Making Career Sense of Labour Market Information

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Shaping Labour Market Trends

   
   
   
   
   

Trends in the labour market - where do they come from? Are they long lasting or fleeting? How do they affect the Canadian worker? This chapter focusses on four major structural forces that are interacting to shape the trends emerging in the Canadian labour market:

  1. innovations in technology;

  2. political - economic factors (and the globalization of trade);

  3. social trends (and the shift to non-standard employment); and

  4. demographic changes

Two other major forces that also contribute to shaping the labour market have been given separate chapters: the structure of work is the focus of Chapter 3 and education and training is discussed in Chapter 6.

A. Innovations in Technology

Since the beginning of the first industrial revolution in the 18th century, new technologies have meant both the transfer of jobs from one sector to another (from agricultural labour to the production of farming equipment, for example) and the ultimate creation of more jobs throughout society.

Figure 1 shows that, continuing into recent times, companies that make greater use of technology create the most jobs. The more intense the use of technology, the greater the job creation over time. And while many jobs created by new technology are frequently not accessible to the people who have been displaced, it is important to remember that job creation by companies that make greater use of technology is not limited to just scientific or technical jobs.

Figure 1
Figure 1: Employment Growth has been
Strongest in High-Tech Industries

  • Growing companies in high-tech sectors also need workers in clerical, finance, shipping/warehousing, sales and marketing fields.

  • The influx of these workers into a community increases the need for personal and neighbourhood services, such as dry cleaners, day care, hairstylists, building supply companies and restaurants.

While globalization and other trends discussed in this chapter have a huge impact on workers and the labour market, the changes are small compared to the radical changes brought about by the incremental innovations in technology. Job forecasters believe those who can figure out how the revolution in technology affects hiring practices in their field will be in a position to take advantage of many opportunities.

 
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Making Career Sense of Labour Market Information