This document summarizes findings from a study on the early career earnings of trade certificate holders in Canada. Key findings include:
- Journeypersons earn between $62,200-$71,600 on average annually, with Red Seal trades earning slightly more at $64,000-$73,800.
- Male journeypersons earn significantly more than female journeypersons, between $67,200-$77,000 compared to $31,400-$35,700.
- Earnings vary substantially between different trade categories, with mechanical, electrical, and metal trades earning the most on average and other trades like hairstylist earning the least.
- Completing an apprenticeship leads to higher earnings than qualifying as a journey
1. How Much
Do They Make?
New evidence on the early career earnings of
trade certificate holders
Ross Finnie, Michael Dubois, and Masashi Miyairi
2. Outline
• What is EPRI?
• How Much Do They Make Series
• Skilled trades
• Data and analytical approach
• Earnings results
• Overall, by category, and by trade
• PSE graduate comparisons
• Next steps
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3. What is EPRI?
• The Education Policy Research Initiative
• National research group based at the University of Ottawa
• Main themes: education, skills, and the labour market
• Research that informs policy discussions
• Expertise in complex longitudinal datasets
4. How Much Do They Make Series
• Partnership between EPRI and LMIC
• Objective
• Inform stakeholder decision with timely earnings information
• With timely, evidence on early career earnings
• Two reports
• PSE credentials (from certificate to Ph.D.)
• Skilled trades certifications
• Myriad of related materials
• Earnings dashboards, infographics, videos and blogs, media coverage
5. How Much Do They Make Series
• Education and Labour Market Longitudinal Platform (ELMLP)
• PSE administrative data (PSIS)
• information on trades training (RAIS)
• tax data (T1FF)
• Heavily influenced by past EPRI work
• uOttawa pilot PSE administrative data linked to tax data
• ESDC-EPRI Barista or Better Project, 14 institutions
6. Skilled Trades
• 1 out of 5 Canadians work in the skilled trades
• Literature on LMO of journeypersons pales in comparison to PSE
graduates’
• Past studies finds:
• Small share of women, gravitate to low earning trades
• Earnings vary significantly from year to year, more so than PSE graduates
• Male-dominated trades earn more than female-dominated ones
• Journeypersons, on average, earn more than PSE graduates, at first.
7. Data and Analytical Approach
• 2008 onward
• Virtually complete coverage
• Demographic and Program information
• Gender
• Province
• Age
• Trade code
• Program duration
• Registration status
• Date of certification
• Red Seal endorsement
Registered Apprenticeship Information System (RAIS)
8. Data and Analytical Approach
• Earnings, other employment income, # T4 slips
• Self-employment income
• EI, SA & CTB
• PSE tax credits
• CPP/QPP & RPP contributions, union dues
• NAICS: main, second, #
• Province & tax prov.
• Sex & age
• # of children, family type/size
T1 Family File (T1FF)
9. Data and Analytical Approach
• Occupation
• Other job characteristics, including indicators of job quality
• Hours/weeks worked (voluntarily or involuntarily)
• No PSE or trade certification comparison
• Rate of return
• Workers’ skills
• Limited post-graduation coverage
Data Limitations
10. Data and Analytical Approach
• Cohort-by-cohort
• Year-by-year after graduation
• First at the overall credential level
• Then by journeyperson characteristics
Tracking post-graduation earnings
11. Data and Analytical Approach
• Journeypersons certified between 2008-2016 (*2009)
• Annual earnings through 2017 (reported in $2016 to match PSE report)
• Three Restrictions
1. Non-tax-filers removed (for that year) (6%)
2. Less than $1,000 annually (for that year) (2-6%)
3. Indication of further PSE/training (from there onward) (3-16%)
Sample
12. Data and Analytical Approach
employment income
positive net self-employment income
"Indian exempt" employment income
other employment income
E A R N I N G S
Earnings Measure
13. Trades and Trade Categories
• RAIS: 385+ trades
• 56 Red Seal Trades
Common standards to
assess the skills of
tradespeople across Canada
14. Trades and Trade Categories
Architectural & Construction Trades (12)
• Bricklayer, Carpenter, Roofer,
Electrical Trades (4)
• Construction electrician, Powerline tech.
Mechanical Trades (10)
• Gasfitter, Plumber, Sprinkler fitter
Metal Trades (9)
• Boilermaker, Ironworker, Machinist,
Vehicle & Related Trades (15)
• Parts technician, Heavy equipment operator
Other (6)
• Appliance service tech, cook, baker, hairstylist
15. Distribution of Journeypersons
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All Female Male
# Distribution Share Distribution Share Distribution
All Trades (385) 40,900 100.0% 8.8% 100.0% 91.1% 100.0%
Electrical 6,430 20.0% 1.4% 3.2% 98.6% 21.6%
Metal 5,280 16.4% 2.3% 4.2% 97.7% 17.6%
Mechanical 5,440 16.9% 1.3% 2.5% 98.7% 18.3%
Other 3,440 10.7% 67.4% 82.0% 32.6% 3.8%
Vehicle & Related 5,450 16.9% 2.2% 4.2% 97.8% 18.1%
Trade Category
Architectural & Construction 6,200 19.3% 1.8% 3.9% 98.2% 20.7%
Red Seal Trades (56) 32,200 78.7% 8.8% 78.6% 91.3% 78.9%
16. 16
Mean Earnings
All Trades and
Red Seal Trades
• All Trades (385+)
• $62,200 - $71,600
• RS Trades (56)
• $64,000 - $73,800
• 3% avg. difference
• Non-RS Trades
• $55,500 - $62,500
• 2014, Energy sector decline
$-
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
1 2 3 4 5 6 7 8
All Trades Red Seal Trades Non-Red Seal Trades
17. 17
Mean Earnings
Male vs Female
• Women
• $31,400 - $35,700
• Men
• $67,200 - $77,000
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
$90,000
1 2 3 4 5 6 7 8
Female Male
25. 25
Mean Earnings
Mechanical
Trades
90%
• 28% Plumber
• 21% Gasfitter – Class A
• 21% Steamfitter/Pipefitter
• 11% Refrigeration and Air
Conditioning Mechanic
• 8% Instrumentation and Control
Technician
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
1 2 3 4 5 6 7 8
Gasfitter - Class A Instrumentation and Control Technician
Plumber Refrigeration and Air Conditioning Mechanic
Steamfitter/Pipefitter
27. 27
Mean Earnings
Vehicle &
Related Trades
87%
• 40% Automotive Service Technician
• 21% Heavy Duty Equipment
Technician
• 16% Truck and Transport Mechanic
• 5% Motor Vehicle Body Repairer
(Metal and Paint)
• 5% Mobile Crane Operator
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
1 2 3 4 5 6 7 8
Automotive Service Tech Heavy Duty Equipment Tech
Mobile Crane Operator Motor Vehicle Body Repairer
Truck and Transport Mechanic
29. Next Steps
• Modelling framework
• Red Seal, specific trades, completers and non-completers,
combinations of trades and PSE training, mobility, etc.
• Ongoing data enhancements
• Comprehensive and timely information
• A tool to assess the impact of COVID, albeit after the fact
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