Graduates. in the economy Environmental Scan 2011
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1 Graduates in the economy 2011 Environmental Scan 2011
2 Graduates in the economy Highlights Ontario s extensive public college system provides the province with a large skills advantage compared with the United States and an even stronger advantage compared with Europe. Ontario has a higher employment share than the United States in high wage industries: information, manufacturing, resources, financial activities, construction and utilities. A higher share of Ontarians than Americans aged 25 to 44 are employed, due primarily to the success of college graduates. Ontario college graduates play a leadership role in small businesses. In comparison, university graduates are more numerous in the public sector, head offices and other large enterprises. Outside of Toronto and Ottawa, college graduates, including tradespersons, constitute the largest proportion of skilled employees in the province. Access to a Canadian postsecondary credential is particularly important to underrepresented groups, such as recent immigrants and aboriginals. As well, although employees without postsecondary education may be at risk as the economy continues to demand higher skills, Canadian workforce training is still focused primarily on those who already have postsecondary credentials. Moreover, Canadians who are unemployed or not in the workforce are much less likely to receive training than those who are employed Environmental Scan Colleges Ontario Graduates in the economy 1
3 Section 1.1: Inter-jurisdictional comparisons Population with postsecondary education, ages 25-44, 2008 Canada 29% 21% U.S. 33% 10% Degree Diploma Europe 23% 8% Per cent Note 1: This data excludes OECD-defined Postsecondary non-tertiary i.e. postsecondary programs of one year or less, and most apprenticeship programs, which for Canada include 12 per cent of the population age 25-44, but for the U.S. is much smaller and data is not generally available. Note 2: Europe includes Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Italy, Ireland, Luxembourg, the Netherlands, Poland, Portugal, the Slovak Republic, Spain, Sweden and the United Kingdom. Source: OECD. Education at a Glance Table T A1.3a. Canada s highly skilled population provides it with a strong advantage compared with the United States and an even stronger advantage compared to Europe. Canada s share of population, ages 25-44, with a university degree or higher has almost reached the U.S. level Environmental Scan Colleges Ontario Graduates in the economy 2
4 Population with postsecondary education, ages 25-44, per cent, 2010 Ontario 10.4% 23.5% 34.9% Advanced degree Bachelor s degree U.S. 10.3% 22.8% 10.0% Diploma/certificate Per cent Sources: Statistics Canada Table and U.S. Bureau of Labour Statistics. Current Population Survey. Table 10: Employment status of the civilian population by educational attainment, age, sex, race, and Hispanic or Latino and non-hispanic ethnicity. Average annual Ontario s extensive college system provides the province with a large skills advantage compared with the U.S. Sixty-nine per cent of Ontario s population aged 25 to 44 has a recognized postsecondary credential, compared with 43 per cent of the comparable U.S. population. Ontario s share of degrees and advanced degrees is higher than the rest of Canada, and comparable to the U.S. share for those aged 25 to 44. º With its new emphasis on advanced degrees, Ontario is showing signs of pulling ahead of the U.S Environmental Scan Colleges Ontario Graduates in the economy 3
5 Employment rates for the U.S. and Ontario by educational attainment, ages 25-44, 2010 U.S. Ontario 100% 90% 80% 80% 84% 84% 85% 80% 70% 69% 71% 75% 60% No PSE Diploma/certificate Degree Total population Sources: Statistics Canada Table and U.S. Bureau of Labour Statistics. Current Population Survey. Table 10: Employment status of the civilian population by educational attainment, age, sex, race, and Hispanic or Latino and non-hispanic ethnicity. Average annual In both Ontario and the U.S., a postsecondary credential increases employability substantially. In Ontario, in 2010, about 85 per cent of the population age 25 to 44 with postsecondary credentials were working, while only 71 per cent of those without postsecondary credentials were working. In the U.S., with a deeper recession, there was a deeper drop in employment rates, especially for those without postsecondary credentials Environmental Scan Colleges Ontario Graduates in the economy 4
6 Employment share of above average wage industries: Ontario, rest of Canada, U.S., 2009 Ontario 62% Rest of Canada 58% Above average wage/skill U.S. 52% Per cent Note:.2009 Ontario, Rest of Canada and U.S. employment distribution by industry weighted by 2009 U.S. average weekly wages......industries from highest to lowest U.S. wages:.....above average: utilities, mining and logging, information, financial activities, wholesale trade, manufacturing durable,.....professional and business services, construction, manufacturing non durable and transportation and warehousing......below average: health services, other services, retail trade and leisure and hospitality......excludes: education and public administration. Sources: U.S. BLS. Employment, Hours, and Earnings from the Current Employment Statistics survey (National), Statistics Canada Table Colleges Ontario. Ontario s huge skills advantage over the U.S. benefits Ontario industries requiring high skills, which are much larger, relatively, than their U.S. counterparts. Ontario has a higher employment share than the U.S. in high wage industries: information, manufacturing, resources, financial activities, construction and utilities Environmental Scan Colleges Ontario Graduates in the economy 5
7 Section 1.2: Employment concentrations of Ontario college graduates Postsecondary employment by sector. Ontario, thousands, 2006 Diploma/certificate Degree College-intensive Manufacturing & resources Health & social assist Wholesale & retail Construct, transp & utilities Admin & other services Tourism (Hospitality) Local public admin College and university Financial activities Information & culture Provincial public admin University-intensive Prof scientific & tech Education Federal public admin Source: Statistics Canada Census. Employment by industry and educational attainment. Ontario s college graduates play a critical role in export industries (manufacturing, resources and tourism), electric power generation and transmission, real estate and insurance, infrastructure and health care. The broader public sector (educational services, health and social services, and public administration) employs almost twice the concentration of degrees and three times the concentration of advanced degrees as the private sector Environmental Scan Colleges Ontario Graduates in the economy 6
8 Diploma/certificate holders as a share of employees with postsecondary credentials, by firm size, 2006 Under 20 employees 64% employees 61% employees 58% 500+ employees 50% Per cent Source: Statistics Canada, 2006 special tabulation (labour force) and Colleges Ontario. Private sector employers, excluding professional and scentific services. Ontario college graduates also play a leadership role in small businesses. In comparison, university graduates are more numerous in head offices and other large enterprises Environmental Scan Colleges Ontario Graduates in the economy 7
9 Distribution of population, ages 25-44, with postsecondary credentials, by Ontario urban area, 2006 Trade Certificate/diploma Bachelor s degree Advanced degree Ottawa 5% 27% 27% 16% Toronto 5% 26% 25% 14% Rest of CMAs 8% 31% 15% 9% Rest of Ontario 11% 31% 9% 4% Per cent Source: Statistics Canada Census. Employment attainment by community. Outside of Toronto and Ottawa, college graduates, including tradespersons, constitute the largest proportion of skilled employees in the province. Due largely to the requirements of the federal government, Ottawa has the greatest concentration of degrees and advanced degrees among Ontario urban areas. Toronto, due largely to its concentration of head offices, postsecondary institutions and government, also has a high level of degree and advanced degree holders Environmental Scan Colleges Ontario Graduates in the economy 8
10 Section 1.3: Educational attainment and employment status for under-represented groups Employment rates by immigrant status and educational attainment, Ontario, ages 25-44, 2006 PSE-Canadian PSE-Foreign No PSE 75% Immigrants up to 5 yrs 60% 71% Immigrants 5-10 yrs 66% 81% 80% Non-immigrants 77% 85% 87% Per cent Source: Statistics Canada Census Immigrant and non-immigrant population. Immigrants (ages 25 to 44) without postsecondary credentials have a very difficult time finding work, especially in their first five years in Canada. Immigrants (ages 25 to 44) with Canadian postsecondary credentials have greater success in getting jobs than those with foreign credentials. Both groups have less success than Canadian-born workers with postsecondary credentials Environmental Scan Colleges Ontario Graduates in the economy 9
11 Section 1.4: Workforce training Canadian participation in formal and/or non-formal education, by educational attainment, % 60% 50% 57% 40% 30% 36% 20% 10% 0% 22% Below upper secondary education Upper secondary and postsecondary non-tertiary education Tertiary education Source: OECD Education at a Glance, Table T A5.1b While studies show that the jobs of employees without postsecondary education may be at risk as the economy continues to demand higher skills, Canadian workforce training is still focused primarily on those who already have postsecondary (i.e. tertiary ) credentials 57 per cent of these workers participate in educational activities annually. One-third (36 per cent) of those who have completed high school, but do not have postsecondary credentials, participate in educational activities annually. Less than one-quarter (22 per cent) of those who have not completed high school participate in educational activities annually Environmental Scan Colleges Ontario Graduates in the economy 10
12 Canadian participation in formal and/or non-formal education, by labour force status, % 40% 47% 30% 20% 10% 29% 19% 0% Employed Unemployed Not in the labour force Source: OECD Education at a Glance, Table T A5.1d (Web) Canadians, who are unemployed or not in the workforce, are much less likely to receive training than those who are employed Environmental Scan Colleges Ontario Graduates in the economy 11
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