Future of work

Key Takeaway: Government-sponsored skills training can be effective when aligned with employer needs to meet the skills demand in local labour markets.

Prior to the pandemic, Canada’s skills development systems were already struggling to meet fast-changing labour market needs. With pressure from technological and demographic changes, Canada needs a skills development system capable of meeting employer and labour market needs. This research profiles two promising demand-informed training models — sector-based training and Career Pathways — both currently in use in the United States. The sector-based model works with employers in specific industries to identify their skills needs and to design corresponding training for better alignment. The Career Pathways model combines sector-based training with post-secondary education to facilitate workers’ career progression by providing upskilling opportunities. These models are recommended for their potential use in Canada’s policy response to the pandemic. Government-sponsored skills training can be effective when aligned with employer needs to meet skills demand in local labour markets. This is contrary to previous research, which relied on outdated methodology. Recommendations for Canada’s skills training landscape include testing and scaling up promising methods, developing strong networks between trainers and employers, and producing timely labour market information.