Good morning, committee members and witnesses. On behalf of the Prince George Nechako Aboriginal Employment and Training Association, otherwise known as PGNAETA, it is a pleasure and a privilege to address the standing committee.
Our association is mandated to serve the aboriginal community in the field of human resource development in the northern interior of British Columbia. Our primary services are resourced through the aboriginal skills and employment training agreement with Employment and Social Development Canada. The region we serve encompasses 17 first nation communities, one city, and seven rural municipalities. We serve all aboriginal citizens on and off reserve, status and non-status, and Inuit people residing in a rural or urban setting. This is regardless of place of origin. As long as you're aboriginal and you live in the region we serve, you have access to our services.
We are guided by our chiefs, urban leaders, employment practitioners, and our citizens to work collaboratively to aid the workforce to participate in the shifting labour market in today's economy. We believe that individual growth and development is essential to advancing community sustainability. In an effort to maximize the potential for first nations to achieve greater prosperity, our strategy focuses on three key themes. The first is to build capacity for individuals and communities. The second is to link and develop partnerships with industry and key community stakeholders. The third is to implement innovative approaches and diverse methods to influence positive change.
We offer a suite of programs and services with unique features. We have an experienced and qualified team who are driven by success and a desire to make a difference in northern communities. We offer classrooms, stationary computer labs and mobile computer labs, and our partnerships with local industry attest to our quality of service. This has resulted in the signing of 16 recruitment and retention agreements with industry.
Together with all services provided by our association, in the past four years of a five-year ASETS agreement, we have secured 2,708 job placements. In terms of the impact to federal and provincial social programs, that represents in excess of $800,000 in savings to the employment insurance fund. It is in excess of $2 million in savings to both the federal and provincial social income fund. An estimated $30 million in wages has been invested into the economy.
We are also pleased to join our colleagues and our partners in B.C. There are 13 first nations ASETS holders like ours across the province that form the First Nations Human Resource Labour Council. We have the support of the B.C. Assembly of First Nations, the First Nations Summit, and the Union of British Columbia Indian Chiefs. We have signed a memorandum of understanding with the First Nations Leadership Council, and we've also signed protocols with the Industry Training Authority and the ministry of housing and social development. The overall goal of the council is to influence social change by working with the Government of Canada, developing strategic relationships leading to partnerships, and lending expertise to labour market development strategies.
When it comes to the topic of opportunities for aboriginal persons in the workforce, there are four primary considerations. One is the labour market supply. The population of working age aboriginals is expected to grow by 72% between 1991 and 2016, compared to the 23% growth of the non-aboriginal population.
The aboriginal labour force in B.C. signifies an available labour pool, with census and statistical data depicting aboriginal growth rates as the highest in Canada, which is certainly a source for new labour market entrants. The aboriginal population in the northern interior of B.C. is younger than the non-aboriginal population. For example, the median age for aboriginals is 29; the median age for non-aboriginals is 42. In contrast, 16% of the aboriginal population was over 55 years of age compared to 30% of the non-aboriginal population. The growth rates for the aboriginal population are 3.5 times the rate of the non-aboriginal population in B.C., creating a future pool of new entrants to the workforce.
Aboriginal youth fall behind mainstream youth in graduation rates and often exit the public school system with leaving-school certificates at lower levels of literacy. Even though we have the highest growth rate in terms of our youth, we also have the lowest literacy levels and the highest dropout rates.
Aboriginals with multiple barriers to employment are particularly vulnerable, and need to acquire the necessary skills to adapt to the changing labour market environment and secure long-term jobs. Aboriginal citizens are the most logical labour pool for growth industries that are situated near first nation villages. Even though we have the growing labour pool, and we have the highest-growing youth rates, we also have some challenges to being able to link them to the workforce.
The labour market gap is the second consideration. The difference in employment rates between aboriginal and non-aboriginal people is particularly large in northern B.C., where, according to the report, 77% of prime-aged non-aboriginals can find work compared with only 57% of aboriginals. The unemployment rates in our region depict a 19.7% gap for employment statistics and a 10.3% gap in unemployment statistics, with a median variance of hourly wages earned at $4.33 per hour.
Education levels for aboriginal citizens are lower than non-aboriginal, and with the looming technical and trades shortages anticipated, significant work will need to take place to achieve technical competencies. For example, we employment-counselled 6,000 people who showed even a mild interest in trades, and 24% had the required literacy to begin a trade or technical program. Many of them were armed with grade 12 diplomas and functioning far below the literacy level that is required to enter a trade.
With the demand for workers projected to grow in the next 10 years, it is essential to support and continue to resource the aboriginal employment skills training strategy, thereby enabling a diversified workplace, encouraging long-term placement, and closing the gaps .
The third consideration is labour market demand. The trades outlook report for 2010-20 predicts that labour market conditions will tighten, with labour shortages for the technical occupations and trades sector as a whole expected by 2016.
The labour demand in northern B.C. has grown exceptionally fast in the last five years due to an increase in project development and a rising retirement rate. This is primarily in the field of mining, in some cases natural gas development, and certainly in construction. As identified by the B.C. labour market outlook, 97% of all job openings require a minimum high school education, of which 42% require college or trades certification. Based on this evaluation, the need to increase workplace literacy or education within aboriginal communities is key to their future success.
Growing demand across all sectors and the demand for skilled workers will exceed the growing labour force. That's significant growth in mining, oil and gas, forestry, energy, manufacturing, construction, and infrastructure development. There will be geographically based opportunities with several growth factors situated on the traditional territories of first nation communities in semi-remote and remote locations. There is also the seasonal employment versus the long-term engagement opportunities.
The fourth and final consideration is achieving parity. To increase the standard of living amongst the aboriginal community in northern B.C., it is essential to provide the aboriginal population with the skills needed to attain future employment in sustainable jobs, to fulfill job requirements competently, and to pursue higher learning. Low-skilled jobs often equate to lower pay, poor working conditions, shift work requirements, fewer benefits, minimal chances of advancement, and non-sustainable circumstances. In most cases the jobs are filled by the marginalized populations—those with lower education levels and barriers to higher learning.
Employment-related costs such as day care, transportation, work gear, and driver’s licences add to the burden of working for low pay. Within the aboriginal community, a large segment of the labour force resides in rural or remote settings. Transportation, living-away-from-home costs, and suitable accommodations can be a major factor if the jobs are located a distance away from an individual’s home community.
To ensure a successful transition of our citizens into sustainable markets, opportunity, resource and appropriate supports are required. The primary focus is to develop the skills and education of our citizens to access sustainable employment, and by providing supports, options, and opportunities to improve their employment situation. This work has proven to be more successful when led by aboriginal organizations such as the ASETS agreement holders.