To close its productivity gap, Canada needs to rethink its higher education system
Economic Development Education GovernmentSummary
This Conversation article calls for a paradigm shift in developing Canada’s human capital to close its productivity gap. Canada is facing a widening productivity crisis, lagging behind the U.S. by 28% and ranking 18th in the Organization for Economic Co-operation and Development (OECD) countries, despite having one of the world’s most highly educated populations. The article argues that Canada’s current approach to developing human capital, which is heavily concentrated in traditional post‑secondary education, no longer meets economic needs. Although 63% of Canadians hold post‑secondary credentials, graduate underemployment is soaring, with degree holders outnumbering suitable jobs five to one. This mismatch reflects a system built for a single stage of life (young adults) rather than lifelong learning. Researchers behind The Productivity Project call for a shift to an open, flexible learning ecosystem that “unbundles” education and credentials, enabling workers to continually build competencies such as adaptability and literacy. The article contends that by embracing diverse learning pathways, Canada can better align talent development with economic demands and close its productivity gap.