A Changing Economy
Toronto is shifting from a manufacturing based economy to a service based economy. Between 2004-2009, employment in the manufacturing sector in Toronto declined by 32.5%. During the same period, the financial sector increased by 23.69%. Since 2001, Knowledge Worker Jobs have been the single largest category of employment in Toronto. In 2006, the ratio of knowledge workers was a full 13 percentage points higher in Toronto compared to the rest of the province (Source: Statistics Canada 2006, An Economy Out of Shape, 2010, TWIG)
Knowledge Worker Jobs typically require the minimum of a college diploma, university degree or a refined skill. As Toronto moves towards a service and knowledge economy, the demand for highly educated and skilled workers will increase. Below are some of the challenges moving forward:
1. A greying workforce: the demand for skilled and knowledgeable workers will increase just as our labour pool will start to shrink. As baby boomers retire, there will be less experienced employees ready to move into senior leadership roles potentially creating gaps of talent across key sectors.
2. Fewer Middle Income Level Jobs: the service based economy divides the labour market into lower paid “entry-level” service jobs and higher paid “knowledge worker” jobs. Fewer middle income jobs means fewer prospects for economic advancement.
3. The Need for a Regional Competitive Approach: The economic shift to a knowledge economy has forced a move towards a regional competitive approach that uses local economic strengths and an integrated approach to labour market planning.
Related Links:
Talent Matters, Toronto Financial Services Alliance Publications
CBC's: Building Toronto's Future Economy
Toronto Regional Research Alliance- Key Sectors
