The Information Technology Landscape in Canada

 

About Canada

Telecommunication
Infrastructure

Privatization and Deregulation

Internet Activity

e-Commerce

Hardware Manufacturing
Software Development

IT Usage

IT Labor Market
IT Geographics
IT Financing
Government Policies
Legal Environment
Analysis : IT Strengths/ and Weaknesses
Analysis :Impacts on the Business
Sources and Links
About the authors

IT Labor Market in Canada

POPULATION:
Population
30,724,000 (1999 estimate)
World Population Rank
35th
Population Density
8 inhabs. per sq. mile (1999 estimate)
Population Distribution
76.7% urban (1995)
Age Distribution (1998) 0-14: 20.0%
15-64: 68.0%
65+: 12.0%
Median Age
36.3 years (2000 projection)
Population Growth Rate
1.0% per year (2000-2010 projection)
Ethnic Composition
British - 40%; French - 27%; other European - 20%; indigenous Indian and Eskimo - 1.5%; other (including Asian) - 11.5%.
EDUCATION:
Illiteracy: 3% (1994). In 1995, there were 12,700 primary schools with 2,413,126 students and 2,469,552 secondary school students. In 1996/97, 961,155 students were enrolled at universities and other institutions of higher learning.
Labor Profile
Agriculture, forestry, and fishing - 4.1%; manufacturing - 14.8%; transportation and communication - 7.1%; construction - 5.6%; commerce - 16.6%; community and social services - 36.2%; other - 15.6% (1996).
Source: See "About Canada" page of this report

As mentioned in the e-commerce section of this report, a relatively small percentage of the Canadian business community view e-commerce as beneficial to their business endeavors. However, e-commerce issues notwithstanding, there are information technology (IT) issues to deal with in all areas of the country's economy, whether or not an organization's main mission is high-tech, IT, or e-commerce. Each entity must deal, to some degree, with IT-related functions and must have the required skilled workers available to perform the functions, either on their payroll or through outsourcing. As we continue in the information age, demand continues to outpace supply and the global IT skills gap continues to broaden I many areas of the world.

Canada is dealing with an IT skills gap similar to, but apparently not as wide as in the United States and other areas of the world. The rapid growth of IT apparently caught our sister country to the north off-guard as it did the US. Unexpected expotential growth in technology outpaced production of IT-trained members for the country's labor force. As pointed out by the Information Technology Association of Canada (ITAC), the gap is expected to be 50,000 positions by the year 2000. ITAC is a prime participant in resolution of the problem for Canada and has been working on the issue for the past ten years. The Association is working in concert with the Canadian government, Human Resources Development Canada, the Software Human Resource Council, the Canadian Information Processing Society, Industry Canada, and others to deal with skills gap issue. Together, these organizations are instituting programs to close the gap by providing learning opportunities for youngsters in grades K through 12, expanding college opportunities, and providing internships in the IT industry. [Information Technology Association of Canada (ITAC)]

Concern

In a recent ITAC survey, members were asked to indicate their IT staffing requirements today, one year hence, and two years hence. Their rankings are (% of responses):

Today

In one year

In two years

Project manager (73.3%)

Project manager (60.5%)

Project manager (60.5%)

Senior software engineer/developer (60.5%)

Web developer/designer (44.7%)

Technical consultant (44.7%)

Web developer/designer (47.7%)

Systems engineer (44.7%)

Help desk technician (42.1%)

Manager/lead developer (42.1%)

Technical consultant (44.7%)

Systems engineer (39.5%)

Q&A analyst/Test engineer (31.6%)

Senior software engineer/developer (42.1%)

Senior software engineer/developer (36.8%)

Product manager/Technical marketing (31.6%)

Manager/lead developer (42.1%)

Junior software engineer/developer (36.8%)

 

Help desk technician (42.1%)

 

[Information Technology Association of Canada (ITAC)]

Along with this, the Software Human Resources Council highlights a critical requirement for top people, particularly for those with IT-related doctorate degrees. In the PhD category, the need has been quantified as "zillions" with the global supply quantified as only a handful. [Gooderham, Mary, Technology At Work]

In a 1998 survey, it was reported that 60 percent of Canada's large firms have experienced project delays caused by the shortage of skilled high-tech workers and that for 43 percent of transportation, utilities, and communications companies, the gap has caused slow growth. Further, about 70 percent of companies said they were prepared to hire IT workers in the next year with telecommunications showing the highest number of IT positions available. [Hamilton, Tyler, Tech skill shortage hurts firms]

"At the provincial level, a report published by the Alberta Science Research Authority recommends the number of students graduating from technical degree programs in Alberta must double by 2010. And Economic Development Edmonton recently authored a document called Model 7/25, which calls for expanding the knowledge-based industry from 7% to 25% of the city's economy by 2010 as well."  [Editorial, Focus on Software]

Initiatives

Within the last ten years in Canada, federal and provincial governments, industry, and education communities have been dealing with the high-technology skills shortage. Immigration rules have been alterted, "grow-your-own" programs have been instituted for grades K-12, universities have expanded IT programs, and more women have been trained for IT positions. Also, the Canadian government has a program called Connecting Canadians to connect all public schools, libraries and 5,000 rural communities in Canada to the Internet.

Now, as skill shortages continue to climb and employers compete with each other for talent, the going is getting tough and the tough are getting going. Companies are demanding that, in addition to their Human Relations Department (HR), other managers and employees become more active in the recruiting, hiring, and retaining process. Some companies are acquiring other companies for dual-purposes, to grow and to add the acquired company's employees to their staff.

Companies are reacting with changes in the workplace to recruit and retain skilled workers. They are focusing on core issues to help themselves by revising hiring standards, improving training programs and productivity, and by providing flexibility in work policies and benefits. For example, Lucent Technologies Canada Inc., "…provides an option for a taxable spending account in which employees can deposit "flex dollars," a set amount based on their salary, to cover expenses including day care, elder care, mortgage payments, lawyers fees or fitness or golf club memberships."

ITAC sees industry using on-the-job training (OJT) to update skills of their current employees and more private institutes training non-IT university graduates with high-tech skills. The organization believes that companies must share the burden and hire workers with less than desired, or no practical experience. Last year, IBM of Canada hired 3,400 people and approximately 800 were recent graduates. However, students can help themselves through working in related summer jobs and internships to add appropriate experience to their resume.

The Internet can be a big asset to companies in their recruiting and hiring efforts. IBM Canada Ltd. Used "Why Work," an Internet campaign discussing the company, its mission, and the work and worth of its employees, to promote the company and attract potential student and professional new-hires. Also, many companies promote their orgnization via the Internet and hire a number of employees through that vehicle. One such company, PMC-Sierra Inc., a Vancouver-based integrated circuit maker, spends most of its recruiting budget on line, receives 85 per cent of its résumés from the Internet, and hires 25 to 30 percent of its employees from there.  [Mary Gooderham, Technology At Work]

Western Canada master's of software technology (WestMOST) degree program is an accredited program in software technology designed to provide skilled workers to the IT software sector. Applicants must have an undergraduate degree in computing science or a similar field and must complete eight courses in classes that are held primarily on weekends. Students who are employed full-time continue to work while taking classes and may require up to three years to complete their degree. The program comprises a number of university computer science programs and the technology industry in western Canada. Industry professionals help to develop course subject matter with the intention of producing graduates with skills desired in their industry. Courses develop high-level, architectural and project-planning competencies to prepare a graduate to be a chief information officer or lead architect for a suite of software products.  [Editorial, Focus on Software]

Another program is Alternate Routes to Computing (ARC) started as a two-year pilot program in January 1999 sponsored by the University of British Columbia, Simon Fraser University and IT companies such as International Business Machines Corp., Sierra Systems Consultants Inc., BCT.Telus Communications Inc., Hongkong Bank of Canada and PeopleSoft Canada Co. ARC is an intense two-year program beginning with eight months of classwork, followed by an eight month internship in one of the sponsoring companies, and then another eight months of classes. ARC 2000 will begin in January 2000 with 60 students. The average age of ARC participants is 31 (range - 22 to 51) and almost 70 per cent are women. This is an interesting statistic, since only 18 percent of computer-science undergraduates in 1997were women, compared with 28 per cent in 1981. It is particularly remarkable because women in engineering, physics, mathematics, medicine, and dentistry programs grew significantly over the same period.  [Schmidt, Sarah, Low-tech grads seek higher path]

Cuba is anxious to assist Canada in its skill shortage plight and Canada appears ready to employ Cuban high-tech workers despite the United States embargo against Cuba. This activity has support of Canadian and Cuban governments, particularly with work visas. The plan is to import Cuban workers into Canada to work in all areas of high-technology, from Web-programming to telemedicine. The workers are primarily graduates of the University of Havana, are trained in current technology, and have test scores that are above average compared to Americans and Canadians. The effort was promoted in Canada at the end of 1998, via a mobile Cubasoft Symposium sponsored by Sentai Software and Indcom Trading Co.of Canada and Cuban companies, Centersoft and Cimex Corp.  [Evans, Aaron, Editorial - General News, Cuban knowledge workers to work in Canada]

General statistics on education and the labor supply in Canada

Labour force, employment and unemployment


 

1994

1995

1996

1997

1998

 

thousands

Population 15 years and over

22,716.8

23,027.3

23,351.8

23,686.5

23,993.9

Labour force

14,832.4

14,927.6

15,145.4

15,354.0

15,631.5

Employed

13,291.7

13,505.5

13,676.2

13,940.6

14,326.4

Full time

10,798.4

10,996.8

11,087.2

11,291.3

11,642.4

Part time

2,493.3

2,508.8

2,589.0

2,649.3

2,684.0

Unemployed

1,540.7

1,422.1

1,469.2

1,413.5

1,305.1

Not in the labour force

7,884.4

8,099.7

8,206.4

8,332.5

8,362.4

Actual hours worked

455,745.5

460,024.0

468,732.4

477,766.7

486,535.9

 
 

%

Employment to population ratio

58.5

58.6

58.6

58.9

59.7

Participation rate

65.3

64.8

64.9

64.8

65.1

Unemployment rate

10.4

9.5

9.7

9.2

8.3

Source: Statistics Canada, CANSIM, Matrix 3472.

Employment by industry, population 15 years of age and over


 

1994

1995

1996

1997

1998

 

thousands

All industries

13,291.7

13,505.5

13,676.2

13,940.6

14,326.4

Goods-producing sector

3,437.6

3,518.5

3,548.1

3,628.2

3,741.5

Agriculture

410.8

413.3

431.5

403.4

418.7

Forestry, fishing, mining, oil and gas

286.7

307.0

297.1

304.7

297.1

Utilities

120.5

118.9

123.4

116.0

117.5

Construction

751.6

721.3

712.7

737.1

761.9

Manufacturing

1,867.9

1,957.9

1,983.5

2,067.0

2,146.7

Service-producing Sector

9,854.2

9,987.0

10,128.1

10,312.5

10,584.9

Trade

2,092.6

2,097.9

2,127.1

2,142.2

2,182.8

Transportation and warehousing

650.3

685.1

682.1

707.8

701.4

Finance, insurance, real estate and leasing

833.1

864.0

838.1

846.7

846.1

Professional, scientific and technical services

679.3

707.4

750.6

814.6

896.8

Management administrative and other support

375.9

399.6

429.4

451.0

491.7

Educational services

928.9

923.4

912.2

938.3

942.7

Health care and social assistance

1,381.2

1,396.2

1,403.4

1,398.4

1,465.1

Information, culture and recreation

565.9

584.3

582.0

617.3

632.4

Accommodation and food services

835.5

856.8

888.4

899.6

916.5

Other services

659.1

668.6

684.4

705.6

719.3

Public administration

852.3

803.5

830.5

791.2

790.2

Source: Statistics Canada, CANSIM, Matrix 3472

University degrees granted by field of study, by sex


 

1993

1994

1995

1996

1997

Canada

173,850

178,074

178,066

178,116

171,736

Male

75,390

76,470

76,022

75,106

72,120

Female

98,460

101,604

102,044

103,010

99,616

Engineering and applied sciences

11,795

12,597

12,863

13,068

12,613

Male

9,887

10,285

10,284

10,446

10,004

Female

1,908

2,312

2,579

2,622

2,609

Mathematics and physical sciences

9,325

9,551

9,879

9,786

9,612

Male

6,572

6,697

6,941

6,726

6,665

Female

2,753

2,854

2,938

3,060

2,947

Source: Statistics Canada, CANSIM, cross-classified table 00580602.

University degrees granted by level, Canada and the provinces


 

1993

1994

1995

1996

1997

Canada

173,850

178,074

178,066

178,116

171,736

Undergraduate1

147,246

150,879

150,803

150,282

144,525

Graduate2

26,604

27,195

27,263

27,834

27,211

1. Includes bachelor's and first professional degree, undergraduate diplomas and certificate and other undergraduate qualifications.

2. Includes master's degree, doctoral degree and graduate diploma and certificate.

Source: Statistics Canada, CANSIM cross-classified table 00580602.

 

Canadian Universities & Colleges

Acadia University
University of Alberta
Athabasca University
Augustana University College

Bishop's University
Brandon University
Brescia College
The University of British Columbia
British Columbia Open University
Brock University

The University of Calgary
Campion College
University College of Cape Breton
University College of the Cariboo
Carleton University
Concordia University College of Alberta
Concordia University

Dalhousie University
Collège dominicain de philosophie et de théologie

University College of the Fraser Valley

University of Guelph

École des Hautes Études Commerciales
Huron College

King's College
The King's University College
University of King's College

Lakehead University
Laurentian University of Sudbury
Université Laval
The University of Lethbridge
Luther College

The University of Manitoba
McGill University
McMaster University
Memorial University of Newfoundland
Université de Moncton
Université de Montréal
Mount Allison University
Mount Saint Vincent University

University of New Brunswick
Nipissing University
University of Northern British Columbia
Nova Scotia Agricultural College
Nova Scotia College of Art and Design

Okanagan University College
University of Ottawa

École Polytechnique de Montréal
University of Prince Edward Island

Université du Québec
Université du Québec en Abitibi-Témiscamingue
Université du Québec à Chicoutimi
Université du Québec - École nationale d'administration publique
Université du Québec - École de technologie supérieure
Université du Québec à Hull
Université du Québec - Institut national de la recherche scientifique
Université du Québec à Montréal
Université du Québec à Rimouski
Université du Québec - Télé-université
Université du Québec à Trois-Rivières
Queen's University at Kingston

Redeemer College
The University of Regina
Royal Military College of Canada
Ryerson Polytechnic University

Université Sainte-Anne
Collège universitaire de Saint-Boniface
St. Francis Xavier University
St. Jerome's University
Saint Mary's University
University of St. Michael's College
Saint Paul University
St. Thomas University
University of Saskatchewan
Saskatchewan Indian Federated College
Université de Sherbrooke
Simon Fraser University
University of Sudbury

University of Toronto
Trent University
University of Trinity College
Trinity Western University

University of Victoria
Victoria University

University of Waterloo
The University of Western Ontario
Wilfrid Laurier University
University of Windsor
The University of Winnipeg

York University

 

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Sarah Alijani sa0565a@american.edu  &  Richard Wright rightrf@aol.com ________________________________________________________________________________________
Last update: December 17, 1999