Study: Income in manufacturing regions

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Between 2000 and 2007, the probability of experiencing a decrease in income was significantly linked to the degree of concentration of regional employment in the manufacturing sector. The more employment is concentrated in this sector, the greater the likelihood of income loss.

Compared with residents of regions with a low manufacturing concentration, residents of regions where manufacturing industries predominate had a 13% to 18% greater probability of income loss. In regions with a moderate manufacturing concentration, this probability was 7% to 10% higher.

In regions with a high manufacturing concentration, while the likelihood of income loss was greater among workers in the manufacturing sector, it was also significant among workers in other sectors.

Manufacturing workers living in regions with a high concentration of manufacturing employment were 9% to 16% more likely to experience a decrease in income than their counterparts living in regions with a low concentration.

Workers in other sectors were between 8% and 11% more likely to experience a loss of income than their counterparts living in regions with a low concentration.

Between 2000 and 2007, the manufacturing sector lost 278,000, or one in six manufacturing jobs in Canada, reducing its relative share of employment from 16% to 12%.

Regions where employment is highly concentrated in the manufacturing sector are mainly located in Quebec and Ontario, for example, Windsor and Oshawa (in Ontario), and Granby and Thetford Mines (in Quebec). This type of region experienced the greatest manufacturing job losses.

Among manufacturing workers in regions with a high concentration of manufacturing employment, workers age 20 to 29 were most affected by the employment decline in this sector. They were as much as twice as likely to experience a loss of income as those holding a comparable job in a region with a low manufacturing concentration.

In addition, living in a region with a high manufacturing concentration between 2000 and 2007 increased the probability of receiving Employment Insurance benefits. Manufacturing workers in these regions were 39% more likely to receive EI benefits than their counterparts in regions with a low concentration.

Note: The article "Income in manufacturing regions" uses data from the Longitudinal Administrative Database from 2000 to 2007. The geographic regions selected for this study were census areas: census metropolitan areas and census agglomerations. The rate of employment concentration in the manufacturing sector was calculated for each metropolitan area and agglomeration, and is equal to the number of manufacturing jobs divided by the total number of local jobs. These areas and agglomerations were grouped into three categories based on the concentration of local manufacturing employment: low concentration (12% or less), moderate (more than 12% and less than 20%) and high (20% or more).

Definitions, data sources and methods: survey number 4107.

The article "Income in manufacturing regions" is now available in the July 2010 online edition of Perspectives on Labour and Income, Vol. 11, no. 7 (75-001-X, free), from the Key resource module of our website, under Publications.

For more information, or to enquire about the concepts, methods or data quality of this release, contact André Bernard (613-951-4660; andre.bernard@statcan.gc.ca), Labour Statistics Division.