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A curated resource of recent research on trends shaping Canada's labour market.

Do adults have the skills they need to thrive in a changing world? Survey of adult skills 2023

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Key Takeaway
Among OECD workers, 23% are considered overqualified for their jobs. The Canadian subset reflects even higher rates of overqualification (28%).

 

The 2023 edition of the OECD’s Programme for the International Assessment of Adult Competencies reveals new insights into the state of skills in 31 OECD nations.  

The Survey of Adult Skills found that literacy proficiency decreased across most countries, while there were mixed results for numeracy.  

Interestingly, the researchers found that—across all studied OECD countries—higher education qualifications did not necessarily equate to higher literacy and numeracy proficiency. However, they did note that—within countries—those with more advanced higher education credentials were more likely to demonstrate a higher proficiency in literacy and numeracy. They suggest this could be because of local differences in education systems and cultures around training and lifelong learning. 

The report also shows more evidence of a skills mismatch for workers employed in today’s labour market. When measured by qualifications, skills or field of study, the survey found that about one third of workers in participating OECD countries were mismatched with their jobs.  

Furthermore, 23% of OECD workers in the studied countries are considered overqualified for their jobs, and the Canadian subset reflects even higher rates of overqualification (28%). This had real consequences for workers in mismatched jobs because they earned 12% less than those in matched jobs. This issue also affects overall quality of life for workers in these countries: those in mismatched jobs were 4% less likely to express high levels of life satisfaction (though this was not observed in Canada). 

The authors conclude that the survey results offer further evidence of a labour market and skills imbalance. Individuals are pursuing credentials that are not aligned with the labour market needs in their country. The authors suggest an organized, coordinated and strategic approach to investing in upskilling, lifelong learning and incentives for developing in-demand skills to align education and labour market demands.  

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