Study: Changing patterns of women in the Canadian labour force

2005

The rising number of women in the labour force has been, for a long time, the primary source of increased labour supply for the Canadian economy. But, while the participation rates of women remain high, they have, however, declined in recent years, according to a new study published today in the Canadian Economic Observer.

Most of this slowdown has been concentrated in the Prairies and British Columbia, aggravating the shortage of labour in these areas. In the East, women continued to enter the labour force in growing numbers, especially in Quebec.

The increase in participation rates in the East appears associated with the greater use of day care and higher education levels in Quebec, lower birth rates in the Atlantic provinces, and also with age, types of jobs created and an overall lower proportion of immigrants in the East than in the West.

The most striking gap in the trend of participation rates between East and West is for women with children under the age of six. In Alberta, for instance, the participation rate of these women fell by a full percentage point in 2005 to 64.9%, three points lower than its peak in 1999, and 10 points below the rates in Quebec and Atlantic Canada.

If the participation rate of women with young children in Alberta and British Columbia had risen in tandem with Quebec, 30,000 more women would be in their labour forces in 2005. In Alberta's red hot labour market, this increase in the labour force would have boosted the employment rate for 15 to 64 year olds by a full percentage point. This is considerable given Alberta's unemployment rate.

In 1992, the Prairies ranked first in the participation rate of women with children less than six years of age, while Quebec was last. In 2005, Quebec came first and the Prairies last. British Columbia had the second lowest participation rate, while the Atlantic provinces had the second highest.

The Prairies have the highest birth rate in the country. In particular, Alberta women may have left the labour force to look after their children full time since it is the only province where the number of children aged 0 to 5 increased after 1999. But, while it had more infants, Alberta has the smallest share of children in day care.

Mothers in the labour force in Quebec multiplied rapidly after its $5 a day universal care system was introduced in 1997. Between 2001 and 2004, about 60% of all day care spaces added in Canada were in Quebec, which now has 43% of all children registered in day care. In 2003, the share of children in Quebec's day care almost doubled the national average.

Different education levels also affected the trends of women's labour force participation in Eastern and Western Canada. Quebec has pulled ahead in post-secondary education, while for young women in Alberta and British Columbia, post-secondary enrolment was lower than in the rest of the country.

The population's age structure as well had a considerable impact on participation rates. From 1999 to 2005, almost 80% of the women's labour force growth was accounted for by women aged 45 to 64. This group expanded by 721,000 from 1999 to 2005, with half 55 years old or over.

These trends were amplified in the West. On the Prairies, the women labour force 25 to 44 fell 25,000 after 1999, while 45 to 64 year olds increased 123,000. The women population aged 25 to 44 also fell markedly in British Columbia, while 45 to 64 year olds women increased 112,000. As well, British Columbia posted a sharp decrease in young women in the labour force. On the other side, Ontario and Quebec boosted the labour force for all age groups, even as the number of women aged 25 to 44 fell.

Differences in the type of jobs created may also help explain changes in the East and West participation rates. The resurgence of the Prairie and British Columbia's resource sectors has generated jobs in areas where women have less of a presence, notably mining, transportation and manufacturing. Between 1999 and 2005, blue-collar jobs held by men and white-collar jobs for women in British Columbia and the Prairies rose at a similar rate. In Quebec and the Atlantic provinces, white collar jobs for women grew three times faster than blue collar jobs held by men.

Participation rates for women in Quebec and the Atlantic provinces also were higher because they have fewer immigrants than the rest of the country (immigrants' participation rates are lower than for native-born women).

About 20% of women aged 25 to 44 were immigrants, ranging from 30% in Ontario and British Columbia to 17% in Alberta to around 10% in Quebec and Atlantic Canada. If the participation rates of immigrant women equalled the native born, almost 200,000 more women would be in the labour force.

The study "From she to she: Changing patterns of women in the Canadian labour force" is included in the June 2006 Internet edition of Canadian Economic Observer, Vol. 19, no. 6 (11-010-XIB, free), which is now available online from the Our products and services page of our website. The monthly paper version of Canadian Economic Observer, Volume 19, no. 6 (11-010-XPB, $25/$243) will be available Thursday, June 22.

For more information, or to enquire about the concepts, methods or data quality of this release, contact Francine Roy (613-951-3627; ceo@statcan.gc.ca), Current Economic Analysis Group.