Findings

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Labour force and employment activity
Employment by industry sector
Workforce in higher-skilled occupations
Worker education levels
Average income and the incidence of low income
Summary

Labour force and employment activity

Labour force activity and rates of employment provide information on the strength of the economy within the different types of watersheds and, by extension, suggest where policy intervention may be most effective.

In “very highly urban” watersheds, 68 % of the population aged 15 years and over were in the labour force (Box 2) and 64 % were employed (Appendix Tables 1A to 1C). Both these totals become progressively lower with increasing watershed rurality to the extent that in “highly rural” watersheds, only 61 % of the population aged 15 years and over were in the labour force and 50 % were employed.

In Figure 1, employment location quotients (Box 3) show that employment intensity (i.e. the employment rate relative to the national level) steadily falls for both the census rural and census urban population with increasing watershed rurality.

There is a striking difference in the employment rates when we compare census urban and census rural residents within a watershed. Compared to the census urban population, the census rural population has a higher employment rate in “very highly urban” and in “highly urban” watersheds but a lower employment rate in the more rural watersheds. It appears that the census rural population has better access to (urban) jobs in the more urban watersheds.

In “highly rural” watersheds, only 80 census rural people are employed compared to the 100 that would be employed if they enjoyed the same rate of employment as the Canadian workforce as a whole (i.e., the location quotient is 0.80). The comparable number for the census urban population within the “highly rural” watersheds is 0.89.

Figure 1  Employment rates are lower in watersheds that are more rural (note that census rural employment rates are relatively higher in urban watersheds and are relatively lower in rural watersheds)

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Employment by industry sector

Employment by industry sector provides information on which industries are most important to a watershed type in terms of the number of people employed and their potential to produce exportable goods and services. In short, the economic dynamics of a watershed type can be better understood when industry sectors are profiled and, by extension, a sense of both future employment opportunities and the potential for environmental degradation can be gleaned.

Throughout this section, the findings for selected employment sectors are presented. The detailed data can be found in Appendix Tables 2A to 2D, Appendix Tables 3A to 3D and Appendix Tables 4A to 4D.

Not surprisingly, employment in agriculture is more intensive in census rural areas (Figure 2). The workforce¹ in census rural areas within “highly urban” watersheds is the most intensive in terms of employment on farms -- 5.4 times more intensive than the overall Canadian workforce. However, agricultural employment is a significant feature of census rural areas in each type of watershed.

Figure 2  Employment in agriculture is relatively more intensive among the census rural workforce in “highly urban” watersheds

Similarly, employment in forestry is relatively more intensive among the census rural workforce in each type of watershed (Figure 3). The intensity is greatest for the census rural workforce in “moderately urban” watersheds.  Note that both agricultural and forestry jobs are relatively more intensive in the census rural areas within each watershed.

Figure 3  Employment in forestry is relatively more intensive among the census rural workforce in watersheds that are more rural

The intensity of employment in the mining sector is higher in more rural watersheds for both the census rural and census urban workforce (Figure 4). Note that the employment intensity is similar in the census rural areas and the census urban areas in most types of watersheds.

The extremely high intensity seen amongst the census urban workforce in “highly rural” watersheds is probably due to the low absolute numbers of the census urban workforce found in these watersheds - only 550 census urban individuals are recorded as employed in the mining sector in “highly rural” watersheds out of a total employment level of 4,230 workers (Appendix Tables 3A to 3D).

Figure 4  The intensity of employment in mining is similar in census urban and census rural areas (except for the “highly rural” watersheds)

Sawmills and pulp and paper mills are two manufacturing sectors involved in wood processing.  Employment in sawmills follows a similar pattern to that of forestry being more intensive in census rural areas than in census urban areas within each type of watershed (Figure 5). As with forestry, the most intensive areas are census rural areas within “moderately urban” watersheds.

Figure 5  The intensity of employment in sawmills is higher in census rural than in census urban areas within each type of watershed

Employment in pulp and paper mills follows a similar pattern to that of mining.  For the workforce as a whole, with the exception of “highly rural” watersheds, the share of the workforce employed in pulp and paper mills is higher in watersheds that are more rural (Figure 6). Moreover, this pattern is similar for both the census rural and census urban workforce.

In “moderately rural” watersheds, the census urban location quotient is 2.75. This means there would be 275 census urban people employed in pulp and paper mills compared to the 100 that would be employed if they had the same intensity of employment as the Canadian workforce as a whole.

Figure 6  The intensity of employment in pulp and paper mills is relatively higher in “moderately rural” watersheds

One might expect the intensity of employment in mining, sawmills and pulp and paper mills to be relatively higher in census urban areas if these activities had formed the nucleus for a town. Interestingly,

• for mining employment, this case appears only for the small number of workers in census urban areas in “highly rural” watersheds (Figure 4);
• for sawmill employment, employment intensity is not higher in census urban areas indicating that towns (or 1,000 or more population) are not (relatively) more intensive in sawmill employment (Figure 5); and
• for pulp and paper employment, employment intensity is higher in census urban areas only in “moderately rural” watersheds (Figure 6), again indicating that census urban areas are not generally (relatively) intensive in pulp and paper employment.

Thus, with these measures, employment in mining, sawmills and pulp and paper mills is not generally more intensive in census urban areas.

In Canada as a whole, over 14 % of the workforce is employed in all other manufacturing industries (that is, employment in all manufacturing industries excluding sawmills and pulp and paper mills) (Appendix Tables 2A to 2D).  The watershed type that is most intensive in “other” manufacturing employment is the “highly urban” watershed (Figure 7).  Here, the census urban workforce is about 20 % more intensively employed in “other” manufacturing, compared to Canada as a whole. In the more rural watersheds, the intensity of employment in manufacturing is lower – for both the census rural and the census urban workforce.

Figure 7  The intensity of employment in manufacturing (other than sawmills and pulp and paper mills) is relatively higher in “highly urban” watersheds

In 2001, employment in the business services sector accounted for approximately 9 % of the total employed workforce across Canada (Appendix Tables 2A to 2D). The share was highest in the most urban watersheds and was lowest in the more rural watersheds (Figure 8).

In each type of watershed, the intensity of employment in the business services sector was higher amongst the census urban workforce than amongst the census rural workforce. The extreme urban concentration of this industry can be gauged by the fact that only census urban areas in “very highly urban” watersheds have an intensity of business services employment above the Canadian average.  Business services are an urban-centric activity in which workers tend to assemble, analyze and disseminate information that is considered useful to other industries.

Figure 8  The intensity of employment in business services is above the national average only in census urban areas in “very highly urban” watersheds

Employment in the government services sector accounts for a little more than 6 % of employment throughout Canada as a whole (Appendix Tables 2A to 2D).

With the exception of a spike in “moderately urban” watersheds, the intensity of employment in government services is higher in the more rural watersheds (Figure 9).

There were differences in the government services sector employment pattern between the census rural and census urban workforce. Amongst the census rural workforce the highest intensity is recorded in the most rural watershed type. In these watersheds, over 230 census rural individuals are employed for every 100 that would have been employed if the intensity had been equal to that found amongst the Canadian workforce as a whole. However, among the census urban workforce the intensity is highest in “moderately urban” watersheds.

Figure 9  The intensity of employment in government services is relatively higher in the census urban workforce of “moderately urban” watersheds

Except for the most rural and most urban watershed types, government workers are more likely to be in census urban areas than in census rural areas. This is not surprising as schools, hospitals and other government offices are more likely to be located in urban centres. In “very highly urban” watersheds, perhaps government workers are more likely to live in rural areas and commute to urban centres. In the “highly rural” watersheds, government workers may be in towns with less than 1,000 individuals.

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Workforce in higher-skilled occupations

This section examines the pattern of higher-skilled and lower-skilled occupations across types of watersheds.² A larger share of the workforce with higher-skilled occupations may imply a higher availability of skills for managing and negotiating governance issues within a watershed. Alasia and Magnusson (2005) showed that, within the majority of industry sectors, higher-skilled occupations were more concentrated in urban locations and lower-skilled occupations were more concentrated in rural locations. Once again, ‘workforce’ refers to the experienced labour force aged 25 to 64 years (Box 2).

Watersheds that are more rural have a lower share of their workforce with managerial occupations (Figure 10). Within each type of watershed, census rural areas have a lower share of the workforce with managerial occupations, compared to census urban areas.

Figure 10  Within each type of watershed, the census urban workforce has a higher intensity of managerial occupations

Conversely, the more rural the watershed, the greater is the share of the workforce employed in unskilled occupations, and in rural watersheds, the census rural workforce is even more likely to have an unskilled occupation (Figure 11). In rural watersheds, the census rural workforce has a higher intensity of workers in unskilled occupations.

Figure 11  “Highly rural” watersheds have a higher share of the workforce employed in unskilled occupations

Worker education levels

There are dramatic differences in the highest level of education attained by the experienced labour force in the different watershed types.  Those with a post-secondary degree, certificate or diploma account for 61 % of the workforce in “very highly urban” watersheds, but for only 43 % in “highly rural” watersheds (Appendix Tables 8A to 8D).  Meanwhile, those with no degree, certificate or diploma account for 26 % of the workforce in “very highly urban” watersheds, but 47 % of the workforce in “highly rural” watersheds.

In each watershed type, the census rural workforce has a lower level of formal education than does the census urban workforce.  The census rural workforce has a smaller share of those with post-secondary education (Figure 12) and a larger share of those with the less than a high school diploma (Figure 13). The discrepancy is greatest amongst those with less than a high school diploma in “highly rural” watersheds.

Figure 12  “Highly rural” watersheds have a lower share with a post-secondary certificate

Figure 13  Within each type of watershed, the census rural workforce is less likely to have completed high school

Average income and the incidence of low income

Information on incomes gives a valuable insight into the relative social standing of different groups within Canada.  This section briefly looks at two aspects of income within Canada’s watersheds – the average income of individuals and the incidence of low income³.

Incomes are lower on average in watersheds that are more rural (Figure 14).  Further, compared to the census urban workforce, the census rural workforce has lower incomes in each type of watershed. Interestingly, the income gap between census rural and census urban is largest within the “highly rural” watersheds and smallest within the “very highly urban” watersheds.  In the more urban watersheds the census rural population appears to benefit from having more ready access to larger cities.

Figure 14  Average incomes are lower in watersheds that are more rural, and incomes are lower in census rural areas within each type of watershed

In contrast, a review of the incidence of low incomes shows a divergent pattern:

• the census urban population is somewhat less likely to report low incomes in watersheds that are more rural (Figure 15); however,
• the census rural population is more likely to report low incomes in watersheds that are more rural.

Figure 15  Census rural residents within urban watersheds are less likely to report low incomes, compared to the urban residents of these watersheds

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Summary

As noted in an earlier bulletin (Rothwell, 2006), the most urbanised watersheds “very highly urban” comprise only six individual watersheds but are the home to nearly 10 million Canadians – one third of Canada’s total population. Moreover, between 1981 and 2001 this population increased 45 % – or by over 3 million individuals. Further, nearly 650,000 census rural individuals (representing 11 % of the total census rural population) also live in this type of watershed. The sheer pressure of population, and the potential for environmental concerns that this would suggest, coupled with the mixing of so many census rural and census urban people means that profiling the socioeconomic conditions that prevail within these watersheds, and particularly the differences between the census rural and census urban population, is vitally important.

The “very highly urban” watersheds had the highest intensity of labour force participation and the highest intensity of employment of all the watershed types.  Moreover, these totals were higher amongst the census rural population than among the census urban population.

As might be expected, the “very highly urban” watersheds have low employment intensity in mining and pulp and paper mills (the more rural-based manufacturing activity).  However, employment in manufacturing, other than sawmills and pulp and paper mills, shows a higher intensity than that found across Canada as a whole.  “Very highly urban” watersheds had the highest intensity of any watershed type for employment in business services.  Further, the census rural population had a higher intensity than the census urban population in this regard.  Perhaps surprisingly, “very highly urban” watersheds showed a relatively low intensity of employment in government services, particularly amongst the census urban population.

The population in the “very highly urban” watersheds is doing very well in terms of both occupational skill levels and educational level.  Further, the census rural population outstrips the census urban population in these categories.  These watersheds also exhibited the highest intensity of managerial and professional workers (the highest occupational skill level) and the lowest intensity of unskilled workers (the lowest occupational skill level).  Further, the intensity of managerial workers was higher, and the intensity of unskilled workers was lower, amongst the census rural population within “very highly urban” watersheds.

The intensity of post-secondary degree, certificate or diploma holders (the highest education level) in “very highly urban” watersheds were the highest of any watershed type. Similarly, the intensity of those with no degree, certificate or diploma (the lowest education level) was the lowest of any watershed type.  When the population was split between census rural and census urban the census urban population exhibited a lower intensity of post-secondary degree, certificate or diploma holders and a higher intensity of those with no degree, certificate or diploma.

Finally, a profile of average income and the incidence of low income reveal that residents in “very highly urban” watersheds have the highest average income of all, with the census urban population having a slightly higher average than the census rural population.  The incidence of low income reveals a huge discrepancy between the census rural population and the census urban population within the “very highly urban” watersheds.  The census urban population has an incidence of low income that is amongst the highest of any watershed type while the census rural population shows the lowest incidence of any watershed type.   

Taken together, these results suggest that in terms of employment, occupational skills, formal education and income, the workforce in “very highly urban” watersheds ranks relatively high, compared to the rest of Canada. Moreover, on many measures, the census rural workforce is doing better than the census urban workforce in these urban watersheds. A higher socioeconomic standing amongst the workforce in general, and the census rural workforce in particular, suggests that there may be a greater potential or greater capacity to deal with environmental issues in these very highly populated watersheds.

This bulletin has described the way a number of socioeconomic characteristics vary by watershed type within Canada. The use of watershed types (based on the share of the resident population that is census rural) as the basic unit of geography does present some challenges. In particular, the fact that the watershed types tend to be dispersed throughout Canada and do not form contiguous units that can be neatly tied to particular regions of Canada is problematic. In the same vein, these watershed types certainly do not conform to established and traditional political boundaries. In short, the watershed type represents a different geographical basis for presenting demographic and socioeconomic data. The utility of this new geography is likely to increase as watershed-based governmental structures that are responsible for water management issues become more established across Canada and require demographic and socioeconomic information that corresponds more with the boundaries of their jurisdictions.

Notes

1. We use the term ‘workforce’ to refer to the experienced labour force (Box 2) aged 25 to 64 years.
2. Occupations were grouped into 5 groups based on the types of skills normally required for these occupations (Alasia and Magnusson, 2005).
3. For the definition of the Low Income Cut-offs, see Statistics Canada (2002).