Thank you, Mr. Chair.
I would like first to thank you for inviting me to present the measures that the federal government could take to encourage Canadians to contribute to economic growth in a changing economic environment.
We are in a period of strong international competition. A key focus of our economic strategy must be a workforce that is among the most effective, creative, adaptable and innovative in the world.
Recently, Canada has been reaping the benefits of our investments in research and innovation. Google, Facebook, Tesla, Amazon and other global-leading companies have made major investments in Canada because of our unique research expertise, our highly educated workforce, our exceptional quality of life, and our focus on diversity and inclusion.
The numbers tell an important story. According to StatsCan, between 2013 and 2017, Canada netted 212,000 new full-time jobs. However, these gains were not evenly distributed: 581,000 new full-time jobs were created among those with a bachelor or graduate degree, while 343,000 jobs were lost among those without any post-secondary education. The employment rate of graduates with a master's or Ph.D. grew by 20% over that same period resulting in an unemployment rate of slightly over 4%.
This reflects a tight labour market. It is also one that Canada is ill-equipped to respond to. Canada ranks 26th in the OECD when it comes to the proportion of our workforce with a graduate degree. Closing this talent gap, especially in the face of increasing demand, is both an opportunity and a challenge for Canada. It will take time, making action all the more urgent.
The good news is that important investments in basic research from budget 2018, as well as those from previous budgets, will make important contributions towards this goal.
Accordingly, we are recommending a set of measures that are focused on young people, a set of measures to support graduate students, improve their training and research environment, and give them the skills they need to compete.
To increase the proportion of our workforce with graduate degrees, we need to ensure that graduate students are adequately supported. Canada's core scholarship programs have stagnated in numbers and value for more than 10 years. The U15 was pleased with the government's commitment to review the scholarship and fellowship program as part of budget 2018. In that spirit, and in accordance with the 2017 fundamental science review, we recommend that the scholarships and fellowships program be increased by $140 million per year over the next four years.
The quality of the research and learning environment of our students is dependent on how governments support the full cost of research, what many of you and us also call the indirect cost. Currently, the design of the indirect cost funding formula means that some 30 universities in the country receive much less than their full cost of research. These 30 universities conduct 95% of the research and train the vast majority of Canada's graduate students. If research-intensive universities are to attract the best students and professors, and invest in activities that support our ability to commercialize research and partner with industry, it is important that the government make an effort to address the full cost of research for all universities.
As we work to increase the proportion of people with graduate degrees, we should also seize the opportunity to develop additional skills that are essential in an innovative, globally connected economy. That is why The U15 2019 pre-budget submission recommends the following student-focused strategic investments.
One, encourage and support students wishing to benefit from an international learning and research experience. Two, support graduate students and faculty members in bringing cutting-edge discoveries to market by providing them with robust entrepreneurship training and opportunities. Three, expand the undergraduate student research awards program to all councils in an effort to give undergraduate students experience working on cutting-edge research projects across all disciplines. Finally, the U15 supports BHER's proposal for expanding work-integrated learning, which you heard about from my colleague previously.
Once again, I thank you for your time and look forward to your questions.