In a recent speech that captured widespread attention, Carolyn Rogers, the Deputy Governor of the Bank of Canada highlighted how Canada finds itself confronting significant economic challenges. Rogers articulated concerns over the sluggish pace of economic growth and a decline in productivity, highlighting these as critical issues demanding urgent attention. Her call to action, “..it’s time to break the glass,.” signaled the imperative for decisive measures to reverse these troubling trends. 

Central to this concern are two pivotal indicators. First, Gross Domestic Product (GDP) growth and second, GDP per capita, both of which have exhibited worrisome stagnation in recent years. Despite concerted efforts to spur growth, these vital metrics have resisted improvement, presenting formidable challenges for policymakers and economists alike in their pursuit of sustainable economic expansion.

The consensus among prominent figures in public leadership is resoundingly clear: revitalizing economic growth is imperative for safeguarding Canada’s future prosperity and regaining its position among the world’s most competitive economies. While the exact reasons behind the current economic stagnation may be subject to debate, there is acknowledgment among experts and policymakers alike that Rogers’s concerns hold considerable validity. Many recognize that if left unaddressed, the current trajectory risks pushing the nation perilously closer to a death spiral where poor competitiveness further erodes confidence in the minds of investors. This shared recognition underscores the gravity of the situation and underscores the urgency with which action must be taken.

At the heart of sustainable economic growth lies the concept of productivity—a linchpin in maximizing the efficiency of resource utilization and driving overall prosperity. Productivity refers to how effectively inputs such as labor, capital, and technology are transformed into outputs—goods and services. Economists typically measure productivity by assessing the output generated per unit of input, thereby quantifying the effectiveness of production processes. Elevating productivity entails optimizing resource allocation, streamlining production processes, fostering innovation, and nurturing human capital.

Industries characterized by high productivity levels typically demonstrate superior efficiency in resource utilization, expedited innovation cycles, and elevated quality standards. Furthermore, heightened productivity enables firms to curtail production costs, enhance product differentiation, and expand market share—vital elements for sustained growth and resilience, amidst fierce competition. By enhancing productivity levels, nations can achieve higher output levels with fewer resources, thereby fueling economic growth, improving living standards, and bolstering global competitiveness

But how can we achieve this productivity dream?  -Carolyn Rogers has also pointed us towards the solution. Workforce training. Her speech highlighted the crucial role of worker training in improving Canada’s productivity. She emphasized the importance of providing access to training and reskilling programs for both existing and new workers. Rogers noted that enhancing labour composition—measuring the skill level of the workforce and the amount of training they receive—is essential for generating more value on the job. She stressed the need to ensure that immigrants’ skills are effectively utilized, as they represent a significant portion of Canada’s growing workforce.

Worker training is a cornerstone in overcoming Canada’s productivity challenges, and among the innovative solutions lies micro-credentials. These bite-sized certifications offer individuals a flexible and accessible pathway to acquiring job-relevant skills. Yet, their true value hinges on validation. Ensuring that micro-credentials align with industry standards and market demands is paramount. 

This is how the Micro Credential Council of Canada (MCCC) provides support by proactively engaging and proactively supporting both learners and industry in validating these credentials by bridging the knowledge between industry with the learner. 

Through this process MCCC provides current perspectives on what knowledge is needed for potential employees to obtain in order to be qualified to work.  Alongside traditional education and training avenues, leveraging micro-credentials provides a dynamic approach to addressing specific skill gaps efficiently.

Carolyn Rogers’s recent speech has shed light on Canada’s economic challenges, emphasizing the urgency of revitalizing growth and productivity. By addressing these challenges head-on, Canada can secure its position among the world’s most competitive economies and ensure future prosperity. 

As stakeholders prioritize initiatives supporting worker training and skills development, the creation of co-created, validated micro-credentials by MCCC and industry stakeholders emerges as a critical mechanism for ensuring Canada’s workforce remains adept and resilient amidst economic shifts.