Thank you, Mr. Chair.
Good morning to everyone in Ottawa. My name is Karna Gupta. I'm the president and CEO of ITAC, the Information Technology Association of Canada.
We represent the ICT sector in the country, which has about $160 billion in annual revenue. We invest about $4.8 billion annually in private sector R and D, which is more than any other sector in the industry. We create about 1.1 million jobs across the country. The average salary in this sector is running over $70,000. While most other sectors are declining, we're continuing to grow. Currently we have an unemployment rate of probably around 3%, which means we can't find people.
In terms of the presentation I'll walk you through today, I have sent my pre-budget submission to all of you. You probably have it. I'll discuss where I'd like to see government have active engagement in investment. The second area will cover some policy areas where we believe, as the ICT sector, we could continue to collaborate with the government to develop the right policies.
Let me start with the areas where we think the government needs to invest more. They come in three topical areas. We talk a lot about infrastructure. Digital infrastructure is absolutely critical. Second is talent. Most knowledge economies require talent. That is the ultimate resource. Finally, there's the intellectual property. More and more we're dealing with the trading of ideas rather than the trading of physical goods.
Let me start with digital infrastructure. On capital cost allowances, we recommend that they be increased as in any other sector. We recommend that CCA rates go up to 50% of the capital investment in most areas, and 100% in those areas identified by the Department of Innovation, Science and Economic Development as underserved in its Connecting Canadians broadband initiative. This change will support the business case for ICT companies to provide more service to Canadians.
There are direct economic benefits. These small and medium-sized enterprises will have a greater adoption of technology. It will create jobs.
There is also a significant amount of social benefit. It will serve telehealth, e-learning, and engagement in both social and political discourse online, which is particularly beneficial for remote communities, including first nations.
Under digital infrastructure, we also recommend that the government join the provinces and private sector in investing in the next-generation 5G network. Canada lags behind other industrial nations in that 5G will build our capacity for innovation and commerce. It will also serve such critical areas as the Internet of Things, or IoT, and cybersecurity. As well, 5G will allow Canadians to develop valuable intellectual property to further our knowledge economy.
The second area I'll focus on is talent. While most other sectors are shrinking their workforce and laying off people, the ICT sector is growing. Currently we have 54,000 jobs available across the country. Recent research from the ICTC declares that over the next four years, 100,000 jobs will need to be filled. If we focus on Canadians learning the skills, it will not only lower Canada's national unemployment rate but also help our unemployment in the youth sector, which is very critical.
There are two specific programs I'll mention that government could put some funds behind. The first is called CareerMash, where we promote to high schools that kids can go into technology as a career choice. The second is business technology management, which delivers curriculum to universities and colleges that creates hybrid knowledge of technology and business. Business technology management now runs across 20 universities around the country. It has enrolled 3,500 students. It is growing 25% year over year. It graduates about a thousand students a year. This next variable is very important: the placement rate is 90%, higher than in any other faculty.
Industry has supported this program in cash and kind for over $1 million during the last several years. Business technology management, or BTM, is currently funded by the Department of Employment, Workforce Development and Labour , and it is critical that these programs be continued under the current budget for about $5 million per year for the next several years. This way it can be refreshed and expanded beyond the 50 universities that have been targeted.
This will ensure that Canadians, particularly young Canadians, can fill the existing job vacancies and join the high-paying, skilled workforce in the ICT sector.
Let me now move to intellectual property. This is the backbone of a knowledge economy. We are not trading in physical goods; we're trading in ideas.
Canada's IP regime must—