Special contribution from Paul Jenkins, Former Senior Deputy Governor, Bank of Canada and Magnet Advisory Board Member.

In the aftermath of the worldwide pandemic, many believe that the global economy, including Canada’s, is at an inflection point.

Perhaps top of mind is concern that the global economy is moving towards a non-cooperative equilibrium characterized by growing nationalism and distrust.

Coupled with this concern are several powerful forces transforming what the future of the global economy will look like.

The first of these transformations is the shift in the centre of global economic activity away from the post-Second World War focus on the West towards the developing world, especially Asia, driven by the rise of China.

The second critical transformation is the digital revolution. This has enormous implications for economic productivity, patterns of economic growth, the nature of work, supply chain configurations, and much more.

Two other decisive transformations with global reach are the need for a massive energy transformation and in biomedical life sciences.

What these digital, climate, and biomedical transformations have in common is that they are driven by technology. These technologies hold the potential to do enormous good, including the democratization of economic activities and behaviour. But they also come with potential significant risks associated with the adaptation to these technologies.

A prime candidate to benefit from these technologies is Canada’s labour market. The economics and dynamics of Canada’s labour market has always been complex. Post the global pandemic it has become even more so.

New skills are in demand across many sectors—energy, health care, security, and infrastructure, to name a few. Associated with these new demands comes the need for retraining members of our existing labour force. Issues of inclusiveness, diversity,  and equity are being tackled, but more is needed. There is a critical need for faster recognition and accreditation across professions and provincial borders. Secondary and post-secondary educational institutions need ways to stay close to the fast-changing opportunities in the job market. Immigration levels are on the rise and workplace dynamics are changing rapidly.

I recently had the opportunity to join the inaugural Advisory Board of Magnet, an initiative from Toronto Metropolitan University.

Magnet offers a unique value-proposition. Through publicly funded services, its platforms, among its many initiatives, support thousands of organizations in their role as employers, the reach of employment service providers and, of course, job seekers.  Its vision has been to harness technology in innovative ways to connect people and organizations, and to build bridges in bringing together Canada’s employment and training ecosystem.

In effect, Magnet provides a digital marketplace where labour supply and demand meet.

Moreover, this digital marketplace is a public good; in other words, one that is available to all Canadians, whether a small business enterprise, a graduating student, someone seeking retraining, or a local community non-profit organization—from coast to coast.

The potential gains are immense in terms of helping Canada benefit from the wave of technological innovations driving the transformation of the global economy, as well as in helping to manage the disruptions associated with the adaptation to these new technologies.

In an integrated network, job seekers and job providers can meet virtually. Just think of the cost savings at the micro level in terms of more efficient job searches, matching of jobs and skills, and seeking out retraining opportunities. Add to that the potential productivity gains at the macro level.

Viewed through an economic prism, the development of this integrated digital marketplace holds great potential to enhance Canada’s economic growth prospects. Essentially, it is providing a means to an end—contributing to the economic and financial well-being of all Canadians. 

Paul Jenkins served as Senior Deputy Governor of the Bank of Canada from April 2003 until his retirement in April 2010. In this capacity, he served as the Bank’s Chief Operating Officer and, along with the Governor, as a member of the Board of Directors of the Bank. As a member of the Bank’s Governing Council, he shared responsibility for decisions with respect to monetary policy and financial system stability, and for setting the strategic direction of the Bank.