Understanding the Talent Gap: Lessons + Opportunities for Canada

Executive Summary

There is considerable debate among employers, policymakers, and education institutions about whether an imbalance exists between labor supply and demand. This is commonly referred to as the “skills mismatch.” Concerns about skills mismatches are intensifying as policymakers, educators, and employers are attempting to anticipate which skills will be required in a rapidly changing, technology-driven economy.

A key challenge in anticipating skill needs is the lack of a system for gathering adequate and appropriately granular labor market data. Shifts in the economic landscape and antiquated methodologies for data collection result in mechanisms that are inadequate for industry to communicate their talent needs (also known as labor market signals). In order for educators and training providers to create the most relevant training programs, they must have a clear, reliable, and real-time understanding of skill demand by employers.