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Increasing Indigenous Employment in Major Projects
PRESENTERS: Aboriginal Human Resource Council - Kelly Lendsay, President and CEO - Craig Hall, Chief Fulfillment Officer Conference Board of Canada - Marie-Christine Bernard, Associate Director, Provincial Forecast Aboriginalhr.ca/classroom
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Webinar Overview Background about the Project (Lendsay)
Employment Opportunities: Labour Market Forecasts for Major Projects (Marie-Christine Bernard, Conference Board of Canada) Examples of Community and Company Efforts to Increase Indigenous Participation in Major Projects (Lendsay and Hall) Summary Q & A aboriginalhr.ca
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(1998) Leaders in Indigenous inclusion
Public-private social enterprise ISO certified Innovations in workplace learning Supply/demand orientation Corporate Focused General content page aboriginalhr.ca
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Successful Indigenous Engagement in Major Projects
Helping companies develop effective engagements and relationships with Indigenous people, businesses and communities Identifying ways that communities can increase their participation in major projects aboriginalhr.ca
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About The Project: Major projects are an important contributor to the Canadian economy. Many projects occur near Indigenous lands and communities and they offer jobs and career opportunities. The issue is how to increase Indigenous participation in these projects? aboriginalhr.ca
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Labour market report available on the council’s web site
Occupational forecast for major projects 10 year outlook 200 occupations examined aboriginalhr.ca
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Project Activities Roundtables Webinars Dialogue Presentations
Insights aboriginalhr.ca
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Core Question From an HR perspective, what can be done to increase Indigenous participation in major projects? Strategies, practices, innovations? What can communities do? What can companies do? aboriginalhr.ca
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Employment Outlook for Canada: Opportunities in the Resource Sector
Marie-Christine Bernard Associate Director, Provincial and Territorial Forecast Service, The Conference Board of Canada July 19, 2016
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Background Information on Research Project
With this project the Conference Board of Canada assessed labour market demand associated with Canada’s major resource development projects over the next 10 years We identified projected future job openings by occupation and by region This information can help inform Aboriginal leaders and policymakers to ensure that the Aboriginal labour force has access to the training required to take advantage of the upcoming opportunities in Canada’s resource sector Our analysis focused solely on labour market needs in resource extraction We did not include occupations related to the development phase of resource extraction projects Before looking at the more technical results, let me say a few words about what we did. With this project, the Conference Board looked at labour market demand associated with Canada’s major resource development projects over the next 10 years. Our research focused on labour demand in the resource sector in Canada both at a national level and regionally over the next decade. I will be presenting the number of job openings in the resource sector by occupation as a result of the expansion of the resource sector and also due to the replacement of workers leaving the industry. This forecast aims to help understand labour market and occupational opportunities by region which can help improve labour mobility and skill development and training programs in order to foster higher Aboriginal worker participation in the Canadian workforce. What we did is that we produce a forecast for the resource sector in Canada over the next then years taking in consideration the projects that are under-development, those that are already producing and those that have been proposed. Our definition of the resource sector what guided by the data available to do this research at a regional level and include the mining, quarrying, oil and gas extraction, mineral exploration, forestry and fishing, hunting and trapping industries. Our analysis focused only on labour market needs in resource extration and we did not include occupations related to the development phase of the resource extraction projects. This is because construction jobs are typically temporary and do not stay in the communities for a long period of time. While a resource project can remain in operation for years, its construction phase only lasts a few years. From the perspective of Aboriginal communities in the North, construction jobs come and go and thus the analysis focused on the production phase of resource projects.
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Major Natural Resource Projects
The Conference Board compiled a list of close to 115 of Canada’s largest and most important proposed natural resource projects. Not a full list of every project that will move ahead over the next decade but they represent the majority of likely new major investment spending given current and expected market conditions. Value of the major projects In total, investment spending is estimate to be $342 billion over the next ten years. About $240 billion are energy related projects and will occur mainly in Alberta About $68 billion are mineral mines. $17 billion (energy and minerals) are in the territories. How did we build our forecast for the resource sector? At the Conference Board we have been producing detailed forecast for the Canadian economy and its regions and territories for well over 30 years now. For this research project we built our forecast looking at the conditions driving the expansion of the resource sector which is now going through a period of turbulence but we also look at the proposed projects and compiled a list of close to 115 of Canada’s largest and most important proposed natural resource projects. This is the main driver of our forecast, it will be driving the outlook in terms of production and labour needs. We did not include all of the proposed projects so our list of the 115 projects translates into about $342 billion on investment expected to occur between now and 2025. That is not full amount of investment that has been proposed in Canada in the resource sector. Natural Resources Canada tracks all of the investment projects and estimates that if conditions were better, it is close to $700 billion of investment that would occur. But given the current and likely conditions that have dimmed considerably in the last few years, it is about just less than half of this investment that will be underdevelopment and fuelling the resource extraction industry over the next decade. In total more than $342 billion worth of projects have been proposed or is development over the next 10 years. A good proportion of the projects will occur in the energy sector but there is still a sizeable amount planned for other mining projects all over Canada and in the territories.
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Methodology To derive labour demand, we estimated the economic impact of the major projects expected to get underway in the resource sector. We used our detailed econometric forecasting models for each of the 10 provincial economies and three territories to establish a forecast for the resource sector from 2015 to 2025. With a forecast for output in hand we were able to derive an employment forecast. We broke out the employment forecast in two groups: expansion and replacement demand. Finally we broke down the forecast results even further by estimating the demand for workers by occupation. How are we able to derive labour demand from our monitoring and knowledge of the resource sector? We used our economic forecasting models for each of the 10 provincial economies and three territories to assess how the economy will be performing if we take in consideration the projects that are likely to proceed in the resource sector over the next 10 years. With a forecast for the economy in hand and most specifically how the 115 resource projects will impact resource extraction, we are able to derive an employment forecast looking at how many jobs will be created with the expansion of the resource sector. We look at overall employment opportunities and then we provided more details and broke the results up between the job opportunities due to the expansion of the resource sector (what we refer to as expansion demand) and the job opportunities that come up because of the ageing of the workforce in the resource sector and also other factors that lead to turnover (we refer to this as replacement demand) Finally we broke down the forecast results even further by looking at the demand for workers in the resource sectors by occupation at the 4-digit NOCS level. This is what I will be presenting today, I will present our forecast results for Canada as a whole.
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Canada: Extraction Employment Outlook, by Industry (in 000’s) Source: The Conference Board of Canada; Statistics Canada There are a lot of results in this slide, so what can we take away. There were over 376,000 Canadians employed in the extraction resource sector in Canada in 2014. The largest sub sector is the support activities which employs 160,000. Support activities are critical to the resource sector and inlude activities such as oil and gas drilling and mineral exploration. The level in 2025 will actually be lower than 2014 but looking from 2015 to 2025 there will be modest growth of 0.3 per cent on average. Oil and gas extraction employment was not severely affected by the downturn in oil prices, employment will only increase marginally from 2020 to 2025 due to productivity gains. Employment will be up only 0.6 per cent in 2025 compared to 2014. The outlook for employment in the metal and non-metal mining is significantly more positive, The two industries combined employed 58,000 Canadians in The tally is expected to rise to 67,000 by 2025 for average growth of 1.3 per cent. Employment in the resource extraction sector as a whole is expected to grow just 0.2 per cent annually from 2014 to However, this includes an oil-shock that had driven down growth by 4.1 per cent in 2015 followed by a healthier 0.6 per cent annual growth until Given this relatively modest growth, most of the new jobs opportunities in the resource sector are projected to come from replacement demand. Retirements, in particular, are expected to be the single most important contributor of new job openings in the majority of occupations.
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Canada: Employment by Industry and Skill Level Source: The Conference Board of Canada; Statistics Canada The resource extraction sector requires a diverse labour force. In fact, the 376,000 resource sector employees in 2014 covered 296 distinct occupations, span a wide range of skill sets and levels of education. These included occupations spanning a wide range of skill sets and levels of education, such as engineers to electricians, equipment operators, geoscientists, and chefs. The occupations are defined by Employment Skills Development Canada (ESDC) and are divided into five groups (M, A, B, C, and D), based on their required level of education or training. Skill level M is assigned to management occupations. Skill level A occupations are those that usually require university education. Skill level B occupations require college or apprenticeship training, while those under skill level C require secondary school or occupation-specific training. Finally, skill level D occupations generally only require on-the-job training.
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Canada: Top Occupations in the Resource Extraction Sector – 2015 to Source: The Conference Board of Canada; Statistics Canada These are the results of our resource sector forecast and analysis by broad occupational category. These indicate which occupations will see the most job openings over the next 10 years. These are the top occupations with the greatest forecasted hiring requirements. They include transport truck drivers, heavy equipment operators and underground production and development miners as the top threeo ccupations to be most in demand in Canada. There is a mix of trades-related occupations and managerial occupations Since we only have a modest forecast for growth in the mining sector in Canada, the sector will not be growing its workforce so the majority of the job openings will be due to either workers migrating out of the province or workers retiring. The majority of the jobs openings will be due to the ageing of the workforce however. The ones highlighted are trades-related occupations. While only about 6 to 7% of the workforce in the mining sector is aboriginal workers, for certain trades-related occupations, the proportion of workers that are of aboriginal identity is much higher than that. For exemple for Maintenance and Operation Trades which the first two (Heavy-duty equipment mechanics,Construction millwrights and industrial mechanics) here fall under, close to 8% of workforce in those trades-related occupations were of aboriginal identity. And for heavy equipment operators that fall under an occupation grouping in the mining sector, has at least 15% of the workforce that is aboriginal workers. So, the ones that fall under Maintenance and Operation Trades are: 1. Heavy-duty equipment mechanics 2. Construction millwrights and industrial mechanics And the ones that fall under Transport and heavy equipment operation and related maintenance occupations are: 1. Heavy Equipment Operators And the full NOC-S codes for the highlighted occupations are: 7521 Heavy equipment operators (except crane) 7311 Construction millwrights and industrial mechanics 7312 Heavy-duty equipment mechanics 7452 Material handlers 7242 Industrial electricians The ones that start with 74 are under “Other installers, repairers and servicers and material handlers” The ones that start with 72 are under “Industrial, electrical and construction trades” .
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Canada: Top Occupations in the Resource Extraction Sector – 2015 to Source: The Conference Board of Canada; Statistics Canada
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Canada: Top Occupations in the Resource Extraction Sector – 2015 to Source: The Conference Board of Canada; Statistics Canada What to take away from all of these numbers, with 300 occupations, 10 years of data and several different sources of job vacancies our forecast generated quite a large amount of data. Our long-term outlook for occupations suggests that there will be demand for occupations in a diverse range of skills. The occupations that round up the top 30 can be broadly divided into two groups. The first group includes occupations that will be in demand across most resource extraction industries. They generally do not require a high level of training and receive average compensation. These include transport truck drivers, for instance, which are projected to lead the number of job openings from 2015 to 2025 with more than 3,750 job openings. Similarly, financial auditors and accountants, administrative assistants and purchasing agents are among the occupations that fall under this first group. The second group consists of occupations that are highly specialized. They typically require a high level of education or training, are needed in one specific industry and are highly compensated. These include petroleum engineers, mining engineers and geoscientists and oceanographers. Despite our modest outlook for the oil and gas sector and its support services, many of the occupations in the top 30 are still closely linked to the sector. Even if expansion demand for occupations linked to the sector is quite weak, retirements will become an important source of job openings in this sector. For instance, our outlook suggests there will be approximately 385 fewer petroleum, gas and chemical process operators by Yet, there will be more than 975 job openings due to replacement demand, which is a result of retirements and, to a lesser extent, in-service mortality and international migration. Meanwhile, other occupations benefit from both strong expansion and replacement demand. For example, job openings for underground production and development miners are projected to reach 3,273 by 2025, with an even mix of 1,586 due to expansion in metal and non-metal mining operations and 1,687 as a result of the replacement of existing workers.
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Canada: Job Openings in the Resource Sector from 2015 to 2025, by Cause and Skill Level Source: The Conference Board of Canada; Statistics Canada In total, the resource sector in Canada is projected to generate over 65,000 job openings from 2015 to 2025 during the operational phase of the projects. The vast majority of these openings will be due to replacement demand. In fact, expansion demand will only be responsible for about 6,700 or 10 per cent of new openings, as the expansions in mineral mining and forestry are offset by declines in support services. Replacement demand will be led by retirements in the sector, which are projected to be about 42,000 during this period. A further 10,000 job openings will be caused by in-service mortality, while the remaining 6,500 openings will be as a result of migration out of Canada. Only 28 per cent of these jobs fall under skill levels C and D. This means the overwhelming majority will require formal training or education. Approximately, 20 per cent of occupations are either in management or require a university degree. Moreover, nearly half of all jobs (47 per cent) in the resource extraction are classified under skill level B. While they do not require a university diploma, they do require a high level of specialized training. Therefore, Aboriginal communities who are interested in increasing their participation in the resource extraction labour force will do well to plan ahead.
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Conclusion for Canada Employment in the resource extraction sector in Canada is expected to grow just 0.2 per cent between 2014 and The oil downturn is dampening the results. Most of the new 65,000 job opportunities in the resource extraction sector over the next decade are projected to come from workers retiring. Our long term outlook for occupations suggest that there will be demand for occupations in a diverse range of skills but the majority will require formal training or education. In many provinces, Aboriginal people are underrepresented in the resource sector workforce. With lower commodity prices and delays in developing major projects, hiring pressures have subsided. However despite this trend, Canada’s mining industry is still faced with significant labour market challenges, gaps and pressures. The proportion of Aboriginal peoples without a certificate, diploma or university degree is considerably greater than the non-Aboriginal members of the workforce. Approximately 305 of Canada’s Aboriginal population aged between have not acquired a certificate, diploma or degree compared to 12% for non-aboriginal population. Education attainment is one factor related to labour force participation. The labour participation rate of aboriginal worker is 6.4 percentage point lower than of non-aboriginal workers. Going forward, training programs, mobility of workers and business partnerships with project proponents will be paramount to keeping Aboriginal workers well represented in the sector.
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Increasing Indigenous Participation In Major Projects:
HR Considerations aboriginalhr.ca
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HR Approaches That Can Encourage Indigenous Participation In Major Projects
HR Success Factors Which Encourage Indigenous Participation in Major Projects Community HR Planning Structures and Systems Interest-based Job Fit Aligning Education with career Goals Community-based Career Planning Model Job Readiness Approaches aboriginalhr.ca
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Community HR Planning Structures and Systems:
Example - Cree Human Resources Development Department Single window Mandated by the appropriate authority Facilitates program linkages with community entities, companies and others Culturally relevant training and job readiness Cross sectoral aboriginalhr.ca
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Interest-Based Job Fit
Understanding which jobs best fit Indigenous peoples’ personalities, interests, skills etc. More up-front client interviews to determine Job-seekers needs and aspirations Better fit means stronger engagement + better retention Broader range of psychometric instruments Adoption of broader metrics to gauge success Issues: The average age of a truck driver is 7 ½ years higher than the average Canadian workforce. The image of the industry and how it is perceived by the general population – and, more specifically, by under-represented groups. Traditionally male-dominated environment with low proportion of groups such as Aboriginal peoples, people with disabilities, women and visible minorities. Efforts to address them: Trucking HR Canada is currently in the process of establishing a national youth committee to develop a national employment strategy. Several projects are underway to raise awareness and provide trucking employers with practical tools to facilitate the recruitment and retention of under-represented groups – this includes our business case on diversity and inclusion (which is available on our website). Trucking HR Canada and industry stakeholders are working towards resources to increase the perception of trucking as a professional occupation. aboriginalhr.ca
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Aligning Education with Career Goals
Reality check for aspiring Indigenous career seekers Better systems needed to ensure that education offers and education access aligns with evolving career goals Stronger career planning and career materials are needed Result is career candidates who are better prepared for the jobs and careers they most desire Examples: Aboriginal baby boom: Aboriginal peoples are the fastest growing demographic in Canada. Younger generation: 46% of Aboriginal peoples are under 24 years old. The average age of a truck driver is 47.5% with 12% of them being under 30. More accessible talent pool: Result of 1 and 2. Proximity to major projects in Canada and trucking hubs: Hiring locally is a best practice raised by several employers mentioned in the business case. Cross border mobility: Cabottage is of benefit to Aboriginal peoples working in the trucking industry as they can bring back loads from the US into Canada. aboriginalhr.ca
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Getting Indigenous People Job Ready
Ensuring Indigenous people have the essential skills and the micro skills needed to do the job. We are currently preparing consultations with Aboriginal communities and stakeholders who are either working in the trucking industry or interested in the industry. We are looking to learn more about the perceived barriers to entry in the industry as well as retention from an Aboriginal person’s perspective. Anyone who’s interested in participating or would like to provide more feedback can contact us at Through the development and sharing of best practices, champions, HR tools and resources targeted at employers. Through our consultation process and the development of HR resources. aboriginalhr.ca
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Community-based Career Planning Models
Consideration of community socio- economic goals Putting the leadership and community capacity needs into place to achieve those socio- economic goals Creating careers for indigenous people who can help facilitate and guide those developments Career paths: Add information about the different career paths in the industry from truck driver (long haul vs short haul) to safety manager. Recruitment: Some companies currently use Aboriginal Link to post job ads; offer training on literacy, language skills, and educational upgrading; offer to involve family in decision-making; and, some companies & training schools have created job positions accountable for Aboriginal relations. Retention: Some companies create flexible schedules and routes that allow employees to stay in touch regularly with their communities. Health and wellness: Some companies, like NRT, offer life skills training programs that covers everything from opening a bank account to renting an apartment to buying a car. Others are expanding their Employee Assistance Program to include access to an elder for guidance and support for Aboriginal peoples. Training: Some companies, including Westcan Bulk, have partnered with an Aboriginal organization to offer training for Aboriginal Class 1 A truck operators. Customer, market, benefits and brand: Some companies make a point of being involved in their communities, which for NRT meant supporting Aboriginal sporting and cultural events in their local community. Next steps: The industry is committed to working together through our consultations with Aboriginal peoples and communities to learn more about the perceived barriers and facilitate the recruitment and retention. aboriginalhr.ca
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Summary and Conclusion
Major projects are a huge stimulus for the economy; The LMI data indicates that there will be many job and career opportunities for Indigenous people; The occupational forecasts are valuable because they can help focus communities, companies and others to conduct more precise planning; The broader challenge is to develop the right HR strategies, practices and approaches which lead to the right outcomes encouraging full Indigenous participation in major projects; aboriginalhr.ca
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Summary and Conclusion cont.
A partial framework was offered in this webinar which focuses on some different ways that communities and companies are trying to achieve better Indigenous employment results. Broader metrics needed to plot progress and success. It’s not just about job numbers. It has to do with job fit, employee engagement, retention etc. Community capacity is needed to actualize results e.g. sophisticated infrastructure and systems to plan and implement culturally relevant programs. More emphasis on programs which encourage job readiness. aboriginalhr.ca
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Summary and Conclusion cont.
Better linkages are needed to align career goals, education offer and education access. The 20/20 Catalyst program offers an informative model which not only provides job and leadership training but is linked to broader community aspirations e.g. green energy planning. aboriginalhr.ca
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Join Us At Inclusion Works ’16 November 22-24, 2016, Banff
Annual signature event Management Learning Program Workplace Inclusion Leadership Awards Networking Recruitment Fair Kocihta Leadership Skill Build aboriginalhr.ca
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Thank you Visit Our Project Site At: https://aboriginalhr
aboriginalhr.ca
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Q & A Kelly J Lendsay Craig J Hall aboriginalhr.ca
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