Growth is anticipated to slow as economic growth picks up and unemployment falls
New York, NY (PRWEB) October 30, 2014
The Job Training and Career Counselling industry is countercyclical. The recession increased demand for industry services over the past five years. The unemployment rate spiked in 2009 and remained elevated throughout the current five-year period. As economic growth slowed and unemployment increased, more unemployed individuals sought the job training and career counselling services offered by industry operators. Additionally, federal and provincial governments provided stimulus funding for workforce development. According to IBISWorld Industry Analyst Dmitry Diment, “over the past five years, total government expenditure and investment grew, resulting in greater funding for industry operators.” As a result, IBISWorld expects industry revenue to grow in the five years to 2014. However, industry growth has begun to slow as the economy recovers in 2014.
Industry operators are primarily government-funded nonprofit organizations. In response to the recession, the 2009 Economic Action Plan (EAP) provided $8.4 billion in unemployment aid through 2011. The EAP included Labour Market Agreements with provincial governments, providing federally funded job training programs to unemployed individuals. Further legislative efforts include youth skill-development programs. Aside from stimulus funding, industry operators also benefit from the Canada Pension Plan's vocational rehabilitation programs. The pension plan funds vocational counselling, financial support training and job training aid to all individuals receiving disability aid. Vocational counselling programs provide steady demand for industry operators.
Industry growth is anticipated to slow over the next five years, as economic growth picks up and unemployment falls. “As businesses improve their bottom line, more companies are likely to hire workers and expand operations,” says Diment. Consequently, the national unemployment rate is projected to fall from 2014 to 2019, which will lower demand for job training and career counselling. Although the passage of the Canada Job Fund in 2014 is expected to preserve funding for workforce development services, the new agreement will likely reduce federal funding over the five-year period. As a result, IBISWorld projects that industry revenue will contract marginally in the five years to 2019.
For more information, visit IBISWorld’s Job Training and Career Counselling in Canada industry report page.
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IBISWorld industry Report Key Topics
The Job Training and Career Counselling industry provides job counselling and training to the unemployed, underemployed and/or disabled. Firms also provide services to people who have a job market disadvantage because of a lack of education, skills or experience. This industry includes work experience centres (sheltered workshops), where mentally or physically handicapped individuals gain work experience in a managed environment. The industry does not include vocational training in trade and technical schools.
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