Welcome to Episode #36 of TechTalks with Cathy Simpson.
Labour force challenges have been a hot topic in the tech sector for the last few years, and they’re only becoming more acute as our region’s digital and overall economies continue to grow.
On episode 36 of the TechTalks podcast, host Cathy Simpson digs into the latest data and insights with Patrick Brannon, a Senior Researcher at the Atlantic Provinces Economic Council (APEC), about his recent report Responding to the Labour Challenge in Atlantic Canada’s Digital Sector.
Here at TechImpact, we’ve had the pleasure of collaborating with Patrick. In 2019, he led the research on Digital Technology Firms: Their Importance and Role in Atlantic Canada’s Economy, and the findings from that report, particularly around talent and digital transformation, continue to inform the focus of our work.
An early interest in economics
Cathy started at the beginning, asking Patrick about his path to his current role. A self-described “country boy,” he grew up in the Annapolis Valley and went to Acadia University to study economics and business with a focus on finance. After years of working in the field, he returned to school six years ago to get his MBA at St. Mary’s.
For over 25 years, he’s worked at APEC, the independent voice on regional economic issues. The member-based nonprofit is guided by a board of directors from across Atlantic Canada. Along with conducting its own monitoring, research and reporting, APEC does a lot of contract research for companies, government and industry organizations.
“APEC adds that lens of independence to any conversation,” Patrick says.
COVID lessons
Coming out of the pandemic, Patrick says his most significant takeaway is the resilience of our economy.
“We have strong firms that were able to step up to the challenge and good government support throughout, so we were able to weather the storm,” he says. “We've come back stronger than ever.”
The pandemic has caused significant shifts in digitalization and the labour force, as well as demographically, including increased immigration.
“There are a lot of opportunities in Atlantic Canada right now,” he says. “Our population is growing. There is good momentum in the economy generally. We're in a very positive place in the region.”
Looking at labour
For the past two years, APEC has been working on a series of reports around the labour shortage, looking at issues such as causes, seasonality, and the future of work.
“There are a lot of transformative things happening in our economy, whether it's the digitization and greening of the economy, supply chains shifting or demographics shifting,” he says. “All of that is really important to our future labour force.”
Supported by ACOA and the four Atlantic provinces, the reports also look at specific sectors, including accommodation, digital, and manufacturing. What has become very clear is that each needs different things.
“A one-size model doesn't fit everyone,” he says.
The digital jobs picture
Responding to the Labour Challenge in Atlantic Canada’s Digital Sector focuses on core tech occupations, including computer system analysts, database analysts, software engineers, computer programmers, web designers and computer technicians.
While many work for startups and tech companies, two-thirds of digital jobs are in other parts of the economy, including digital roles in large companies and firms.
In both tech companies and digital or IT roles in the general economy, there’s been substantial growth driven by the increased use of technology in everything from remote work to e-commerce. And impending retirements of 10,000 people in core digital rules alone over the next decade will create yet more openings.
“It's a positive story,” Patrick says, but it’s also leading to high vacancy rates in the sector. “One of the problems with growth is that you have to make sure the supply keeps up with it.”
High-priority solutions
The report laid out a number of priorities to address the crunch.
High on the list?
We need to increase our labour supply by upping the number of graduates coming out of universities and community colleges and better coordinating between schools and firms to ensure skills alignment.
Immigration is another way to fill these roles. The report found that immigrants account for just 11% of the workforce, which is low compared to the national average of 30-40%.
“Part of that has to do just the higher flows of people coming into those cities, but we're starting to see more here,” says Patrick, who predicts a continued uptick in immigrants in the coming years.
At just 23% of the digital workforce, women are another underrepresented group. Patrick says there need to be more initiatives to increase that figure, including targeted recruitment strategies and scholarship packages and tuition support for females and minorities.
While education programs can help with labour supply, internal training and mentorship are also important.
“It's not just about increasing the number of people; it’s also about increasing the skills levels of people in the sector,” Patrick says, by building digital talent and soft skills.
And then there are non-monetary benefits to help attract and retain talent, including flexible work arrangements, remote working, and good work-life balance.
“Companies have to up their game to create an environment that people want to work in,” he says. “If they do that, they'll keep their people.”
As Patrick reminds us, digital is vital to the entire economy.
“It's not just a sector that is important in itself; it's a cross-cutting industry,” he says. “That's really important to Atlantic Canada, so it should be a priority area.”
Here's a peek at some of the highlights from this episode:
>>[02:09]: Patrick shares his path to becoming an economist.
>>[08:09]: Cathy talks about APEC’s labour market report for TechImpact set its direction.
>>[10:18]: Patrick on the post-pandemic trends he’s seeing.
>>[24:28]: We dig into numbers around upcoming digital jobs openings.
>>[30:42]: Patrick lays out high-priority solutions.
>>[42:43]: The role of digital, social infrastructure in talent attraction.
>>[47:22]: Patrick offers a round-up of solutions to the talent crunch.
Don't Miss an Episode.
Do you subscribe to the TechTalks With Cathy Simpson Podcast? If not, please do. My guests and I cover many different topics around innovation, technology and the future. Click here to listen and subscribe in iTunes. You'll find us on Spotify, Apple Podcasts, Google Podcasts, PodLink and everywhere else you enjoy podcasts.
And sign up for our newsletter to never miss an update.