Education Indicators in Canada: An International Perspective, 2019
Chapter A
The output of educational institutions and the impact of learning

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A1 Educational attainment of the adult population

Context

This indicator provides a profile of the educational attainment of the adult population aged 25 to 64; that is, the percentage of that population that has successfully completed a certain level of education. For this international indicator, educational attainment reflects the highest level of education completed, based on the International Standard Classification of Education (ISCED) categories.^Note  As all subsequent indicators are examined by educational attainment within this international structure, this opening indicator, A1, sets the stage with an overview of the situation in Canada, including a breakdown of attainment by sex to reveal any gender differences. Information on generational differences reflects the shifts in educational attainment over time. Overall trends are also presented. This portrait of educational attainment places Canada and its provinces and territories in an international context.

Education helps give individuals the tools they need to participate in social and economic life and is key to the social and economic well-being of a country. As a large number of people in the 25-to-64 age range will have completed their formal education, this indicator provides some information on the skills and knowledge of this segment of the population, the core segment active in the labour market. Overall, the educational attainment of all individuals in the working-age population influences the competitiveness of economies and the prosperity of societies. Variations in attainment over time reflect differences in access to education, and indicate the evolution of knowledge available in the working-age population.

The distribution of educational attainment across Canada should not be considered an exact reflection of any educational system’s output because many other factors come into play; for example, differences in labour market and economic situations, in the relative magnitude of international and inter-jurisdictional migrations, and the overall mobility of students and workers.

Observations

• Almost six out of ten Canadians (58%) of the 25- to 64- year-old population had attained a tertiary level (college or university) education in 2018. Canada had the highest proportion of its population with a tertiary level of education among the G7 countries, with other countries ranging from 19% in Italy to 52% in Japan.
• Within Canada, tertiary level (college or university) education ranged from 33% in Nunavut to 64% in Ontario.
• A larger proportion of Canadians (26%) had attained a college qualification in comparison to the OECD of 7%.
• Among G7 countries, Canada had the highest proportion of its population with short-cycle tertiary education (college), with other countries ranging from 0% in Italy to 21% in Japan.
• At the university level, the proportion of Canadians with university as the highest educational qualification is the same as that of OECD at 32%.
• Ten percent of Canadians had attained a “postsecondary non-tertiary education”, which includes certificates or diplomas from vocational schools or apprenticeship training^Note . Among G7 countries, this is not a common level of attainment – only Germany had a substantial proportion of the population (12%) who had postsecondary non-tertiary education as their highest level of attainment.
• Eight percent of Canadians have not completed high school (“upper secondary”). Among G7 countries, Canada is comparable to the United States at 9% but significantly lower than Italy (38%), France and the United Kingdom (both at 21%).

Gender differences, G7 countries and OECD

• In Canada, there were more men (9%) that had less than high school (upper secondary) as their highest level of education than women (7%). These proportions were much higher at the OECD average, where 22% of men and 21% of women had less than a high school diploma in 2018.
• At the post-secondary non-tertiary level, which captures the traditionally male-dominated areas of trades, the proportion of men who had this level of education as their highest (14%) was double that of women (7%). This was not the case among the OECD countries, where the same proportion of men and women (6%) reported having post-secondary non-tertiary as their highest level of educational attainment.
• A larger proportion of women reported having college or university as their highest level of educational attainment, with the gap more marked at college (30% for women vs 22% for men) than university (35% for women vs 29% for men). For the OECD averages, women also outnumbered men with more women attaining a college (8% of women vs. 7% of men) or university degree (34% women vs. 29% of men) than men in 2018.

Tertiary attainment

• Among OECD countries, 7% of 25- to 64-year-olds, on average, had completed college programs in 2018, far fewer than the 26% reported for Canada. This number reflects Canada’s well-developed college sector.
• The corresponding OECD average for university (bachelor’s, master’s, doctoral or equivalent) was the same as Canada’s average at 32%.
• Within Canada, university attainment ranged from 15% in Nunavut to 35% in Ontario. For college, the numbers range from 18% in Nunavut to 31% in New Brunswick.
• Canada leads the G7 countries with the highest proportion of its population having attained tertiary education at 58% followed by Japan (52%) and the United States (47%). The comparable OECD average was 37%.

Generational differences in tertiary attainment

• Compared to all G7 countries and the OECD average, Canada had the highest proportion of people with tertiary education for all age groups.
• The proportions of Canadians with tertiary education were highest for 25-34 year olds (62%) and 34-44 year olds (64%) than for other age groups. This trend was observed in the majority of provinces and territories.
• Ontario had the highest proportion of its population aged 25 to 64 with tertiary education (64%).

• In all Canadian provinces and territories, a higher proportion of women than men had completed tertiary education. The largest gender differences were observed in the Northwest Territories (25 percentage points), Yukon (23 percentage points) and Saskatchewan (21%).
• Ontario and Nunavut had the lowest gaps between men and women aged 25 to 64 with tertiary education (10 percentage points).

• Among the jurisdictions, more men have attained post-secondary non-tertiary education as their highest level of educational attainment than women. In Germany, women were more likely to have completed non-tertiary post-secondary education at 15% compared to 9% for men. There are no differences found among the OECD when observing the proportion of men and women who have attained post-secondary non-tertiary (6% for both genders).
• Among the jurisdictions, various gender differences emerge at the post-secondary non-tertiary level, ranging from 4 percentage points in Ontario to 16 percentage points in Northwest Territories.
• Quebec had the highest proportion of women (14%) reporting post-secondary non-tertiary as their highest level of education followed by Saskatchewan (11%) and Newfoundland and Labrador (10%).
• Ontario, Nunavut and Northwest Territories had the lowest proportion (3% each) of women that have attained post-secondary non-tertiary as their highest level of education.
• The largest proportion of men reporting post-secondary non-tertiary as their highest level of education was found in Newfoundland and Labrador at 24%, followed by Saskatchewan ( 22%), Yukon (21%),  and Quebec and Alberta (both at 20%).

Trends in attainment levels

• In general, the annual growth rate of the highest level of education attained between 2005 and 2018 for 25- to 34-year-olds at tertiary level increased among all G7 countries.
• With the exception of the Northwest Territories, where the compound annual growth rate for 25- to 34-year-olds for tertiary education decreased by 0.7%, the increase in the compound annual growth rate ranged from 0.3% Nunavut  to 2.2% Newfoundland and Labrador from 2005 to 2018.
• There was a large decrease in the compound annual growth rate from 2005 to 2018 for 25-to-34-year-olds in attaining less than upper secondary education in British Columbia (-4.7%), Prince Edward Island (-3.9%), Newfoundland and Labrador (-3.3%), Yukon (-3.2%), Nova Scotia and Manitoba (-3.1% each). This trend was also evident among G7 countries where the annual compound growth rate ranged from -4.0% in the United Kingdom to -1.4% in Germany.

Definitions, sources and methodology

This indicator examines educational attainment among Canada’s adult population aged 25 to 64, by age group and sex. It presents a portrait of the situation in 2018, but also shows the evolution since 2005.

The percentage of the population represented by a given age group that has attained a particular education level is obtained by taking the number of persons in this age group who have received a diploma attesting to that level, dividing it by the total number of persons in this same age group, and then multiplying by 100.

Growth calculations in this indicator make use of the compound annual growth rate (CAGR) formula. The CAGR formula calculates growth between two (often extended) points in time, assuming that growth is compounded annually.

The education level corresponds to the highest level of education an individual has attained. The designation of the different levels of schooling is based on the International Standard Classification of Education (ISCED-2011) (see the “ISCED classifications and descriptions” and the “Mapping to ISCED” section for the Labour Force Survey [LFS] in Notes to readers). An individual must have successfully completed a programme at a given ISCED level to be considered as having attained that level of education. An individual who has not successfully completed a programme is assigned the preceding education level. For example, a secondary school graduate, as well as an individual who has undertaken some postsecondary education but who has not obtained a credential at that level, is considered to have attained ISCED level 3 (upper secondary education); a student who has not successfully completed secondary school is considered to have obtained ISCED level 2 (lower secondary education).

The information presented for Canada on population and educational attainment is based on data from the LFS, which surveys approximately 56,000 households every month.^Note  The LFS seeks to obtain a detailed and timely picture of the population aged 15 or older throughout the country. It allows proxy reporting, meaning that information on the entire household can be collected from a single member of the household. In all, this type of reporting accounts for approximately 65% of all information collected. Figures from the Organisation for Economic Co-operation and Development (OECD) are those reported by the OECD, and are drawn from OECD and Eurostat databases, as compiled from national labour force surveys or population registers.

Some limitations are encountered when using LFS data to examine and categorize educational attainment using ISCED as it is not possible to make a precise delineation between “postsecondary non-tertiary education” and “short-cycle tertiary education”. LFS data reported for the Canadian population that has attained ISCED level 5 (short-cycle tertiary education) will be somewhat overestimated because this category includes, for example, some CEGEP or college university transfer program graduates who, under the international classification standards, would have been placed in ISCED level 4 (Post-secondary non-tertiary education).

In Statistics Canada’s LFS the master’s or equivalent and doctors or equivalent levels cannot be cannot be identified separately educational attainment in the ISCED 8; therefore, educational attainment in the ISCED 7 and 8 (Master’s or equivalent and doctoral or equivalent) categories are combined.

Note: The corresponding OECD indicator is A1, To what level have adults studied?.

A2 On-time and extended-time high-school graduation rate

Context

High school graduation is an essential milestone for students, providing them with a foundation for postsecondary education as well as economic and social benefits for society. Graduation from high school is widely considered the minimum requirement for successful entry into the labour market.

Since 2018, a true-cohort methodology has been used to calculate on-time and extended-time high-school graduation rates. This pan-Canadian methodology has been developed with provinces and territories to respond to their needs while also improving Canada’s international reporting to the OECD.

For this indicator, on-time high-school graduation rates were calculated by tracking students who started Grade 10 (Secondary 3 in Quebec) in 2014/2015 and graduated Grade 12 / Secondary 5 by the end of the 2016/2017 school year (this is referred to as Cohort A). On-time high-school graduation rates are also provided for 2014/2015 by tracking the group of students who started Grade 10 / Secondary 3 in 2012/2013 (referred to as Cohort B). This 2012/2013 Grade 10 / Secondary 3 group is also tracked to determine the extended-time high-school graduation rates for 2016/2017, which is the percentage of the group that graduated high school within five years of starting Grade 10.

Observations

On-time high-school graduation rate

• In 2013/2014, 77% of students in Canada completed their high-school studies within the three year period after starting Grade 10 (Secondary 3). This rate increased by three percentage points  in 2016/2017 (80%).
• Across provinces and territories, the largest increases between the on-time high-school graduation rates from 2013/2014 to 2016/2017 was in Alberta with a difference of five percentage points, followed by Quebec (four percentage points) and Ontario (three percentage points). There was a small increase in the on-time high-school graduation rates for five provinces from 2013/2014 to 2016/2017, with British Columbia and Newfoundland and Labrador showing a slightly larger difference compared to the other three provinces (a two percentage point difference).

• In Canada in 2016-2017, a higher proportion of females (84%) completed high school on time than men (76%). This trend is observed in all provinces and territories.
• The largest difference in the on-time high-school graduation rate between males and females was found in Quebec with an 11 percentage point difference, followed by Ontario with a 7 percentage point difference. Prince Edward Island and Newfoundland and Labrador have much smaller discrepancies between female and male on-time graduation rates.

Extended-time high-school graduation rate

• In Canada,  the extended-time high-school graduation rate was 88% in 2015/2016, and increased by one percentage point to 89% in 2016/2017.
• Alberta experienced a 3 percentage point increase from 2015/2016 to 2016/2017 in their extended-time graduation rate.  New Brunswick experienced a large decrease (6 percentage points) in their extended-time high-school graduation rates between 2015/2016 and 2016/2017.
• There were no differences found when observing  the extended-time high-school graduation rates between 2015/2016 and 2016/2017 in Saskatchewan, Manitoba, Quebec, and Newfoundland and Labrador.

• In Canada, a larger proportion of female students (92%) graduated after the two-year extended period than that of males (86%).  The same trends can be observed in all provinces and territories.
• The gender differences were more visible in Quebec where females’ extended-time high-school graduation rates were approximately 12 percentage points above males’ rates. Prince Edward Island was the only province where male students outperformed females students by a difference of one percentage point.

On-time and extended-time high school graduation rate

• The additional two years to complete high school resulted in an increase of 10 percentage points for the extended high-school graduation rate compared to the on-time high-school graduation rate.  The additional proportion of students that graduated after the two-year extended period ranged from a two percentage point difference in New Brunswick to a 12 percentage point difference in Ontario.

Definitions, sources and methodology

This indicator presents the high-school graduation rate, using a true-cohort methodology for students in public and private schools.

The true-cohort methodology follows a cohort of students from Grade 10, or Secondary 3 in Quebec, to the end of their third year of high school, and then over a period of two additional years. Many students will graduate from Grade 12 (Secondary 5 in Quebec) after three years, but some students may take longer to complete their high school studies. Grade 10 / Secondary 3 is used as the starting point because this is the grade where students begin accumulating credits toward Grade 12 graduation in most provinces and territories. An adjustment is made to the graduation rate (using an attrition methodology) to account for students who can no longer be tracked toward graduation for the following reasons: moving out of the province or territory, moving to a band-operated school or an excluded private school, or becoming home-schooled.  These students have not dropped out of school, but would no longer be tracked through to graduation.

Graduation credentials

One of the objectives of the third data collection was to better understand differences in graduation credentials across provinces and territories and the prevalence of issuance of those credentials to inform comparability of the results at a pan-Canadian level. The following table shows the credentials that are included in the high-school graduation rate (i.e., Grade 12 or Secondary V).

A3 International students

Context

This indicator presents international students as a proportion of enrolment in tertiary education in accordance with the four International Standard Classification of Education (ISCED) categories,^Note   which represent enrolments in colleges and universities.^Note  Their distribution by province of study and by region of origin are also presented.

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. 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.

Several factors may contribute to the choice of country for study. The language spoken and used in instruction, the quality of education offered, the tuition fees and cost of living, and the immigration policy of the destination country are all important factors. Other factors include recognition of foreign degrees, future job opportunities, and any geographical, trade and cultural links between countries.

International students are 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 Organization 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

International students in tertiary education

• In 2016-2017, there were 214,383 international students studying in Canada. Ontario attracted the largest proportion of international students (43%), followed by British Columbia and Quebec (both with 19%).

• The majority of international students in tertiary education in Canada were registered in Bachelor’s or equivalent level programs. This was true for every province.
• The proportion of international students registered at the short-cycle tertiary level (college) varied greatly by province; accounting for almost a third in Ontario (32%) to only 2% in Newfoundland and Labrador.

• While the Canada figure for Doctoral or equivalent level programs (34%) is above the proportion observed for all OECD countries (22%) overall, there are variations across provinces, as this proportion ranges from 23% in Ontario to 53% in Newfoundland and Labrador.
• The percentage of international students rises with level of study at the university level (Bachelor’s, Master’s, and Doctoral levels), except in Nova Scotia where the proportion of international students at the Bachelor’s level (19%) was higher than for the Master’s level (17%).
• The highest proportions of international students at the college level were seen in British Columbia (20%), Ontario (18%) and Manitoba (18%), with all other provinces at or below 11%.

• In comparison to other G7 countries, Canada had a higher proportion of international students than Germany, Japan and the United States at all education levels. In the G7 countries, as is the case in Canada, the highest proportions of international students were observed at the doctoral level.
• Australia, while not a G7 country is included for comparison because it also hosts large numbers of immigrants.  In comparison to Canada, with the exception of doctoral, Australia had higher proportions of international students at all levels of education, especially at the master’s level where the proportion of international student (48%) exceeded all the G7 countries.

• The majority of international students in Canada were from Asia (64%).  Asia was the largest source region for every province except New Brunswick and Quebec.
• In New Brunswick, the primary region of origin was Africa (37%), followed by Asia (28%) then Latin America and the Caribbean (26%).
• In Quebec, the largest source region was Europe (44%), followed by Asia (26%), then Africa (18%).
• Africa was the second highest source region in 6 provinces, in addition to being first in New Brunswick.

• China was the top source country for international students overall (32%), and was top at each level of tertiary education except at the college level, where India (42%) came first.
• China, India, and France made it into the top 5 source countries for international students at all levels of tertiary education.

Definitions, sources and methodology

This indicator examines the proportion of international students in the different categories of tertiary education.

International students are those who are pursuing education in a country other than their country of residence or the country in which they were previously educated. In Canada, the concept of “international students” includes non-permanent residents^Note  , such as those with a study permit. It also includes those enrolled in a Canadian program from a Canadian institution that is not located in Canada (also known as “offshore students”) as well as non-Canadian students studying via the Internet.

Foreign students correspond to a broader concept that includes students who are educated in a country for which they do not hold citizenship. In Canada, the concept of “foreign students” includes all “international students”, plus all students who are landed immigrant/permanent residents^Note .

The proportion of enrolment at a given education level by international students is obtained by dividing the number of students who are neither Canadian citizens nor permanent residents of Canada by the total number of students at that level, and multiplying this ratio by 100. The total number of students includes all individuals educated in Canada, whether they are Canadian citizens, permanent residents or foreign nationals as well as “off-shore students”, but it excludes all Canadian citizens and permanent residents who are educated abroad.

The Canadian data were drawn from Statistics Canada’s Postsecondary Student Information System (PSIS), which covers only public postsecondary institutions. Results for some jurisdictions rely in part on estimates made for non-responding institutions. Due to certain methodological adjustments that have been made to the PSIS collection tool to improve reporting and mapping to ISCED, comparisons of results with those from previous years should not be made.

The OECD data on foreign students and international students reflect the same academic year as for Canada, and are drawn from the UOE collection of statistical data on education, which was carried out by the OECD. In Canada and other OECD countries, domestic and international students are usually counted on a specific day or period of the year (e.g., PSIS provides a count of students enrolled in public colleges and universities in Canada based on enrolment for a single date chosen by the institution that falls between September 30 and December 1). 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 B6, What is the profile of internationally mobile students?.

A4 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 adults may combine school and work, or how they may transition from one to the other. The “not in education” portion of this population is further examined with a focus on those individuals who are neither employed nor in education (or training), a group sometimes referred to as the “NEET” population.

In Canada and most other Organisation for Economic Co-operation and Development (OECD) countries, education policy-makers strive to encourage young people to complete at least their secondary education. As successfully reaching this milestone has become the norm for students in the majority of OECD countries, those who fail to do so will likely have much more difficulty when they enter the labour market, where lacking a high school education is usually an impediment to finding a job.

Recognition of the importance of postsecondary education for economic and social success—both for individuals and society—is widespread. However, the decisions that young people make regarding their education are often influenced by economic conditions.  They may, for example, be inclined to leave school and enter the work force when the labour market is strong, or they may decide to continue with or return to their education when the labour market is weak and it is more difficult to find a job.

The transition from school to work is not always an easy process, and complexity may be added by a combination of factors including personal circumstances, the type and length of schooling received, and the labour market and overall economic conditions that younger people may face. It is also important to find ways to understand how this complexity may affect the NEET group, particularly the youngest members, as teens aged 15 to 19 will have both lower educational attainment and less work experience than young adults in their twenties.

Observations

Young adults in education, not in education

• In 2019, the majority of young Canadians aged 15 to 19 (84%) were in school. For young adults, a higher proportion of adults aged 18 to 24 were in school (50%) in comparison to those who had transitioned to the labour market and were employed (38%). Among adults aged 20 to 24, the same proportions were observed between those in school and those who were employed (44%). For those in the 25- to 29-year-old age group, most (74%) were no longer in school and were employed.
• In 2019, the proportion of young Canadians “not in education, employment or training” (NEET) was higher for those aged 25 to 29 years (14%) than for those aged 18 to 24 years (12%), 20 to 24 years (13%) or 15 to 19 years (6%).

• At the national level, a larger proportion of young adults aged 18 to 24 were in school (50%) in comparison to those who had transitioned to the labour market and were employed (38%). This is in comparison to the OECD average, where a higher proportion of 18-24 year olds were in school (53%) in comparison to those were employed (33%). These percentages varied more widely at the provincial and territorial level.
• The proportion of young Canadians in education varied greatly among the provinces and territories, ranging from 24% in Nunavut to 54% in Quebec.
• Among young Canadians who had transitioned into the labour market and were employed, less variations among the provinces and territories were observed, ranging from 31% in Newfoundland and Labrador and Nunavut to 50% in Yukon.
• In Prince Edward Island, Manitoba, Saskatchewan and Northwest Territories, similar proportions of young adults were found among those in education and employed.
• The proportion of NEETs among 18- to 24-year-olds ranged from 10% in Quebec to 46% in Nunavut. The Canadian average was 12%, lower than the OECD average of 14%.

Not employed, not in education (NEET)

• In 2019, 11% of Canadians 15 to 29 years were not in education, employment or training (NEET), similar to the OECD average of 13%. However, there is greater variability between the countries. Among the G7 countries, Italy had the highest rate of NEET (24%) while Germany had the lowest rate of NEETs (9%).

Not employed, not in education (NEET) by sex

• In 2019, 11% of women and 12% of men in the 15-to-29 age group were not in education, employment or training (NEET) in Canada. At the Canadian average, a greater proportion of men (5%) than women (3%) were unemployed, whereas a larger proportion of women (8%) were not in the labour force compared to men (6%). This trend was observed in all provinces and territories, with the exception of the New Brunswick where more men were not in the labour force.
• A similar trend was observed across the OECD average where 5% of men and 4% of women were unemployed. There remains a significant difference between the proportion of women (12%) and men (5%) who were not in the labour force.
• The proportion of women and men who are not in the labour force, varied among the jurisdictions, ranging for men from 5% in Quebec and Saskatchewan to 27% in Nunavut, and for women from 6% in Quebec to 25% in Nunavut.

Trends in NEET (Not employed, not in education) proportions

• From 2000 to 2019, there has been an increase in the proportion of 18- to 24-year olds in Canada that are in school (44% in 2000, 50% in 2019).
• A smaller proportion of young Canadians (12%) were not in school and unemployed in 2019 than was the case in 2000 (15%).

Not employed, not in education (NEET) by highest level of education

• In Canada in 2019, the proportion of 25- to 29-year olds who were not in education and were unemployed or not in the labour force (NEET) was highest for individuals with below upper secondary education (36%), lower for those with upper secondary and postsecondary non-tertiary education (19%), and lowest for those with tertiary education (10%). This pattern was the same in all provinces and territories.

Definitions, sources and methodology

The indicator is calculated using cross-tabulations for the following variables: school attendance, labour force status, sex, age (15 to 29 overall; 15 to 19; 18 to 24; 20 to 24; and 25 to 29) and educational attainment (highest level of education attained). 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). 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. As per the OECD definition, the educational institutions considered for this indicator are primary and secondary educational institutions, colleges and universities. 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.

In addition to those who are employed, the total “not in education” portion of the 15- to 29-year-old population also includes those who are neither employed nor in education (or training). Such individuals are sometimes referred to as the “NEET” population. This captures a somewhat diverse group of young people in a number of possible situations. Some may be part of this group by choice, perhaps taking time off work and/or school to travel or to start families and care for their young children. Some might prefer to be working, but have abandoned the job search temporarily. These people would be seen as “not in the labour force”^Note  as opposed to those who are seeking work but are unemployed. The group of people who are not in education and are either “unemployed” or “not in the labour force” is a population that could potentially be at risk for economic and social difficulties.

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 A2, Transition from school to work: Where are today’s youth?.

A5 Labour market outcomes

Context

This indicator examines the connection between educational attainment and the labour market by looking at employment rates among the adult population aged 25 to 64. This relationship is explored by sex and by age group (25 to 34 and 55 to 64). Trends in employment rates by educational attainment are also presented. Educational attainment reflects the highest level of education successfully completed, based on the International Standard Classification of Education (ISCED) categories.^Note 

One of the main objectives of education systems is to prepare individuals so they can participate in a knowledge-oriented economy and society. Job prospects and employment rates are generally better for those individuals with higher education.

Observations

Employment rates rise with higher levels of education

• Employment rates rose with levels of educational attainment both in Canada and at the OECD average.
• In Canada and for the OECD average, women had consistently lower employment rates than men.
• This gender gap in employment rates in Canada was largest (19 percentage points) among those with the least education and smallest (6 percentage points) among the men and women with bachelor’s or equivalent.^Note    This was also true at the OECD average, with a larger gap between men and women at the below upper secondary level (21 percentage points) and a smaller gap at the Bachelor’s or equivalent (8 percentage points).

• Employment rates also rose with levels of educational attainment across all provinces, territories, G7 countries and at the OECD average. However, the magnitude and the nature of the educational advantage varied among the Canadian jurisdictions.
• Although tertiary graduates generally had the highest employment rates (83%) in 2018, this was not true in Alberta, British Columbia and the Yukon, where adults with postsecondary non-tertiary had equal to or higher employment rates.
• Employment rates for Canadians with tertiary education were comparable to those of G7 countries, with Canada’s employment rate being slightly higher than Italy or the United States, but lower than that of France, Germany and the United Kingdom.
• Employment rates for Canadians with less than upper secondary education ranged widely across the country, from 40% in Newfoundland and Labrador to 73% in the Yukon.

Employment rates by attainment and age group

• The difference in employment rates between young tertiary-educated men and women in Canada was smaller than observed at the OECD average, but similar to that observed in France and Italy.  The largest gap in employment rates for this age group was observed in Japan (13 percentage points). 
• In 2018, the employment rate was high among young adults with tertiary education in Canada. The employment rate was highest in Yukon and Northwest Territories (92%)
• With the exception of Newfoundland and Labrador, employment rates were higher for men than women in all provinces and territories. The rate ranged from 80% to 95% for men and from 82% to 91% for women.

• For the tertiary-educated population aged 55 to 64, the employment rate for men was higher than that for women in Canada, and at the OECD average.  The gap between employment rates of men and women in Canada was smaller than it was at the OECD average, but identical to that of the United Kingdom (8% percentage points).  The largest difference between employment rates was observed in Japan (25 percentage points).
• In 2018, the employment rate of the 55 to 64 year old population with tertiary education among the provinces and territories, ranged from 56% to 87%.

Employment rates by attainment, 2009 and 2018

• In 2018, 87% of young adults with non-tertiary post-secondary education were employed, compared to 83% in 2009.
• Employment rates for young adults with below upper secondary or upper secondary during the two periods were more similar.
• Quebec and British Columbia are the only provinces where the employment rate for young adults who did not have a high school diploma rose over this time period.  In all other provinces and territories, this proportion declined. 

• In Canada, for 55- to 64-year-olds, the employment rate at every level of education was higher in 2018 than 2009, indicating that this generation continues to work beyond age 55, postponing their retirement.
• Over this ten year period, the increase in the employment rate was highest for the post-secondary non-tertiary level in Prince Edward Island (19 percentage points) and for those with less than high school in the Yukon (14 percentage points).

Definitions, sources and methodology

This indicator, labour market outcomes, examines the relationship between educational attainment and the employment rates of 25-to 64-year-olds, overall, by sex, and by age group. It also provides insight into how this relationship has evolved over time.

The employment rate represents the percentage of employed people in this population. To calculate the employment rate for a group with a particular level of educational attainment, the number of employed persons with the particular level of educational attainment is divided by the total number of persons in the population aged 25 to 64 who have attained that education level and then multiplying this quotient by 100.

The concepts and definitions of “employment” and “unemployment” adopted by the Labour Force Survey (LFS) are based on those endorsed by the International Labour Organisation (ILO). Employed persons are those who, during the reference week: (1) did any work at all at a job or business, that is, paid work in the context of an employer-employee relationship, or self-employment. It also includes unpaid family work, which is defined as unpaid work contributing directly to the operation of a farm, business or professional practice owned and operated by a related member of the same household; or (2) had a job but were not at work due to factors such as own illness or disability, personal or family responsibilities, vacation, labour dispute or other reasons (excluding persons on layoff, between casual jobs, and those with a job to start at a future date). The education level is measured according to the highest level of schooling completed.

The data for Canada and its provinces and territories were drawn from the Labour Force Survey (LFS), which surveys approximately 56,000 households every month.^Note  The LFS excludes the following from the scope of the survey: individuals who live on reserves or in other Aboriginal settlements in the provinces, full-time members of the Canadian Forces and institutional residents. The LFS employment rate is based on a monthly average from January to December. Figures from the Organisation for Economic Co-operation and Development (OECD) are those reported by the OECD, and they are extracted from the OECD and Eurostat databases compiled from national labour force surveys for the OECD member countries.

Note: The corresponding OECD indicator is A3, How does educational attainment affect participation in the labour market?.