Study: Variation in occupational skill levels between rural and urban Canada

Canada's urban and rural regions are at opposite ends of the spectrum when it comes to occupational skill levels within a set of industries, according to a new study.

The study found that in 2001, predominantly urban regions of Canada had a higher concentration of skilled workers, such as those in the managerial and professional skill-level groups than rural regions.

On the other hand, the intensity of unskilled occupations in rural regions was sizably higher than in urban regions.

The share of employment in the lowest skill category, the unskilled group, was higher in rural regions, and it decreased substantially towards urban regions.

This polarization was evident even after regional differences in industrial structure were taken into account.

This discrepancy in employment skill level widened between 1991 and 2001 as rural regions continued to lose skilled employment relative to urban regions.

The study found a major divide between the south and west regions of Canada and the north and east. Higher skilled employment categories were concentrated in the south and west areas, and the lower skilled categories concentrated in the north and east.

Interestingly, employment in the professional skill group in the three territories showed an above average intensity before the industry mix was accounted for. However, it showed a below average intensity after accounting for the industry mix.

The three territories had a high share of professional skill level workers because their industrial structure is biased towards sectors with a higher concentration of professional workers. One was the public service sector.

The study also found that Southern Ontario generally had a high intensity of employment in the managerial skill group. However, this employment was actually concentrated in census divisions surrounding the major metropolitan centres of the region. Thus, rural regions in Southern Ontario also showed a lower skill intensity relative to the nearby urban centres.

This concentration of skills in the metropolitan centres increased over the 1990s.

After accounting for the differences in industrial composition, the study found that there were large differences between men and women in terms of occupational skill level.

In rural regions, within the female labour force, the share who had a managerial or professional skill level job was substantially higher than for men within the male labour force.

At the macro-regional level, in regions with a generally high labour force participation rate, there was little difference in the intensity of occupational skill level between men and women.

However, in Atlantic Canada there was a higher intensity of women in managerial and professional skill level jobs, and in unskilled skill groups. Men had a higher intensity in the technical and intermediate skill groups.

The Rural and Small Town Canada Analysis Bulletin: Occupational Skill Level: The Divide between Rural and Urban Canada, Vol. 6, no. 2 (21-006-XIE2005002, free) is now available online. From the Our products and services page, choose Free Publications, then Agriculture.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Erik Magnusson (613-951-0218, erik.magnusson@statcan.gc.ca), Agriculture Division.