Chapter C
Access to education, participation and progression

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C1. International students
C2. Transitions to the labour market

C1 International students

Context

This indicator presents the proportions of international and foreign students enrolled in tertiary education in accordance with the three International Standard Classification of Education (ISCED) categories,1 which represent enrolments in colleges and universities.2 Changes in the number of international and foreign students over time are also presented.3

Students choose to pursue their education abroad for many reasons. Some may do so because they wish to explore different cultures, societies and languages while improving their employment prospects. Others, particularly those in developing countries, may actually need to leave their home country to pursue a tertiary education. Growing recognition of the importance of tertiary education as a determinant of higher earnings and employability has led to a growing demand, one that educational institutions in some countries may find difficult to meet. At the same time, the globalization of markets has increased demand for workers with broader knowledge and competencies, with work increasingly performed by teams that span regions and countries.

International students are generally well received because they represent an additional source of revenue for the institutions they attend. They may also contribute to the viability of programs when the domestic student base is somewhat limited. In Canada, as in other countries that belong to the Organisation for Economic Co-operation and Development (OECD), many institutions and governments are now actively marketing their educational programs to attract such students. In addition to the economic benefits they may provide, international and foreign students also add to the social and cultural dimensions of the communities in which they study. They may become future citizens, or they may become unofficial ambassadors when they return home.

Observations

Proportion of international students in tertiary education

In Canada, international students accounted for 6.4% of all students enrolled in tertiary education in 2008, a proportion fairly similar to the average for OECD countries (6.7%) (Table C.1.1).4 For Canada, the concept of "international students" includes students who are not Canadian citizens and who do not hold a permanent residency permit in Canada (please see the "Definitions sources and methodology" section of this indicator for the detailed definition).

Across the provinces, there was little variation in the proportion of international students enrolled in the tertiary education systems, with the proportion falling within 1.5 percentage points of the Canada average in seven provinces. In Prince Edward Island (11.8%), New Brunswick (9.7%), British Columbia (8.2%), Nova Scotia (7.6%) and Manitoba (7.2%) international students accounted for a higher share of total tertiary enrolment than in Canada and OECD countries in general. The figures for Canada were drawn from the Postsecondary Student Information System (PSIS) (for more information see the "Definitions, sources and methodology" section for this indicator, as well as the "ISCED classifications and descriptions" for PSIS in the Notes to readerssection).

International students and type of tertiary education

In Canada, international students accounted for one-fifth (20.2%) of the enrolment in ISCED 6 (advanced research programmes), a much higher proportion of enrolment than in ISCED 5A (tertiary-type A) (6.9%) and ISCED 5B (tertiary-type B) (3.8%) programmes.5 This pattern is evident in almost all provinces (Table C.1.1; Chart C.1.1). Correspondingly, across the OECD countries in general, 17.5% of students in advanced research programmes were international students, as were 6.8% of tertiary-type A and 3.6% of tertiary-type B students. While patterns vary across OECD countries, in some countries, like Australia (a key competitor to Canada in the market for international students), high proportions of international students are enrolled in both tertiary-type A (21.7%) and advanced research programmes (26.3%).

Like Canada, all provinces but Nova Scotia registered a higher proportion of international students in advanced research programmes (ISCED 6) than OECD countries in general (17.5%). When compared with individual OECD member countries, Prince Edward Island, Saskatchewan, Manitoba, and Newfoundland and Labrador placed among those with the highest proportions of international students in advanced research programs: Switzerland (47.0%), United Kingdom (42.5%), New Zealand (34.5%). It should be noted that other Canadian provinces, despite registering lower proportions of international students, in fact, enrol higher absolute numbers of international students than the aforementioned provinces. For instance, the large majority of all international PhD students in Canada (almost 70%) attend postsecondary institutions in either Ontario or Quebec.

Generally, there was less variation across the provinces in the proportion of international students enrolled in the ISCED 5A and 5B programmes. In all provinces, they accounted for between 4.9% and 11.8% of tertiary-type A students, with New Brunswick, British Columbia and Nova Scotia registering the highest proportions. With respect to tertiary-type B programs, international students accounted for less than 5.4% of all students. The exception is Prince Edward Island, where 21.0% of tertiary-type B students were from abroad in 2008 (Table C.1.1; Chart C.1.1).

Table C.1.1 Student mobility and foreign students in tertiary education, and average annual growth rate for international and foreign enrolments, Canada and jurisdictions, 2008

Chart C.1.1 Percentage of international students in tertiary enrolments, by level of education, 2008

Change in the number of foreign students

The number of international students6 who were pursuing tertiary programmes in the country rose by 8.8% a year on average between 2001 and 2008 (Table C.1.1), with four provinces reporting higher average annual growth rates than the Canada average. During this period, the number of international students rose on average annually by 25.6% in Prince Edward Island, 18.1% in Manitoba, 17.7% in Newfoundland and Labrador and 12.7% in Ontario, while the rate for all other provinces varied between 0.0% and 8.2%.

Origins of international students in Canada

In 2008, the largest group of international students in Canada were from Asia; they accounted for almost half (47.2%) of all international students enrolled at the tertiary level. Students from China represented the largest group of international students from a single country of origin, accounting for 21.4% in Canada, followed by students from the United States (9.1%), France (6.4%), and India (3.7%).7

Stay rate of international students in Canada

The ability for a country to retain international students is a concept that also holds significant policy relevance in several countries including Canada. Education at a Glance (EAG) 2011 reports on the concept of "stay rate," which is the proportion of international students who change their student status to that of another residence status either during their studies or upon graduation. As reported, Canada's stay rate is high in comparison with several other OECD member countries; in 2008, the stay rate reached 33%.

Definitions, sources and methodology

This indicator examines the proportion of international and foreign students in the different categories of tertiary education. It also provides insight into the change in the number of international and foreign students between 2001 and 2008.

International students are those who, for the specific purpose of pursuing their education, go to a country other than their country of residence or the country in which they were previously educated. These students may be defined on the basis of either the country of which they were permanent residents or the country in which they were previously educated (regardless of their nationality). In Canada, this concept includes students who are not Canadian citizens and who do not hold a permanent residency permit in Canada. Foreign students are those who are educated in a country for which they do not hold citizenship. In Canada, as in other countries, this concept covers all students who are not Canadian citizens (it therefore includes permanent residents). International students are therefore a subset of foreign students.

The proportion of international students at a given education level is obtained by dividing the number of students who are not Canadian citizens and who are not permanent residents of Canada by the total number of students at that level, and multiplying this ratio by 100. The proportion of foreign students at a given education level is obtained by dividing the number of students who are not Canadian citizens by the total number of students, and multiplying this ratio by 100. The total number of students includes all individuals educated in Canada, whether they are Canadian citizens or foreign nationals, but it excludes all Canadian citizens who are educated abroad.

The Canadian data were drawn from Statistics Canada's Postsecondary Student Information System (PSIS), which only covers public postsecondary institutions. As not all institutions currently provide data to PSIS, results for some jurisdictions rely in part on estimates submitted to the institutions for validation. The data on foreign students and international students reflect the 2008/2009 academic year (2007/2008 for Canada) and are drawn from the UOE collection of statistical data on education, which was carried out by the OECD in 2010. In Canada and other OECD countries, domestic and international students are usually counted on a specific day or period of the year (e.g., the PSIS enrolment data reflect the number of students who were doing courses on October 31, 2007, for the academic year 2007/2008). This procedure may not capture the total number of international students as some students may study abroad for less than a full academic year (e.g., those that enter in the winter or spring terms).

Note: The corresponding OECD indicator is C3, Who studies abroad and where?.


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C2 Transitions to the labour market

Context

This indicator focuses on transitions from education to the working world. The percentages of individuals between 15 and 29 years of age who are considered to be "in education" or "not in education" are presented, along with their respective employment situations. Such information can be helpful in understanding how young people may combine school and work, as well as some of the transitions between the two.

In most Organisation for Economic Co-operation and Development (OECD) countries, including Canada, education policymakers strive to encourage young people to complete at least their secondary education. Recognition of the importance of postsecondary education for economic and social success—both for individuals and society—is also increasing. However, the decisions that young people make regarding their education may be influenced by economic conditions; for example, they may be inclined to leave school and enter the work force when the labour market is strong, and then continue their education when the labour market is weaker. Since many jobs now require more specialized knowledge than ever before, individuals with lower educational attainment are often comparatively disadvantaged.

Observations

In education, not in education

In 2009, according to data from the Labour Force Survey (LFS), the majority of 15- to 19-year-olds in Canada (80%) were still involved in education (Table C.2.1). This means, however, that the remaining 20% of these youth—one in five—were no longer pursuing a formal education, or were considered to be "not in education" at this time (Chart C.2.1). The figure may seem somewhat high at first glance, given that school attendance is compulsory until at least age 16 in most of Canada and until age 18 in Ontario and New Brunswick. However, this "not in education" category should not be considered to represent a "drop-out" rate for these young people, as many in this 15-to-19 age group may have actually graduated from high school but not pursued any further education.

Among OECD countries, an average of 16% of 15- to 19-year-olds were not in education—similar to the estimate recorded for the United States (15%).8 In comparison with Canada (at 20%), however, few other OECD countries had similarly high, or higher, proportions of young people "not in education.9 Norway and Spain, with 19% and 20%, respectively, reflected a situation similar to that of Canada's in 2009, as did Australia and the United Kingdom (22%). Only Israel (31%), New Zealand (27%), Mexico (39%) and Turkey (44%) registered proportions that were above these figures.

The proportion of Canadian 15- to 19-year-olds "in education" remained quite stable over the 1999-to-2009 period, at around 80% (Table C.2.2). In the OECD countries overall, the corresponding proportion rose from 80% in 1999 to 84% in 2009, indicating the growing recognition among today's youth that staying in school is important to their future.

The proportion of young people aged 15 to 19 who were "not in education" varied from one province to another in 2009, from 15% in Ontario to 26% in Alberta (Table C.2.1; Chart C.2.1). Differences in the condition of provincial labour markets (including unemployment rates) may explain some of the inter-provincial differences in youth participation in education. The corresponding estimates for the territories were also high, between 23% and 33%.

Table C.2.1 Percentage of 15- to 29-year-old population in education and not in education, by age group and labour force status, Canada and jurisdictions, 2009

Chart C.2.1 Percentage of 15- to 19-year-olds not in education (employed, unemployed, and not in the labour force), 2009

Employability affected

Owing to their youth, teens aged 15 to 19 often have both lower educational attainment and less work experience than young adults in their twenties. Those in the younger group who are not in school are more likely to be unemployed or not in the labour force (not looking for a job and not employed). These characteristics—being neither in employment nor in education or training (the NEET group)—identify a population of significant policy concern in OECD countries. In Canada in 2009, among 15- to 19-year-olds, about 3% were unemployed and "not in education" (Table C.2.1) and approximately 5% were "not in the labour force," meaning that they were not looking for a job, so were neither employed nor unemployed. When taken together and considered as a proportion of the 15- to 19-year-olds who were "not in education", the "non-employed" group (the unemployed together with those not in the labour force) accounted for 41% (Chart C.2.2; calculated using figures from Table C.2.1). This compares with about 19% among young people aged 25 to 29—a considerable difference. The rather wide gap of close to 23 percentage points indicates the relative difficulty that the younger group, which has lower educational qualifications, may encounter in finding employment or keeping a job.

Although any young adult who is no longer pursuing an education may face some problems with employability, it appears that Canada's 15- to 19-year-olds may fare slightly better than their counterparts in other OECD countries in terms of moving into the labour market. According to the latest OECD averages, the percentages of "non-employed" (i.e., the unemployed and those not in the labour force) for the 15-to-19 and 25-to-29 age groups were 53% and 23%, which yields a 30-percentage-point gap, notably higher than the approximately 23-point difference in Canada (Chart C.2.2). This indicates that, in Canada versus other countries, the 15- to 19-year-olds who are not in education are in a relatively stronger position than in some other countries when compared against those aged 25 to 29, who have likely attained a higher level of education. So, even though Canada has more not-in-education youth than other OECD countries, these 15- to 19-year-old Canadians seem to fare better in terms of integrating into the labour market.

Such estimates for the provinces also indicate some differences in the position of young adults in this non-employed, not-in-education category. For example, when compared against 25- to 29-year-olds, the 15- to 19-year-olds in Western Canada are in a relatively stronger position than their age-group counterparts in the east (Chart C.2.2). The 2009 percentage-point differences between the two young adult age groups range from around 14 to 18 in the four western provinces, and from around 27 to 34 in the remaining provinces. This, in combination with the relatively high employment rates for not-in-education 15- to 19-year-olds seen in the west (Chart C.2.3), indicates potentially stronger employability for this group in provincial labour markets that tend to attract more young people.

Table C.2.2 Trends in the percentage of 15- to 29-year-olds in education and not in education, by age group and labour force status, Canada and jurisdictions, 1999, 2001, 2003, 2005, 2007 and 2009

Chart C.2.2 Not in education, non-employed individuals aged 15 to 19 and 25 to 29 as a proportion of those not in education, 2009

Employment rates

An examination of employment rates among "not-in-education" Canadians aged 15 to 19 again reveals that the country fares well when placed among other OECD member countries. Considering the percentage of employed 15- to 19-year-olds in Canada (12%) as a proportion of the total for these ages who were no longer in education (20%) reveals an employment rate of 58% in 2009 (Chart C.2.3; calculated using figures from Table C.2.1). The latest comparable OECD employment rate for this group of 15-to-19-year-olds, 47%, is based on data from the member countries for which comparable data were available. In the United States, the rate was lower, at 42%, while the figures for the United Kingdom (56%) and Austria (59%) were similar to the rate for Canada. With its employment rate of 62% for 15- to 19-year-olds who were not in education, Australia fared better.

As observed with respect to the OECD countries, some provinces seem more successful than others in meeting the challenge of integrating young adults with relatively low educational attainment into the labour force. In the western provinces, the association of relatively high employment rates (approaching or around 70%) and relatively high proportions of young people not in education indicates that labour markets with shortages can draw and employ young people regardless of their educational attainment (Chart C.2.3). The situation in the other provinces appears more typical of the difficulties young people may expect when leaving the education system early, while the patterns in the three territories are somewhat different and not unexpected for the Canadian North.

Chart C.2.3 Percentage of 15- to 19-year-olds not in education and their employment rate, 2009

Definitions, sources and methodology

The indicator is calculated using cross-tabulations for the following variables: school attendance, labour force status, and age. Individuals are categorized by their education status (in education or not in education) and their labour force status (employed, unemployed, or not in the labour force). Distributions are shown for three separate young adult age groups: 15 to 19; 20 to 24; and 25 to 29). Some historical data are also presented.

The "in education" group captures both full- and part-time students, while "not in education" portrays those who are no longer pursuing a formal education. Employment status is based on International Labour Organization (ILO) guidelines. The employed are defined as those who during the survey reference week: (i) work for pay (employees) or profit (self-employed and unpaid family workers) for at least one hour; or (ii) have a job but are temporarily not at work (through injury, illness, holiday, strike or lock-out, educational or training leave, maternity or parental leave, etc.). The unemployed are defined as individuals who are, during the survey reference week, without work, actively seeking employment and currently available to start work. And not in the labour force captures individuals who are not working and who are not unemployed; i.e., individuals who are not looking for a job.

The data were obtained from Statistics Canada's Labour Force Survey (LFS), and they cover the first quarter or the average of the first three months of the calendar year, which excludes summer employment. The LFS does not collect data on official work-study programmes in which students might participate; in Canada, these would be considered education in the form of a co-op or student intern programme.

Note: The corresponding OECD indicator is C4, Transition from school to work: where are the 15-29 year-olds?

Notes

  1. Please see the "ISCED classification and descriptions" section in this report's Notes to readers for brief descriptions of the ISCED categories.
  2. In Canada, universities are located in the 10 provinces; there are no universities in the territories.
  3. For a related discussion, see Indicator A3, Tertiary graduation, which presents information on the impact of international students on tertiary graduation rates for the OECD, Canada, the provinces and territories.
  4. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  5. Although international students account for a larger share of students at the ISCED 6 (doctoral) level, a recent article from Statistics Canada indicates that between the early 1990s and 2008, there was a shift in the level of studies pursued by international students coming to Canada. The percentage of international students in Canada who pursued an education at the bachelor's level rose between 1992 and 2008 while it remained steady at the master's level and declined at the doctoral level. This shift toward a greater proportion of international students in Canada enrolling in a first degree program is masked by large increases in the overall numbers of students at the undergraduate level. For the complete article, see "A changing portrait of international students in Canadian universities" in Education Matters: Insight on Education, Learning and Training in Canada (Statistics Canada, Catalogue no. 81-004; Volume 7, number 6).
  6. The OECD at this time presents a time series for foreign students, but the preferred statistic from the Canadian perspective is the change in the number of international students.
  7. See Education at a Glance 2011: OECD Indicators, Table C3.2, Distribution of international and foreign students in tertiary education, by country of origin (2009). For other information on this topic, including the changing pattern of regions of origin over time, see "A changing portrait of international students in Canadian universities" in Education Matters: Insight on Education, Learning and Training in Canada (Statistics Canada, Catalogue no. 81-004; Volume 7, number 6).
  8. The international data presented in this report reflect the figures available from the OECD at the time of writing; however, the OECD may have made further final adjustments. For more detailed information on the latest international statistics, please refer to Education at a Glance 2011: OECD Indicators, available on the OECD's Web site: www.oecd.org.
  9. Data presented in Indicator A1 show that the attainment level of Canada's population as a whole is high relative to the OECD average. A recent Canadian study has also demonstrated the importance of "second-chance" programs in addressing the needs of the 20% who have left education between the ages of 15 and 19. While a portion of these individuals will have completed high school by age 19, others will have left early, without a high school credential. See Interrupting High School and Returning to Education, a Pan-Canadian Education Indicators Program (PCEIP) fact sheet, based on data from the Youth in Transition Survey (YITS) (released April 29, 2010, Statistics Canada Catalogue no. 81-582-X; available free on the Statistics Canada Web site at www.statcan.gc.ca).