Who are the low skilled workers in NB?

1. Constructing Profiles of Low
Skilled Workers in NB
Dr. Philip Leonard
Erfan Mahmood Bhuiyan
PETL KT Day
September 10th, 2019

2. Introduction
New Brunswick
• Lowest median household income in Canada
• Highest rate of children living in low income households

3. Introduction
Primary Questions
• Who are the Low-Skilled Workers in New Brunswick?
• How have their profiles changed over time?
Why are these questions important?
• Clearer definition of LSWs
• More Targeted Programs

4. Methods
Definitions of “Low-Skill”:
1.Less than High School Certificate or its equivalent
2.National Occupation Classification (NOC) Skill level D
3.Lowest Income Quintile based on weekly earnings
Key variables:
Age, Sex, Industry, Work status, Ethnicity, Immigrant Status, Region of Residence
Data source:
1996, 2001, 2006, 2016 Census files and 2011 National Household Survey

5. Results
*Population includes 620,395 individuals aged 15 and above
Low Skill Definition No. of
Individuals
% of
Population*
Less than High School certificate or its equivalent (First Definition) 136,745 22.0%
National Occupational Classification Skill Level D (Second Definition) 64,610 10.4%
Weekly earnings less than $415 in 2016 (Third Definition) 73,210 11.8%

6. Results - Proportions
Proportion of individuals in New Brunswick that are “low skilled” since 1996 by three definitions
42.06%
38.91%
29.37%
24.89%
22.04%
10.24% 10.40%
17.36% 17.44%
15.95%
13.28%
11.80%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
1996 2001 2006 2011 2016
Less than High School certificate or its equivalent NOC Skill level D Earnings less than cut-off

7. Results – Proportions*
Age Group
• 15-24: 46% in 1996, 36% in 2016
• 25-55: 30% in 1996, 11% in 2016
• Persistent gap
Sex
• Female: 40% in 1996, 20% in 2016
• Male: 43% in 1996, 23% in 2016
• Higher for males by about 2.8% since 1996
*based on less than high school certificate definition

8. Results – Proportions
Industry
More than 20%:
• Accommodation and Food Services
• Natural Resources industry
Less than 5%:
• Finance, Insurance, Real Estate and Rental industry
• Professional, Scientific, Technical services industry
• Public Administration

9. Results – Proportions
Immigrant status
• Proportion higher for non-immigrants.
• Average gap around 12.5%.
Ethnicity
• Proportion is highest for indigenous people at around 30% in 2016
• Lowest for other ethnicities combined at 17% in 2016

10. Results – Proportions
Work status
• Proportion higher for those who work part-time.
• Average gap in proportions between full-time and part-time is 12%
Region of residence
• Proportion is higher for those who live in rural areas

11. Results - Income
Weekly (real) earnings of “low skilled” individuals in New Brunswick since 1996 by three definitions
657 656 679
745
785
563
525 503
535
590
443
487
222 230 242 237 254
1996 2001 2006 2011 2016
All individuals aged 15 and above Less than High School certificate or its equivalent
NOC Skill level D Earnings less than cut-off

12. Results - Income
• Age group – substantial difference between 15-24 and 25-55 year age groups
• Sex – Females earn substantially less
• Industries – Accommodation and Food Services, Arts & Entertainment, Retail Trade
• Immigrant Status – Immigrants
• Work Status – Part-time workers
• Region of Residence – Urban workers

13. Vulnerable low-skilled groups
• 15-24 year age group
• Females
• Individuals in certain industries
• Indigenous people
• Immigrants
• Individuals who work part-time

14. Conclusion
What are the next steps? Future directions?
• Analyze whether these groups are using current Government programs
• Examine the impact of existing programs aimed at these individuals
• Evaluate how current programs may be improved to better serve these groups

15. Thank you