Across the OECD, policy makers are grappling with a critical question: how to create more and better-quality jobs? The recent financial crisis and economic downturn have had serious consequences across most OECD countries, with rising unemployment rates and jobs being lost across many sectors. Indeed, for some countries, the effects the downturn brought with it are continuing, if not amplifying. Shrinking public budgets in some countries also mean that policy makers must now do more with less. In this context, it is necessary to think laterally about how actions in one area, such as employment and training, can have simultaneous benefits in others, such as creating new jobs and better supporting labour market inclusion.

While the global recession placed significant pressure on the Canadian economy, the impact was mild compared to other OECD countries. That said, growth remains modest, and a number of groups, including the long-term unemployed, youth, women, disabled persons, immigrants and older workers, face a number of barriers to re-entering the labour market. Employment and training policies must continue to seek ways to activate these groups, while promoting economic growth and productivity.

The OECD Local Economic and Employment Development (LEED) programme has developed an international comparative project to assess the contribution of labour market policy to boosting quality employment and productivity. The project involves a series of country reviews, in Australia, Belgium (Flanders), Canada (Ontario and Quebec), Czech Republic, France, Ireland, Israel, Italy (Autonomous Province of Trento), Korea, Sweden, United Kingdom and the United States (California and Michigan). The key stages of each review are summarised in Box 1.

Canada found itself in an enviable position following the global financial crisis but growth remains fragile. The pace of job creation has slowed and unemployment remains stubbornly high in some provinces. Potential mismatches in the labour market may also be leading to the sub-optimal use of skills, which could have longer term implications for productivity.

This chapter provides an overview of Ontario’s employment and training system. Ontario is Canada’s largest province in terms of population and overall economic activity. Employment and training policies are managed by the Ministry of Training, Colleges and Universities. Employment services are delivered through Employment Ontario, which is a network of locally based outsourced service providers. The training system is highly developed and Ontario’s community colleges play a significant role in supporting local economic development through their responsiveness to employers.

This chapter provides an overview of Quebec’s employment and training system. Quebec is a significant contributor to Canada’s economic activity and the second largest province in the country. The Ministry of Employment and Social Solidarity (Ministère de l’Emploi et de la Solidarité sociale) is responsible for active labour market policies, which promote employment preparation and labour-market entry. The Ministry also plays a lead role in assisting individuals who are on social assistance.

To better understand the role of the local level in contributing to job creation and productivity, this study examines local activities in four case study areas across Ontario and Quebec: 1) Hamilton, Ontario; 2) Thunder Bay, Ontario; 3) Mauricie, Quebec; and 4) Estrie, Quebec.

This chapter highlights findings from the local job creation dashboard in Ontario and Quebec. The findings are discussed through the four thematic areas of the study: 1) better aligning policies and programmes to local employment development; 2) adding value through skills; 3) targeting policy to local employment sectors and investing in quality jobs; and 4) inclusion.

Stimulating job creation at the local level requires integrated actions across employment, training, and economic development portfolios. Co-ordinated placebased policies can help workers find suitable jobs, while also contributing to demand by stimulating productivity. This requires flexible policy management frameworks, information, and integrated partnerships which leverage the efforts of local stakeholders. This chapter outlines the key recommendations emerging from the review of local job creation policies in Canada, including Ontario and Quebec.