Good evening, Chair, Vice-Chairs and members of the Standing Committee on Science and Research. Thank you for the opportunity to present today on the study of top talent, research and innovation.
As you know, my name is Nicholas Schiavo, and I'm appearing this evening as the director of federal affairs on behalf of the Council of Canadian Innovators. I am joined by CCI president, Benjamin Bergen.
We are a national business council representing 150 of Canada's fastest-growing companies. Our member companies are headquartered here in Canada, employ north of 52,000 employees across Canada and are market leaders in the sectors of health, clean and financial technologies, cybersecurity and more.
Throughout the COVID-19 pandemic, the digitization of Canada's economy and public services has increased at a rapid rate. This shift, ongoing for many years, has created innovation and prosperity in many sectors; however, it has also added increased pressure on Canadian scale-ups to find the skilled talent required to fuel a digital future where growth can be sustained.
The priorities that I will speak to today address Canadian scale-ups and their ability to train, attract and retain top talent that improves Canada's innovation outputs in development and commercialization. This goal is critical to ensuring that Canada remains competitive in today's global and intangible economy.
I would like to begin to begin by briefing you on the pressures facing domestic technology companies in Canada in their pursuit of attracting and retaining highly skilled talent.
A recent report from the Information and Communications Technology Council estimated that by 2025 Canada's digital economy will employ 2.26 million Canadians. That's 11% of all employment in the country. This will require an additional 250,000 jobs to be created over the next three years.
CCI's members and Canada's scale-up companies are committed to creating many of the new jobs required, but they face a serious talent supply issue. Unfortunately, scale-up companies can't just maintain their workforce. They need to grow rapidly, and adding the best and brightest talent remains a constant priority.
A recent survey of CCI's members found that most companies plan to increase their workforces by 20% this year alone. That's an additional 10,000 more workers added to our companies and our economy by this year's end.
It's important to note that, in addition to the private sector, the shortage of skilled labour in Canada is having an equally negative impact on the public sector. In April, a spokesperson for the Communications Security Establishment acknowledged this crisis, stating that recruitment for Canada's cybersecurity workforce remains “challenging and highly competitive.”
For years, the shortage of skilled talent has been a driving concern for CCI, but the recent shift to remote work has only exacerbated the problem. Canada's skilled workers are now part of a global labour market where geography is no longer as important. Our domestic innovators are finding themselves in fierce competition with global companies that can offer significantly higher salaries for the same crop of highly skilled workers. This is driving up wage inflation across our companies.
Earlier this year, CCI surveyed our members on this topic and found that wage expectations have increased by 20% to 25% over the past year. This is not sustainable. Acknowledging this, CCI recently released a talent and skills strategy with 13 key recommendations to meet the talent needs of our country's fastest growing companies. I look forward to discussing these recommendations with you today.
These recommendations speak to the need to increase the generation, attraction and retention of skilled workers for Canadian firms. This strategy was developed in collaboration with Canadian entrepreneurs and the innovation ecosystem to provide clear and tangible policy recommendations to combat this issue from all angles.
These recommendations span four focus areas.
First is a focus on talent attraction by bringing more tech talent to Canada, updating the national occupational classification codes, expanding alternative credentials and enhancing the global talent stream and global skills strategy.
Second is focus on talent generation by financially supporting Canadian businesses that upskill their workforces and incentivizing post-secondary institutions to develop better experiential learning opportunities.
Third is a focus on talent retention by introducing innovative solutions to support recent graduates with student debt and a commitment to leave employee stock options unchanged as a key incentive for Canadian innovators.
Finally, we acknowledge that there is no silver bullet or one-size-fits-all solution to properly address the shortage of skilled labour. Instead, we are calling for a whole-of-government approach to build capacity and apply a skilled-talent lens to all economic policies and programs.
To conclude, with smart changes to existing strategies and the development of new measures where required, we can ensure that Canadian scale-ups have access to world-class talent and become leaders in the digital economy. Without this strong base of homegrown scale-ups, we will not be able to generate the economic growth and public wealth necessary to pay for the public services that Canadians depend on.
Thank you, and I look forward to your questions.