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Job vacancies in 2011: Results of the Workplace Survey

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Catalogue no M No. 005 ISBN Labour Statistics: Research Papers Job vacancies in 2011: Results of the Workplace Survey by Diane Galarneau Release date: March 18, 2016 How to obtain
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Catalogue no M No. 005 ISBN Labour Statistics: Research Papers Job vacancies in 2011: Results of the Workplace Survey by Diane Galarneau Release date: March 18, 2016 How to obtain more information For information about this product or the wide range of services and data available from Statistics Canada, visit our website, You can also contact us by at telephone, from Monday to Friday, 8:30 a.m. to 4:30 p.m., at the following toll-free numbers: Statistical Information Service National telecommunications device for the hearing impaired Fax line Depository Services Program Inquiries line Fax line Standards of service to the public Statistics Canada is committed to serving its clients in a prompt, reliable and courteous manner. To this end, Statistics Canada has developed standards of service that its employees observe. To obtain a copy of these service standards, please contact Statistics Canada toll-free at The service standards are also published on under Contact us Standards of service to the public. Note of appreciation Canada owes the success of its statistical system to a long standing partnership between Statistics Canada, the citizens of Canada, its businesses, governments and other institutions. Accurate and timely statistical information could not be produced without their continued co operation and goodwill. Standard table symbols The following symbols are used in Statistics Canada publications:. not available for any reference period.. not available for a specific reference period... not applicable 0 true zero or a value rounded to zero 0 s value rounded to 0 (zero) where there is a meaningful distinction between true zero and the value that was rounded p preliminary r revised x suppressed to meet the confidentiality requirements of the Statistics Act E use with caution F too unreliable to be published * significantly different from reference category (p 0.05) Published by authority of the Minister responsible for Statistics Canada Minister of Industry, 2016 All rights reserved. Use of this publication is governed by the Statistics Canada Open Licence Agreement. An HTML version is also available. Cette publication est aussi disponible en français. Job vacancies in 2011: Results of the Workplace Survey by Diane Galarneau Introduction Statistics Canada has measured the concept of job vacancies several ways since the 1960s, namely, using the Help Wanted Index 1 from 1962 to 2003, the Job Vacancy Survey from 1971 to 1978, the Workplace and Employee Survey (WES) from 1999 to 2006 and since 2011, the Job Vacancy Statistics (JVS) produced from the Business Payrolls Survey (BPS). The Job Vacancy and Wage Survey (JVWS) was also recently launched, with the first results released in August Shortly before the JVWS, the 2011 Workplace Survey (WS) was conducted in collaboration with Employment and Social Development Canada (ESDC). According to the WS, there were 392,500 job vacancies in December 2011, representing 2.7% of all filled and unfilled positions in Canada that month. This article presents the results of the WS and examines whether the trends observed in the job vacancies are reflected in selected Labour Force Survey (LFS) indicators. Since the WS was a pilot survey and response rates varied depending on the question, some results cannot be provided (see Lorenz, 2015). About the 2011 Workplace Survey The 2011 WS was an experimental survey funded by ESDC and was the first version of a cross-sectional survey that was to be conducted annually. They survey, conducted in 2012, was meant to help improve the content and collection tools used for subsequent cycles but unfortunately, budget constraints forced ESDC to cease funding of the WS after its first collection cycle. A data quality report (Lorenz, 2015) was published and a microdata file was made available as a supplement to this analytical article. The lessons learned at different stages of this pilot survey were useful for the new JVWS. The main purpose of the WS was to collect workplace data, such as employment profiles (active employees classified by the occupational code of the minor groups in the National Occupational Classification for Statistics 2 ), unionization, type of employment (full-time or part-time, permanent or temporary) and workforce characteristics. The questionnaire was also to cover skills shortages and workplace practices. The survey population included all locations of enterprises operating in Canada with paid employees, with the exception of the following industries: crop production; animal production and aquaculture; fishing, hunting and trapping; religious organizations; private households; federal public administration; provincial and territorial public administrations; and international and other extra-territorial public administrations. The WS initial sample consisted of 25,000 locations, with a response rate of approximately 72%. However, this rate varied depending on the size of the location: it was approximately 80% for locations with fewer than 20 employees and 58% for those with 500 or more employees. This article focuses mainly on the issue of job vacancies. Respondents were asked to report numbers as of December 31, This estimate may include a seasonal component, given the number and rate of job vacancies generally decreases in December according to the Job Vacancy Statistics (CANSIM table ). WS data on labour turnover (persons hired and departures) and hard-to-fill jobs is also used in this article. In the questionnaire, each respondent was required to complete a table and indicate the total number of people hired, the number of departures, vacancies, and hardto-fill positions for a given period. These concepts were defined as follows: Job vacancies: Total number of vacant positions as of December 31, These could be full- or part-time, temporary or permanent, seasonal or on-call jobs that corresponded to specific positions at the location and would be available within a period of 30 days. The location also had to be actively searching for an outside candidate. There was no indication as to how long these jobs had to be vacant. 1. This index did not indicate the number of job vacancies, but rather the changes in labour demand, which provided an overview of trends in labour shortages by collecting help wanted ads in newspapers. 2. Due to the inadequate quality of occupational code data, employment profiles could not be released at a detailed level. Statistics Canada Catalogue No M No Hard-to-fill positions: Total number of hard-to-fill positions between January 1 and December 31, These could be jobs that were filled in 2011 or jobs vacant as of December 31 that an employer had trouble filling. These positions were those for which it took longer than usual to recruit or fill than originally expected. This variable was mainly based on respondents perceptions. Persons hired: All individuals added to the payroll of a location between January 1 and December 31, This could have been a newly hired or rehired person on a permanent, temporary or seasonal basis; an employee recalled after being laid off; an on-call employee who returned to work after an official departure; an employee who was hired and subsequently left during the year; or an employee transferred from another location. Departures: Total number of departures between January 1 and December 31, These could consist of resignations, retirements, permanent or temporary layoffs, or any other type of departure. In this article, only resignations and retirements that took place between January 1 and December 31, 2011 have been included since layoffs do not usually result in job vacancies. Job vacancy rates from the WS are higher than those from the monthly BPS. For a comparable period (December 2011), the rates were 2.7% and 1.5% respectively (for more information on this difference, see Lorenz, 2015). In this article, oil-producing provinces were separated from the others 3 because of the significant economic growth they experienced during the 2000s, largely driven by the energy sector. The non-oil-producing provinces were divided into two groups to account for the population numbers of Quebec and Ontario, the two largest provinces. Oil-producing provinces posted the highest job vacancy rates In Canada, 27% of the locations in the WS reported job vacancies as of December 31, 2011 (Table 1). Nationally, there were 392,500 vacancies on that date. This number varied significantly from province to province however almost 80% of those positions were in Ontario, Quebec and Alberta. Nunavut, the Northwest Territories and Yukon reported 3,500 job vacancies in December 2011, giving them a relatively high job vacancy rate 4 (10.8%). However, these territories are excluded from the remainder of the analysis as the sample sizes were too small to conduct a more detailed examination. In the 10 provinces, the vacancy rate ranged from 1.9% to 4.6%, with a national average of 2.7% as of December 31, Generally, there is an inverse relationship between the unemployment rate and the job vacancy rate. This relationship is often represented by the Beveridge curve (Archambault and Fortin, 2001) and could be explained by the fact that enterprises in tight labour markets, characterized in part by low unemployment rates, would be more likely to have difficulty finding employees to fill their positions and would therefore have higher job vacancy rates than enterprises in other labour markets. Some of these enterprises might even face labour shortages. To attract workers and retain those they already have, employers in these markets would offer higher wages and generally more favourable working conditions than employers in markets where unemployment rates are higher. 3. This distinction between oil-producing and non-oil-producing provinces has recently been used in a number of articles, including Morissette and Frenette, 2014; Morissette, Chan and Lu, 2014; and Galarneau, Morissette and Usalcas, The job vacancy rate is a ratio corresponding to the number of job vacancies expressed as a percentage of labour demand, or the sum of filled and unfilled positions. 4 Statistics Canada Catalogue No M No. 005 Table 1 Number of job vacancies, job vacancy rate and unemployment rate by province and territory, 2011 Number of job vacancies thousands Job vacancy rate percent Unemployment rate Canada Newfoundland and Labrador E 13.0 Prince Edward Island E 12.0 Nova Scotia 5.5 E New Brunswick Quebec Ontario Manitoba Saskatchewan Alberta British Columbia Territories¹ E use with caution 1. Includes Yukon, the Northwest Territoires and Nunavut. Sources: Statistics Canada, Workplace Survey (WS) and Labour Force Survey (LFS). Although this relationship is generally seen over a long period, in December 2011, Alberta posted the highest job vacancy rate (4.6%), significantly higher than the other provinces, and an unemployment rate among the lowest in the country (4.5%). However, for most provinces the relationship was more tenuous. Table 2 presents selected indicators from the WS and LFS, with the provinces divided into three groups. The oil-producing provinces of Alberta and Saskatchewan experienced considerable growth between 2000 and 2011 due to the exploitation of their energy resources. This was also the case in Newfoundland and Labrador. Although its unemployment rate was relatively high at the end of 2011 (13.0%) compared with other provinces, it was down considerably from 16.6% at the beginning of the 2000s. Moreover, Newfoundland and Labrador recorded the strongest increase in wages between 2000 and 2011, up more than 20% in real terms compared to the national average, with an increase of 8.9% (according to the LFS). As such, these three so-called oil-producing provinces were grouped together in this analysis. This grouping of provinces reveals certain regional characteristics, which prevailed in For example, even though just over 15% of the jobs in Canada were in the oil-producing provinces, they accounted for more than 24% of job vacancies. In contrast, more than two-thirds of jobs were in the central provinces, though they accounted for just under 59% of job vacancies. Almost 19% of jobs were located in the remaining provinces; which accounted for a similar proportion of job vacancies (17%). Statistics Canada Catalogue No M No Table 2 Select Workplace Survey and Labour Force Survey indicators by provincial grouping, 2011 Canada 1 Oil-producing provinces 2 Central provinces 3 Other provinces 4 Workplace Survey Employment (thousands) 14,221 2,154 9,431 2,636 Proportion of employment (%) Job vacancies (thousands) Proportion of job vacancies (%) Job vacancy rate (%) Proportion of hard-to-fill positions 5 (%) Proportion of full-time jobs 6 (%) Proportion of permanent jobs (%) Labour Force Survey Unemployment rate (%) Average hourly wage 7 ($) Change from 2000 to 2011 (%) Change from 2006 to 2011 (%) Average weekly wage 7 ($) Change from 2000 to 2011 (%) Change from 2006 to 2011 (%) Data for the territories are excluded from this table. 2. Includes Newfoundland and Labrador, Alberta and Saskatchewan. 3. Includes Quebec and Ontario. 4. Includes Prince Edward Island, New Brunswick, Nova Scotia, Manitoba, and British Columbia. 5. Hard-to-fill positions may be filled or unfilled, which is why they are shown here as part of total employment and job vacancies. 6. The highest proportion of full-time jobs in the oil-producing provinces was also seen in the LFS, but the difference was smaller, with the proportions being 84% in the oil-producing provinces and 81% in the central provinces. 7. For the wages, the LFS universe has been modified to be comparable to that of the WS. The percentage change in hourly and weekly wages was assessed in real terms using the Consumer Price Index (CPI) at the provincial level. Sources: Statistics Canada, Workplace Survey (WS) and Labour Force Survey (LFS). In December 2011, the job vacancy rate was therefore significantly higher in the oil-producing provinces (4.2%). This relatively high rate coincided with a lower unemployment rate for these provinces (5.2%) compared with 7.4% in the central provinces and 6.8% elsewhere. There was also a higher proportion of hard-to-fill positions (3.7%) compared with 1.8% and 2.2% in the other provincial groups, higher wages and a faster increase in hourly and weekly wages from 2000 to Real hourly and weekly wages rose by more than 21.3% between 2000 and 2011 in the oil-producing provinces, compared with increases of 7.0% and 6.5% in the other provincial groups. 5 Moreover, the oil-producing provinces had the highest proportion of full-time jobs (73%) compared with just under 69% in both the central and other provinces. There was little difference in the proportion of permanent jobs, varying between 82% and 83% depending on of the region. 6 Although the trends in these indicators may reflect a set of factors, it is interesting to note that the job vacancy rates are higher in regions where the labour market conditions are most dynamic. The job vacancy rate in the energy sector was more than twice as high as all sectors combined The WS breaks down job vacancies by sector. In December 2011, mining, quarrying, and oil and gas extraction posted the highest vacancy rate at 6.4% (Table 4). It was followed by health care and social assistance (4.3%) and professional, scientific and technical services (4.2%). In contrast, the lowest rate was observed in the utilities sector (0.2%), followed by retail trade, educational services, and finance and insurance, with rates ranging from 1.4% to 1.7%. 5. In theory, excess labour demand increases the number of job vacancies, which eventually leads to an increase in real wages if pressures on the market persist. In enterprises, employers will seek various alternatives to meet their labour needs before raising real wages. As a result, the links between job vacancies and wages are not always seen over short periods. This is why this analysis covers an 11-year period. We also confimed that these links existed over a shorter period (from 2006 to 2011). However, it should be noted that wage changes are not exclusively linked to labour shortages or excess job offer. Other factors such as the composition of jobs by occupation and industry, unionization rate, labour legislation, and economic conditions also play a role. 6. We also examined the differences in unionization rates, however, the provincial differences were due mainly to historical trends. The unionization rate was historically higher in Newfoundland and Labrador, Quebec and British Columbia. The grouping used in this article masks these trends and makes it impossible to establish a link between unionization rates and the characteristics of tight labour markets. The 2011 rates were 24.5% in the oil-producing and central provinces, and 27.6% in the remaining provinces. 6 Statistics Canada Catalogue No M No. 005 Table 3 Employment growth by sector, from 2000 to 2011 Construction 72.5 Mining, quarrying and oil and gas extraction 70.3 Administrative and support, waste management and remediation services 39.9 Health care and social assistance 39.1 Arts, entertainment and recreation 38.3 Professional, scientific and technical services 33.8 Management of companies and enterprises 29.1 Accommodation and food services 23.7 Retail trade 22.0 Other services (except public administration) 22.0 Finance and insurance 20.5 Educational services 20.1 Real estate and rental and leasing 19.8 Wholesale trade 18.9 Utilities 18.3 All sectors 17.8 Transportation and warehousing 11.6 Public administration 10.9 Information and cultural industries -0.3 Manufacturing Forestry, logging and support activities for forestry Notes: The LFS universe has been modified to be comparable to that of the WS. Data for the territories are excluded from this chart. Source: Statistics Canada, Labour Force Survey (LFS). The relatively high job vacancy rate in the mining, quarrying, and oil and gas extraction sector coincided with indicators of strong growth as employment in this sector grew by 70% between 2000 and 2011, compared with 18% for all sectors combined (Table 3). Moreover, real wages in this sector rose by 17.3%, compared with 8.9% for all sectors as a whole (Table 4). Table 4 Distribution of employment, job vacancy rate and average hourly wage in 2011 and the percent change in hard-to-fill positions, professional positions and average hourly wage from 2000 to 2011, by sector 1 Distribution in 2011 Change from 2000 to 2011 Employment Job vacancy rate Average hourly wage 2 Hard-to-fill positions 3 Professional positions Average hourly wage 2 thousands percent dollars percent All sectors 14, Forestry, logging and support activities for forestry 39 F Mining, quarrying, and oil and gas extraction Utilities Construction Manufacturing 1, Wholesale trade Retail trade 1, F Transportation and warehousing Information and cultural industries Finance and insurance Real estate and renting and leasing Professional, scientific and technical services Management of companies and enterprises Administrative and support, waste management and remediation services Educational services 1, Health care and social assistance 1, Arts, entertainment and recreation Accommodation and food services 1, Other services (except public administration) Public administration F too unreliable to be published 1. Data for the territories are excluded from this table. 2. The LFS universe has been modified to be comparable to that of the WS. The percentage change in hourly wages was assessed in real terms using the Consumer Price Index (CPI). 3. Hard-to-fill positions may be filled or unfilled. Sources: Statistics Canada, Workplace Survey (WS) and Labour Force Survey (LFS). percent Statistics Canada Catalogue No M No The strong momentum of the energy sector in the oil-producing provinces during the 2000s seemed to have spread to other sectors, a
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