Aboriginal Labour Market Performance in Canada

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Turtle Island Native Network
http://www.turtleisland.org

June 25th, 2012

The labour market performance of Aboriginal Canadians, excluding those living on-reserve, is "considerably worse than that of non-Aboriginal Canadians", according to a study by the Centre for the Study of Living Standards.

For urban Aboriginal Canadians generally, there is a double whammy - the unemployment rates rise and the employment rates drop.

However, for Metis - employment has risen, while for First Nations people living off-reserve, the rate of employment is significantly lower.

The labour market research also shows Aboriginal women doing better than Aboriginal men. Aboriginal women's unemployment rate is noticeably less than Aboriginal men, and Aboriginal women have a significantly higher employment rate than Aboriginal men.

There is some qualified optimism in the research. For example it says:
"Approximately 60 per cent of working age Aboriginal Canadians live in the West, compared to 30 per cent of working age non-Aboriginal Canadians. Since natural resource production is concentrated in this region, the outlook for the Aboriginal labour market will depend on commodity prices. From this geographical perspective, Aboriginal people may be well-positioned for future employment growth if commodity prices are strong."

( NOTE: Perhaps reading between the lines, this indicates Aboriginal Canadians ought to keep an open mind about the issues related to exploitation of natural resources, because that sector holds hope for stability for those already employed, and for future job prospects for the burgeoning young Aboriginal population. We know the forestry and mining sectors already are the largest employers of Aboriginal people in Canada. Obviously First Nations must continue to fight for rights related to resources in their territories, and press for more long-term and fair benefits and accommodation agreements with the resource-based industries - all the while keeping in mind, the significance of the old saying: "Don't Bite The Hand That Feeds You". )
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Ottawa - June 20, 2012

Aboriginal Labour Market Performance in Canada Deteriorates Since 2007

The Centre for the Study of Living Standards today released a major study entitled “Aboriginal Labour Market Performance in Canada: 2007-2011”, posted at
http://www.csls.ca/reports/csls2012-04.pdf

The study was funded by the Métis National Council. Using Statistics Canada’s Labour Force Survey (which excludes Aboriginal Canadians living on-reserve), the report provides a portrait of the Aboriginal labour market in 2011 and compares Aboriginal labour market performance to non-Aboriginal Canadians over the 2007-2011 period at the national level, and also by gender, age group, province, and main heritage group (First Nations or Métis).

The report also discusses the implications of future labour market developments for Aboriginal Canadians and for the labour market policies and programs that support their labour market performance. Key findings from the study are highlighted below.

In 2011, the labour market performance of Aboriginal Canadians, excluding those living on-reserve, was considerably worse than that of non-Aboriginal Canadians. The unemployment rate was 5.6 percentage points higher (12.9 per cent versus 7.3 per cent), the employment rate was 6.2 percentage points lower (55.8 per cent versus 62.0 per cent), and the participation rate 2.8 percentage points lower (66.9 per cent versus 64.1 per cent).

These figures would be worse if data for people living on-reserve were available from the Labour Force Survey.

Between 2007 and 2011 the labour market performance of Aboriginal Canadians deteriorated in absolute terms and relative to non-Aboriginal Canadians. The unemployment rate of Aboriginal Canadians rose 2.2 percentage points, the employment rate fell 2.2 percentage points, and the participation rate declined 0.9 percentage points. All these changes were worse than those experienced by non-Aboriginal Canadians.

The Métis greatly outperformed First Nations people living off-reserve on labour market indicators over the 2007-2011 period. Indeed, employment for Métis rose 7.4 per cent between 2007 and 2011, while it fell 2.7 per cent for First Nations people.

Aboriginal women perform much better on labour market indicators than men. Their unemployment rate in 2011 was 11.0 per cent compared to 14.7 per cent for men while
employment for Aboriginal women rose 4.5 per cent between 2007 and 2011, compared
to only 0.5 per cent for men.

Perhaps the most important factor for future Aboriginal labour market performance is the
state of the Canadian economy. If the Canadian economy thrives, then Aboriginal labour
market performance will be strong. On the other hand, if the Canadian economy enters
another downturn, then the Aboriginal labour market will also suffer.

Approximately 60 per cent of working age Aboriginal Canadians live in the West,
compared to 30 per cent of working age non-Aboriginal Canadians. Since natural
resource production is concentrated in this region, the outlook for the Aboriginal labour
market will depend on commodity prices. From this geographical perspective, Aboriginal
people may be well-positioned for future employment growth if commodity prices are
strong.

For further information, please contact:
Andrew Sharpe
Executive Director
Centre for the Study of Living Standards
710-151 Slater Street
Ottawa, Ontario K1P 5H3
613-233-8891
Andrew.sharpe@csls.ca

The Centre for the Study of Living Standards (CSLS) is a national, independent, Ottawa-based
not-for-profit research organization Its primary objective is to contribute to a better
understanding of trends and determinants of productivity, living standards, and economic wellbeing in Canada through research.