It is critical to confront what will happen to the Canadian economy and society if governments fail to act on skill shortages. Jobs will continue to move offshore to equally skilled but cheaper markets. Employment levels, wage levels, benefit levels and tax revenue will fall. The level of wage and income inequality will rise sharply as high skilled individuals capture the benefits of their higher productivity in the knowledge economy.
Read Scott’s full blog post here: Want employment and wage growth? It’s skills stupid! | Broadbent Institute
Very convincing argument backed up with solid research. The importance ofskills is equally relevant to middle- and low-income countries, including on reducing poverty and promoting innovation to overcome middle-income trap.