc.)
TBD
Hamilton Spectator
Long-Term (3+ years) Action
Proposed Lead(s)
Proposed Partners
• Continue to research growing sectors of the local economy and explore their skill needs and help to develop strategies to meet their need
WPH
Employers
Workforce Planning Hamilton | 2014 Labour Market Plan
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APPENDICIES Conclusion Workforce Planning Hamilton urges the community to review this plan carefully. It is critical to understand that the priorities presented here represent a response to the evidence available at the time this report was prepared. Over the next several years, there may be other priorities or issues that arise that may require urgent attention. As well, there may be other labour market issues or activities planned or undertaken by the community that should be included in this plan. Together the community completed over 25 partnership projects and developments throughout the last labour market cycle and we can continue to build upon this momentum to advance these new priorities. In November 2014, WPH will bring together community stakeholders for a partnership development event to formalize the proposed partnerships and establish next steps to ensure Hamilton’s workforce remains skilled and competitive in the current and future labour market. At all times, WPH welcomes your feedback on this plan and other labour market issues and concerns. Please visit our website www.workforceplanninghamilton.ca and sign up for our regular newsletter as we track ongoing progress and labour market developments.
Works Cited Hamilton Economic Development. Welcome to Hamilton. www.investinhamilton.ca Accessed August 2014. Marr, Lisa. Hamilton’s building boom continues in 2013. The Hamilton Spectator. January 7, 2014. Munro, Daniel and Stuckey, James. The Need to Make Skills Work: The Cost of Ontario’s Skills Gap. The Conference Board of Canada. June 2013. Workforce Planning Hamilton. Are Hamiltonians giving up the job search? The Reality Behind the Numbers. May 2014. Zmitrowicz, Konrad and Khan, Mikael. Beyond the Unemployment Rate: Assessing Canadian and US Labour Markets since the Great Recession. Bank of Canada. 2014.
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Workforce Planning Hamilton | 2014 Labour Market Plan
Appendix A – Headlines and Evidence Presented at Community Consultation Hamilton’s Labour Market at a Glance - 2013 (CMA)
Evidence
A. Soft and job foundation skills are missing in applicants (especially among youth and for entry-level positions)
Employer Consultation (n=63)
E&T Agency Consult (n=11)
• 62% of employers interviewed mentioned at least one specific soft skill as being a key skill they look for in a new hire
• 91% of agencies indicated youth present challenges with developing soft skills
• Soft skills (e.g. communication, • Of those, 56% indicated time management, positive that at least one soft skill attitude) refer to personal is difficult to find qualities, habits, attitudes and social graces that make • 16% of all employers someone a good employee interviewed specifically and compatible with the mentioned youth lacking organization’s workplace culture soft skills B. Increasing and evolving skills requirements • Established as a priority during the last labour market plan cycle, employers continue to need multi-skilled workers who take on new responsibilities
• 75% said new technology was increasing skill requirements, even for non-traditional occupations (e.g. scheduling and time sheets now all done online)
• This includes formal academic • 16% of employers upgrading as well as continuous mentioned that older learning workers can have trouble adapting to or are less comfortable with new technology
C. Recruitment and retention is challenging for jobs that are typically shift-work or part-time • Precarious work, including parttime and temporary workers, is becoming more prevalent across the country • These jobs may be entry-level and/or low-paying, which makes it difficult for employers to find and retain these employees D. Youth Engagement with the Labour Market Youth attraction, retention and integration one of last cycle’s priorities
• 42% said retention overall is an issue or is an issue depending on the occupation o
Most common reason was due to pursuing fulltime or advancement opportunities elsewhere
• A few agencies noted the difficulty of teaching common sense and good work ethic to all ages and designated groups
• 19% increase in the number of LBS learners 2013-14 compared to year previous • Stigma attached to LBS continues to make promotion for academic upgrading difficult for clients who are in immediate need of employment and do not feel they need to increase their skills
Other Support (not exhaustive) • From the HLS (n=123): o
60% have some or high difficulty finding thinking skills in employees
o
54% have some or high difficulty finding oral communication
• Proportion of employment in occupations typically requiring postsecondary education increased ~4% from 2006-2011 (Census/ NHS) • 93% of employers from HLS expect skills requirements to increase over next 5 years o
In particular: technology, strategic and critical thinking
• 65% of HLS respondents say they have a high requirement for continuous learning • 82% of agencies indicated they were concerned with the precarity of the jobs clients must take as survival work
• 44% specifically • Youth ranked highly as mentioned youth workers a priority – challenging in some capacity – whether to engage youth and that be due to lack of help them find their applicants, retention or path work issues, ambition
Workforce Planning Hamilton | 2014 Labour Market Plan
• ‘It’s More than Poverty’ report released by PEPSO in 2013 found that half of GTA and Hamilton workers are in precarious jobs
• High unemployment rates and low participation rates for youth
33
E. Lack of awareness of E&T community services among employers and upholding service standards • If employers have one bad experience with an employment or training service agency they will not return
• 25% of employers are unsure of how the E&T could help them with workforce challenges • Few mentioned a negative experience with E&T agency but once a negative experience happens, they will not return • Approximately half of employers that employ skilled trades indicated finding qualified skilled tradespersons are the most difficult occupations to find for their organization
F. Recruitment for skilled trades (construction, motive power, and industrial) difficult due to lack of qualified applicants • There are 4 categories of skilled trade occupations: construction, motive power, industrial and service • To work in a compulsory certification trade, a person must either hold a recognized trade certificate or be a registered apprentice
• Some of the smaller employers noted the difficulty of recruitment due to their anonymity and candidates not knowing what position entails
G. Broaden awareness of opportunities outside of traditional well-known occupations and/or large employers – have job seekers increase career research
• Increased marketing initiatives contribute to the 37% increase in number of EO clients o
No data on how many employers were reached through marketing
• Agencies identified missed opportunities of promoting trades including: promoting apprenticeship more during high schools, presentations directly to LBS learners, engaging more employers to embrace apprenticeship, and making the Ontario College of Trades changes more clear to staff and clients.
• Trades, transport and equipment operators and related occupations (includes more than just skilled trades) is the third highest employment group in Hamilton CMA in 2013 (LFS)
• Not mentioned during consult
• 98% of businesses with employees in Hamilton have under 100 workers (June 2014 CBP)
I. Designated Groups Overlooked by Employers • Designated groups include newcomers, visible minorities, persons with disabilities and Aboriginal group
• 14% mentioned language issues with immigrants/ newcomers (without being explicitly asked about this group)
• Part of designated groups that can be difficult to serve
• Very few employers mentioned any designated groups while the few that did were in regard to difficulty reaching these groups for recruitment
• Designated groups difficult to serve ranked the highest priority from E&T agency consult
• Employers ‘don’t know what they don’t know’
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• Older than average workforce in many of the trades (NHS)
• Company profile/name recognition number one factor that makes recruitment less challenging (HLS)
• Many types of jobs may not be well-known to the public if they have not had previous exposure to them
• Despite high education levels, immigrants are more likely to be unemployed or underemployed compared to their Canadian counterparts
• HLS found that skilled trades was one of the top occupational groups that would be in demand over the next year
• 63% of employers that find recruitment a very challenging issue employ under 100 workers (HLS)
• Majority of employers in Hamilton are small businesses
H. Immigrants and Newcomers – upgrading oral and written communication
• 36% of HLS respondents had used an employment services agency for recruitment (however not a random sample)
o
o
Can require more time and resources to help prepare client for the workforce
Can require more time and resources to help prepare client for work
Workforce Planning Hamilton | 2014 Labour Market Plan
• HIP report found that by far the number one concern about hiring immigrants was communication/ language issues (79%)
• Importance of wraparound external support services for designated groups apparent through Hamilton’s Employment and Training Network report from January 2014
Appendix B – Advisory Team Members Angela Eckart, Employment Hamilton Kerry Lubrick, City of Hamilton Community and Emergency Services Leah Morris, Adult Basic Education Association Linda Button, Hamilton Immigrant Partnership Council Margaret Thomson, Mohawk College Norm Schleehahn, City of Hamilton Economic Development
Workforce Planning Hamilton | 2014 Labour Market Plan
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Appendix C – Employer Consultations Distributions by Industry and Employee Size Range Industry
Percentage of Interviews (n=63)
Percentage of Hire Learning Respondents (n=166)
Agriculture
2%
0%
Construction and Utilities
10%
5%
Manufacturing
18%
10%
Trade
5%
5%
Transportation and Warehousing
5%
5%
Information, Culture, Recreation
2%
10%
Finance, Insurance, Real Estate and Leasing
6%
9%
Professional, scientific and technical services
6%
9%
Business, building, other support services
10%
5%
Educational services
6%
7%
Health care and social assistance
16%
21%
Accommodation and food services
5%
2%
Other Services
8%
12%
Public administration
2%
1%
*may not add to 100% due to rounding
Employee Size Range
Percentage of Interviews (n=63)
Owner-operated
N/A
4%
1-4
3%
13%
5-9
5%
13%
10-19
24%
15%
20-49
19.%
11%
50-99
19.%
9%
100-199
13%
11%
200-499
8%
13%
500+
3%
11%
N/A (industry perspective only)
6%
N/A
*may not add to 100% due to rounding
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Percentage of Hire Learning Respondents (n=166)
Workforce Planning Hamilton | 2014 Labour Market Plan
Appendix D – Employment and Training Agencies Consulted for Analysis of EO and OW client Data Adult Basic Education Association City of Hamilton Community and Emergency Services Collège Boréal Employment Hamilton Goodwill Hamilton Regional Indian Centre Mohawk College Community Employment Services PATH Employment Services vpi Inc Wesley Urban Ministries YMCA Careerworx
Workforce Planning Hamilton | 2014 Labour Market Plan
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Appendix E – List of Participating Organizations in Community Consultation 1.
Adult Basic Education Association
2.
City of Hamilton, Economic Development
3.
City of Hamilton, Employment and Income Support
4.
City of Hamilton, Employment Services
5.
City of Hamilton, Global Hamilton
6.
City of Hamilton, Neighbourhood Development Strategy
7.
College Boreal
8.
Employment Hamilton
9.
Flamborough Chamber of Commerce
10. Hamilton & District Labour Council 11. Hamilton Chamber of Commerce 12. Hamilton Immigration Partnership Council 13. HWDSB 14. McMaster University 15. Mohawk College 16. Mohawk College Enterprise 17. Mohawk College, Community Employment Services 18. Ministry of Training, Colleges and Universities 19. Niagara Peninsula Aboriginal Area Management Board 20. Service Canada 21. Social Planning and Research Council of Hamilton 22. vpi Inc. 23. Wesley Employment Services 24. YMCA of Hamilton/Burlington/Brantford
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Workforce Planning Hamilton | 2014 Labour Market Plan