Chrystia Freeland Deputy Prime Minister and Minister of Finance speaks at the Toronto Global Forum in Toronto on Wednesday, November 10, 2021. THE CANADIAN PRESS/Nathan Denette

OTTAWA - Finance Minister Chrystia Freeland says the federal government is well positioned to help resolve mismatches between the skills of jobseekers and what employers are looking for in hiring plans.

Although the country has recovered the three million jobs lost at the onset of the pandemic last year, the ranks of Canada's long-term unemployed remain well above pre-pandemic levels. Many people, particularly women, have dropped out of the labour force altogether.

At the same time, businesses have been reporting labour shortages as more restrictions on high-contact businesses are rolled back.

Speaking to a conference in Toronto on Wednesday, Freeland said the government can help by building training programs so that those looking for work have the skills employers want in today's economy.

Freeland also suggested the government can do more to help young people cover the cost of their education, although she didn't provide details on what the help could look like.

"But there is a lot more that we can do, to be sure," she said, before adding a moment later: "I think the government can really help close that mismatch between jobs and the skills that people have."

The latest jobs data from Statistics Canada showed that the national unemployment rate fell to 6.7 per cent in October as 31,000 jobs were created in the month, bringing the rate to a pandemic-era low.

Economists expect job creation to become increasingly difficult, which could slow efforts to fill more than 800,000 job vacancies across the country.

That is why Behnoush Amery, senior economist with the Labour Market Information Council, said the possibility of labour shortages will be one of the central questions facing the Canadian labour market.

In her talk at the Toronto Global Forum, Freeland said her government's efforts to craft a national child-care system should also help with labour market efforts, as well as affordability concerns for parents.

She also spoke about the need to expand the supply of housing to help with concerns about runaway costs for buyers, and spending in areas like public transit and trade corridors.

"We have to be quite disciplined about thinking about where does the government need to do more," Freeland said, "and top of my list is more on housing, more on ensuring we have the supply of housing Canadians need."

Still, the finance minister said she believes there are areas of the economy where the government needs to get out of the way and let the private sector take the lead on driving growth. Freeland said it will be important for the government to be clear about which areas it is uniquely positioned to invest and improve the lives of Canadians and drive growth.

This report by The Canadian Press was first published Nov. 10, 2021.

News from © The Canadian Press, 2021