An Overview of the Canadian Labour Market ECO339Y Department of Economics University of Toronto 2006/2007
Table 1 Percentage of Selected Groups in Low Income, After Tax (92 LICOs Base), Canada 1980-2003 All Persons Persons 65+ Unattached Individuals 65+ Children < 18 1980 11.6 21.3 54.4 15.8 1981 11.6 21.0 49.7 16.4 1982 12.4 17.7 46.2 19.1 1983 14.0 19.3 48.5 19.8 1984 13.7 16.2 40.8 21.0 13.0 14.7 39.0 19.5 1986 12.1 13.5 34.6 17.6 1987 11.9 12.6 32.3 17.7 1988 10.8 13.0 31.7 16.1 1989 10.2 11.3 28.8 15.3 1990 11.8 10.8 28.1 17.8 1991 13.2 11.1 29.1 18.9 1992 13.3 9.8 25.9 19.2 1993 14.3 11.5 28.1 21.3 1994 13.7 8.6 22.3 19.5 1995 14.6 8.6 23.1 21.0 1996 15.7 9.8 25.4 21.1* 1997 15.3 9.1 22.0 20.0 1998 13.7 8.6 20.8 18.7 1999 13.0 7.8 21.0 18.0 2000 12.5 7.6 20.6 16.5 2001 11.2 6.7 18.1 2002 11.6 7.6 19.4 2003 11.5 6.8 17.7 Source: CANSIM database, except child poverty rates from Canadian Council on Social Development (* break in series).
Table 2: Recent Estimates of the Female/Male Compensation Ratio in Canada Earnings Based Source Year Raw Ratio Adjusted Ratio Data Source Baker et al. (1995) 1970 0.60 0.69 Census 1980 0.64 0.73 Census 0.66 0.73 Census 0.64 0.71 SCF 1990 0.67 0.71 SCF Gunderson (1998) 1970 0.63 0.74 Census 1980 0.67 0.76 Census 1990 Census 0.72 0.79 Wage Based Doiron and Riddell 1981 0.77 0.83 (1994) SWH 1984 0.76 0.83 SUM 1988 0.77 0.83 LMAS Drolet (2002a) 1997 0.80 0.89 SLID Drolet (2002b) 1999 0.80 0.92 WES Drolet (2004) 1981 0.78. SWH 1984 0.74 0.85 SUM 1989 0.76 0.85 LMAS 1997 0.81 0.86 LFS 2000 0.81. LFS 2003 LFS 0.82. Data Sources: Census~Canadian Census, SCF~Survey of Consumer Finances, SWH~Survey of Work History, SUM~Survey of Union Membership, LMAS~Labour Market Activity Survey, SLID~Survey of Labour and Income Dynamics, WES~Workplace and Employee Survey, LFS~Labour Force Survey. The raw ratio is the simple ratio of average female compensation to average male compensation. The adjusted ratio is from a Oaxaca decomposition of the the simple difference
in means. The explanatory variables included in the decomposition vary by study and include years of education, major field of study, years of potential (or actual) experience (or age), region, marital status, children, vocational training, language, immigrant status, province, hours worked, occupation and industry, union status, public sector employment, job tenure, age of youngest family member, part time status, firm size, urban size, work responsibilities, workplace characteristics. Sources: Baker, M, Benjamin, D., Desaulniers, A., and M. Grant. The Distribution of the Male/Female Earnings Differential: 1970-1990, Canadian Journal of Economics, 28, August 1995, 479-501. Doiron, D. and W.C. Riddell, The Impact of Unionization on Male-Female Earnings Differences in Canada, Journal of Human Resources, 1994, 29, 505-534. Drolet, M., New Evidence on Gender Pay Differentials: Does Measurement Matter?, Canadian Public Policy, 28, 2002a, 1-16 http://economics.ca/cgi/jab?journal=cpp&view=v28n1/cppv28n1p001.pdf Drolet, M., Can the Workplace Explain Canadian Gender Pay Differentials, Canadian Public Policy, 28, 2002b, S41-S63. http://economics.ca/cgi/jab?journal=cpp&view=v28s1/cppv28s1p041.pdf Drolet, M. Evidence on Gender Pay Differentials from 1981 2003, 2004. Gunderson, M., Women and the Canadian Labour Market: Transition Towards the Future, Statistics Canada: Census Monograph Series, 96-321, 1998.
Figure 1: Participation Rates by Sex and Age, Canada 1976-2004 100 90 80 70 60 50 40 30 20 10 0 1976 1977 1978 Notes: Source CANSIM database 1979 1980 1981 1982 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 M20-24 M25-44 M45-64 F20-24 F25-44 F45-64
Figure 2: Unemployment Rates by Sex and Age, Canada 1976-2004 25 20 15 10 5 0 1976 1977 1978 Notes: Source CANSIM database. 1979 1980 1981 1982 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 M20-24 M25-44 M45-64 F20-24 F25-44 F45-64
Figure 3: Real GDP Growth 1976-2004 0.07 0.06 0.05 0.04 0.03 0.02 0.01 0-0.01-0.02-0.03-0.04 1976 1977 1978 Notes: Source CANSIM database. 1979 1980 1981 1982 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Figure 4: Average Hours 1976-2004 40 39 38 37 36 35 34 Notes: Source CANSIM database. 1976 1977 1978 1979 1980 1981 1982 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 All Jobs Main Job
Figure 5: Average Wages Including Overtime (1992 $) 1983-2004 14.8 14.6 14.4 14.2 14 13.8 RW1 RW2 13.6 13.4 13.2 13 12.8 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Notes: Source CANSIM database. RW1 uses the 1980 industrial codes and RW2 uses the NAICS.
Figure 6: Canadian Average (Employment Weighted) Minimum Wage as Fraction of Average Wage 1983-2004 0.6 0.5 0.4 0.3 MW1 MW2 0.2 0.1 0 1983 1984 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Notes: Source HRDC and CANSIM database. MW1 uses the 1980 industrial codes and MW2 uses the NAICS.
Figure 7: Annual Immigration as a Percentage of Population 1955-2004 0.018 0.016 0.014 0.012 0.01 0.008 0.006 0.004 0.002 0 1955 1957 Notes: Source CANSIM database. 1959 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005
Figure 8: Regression Adjested Log weekly Wage Gap of Various Education Groups (relative to High School Graduates) for Male Full Time workers Reproduced from Recent Trends in Wage Inequality and the Wage Structure in Canada, Brahim Boudarbat, Thomas Lemieux, and W. Craig Riddell, University of British Columbia, September 2003
Figure 9: Regression Adjested Log weekly Wage Gap of Various Education Groups (relative to High School Graduates) for Female Full Time workers Reproduced from Recent Trends in Wage Inequality and the Wage Structure in Canada, Brahim Boudarbat, Thomas Lemieux, and W. Craig Riddell, University of British Columbia, September 2003