In Demand Skills in the Canadian Labour Market

In Demand Skills in the Canadian Labour Market


Employer Perspectives on the Skills Needed from Graduates in Canada 

In a study conducted by Emerald Publishing, the researchers analysed 122 employer assessments of graduate students at a Canadian university who completed a work-term with the employer in either 2014 or 2015. The purpose of this study was to explore employer perceptions of graduate student employability.

The researchers discovered that employers evidently hold specific perspectives and expectations when it comes to evaluating the employability of graduate students.

The results highlighted the importance of several factors for graduate student employability from the employer's perspective.

All these three factors collectively accounted for 72.20% of the variance in employability scores. Beyond this, the researchers found a big relationship and correlation between these factors and academic achievement, work experience, and employability.

In addition to this, during the research, the researchers found that employability models for graduate students should include additional factors such as time management, teamwork, attention to detail, willingness to work, and responsiveness to feedback.

The employers also looked at the following indicators in analysing the employability of college and university graduates. 

Skill Gap

According to BambooHr, the term "skills gap" denotes the discrepancy between the skills needed for a particular job and the skills that employees currently have. Alternatively, it can be described as the difference between the skills an employer anticipates their workforce to possess and the actual skill set that employees exhibit (BambooHR, n.d.). 


The skill gaps are often caused by the lack of adequate and quality education, necessary training, retiring experts and technicians and the lack of soft skills development.

Skill gap situation in Canada


Based on data obtained from Canada Statistics and the Labour Force Survey for the period of March to May 2022, this comprehensive information provides a detailed overview of the skills gap situation in the Canadian labour market. This data reflects the influence of the COVID-19 pandemic, current labour market conditions, and the emergence of labour and skill shortages.


This information offers valuable insights into the dynamics of the Canadian labour market, shedding light on the challenges faced by employers when seeking and retaining employees with the necessary skills. It underscores the wide-ranging implications of skills gaps for both businesses and the broader economy. Additionally, the findings underscore the significance of factors such as business size, occupational composition, and industry in shaping these challenges, highlighting the need for tailored strategies and solutions. The following information was collected according to the skills mentioned in the jobs posted on Indeed in Canada.

Skills with the Highest Demand in the Canadian Labour Market

The job market is fierce and ever-evolving. Regardless of your profession, possessing specific skills can boost your prospects for well-paying jobs and career advancement. Identifying the essential skills employers seek can assist you in demonstrating them in your job applications. According to the information collected from Indeed.com, the following are the skills with the highest demand in Canada.

Skills that not only streamline business operations but also help companies attract and retain customers are currently in high demand. By acquiring and showcasing the most up-to-date competencies in customer service, sales, project management, research, or marketing, you can distinguish yourself as a sought-after talent. This, in turn, can fuel your career growth and contribute to the overall success of businesses, regardless of the prevailing economic conditions (LinkedIn, 2023).

This information was collected in a period between April and May 2022. 

These data provide valuable insights into the skills needed in the Canadian labour market, based on the challenges and expectations reported by businesses. The following is an analysis of the skills in demand:

Generally, the Canadian labour market is characterised by a demand for a diverse set of skills. Digital and STEM skills are essential in the technology-driven economy, while the trades continue to be crucial for infrastructure and manufacturing. Healthcare skills remain in high demand, and recruitment, retention, and financial management skills are vital to address the challenges posed by labour shortages and inflation concerns. Businesses and educational institutions need to align their efforts with these skill demands to meet the needs of the Canadian labour market effectively.

Skills for 2030

Skills for 2030, as defined by the OECD, encompass the capacity to effectively apply knowledge to achieve specific goals, and they play a crucial role in addressing complex challenges. These skills are broadly categorised into three types:

The development of cognitive skills, such as creativity and self-regulation, and social skills, such as taking responsibility, hinges on considering the consequences of one's actions, evaluating risks and rewards, and embracing accountability. This reflects moral and intellectual maturity.


The transfer of knowledge and skills occurs within social contexts, emphasising the interdependence of knowledge, skills, attitudes, and values. Colleagues' support and adherence to guidelines facilitate this transfer, while reinforcement plays a crucial role in ensuring the application of learned skills in new situations.


Creativity and critical thinking are highly valued in a world where technology continually reshapes the job landscape. As routine tasks become automated, the demand for non-routine cognitive and social skills has increased. Artificial intelligence (AI) has introduced new challenges, and human intelligence's sophistication depends on our ability to adapt and learn continuously.


AI's unparalleled range of applications depends on human creativity and imagination. Workers with originality and the ability to generate novel ideas are less likely to be replaced by AI. Therefore, individuals need to acquire and develop creative skills to remain competitive.


Higher-order skills, including problem-solving, critical thinking, goal-setting, and decision-making, are essential and often overlap with social and emotional skills. Critical thinking, in particular, is critical for success in the workforce and can lead to self-sufficiency and contributions to society.


Metacognition, lifelong learning, and understanding diverse cultures are vital for adapting to a changing environment. The ability to "learn to learn" is essential in a world marked by globalisation and technological advancements. Humans are well-equipped to handle uncertainty, adapt, and learn from experiences, making them valuable in situations where AI falls short. AI can perform specific tasks efficiently but often struggles in ambiguous or changing contexts.


Digital skills are increasingly important in the workplace, given the rapid evolution of technology. To remain competitive, workers must continuously acquire new digital skills, fostering flexibility and a positive attitude towards lifelong learning.


Social and emotional skills are indispensable, especially in roles requiring creativity and complex social interactions. Valuing human contributions and recognizing the worth of individuals are essential for societal well-being and institutional health. As demographics change, social and emotional skills become more critical in healthcare and education. The increasing diversity in classrooms and workplaces necessitates empathy, respect, and effective communication. Social and emotional skills enhance academic and labour market prospects, and they are integral to successful participation and performance in academic settings. Poor social and emotional skills can hinder the application of cognitive skills.


Education plays a pivotal role in promoting social and emotional skills, preparing individuals for the challenges of a globalised world. These skills, often related to cognitive skills, are collectively referred to as global competence.


Physical skills, developed through music and the arts, promote cognitive and metacognitive abilities. Engagement in arts activities improves attention and cognition, and arts education fosters empathy, persistence, and divergent thinking. Physical education and the development of fundamental motor skills benefit children's physical and mental health, cognition, and academic achievement. Longitudinal research supports the relationship between motor skills and cognitive efficiency.


Practical skills extend beyond manual dexterity and are essential for daily functioning. They include the ability to use technology, prepare food, and maintain hygiene.


In summary, the skills required for the future encompass cognitive, social, emotional, practical, and physical dimensions. They are interdependent and crucial for adapting to an ever-changing world where creativity, critical thinking, and adaptability are highly valued.

References

BambooHR. (n.d.). What is a Skills Gap? | BambooHR. Www.bamboohr.com. https://www.bamboohr.com/resources/hr-glossary/skills-gap

CTV News. (2023, January 6). Looking for a job or career change? These skills will be in high demand in 2023, experts say. CTVNews. https://www.ctvnews.ca/business/looking-for-a-job-or-career-change-these-skills-will-be-in-high-demand-in-2023-experts-say-1.6220659

Government of Canada, S. C. (2022a, June 23). Analysis on labour challenges in Canada, second quarter of 2022. Www150.Statcan.gc.ca. https://www150.statcan.gc.ca/n1/pub/11-621-m/11-621-m2022011-eng.htm

Government of Canada, S. C. (2022b, November 30). The Daily — Jobs in Canada: Navigating changing local labour markets. Www150.Statcan.gc.ca. https://www150.statcan.gc.ca/n1/daily-quotidien/221130/dq221130b-eng.htm

Indeed. (2023, February 2). Skills in Demand in Canada: Definition and Examples. Indeed.com; Indeed. https://ca.indeed.com/career-advice/finding-a-job/skills-in-demand-in-canada

LinkedIn. (2023, February 20). LinkedIn 2023 Most In-Demand Skills: Learn the skills companies need most. Www.linkedin.com. https://www.linkedin.com/business/learning/blog/top-skills-and-courses/most-in-demand-skills

Nita, C., Anna Maria, R., & Education & Training. (2018). An exploration of employer perceptions of - ProQuest. Www.proquest.com. https://www.proquest.com/docview/2534433652?accountid=12063&parentSessionId=QWmSF8RdPUfnkRD7lLV8Ao6ElnxGSu0YTH9bszbjHrw%3D&pq-origsite=summon

Statistics Canada. (2022). Determinants of skills gap in the workplace and recruitment difficulties in Canada. Www150.Statcan.gc.ca. https://www150.statcan.gc.ca/n1/pub/18-001-x/18-001-x2022002-eng.htm