From neighbourhood rinks to packed NHL arenas, Canadians have long been among the most skilled players in the world – from Connor McDavid, Marie-Philip Poulin and Sidney Crosby to Guy Lafleur and Bobby Orr.
But off the rink, how well do Canadians fare when it comes to the skills needed in an increasingly complex world of work?
Not bad, according to the Organization for Economic Cooperation and Development (OECD).
In its 2023 decennial study of adult skills across 31 countries and economies, Canadians showcased strengths. The question is, in the arena of work, are we putting on a superstar performance? And if not, why not?
Canadians score above average in key skills
The Survey of Adult Skills examines critical skill sets in literacy, numeracy, problem solving and social-emotional skills. Skills matter because, as a recent report prepared by the Conference Board of Canada for the Future Skills Centre highlights, poor matches between supply and demand in the Canadian labour market may account for as much as seven per cent of the productivity gap between Canada and the U.S.
That said, the overall picture is far from gloomy for the Canadian labour market – arguably better than a decade ago. Canadians rank inside or around the top 10 in all three skills domains:
- Numeracy rates are up across most OECD countries, with Canada seeing a larger increase (+6.7 points) than most. Whereas Canada performed at the average in 2012, we performed considerably better in numeracy this time around.
- Literacy rates are down across nearly all OECD countries, but the decline in Canada is smaller than most (-0.5). All 10 Canadian provinces are above average in literacy.
- Canadians are strong performers in adaptive problem-solving, a higher-order skill set increasingly important in today’s fast-paced global labour market.
Worth noting, immigrant literacy skills have remained stable since 2012 despite Canada experiencing the sixth-largest increase in immigration population share among the countries surveyed. The literacy gap with Canadian-born participants is narrowing, and immigrant numeracy proficiency is improving – outpacing gains of Canadian-born adults.
Strong performance across these foundational information processing skills is crucial for navigating a world where the integration of new technology, including artificial intelligence, is rapidly increasing in the workplace.
Research analyzing job posting data shows the demand for artificial intelligence skills is growing as employers increasingly seek a hybrid of digital and non-digital skillsets, such as problem-solving, communications and leadership.
Room for improvement
Despite some good grades, not everything is rosy when it comes to Canadians’ workplace skills.
While the gap between high and low performers was shown to be smaller and more consistent than in many OECD countries, Canada still faces challenges in skills performance and achieving equitable outcomes. High proficiency in literacy, numeracy and adaptive problem-solving (levels 4 and 5) — keys to strong economic and social outcomes such as higher wages, better health and increased labour market participation — remains too low and stagnant over time.
Furthermore, the proportion of people performing at the lowest levels in these three critical areas also remains higher than desired: the one in five whose skills are below Level 2 in the OECD survey are individuals who are among the most vulnerable to disruption, job loss and automation.
This is significant. As TD Economics notes, a one-level increase in literacy proficiency boosts labour market participation by 20 per cent, employment likelihood by 10 per cent, and hourly wages by eight per cent.
What these numbers point to is the need for robust upskilling and reskilling policies to prepare all Canadians for the future of work.
For better social equity, invest in adult education and close the digital divide
Canada also lags in one more category that warrants attention: mismatching of skills and overqualification.
These trends fuel skill imbalances and higher job vacancy rates. Over time, they are projected to cost the economy over $11 billion in lost gross GDP by 2040.
Survey data show that overqualification costs Canadians about 12 per cent in wages, matching the OECD average. An estimated 28 per cent of Canadians between 25 and 65 are overqualified and just over one third are over- skilled for their jobs, both of which are above the OECD average.
Ensuring Canadians have the right skills to succeed
Improving skills recognition, lifelong training opportunities and career guidance are key levers to counter these imbalances and should be the shared goals of policymakers, employers, and workers.
The last survey results suggest the Canadian workforce boasts strong median skills. And, while we have demonstrably made strides in the last decade, policymakers must ensure equitable access to skills development to build on our progress and stay competitive.
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