taking stock: demographics, labour market and the importance of immigrants to ottawa’s economy

Taking Stock: Demographics, Labour Market and the Importance of Immigrants

to Ottawa’s Economy

October 2016

hireimmigrantsottawa.ca

Taking Stock

» Overview of Ottawa’s labour market– Labour force growth; Participation rates; Retirement age;

Employment growth; Unemployment; Job vacancies

» Immigrants in the labour force– Integration indicators: unemployment; skills utilization

» Employers’ role in immigrant integration– Remove barriers; adopt best practices, leverage diverse talent– The HIO initiative: Engaging Employers. Collaborating for

Change

How many people in Ottawa’s labour force?

• In 2015, the Ottawa-Gatineau Census Metropolitan Area (CMA) had a labour force of 760,100 people. 75% resided in the Ontario portion of the Metro area (567,000), and 25% in the Quebec portion (193,000).

• Steady growth: the number of people in Ottawa-Gatineau’s labour force grew by 100,000 or 15% between 2005 and 2015. On the Ontario side of the CMA, the labour force increased by 70,500 or 14%.

• Ottawa-Gatineau’s labour force is made up almost equally of men (52%) and women (48%).

• Among metropolitan areas in Canada, Ottawa-Gatineau has the 6th largest labour force, after Toronto, Montreal, Vancouver, Calgary and Edmonton.

Labour force participation ratesOttawa*, 2005-2015

» The labour force participation rate in Ottawa in 2015 was 68.7%. Although in line with the rates found in many other Canadian cities, it is for Ottawa, the lowest participation rate recorded over the past ten years.

» Statistics Canada projections show Canada’s participation could fall to between 59.7% and 62.6% in 2031, a level not observed since the 1970s.

*refers to the Ontario portion of the Ottawa-Gatineau Census Metropolitan Area

High participation rates among “core working-age”

Participation rates, males and females age 25-54, Ottawa*, 2005-2015

» Participation rates are high among “core working-age”. The participation rates of men and women are highest among those aged 25-54 (92.1% and 84.5%) – sometimes called the “core working-age” labour force.

» Since the 1970s, the increase in the number of women in the workforce has been the most significant factor driving up the overall participation rate. This trend is moderating as female participation rates approach those of similarly aged males.

» It is projected that 25- to 54-year-old female participation rates will climb to 89 per cent by 2035, just below those of males of the same age.


Labour force participation rates by age and sex, Ottawa*, 2005-2015

» Among youth aged 15-24, females have higher participation rates than males (65.4% vs. 60.2% in 2015)

» The participation rate of Ontario’s youth aged 15 to 24 has been trending down since the late 1980s, in part due to rising enrolment in postsecondary education (Ontario Ministry of Finance)


Labour force participation rates by age and sex, Ottawa*, 2005-2015

» Males aged 55-64 have a higher participation rate than women of the same age (68.6% vs. 55.1% in 2015). Rates for men and women have been relatively stable.

» The participation of men and women age 65 and over almost doubled between 2005 and 2015

» While the number of workers age 65+ is growing, it is expected to have a fairly modest impact on the overall labour force (Ontario Ministry of Finance).


Retirement age is increasingCanada, 2005-2015

» Males retiring from the private sector in 2015 were on average, age 64.4. Female retirees were somewhat younger at 63.7

» People retiring from the public sector in 2015 were, on average, 61 years of age, about 2-3 years younger than private sector retirees

» Average age at retirement has increased by about 2 to 3 years over the past decade

Age composition of the labour forceOttawa*, 2005 and 2015

» More older workers: In 2005, there were 62,000 people aged 55 or older in Ottawa’s labour force, representing 13% of the total. By 2015, the number of labour force participants aged 55 and over increased to 94,600, representing 17% or one-in-six workers


Employment growth positive but modestOttawa*, 2005-2015

» In Ottawa, the number of employed persons increased by 67,500 between 2005 and 2015. Full-time jobs increased by 51,700 or 14% and part-time jobs by 16,000 or 18%.

» In 2015, 80% of Ottawa’s

employed population worked full-time, and 20% part-time.

» In Canada overall, over 85 per cent of all jobs created from 2009 to 2014 were in full-time positions with more than two-thirds in high-wage industries (Dept. of Finance Canada).


Employment Growth by Occupational GroupOttawa*, 2005 to 2015

» Sales and Service occupations increased by 20,000 or 19.8% between 2005 and 2015, accounting for 30% of total employment growth

» Health occupations increased by 15,900 or 66.8% between 2005 and 20015

» Employment in Management occupations, and in Manufacturing and Utilities occupations was lower in 2015 than in 2005

Employment Growth by Occupational Group - Ottawa Total employment

2015 (000's)

Change in number 2005 to

2015 (000's)

Percent Change 2005 to

2015All occupations 531.1 67.5 14.6%Management 50.0 -5.8 -10.4%Business, finance and administration 102.0 11.2 12.3%Natural and applied sciences 71.6 8.2 12.9%Health occupations 39.7 15.9 66.8%Education, law, social, community & gov't services 76.9 11.5 17.6%Art, culture, recreation and sport 18.1 1.4 8.4%Sales and service 120.8 20.0 19.8%Trades, transport and equipment operators 43.0 7.4 20.8%Natural resources, agriculture 3.6 0.0 0.0%Manufacturing and utilities 5.4 -2.1 -28.0%Source: Statistics Canada, CANSIM table 282-0159


Employment Growth by Industry SectorOttawa*, 2005 to 2015

Employment Growth by Industry Sector - OttawaTotal

employment 2015 (000's)

Change in number 2005

to 2015 (000's)

Percent Change 2005

to 2015Total employed, all industries 531.1 67.5 15%Agriculture, Forestry, Mining, Utilities 2.4 -1.5 -38%Construction 31.8 10.7 51%Manufacturing 16.7 -13.6 -45%Wholesale and retail trade 66.9 7.2 12%Transportation and warehousing 15.3 2.5 20%Finance, insurance, real estate, rental 27.7 4.5 19%Professional, scientific and technical services 54.9 5 10%Business, building and other support services 25.3 4.3 20%Educational services 43.4 8.7 25%Health care and social assistance 67.3 22.5 50%Information, culture and recreation 25.7 3.9 18%Accommodation and food services 33.2 8.8 36%Other services (except public administration) 19.5 -2.7 -12%Public administration 101.1 7.3 8%Source: Statistics Canada, CANSIM table 282-0131


Among industry sectors, Health Care and Social Assistance led the way in employment growth, adding 22,500 jobs between 2005 and 2015

The manufacturing sector experienced a loss of 13,600 jobs between 2005 and 2015, a decline of 45%

Unemployment TrendsOttawa-Gatineau, 2005-2015

» The Ottawa-Gatineau CMA had an unemployment rate of 6.5% in 2015. It was lower in the Ontario portion of the CMA (6.3%) and higher in the Quebec portion (7.1%).

» The unemployment rate trended down between 2005 and 2008 when it hit a ten year low of 5.0%. Unemployed rose in 2009 following the financial crisis and has remained just over six per cent for several years

Unemployment Rate by age and sex, Ottawa*, 2015

» Unemployment rates are highest among youth aged 15-24, and in particular, young males. Persons aged 15 to 24 make up 38% of Ottawa’s unemployed population.

» Unemployment rates are lowest among persons aged 45 and over, and in particular, older women

» 37% of Ottawa’s unemployed population is aged 25-44, and 25% is aged 45 and over.


Job VacanciesOttawa*, Q12015-Q22016

» There were 13,875 job vacancies in Q2 2016. The average offered hourly wage was $18.40

» The job vacancy rate in Q2 2016 was 2.8%, compared to 2.5% in Q2 2015.

» In Q2 2016, 38% of vacancies were in Sales and Service Occupations, with an averaged offered wage of $12.45

» Natural and Applied Science occupations accounted for 10% of vacancies, with an offered hourly wage of $32.05


Characteristics of Vacant Jobsbased on Ontario Job Vacancies, Q2 2016

» 67% full-time» 61% required high-school diploma (26%) or no minimum level of education (35%)» 78% required no professional certification» 49% required less than one year experience, 12% five or more years» 51% vacant less than 30 days; 31% more than 30 days; 18% “constantly recruiting”» 70% permanent; 30% temporary» Most common recruitment strategies used for vacant positions:

– Online job boards 66% – Personal contacts, referrals, informal networks 58% – Company website 56% – Social media 36% – Job or recruitment fairs at schools, colleges or universities 19% – Government employment centre or website 18% – Posting a "help-wanted" sign on the storefront of the location 17% – Professional networking, headhunters or employment agency 15% – Newspaper ads 12%

Number of Immigrants ReceivedOttawa*, 2006 to 2015

» From 2006 to 2015, Ottawa received 62,595 immigrants, representing 2.4% of all immigrants coming to Canada, and 5.8% of all immigrants coming to Ontario

» 2015 marked a reversal of a four-year decline in the annual number of immigrants to Ottawa

» Highly skilled immigrants are essential to support the development of a knowledge-based economy. Immigration also helps foster Ontario’s international trade through commercial and cultural ties with countries of origin (Ontario Ministry of Finance).


Immigrants are highly educatedOttawa*, 2011

• 80% of recent immigrants aged 25-64 have completed post-secondary education, a higher proportion than the Canadian-born population.

• Immigrants make up 27% of Ottawa’s labour force with post-secondary education, 37% of the labour force with a Master’s degree, and 57% of the labour force with an earned Doctorate

• Immigrants make up 37% of the “STEM” workforce, and are most prevalent within Engineering and engineering technology (40%), followed by Mathematics and computer science (36%), Science (34%) and Technology (23%).


Immigrants’ skills underutilizedUnemployment rate, Canada, August 2016

Recent immigrants to Canada who are between the ages of 25 and 54 and who held a university degree had an unemployment rate of 12.5%, more than three times higher than their Canadian-born counterparts.

Unemployment rates by field of studyImmigrants compared to Canadian-bornOttawa*, 2011


Unemployment rates by Field of Post-secondary Study, Ottawa, 2011 NHSImmigrants by period of immigration

Can born 1971 to

1980 1981 to

1990 1991 to

2000 2001 to

2011 Education 3.1 1.9 3.4 1.5 14.3 Social and behavioural sciences and law 3.2 3.5 6.7 6.2 13.0 Business, management and public administration 3.4 2.7 5.6 6.3 11.2 Physical and life sciences and technologies 4.0 5.7 2.7 6.9 10.6 Mathematics, computer and information sciences 3.3 na 4.5 3.6 9.1 Architecture, engineering, and related technologies 3.9 4.4 3.4 4.8 7.7 Health and related fields 3.1 2.1 1.2 3.2 7.3Source: Stati stics Ca nada, Nati onal Household Survey, Cans im Table 99-012-X2011048.

Overqualification rates Immigrants compared to Canadian-bornOttawa*, 2011

Among employed Canadian-born men with a university degree, 9% worked in jobs requiring high school or less. Canadian-born women with a university degree had a slightly higher rate of over-qualification at 11%.

In comparison, recent immigrant men and women with a university degree had considerably higher rates of overqualification with 16% and 24% respectively.


Employment IncomeImmigrants and Canadian-born, Ottawa*, 2010

Incidence of employment income, showing average and median employment income, 2010, OttawaTotal

Number of people

% with employment

income

average employment

income (1)

median employment

income (1)Canadian-born 546,910 75 50,989 42,794$ Immigrant, Before 1981 59,160 54 56,870 44,923$ 1981 to 1990 32,215 77 51,701 41,900$ 1991 to 2000 52,025 75 46,441 36,682$ 2001 to 2005 23,390 72 40,467 31,034$ 2006 to 2009 19,355 66 31,368 22,403$ (1) only those with employment incomeSource: Prepared by Hire Immigrants Ottawa using CANSIM table 99-014-x2011034

Among Ottawa’s immigrants who arrived in Canada between 2006 and 2009, median earnings in 2010 was $22,403, which is $20,391 less than the median earnings of the Canadian-born

population.

RBC Economics puts the national earnings gap between immigrants and Canadian-born at more than $30 billion


Employers play a key role in successful integration of immigrants

» ”Employers are at the heart of successful immigrant labour market integration. When employers are empowered to take responsibility for successful immigrant integration within their workplaces and sectors, they can help create solutions that respond to their own changing needs for skilled workers, while creating positive employment outcomes that benefit Immigrants, the wider community, and the economy”.

– OECD Report, Employer Engagement to Enhance Skills Investment, OECD Skills Strategy Spotlight.

» “the degree to which Ontario can successfully integrate new arrivals into the province’s labour market and social fabric will have a significant effect on Ontario’s fiscal fortunes”.

– The report of the Commission on the Reform of Ontario's Public Services – the “Drummond Report”

Engaging Employers. Collaborating for ChangeAccomplishments of the HIO initiative, 2012-2015

» 33 organizations represented on the Employer Council of Champions, providing leadership on the integration of immigrants in the workplace

» sector-based Working Groups hosted12 coaching events, involving 86 employer coaches and 278 skilled immigrants, providing them with guidance and advice on job search strategies;

» 9 Collaborative Workshops, taking on a variety of subjects deemed critical for effective integration solutions, including assessing and interviewing skilled immigrants, conducting workforce surveys, strategies to embed inclusive practices, and changes to Canada’s immigration selection system;

» 46 cross-cultural professional development sessions to enhance the cross-cultural communication and management skills of 531 employer participants

http://www.hireimmigrantsottawa.ca/about-us/employer-council-of-champions/

http://www.hireimmigrantsottawa.ca/about-us/working-groups/


» 36 learners graduated from HIO’s enhanced cross-cultural training program, obtaining the skills to become facilitators of cross-cultural competency change within their own workplaces, further deepening the impacts of the program

» 4 professional networking events that brought together 104 employers and 140 skilled immigrants, providing opportunities for interaction, learning, and relationship building

» Support and consultation to local employers as they work to develop internal recruitment and retention practices; 118 employers are implementing systemic changes to their HR policies and working place practices.

» 455 skilled immigrants gained skills appropriate employment with participating HIO employers.


» Annual Employers SummitThis two-day event brings together over 200 civic leaders, senior executives and human resources professionals from business, government, not-for-profit organizations and immigrants in a program designed to inform, celebrate and inspire employer excellence in Ottawa.

Keynote speakers and expert panelists address a range of topics on systemic barriers and solutions to the effective integration of skilled immigrants in to the labour force.

» Summit themes:

2015: Skills to Jobs: Ottawa’s Human Capital Requirements in the Knowledge Economy

2014: Leveraging Immigrant Talent to Grow and Diversify Ottawa’s Economy

2013: Diversity Works! Energize, Engage, and Excel with Ottawa’s Global Talent

http://www.hireimmigrantsottawa.ca/events-training/2015-employers-summit/

http://www.hireimmigrantsottawa.ca/events-training/2014-employer-council-champions-summit-awards/

http://www.hireimmigrantsottawa.ca/2013-employer-council-of-champions-summit/


» Employer Excellence Awards

The HIO Employer Excellence Awards recognize employers for their outstanding and innovative recruitment, retention and engagement policies and practices around the integration of skilled immigrants into Ottawa workplaces.

2016 Award Winners: Export Development CanadaHydro OttawaOZ OpticsLe Centre préscolaire La Coccinelle d’Orléans

Hire Immigrants Ottawa (HIO) has helped hundreds of Ottawa employers improve their ability to recruit and integrate qualified, capable employees who have recently immigrated to Canada

Our programs and services are freeContact us:

[email protected]

Hireimmigrantsottawa.ca

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taking stock: demographics, labour market and the importance of immigrants to ottawa’s economy

Recruiting & HR