Briefing on the Canada Summer Jobs program and the status of the economy in Perth—Wellington

John Nater, Member of Parliament for Perth—Wellington

Introduction

Over this past summer, I held a series of 10 roundtable meetings across my riding of Perth—Wellington. Local economic conditions and the Canada Summer Jobs Program were the bases for discussion and three major themes emerged from this very successful tour.

First, Canada Summer Jobs, administered by the Department of Employment, Workforce Development and Labour, is an important, successful, and much needed program. However, there are weaknesses, and improvements to the program are necessary.

Second, access to vital skills training in both the workforce and the education system is crucial but is currently lacking.

Third, labour shortages in smaller communities are significant due to difficulties in attracting and retaining families.

This report delves deeper into each of these topics and, based on the feedback I received from my constituents, I am putting forward several recommendations.

Before examining these trends and themes, it is important to understand the unique economic needs of Perth—Wellington.

The riding of Perth—Wellington is situated in Southwestern Ontario and has been represented in the House of Commons since 2004. The current population is 104,910 and home to 13 municipalities.[1] The four major sectors in Perth—Wellington are agriculture, manufacturing, construction and retail. As of 2011, there were 5,565 farm operators in the riding.[2] The unemployment rate for Perth—Wellington is 5.3 percent, with the City of Stratford having the highest unemployment rate at 6.9 percent and the Township of Mapleton having the lowest rate at 2.5 percent.[3] The impact of this low unemployment rate on the local economy will be discussed throughout this briefing note.

As with many regions across Canada, the workforce in Perth—Wellington is aging. Thirty one percent of the workforce in Perth County is over the age of 55, while only 20 percent of the workforce is under 25.[4] The aging workforce was a recurring concern throughout the Jobs Tour.

The following discussions centre on the Canada Summer Jobs program, skills training, labour shortages, and various economic indicators.

1.0 Canada Summer Jobs Program

In Perth—Wellington this year, 95 projects were approved for funding under the Canada Summer Jobs program with a total of 181 positions created. Both students and employers involved in Canada Summer Jobs, as well other Jobs Tour participants, highlighted the benefits of this program. The skills these summer jobs provided helped employees build their résumés and gain valuable work experience. It also provided regular employees the opportunity to take vacation time, which may not have been possible if the employer was unable to hire a summer student.

From an employer perspective, the Canada Summer Jobs program was found to be the most beneficial to small businesses. One participant stated that small businesses are usually averse to hiring new and inexperienced employees. The Canada Summer Jobs program allows employers to train and assess potential long-term employees.

A summer student hired through program funding mentioned that the “ability to network in their home town is beneficial.” There are many opportunities for youth retention through the Canada Summer Jobs program, particularly in rural Canada. The topic of youth retention in Perth—Wellington will be discussed further in section three.

Employers praised the customer service aspect of Canada Summer Jobs and expressed satisfaction with the program administrators who handled questions and concerns in an efficient and timely manner.

Despite the many positive aspects of Canada Summer Jobs, several issues of concern with the program were raised.

The most significant criticism, common across the entire riding, was the late notifications the Department provided to the applicants. University and college students must have an idea of where they will be working in the summer by mid-February. The May 9th notification date is much too late for most students. Employers were concerned that the federal government’s decision to push the deadline for employer applications to March 11, 2016, delayed the entire process.[5]

Both employers and employees also expressed concerns regarding the rigidity of the program as it relates to the allocation of hours. Students expressed their willingness to work for a 16 week period, instead of the standard 8 weeks, however the rigidity of the program guidelines meant some students had to find other part-time work or were unemployed for up to 8 weeks of the summer.

The short work periods, rigid timelines and late notifications did not provide enough time for proper workplace training. Employers were willing to train young people at their own expense, however the notification date of May 9th was too late. In addition, many non-profit agencies were already beginning their summer programs at this point and could not devote resources to training new part-time employees.

Various employers expressed confusion over the relationship between the allocation of hours and the funds provided, while others were unclear on how much they were expected to contribute to the students’ salaries from their own businesses. Several employers were also unaware they could provide additional compensation to the students out of their own budgets if they were in a position to do so.

One final criticism of the Canada Summer Jobs program was the application process itself. The inability to submit the employer application through any method other than online was a concern, and the lack of a “save option” during the online process meant once an employer began the application they had to finish it in one sitting.

Recommendations:
1) Do not push the deadline for submissions for political objectives. This hurts small businesses and non-profits participating in the program.
2) Allow more flexibility in the allocation of hours and provide the organization with the option to hire two students for 8 weeks each or one student for 16 weeks.
3) Ensure employers are aware of what percentage of student salaries they will be expected to cover and the exact amount the federal government will provide.

 

2.0 Skills Training

The second major theme to emerge from my Summer Jobs Tour was the current state of skills training in Perth—Wellington. Over 50 percent of employers in Perth County hired outside of the county due to a lack of qualified employees.[6] One of the top three reasons provided by employers was that applicants did not meet qualifications such as education level or credentials.[7] There is a significant lack of skilled labour in the riding of Perth—Wellington.

Many employers highlighted the need for basic skills which can vary based on the age cohort. For example, young people, under the age of 25, lack soft skills while older workers lack hard skills, such as computer proficiency. However, despite younger workers not having soft skills, they do possess training in hard skills. One small business owner commented that “there is a fear around liability with older workers, because they may not know current safety habits or regulations.”

The connectedness of young people to technology can be either a hazard or an opportunity depending on the job. Young employees using their personal cell phones on a factory floor is unsafe, and can result in a loss of productivity for the company. There needs to be a balance between use of new technology and productivity in all companies.

The aging workforce in the context of skills development was also a key topic discussed at the roundtables. Employers are hiring older workers to fill their immediate needs and this has provided an opportunity for some employers to create mentorship programs. A participant at the Listowel roundtable commented that many older workers are willing to learn new skills and build their skills base. Employers in Perth—Wellington are using this opportunity to mentor the younger workers they employ.

Skills training in Perth—Wellington has been hampered by excessive bureaucratic red tape. One of the primary examples brought up repeatedly during my tour was the 4:1 journeymen to apprentice regulation. While this is a provincial regulation in Ontario under the College of Trades, [8] there are examples of excessive federal government regulation in training programs.

The Canada Apprentice Loan (CAL) program is currently accessible only to Red Seal Trade apprentices. [9] It is only apprentices who enroll in full-time training courses who benefit from the CAL. Employers expressed a willingness to provide employees with the opportunity to improve their trade skills, but were not able to shoulder the full-cost of these training initiatives.
Participants in the roundtables were adamant that skills training needs to be more advanced. For example, some adult learning centres offer basic Excel training, however, increasingly, employers are looking for a more comprehensive understanding of computer programs from potential employees.

It is important to highlight that in Perth County 87 percent of employers support ongoing training. [10] However, the cost associated with these ongoing training initiatives was a major concern.

Recommendations:
1) Both the Canada Summer Jobs program and employers should be encouraged to provide flexible hours to accommodate employee training.
2) Ensure better communication between adult education providers and employers to promote computer skills training and education upgrading programs to employees.
3) Government training and loan programs should be more flexible to accommodate the changing skills training needs in Canada’s economy.
4) There should be a greater emphasis on “soft skills” in all high school career classes.

 

3.0 Labour Shortage
Finally, labour shortage in Perth-Wellington is of great concern to employers across my riding. As noted above, the unemployment rate is 5.3 percent. Over 57 percent of employers found it hard to fill jobs[11] and the primary reason given was that they simply could not find enough applicants.
Manufacturing is one of the fastest growing sectors in Perth-Wellington where 71 percent of employers indicated they planned to hire in 2016.[12] Yet 63 percent of employers in the manufacturing sector found it hard to fill various positions.[13]
There appear to be several reasons for the severe labour shortage in Perth—Wellington. The inability of rural communities to retain and attract youth is at the top of this list. Many youth graduate from high school and pursue post-secondary education in nearby urban centres, such as Kitchener-Waterloo and Toronto. Often they do not return to their home community after graduation to work. In Arthur, one participant pointed out that professionals in rural communities such as doctors and lawyers who retire need to be replaced, however this is often a challenge.

The retention of young workers is also challenging as increasing numbers of older workers choose not to retire at the traditional age of 65. In some cases older workers are unable to retire at 65 due to financial constraints leading to a lack of upward mobility in some sectors.
Perth—Wellington attracts a high proportion of people earning between $30,000 and $59,999 compared to the provincial average.[14] However, this number is significantly lower when one looks at individuals earning over $60,000.[15] These figures appear to suggest that employees are forced to leave the riding in order to secure higher paying employment elsewhere.

The issue of affordable housing in Perth—Wellington is a challenge. Since 2011, the Government of Canada has allocated $641 million to the province of Ontario under the Investment in Affordable Housing (IAH) initiative.[16] While this investment is important, it has been primarily focused on seniors and persons with disabilities. It was recommended throughout the roundtable discussions that the government examine ways to assist young families in purchasing their first home.

The growth of many rural communities in Perth—Wellington, and by extension the availability of workers, has been hampered by a lack of transportation infrastructure options and outdated wastewater and waste management facilities. Mayors and Councillors at the roundtables consistently stated that waste-water facilities are central to both economic and population growth in rural Ontario. Without these investments, there can be no new housing developments.

Transportation issues are a pressing concern for employers and municipalities in Perth—Wellington. Employers find young people, especially young men, are unable to drive due to high insurance costs. There was an attempt to implement a ride share program in the riding in order to meet some of the transportation needs, unfortunately it was not successful. Community members attributed this to the fact that the program was administered and operated out of London which is located 60 kilometers from the City of Stratford.

The labour force participation rate is falling across Canada. In 2015 the labour force participation rate fell to 65.9 percent, the lowest level in 13 years.[17] Labour shortages are reaching a critical level in some parts of Perth—Wellington and employers have exhausted all options to find employees.

Recommendations for Labour Shortage:
1) Reduce government distortions in the housing and development market, and foster a business environment which encourages growth in our rural communities.
2) The Government of Canada should expand such programs as the Home Buyers’ Plan and re-instate the First-Time Home Buyers’ Tax Credit.
3) Give rural municipalities autonomy over the planning and implementation of transportation initiatives in their towns.

 

Conclusion

As stated in the introduction, three major themes emerged from the 10 roundtable discussions held across Perth-Wellington during my Jobs Tour this summer.

First, Canada Summer Jobs is an important, successful, and much needed program. While Canada Summer Jobs has many benefits and contributes to skills development, there are weaknesses, and improvements to the program are necessary. The rigidity of allocation of hours and the inability to offer positions for the full 16 weeks are a major criticism of the program

Second, access to vital skills training in both the workforce and the education system is crucial but is currently lacking. Young people lack soft skills, while older workers lack hard skills and technological proficiency.

Third, growing labour shortages in smaller communities throughout Perth—Wellington is significant due to difficulties in attracting and retaining families and the pressing need for improved infrastructure.

Below are 10 recommendations I am putting forward.

Recommendations for Canada Summer Jobs program:
1) Do not push the deadline for submissions for political objectives. This hurts small businesses and non-profits participating in the program.
2) Allow more flexibility in the allocation of hours and provide the organization with the option to hire two students for 8 weeks each or one student for 16 weeks.
3) Ensure employers are aware of what percentage of student salaries they will be expected to cover and the exact amount the federal government will provide.

Recommendations for Skills Training:
1) Both the Canada Summer Jobs program and employers should be encouraged to provide flexible hours to accommodate employee training.
2) Ensure better communication between adult education providers and employers to promote computer skills training and education upgrading programs to employees.
3) Government training and loan programs should be more flexible to accommodate the changing skills training needs in Canada’s economy.
4) There should be a greater emphasis on “soft skills” in all high school career classes.

Recommendations for Labour Shortage:
1) Reduce government distortions in the housing and development market, and foster a business environment which encourages growth in our rural communities.
2) The Government of Canada should expand such programs as the Home Buyers’ Plan and re-instate the First-Time Home Buyers’ Tax Credit.
3) Give rural municipalities autonomy over the planning and implementation of transportation initiatives in their towns.

These recommendations are a first step in creating an environment for both community and economic growth. I look forward to working with your Departments to meet these goals and develop new ones.

 

 

 

[1] Statistics Canada. “Perth–Wellington, Ontario (Code 35083) and Canada (Code 01) (table)”. Census Profile. 2011 Census. Statistics Canada Catalogue no. 98-316-XWE. Ottawa. Released October 24, 2012.  http://www12.statcan.gc.ca/census-recensement/2011/dp-pd/prof/index.cfm?Lang=E (accessed September 22, 2016)

[2] Statistics Canada, “Census of Agriculture-3438.” 2011 Census. Ottawa.

[3] Statistics Canada, “Labour force characteristics, unadjusted, by economic region,” 2016.

[4] “Local Lens on Perth County” Four County Labour Market Planning Board, 2016.

[5] “Deadline for Canada Summer Jobs program extended to Mar. 11,” Global News, retrieved September 22, 2016 http://globalnews.ca/video/2514447/deadline-for-canada-summer-jobs-program-extended-to-mar-11

[6] Understanding the Skills Gap in Perth County-Fact Sheet, p. 9.

[7] Perth County Local Lens, “Survey Key Findings 2016,” Four County Labour Market Planning Board, 2016.

[8] http://www.collegeoftrades.ca/about/review-panels/ratioreviews

[9] “Canada Apprentice Loan,” http://www.esdc.gc.ca/en/support_apprentices/loans.page

[10] “Local Lens on Perth County,” Four County Labour Market Planning Board, 2016

[11] “Local Lens on Perth County,” Four County Labour Market Planning Board, 2016

[12] “Local Lens on Manufacturing,” Four County Labour Market Planning Board, 2016.

[13] “Local Lens on Manufacturing,” Four County Labour Market Planning Board, 2016.

[14] Mobility Report 2015

[15] Mobility Report 2015

[16] Canada Mortgage and Housing Corporation. https://www.cmhc-schl.gc.ca/en/inpr/afhoce/fuafho/iah/iah_002.cfm

[17] Sunny Freeman, “Canada’s Labour Force Participation Rate Hits 13-Year Low,” http://www.huffingtonpost.ca/2015/01/09/labour-force-participation-canada-13-year-low_n_6445066.html

Report submitted on October 6, 2016 via mail

John Nater, M.P.
Perth—Wellington