Summary Report The 2014 Labour Market Plan is the result of an extensive evidencebased 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.
2014
Labour Market Plan A Multi-Year Plan for Labour Market Development in Hamilton
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 Hamilton’s Labour Market at a Glance - 2013 (CMA) employment and training network could best Employment 377,100 (Increase of 0.8% since 2009) address over the next several years. These themes have become Hamilton’s labour Unemployment Rate 6.4% (Down 2% from height of recession in 2009) market priorities. Actions and partnerships to Participation Rate 63.8% (Down 3.8% since 2009) address each priority are already underway.
Source: Statistics Canada, Labour Force Survey
Hamilton’s Current Labour Market Conditions Understanding Hamilton’s current labour market conditions is essential to the evidence-based labour market planning process. A brief overview of Hamilton’s current labour market conditions is presented here.
• Employment in Hamilton has increased 1.1% since 2008
500 450 400 350
8.4% 6.1%
10.0% 7.6%
6.5%
6.4%
6.4%
8.0% 6.0%
24.4
34.1
30.7
25.9
26.7
25.7
4.0%
373.1
374.1
371.8
379.4
381.2
377.1
2.0% 0.0%
300 2008
2009
Employment
2010
2011
2012
Unemployment
2013
Unemployment Rate
Employment and Unemployment Levels (in 000s)
Labour Force showing Employment Levels, Unemployment Levels and Unemployment Rates, Hamilton CMA, Annual Average, 2008-2013 (Labour Force Survey)
Unemployment rate
• The unemployment rate has decreased since the height of the recession and has steadied over the past two years
What industries drive employment in Hamilton? (Labour Force Survey) Employment 2013
% of Total Employment
% Change 2008-2013
1. Trade
57,500
15.2%
2.5%
2. Health care and social assistance
50,100
13.3%
5.0%
3. Manufacturing
47,500
12.6%
-11.4%
4. Educational services
31,400
8.3%
2.6%
5. Professional, scientific, technical services
29,600
7.9%
34.5%
Approximately
6. Construction
28,900
7.7%
6.3%
7. Finance, insurance, real estate and leasing
26,500
7.0%
9.5%
25%
8. Accommodation and food services
25,300
6.7%
13.5%
9. Business, building, other support services
16,200
4.3%
-9%
10. Transportation and warehousing
15,700
4.2%
-7.1%
ALL INDUSTRIES
377,100
Industry
1.1%
Trade also had the highest number of job postings during the April 2013 – March 2014 fiscal year
of Hamilton’s online job postings were in the retail and wholesale trade industry (Source: Vicinity Jobs Inc).
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.
For detailed profiles of each of the top industries, including top subsectors, business distribution and workforce characteristics visit Workforce Planning Hamilton’s website.
Skills Protect Employment: Employment Change by Skill Level, Hamilton, 2001-2011, 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 occupation-specific training typically required)
-2.8%
D (on-the-job training typically provided)
1.4%
30,635 54% 86% 98%
HAMILTON BUSINESS FAST FACTS
Number of businesses in Hamilton as of June 2014 Percentage of businesses in Hamilton that are owner-operated Percentage of businesses with fewer than 20 employees Percentage of businesses with fewer than 100 employees
Results from the 2014 Hire Learning Survey found that 67% of Hamilton 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. Higher skilled occupations saw lower unemployment rates and higher employment rates during the recent economic downturn in Hamilton (2011 NHS).
Hamilton is dominated by small businesses.
9
Headlines from Employer and Employment and Training Agency Consultations Building upon the Hire Learning Survey results, Workforce Planning Hamilton interviewed 63 employers across all industries to delve into what the demand-driven labour market priorities in Hamilton are. A separate consultation with employment and training community agencies about client needs and priorities was also conducted. Combining the results from both consultations, the following nine headlines emerged.
A. Soft and job foundation skills are missing in applicants (especially among youth and for entry-level positions). B. Skills requirements are increasing and evolving as employers identified the need for multi-skilled workers. C. Recruitment and retention is challenging for jobs that are typically shift-work or part-time. D. Youth continue to experience unique challenges in accessing the labour market. E. There is a lack of awareness of E&T community services among employers. F. Recruitment for skilled trades (construction, motive
power, and industrial) is difficult due to lack of qualified applicants. G. Broaden awareness of opportunities outside of traditional well-known occupations and/or large employers – have job seekers increase career research. H. Immigrants and newcomers – employers emphasized the need for improved communication skills. I. Designated groups (including youth, immigrants, persons with disabilities, visible minorities and Aboriginals) face specific and unique challenges to finding employment.
Hamilton’s labour market priorities were chosen by the community based on these headlines. More information about these headlines and the consultation process is available in the full version of the Labour Market Plan.
ACTION UPDATE 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
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.
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.
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.
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
For the full version of the plan, visit Workforce Planning Hamilton’s website.
www.workforceplanninghamilton.ca