Human capital: a key driver of Quebec's economy
- Quebec's economy has grown by 23.17% since 1980.
- Consisting of 26 variables and four thematic groups, the Index provides an in-depth analysis of Quebec's economy, including its strengths and weaknesses.
- The Index is based on 36 years of data.
- The underlying methodology was developed by a group of Quebec economic experts.
MONTREAL, June 13, 2018 /CNW/ - The new edition of the Quebec Economic Health Index presents a number of convincing findings regarding human capital and the provincial labour shortage. How is Quebec's economy faring? What about the provincial labour force? What issues are we facing? How are they affecting our decision-making? How can we embrace automation as we make the transition to a service-based economy? In answering these questions, PwC Canada updated its one-of-a-kind Quebec Economic Health Index, which provides a broad-based and reflective means of analysis.
Quebec's economy is in good shape. The Index indicates growth of 23.17% between 1980 and 2016, i.e. a period of 36 years that includes two recessions.
Human capital: a renewable energy source?
"This year, we analyzed the variables that contributed the most to the growth and health of Quebec's economy. Human capital is identified as the key economic driver, as well as a source of strength that needs to be renewed. The post-secondary graduation rate and immigrants' employment rate are at the root of the Quebec economy's current health and growth rate. At the same time, the ratio of the working-age population to the total population, which is aging, is making a significantly negative contribution," said Sonia Boisvert, partner at PwC Canada.
More recently (2010-2016), the aging population is one variable that has caused the provincial economy to sputter. The labour force participation rate for 45-to-64 year-olds and the post-secondary graduation rate were the twin drivers of Quebec's economy. Both of these variables will be affected by the digital transition. In recent years, a number of high-value-added sectors have flourished in Quebec, marking the transition to a service-based economy. During the ongoing digital transition, this variable will warrant scrutiny as it will serve as an indicator of the strength of this transition in Quebec.
Access to education (including more democratic access), in addition to education quality and performance, are the variables underlying the Human Capital thematic group. They will have to be monitored with a view to maintaining human capital as Quebec's key economic driver.
"Education is undeniably a key variable for economic development. That means that the chances for success should be the same for all of us, regardless of our geographic location or our economic or social position. This is one reality highlighted by the Index this year. Considering the various transformations, including digital, underway at the corporate level, we need to maintain an agile workforce that can adapt to organizational changes since the future will be about value-added jobs," said Alain Robichaud, a consultant with PwC Canada's Consulting group.
Main findings for 2018
The Quebec Economic Health Index shows a pattern of economic vigour for the past 36 years. The three variables that have contributed most (nearly 60%) to the Quebec economy's increased strength are:
- GDP/working age population (15 to 64 years old).
- Post-secondary graduation rate (total population).
- Fixed capital stock per capital (infrastructure).
Investment and human capital have been Quebec's key economic drivers for the past 36 years.
However, Quebec's economic health has faltered somewhat since 2010. In this regard, the key variables are:
- Aging population.
- Capital intensity.
- Investments in information and communication technologies (ICT) (% of GDP).
About the Quebec Economic Health Index
Consisting of 26 variables divided into four thematic groups (Industrial Demographics, Investment, Growth and Human Capital), the Quebec Economic Health Index provides a broad-based view that captures trends affecting the strength of the provincial economy.
The Index applies the same methodology used by leading economic institutions across Canada. It was developed by a PwC Canada team in collaboration with an expert specializing in Quebec's economy and a committee of economic experts.
About PwC Canada
At PwC, our purpose is to build trust in society and solve important problems. More than 6,700 partners and staff in offices across the country are committed to delivering quality in assurance, tax, consulting and deals services. PwC Canada is a member of the PwC network of firms with more than 236,235 people in 158 countries. Find out more by visiting us at www.pwc.com/ca.
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SOURCE PwC (PricewaterhouseCoopers)
For further information: Claudia Landry, Public Relations Specialist, PwC Canada, (514) 205-5261, [email protected]