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Digitization and the Digital Divide: COVID-19 and Beyond

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Released:June 29, 2020

Project: Z - Skills for the Post-Pandemic World

The COVID-19 pandemic and economic crisis have upended the way we live, socialize, work and do business, with much activity moving from physical to digital spaces. Digitization in business and education – including online commerce, working from home, and learning – has allowed important activities to continue in the crisis, but also exposes disparities in access to technologies and digital skills. If digitization were merely a temporary phenomenon we might discount the challenges. But online life will be the norm for a while, whether in whole or part. The digital age has arrived and it has exposed long-standing skills gaps and inequities.   

 The Public Policy Forum, in partnership with the Diversity Institute and the Future Skills Centre, has asked Anjum Sultana and me to prepare a scoping report that examines fundamental changes in the social, economic, cultural and political landscape generated by the pandemic and economic crisis and identifies pressing issues on which additional research is needed.

Our research and thinking are guided by a commitment to understanding post-pandemic skills issues that will affect prospects for innovation, growth and prosperity, and have implications for our ability to achieve a more equitable and inclusive economy and society.     

Digitization in business, education, and social life is one of the key areas we are exploring. Even prior to the pandemic, many activities were taking on digital form, generating new skills needs – such as technical skills to create, implement and use technologies – and revealing many disparities in digital literacyopportunities to develop digital skills, and participation in technology work. These needs and disparities have been exposed and exacerbated by the pandemic as businesses and educators have sought scarce technical expertise to develop an online presence and activities, and students, consumers, and people generally have attempted to use digital technologies to learn, shop and socialize.  

Public and private sector actors have already signalled that some of the changes could be permanent. The Governments of Canada and Ontario recently announced a $57.6 million “Digital Main Street” program to help thousands of small businesses “create and enhance their online presence.” Additionally, the Digital Technology Supercluster – already expected to receive $153 million to support digital innovation – has allocated over $30 million for COVID-related digital infrastructure projects. These investments will surely have long-term implications for digitization more broadly.  

Similarly, the balance of in-person and online instruction in schools may be experiencing a longer-term shift. Although many of the online learning initiatives introduced as crisis response measures will eventually be scaled back, some are likely to continue. For example, high school students in Ontario will be expected to complete two of their courses online – a change that was announced prior to the pandemic.   

Skills Needs and Disparities

Canada has long struggled to ensure that there is sufficient technical talent to help organizations develop, implement and maintain digital technologies. As digitization trends in the economy and society accelerate, existing gaps will likely worsen which could affect not only innovation – the creation and commercialization of new technologies and digital processes – but business operations more broadly. We need to know just what technical skills are needed and whether our existing education, training and immigration systems are able to help people acquire and offer them.    

Skills to use digital technologies effectively and safely – in work, education and life generally – will also be needed. But digital skills, and opportunities to develop them, are unevenly distributed in Canada. A survey of Canadian youth conducted by Abacus Data for Actua, for example, found that while more than 9 in 10 young people across all income levels believe digital skills will be important to their future education and careers, students in lower-income households were much less likely than those from higher-income households to say that they have access to digital technologies and opportunities to develop digital skills. With education online – whether in part or whole – for the foreseeable future, these students will be at high risk of being left behind.    

Skills for Digitization Research and Action

These issues are only the tip of the iceberg. We know that digitization will have deep and long-lasting effects in the post-pandemic economy and society, but we have a limited understanding of just how deep and what the implications will be for the specific kinds and amount of digital skills needed. To ensure that a post-pandemic skills agenda can contribute to addressing digitization, we will need to fill substantial gaps in our knowledge: 

  • Exactly how much of our social and economic lives will be permanently, as opposed to temporarily, affected by digitization? How much digitization in business, education and social life is here to stay, and how much will it retreat once the pandemic is over?  
  • What specific skills will be needed to develop, implement, and maintain digital technologies? What is the state of those skills in the Canadian labour market? 
  • What specific skills will be needed to use and benefit from digital technologies? What is the state of those skills in the Canadian population? 
  • What skills will be needed among all people – especially children and older adults – to ensure that they can remain meaningfully and safely connected digitally to family, friends and their communities during the months and years of uncertainty ahead? What is the state of those skills in society?
  • What disparities exist and/or could emerge in the development and use of digital skills?    

Our current social and economic climate is characterized by profound uncertainty, but we expect that digitization – and its implications for innovation and inclusion – is largely here to stay.

To succeed and thrive in this new digital age, and to ensure that all people have opportunities to participate in and benefit from a digital economy and society, Canada will need a more digitally focused skills agenda.   

Anjum Sultana and Dan Munro are lead authors for the first phase of the Public Policy Forum’s project on Skills for the Post-Pandemic World, in partnership with the Diversity Institute, the Future Skills Centre, and with support from Microsoft. Over the summer, 2020, they will be researching and convening stakeholders to produce a scoping paper that will help guide future research on this topic.  

Thank you to the Skills for the Post-Pandemic World project Partners:

Reports

Supporting Entrepreneurship and SMEs: A Post-Pandemic Skills and Training Agenda

The impact of COVID-19 on small and medium-sized enterprises (SMEs) has been significant and severe. SMEs are the backbone of Canada’s economy, yet few have the resources to deal with the skills and labour shortages they face – shortages that the pandemic has only made worse. By combining preliminary data from an ongoing survey of SMEs, associated focus group discussions, and existing research, this report highlights opportunities to better support SMEs in the pandemic recovery and after. This includes a specific focus on embracing diversity and inclusion as a key way of addressing their skills needs.

The Mother of Invention: Skills for Innovation in the Post-Pandemic World

The COVID-19 pandemic has forced many workplaces to innovate rapidly in order to simply survive. But innovation is a critical component of our economic prosperity even during normal times. To be successful, Canada’s skills strategies must address skills for innovation across sectors — from solo entrepreneurs, to small and medium-sized businesses, to large corporations and even within government itself. While Canada has made significant efforts to foster a strong innovation economy, the pandemic has helped to reveal where these efforts have created strong foundations for success as well as areas where much remains to be done.

Innovation in Post-Secondary Education

Canada’s post-secondary institutions are well positioned for the future, thanks to innovative approaches and a willingness to use technological advances in education. COVID-19 has challenged these institutions, but they have showed adaptability under pressure by accelerating their adoption of innovations. However, some challenges predate the pandemic such as better inclusion of equity-seeking groups in higher education. Better funding models and greater flexibility can build greater resilience and agility into the system while addressing long-standing challenges and inequities.

Immigration and the Success of Canada’s Post-Pandemic Economy

Immigration is an important part of Canada’s economic growth – especially in terms of sustaining the labour market. And although Canada welcomes many immigrants on our shores, we aren't creating an employment environment where they can use their skills and credentials to their fullest potential. This fact has never been more clear, with immigrants disproportionately impacted by a decimated hospitality and service sectors due to recurring pandemic lockdowns. There are several steps Canada needs to take to fix this problem, and doing so will benefit not just immigrants but Canada's economy as well.

Building Inclusive Workplaces

A one-size-fits-all approach to pandemic recovery will not work. Programs tailored to the specific needs of specific groups will be important for a strong recovery, as will equitable access to critical supports, such as the infrastructure needed to overcome the digital divide. Businesses, governments and employees must all commit to reskilling — particularly when it comes to those from diverse groups who face barriers and bias — to develop an effective and inclusive skills and employment ecosystem that leaves no one behind.  

New Working Arrangements

The COVID-19 pandemic has resulted in a rapid rise in the number of Canadians who are teleworking. While for many the transition has been positive, and a significant number of workers and employers indicate an interest in continuing teleworking arrangements post-pandemic, there are inequalities in access and ability to telework. As teleworking will likely continue for many workers post-pandemic, taking steps to resolve these inequalities will be an important part of Canada’s economic recovery, as will ensuring that all Canadians are able to access the skills and training they need to succeed in this new working arrangement.

Digital Infrastructure for the Post-Pandemic World

The emergence of COVID-19 forced a shift away from workplaces and schools to online working and learning, but this digital transformation has not been evenly experienced by all Canadians. This report examines the key components of Canada's essential digital infrastructure system, highlights worrying inequalities that exist within this system, and offers recommendations on how to quickly reduce some of the most glaring obstacles that prevent many of those who would benefit the most from accessing training, education and employment opportunities digitally from doing so.

Job Polarization in Canada

Job polarization is one of several trends — including automation, offshoring and the growing importance of the gig-economy — that were already of general interest prior to the onset of the pandemic, but which have been pushed even further into the centre of public policy discussions by the arrival of COVID-19. As Canadian policymakers consider how to build back the economy after the pandemic, addressing the problems created by job polarization needs to figure prominently in their priorities.

Skills for the Post-Pandemic World

How can we transform Canada’s skills policy landscape to address new trends in how we live, work, learn and socialize in the post-pandemic world? Developed in partnership with Diversity Institute and the Future Skills Centre, and supported by Microsoft, this Scoping Report represents the first phase of a new project designed to tackle these questions. In this initial scoping report, we take stock, outline the key skills issues created and exacerbated by the pandemic, and identify eight areas for research that will be explored in depth in Phase 2 of the project.

Articles

Remote Work – The Good, The Bad and The Unjust

According to Statistics Canada, nearly 5 million workers shifted to remote work by the end of March 2020. In her first blog post for the Skills for the Post-Pandemic World project, Anjum Sultana discusses what the 'new normal' looks like for her and many workers like her all across the country, and explores the challenges that organizations, individuals, and policy-makers face with the work-from-home transition.

Events

About the Author

Dr. Daniel Munro is Senior Fellow and Director of Policy Projects in the Innovation Policy Lab at the Munk School of Global Affairs & Public Policy at the University of Toronto. He is also Research Fellow and Advisor at the Brookfield Institute for Innovation and Entrepreneurship, and Researcher in  Residence at Actua. His research interests include innovation policy, skills and education policy, distributive justice, and applied ethics, including the ethics of innovation, and new and emerging technologies.