The Knowledge Gap : Canada Faces a Shortage in Digital and STEM Skills

Due to rapid digitalization across the economy and an aging population, Canada faces digital and STEM skills shortages. The COVID-19 pandemic has also intensified the need for digital and STEM skills and contributed to the existing shortages. These skills shortages can hurt businesses and affect economic growth.To respond, Canada needs to increase its supply of people with digital skills by developing and attracting digital talent and to investing in the reskilling and upskilling of its workforce.To attract more digital talent and to make immigration a tool for capturing opportunities in the digital economy, the federal and provincial governments should reform immigration programs to increase the admission of immigrants with prior study-permit-holder status and retain international students, particularly in STEM fields; ensure that the combined temporary and permanent immigration programs sufficiently increase the supply of newcomers with digital skills and that skilled immigrants receive the tailored support they need to integrate successfully into the labour market; and reduce the underemployment of skilled immigrants through greater efforts to bolster language skills and address barriers to the recognition of foreign credentials and experience.To develop digital talent, governments at all levels, according to their responsibilities, should take a holistic approach, including:• reforming the education system, ensuring availability of resources and training options for teachers to implement modernized curricula;• increasing STEM enrolment and graduation numbers by raising students’ performance in STEM subjects, closing the STEM gender divide by better helping students to make study and career choices and encouraging under-represented groups to continue their education in STEM fields by identifying and addressing their particular needs;• working with educational institutions to develop and expand digital skills learning, artificial intelligence (AI) and data science courses and programs;increasing high-quality work experience options such as work-integrated learning (WIL) opportunities and expanding co-op programs in the information and communications technology (ICT) sector;• investing in micro-credential/certification programs that are paired with work placement for youth not in education, employment or training;• investing in upskilling and reskilling the existing workforce; and,• preventing brain drain and retaining new graduates.Finally, employers should also take actions to expand the pool of digital talent and address their digital skills needs. They need to offer higher wages to attract more workers, provide on-the-job training opportunities to address skills gaps, shift their focus from degrees to skills and recognize and support non-formal training options