PARTNERING FOR RESULTS: ADVANCING ABORIGINAL ECONOMIC DEVELOPMENT Presentation by Allan Clarke, Aboriginal Affairs and Northern Development Canada Aboriginal Skills and Employment Partnership Conference Vancouver, BC May 29, 2015
Current Economic Reality Since mid-2014, weak global growth, combined with continued steady increases in oil supply, has led to significant declines in world crude oil prices. This is affecting Canada, which is a producer and net exporter of crude oil. Risks to the Canadian economic outlook remain largely external, stemming from the uncertainty surrounding both the future path of oil prices and global growth However, the Canadian economy is resilient: real gross domestic product (GDP) is expected to grow at a pace of about 2 per cent in both 2015 and 2016. Over 1.2 million more Canadians are working now than at the end of the recession, one of the strongest job performances among G-7 countries over this period. - Budget 2015 2 We probably still haven t seen the full impact of the oil price shock reflected in the employment data. Bank of Canada Governor Stephen Poloz, May 2015 Employment insurance numbers rise, led by Alberta 8.9% more Albertans started receiving EI benefits in March 517,900 Canadians receiving EI benefits in March (up 2,600 from March 2014) First year-over-year increase since February 2010 - Statistics Canada, May 2015
Future Economic Reality Fundamental shifts in economic force will shape the future of work, presenting both challenges and opportunities Rapidly advancing technology is transforming work and the economy Driving innovation and productivity; requiring people to quickly gain skills and knowledge Aging workforce will create labour shortages, particularly in some sectors Opportunities for younger workers, provided they can attain the necessary skills to meet current demands Globalization is increasing connectedness, urbanization, and emerging economies Opportunities for connected, skilled, mobile workers; will increase the exclusion of those who are not connected, skilled or mobile We live at a time when the schism with the past is of the same magnitude as that last seen in the late 18 th century. A schism of such magnitude that work what we do, where we do it, how we work and with whom will change, possibly unrecognizably in our lifetime. Lynda Gratton, The Future of Work, 2010 3
Canada s Aboriginal Labour Market in 2020 Significant proportion of Aboriginal workers hold jobs that require high school education or less; these jobs will be in decline in the future. This table uses Employment and Social Development Canada s (ESDC) Canadian Occupational Projection System (COPS) to provide insight into potential skills gaps and labour shortages by the year 2020. 4
Some Persistent Challenges to Address Legal and Regulatory Environment Need to address barriers that impede economic development, investment and modern lands management on reserve lands Skilled Labour Need to improve literacy and essential skills development and industry-specific job training It is impossible to imagine how social conditions will improve without meaningful support for the development of an adequate economic base and increased participation in mainstream local and regional economies. Senate Report, A Hand Up, Not a Hand Out, May 2007 Deficits in Capacity Need to increase tools and capacity to identify and pursue economic opportunities Limited Financing Options Need to improve access to commercial capital and other forms of financing to support the creation and growth of Aboriginal businesses Access to Lands and Resources Need to accelerate resolution of land claims and additions to reserves processes; operate at the speed of business Deficits in Infrastructure Need to improve commercial, communication and transportation infrastructure 5
Portrait of Aboriginal People in Canada Aboriginal people numbered 1.4 million in 2011; Aboriginal population accounts for 4.3% of the total population in Canada Young and growing population; between 2006-2011 Aboriginal population increased by 20.1% vs. 5.2% for non- Aboriginal population; Median age of Aboriginal population is 28 yrs. old vs. 41 yrs. old for non-aboriginal population 8 in 10 Aboriginal people live in Ontario and the western provinces Source: National Household Survey, 2011 Canada s urban Aboriginal population growing 5 times faster than its non- Aboriginal population 6
Key to Addressing Challenges Revenue generating tools, taxation, etc. Aboriginal, Provincial/ Territorial, Municipal, etc. Capacity and partnership development, assertion of jurisdiction, etc. Fiscal Government-to- Government Institutional Aboriginal Economic Development Industry Program Delivery Tri-partite agreements, economic development organizations, etc. Tri-partite agreements, economic development organizations, etc. 7
Partnership Examples Institutional First Nations Fiscal Management Act institutions First Nations Lands Management regime Westcap s Business Ready Investment Development Gateway (BRIDG) Program Delivery Aboriginal Financial Institutions and NACCA ASETS holders Tri-partite agreements Fiscal Revenue generating tools First Nations Oil and Gas and Moneys Management Act First Nations Goods and Services Tax Industry Collaboration Agreements Impact and Benefits Agreements Procurement Government-to-Government Mi kmaq Nova Scotia Canada Tripartite Forum Haisla FNCIDA regulations Community Economic Development Initiative 8
PARTNERING FOR RESULTS: ADVANCING ABORIGINAL ECONOMIC DEVELOPMENT Presentation by Allan Clarke, Aboriginal Affairs and Northern Development Canada Aboriginal Skills and Employment Partnership Conference Vancouver, BC May 29, 2015