The Bedrock of Competitiveness: Assessing Canada's Higher Education Landscape

Education: The Cornerstone of National Progress and Power

Throughout history, the rise of superpowers has consistently followed a clear pattern of key milestones, figure 1. A pivotal starting point in this trajectory is marked by a profound commitment to education. This initial emphasis on education sets the stage for subsequent leaps in technological innovation, transforming academic achievements into the bedrock of military prowess and trade competitiveness. The orchestration of these elements then culminates in a flourishing economy, characterized by the highest Gross Domestic Product (GDP), active financial hubs, and the sought-after status of holding the world's reserve currency.

The connection among education, technological progress, and a nation's strength tells a convincing story that unfolds with notable consistency. Take the 17th century, the peak of the Dutch empire, for instance. Approximately 25% of the world's significant inventions during that era originated from the Dutch. Notably, they developed innovative ships capable of transporting both the Dutch army and goods to distant lands. Moving into the 18th century, the British introduced machine-based production and invented steam engine, established a commercial advantage that not only fueled economic growth but also fortified their military prowess. This historical context underscores how a nation's commitment to education and technological innovation can yield tangible benefits, propelling it to the forefront of global influence and competitiveness.

Achieving national progress in the 21st century is intricately tied to the development of a workforce with knowledge in Science, Technology, Engineering, Mathematics (STEM), Information and Communication Technology (ICT), and medical fields. This multilayered skill set not only drives innovation but also positions a country competitively in the global landscape.

The academic performance of a nation, particularly the trends in bachelor’s and master's programs within these crucial fields, serves as a barometer for forecasting its future. A robust educational system that consistently produces skilled professionals in STEM, ICT, and medical is indicative of a country's commitment to technological advancement, research, and development. This, in turn, lays the groundwork for sustained economic growth and societal progress.

In the following sections, we will examine Canada's preparedness for future challenges, focusing on engineering and ICT. This assessment will be conducted through two approaches: firstly, by evaluating the number of Canadians who have completed their bachelor's or master's degrees, and secondly, by comparing Canada's performance with other OECD nations in developing skills in STEM, ICT, and Medicine, specifically by comparing the proportions of STEM and ICT graduates among the total graduates during the year.

These dual measures aim to provide insights into Canada's readiness for the future, its potential to lead in innovative endeavors, and its capacity to enhance the efficiency of existing systems through technological advancements.

Canada’s Comparison with OECD Countries

Most OECD countries exhibit a trend where approximately 22%-24% of students pursue bachelor’s degrees or their equivalents in the STEM and ICT. Notably, smaller states such as Finland, Austria, and Estonia surpass larger nations in producing a higher percentage of STEM & ICT professionals.

While Canada maintains a position within the top 10 OECD countries, only 26% of bachelor’s students opt for STEM & ICT fields. An encouraging aspect is the leadership of Canadian women in this category, constituting 18%, which, although higher than OECDE women average, is notably lower compared to men at 38%.

Canadian men, however, score below the OECD men's average. This low representation in the male category raises concerns about the effectiveness of the Canadian education system as a contributor on the international stage, particularly considering the significant number of international students in Canadian universities. The 38% figure could further decrease if foreign students are excluded.

A notable issue across all OECD members is the substantial gap between male and female enrollment in STEM & ICT. Countries should initiate specialized programs to encourage greater female participation in science and technology. While Canada performs relatively better in this regard, there is still considerable work to be done. According to 2021 data, there is an 18% difference between male and female STEM & ICT bachelor's in Canada.

Figure 3 offers intriguing insights into educational trends in selected OECD countries. Notably, since 2018, the percentage of Canadian STEM & ICT students has increased by 5%, while the UK experienced a corresponding decrease of 5%. It's crucial to approach the interpretation of these figures with caution due to the influx of international students into Canada over the past few years. If we subtract the numbers related to foreign students, the results may differ significantly.

Since 2014 percentage of students opting for ICT is rising but enrollment in STEM & Natural Science is stagnant during last 5 years, figure 4. Another discouraging fact is gap between male and female students is almost constant during analyzed period.

Figure 4a, underscores the trend in educational choices between Canadian females and males at the bachelor’s level. A predominant pattern emerges where a significant number of females opt for Natural Science, Mathematics, and Statistics groups, while males display a higher inclination towards engineering. This divergence indicates a clear need for policy intervention to incentivize females to pursue disciplines in engineering and ICT. Encouraging greater female participation in these fields through targeted policies can contribute to a more balanced and diversified educational landscape.

Current & Potential Canadian Workforce

Canada has gained acclaim for its enduring immigration policy, crafted to attract highly qualified individuals, aimed at mitigating challenges tied to an aging population and declining birth rate by welcoming skilled professionals. Over the past decade, Canada has seen a substantial influx of international students and temporary workers (TFW). The Canadian population is comprised of three cohorts: Immigrants, TFW & Students, and Canadian-born individuals. An insightful approach to evaluating Canadian educational competitiveness involves comparing these groups.

Surprisingly, only 15% of Canadian-born individuals hold a bachelor's as their highest education, lagging behind immigrants, temporary workers, and international students by 7% and 12% points, respectively figure 5. Although precise data on the percentage of STEM & ICT graduates among Canadian-born individuals is unavailable, using OECD data as a guideline suggests an approximate 4% completion rate in STEM & ICT for this group, indicating room for improvement.

While the TFW/Students cohort boasts a higher percentage of bachelor's degrees, its relatively smaller absolute number, constituting only 3.77% of all bachelor's holders in Canada. Nevertheless TFW/students’ group is ideal for a rapid response to address the academic gap currently faced by Canada.

Figure 6 brings attention to educational distribution across different segments of Canadian society. Once more, Canadian-born individuals fall behind in master’s and other educational disciplines compared to immigrants, TFW/students. On average, TFW/students exhibit superior academic credentials, with master's degrees at 14% and bachelor's degrees at 27%, outperforming other groups in these academic streams. This suggests that these cohorts contribute significantly to the academic landscape, holding higher qualifications on average compared to their Canadian-born counterparts.

As depicted in the left panel of Figure 7, females are taking the lead in the Canadian educational landscape across all levels, particularly at the bachelors. This trend suggests that in the near future, Canadian males might possess a comparatively lesser skill set in STEM & ICT fields. It underscores the necessity for the government to institute specialized social programs to support the emerging influx of female skill labor force, facilitating a balance between social and professional responsibilities. The active participation of these females in the labor force becomes crucial, as a failure to do so could lead to a significant shortage of the skill set essential for Canada's progress. Addressing this gender imbalance is not only imperative for individual empowerment but also for ensuring a robust and diverse talent pool necessary for the nation's advancement.

The disparity between females and males in the age group of 25-34, highlighted in Figure 7 (right panel), is more pronounced compared to the overall age groups of female/male (Figure 7 left panel). This specific concern should alert policymakers to the potential consequences. In the medium to long term, a decline in the males educational status could result in missed opportunities for personal and professional growth, particularly in high-demand and high-paying fields. Moreover, it may contribute to the rise in low skill economy and loss of opportunities to other countries, such as Mexico, Brazil.

Addressing this gender gap is crucial not only for promoting educational equality but also for mitigating potential societal challenges associated with a diminishing educational status among males.

Role of Temporary Workers amp; International Students

The substantial increase in temporary workers and international students over the last decade has significantly impacted not only the Canadian economy but also the academic landscape. It is evident that, at present, temporary workers and students represent the most qualified segment of the Canadian labor force. Figure 8 further indicates that there is minimal educational disparity between males and females within this group.

This influx not only brings diverse skills and talents but also fosters cultural exchange and enriches the educational experience. However, to maximize the long-term benefits of this trend, it is essential to implement policies that facilitate the seamless integration of these individuals into the Canadian workforce and society.

Policy Suggestions

The existing state of education in Canada presents certain weaknesses. In light of our analysis of the Canadian academic profile, we recommend specific directions for policymakers to strengthen the educational landscape.

o?? Increase investments in early education to build a strong foundation for future academic success, with a focus on nurturing an interest in STEM and ICT disciplines from a young age.

o?? Introduce targeted initiatives to elevate the educational achievements of Canadian-born individuals, emphasizing Master's and higher education to reduce the disparity with immigrants, temporary workers, and international students.

o?? Launch awareness campaigns to challenge gender stereotypes and promote inclusivity in educational and career choices.

o?? Encourage collaborations between educational institutions and industries to ensure that curriculum aligns with the evolving demands of the job market.

o?? Establish scholarships specifically for women pursuing studies in Science, Technology, Engineering, and Mathematics (STEM) and Information & Communication Technologies (ICT) fields. This will encourage more women to enter these traditionally male-dominated disciplines.

o?? Implement financial support programs, such as grants and low-interest loans, targeted at female entrepreneurs looking to start or expand businesses. This can foster economic independence and innovation among women.

o?? Establish initiatives to encourage women to enter non-traditional trades and vocations. This can include apprenticeship programs, awareness campaigns, and financial incentives to break down barriers in male-dominated industries.

o?? Foster collaborations between the government, private sector, and educational institutions to ensure that academic programs align with the needs of industries, facilitating seamless transitions from education to employment.

o?? Provide incentives for companies to engage with educational institutions in offering on-the-job training and internship opportunities.

o?? Create pathways for the transition of temporary workers and international students into the Canadian workforce, recognizing their valuable skill sets and contribution.

o?? Implement targeted initiatives to identify and address the factors contributing to male dropout rates, providing additional support and resources to ensure educational continuity.

Appendix

Breakup of Canadians as per age and immigration status

Bachelor’s Degree trend in United States

Trade Skill Landscape in Canada