Chapter 1: Labour market context

In this section

• 1.2.1 Canada’s regional labour markets
• 1.2.2 Interprovincial mobility trends

The size of Canada’s labour force^{Footnote 12} grew to 19.9 million in FY1819, up from 19.7 million in the previous fiscal year (+207,600 or +1.1%).^{Footnote 13} All provinces during this period experienced positive change in the size of their labour force except Newfoundland and Labrador, where the labour force shrank by 0.2%.^{Footnote 14} The most prominent increase in the size of labour force was observed in Ontario (+1.8%), followed by Prince Edward Island (+1.7%), Manitoba (+1.3%) and British Columbia (+1.1%). Growth in the remaining provinces were relatively modest.

In the reporting fiscal year, there were 18.7 million employed persons in Canada, up from 18.5 million in FY1718 (+1.4%). The growth in employment weakened slightly in FY1819 compared to the one observed in FY1718 (+1.8%), attributable to the slow down in growth of full-time employment (+1.7% growth in FY1819 compared with +2.2% growth in FY1718)—see Annex 1.2 for key labour market statistics in the past 5 years. Canada ranked third among G7 nations in terms of employment growth in the reporting fiscal year, behind Japan (+1.7%) and United States (+1.5%). During this period, growth in part-time employment in Canada remained relatively unchanged (+0.3% growth in FY1819 compared with +0.4% growth in FY1718). By class of worker,^{Footnote 15} job creation in terms of the number of employees in FY1819 was higher in the public sector (+1.7%) compared to the private sector (+1.4%), while the number of self-employed person in Canada had a moderate increase during this period (+0.9%).^{Footnote 16}

By enterprise size,^{Footnote 17} small-medium-sized and large-sized firms had similar employment growth in FY1819 (+2.1% and +2.7%, respectively), while it was higher in medium-large-sized firms (+3.7%).^{Footnote 18} Small-sized firms, on the other hand, had the lowest employment growth in FY1819 (+0.6%) compared to the previous fiscal year. Both small-sized and small-medium-sized firms accounted for around one-fifth (19.6%) of the total number of employees while medium-large-sized firms had the lowest share (15.5%) in FY1819. Large-sized firms continued to have the highest share of all employees in Canada (45.3%), relatively unchanged over recent years.

The employment rate,^{Footnote 19} which can be used as a measure of the extent to which available labour resources are being utilized, was 61.7% in FY1819—relatively unchanged in the past 10 fiscal years. Historically, the employment rate for men has been higher than that for women—in the reporting fiscal year, the employment rate for men was 65.4%, compared to 58.0% for women. By age groups, the employment rate was the highest for core-aged workers (aged 25 to 54) at 82.9%, and the lowest (35.9%) for older workers (aged 55 and over). Notably, the employment rate for older workers has been rising steadily over the past 2 decades, from 23.2% in FY9899 to 35.9% in FY1718 and FY1819. Educational attainment also plays an important role in employability—in FY1819, individuals with an education level above the bachelor’s degree had an employment rate of 74.0%, whereas those with primary education or lower^{Footnote 20} had an employment rate of 20.0%. This contrast in employment rates can be explained by the over-representation of older individuals among people with lower educational attainment—in FY1819, the employment rate for older individuals with primary education or lower was 11.7%, compared to 50.9% for core-aged individuals with the same educational level. Similarly, core-aged workers are over-represented among people with education level above bachelor’s degree—the employment rate for core-aged individuals in this case was 87.3% in FY1819, compared to 48.2% for older individuals. Another metric used to estimate labour market conditions is the participation rate, which measures the total labour force relative to the size of the working-age population.^{Footnote 21} The overall participation rate in FY1819 in Canada was 65.5%, relatively unchanged from the rate observed in the previous fiscal year (65.7%). The participation rate has been on a downward trend particularly over the past decade—down from 67.5% in FY0809—indicative of an aging population.^{Footnote 22} The participation rate for men has been historically higher than that for women; however, this gap has been shrinking over the past 4 decades, especially among core-aged and older individuals (see Chart 3). The increase in participation rate is particularly evident for core-aged women (from 52.7% in FY7677 to 83.5% in FY1819), while for older women it almost doubled over this period (from 17.6% in FY7677 to 32.8% in FY1819).

Chart 3 – Text description

Fiscal year	15 years and over- both sexes	25 to 54 years - men	55 years and over - men	25 to 54 years – women	55 years and over - women
FY7677	61.6	94.4	46.8	52.7	17.6
FY7778	62.0	94.3	45.9	54.2	17.3
FY7879	63.1	94.7	45.8	56.9	17.4
FY7980	63.9	94.6	45.4	58.4	18.0
FY8081	64.4	94.5	44.7	60.5	17.5
FY8182	65.0	94.4	44.1	63.0	17.6
FY8283	64.4	93.5	43.3	63.7	17.7
FY8384	64.8	93.4	42.7	65.5	17.4
FY8485	65.2	93.4	41.8	67.3	17.3
FY8586	65.8	93.5	40.9	69.2	17.5
FY8687	66.2	93.6	39.5	70.5	16.7
FY8788	66.6	93.8	38.4	71.9	17.3
FY8889	67.0	93.4	38.0	73.5	17.1
FY8990	67.2	93.4	37.3	74.7	16.7
FY9091	67.1	93.1	36.3	75.6	16.8
FY9192	66.3	92.1	35.3	75.8	16.6
FY9293	65.6	91.4	34.4	75.2	16.7
FY9394	65.3	91.3	33.4	75.6	16.7
FY9495	65.2	91.2	33.4	75.6	17.0
FY9596	64.7	90.9	32.1	75.6	16.6
FY9697	64.7	90.8	32.2	76.2	16.7
FY9798	64.9	91.0	32.8	77.1	17.2
FY9899	65.3	91.1	32.7	77.7	17.9
FY9900	65.6	91.1	33.4	78.3	18.3
FY0001	65.9	91.1	33.3	78.6	19.1
FY0102	66.1	91.1	34.1	79.3	19.8
FY0203	67.1	91.6	36.3	80.6	21.6
FY0304	67.6	91.6	38.0	81.4	23.6
FY0405	67.4	91.6	38.5	81.5	24.3
FY0506	67.1	91.4	39.2	81.0	25.2
FY0607	67.2	91.1	39.3	81.6	26.4
FY0708	67.5	91.2	40.3	82.0	27.7
FY0809	67.5	91.4	40.7	82.0	28.6
FY0910	67.0	90.6	41.6	82.3	29.4
FY1011	66.9	90.7	42.4	82.2	30.4
FY1112	66.6	90.6	42.5	82.1	30.7
FY1213	66.6	90.9	42.7	82.6	31.4
FY1314	66.4	90.7	43.2	82.6	31.9
FY1415	65.9	90.5	43.1	81.9	31.6
FY1516	65.9	91.0	43.7	82.1	31.8
FY1617	65.7	90.9	43.5	82.4	32.5
FY1718	65.7	91.0	43.4	82.8	32.9
FY1819	65.5	90.9	43.3	83.5	32.8

• Note: Shaded areas correspond to recessionary periods in Canada’s economy.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0017-01.

On average, there were 47,000 fewer (-3.9%) unemployed individuals (aged 15 years and over) in Canada in FY1819 compared to the previous fiscal year. This decline in the number of unemployed persons was for the third consecutive year—translating into the lowest level of unemployment rate (5.8%) observed since FY7677 (see Chart 4). Among G7 countries, Canada’s unemployment rate was the third highest in FY1819, behind France and Italy.^{Footnote 23, Footnote 24} By age groups, the unemployment rate among younger individuals (aged 15 to 24) was the highest (11.0%) in FY1819, while the lowest (4.2%) was among seniors (aged 65 and over)—lower than the unemployment rate among core-aged workers (4.9%) and older workers aged 55 and over (5.2%). As illustrated in Chart 4, the overall unemployment rate, as well as the unemployment rate for the youth (aged 15 to 24) and core-aged workers (aged 25 to 54) reached its lowest mark in 42 years in FY1819. In terms of the eligibility for EI regular benefits, a lower unemployment rate translates into a higher required number of hours of insurable employment within the qualifying period—which is one of the core eligibility requirements (see section 2.2 for details on eligibility for EI regular benefits). Regional variations of the unemployment rate are discussed in detail in subsection 1.2.1.

Chart 4 – Text description

Fiscal year	15 years and over	15 to 24 years	25 to 54 years	55 years and over	65 years and over
FY7677	7.3	12.7	5.5	4.0	1.9
FY7778	8.2	14.1	6.2	4.9	2.2
FY7879	8.3	13.9	6.3	5.0	2.0
FY7980	7.4	12.5	5.7	4.4	2.1
FY8081	7.5	12.8	5.7	4.2	1.9
FY8182	8.0	13.6	6.3	4.5	2.1
FY8283	12.0	19.5	9.8	7.2	2.7
FY8384	11.7	18.7	9.7	7.3	2.1
FY8485	11.2	17.0	9.7	7.6	2.1
FY8586	10.3	15.7	8.8	7.4	2.2
FY8687	9.5	14.4	8.3	6.8	2.6
FY8788	8.4	12.5	7.4	6.4	2.6
FY8889	7.7	11.4	6.9	5.7	1.9
FY8990	7.6	11.1	6.8	5.7	1.9
FY9091	8.8	13.5	7.9	6.0	1.7
FY9192	10.4	16.0	9.4	7.8	4.7
FY9293	11.3	17.3	10.2	8.8	5.2
FY9394	11.4	17.2	10.2	9.4	5.4
FY9495	10.0	15.3	9.1	8.2	4.4
FY9596	9.5	15.0	8.5	7.4	4.0
FY9697	9.6	15.6	8.5	7.3	3.9
FY9798	8.9	16.2	7.6	6.7	2.8
FY9899	8.1	14.8	6.9	6.2	3.0
FY9900	7.3	13.7	6.2	5.1	2.6
FY0001	6.9	12.6	5.8	5.2	2.6
FY0102	7.5	13.2	6.4	5.7	3.6
FY0203	7.5	13.4	6.4	5.9	3.2
FY0304	7.6	13.8	6.4	5.8	3.3
FY0405	7.1	13.1	6.0	5.4	3.2
FY0506	6.6	12.2	5.6	5.1	3.6
FY0607	6.3	11.5	5.2	5.1	4.5
FY0708	6.0	11.2	5.0	4.8	3.3
FY0809	6.6	12.4	5.5	5.4	3.1
FY0910	8.5	15.6	7.2	6.6	4.7
FY1011	7.9	14.6	6.7	6.4	5.1
FY1112	7.5	14.3	6.2	6.2	4.5
FY1213	7.2	14.3	6.0	5.9	4.6
FY1314	7.0	13.7	5.8	6.0	4.1
FY1415	6.9	13.3	5.7	5.7	4.3
FY1516	7.0	13.2	6.0	5.9	4.7
FY1617	6.9	13.0	5.8	6.0	4.7
FY1718	6.1	11.2	5.2	5.5	5.0
FY1819	5.8	11.0	4.9	5.2	4.2

• Note: Shaded areas correspond to recessionary periods in Canada’s economy.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0017-01.

The number of job vacancies (unoccupied positions for which employers are actively seeking workers) increased substantially in FY1819 (+15.7%) compared to the previous fiscal year, reaching 537,800 vacant positions, up from 464,600 vacant positions in FY1718.^{Footnote 25} Of the total number of vacant positions in the reporting fiscal year, a little less than three-quarters (72.5% or 389,600 positions) were for full-time jobs. Close to two-thirds (62.5%) of the total vacant jobs required high school diploma or less. On that same note, the job vacancy rate (the number of job vacancies expressed as a percentage of all occupied and vacant jobs) rose to 3.3% during the reporting period, up from 2.9% observed in the previous fiscal year (+0.4 percentage points). The highest job vacancy rate in FY1819 was in the Agriculture, forestry, fishing and hunting industry (6.0%), while the lowest was in the Educational services industry (1.1%). Notably, the job vacancy rate rose in all industries in FY1819 compared to the FY1718, except for the Mining, oil and gas extraction industry and the Finance and insurance industry where the job vacancy rate remained unchanged from the previous fiscal year.^{Footnote 26} The duration of job vacancies also continued to rise in FY1819, for the second year in a row, which suggests that it took more time for employers to fill their vacant positions in FY1819 compared to the previous fiscal year. The proportion of positions that were vacant for a longer period of time (3 months or more) increased by 0.8 percentage points in FY1819 compared to FY1718, reaching 12.3% of all vacant positions. The growing proportion of vacant positions with longer durations, along with the increased job vacancy rate, points to stronger labour demand that has continued in the reporting period from the past year.

Labour market condition of Indigenous peoples and persons with disability

While this chapter outlines the overall labour market conditions in Canada, it is also important to focus on the specific segments of the population who may be vulnerable. Two such population groups are Indigenous peoples^{Footnote 27} and persons with some degree of disability.^{Footnote 28}

• Note: Non-Indigenous population includes individuals who identified themselves as not belonging to any of the following groups: North American Indian, Inuit or Métis; and excludes those who did not respond to this survey question. Estimates presented in this subsection exclude persons living on reserves.
• Source: ESDC calculations using Statistics Canada, Labour Force Survey master files, April 2018 to March 2019.

An estimated 1 in 5 Canadians (22% or 6.2 million) aged 15 and over had one or more disabilities in 2017.^{Footnote 29} Persons with disabilities remain less likely to be employed than those without disabilities,^{Footnote 30} both in Canada and other parts of the world.^{Footnote 31} Based on the Canadian Survey on Disability in 2017, almost 3 in 5 (59%) persons with disabilities were employed compared to 4 in 5 (80%) without disabilities among those aged 25 to 64 years. It was also found that the employment rate was even lower for persons with more severe disabilities—ranging from 76% among those with mild disabilities to 31% among those with very severe disabilities.^{Footnote 32}

1.2.1 Canada’s regional labour markets

Canada’s continued strong labour market performance in FY1819 was evident in all provinces and territories, as all of them had a positive growth in employment from the previous fiscal year. Employment growth was at or above the national level in Newfoundland and Labrador, Prince Edward Island, Nova Scotia, Ontario, Alberta, British Columbia and Nunavut. The participation rate, on the other hand, remained relatively unchanged in most provinces and territories, except Yukon and Nunavut, where it decreased slightly in FY1819 compared to the previous fiscal year (-1.6 and -1.1 percentage points, respectively)—see Annex 1.4 and Annex 1.5 for information on employment and participation rates by provinces and territories in the past 5 years. Together, as discussed earlier, an increase in the level of employment, with unchanged or a decline in the participation rate, is indicative of an aging population in the provinces and territories. In terms of the number of job vacancies, as outlined in Table 2, all provinces and territories except Saskatchewan had an increase in FY1819 on a year-over-year basis. The job vacancy rate, however, was higher in all provinces and territories in FY1819 compared to the rate observed in the previous year, indicating a higher demand for labour in each of the provinces and territories.

• Note: Figures for Canada’s participation rate and employment exclude the territories, while figures for job vacancies and job vacancy rate include all provinces and territories. Percentage change is based on unrounded numbers.
• Sources: Statistics Canada; Labour Force Survey, Table 14-10-0287-01 and 14-10-0292-01 (for data on participation rates and employment) and Job Vacancy and Wage Survey, Table 14-10-0325-01(for data on job vacancies).

Table 3 outlines the unemployment rate and duration of unemployment in the provinces and territories in the reporting fiscal year and the previous fiscal year. The unemployment rate decreased notably in all provinces and territories except Manitoba and Northwest Territories, led by Newfoundland and Labrador (-1.7 percentage points) and Nova Scotia (-1.1 percentage points). Among the provinces, British Columbia continued to record the lowest unemployment rate (4.7%) for the third consecutive year in FY1819, while Quebec and Ontario had unemployment rates below the national average for the second consecutive year. The Atlantic provinces continued to post unemployment rates well above the national average, led by Newfoundland and Labrador (13.0%). Among the territories, Yukon had the lowest unemployment rate (3.2%), lower than the national average and significantly lower than Northwest Territories (7.3%) and Nunavut (14.2%).^{Footnote 33}

In FY1819, the average duration of an unemployment spell in Canada was 18.1 weeks, down from 19.1 weeks observed in FY1718 (-1.0 week). The variation in the unemployment duration was mixed among the provinces, suggesting contrasting labour market developments in the reporting period. Among the provinces, the highest unemployment duration was in Alberta (21.9 weeks), despite a decline of 0.8 weeks from the record level observed in that province in the previous fiscal year. On the other hand, the lowest level of unemployment duration was observed in Prince Edward Island (14.2 weeks).

• Note: The unemployment rates and the average unemployment spell durations shown for Canada exclude the territories.
• Sources: Statistics Canada, Labour Force Survey, Table 14-10-0287-01, 14-10-0292-01 and 14-10-0056-01.

1.2.2 Interprovincial mobility trends

A substantial number of people in Canada relocate across provincial and territorial borders each year. Between July 1, 2018 and June 30, 2019, an estimated 290,500 individuals relocated within Canada. This movement across provinces and territories is partly attributable to emerging employment opportunities or a decline in labour demand, and gives workers the possibility to access labour markets in other jurisdictions and obtain or find a job that may be better suited for their particular skillset. From a national perspective, interprovincial mobility can increase real GDP and aggregate labour productivity growth. It can also improve individual outcomes in terms of finding suitable employment, as workers from provinces with high unemployment and an excess of labor supply move to provinces with lower unemployment and labour shortages.

While several factors can influence an individual’s decision to move (including, but not limited to, job opportunities, education/school or family reasons), the desire to seek a higher standard of living is often a driving force. Since the mid-1990s, Western Canada, especially Alberta, was the destination of choice for a majority of Canadian interprovincial migrants. However, with the downturn in commodity prices and less favourable labour market conditions in Alberta, trends have somewhat shifted to Ontario and British Columbia in recent years (see Chart 5).

Labour market developments in Ontario and British Columbia have made these provinces the preferred destination of interprovincial migrants since July 2015 (+11,000 and +16,400 on average per year, respectively). In Alberta, the net migration was on average 23,700 each year from July 2005 to June 2015—a trend that reversed from July 2015 to June 2018 (-11,300 in net migration per year, on average), following the downturn in commodity prices in FY1415. However, between July 2018 and June 2019 Alberta experienced positive net migration (+5,500). Saskatchewan, another oil-producing province, had an average net migration of -7,000 per year over the period July 2015 to June 2019.

Chart 5 – Text description

Region	July 2005 to June 2015 (annual average)	July 2015 to June 2018 (annual average)	July 2018 to June 2019
Atlantic provinces	-14.9%	3.2%	-1.7%
Quebec	-30.0%	-24.9%	-11.1%
Ontario	-38.4%	32.3%	42.8%
Manitoba and Saskatchewan	-15.0%	-35.6%	-69.0%
Alberta	73.0%	-33.9%	20.2%
British Columbia	26.5%	59.3%	22.3%

• Note: Annual is defined as the period from July 1 to June 30. Results for the territories are not presented in the chart. Consequently, the total net migration does not add up to zero.
• Source: Statistics Canada, Table 17-10-0021-01.

In this section

• 1.3.1 Profile of permanent part-time employees
• 1.3.2 Profile of the self-employed
• 1.3.3 Profile of individuals in temporary employment

Labour market developments as discussed in the previous section, such as employment growth, do not distinguish between standard and non-standard jobs. Different types of employment result in varying labour market outcomes, such as hours worked and wage level, which are linked to qualifying for and the amount received in EI benefits. The prevalence of standard employment that emerged in the post-World War II period, which generally refers to the employee “working full-time, year-round for one single employer on the employer’s premises, enjoys extensive statutory benefits and entitlements, and expects to be employed indefinitely,”^{Footnote 37} started to decrease due to more non-standard employment pattern in the 1980s.^{Footnote 38} Non-standard employment currently makes up a sizeable share of the labour force—36.9% in FY1819, and it has remained fairly stable since the latter half of the 1990s. The evolution of non-standard employment in Canada, types of such employment, as well as the characteristics of individuals who are engaged in such employment patterns are reported in this section.

Non-standard employment is an umbrella term that comprises the following 3 situations:

• permanent part-time employment
• self-employment (including unpaid family workers), and
• temporary employment

Each accounts for 10.5%, 15.3% and 11.2% of total employment in Canada in FY1819 (see Chart 6).

Chart 6 – Text description

Mutually exclusive employment forms	Number	Share
Total employment	18,747,100	100.0%
Paid employees	15,886,300	84.7%
Permanent paid employees	13,791,800	73.6%
Full-time permanent paid employees	11,822,400	63.1%
Part-time permanent paid employees	1,969,400	10.5%
Temporary paid employees	2,094,500	11.2%
Self-employed	2,860,800	15.3%
Own-account self-employed	1,985,900	10.6%
Self-employed employers	853,400	4.6%
Unpaid family workers	21,500	0.1%

• Source: Statistics Canada, Labour Force Survey, Public Use Microdata File, April 2018 to March 2019.

Precariousness can be a feature of non-standard jobs, but it is not essential to the definition of non-standard employment. The degree of precariousness of an employment form is dependent on multiple dimensions; for example, the uncertainty of continuing employment, the control over the labour process (including working conditions, wages and existence of labour unions), and the degree of regulatory protection and the income level.^{Footnote 39} Some full-time full-year jobs can also be precarious in a sense (for example, being in a position with no opportunities for job advancement due to various reasons or for reskilling), and the level of precariousness varies by types of non-standard employment.

There are important differences among the range of non-standard employment situations; for example, the occupation, income profile and job security of workers in temporary employment may be different from that of individuals who are self-employed. Similarly, within the self-employed category, there can be differences between individuals who employ others and those who do not. Also, many workers in non-standard employment could be excluded from collective bargaining law and employment standards legislation.^{Footnote 40}

The rest of this section outlines the evolution of non-standard employment by type (that is, permanent part-time employment, self-employment and temporary employment) in Canada and the characteristics of individuals working in such types of work arrangement.

1.3.1 Profile of permanent part-time employees

Over time, the prevalence of part-time employment (both permanent and temporary), which consists of work usually less than 30 hours per week at the main or only job, grew consistently until the end of 1980’s, and remained stable since then (see Chart 7).

Chart 7 – Text description

Fiscal year	Number of part-time employment (left-scale)	Share of total employment (right scale)
FY7677	1,235.1	12.6%
FY7778	1,305.2	13.1%
FY7879	1,371.9	13.3%
FY7980	1,502.7	14.0%
FY8081	1,595.9	14.4%
FY8182	1,690.5	15.0%
FY8283	1,767.2	16.3%
FY8384	1,866.1	16.8%
FY8485	1,914.5	16.8%
FY8586	2,001.3	17.0%
FY8687	2,038.0	16.9%
FY8788	2,076.0	16.7%
FY8889	2,155.7	16.9%
FY8990	2,167.6	16.6%
FY9091	2,239.6	17.2%
FY9192	2,342.6	18.3%
FY9293	2,369.2	18.6%
FY9394	2,478.1	19.3%
FY9495	2,466.3	18.7%
FY9596	2,522.1	18.9%
FY9697	2,572.8	19.1%
FY9798	2,606.7	18.9%
FY9899	2,655.5	18.8%
FY9900	2,644.5	18.2%
FY0001	2,684.0	18.1%
FY0102	2,730.5	18.2%
FY0203	2,910.8	18.9%
FY0304	2,961.5	18.8%
FY0405	2,958.9	18.5%
FY0506	2,974.1	18.4%
FY0607	3,000.7	18.2%
FY0708	3,080.0	18.3%
FY0809	3,178.2	18.7%
FY0910	3,228.8	19.3%
FY1011	3,346.6	19.6%
FY1112	3,305.4	19.2%
FY1213	3,319.8	18.9%
FY1314	3,391.4	19.1%
FY1415	3,431.7	19.2%
FY1516	3,389.5	18.9%
FY1617	3,492.7	19.2%
FY1718	3,506.7	19.0%
FY1819	3,516.4	18.8%

• Note: Shaded areas correspond to recessionary periods in Canada’s economy.
• * This chart is based on both permanent and temporary part-time employment, and not only permanent part-time employment.
• Source: Statistics Canada, Labour force Survey, Table 14-10-0050-01.

This following subsection only focuses on permanent part-time employment; temporary part-time employment is included in subsection 1.3.3 as part of temporary employment.

Permanent part-time employment does not have a specified end-date. In the past decade, the share of individuals with permanent part-time employment among the total employed has gone down slightly. Notably, women are over-represented in this type of employment, representing 69.3% of these workers in FY1819. Within the last decade, however, the share of men among workers with permanent part-time employment has been increasing, from 28.1% in FY0809 to 30.7% in FY1819 (see Table 6).

• Source: Statistics Canada, Labour Force Survey, Public Use Microdata File, April 2008 to March 2019.

By age groups, a higher share of youth (29.6%) work in permanent part-time employment, compared to individuals in other age groups (6.7% of core-aged workers and 10.3% of older workers) in FY1819. This is attributable to the fact that a large share of youth are students who chooses part-time employment to better reconcile study with work. However, over the last decade, older workers accounted for a growing part of part-time employees, from 15.6% in FY0809 to 21.2% in FY1819.

It should be noted that some workers choose part-time employment over full-time employment due to the flexibility it offers. A recent study by Statistics Canada^{Footnote 41} found that nearly three-quarters (73%) of youth working part-time chose to do so because of schooling, while among older workers the main reason was personal preferences. Childcare was an important factor for core-aged women, which also explains the relatively higher share of women in part-time employment. Based on the Labour Force Survey in FY1819, 21.1% of part-time employees worked involuntarily in such employment arrangement.^{Footnote 42}

While 79.0% of all Canadian employees worked in the service-producing sector in FY1819,^{Footnote 43} permanent part-time workers are overrepresented in this sector, representing 95.1% of total part-time workers in FY1819. Notable industries include the Wholesale and retail trade industry (28.2% of total part-time workers), Accommodation and food services industry (18.1% of total part-time workers) and Health care and social assistance industry (17.6% of total part-time workers). This trend has not changed much in the past 10 years (see Annex 1.6).

Permanent part-time workers tend to experience more employment interruptions, thus are less likely to pay EI premiums in the year prior to unemployment. As a result, the proportion of these workers covered by the EI program is lower than that for permanent full-time workers. On the other hand, working fewer hours per week means that the part-time workers would be less likely to accumulate sufficient hours to qualify for EI benefits. In addition, these workers, on average, could also have a lower wage rate compared to full-time workers, which may lead to a lower EI weekly benefit rate.^{Footnote 44}

1.3.2 Profile of the self-employed

Self-employment refers to working owners of a business, farm or professional practice, whether employer (that is, incorporated) or own-account (that is, unincorporated). It also includes unpaid family workers who work without pay on a farm or in a business or professional practice owned and operated by another family member living in the same dwelling (see Chart 6 for breakdown of self-employed categories).

Among all forms of non-standard employment in Canada, self-employment has the largest share of the employed individuals (15.3% in FY1819). Over the years, the share of self-employed among total employed has increased from 12.2% in FY7677 to 17.2% in FY9798 and FY9899, to reach 15.3% in FY1819 (see Chart 8).

Chart 8 – Text description

Fiscal year	Number of self-employed (left-scale)	Share of total employment (right scale)
FY7677	1,193.4	12.2%
FY7778	1,216.6	12.2%
FY7879	1,283.8	12.4%
FY7980	1,338.6	12.4%
FY8081	1,374.6	12.4%
FY8182	1,441.3	12.8%
FY8283	1,498.1	13.8%
FY8384	1,555.4	14.0%
FY8485	1,595.0	14.0%
FY8586	1,664.0	14.1%
FY8687	1,660.1	13.8%
FY8788	1,718.5	13.8%
FY8889	1,789.2	14.0%
FY8990	1,796.1	13.8%
FY9091	1,849.8	14.2%
FY9192	1,913.7	14.9%
FY9293	1,939.5	15.2%
FY9394	2,019.4	15.7%
FY9495	2,038.8	15.5%
FY9596	2,106.9	15.8%
FY9697	2,203.3	16.4%
FY9798	2,371.8	17.2%
FY9899	2,430.3	17.2%
FY9900	2,448.3	16.9%
FY0001	2,336.6	15.8%
FY0102	2,270.2	15.2%
FY0203	2,356.6	15.3%
FY0304	2,420.6	15.4%
FY0405	2,471.7	15.5%
FY0506	2,528.0	15.6%
FY0607	2,511.0	15.2%
FY0708	2,613.8	15.5%
FY0809	2,660.7	15.7%
FY0910	2,701.9	16.1%
FY1011	2,670.0	15.7%
FY1112	2,663.4	15.4%
FY1213	2,691.1	15.4%
FY1314	2,727.7	15.4%
FY1415	2,738.0	15.4%
FY1516	2,768.8	15.4%
FY1617	2,760.3	15.2%
FY1718	2,834.6	15.3%
FY1819	2,860.8	15.3%

• Note: Shaded areas correspond to recessionary periods in Canada’s economy.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0026-01.

Although we have seen increases in the share of self-employed workers during economic downturns, there is no evidence that economic necessity is a determinant factor for people in choosing this type of work arrangement.^{Footnote 45} As is the case with part-time employment, many Canadians choose to be self-employed due to the flexibility it provides. Based on the Labour Force Survey of September 2018, around one-third of the respondents (33.5%) who were self-employed in their main job during the 12 months prior to the survey responded independence and freedom to be the main reasons for choosing self-employment. Around 15% of the respondents reported that they were self-employed because of the nature of their job (such as physicians, dentists and veterinarians), while only 5% respondents were self-employed as they could not find suitable employment.^{Footnote 46} The survey also showed that older workers (aged 55 and over) were more likely to be self-employed than younger (aged between 15 and 24 years) and core-aged (aged between 25 and 54) workers (26%, 3% and 14%, respectively).

In FY1819, almost two-thirds (62.4%) of the self-employed were men. However, within the past decade, growth in the number of self-employed women (+1.6% on average every year) outpaced the growth in the number of self-employed men (+0.3% on average every year); consequently, the share of women in total self-employed population has steadily increased (see Annex 1.7).

By industry classification, there were more self-employed workers in the goods-producing sector (16.7% of total employed in those industries) than in the service-producing sector (14.9% of total employed in those industries) in FY1819—see Table 7 for the incidence of self-employment by industry. The share of self-employed individuals in the goods-producing sector has been declining steadily for the past decade, mostly due to their decrease in the Agriculture industry, while it remained stable in the service-producing sector. The industries with the highest share of self-employed in FY1819 were Agriculture (55.6%), Professional, scientific and technical services (31.7%) and Construction (27.1%) industry.

• * Data not available.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0026-01.

Self-employed workers are not eligible for EI regular benefits, but they can opt in to EI special benefits (see subsection 2.6.7 for detailed discussion).

1.3.3 Profile of individuals in temporary employment

A temporary job has a predetermined termination date, or ends upon the completion of a project or the attainment of a goal. While there is a degree of uncertainty associated with temporary employment, such work arrangement can also provide employees with flexibility, experience, and enable them to acquire new skills and diversify existing knowledge.

Over the past 20 years, the share of individuals with temporary employment among all workers increased, from 9.5% in FY9798 to 11.2% in FY1819 (see Chart 9). Notably, the number and share of temporary employed individuals went down significantly during the recession in FY0809, as the demand for temporary staff generally goes down during economic downturns.^{Footnote 47}

Chart 9 – Text description

Fiscal year	Number of temporary employment (left scale)	Share of total employment (right scale)
FY9798	1,316.4	9.5%
FY9899	1,389.7	9.8%
FY9900	1,447.4	10.0%
FY0001	1,588.6	10.7%
FY0102	1,622.0	10.8%
FY0203	1,675.8	10.9%
FY0304	1,649.4	10.5%
FY0405	1,734.4	10.9%
FY0506	1,805.3	11.2%
FY0607	1,829.9	11.1%
FY0708	1,819.3	10.8%
FY0809	1,746.9	10.3%
FY0910	1,796.3	10.7%
FY1011	1,925.6	11.3%
FY1112	2,002.4	11.6%
FY1213	2,025.7	11.6%
FY1314	2,001.2	11.3%
FY1415	2,024.4	11.4%
FY1516	2,022.5	11.2%
FY1617	2,050.9	11.3%
FY1718	2,137.6	11.6%
FY1819	2,094.5	11.2%

• Note: The shaded area corresponds to a recessionary period in Canada’s economy.
• Source: Statistics Canada, Labour Force Survey, Table 14-10-0071-01.

The Labour Force Survey divides temporary employment into 3 categories: seasonal jobs, contract jobs and casual jobs. Seasonal jobs last for a limited period(s) at the same time every year—they are structured by the annual labour demand patterns of industries that have varying labour demand during specific season(s) in a year. Contract jobs are defined by the employer prior to hiring, and are to be terminated at a specific date or at the completion of a specific task or project.^{Footnote 48} Lastly, casual jobs have work hours that vary substantially from one week to the next, with no pre-arranged schedules and no pay for the time not worked, and limited prospects for regular work in the long-term.^{Footnote 49}

Chart 10 illustrates the distribution of each type of category in temporary employment in Canada over the past 2 decades. Between FY9798 and FY1819, the share of individuals with contract jobs increased from 46.1% to 52.8%, while it decreased for casual jobs (from 29.2% to 26.8%) and seasonal jobs (from 24.7% to 20.4%).

Chart 10 – Text description

Fiscal year	Seasonal jobs	Contract jobs	Casual and other temporary jobs
FY9798	24.7%	46.1%	29.2%
FY9899	23.8%	45.8%	30.5%
FY9900	23.5%	46.9%	29.7%
FY0001	22.8%	47.4%	29.8%
FY0102	22.7%	47.6%	29.7%
FY0203	23.5%	47.5%	29.0%
FY0304	23.1%	48.5%	28.5%
FY0405	23.0%	48.5%	28.5%
FY0506	23.7%	48.3%	27.9%
FY0607	23.5%	49.6%	26.8%
FY0708	23.0%	50.3%	26.7%
FY0809	23.6%	50.8%	25.7%
FY0910	23.4%	51.1%	25.5%
FY1011	22.9%	51.3%	25.7%
FY1112	22.8%	51.6%	25.6%
FY1213	22.8%	52.6%	24.6%
FY1314	21.6%	52.3%	26.1%
FY1415	20.9%	53.2%	25.9%
FY1516	21.5%	52.7%	25.9%
FY1617	21.5%	51.9%	26.6%
FY1718	19.9%	53.9%	26.2%
FY1819	20.4%	52.8%	26.8%

• Note: The shaded area corresponds to a recessionary period in Canada’s economy.
• Source: Statistics Canada, Labour force Survey, Table 14-10-0071-01.

In FY1819, Newfoundland and Labrador had the highest share (21.0%) of temporary jobs in Canada, followed by Prince Edward Island (17.9%), New Brunswick (14.3%) and Nova Scotia (13.5%). The share of women with temporary jobs (12.2%) was slightly higher than the share of men (10.2%), while the prevalence of temporary jobs was much higher among youth (aged between 15 and 24 years) compared to individuals in other age groups (see Annex 1.8). This is attributable to the fact that a large share of youth are students, who may use temporary employment as a stepping stone to permanent employment.

In the reporting year, temporary employment represented 11.2% of all employment. When breaking down by categories, contract jobs accounted for 5.9% of all employment in Canada, while the share of casual and seasonal jobs were much lower (3.0% and 2.3%, respectively). The share of contract and casual jobs was higher among women compared to men, but this reversed for seasonal jobs. While the shares of all types of temporary jobs were higher among youth, a notably higher proportion of core-aged workers was employed in contract jobs (5.3%) than the other 2 types of temporary employment (see Table 8).

• Source: Statistics Canada, Labour Force Survey, Table 14-10-0071-01.

By industry classification, 8.9% of workers in the goods-producing sector had temporary employment in the reporting year, compared to 11.8% in the service-producing sector. In the goods-producing sector, the Agriculture industry and the Construction industry had the highest share of temporary jobs (11.6% for both industries) in FY1819. The majority of these were seasonal jobs. On the other hand, in the service-producing sector, the Educational services industry had the highest share of temporary jobs (24.8%, mostly composed of contract jobs), followed closely by the Information, culture and recreation industry (22.0%, mostly composed of seasonal and contract jobs)—see Annex 1.8.

Lower earnings and fewer hours of work are generally associated with temporary employment.^{Footnote 50} Even after controlling for differences in individual and job characteristics (for example, skills proficiency, education, industry and occupation), there is still a wage gap associated with temporary employment.^{Footnote 51} As applicants for EI regular benefits need a minimum number of hours of insurable employment to be eligible for benefits, workers who previously held temporary employment, in general, have a lower eligibility rate than those who had permanent employment.^{Footnote 52}

However, the coverage rate of EI regular benefits for those who occupied temporary employment is generally higher than those who held permanent employment. This is due to the high proportion (40.0%) of seasonal workers among the unemployed who previously held temporary employment and to the fact that seasonal workers are more likely to have paid EI premiums in the year prior to unemployment given their cyclical employment pattern over a year.