Wage gaps are shrinking, but underemployment and skill mismatches persist

Photo: HOLLY LAY via FLICKR CC BY 2.0

A recent report entitled “The Bucks Stop Here: Trends in Income Inequality Between Generations,” cited alarming income disparities and outlined a potential future where these inter-generational inequalities would result in “social stability” and “economic growth” being “severely challenged.”

George Brown students should be interested because the instigators in this doomsday scenario are people between the ages of 25 and 29.

Despite the alarmist picture this report by the Conference Board of Canada (CBoC) paints for the future of this nation, Robert Luke, the vice-president of research and innovation at George Brown College, remains optimistic.

“There is some good news in this report,” said Luke, pointing out that the CBoC report discovered “increased labour market participation and a narrowing of the wage gap for women.”

He also notes that the report inferred that “the rise in average incomes does suggest that younger workers still have opportunities to advance.”

As for “underemployment” and “skills mismatches,” which the report names as the assumed causes of these disparities, Luke believes these problems are real and important to address.

According to the report, this mis-match in skills creates a workforce populated by bitter, frustrated employees, labouring at jobs which have little or nothing to do with the advanced, specialized degrees they hold.

Luke believes by having “a tight linkage to industry need in our (George Brown College) programs,” this scenario can be diffused.

Because of Luke’s role at the college, he believes that working closely with industry partners will benefit students. Graduates from the college will have an advantage in the job market due to the college’s focus on what he describes as “experiential learning” and “soft skills.’’

He defines experiential learning as providing the capacity to apply skills through courses, applied research projects and internships, and the end goal of this type of learning is to help students seeking employment, demonstrate what they have learned in their programs and how they have applied this learning to real world contexts.

Luke feels confident that focusing on these elements will help graduates show employers proof of the skills they have gained, and that this is part of the college’s commitment to helping students gain employment.

The CBoC, which defines itself as being “dedicated to building a better future for Canadians by making our economy and society more dynamic and competitive,” is in complete agreement with this, stating:

“The critical issue that emerges (from the findings of this report) is how to make sure that younger workers are able to put their knowledge and skills to use in ways that will drive their incomes up faster than we have seen over the past three decades.”

However, the current report outlines that a follow-up report is needed. This follow-up report will allow the CBoC to take one of their much-publicized “holistic” views of Canadian society, and allow this influential organization to debate the necessity of these “younger workers” to secure permanent, not precarious, employment. This will allow for them to “drive their incomes up” in a way that will matter over the long-term.