Labour & Employment Policy
BC’s changing demographics and shifting employment opportunities present key challenges for employers, such as how to find enough skilled workers, how to adjust to a more diverse and aging workforce and how to comply with workplace regulations. The Council encourages rigorous analysis and proactive policies to address labour issues in advance of marketplace challenges. The Council also promotes effective relationships between employers and employees by providing information to its members on important labour issues and advising government on policies that affect the workplace.
Trends in Unionization...in Canada and the Wider World
In many industrial countries the union movement is struggling to adapt to the accelerating pace of economic and technological change and related shifts in business practices, the structure of employment, and demographics. As jobs have migrated from manufacturing, resources and other goods-producing industries toward services, “union density” – the share of the workforce that belongs to a union – has been under downward pressure
Q1 Net Inflow of People to BC from Other Provinces the Strongest in Two Decades
BC’s comparatively healthy economic performance and attractive climate are luring people from other parts of Canada at a rate not seen in many years.
Migration has well established seasonal patterns, so to compare the movement of people over time the data can be seasonally adjusted or one can simply compare first quarter data to first quarter results from prior years. For simplicity, the graphs and analysis below adopt the latter approach and examine Q1 migration flows to BC for the years 1988 through 2015.
Economic Growth and Tighter Labour Markets in BC: Some Implications of the Demographic Shift Ahead
Most people are aware that the population in Canada and other western countries is aging, that longevity is increasing, and that the front‐end of the large baby boom generation has started to retire. Fertility rates have also fallen, which means the future supply of workers will be restricted. But how quickly will the population grow, and age, in the coming decades? Will there be a dramatic shortfall of working‐age people?
This issue of Policy Perspectives briefly reviews current population projections for BC, shining a spotlight on a few key demographic variables. The findings underscore the steady aging of the provincial as well as the national population. It is also clear that immigration plays a significant role in the changing demographic landscape – within a decade, it will be the only source of population growth for both Canada and BC. Immigration can also help temper the pace – but not reverse the reality of – population aging.
Finlayson Op-Ed: Workers’ bargaining power to rise as labour shortages proliferate (Business in Vancouver)
The critical role of skills in a modern economy and the fact that many employers continue to report difficulties in finding qualified personnel raise questions about the future supply of workers. A number of business leaders have voiced alarm about current and/or potential labour shortfalls. Some worry that the overall economy could be de-railed by widespread shortages of workers.
In thinking about this topic, it is useful to begin by considering the larger economic picture and the lessons from past experience. Concerns about labour shortages are not new, tending to wax and wane with the state of the economy. Temporary labour supply-demand imbalances in particular occupations, regions, or industries are not uncommon. But as an empirical matter, serious and persistent shortages of workers have been rare in Canada. The reason is that the emergence of imbalances in parts of the labour market typically leads to institutional, behavioral and policy responses that, over time, serve to eliminate or mitigate the effects of shortfalls in the supply of workers.
Resolving Strikes in Essential Services – The Supreme Court of Canada Weighs In
This edition of Human Capital Law and Policy was guest authored by Delayne Sartison, Q.C., Partner, Roper Greyell.
Small Jump in BC’s Minimum Wage Makes Sense
The province has decided to hike the statutory minimum wage to $10.45/hour, effective September 1, 2015. This amounts to an increase of 20 cents/hour from today’s level. Going forward, the government proposes to adjust the minimum wage based on inflation, as measured by changes in the all-items Consumer Price Index – an approach which the Business Council of BC has previously recommended. Assuming that inflation averages around 2% per annum, BC’s minimum wage can be expected to climb by a little over 20 cents per year. Within five years, the minimum wage would be roughly $12/hour.
Statement: Business Council supports new minimum wage policy
“The Business Council supports the government’s decision today to implement a modest increase of the statutory minimum wage of $0.20 to $10.45 and to index future increases to the consumer price index as the Council has previously advocated,” said Jock Finlayson, Executive Vice President and Chief Policy Officer, Business Council of British Columbia.
“This brings British Columbia’s minimum wage policy in line with most other jurisdictions in Canada and provides a fair and predictable approach to future increases that businesses can plan around.
Will Future Labour Shortages Imperil the BC Economy?
The critical role of human capital in today’s economy, the fact that many employers continue to report difficulties finding qualified personnel, and demographic forecasts pointing to a steadily aging population and slower labour force growth all raise questions about the future supply of skills.
Critical Success Factors and Talent Risks for BC
The September issue of this newsletter reviewed the international, labour market and public policy contexts for talent mobility and development and briefly identified key success factors and risks for British Columbia in achieving its workforce development goals. In this month’s issue, we explore each of these areas and offer suggestions for ensuring an adequate labour supply and successful workforce development in BC.
'Talentism,' Mobility and Migration: Implications for BC's Labour Market
This edition of Human Capital Law and Policy was guest authored by Kerry Jothen, CEO of Human Capital Strategies.
Finlayson: The growing role of women in the workforce (Troy Media)
The growing role of women in the workforce arguably qualifies as the most consequential socio-economic development of the past fifty years. As more women have entered the formal labour market, the productive capacity of our economy has been augmented. Indeed, increased “labour input” – more people working – has been the principal factor pushing up gross domestic product (GDP) and household incomes in Canada. And women account for a large majority of this increase in “labour input.” A study done last year by the economics team at RBC estimated that the rise in female labour force participation since the early 1980s has boosted Canada’s GDP by more than $130 billion.
Job Market Improving…But Employment Growth in BC Remains Soft
July’s revised labour force report from Statistics Canada shows that employment growth remains sub-par in the province. The total number of people working did not change in July. But this sideways result follows an increase of 6,700 jobs the previous month. The past two months have seen a decent gain in the aggregate number of people working in the province and extends the modest positive trend that has been in place for seven or eight months.
Debate Over the Minimum Wage Heats Up
Proposals to increase the minimum wage have been gathering speed on both sides of the Canada-U.S. border. In January, President Obama called on Congress to lift the federal minimum wage from $7.25 to $10.10 an hour, an idea quickly rejected by Republican Party leaders. But America’s national government doesn’t hold a monopoly on labour standards in that country; state and local governments also play a role. Since 2011, more than a dozen U.S. states and several cities have increased the minimum wages in their jurisdictions. Earlier this year, Seattle adopted a $15.00 an hour minimum wage, the highest among all big American cities.
Interprovincial migration is again adding to BC's population
In the first quarter of 2014, BC saw 1,300 more people move into the province from other parts of Canada than leave to settle in other provinces. This marks the first time in nearly three years that BC has experienced positive net in-migration from other provinces. The shift from a net loss to a net gain is a positive sign because changes in interprovincial migration are driven largely by working-aged people. A net inflow means there will be more workers available in the BC labour market and also suggests job opportunities are becoming more plentiful – relative to other provinces and in particular Alberta – than was the case over the past couple of years.
Overqualified Workers and the BC Government’s “Skills for Jobs Blueprint”
Late last month the provincial government provided some details on its planned re-engineering of the public post-secondary education (PSE) and training system, which will see additional funding directed to expand capacity to educate/train young people in high-demand occupations – and, presumably, result in fewer dollars being available to fund programs in other parts of the PSE system. One of the key factors behind the revamp is a belief among policy-makers that the “supply” of and “demand” for skills are out of alignment in the current labour market.
Alberta’s Demand for Workers is Affecting the Labour Market in BC
Within Canada there are no restrictions on labour mobility. People move freely between provinces to find employment, to retire, to attend school, or for other reasons. The past few years have seen mounting anecdotal evidence that strong demand for workers in Alberta is impacting the BC labour market by luring younger, often skilled workers from this province. Some employers in BC report they have been losing employees to our eastern neighbour. Looking ahead, this trend is likely to contribute to a tightening of the BC labour market as economic growth gradually accelerates.
Women, Work and the Economy
In Canada and British Columbia, males and females are more or less equally represented in the total population (50% to 49%), and the picture is broadly similar in the labour force (52% men and 48% women). However, females occupy a disproportionate percentage of part-time jobs, at 65%. At the same time, females now receive 60% of all post-secondary degrees, diplomas and certificates awarded by universities, colleges and technical institutes. Even so, on average women earn only ~68% of what male workers do, while having a life expectancy of 83 years – four years more than males. What does this say about the lost opportunity for the Canadian and BC economies?
Skill Shortages: Weighing Employers' Views
While academic researchers and policy analysts continue to debate the extent and implications of skill shortages, employers in Canada seem convinced that shortages exist and are an important factor constraining business expansion.
The Demand for and Supply of Skills
One of the puzzles in the contemporary Canadian labour market is the co-existence of skills shortages in some regions and occupations along with an unemployment rate hovering near 7% as well as mounting evidence of significant “under-employment” among many workers – particularly young adults. This situation suggests there are labour market imbalances, and that they appear to be growing larger over time. Many Business Council members tell us that British Columbia is experiencing mismatches in the demand for and supply of skills.
How Much Are Employees in BC Earning?
The question of what people are paid in their jobs is obviously of great importance to individual employees. It’s also relevant in a broader, macro-economic sense. Because the bulk of total household income comes from employment, it follows that the spending power of most people is strongly influenced by how much they earn from working.