Thank you, Mr. Chair and honourable members of this committee. My name is John Kozij, and I am representing the Department of Human Resources and Social Development.
With me are Gerald Gosselin, a colleague from the aboriginal peoples directorate of Service Canada, and Marilyn Lumsden, who, like me, works for the aboriginal affairs directorate of HRSDC.
It's a pleasure to be here today to speak with you about aboriginal people and employability issues in Canada and to be part of this panel. I believe background information in the form of a deck has already been distributed to you, specifically a deck entitled “Aboriginal Labour Market Development: Demographic Overview, and HRSDC Aboriginal Labour Market Programs”. I'd not planned to walk through all the details of the deck, but rather to highlight some salient points to the discussion today.
Specifically, I want to paint a portrait for you of current issues and challenges with respect to greater aboriginal labour market participation, and secondly, the role of HRSDC, our aboriginal partners, in aboriginal labour market development.
To start, with the 2001 census as a guide, there are almost one million aboriginal people in Canada. This is a young population, and growing fast. This population experienced a growth rate of 22% between 1996 and 2001. If you compare that to the non-aboriginal population, it's quite dramatic, because that growth rate was only 4%. It is a young population with an average age of about 25 years old, compared to the Canadian average, which is about 37.
In labour market terms, in light of the young age of this population, the growth is most rapid for those of an age group who would be seeking their first jobs, their first skills training, and who also would be starting post-secondary education. Although Ontario has the largest aboriginal population for a province in Canada, over 60% of the aboriginal population is in the west, and that higher concentration of the aboriginal population in the west means that the aboriginal workforce will be a larger part of new entrants in the future, and increasingly important to the western labour force as a whole.
While the aboriginal labour force represents an untapped labour resource to help alleviate skills shortages, in some sectors and some regions there are also problems for this being realized. Aboriginal unemployment is almost three times higher than the national average, four times higher on-reserve and over two times higher off-reserve. The most important reason for higher levels of unemployment is education. Almost half the aboriginal population has less than high school education, compared to about 30% of the population as a whole in Canada. There is also a corresponding gap in literacy levels.
With every picture there are also the positives, though. Aboriginal participation rates—that is, the percentage of aboriginal people either working or actively looking for work—are not that much different from the Canadian average, about 61% to 64%. In addition, as a percentage, 16% of aboriginal people compared to 13% of non-aboriginal people are graduates of trade certificate programs. We can see, too, that the tightening of the labour market in the west has had a positive effect on off-reserve aboriginal labour market outcomes.
At the request of the Alberta government, Statistics Canada added questions to the monthly labour force survey that allowed aboriginal people off-reserve to be identified. While gaps do remain between the aboriginal and the non-aboriginal population, there were a number of positive findings. First, a robust Alberta economy produced strong labour market outcomes for aboriginal people. Second, the Métis had relative success in the labour market, with an unemployment rate of about 8%. Last, completion of post-secondary education was particularly important for aboriginal people since it dramatically increased their chances of obtaining employment.
While there have been some sharp improvements over the years, the evidence from Alberta indicates no sharp improvements. In the off-reserve aboriginal labour market, there are enduring problems. It is those enduring problems and a recognition by the federal government that extra effort was required to improve the situation that led successive governments, starting in 1991, to support national-level efforts to improve labour market outcomes of aboriginal people.
Currently this support is manifested in three ways from our department.
First, the government supports the aboriginal human resources development strategy, or the AHRDS, as we like to call it. We're working with aboriginal organizations, 80 across the country. HRSDC helps to support aboriginal-run employment and training service platforms that assist aboriginal people to prepare for, find, get, and keep jobs.
Second, and complementary to the AHRDS, we support an aboriginal sector council that works with private sector organizations and other sector councils to promote aboriginal employment.
Last, we support the aboriginal skills and employment partnership initiative, or ASEP, as we call it, which seeks to maximize aboriginal employment in major economic development projects, with partnered support from the private sector and others.
These projects offer employment opportunities to aboriginal people in areas where they live and where a clear and present large economic opportunity is evident. With our aboriginal partners, the AHRDS helps more than 16,000 aboriginal people return to employment every year.
In Leo Tolstoy's book, Anna Karenina, he started famously by saying, “All happy families are like one another; each unhappy family is unhappy in its own way.” I think this is also true for aboriginal people who succeed and fail in the labour market. The reason that someone succeeds can largely be attributed to their education level and the state of the economy. The reasons for failure are as individual as the person who walks through our doors for assistance and needs special attention.
The AHRDS was created because we recognize that special attention is fundamental to success, and that programs of general application for all Canadians are not suitably flexible and sensitive enough to meet the needs of the aboriginal community. People such as Mr. Dinsdale of the National Association of Friendship Centres and Sherry Lewis of the Native Women's Association of Canada are counted among the AHRDS partners who we value to deliver results for aboriginal people by tailoring labour market programming to their needs.
As a concluding note of pertinence to this committee, in the budget this week additional support to ASEP was announced of $105 million over five years. This additional investment will more than double the size of the current program, and we anticipate this increase to ASEP will lead to 9,000 aboriginal people receiving skills training and 6,000 careers in major economic development projects.
Those are my opening remarks. I'd be happy to respond to any questions or comments from the honourable members.
Thank you.