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The effects of the global recession on labour market conditions in Canada at times seems insurmountable. For many Canadians, this economic uncertainty affects every decision they make, whether it's about their career, their children’s education, their retirement, or how to find and keep a job. Governments as well are struggling to contain the economic fallout, from debilitating job losses, wage and hiring freezes and organizational restructuring. We all want it to end soon. We seek quick fixes. Yet while the Organisation for Economic Co-operation and Development (OECD) recently reported on signs of recovery, it warns that unemployment will continue to rise in 2010 and remain high.
This is the time, I believe, to re-visit a fundamental principle: the role that adult learning and workplace training play in building Canada’s human infrastructure, and, by extension, securing our economic prosperity. It is that clear.
It is not reassuring rhetoric, a platitude to be trotted out when economic times are good. Rather, as CCL indicates in its new report, adult learning and workplace training are even more critical when economies are faltering.
In short, the benefits of adult learning and training are significant. They include improved productivity, innovation and economic growth. Learning also has the potential to return substantial benefits to individuals, families and communities. Individual benefits include better wages and job satisfaction, fewer periods of unemployment and improved health and quality of life. These are benefits that accrue to Canadians in good economic times and in bad.
The OECD shares CCL’s perspective about the importance of adult learning and workplace training. In a recent economic update, they urged governments to reassess and adapt their labour markets and social policies to prevent an escalation, or a prolonging, of the current job crisis. More specifically, it calls for investment in skills development and measures to support labour demand. Failure to do so, it warns, will result in more people falling into the trap of long-term unemployment, and the depressing prospect of a “lost generation” of young people looking for work.
Many Canadians rightly point to the high quality of Canada’s formal education as a source for improvements. While it is of a high standard, formal education alone can not ensure our economic prosperity. In fact, almost half (48%) of Canadians aged 16 and over are estimated to have low levels of literacy skills, and it is projected that that proportion will remain virtually unchanged over the next two decades.
We need to develop coherent, comprehensive and effective policies that address the specific and diverse learning needs of adults, including the working poor, Aboriginal people, immigrants, those in temporary and casual employment, and low-skilled individuals. Research has shown that economic downturns can exacerbate the vulnerability of individuals most at risk.
But herein lies the critical conundrum: training expenditures are often the first to be curtailed during uncertain economic times. According to Learning and Development Outlook 2009: Learning in Tough Times, a report by the Conference Board of Canada, spending on training, learning and development continues to decline slowly. In 2008, companies in Canada spent an average of $787 per employee on training, learning and development. In real dollars, this represents a 40 percent decline over the past decade-and-a-half.
However, there are signs that the shortfall in formal training is being met partially—half of Canadian companies are now using informal learning to augment employee skills. The UK too has recognized the importance of informal learning to support the development of work-related skills and has recently implemented an informal adult learning strategy.
Uncertain economic times are points at which investments in training should be made. Education and training enable individuals to adapt to fluctuations in the labour market. We know that the individuals hardest hit during difficult economic times are those with the lowest skills and education. We also know that low levels of education and skills can negatively impact an individual’s prospects for employment and higher wages even in good times.
Seven years have passed since the OECD made recommendations to improve the effectiveness of Canada’s adult learning sector. However, as CCL’s report suggests, there is considerable room for improvement. Canada still lags significantly behind many other OECD countries in both provision and uptake of learning opportunities.
Clearly, Canada’s future prosperity depends on the strength of its learning sector, on meeting the needs of all adult Canadians—regardless of educational attainment, age, socio-economic status, or level of skills.
We cannot predict the changes that lie ahead. We can, however, respond to emerging challenges from a position of strength.
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