Mitigation of Risk to Respondents of Statistics Canada’s Surveys
Research Data Centres Program
Statistics Canada
June 2010
Statutory Protection:
The Statistics Act (1985) prescribes the mandate of the Agency, its role in the federal government, its powers and responsibilities, and its operating structure. Central to the Act's provisions is an implicit social contract with respondents under which the Agency may burden respondents with requests for information, and in some cases demand response, in order to provide information that is clearly of broad public benefit, but with an absolute undertaking to protect the confidentiality of identifiable individual responses.
Any disclosure of information that identifies an individual, business or organization is a punishable offense.
The confidentiality provisions of the Statistics Act are not affected by either the Access to Information Act or any other Legislation.
Consent:
The Privacy Act (1983) applies not only to the activities of Statistics Canada but to all federal government organizations. The Privacy Act requires that personal information must only be collected if it “relates to an operating program or activity of the institution”. In the case of Statistics Canada, this would include surveys collected under the provisions of the Statistics Act. The Privacy Act requires that the individual be informed of the purpose for which the personal information is being collected. It includes the right for an individual to know of, and have access to, their personal information. Informed consent is not a component of the Privacy Act.
However, informed consent is utilized by Statistics Canada as part of certain activities. With the exception of the Census of Population and the Labour Force Survey, all Statistics Canada household surveys are voluntary. Implicitly, participation in a voluntary survey requires consent. Respondents are informed of the voluntary nature of the survey through a notice prior to the start of the data collection, such as the one below. Interviewers are also instructed to permit respondents to refuse to answer any question or to terminate an interview at any time.
Your answers will be kept strictly confidential and used only for statistical purposes. While participation is voluntary, your cooperation is important to ensure that the information collected in this survey is as accurate and as comprehensive as possible.
Measures to protect the identity of respondents:
Data collection and nature of data files available for access:
The majority of the data collected by Statistics Canada use sampling frames in which households are randomly sampled. Within selected households, sometimes all persons are requested to participate in the survey. In many cases, a random selection of a person within the household is done by the interviewer. The Census of Population and the Labour Force Survey are the only mandatory surveys due to the key role they play in the informing political and business decisions in the country.
Background survey material explaining the data to be collected and the reasons for the data collection is provided to survey participants.
Any microdata accessed by a researcher will have all personal identifiers, such as name, address, SIN, and personal health number removed from the record.
Researchers may only access those data that are required for their particular project.
Procedures to access data:
As required by the Policy on Government Security, researchers must obtain Reliability Status from the STC Departmental Security before having access to the data in the RDC. Security checks are conducted by the RCMP for each researcher accessing data in the RDC.
As required by the Statistics Act, each researcher accessing data in the RDCs has deemed employee status and swears a legally binding oath to protect the confidentiality of Statistics Canada data utilized in the RDC. This oath is binding for life.
Each researcher is required to attend an orientation session during which a RDC Analyst explains the researchers’ legal responsibilities to protect the confidentiality and all the
security measures in place within the RDC.
There is a Statistics Canada employee on site to ensure the above measures are clearly understood and adhered to by all researchers participating in the RDC program.
Physical protection of data:
Each RDC is a secure physical environment where the only people permitted entry are researchers working on active approved projects and Statistics Canada staff.
Doors to the facility are opened with secure swipe cards assigned to each researcher.
Researchers are prohibited from operating any electronic communication and storage devices, such as laptops, tablets, E‐readers, PDAs or cell phones in the vicinity of (secure) computer workstations.
The computing environment inside a RDC cannot be linked externally, in particular to the internet.
The file structures and permissions are created to ensure that researchers have access only to the data for which they have received permission to use.
Control of released results:
The RDC Analyst is the only person who can release analytical output from a RDC.
All analytical output, including programs and compiled results, are vetted for confidentiality using rules developed by Statistics Canada methodologists.
Where confidentiality is at risk, the researcher and Analyst work together to eliminate the risk of disclosure and release the necessary information to answer the research question but at the same time, protect the confidentiality of respondent data.
In 2010, Statistics Canada launched the Integrated Business Statistics Program (IBSP) to provide a more efficient model for producing economic statistics. The main objective was to enhance the economic statistics program so that it remains as robust and flexible as possible while reducing the burden on business respondents.
The IBSP encompasses around 60 surveys covering four major sectors: manufacturing, wholesale and retail trade, services (including culture) and capital expenditures. By 2019/2020, the IBSP will include roughly 150 economic surveys covering all sectors of economic statistics.
The program changes ensure that Statistics Canada will continue to produce a consistent and coherent set of economic statistics. As well, data users and researchers can more easily combine economic data with information from other sources to undertake their analyses.
The IBSP uses a standardized approach for economic surveys conducted at Statistics Canada. This framework involves:
using a common Business Register as the unique frame
maximizing the use of administrative information to reduce business response burden
using electronic questionnaires as the principal mode of collection
harmonizing concepts and questionnaire content
adopting common sampling, collection and processing methodologies.
What are some of the more significant changes?
A new approach to sampling ensures businesses will only be asked those questions that are pertinent to their operations. This creates a win-win situation for Statistics Canada and respondents. Statistics Canada reduces the collection effort and has a greater likelihood of collecting the information it requires to produce official statistics relevant to Canadians. It also reduces the time needed by respondents to complete their business surveys.
Increased use of administrative data reduces business response burden. Administrative data files (such as corporate income tax files) have been used extensively as a direct substitute for a sub-set of sampled units and for imputation of non-response. In the transition to the IBSP model, imputation methods were adapted to take full advantage of the availability of administrative data. This resulted in additional response burden reductions across survey programs. The majority of sampled businesses are no longer required to provide data for revenue and expense information that is available from tax data. The IBSP questionnaires are designed to collect information that is not available from administrative data files, such as commodities produced and business practices.
A new coherent approach to developing provincial/territorial estimates uses existing information on Statistics Canada's business register to determine provincial/territorial shares of revenues, expenses and value added. This ensures a coherent and standardized approach that is consistent across all IBSP surveys. Previously, these data were collected directly from each respondent, contributing to response burden.
Electronic questionnaires are now the primary mode to collect data from business respondents. Businesses complete surveys using a secure online application. The result is a more efficient and higher quality collection process. In addition, the quality of survey statistics may improve because electronic questionnaires have built-in checks designed to limit reporting errors that can occur with paper-based questionnaires.
Increased coverage of the business population results in a more comprehensive set of business statistics. Beginning in reference year 2013, the population covered by the suite of annual economic survey programs increased to include all firms regardless of their size. In previous years, relatively small businesses (based on their sales) were not included in Statistics Canada's central business frame. However, with new self-coding technology, it became possible to classify all businesses operating in the Canadian economy onto the central business frame, regardless of the sales of the firm. As a result, with improved coverage of the population, the IBSP-based estimates better reflect the population of businesses operating in Canada.
Questionnaires have been updated to reflect the latest business terminology and accounting practices of Canadian businesses. In addition the questionnaires apply the latest standard classifications used by Statistics Canada, such as the North American Industry Classification System and the North American Product Classification System.
Does this impact the comparability of data through time?
The extent of the changes in the business statistics program introduced by the IBSP means that some series may no longer be consistent with estimates from previous periods. For example, the increase in the business population alone means that the estimates will tend to be higher than those previously published.
For some series, the 2013 changes will be small and comparisons with estimates for 2012 will be consistent. In other cases, the impacts can be significant, leading to breaks in the 2013 estimates data when compared to 2012.
Recognizing the importance of data continuity, Statistics Canada analyzed the 2013 estimates in comparison with 2012 data to determine whether a break in series occurred. Assessment techniques included:
evaluating survey estimates at all levels of detail (national, sub-national, NAICS)
comparing estimates obtained from sub-annual surveys (where applicable)
comparing tax information
analysing the results for common respondents in 2012 and 2013
comparing historical movements by respondent and by the industry in general.
A break in series from 2012 to 2013 was identified when the direction and magnitude of the change for a given variable/province or territory/industry fell outside a survey's specific tolerance limit. The tolerance limit is defined in part as the bound between the largest increase and largest decrease using a forecast model. The tolerance limit could be further influenced by comparisons with auxiliary confrontation data, such as those noted above.
The determination of a series break focuses on the main aggregate variables only. These variables include Total Revenue, Total Operating Revenue, Total Expenses, Total Operating Expenses, Salaries and Wages, and Depreciation. Given the nature and scope of the changes to the survey program, series breaks for more detailed variables are inevitable and will not be analyzed by the agency.
In all cases, users are aware that breaks can exist and that any comparisons with the 2012 data should be made at their own discretion.
Once the estimates for the reference year 2014 are available, revisions will be made to the 2013 data as is normally the case. At that time, the 2012 estimates may also be revised due to the additional information available.
Who will use the new IBSP estimates?
Businesses use the estimates to better understand their performance within their given industry relative to the industry average.
Industry analysts use the IBSP estimates to analyze the performance of given industries in the Canadian economy both nationally and regionally.
The IBSP data are a main input in the Canadian System of Macroeconomic Accounts. They are first adjusted to macroeconomic accounting concepts and definitions and are then integrated into the macroeconomic accounting frameworks. This integration involves adjusting the data to adhere to the macroeconomic accounting identities as well as ensuring consistency through time. These data are the building blocks for Statistics Canada's benchmark measure of gross domestic product and a key input into the estimates used to determine equalization payments and the allocation of harmonized sales tax revenue.
Periodically, Statistics Canada undertakes large scale changes as part of its survey renewal process. The new IBSP data will be integrated into the Macroeconomic Accounts. Although the new data may lead to some changes/revisions to the national accounts, the System of National Accounts framework ensures that the national account estimates are robust and coherent.
Release Schedule
To implement this important initiative, Statistics Canada is taking all the necessary steps to complete the final data and system verifications. The annual economic statistics are usually available approximately 15 months after the reference period, but the major transformation produced by the IBSP made it impossible to maintain this release schedule. Statistics Canada is committed to releasing the data as soon as possible, once all quality assurance and confidentiality checks have been completed.
It is expected that starting with reference year 2014, the release schedule will revert to respecting the 15 month timeliness objective.
In 2010, Statistics Canada launched the Integrated Business Statistics Program (IBSP) to provide a more efficient model for producing economic statistics. The main objective was to enhance the economic statistics program so that it remains as robust and flexible as possible while reducing the burden on business respondents.
The IBSP encompasses around 60 surveys covering four major sectors: manufacturing, wholesale and retail trade, services (including culture) and capital expenditures. By 2019/2020, the IBSP will include roughly 150 economic surveys covering all sectors of economic statistics. The list of surveys currently included in IBSP is available online.
The program changes ensure that Statistics Canada will continue to produce a consistent and coherent set of economic statistics. As well, data users and researchers can more easily combine economic data with information from other sources to undertake their analyses.
The IBSP uses a standardized approach for economic surveys conducted at Statistics Canada. This framework involves:
using a common Business Register as the unique frame
maximizing the use of administrative information to reduce business response burden
using electronic questionnaires as the principal mode of collection
harmonizing concepts and questionnaire content
adopting common sampling, collection and processing methodologies.
What are some of the more significant changes?
A new approach to sampling ensures businesses will only be asked those questions that are pertinent to their operations. This creates a win-win situation for Statistics Canada and respondents. Statistics Canada reduces the collection effort and has a greater likelihood of collecting the information it requires to produce official statistics relevant to Canadians. It also reduces the time needed by respondents to complete their business surveys.
Increased use of administrative data reduces business response burden. Administrative data files (such as corporate income tax files) have been used extensively as a direct substitute for a sub-set of sampled units and for imputation of non-response. In the transition to the IBSP model, imputation methods were adapted to take full advantage of the availability of administrative data. This resulted in additional response burden reductions across survey programs. The majority of sampled businesses are no longer required to provide data for revenue and expense information that is available from tax data. The IBSP questionnaires are designed to collect information that is not available from administrative data files, such as commodities produced and business practices.
A new coherent approach to developing provincial/territorial estimates uses existing information on Statistics Canada's business register to determine provincial/territorial shares of revenues, expenses and value added. This ensures a coherent and standardized approach that is consistent across all IBSP surveys. Previously, these data were collected directly from each respondent, contributing to response burden.
Electronic questionnaires are now the primary mode to collect data from business respondents. Businesses complete surveys using a secure online application. The result is a more efficient and higher quality collection process. In addition, the quality of survey statistics may improve because electronic questionnaires have built-in checks designed to limit reporting errors that can occur with paper-based questionnaires.
Increased coverage of the business population results in a more comprehensive set of business statistics. Beginning in reference year 2013, the population covered by the suite of annual economic survey programs increased to include all firms regardless of their size. In previous years, relatively small businesses (based on their sales) were not included in Statistics Canada's central business frame. However, with new self-coding technology, it became possible to classify all businesses operating in the Canadian economy onto the central business frame, regardless of the sales of the firm. As a result, with improved coverage of the population, the IBSP-based estimates better reflect the population of businesses operating in Canada.
Questionnaires have been updated to reflect the latest business terminology and accounting practices of Canadian businesses. In addition the questionnaires apply the latest standard classifications used by Statistics Canada, such as the North American Industry Classification System and the North American Product Classification System.
Does this impact the comparability of data through time?
The extent of the changes in the business statistics program introduced by the IBSP means that some series may no longer be consistent with estimates from previous periods. For example, the increase in the business population alone means that the estimates will tend to be higher than those previously published.
For some series, the 2013 changes will be small and comparisons with estimates for 2012 will be consistent. In other cases, the impacts can be significant, leading to breaks in the 2013 estimates data when compared to 2012.
Recognizing the importance of data continuity, Statistics Canada analyzed the 2013 estimates in comparison with 2012 data to determine whether a break in series occurred. Assessment techniques included:
evaluating survey estimates at all levels of detail (national, sub-national, NAICS)
comparing estimates obtained from sub-annual surveys (where applicable)
comparing tax information
analysing the results for common respondents in 2012 and 2013
comparing historical movements by respondent and by the industry in general.
A break in series from 2012 to 2013 was identified when the direction and magnitude of the change for a given variable/province or territory/industry fell outside a survey's specific tolerance limit. The tolerance limit is defined in part as the bound between the largest increase and largest decrease using a forecast model. The tolerance limit could be further influenced by comparisons with auxiliary confrontation data, such as those noted above.
The determination of a series break focuses on the main aggregate variables only. These variables include Total Revenue, Total Operating Revenue, Total Expenses, Total Operating Expenses, Salaries and Wages, and Depreciation. Given the nature and scope of the changes to the survey program, series breaks for more detailed variables are inevitable and will not be analyzed by the agency.
In all cases, users are aware that breaks can exist and that any comparisons with the 2012 data should be made at their own discretion.
Once the estimates for the reference year 2014 are available, revisions will be made to the 2013 data as is normally the case. At that time, the 2012 estimates may also be revised due to the additional information available.
Who will use the new IBSP estimates?
Businesses use the estimates to better understand their performance within their given industry relative to the industry average.
Industry analysts use the IBSP estimates to analyze the performance of given industries in the Canadian economy both nationally and regionally.
The IBSP data are a main input in the Canadian System of Macroeconomic Accounts. They are first adjusted to macroeconomic accounting concepts and definitions and are then integrated into the macroeconomic accounting frameworks. This integration involves adjusting the data to adhere to the macroeconomic accounting identities as well as ensuring consistency through time. These data are the building blocks for Statistics Canada's benchmark measure of gross domestic product and a key input into the estimates used to determine equalization payments and the allocation of harmonized sales tax revenue.
Periodically, Statistics Canada undertakes large scale changes as part of its survey renewal process. The new IBSP data will be integrated into the Macroeconomic Accounts. Although the new data may lead to some changes/revisions to the national accounts, the System of National Accounts framework ensures that the national account estimates are robust and coherent.
Release Schedule
To implement this important initiative, Statistics Canada is taking all the necessary steps to complete the final data and system verifications. The annual economic statistics are usually available approximately 15 months after the reference period, but the major transformation produced by the IBSP made it impossible to maintain this release schedule. Statistics Canada is committed to releasing the data as soon as possible, once all quality assurance and confidentiality checks have been completed.
It is expected that starting with reference year 2014, the release schedule will revert to respecting the 15 month timeliness objective.
Archived information is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
In June 2015, Statistics Canada will be consulting with key data users of the Manufacturing and Wholesale Trade Statistics Programs to obtain feedback about data, products and services; identify possible data gaps and/or deficiencies; highlight new and emerging needs; and uncover potential opportunities for future collaboration. This valuable input will help to guide the future direction and development of these programs and ensure that they continue to meet the needs of users.
For additional information about the Manufacturing and Wholesale Trade Statistics Programs and this consultation, a background document is also available.
Please note that Statistics Canada selects participants for each consultation to ensure feedback is sought from a representative sample of the target population for the study. Not all applicants will be asked to participate in a given consultation.
Statistics Canada is committed to respecting the privacy of consultation participants. All personal information created, held or collected by the Agency is protected by the Privacy Act. For more information on Statistics Canada's privacy policies, please consult the Privacy notice.
Results
Results of the client satisfaction evaluation are now available.
Stakeholder Consultations: Manufacturing and Wholesale Trade Statistics
Background
In Canada, manufacturing and wholesale trade are two of the larger economic sectors. They account for approximately 16% of the Canadian economy, $1.2 trillion in annual sales and over 2.2 million jobs.
At Statistics Canada (StatCan), activity in these sectors is monitored by the Manufacturing and Wholesale Trade Division (MWTD), which compiles data on both a monthly and annual basis for the manufacturing and wholesale trade industries. The monthly programs focus on providing sales, orders and inventory data for both sectors. The annual programs provide more detailed information including profits, expenses, salaries and wages. Data are available at both the national and provincial level, broken down by industry and sub-industry within the sector according to the North American Industry Classification System.
MWTD data are used by stakeholders across the country. At StatCan, these data serve as important inputs for many key economic indicators, such as the GDP. Finance Canada and the Bank of Canada use manufacturing and wholesale trade data to help determine taxation, fiscal, and monetary policy. Public and private institutions use them to study the Canadian economy, while the private sector uses MWTD data to conduct market research and calculate industry sizes within the sectors.
To ensure the ongoing relevance and utility of MWTD programs, Statistics Canada is consulting with key data users to obtain feedback about MWTD data, products and services; identify possible data gaps and/or deficiencies; highlight new and emerging needs; and uncover potential opportunities for future collaboration. This valuable input will help to guide the future direction and development of these programs.
These consultations will ensure that StatCan programs remain useful and up-to-date. It is important that we understand how StatCan data are used, and the questions that researchers have about the manufacturing and wholesale trade sectors. The consultations will also provide us with the opportunity to gather the input that we need to make decisions about the strategic planning of our programs—how our programs will look in the future, in terms of the data collected, outputs produced and services provided. This will ensure that StatCan continues to collect the right data for its clients, and we collect them in an efficient and effective way.
Discussion Questions
Tell us about the nature of the work that you do.
In the conduct of your work, how do you use manufacturing and wholesale trade data? Can you provide examples? What data do you use? Where do you get them from? How do you get them?
Are the manufacturing and wholesale trade programs useful for you?
When you have data needs, is StatCan your primary source? Why or why not?
Are there gaps or deficiencies in the current data that are collected? What else would you like to have?
Are there other products and services that you require? (e.g., special tabulations, data sharing agreements, workshops about available data).
What are the key policy issues and questions in the manufacturing and wholesale sectors that you foresee being asked to address over the next five years?
What would you say are the three most important issues that should be addressed by the manufacturing and wholesale trade statistics programs? If you could pick three areas to focus on, what would you do/fix/add?
Appendix 1: Manufacturing Statistics Key Variables and Industries
Manufacturing Key Variables
Variable
Variable Type
Frequency
Geography
Note: Monthly data are also available seasonally adjusted.
Total revenue
Revenue
Annual
National / Provincial
Revenue from goods manufactured / Sales of goods manufactured (shipments)
Revenue
Annual/Monthly
National / Provincial
Total expenses
Expenses
Annual
National / Provincial
Total salaries and wages, direct and indirect labour
Expenses
Annual
National / Provincial
Total cost of energy, water utility and vehicle fuel
Expenses
Annual
National / Provincial
Cost of energy and water utility
Expenses
Annual
National / Provincial
Cost of vehicle fuel
Expenses
Annual
National / Provincial
Cost of materials and supplies
Expenses
Annual
National / Provincial
Total opening inventories
Inventories
Annual
National / Provincial
Opening inventories, goods or work in process
Inventories
Annual
National / Provincial
Opening inventories, finished goods manufactured
Inventories
Annual
National / Provincial
Total closing inventories
Inventories
Annual/Monthly (National Only)
National / Provincial
Closing inventories, goods or work in process
Inventories
Annual/Monthly (National Only)
National / Provincial
Closing inventories, finished goods manufactured
Inventories
Annual/Monthly (National Only)
National / Provincial
Manufacturing value added
Inventories
Annual
National / Provincial
New orders, estimated values of orders received during month
Revenue
Monthly
National
Unfilled orders, estimated values of orders at end of month
Revenue
Monthly
National
Raw materials, fuel, supplies, components, estimated values at end of month
Inventories
Monthly
National
Ratio of total inventory to sales
Ratio
Monthly
National
Ratio of finished goods to sales
Ratio
Monthly
National
Manufacturing Industries
NAICS
Subsector
31-33
Manufacturing
311
Food manufacturing
312
Beverage and tobacco product manufacturing
313
Textile mills
314
Textile product mills
315
Clothing manufacturing
316
Leather and allied product manufacturing
321
Wood product manufacturing
322
Paper manufacturing
323
Printing and related support activities
324
Petroleum and coal product manufacturing
325
Chemical manufacturing
326
Plastics and rubber products manufacturing
327
Non-metallic mineral product manufacturing
331
Primary metal manufacturing
332
Fabricated metal product manufacturing
333
Machinery manufacturing
334
Computer and electronic product manufacturing
335
Electrical equipment, appliance and component manufacturing
336
Transportation equipment manufacturing
337
Furniture and related product manufacturing
339
Miscellaneous manufacturing
In addition to financial variables, manufacturing data on raw material purchases and sales of goods manufactured by type of product are also produced. These products are classified using the North American Product Classification System.
North American Product Classification System
Variable by produce
Variable Type
Frequency
Geography
Purchases of raw materials
Expenses
Annual
National / Provincial
Sales of manufactured products
Revenues
Annual
National / Provincial
Statistics Canada also produces statistics on the quantity of products produced for several commodities produced in Canada.
Commodities produced in Canada
Commodity
Variables
Frequency
Geography
Note: Monthly data are not available seasonally adjusted for these commodities
Asphalt
Production and shipments
Monthly
National / Provincial
Cement
Production and shipments
Monthly
National / Provincial
Chemicals
Production
Annual
National
Sawmills
Production and shipments
Monthly
National / Provincial
Tobacco
Production and Sales
Monthly
National
Appendix 2: Wholesale Statistics Key Variables and Industries
Wholesale Key Variables
Variable
Variable Type
Frequency
Geography
Sales 2007 Chained
Revenue
Monthly
National
Sales 2007 Chained Fisher fixed
Revenue
Monthly
National
Fisher fixed price Index
Price Index
Monthly
National
Paasche current weighted
Price Index
Monthly
National
Sales 2007 constant prices Laspeyres fixed weight
Price Index
Monthly
National
Sales
Revenue
Monthly
National / Provincial
Inventories
Inventories
Monthly
National
Sale of all goods purchased for resale
Revenue
Annual
National / Provincial
Commission revenue
Revenue
Annual
National / Provincial
Total operating revenue
Revenue
Annual
National / Provincial
Purchases of goods for resale
Revenue
Annual
National / Provincial
Goods purchased for resale, opening inventory
Inventories
Annual
National / Provincial
Goods purchased for resale, closing inventory
Inventories
Annual
National / Provincial
Cost of goods sold
Expenses
Annual
National / Provincial
Total labour remuneration
Expenses
Annual
National / Provincial
Total operating expenses
Expenses
Annual
National / Provincial
Gross margin (percent)
Ratio
Annual
National / Provincial
Operating profit (percent)
Ratio
Annual
National / Provincial
Wholesale Industries
NAICS
Subsector
411
Farm product merchant wholesalers
412
Petroleum and petroleum products merchant wholesalers
413
Food, beverage and tobacco merchant wholesalers
414
Personal and household goods merchant wholesalers
415
Motor vehicle and motor vehicle parts and accessories merchant wholesalers
416
Building material and supplies merchant wholesalers
417
Machinery, equipment and supplies merchant wholesalers
418
Miscellaneous merchant wholesalers
419
Business-to-business electronic markets, and agents and brokers
Appendix 3: List of surveys and corresponding CANSIM data tables
List of surveys and corresponding CANSIM data tables
Survey
Sample Size
CANSIM Tables
Note: Monthly data are also available seasonally adjusted.
This report presents the results of the evaluation of the Demography, Aboriginal and Social Statistics (DAOSS) Program. It covers three fiscal years, from 2010/2011 to 2012/2013. The evaluation was undertaken by the Evaluation and Performance Measurement Division.
This report was approved by the Departmental Evaluation Committee and the Chief Statistician on November 26, 2014.
In accordance with the accountability requirements in the Treasury Board 2009 Policy on Evaluation and its Directive, this report is available to the public with the Executive Summary and Management Response and Action Plan being posted on the departmental website in both official languages.
Statistics Canada also shared this report with its program delivery partners and key stakeholders, including the National Statistics Council.
Evaluation scope, purpose and methodology
The evaluation covers the DAOSS Program, with a particular focus on the Population Estimates and Projections (PE&P), the General Social Survey (GSS) and the Aboriginal Statistics components. It addresses a number of questions related to the continued need for the program, its alignment with government priorities, its consistency with federal roles and responsibilities, the achievement of its expected outcomes, and the extent to which it demonstrates efficiency and economy. It was included in the Departmental Risk-based Audit and Evaluation Plan for 2012/2013 to 2016/2017, which was approved by the Departmental Evaluation Committee in March 2013.
In accordance with the Government of Canada's Policy on Evaluation, the purpose of the DAOSS evaluation is to provide an evidence-based, neutral assessment of its value for money, and more specifically, its relevance and performance. In addition, the evaluation design has incorporated all components of the Standard on Evaluation for the Government of Canada to ensure quality, neutrality and utility. The list of questions addressed in this evaluation incorporates all core issues identified in the Government of Canada's Directive on the Evaluation Function.
Information from multiple sources was used to address the evaluation questions, including document and literature reviews; a review of financial and administrative data; a series of key informant interviews with program representatives, internal and external stakeholders; a survey of data users; and a bibliometric and webometric analysis. The study was calibrated to capture the horizontal aspects of the relevance and the efficiency/economy at the DAOSS Program level, and to explore in depth the aspects of performance that are specific to each of the three focus components, namely, the PE&P, the GSS and the Aboriginal Statistics components. The presentation structure of the findings and conclusions is aligned with the calibration approach.
Demography, Aboriginal and Other Social Statistics (DAOSS) Program
Relevance
The DAOSS Program contributes significantly to multiple areas of public interest and society's well-being and plays a strategic role in informing public debate on socioeconomic issues, in supporting social policy development and in guiding public and private decision making. The three focus components respond to needs that are specific to their subject-matter orientation and are relevant to the work of all levels of government and of many national and international groups and initiatives.
Overall, the DAOSS Program is in a good position to maintain its relevance; however, some areas of particular risks, challenges or gaps exist and need to be addressed. The need for consistent data disaggregated at a smaller geographical level (i.e. municipalities, on-reserve communities) or sub-groups level (i.e. Aboriginal groups, visible minorities) appears to be prominent. The improvement of the measures of interprovincial-territorial migration are linked to a growing area of interest of significant impact, hence, the Demography Division's efforts in this direction need to continue. In the scope of the GSS, the need for more analytical products related to historical series, to social trends occurring over time or to emerging social issues has been identified. In the field of statistics on Aboriginal people, the limited information for the on-reserve population is a gap that requires attention. Furthermore, there are concerns regarding the coherence, comparability and representativeness of the available data, which reduce the analytical power of the existing information on Aboriginal people.
The evaluation findings confirmed that the DAOSS Program is in line with the current federal government priorities and commitments as it supports multiple federal initiatives including legal and contractual obligations. It is also in line with the priorities and the role of Statistics Canada—not only because of its clear link to the agency's strategic outcomes, but also because each of the focus components is interrelated with other statistical programs and is a part of the entire national statistical structure. Further, the federal government appears to be in the best position to deliver the program as there is no other organization that has the capacity, the reputation, and the public trust to collect and process statistical information with comparable scope and quality. Other similar activities conducted by parties external to Statistics Canada are considered to be complementary rather than viewed as an alternative to the DAOSS Program.
Performance (efficiency and economy)
The evaluation findings confirm that the DAOSS Program has made significant investments (effort and reorganization) in efficiency-generating projects oriented toward: (1) reducing response burden by increasing the use of alternative data sources; (2) streamlining and consolidating the operations by using common toolsFootnote 1, and (3) incorporating new technologies in operations (e.g., e-questionnaire, interactive website, social media). The program is making progress in adopting a results-based culture; however, it is still too early to assess its implementation. Given the limitations of the financial system, it was not possible in this context to assess the cost of the inputs and whether optimization was reached. However, financial figures for the DAOSS Program as a whole provided some evidence that all variances between the planned budget and actual expenditures have not exceeded 4%, which indicates a good management of resources in general.
Population Estimates and Projections
Effectiveness
Overall, statistical products on population estimates and projections are accessible, although some concerns were expressed with the transition to the new format of CANSIM tables that resulted in inconsistencies and fewer content details in some sets, and that the search engine is not efficient enough to locate some specific information. The evaluation found that the population estimates and projections were released in a timely manner. The program has met the delivery dates and standards, and has improved its responsiveness to the increased demand of more frequent population projections by enhancing its microsimulation activities.
Evaluation findings suggest that the demographic statistical information empowers users by increasing their demography-related knowledge and capacity. A closer look at the interpretability, coherency and accuracy reveals that overall the population estimates and projections are coherent and accurate. The Demography Division has undertaken many initiatives to improve the coherency and accuracy of its data, including the harmonization of the administrative data and statistical products with other Statistics Canada divisions. Currently, the PE&P is the single internal provider of most demographic estimates. The division is also working on initiatives to address challenges around the coherency and accuracy of indicators for internal migration. This is a well-known issue in the domain of demography and is not unique to Canada. In terms of interpretability, findings suggest that there is some room for improvement. Some users are dissatisfied with the public availability and comprehension of up-to-date technical papers, metadata analysis and methodology papers, as well as accessibility through the website interface and availability of written explanations of the concepts in a format and language that a non-statistician could understand.
All lines of evidence confirm that the statistical information on population estimates and projections is widely used by governments, public institutions, academic researchers, private sector, and Canadians. Multiple examples of use were found in documents, and were provided by key informants and survey respondents. The bibliometric and webometric analysis confirmed that the information has been used in the domain of social sciences and humanities, and the natural sciences and engineering for academic research.
Efficiency
The PE&P is currently working on initiatives intended to improve its efficiency, such as the harmonization of the demographic content, improved documentation practices, the incorporation of new technology for dissemination and microsimulation, and the identification of new sources of administrative data. Efforts to increase the use of administrative data must continue. It is worth mentioning that population projections' projects contribute significantly to the revenue of the component (almost 50%), and the Demosim microsimulation activities alone generated 24% of the annual revenue in 2013/2014.
General Social Survey (GSS)
Effectiveness
Overall, the review found that the GSS statistical information is accessible. A wide range of GSS products are available to key stakeholders, the general public and researchers, through a variety of channels (e.g., the web, RDCs or customized services). The major GSS outputs are released in a timely manner, according to the planned schedules and deadlines. Areas of improvement identified are linked to the need to make the website more user-friendly to better acquire the information, and reviewing the frequency of cycles for some themes so that appropriate adjustments could be made in the future with the new GSS redesign.
By providing accurate, interpretable and coherent statistical information, the GSS is seen as a trusted source of social data and products which contribute to the enhancement of the knowledge in the social domain. While the efforts of the program toward achieving better results were acknowledged, there is still room for improvement in terms of interpretability (e.g., providing more methodological papers and explanations around the GSS changes) and coherency (e.g., harmonizing the content through cycles over time to ensure comparability and to allow the establishment of trends over time for some specific variables). Concerns were also expressed with regard to the challenges that the GSS is facing with declining response rates that may have quality implications.
Evaluation evidence provides strong confirmation of the fact that GSS statistical information is widely used, to inform a multitude of diverse activities carried out by clients such as policy-makers, governments, private and public institutions, academic institutions and social researchers, not-for-profit organizations, etc. The GSS information is also used by other statistical surveys, for comparability and validation, and to supplement the information.
Efficiency
Many initiatives were put in place to generate efficiencies and cost savings. For example, the implementation of e-questionnaires for data collection is expected to stabilize or increase response rates and improve the quality of data. However, it is still too early to analyze the real effect of this change on efficiency. The exploration of opportunities for the use of more administrative data sources in lieu of primary data is seen as a potential option for cost saving as well as for improving the quality and coherence of the data. It is also believed that an interdepartmental forum, which oversees horizontal social areas of statistical interest at the strategic level, is a much needed component of the governance structure of social statistics, in order to better identify priorities, avoid duplication, fill information gaps, and create synergies across policy departments.
Aboriginal Statistics component
Effectiveness
Overall, the statistical information on Aboriginal people is accessible. There are some concerns and uncertainties about the accessibility of on-reserve data collected by the First Nations Information Governance Centre. Statistical information on Aboriginal people is being released in a timely manner. Some preferences for more frequent collection and some issues with data being outdated have been expressed.
While the statistical information on Aboriginal people from the Aboriginal Peoples Survey (APS) is of good quality, a number of challenges and potential risks to maintaining the accuracy were identified. To mitigate the situation, the program is working towards increasing the use of administrative data. There are still concerns about the comparability and coherence of off-reserve/on-reserve data, data over time, and the comparability of statistical information on Aboriginal people with general population information. The interpretability of the statistics on Aboriginal people is good because metadata is available and Statistics Canada provides good support and response to custom tabulations and special analyses.
In the public sector, statistics on Aboriginal people are used for planning, policy development, decision making, reporting and funding allocation. The main key users are federal partners. The data also support the activities of National Aboriginal organizations and Aboriginal governments and communities. Some limitations to data use are a result of aggregating the data at a national level, which results in blending the specifics of the different Aboriginal groups, and restricts the analysis of smaller subgroups of the Aboriginal population. Despite some issues linked to the insufficient liaison capacity and the scope of training activities, evidence suggests that these program components are very much needed and useful, and they could create leverage for both Statistics Canada and the Aboriginal communities if their full potential is explored.
Efficiency
Between 61% and 80% of the activities of the Aboriginal Statistics component are cost-recovery funded. Consequently, the efficiency of statistics on Aboriginal people is highly influenced by factors that are beyond its direct control. The elimination of the training program in 2012 limited the opportunities for Statistics Canada to communicate with the Aboriginal communities. This might have an impact (yet unknown) on the quality of the data in the future, and in turn, on the effectiveness of the program. The internal governance mechanisms are solid and are working well; however, potential for improvement regarding coordination with the National Aboriginal Organizations and a need for a better definition of the roles and responsibilities with federal partners have been identified.
Recommendations
Recommendation 1 (DAOSS Program):
To maintain the continued relevance of data products to the needs of its clients, the DAOSS Program should establish a structured process for documenting, analyzing and responding to constructive feedback from the full range of its users. The process should include a systematic tracking and documentation of available information on these users.
Recommendation 2 (DAOSS Program):
The DAOSS Program in collaboration with Dissemination Division should consider actions to strengthen the analytical capacity of its data and products, and to increase their value to the users. To the extent possible:
the Social and Aboriginal Statistics Division should look at appropriate alternatives, to increase the availability of disaggregated data for the General Social Survey and the Aboriginal Statistics components;
the Social and Aboriginal Statistics Division and the Demography Division should ensure that metadata are comprehensive and interpretable by users with varied statistical proficiency, for the General Social Survey, the Aboriginal Statistics and the Population Estimates and Projections components; and
the Dissemination Division should ensure that the implementation of Statistics Canada's New Dissemination Model will provide users with varied statistical proficiency effective search tools and streamlined access to products.
Recommendation 3 (General Social Survey):
The General Social Survey component should consider actions to strengthen its data and products and increase the value of the survey to users. To the extent possible, efforts should be focused on:
expansion of the scope and the variety of analytical products, including both products that involve re-packaging and utilization of existing data, and products that address themes of emerging importance and interest to key users;
revision of the frequency of the survey themes; and
revision of existing fora and interdepartmental consultation mechanisms to identify potential horizontal social statistical interest.
Recommendation 4 (Population Estimates and Projections):
The Demography Division should continue its efforts in providing relevant demographic data particularly by focusing its developmental and research work on the increased use of administrative data to improve the estimations of different components of population change (e.g. interprovincial migration), and by exploring ways to effectively address users needs for population projections.
Management response and action plan
Recommendation 1
Focus: DAOSS Program
To maintain the continued relevance of data products to the needs of its clients, the DAOSS Program should establish a structured process for documenting, analyzing, and responding to constructive feedback from the full range of its users. The process should include a systematic tracking and documentation of available information on these users.
Statement of Agreement /Disagreement
Agree
Management Response
There are several processes by which the DAOSS Program systematically collects feedback from its various and varied users such as the Federal Provincial and Territorial statistical focal points, interdepartmental federal committees, bilateral and multilateral user consultations, cost-recovery clients, and advisory committees. The PE&P Program has also recently established a data user group composed of representatives of internal users at Statistics Canada including representatives from consultative services of Regional Offices who are at the forefront responding to data requests and users.
To that effect, the DAOSS Program intends to pursue its current efforts to maintain the relevance of its program and to collect information to identify gaps and emerging needs. The DAOSS Program will establish a central depository for the Branch in which all documentation and feedback received from key partners and data users will be stored and analyzed in terms of the ongoing relevance of the statistical programs and products. This information will serve the various statistical programs in the Branch, and be evaluated by the management team via an annual review as well as feed into field strategic long-term planning.
Table 1 Recommendation 1
Timeline
Deliverable(s)
Responsible Party
Establish the Branch Depository - December 2015
Review by Branch management – March 2016 and ongoing
Establish a Branch Depository of documentation and feedback received from data users; with annual or biannual review by Branch management team.
Directors of Demography Division and Social and Aboriginal Statistics Division (SASD), and DG of Census Subject Matter, Social and Demographic Statistics Branch (CSMSDSB)
Recommendation 2
Focus: DAOSS Program
The DAOSS Program in collaboration with Dissemination Division should consider actions to strengthen its data and products, and to increase their value to the users. To the extent possible:
the Social and Aboriginal Statistics Division should look at appropriate alternatives, to increase the availability of disaggregated data for the General Social Survey and the Aboriginal Statistics components;
the Social and Aboriginal Statistics Division and the Demography Division should ensure that metadata are comprehensive and interpretable by users with varied statistical proficiency, for the General Social Survey, the Aboriginal Statistics and the Population Estimates and Projections components; and
the Dissemination Division should ensure that the implementation of Statistics Canada's New Dissemination Model will provide users with varied statistical proficiency effective search tools and streamlined access to products.
Statement of Agreement /Disagreement
Agree
Management Response
Recommendation 2 (a): Social and Aboriginal Statistics Division (SASD) has begun to release more tables through CANSIM from the GSS Program, and will continue to release more products as the common tools such as GTAB and GEXPORT are implemented and adopted.
Recommendation 2 (b): SASD and the Demography Division provide a large amount of metadata with its released products. SASD will review the metadata currently provided in order to identify any inaccuracies and will make the appropriate updates. SASD will also review the user comments to identify the specific metadata needs, and assess the feasibility of expanding the metadata for its programs.
Demography Division recently completed the implementation of a set of recommendations made following an internal Audit on the Population Estimation Program which included the production of documentation on the systems and outputs. Demography Division will undertake the review of comments made on the state of metadata for its program and assess the feasibility and cost of expanding their metadata products if need be.
Recommendation 2 (c):
Statistics Canada is currently actively working to improve its dissemination strategy. It is seeking to modernize the way in which it organizes and publishes its statistical output. The objective of this "New Dissemination Model" project is to ensure relevant, user-friendly output which will meet the needs of a broad range of data consumers. It will feature a single output data repository to drive dynamically generated data tables, a simplified product line to ensure consistency in product availability, and a revised navigation strategy to make sure that Statistics Canada's information is easy to find. The model will also include an automated feed of official statistics to the Federal Government Open Data environment and Web Data Services will be introduced to allow for the retrieval of data directly from Statistics Canada output database. Dissemination Division and SASD will work together to integrate data and products into the New Dissemination Model.
Table 2 Recommendation 2
Timeline
Deliverable(s)
Responsible Party
2a) 2013 and continued with each data releases
Review by Branch management – March 2016
CANSIM tables for APS and GSS
Director, SASD
2b) March 31, 2016
Feasibility report on expanded metadata; update of existing metadata
Director, SASD ; Director of Demography Division
2c) March 31, 2015
New Dissemination Model
Dissemination Division
Recommendation 3
Focus: General Social Survey
The General Social Survey component should consider actions to strengthen its data and products and increase the value of the survey to the users. To the extent possible, efforts should be focused on:
Expansion of the scope and the variety of analytical products, including both products that involve re-packaging and utilization of existing data, and products that address themes of emerging importance and interest to key users;
Revision of the frequency of the survey themes; and
Review existing fora and interdepartmental consultation mechanisms to identify potential horizontal social statistical interest.
Statement of Agreement / Disagreement
Agree
Management Response
GSS has begun the process of expanding analytical products over the past year, and brought in a full-time analyst to accomplish this. Analytical reports have been released in "Insights on Canadian Society" and for the new "Spotlight on Canadians: Results from the GSS" series which is specifically for GSS, and more are planned over the next year. In addition, GSS is producing Fact sheets and CANSIM tables, and plans to add infographics. In collaboration with key stakeholders, SASD will continue to work on developing an analytical plan for each GSS cycle to define the depth and breadth of analytical products and ensure their relevance.
The survey themes were reviewed over the last year; this review was triggered because of two themes (Giving, volunteering and participating (GVP) and social identity (SI)) taking place in the same year (2013), and the recognition that there was an opportunity to introduce a new theme in 2016. The review of themes is intended to be a regular activity, in order to schedule the themes appropriately (since it is no longer possible to have all themes on a 5-year cycle) and to ensure that the content is relevant and gaps are being addressed. This review will take place with appropriate external consultation, considering stakeholder needs, operational capacity, and ability to monitor key social trends, level of effort to implement the next iteration of a theme, and implementation status for multimode. As a result of this review, a cycle topic plan until 2022 will be presented to the key stakeholders.
The GSS Program has an extensive consultation process (bilateral and multilateral) with key stakeholders and user groups for each survey cycle. In addition, there is a GSS Steering Committee (cross-section of key departments), the Advisory Committee on Social Conditions, and the Federal-Provincial-Territorial Committee on Social Statistics, all of which provide input to the GSS Program. SASD will review and assess this governance structure, with the objective to define the mechanisms that should be put in place in order to advise the GSS program on horizontal and strategic issues. Possible elements of the plan include the establishment of objectives, the terms of reference and the best mechanisms to consult (for example, better use of existing forums or the creation of a new group).
Table 3 Recommendation 3
Timeline
Deliverable(s)
Responsible Party
December 31, 2015
Feasibility plan to increase scope and variety of analytical products;
Director, SASD
June 30, 2015
Development of the Plan for GSS theme or topic until 2022;
Director, SASD
March 31, 2016
Governance forum plan
Director, SASD
Recommendation 4
Focus: Population Estimates and Projections
The Demography Division should continue its efforts in providing relevant demographic data particularly by focusing its developmental and research work on the increased use of administrative data to improve the estimations of different components of population change (e.g. interprovincial migration), and by exploring ways to effectively address users needs for population projections.
Statement of Agreement / Disagreement
Agree
Management Response
Demography Division in 2015-16 will work on a research and developmental plan to find ways to improve the components of population change, in particular focusing on ways to improve the estimates of inter provincial migration and emigration. The PE&P submitted a 10 year plan (Continuity and Quality Maintenance (CQM)) to fund the acceleration of the work pertaining to the increased use of administrative data and the use of the Canadian Statistical Demographic Database (CSDD) research results in the PE&P development work. The plan would consist of conducting research on the use of current and new administrative data to improve the quality of the estimation of the demographic component and therefore reduce the error of closure. This work would also build on the efforts of other partner divisions, namely the Administrative Data Division which conducts the CSDD and that of the Tourism and the Centre for Education Statistics Division (TCESD) which is currently looking at ways of accessing Canada Border Services Agency (CBSA) exit and entry data. The PE&P will also be launching a series of workshops with the provinces and territories in 2015-2016 to explore how the PE&P and the provinces and the territories can work together to improve the estimation of intra-provincial data and interprovincial migration. This latter set of activities would launch the second phase of the CQM plan to improve the quality of population estimates.
The proposed plan will consist of multiple activities occurring over the next 10 years. Activities listed below are the ones taking place in the short-term. Pending the outcomes of these activities, other specific and relevant activities will be proposed.
Table 4 Recommendation 4
Timeline
Deliverable(s)
Responsible Party
January - December 2015
Develop a long-term strategy for developmental and research work for Demosim and PE&P Programs
Director Demography
Spring/Fall 2015
Initiation of workshops with provinces and territories, to seek input regarding future research plans
Director Demography
March 2016
Propose implementation alternatives for the PE&P Program according to the level of funding in place.
Director Demography
December 2015
Assist TCESD and ADD in negotiating access to CBSA data (completion by December 2015)
The program has made the transition to common tools for collection and dissemination, harmonizing content and eliminating duplication, or enhancing quality assurance.
This report presents the results of the evaluation of Statistics Canada's Labour, Education, Income and Tourism Programs (LEIT). It covers three fiscal years, from 2010-2011 to 2012-2013. The evaluation was undertaken by the Evaluation and Performance Measurement Division. The evaluation study was conducted over the period June 2013 to August 2014.
This report was approved by the Departmental Evaluation Committee and the Chief Statistician on December 17, 2014.
In accordance with the accountability requirements in the Treasury Board 2009 Policy on Evaluation and its Directive, this report is available to the public with the Executive Summary and Management Response and Action Plan being posted on the departmental website in both official languages. Statistics Canada also shared this report with its program delivery partners and key stakeholders, including the National Statistical Council.
Evaluation scope, purpose and methodology
This evaluation covers all four LEIT Programs with a particular focus on two programs: income statistics and tourism statistics. The programs were identified based on consultation with LEIT representatives during the planning phase, as well as additional planning criteria, such as the different constraints that the evaluation faced, and the complexity and the structure of LEIT.
In accordance with the Government of Canada's Policy on Evaluation, the purpose of the evaluation is to provide an evidence-based, neutral assessment of its value for money, and more specifically its relevance and performance. It addresses a number of questions related to the continued need for the programs, their alignment with government priorities, their consistency with federal roles and responsibilities, the achievement of their expected outcomes, and the extent to which they demonstrates efficiency and economy. It was included in the Departmental Risk-based Audit and Evaluation Plan for 2012/2013 to 2016/2017, which was approved by the Departmental Evaluation Committee in March, 2013.
Information from multiple sources was used to address the evaluation questions, including document and literature reviews; a review of financial and administrative data; a series of key informant interviews with program representatives, and internal and external stakeholders; a survey of data users; and a bibliometric and webometric analysis.
Overall Conclusions about LEIT
The evaluation found, overall, that all four LEIT Programs are relevant. Each one responds to specific legislative obligations and/or international commitments, they provide important statistics about Canada on a national level, and their activities are consistent with the federal government's roles and responsibilities. Each of the four LEIT programs is important to Canada for different reasons, and there will continue to be a demand for national statistics in all four areas.
Even though some opportunities for improving performance were identified, LEIT's income, labour and education programs are achieving their intended outcomes in terms of accessibility, timeliness, accuracy, interpretability, and coherence of data. The quality of international tourism data is an issue due to low return rates to surveys, and domestic tourism statistics are at risk of losing cost-recovery partners. As a result, the sustainability of the Tourism Statistics Program is at risk.
The evaluation examined the efficiency and economy of the income and tourism components and found that steps have been taken to reduce costs and increase efficiency.
Income Statistics Program (ISP)
Relevance
Statistical information produced by ISP responds to legislative and policy requirements for information to support, among others, the national macroeconomic accounts, the Consumer Price Index calculations, and calculations of provincial transfers. These are used by federal government and external stakeholders as a basis for research; policy development; design and assessment of programs; and to fulfill national and international commitments. ISP responds to the Government of Canada's needs by providing information on income, pensions, and wealth. Information on what Canadians earn, spend and save is used to inform policy development, and to conduct research on the social and economic conditions of families and individuals. No other organization provides income statistics of the same scope, level of detail, and quality as does Statistics Canada.
Given the importance of income statistics in social and economic policy-making and business decision-making, there will continue to be an interest in conducting research that uses income statistics. Demographic changes in the Canadian population, specifically the aging population will drive interest in certain types of data and analyses, for example, pensions. Economic cycles also create interest in certain types of data, for example, income distribution during recession and post-recession periods. In addition to those topics, there are several areas of future research interest, such as: growing income disparities, debt, and the economic performance of Canadian companies in global markets. All these factors support the conclusion that there is a strong continued need for ISP.
Performance (Achievement of Outcomes)
Overall, accessibility and timeliness are satisfactory among users. There may be opportunities to improve the timeliness of periodic/one-time surveys and accessibility issues related to Personal Income Tax data were noted. It should be noted that in 2013-14, the Longitudinal Administrative Database (LAD) was placed in the Federal Research Data Centre as a pilot project to assess the feasibility of allowing access to RDC researchers. The LAD consists of a 20% longitudinal sample of Canadian tax filers and provides researchers and analysts with a tool for studying the changes in income experienced by individuals and their families. The pilot project is currently being evaluated and the next phase will be to extend the pilot to another RDC.
A strong majority of users are satisfied with the accuracy, coherence and interpretability of the program's statistical information. There are concerns raised by users. These relate to information on changes to methodologies and the loss of longitudinal surveys. These concerns could be addressed through more communication between ISP and certain of its product users.
Income statistics have been used extensively to inform debate, research and decision-making. Users, which include provinces and territories, non-government organizations, policy think tanks, financial institutions, researchers, and academics, use ISP information for research purposes. Examples of research include: income disparities (including gender disparities), poverty analyses, and determinants of personal income.
Performance (Efficiency and Economy)
ISP has increased the economy and efficiency of its operations. A number of initiatives have been undertaken to reduce costs and increase efficiency.
ISP continually investigates new data sources to support the program. Users indicated that these new directions should continue to be examined.
Tourism Statistics Program (TSP)
Relevance
Tourism is an important sector in supporting the Canadian economy, and tourism statistics contribute to several important travel market analyses and provide key information on this industry to the National Accounts. In 2010, tourism was responsible for $73.4 billion in revenues and represented approximately 2 percent of Canada's overall gross domestic product. It is a dynamic and complex sector, characterized by multiple modes of transportation, multiple points of entry, many geographical areas covered, many activities, and many users. Tourism data are important to users such as academics and businesses to conduct comparative analyses across Canadian jurisdictions and other travel destinations markets. The relevance of tourism statistics is reinforced by the fact that the TSP receives additional requests, on a cost-recovery basis.
While there are other sources of tourism statistics, their products would not meet all the needs of TSP users and, in particular, TSP's internal Statistics Canada users.
The complexity of tourism and the considerable economic impact of the tourism industry suggest that there will be a continued need for these statistics by a wide range of users, including the Government of Canada.
Performance (Achievement of Outcomes)
Accessibility of tourism data is satisfactory. Timeliness has been an issue, although improvements have been noted in this area. TSP's products are indeed contributing some level of knowledge.
Evaluation findings indicate that TPS has been challenged with data quality issues, primarily due to low return rates to its international travel survey. Funding reductions at one of TSP's primary clients in 2012 led to a significant reduction in the funding it provides to TSP. This revenue reduction led to a 50% reduction in sampling for the domestic tourism survey by TSP. As a consequence, the remaining funding partners for the domestic survey are now dissatisfied, which could lead to further funding withdrawals and further sampling reduction. Under the current resourcing model, if partners withdraw their funding, the TSP will no longer have the resources necessary to collect the national tourism data that it needs for the federal government's and Statistics Canada's purposes.
Performance (Efficiency and Economy)
There is evidence of efficient and economical elements within the program. The program has strived to increase economy by relying on other organizations to collect data. Funding received from cost-recovered activities also helps meet the needs of its internal users by funding the provision of data to internal clients. This approach demonstrates economy. However, it increases the risk to Statistics Canada, since TSP's ability to perform core activities depends on its success at finding external funding sources and meeting the needs of cost-recovery clients.
Labour Statistics Program (LSP)
Relevance
Data from the Labour Statistics Program are important sources of information for assessing the economic health of the nation. LSP data are important for organizations such as the Bank of Canada and programs such as Employment Insurance. These data are used to meet legal requirements and international obligations. LSP outputs are an important contributor to the federal government's statutory obligations and policy framework, and to Canada's ability to conduct economic analyses. Because of the government's and country's need for high quality statistics in these topic areas, LSP's involvement in producing these data is fully consistent with federal roles and responsibilities. There will continue to be a demand for labour statistics on the part of governments, the private sector, academia, the not-for-profit sector, and Canadians interested in the economy. Continued interest in the state of the nation's economic health and the high rate of use of LSP data indicate that LSP's products will continue to make an important contribution.
Performance (Achievement of Outcomes)
LSP is achieving its outcomes. Labour statistics were considered to be accessible and timely. The quality of labour statistics data is high. A large majority of users are satisfied with the accuracy, interpretability and coherence of the data. LSP statistics are used to inform debate, research, and decision-making. Its information has been and continues to be used for purposes as varied as economic monitoring and forecasting, program delivery and monitoring, wage settlement, contract escalation, as well as to inform the general public.
Education Statistics Program (ESP)
Relevance
ESP provides information related to education, training and learning as well as a number of national indicators and some internationally comparable pan-Canadian education indicators. It also provides information that contributes to other Statistics Canada programs and fulfils international obligations. ESP plays a key role by aggregating and harmonizing information, thereby making inter-jurisdictional and international comparisons possible. Internationally, organization like the OECD and United Nations Statistics Division rely on data produced by ESP. Given the importance of education internationally, the demand for information on education statistics is expected to continue. Also, factors such as low population growth, an aging labour force, and rising demand for skilled workers will likely drive continued research into educational matters, furthering the demand for these statistics.
Performance (Achievement of Outcomes)
Users are satisfied to a large extent with the accessibility and timeliness of Education Statistics Program data. They are also satisfied with the accuracy, interpretability and coherence of the data. ESP data are useful to a range of organizations domestically and internationally. Thousands of pages on the Web and documents in scientific literature have cited ESP products.
Recommendations
Recommendation 1 (Income Statistics Program):
The Income Statistics Program should increase its communication with certain of its user groups, to address concerns related to information on changes to methodologies and quality of some data, and resolve issues to the extent possible. This communication could be achieved using existing committee structures, memoranda of understanding, service-level agreements, and other suitable mechanisms.
Recommendation 2 (Tourism Statistics Program):
In light of a low response rate for the International Travel Survey, the program should address issues related to methodologies and collection approaches to the Travel Statistics Program.
Considering the relative importance of cost recovery revenues for the Tourism Statistics Program, it is important to ensure that a reduction in cost recovery does not prevent the program from producing the statistics needed by Statistics Canada. LEIT management should develop a contingency plan for action if it were to lose a significant volume of revenue-generating clients. The plan could include steps such as the reallocation of resources and working with internal clients to prioritize the statistical inputs required to support Statistics Canada programs.
Management Response and Action Plan
Recommendation 1
Focus: Income Statistics Program:
The Income Statistics Program should increase its communication with certain of its main user groups, to address concerns related to information on changes to methodologies and quality of some data, and resolve issues to the extent possible. This communication could be achieved using existing committee structures, memoranda of understanding, service-level agreements, and other suitable mechanisms.
Statement of Agreement / Disagreement
Management agrees with the proposed recommendation.
Management Response
Work is currently underway to consult more widely with user groups for particular surveys for which ISD is responsible. For example, a steering committee for key Statistics Canada users of the Survey of Household Spending (SHS) has been established and meets approximately every 3 to 4 months to discuss SHS survey results and design questions. In addition, a number of bi-lateral meetings have taken place with key internal SHS stakeholders to discuss and prioritize changes to the survey design. Further, external consultations have also taken place with key external SHS users to discuss the SHS design (e.g., Finance Canada, Bank of Canada (upcoming), System of National Accounts and Consumer Price Index external advisory committees (upcoming)), and will continue in the future.
For other surveys within ISD, steering committees (e.g., for the Longitudinal and International Study of Adults), as well as other forms of communication with clients, stakeholders and key users will continue as required. Should a major survey redesign be undertaken, a consultation process, where applicable, will be conducted.
Table 1 Recomendation 1
Timeline
Deliverable(s)
Responsible Party
September 2015
A review of the ISP steering committee structure/survey consultation process (both internal and external) will be conducted in 2015 to ensure the proper governance mechanisms are in place for the division.
Director General, ELISB
Director, Income Statistics Division
Recommendation 2
Focus: Tourism Statistics Program:
In light of a low response rate for the International Travel Survey, the program should address issues related to methodologies and collection approaches to the Travel Statistics Program.
Considering the relative importance of cost recovery revenues for the Tourism Statistics Program, it is important to ensure that a reduction in cost recovery does not prevent the program from producing the statistics needed by Statistics Canada. LEIT management should develop a contingency plan for action if it were to lose a significant volume of revenue-generating clients. The plan could include steps such as the reallocation of resources and working with internal clients to prioritize the statistical inputs required to support Statistics Canada programs.
Statement of Agreement / Disagreement
Management agrees with the proposed recommendation.
Management Response
Various initiatives have been initiated in 2014-2015 to mitigate risks associated with the potential loss of additional funding partners, but also to seek out alternative methodologies and collection approaches to the Travel Statistics Program.
Three-year funding was received from Statistics Canada's planning process to examine alternate collection approaches to tourism statistics including identification of key data needs for internal purposes and feasibility of merging survey tools for international and domestic travel by Canadians.
The process flow for the capture and processing of border clearance cards (E-311) from the Canadian Border Services Agency (CBSA) is being examined to identify opportunities for streamlining in partnership with CBSA.
The process flow of the monthly frontier counts component for the International Travel Program is being examined to identify potential automation.
Table 2 Recomendation 2
Timeline
Deliverable(s)
Responsible Party
June 2015
Feasibility study for the merging of the International Travel Survey (ITS - Canadian travellers) and the Travel Survey of Residents to Canada (TSRC)
Director General – ELISB / Director TCESD / Chief, Tourism Statistics Program
August 2015
New contract for the capture and processing of the border clearance cards taking into account revised requirements
Director General – ELISB / Director TCESD/ Chief, Tourism Statistics Program in collaboration with CBSA and Services Canada
April 2017
Collection and processing tools development of the new combined survey completed
Automation of the monthly frontier counts process
Director General – ELISB / Director TCESD/ Chief, Tourism Statistics Program
December 2017
Testing of the new household tourism survey completed including a 3-month field test
Director General – ELISB / Director TCESD/ Chief, Tourism Statistics Program
New Dissemination Model — Home page, Navigation and Data Tables
Archived information
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In April 2012, Statistics Canada launched its multi-year New Dissemination Model project with the goal to modernize the methods and framework for disseminating data via its website. The key objective is to create a user-centric website and to increase coherency, consistency and simplicity in dissemination activities.
As part of this project, Statistics Canada held consultations with Canadians in June 2015. This final pre-launch consultation evaluated the website's ease of navigation and user satisfaction with the refined design. Evaluation sessions focussed on testing the updates made to: the main menu; the data, analysis, reference and Census pages; and the geography mapping tool.
Consultation methodology
Statistics Canada conducted in-person usability consultations. Participants were asked to complete a series of tasks and to provide feedback on the proposed website.
How to get involved
This consultation is now closed.
Individuals who wish to obtain more information or to take part in a consultation may contact Statistics Canada by sending an email to consultations@statcan.gc.ca.
Please note that Statistics Canada selects participants for each consultation to ensure feedback is sought from a representative sample of the target population for the study. Not all applicants will be asked to participate in a given consultation.
Statistics Canada is committed to respecting the privacy of consultation participants. All personal information created, held or collected by the Agency is protected by the Privacy Act. For more information on Statistics Canada's privacy policies, please consult the Privacy notice.
Results
What worked
Most participants successfully completed a series of tasks on various pages of the proposed website. In terms of the main menu, the labels ‘About StatCan’, ‘Geography’, ‘Analysis’, and ‘Surveys and statistical programs’ were well received. Participants successfully used the horizontal ‘Key statistics’ layout and preferred the version that provided provincial data. The tab layout of the results page was understood by participants—they knew that when they clicked on a tab, the displayed results were limited to that tab.
The button labels for the two download options were also well received. Participants understood the different functionality of the two buttons and correctly selected the right option for downloading a table as displayed.
With the Geography mapping tool, most participants were able to go back to a map of Canada using an alternate path (they did not use the available button).
The ‘Sort by’ labels on the results page were understood by most participants and they preferred the current labels (‘Sort by relevance’ and ‘Sort by most popular’). Finally, as an indicator icon to obtain additional information, the participants preferred the information icon to the question mark icon. This icon would be placed next to key items.
Areas for improvement
Infrequent users were not aware of the National Household Survey, or how it related to the Census of Population.
The ‘More key statistics’ button was sometimes overlooked in the ‘Key statistics’ area.
The proposed layout of some Census and National Household Survey table results (‘grouped tables’) was not clear to some users and they were hesitant to click on the link to the appropriate table.
The proposed icons for ‘Revert-to-Canada” and ‘Settings’ on the Geography mapping tool were not intuitive for participants.
Recommendations
Keep the current labels on the main menu.
Retain the current ‘Sort by’ labels.
Use the horizontal layout for ‘Key statistics’ and have the provinces clickable on the page. Increase the font size for the ‘More key statistics’ button.
Provide succinct explanations for the Census program and the relationship between the Census of Population and the National Household Survey and the Census of Agriculture.
On the Census program page, use tiles to illustrate the featured items. Use an information icon to explain what each tile is about.
In the layout of the ‘grouped tables’, link the table’s title as well as the individual table number.
Use ‘Download as displayed’ and ‘Download data series’ on the buttons within the ‘Download table’ options.
For the Geography mapping tool, use a button with Canada on it for the ‘Revert-to Canada’ function and use a gear icon for the ‘Settings’ button.
Use an information icon to indicate that there is more information available about an item.
Statistics Canada thanks participants for their participation in this consultation. Their insights guide the agency's web development and ensure that the final products meet users' expectations.
By Susie Fortier and Guy Gellatly, Statistics Canada
This special edition article provides nontechnical answers to selected questions related to the use and interpretation of seasonally adjusted data. Organized as a set of Frequently Asked Questions (FAQ), it complements the more technical discussions of seasonal adjustment in Statistics Canada publications and reference manuals.
This reference document is divided into two sections. Section 1 is a review of concepts and definitions that are central to the theory and practice of seasonal adjustment. Section 2 is a discussion of selected issues that are related to the analysis and interpretation of seasonally adjusted data.
Section 1: Context, definitions and terminology
1. What is a time series?
A time series is a sequence of observations collected at regular time intervals. These data provide information on a well-defined statistical concept for a specific reference period, and are presented at different points in time. Most economic data disseminated by Statistics Canada are presented as a time series. Examples include the monthly data on consumer prices, retail sales, employment and gross domestic product. These data correspond to monthly reference periods that are available for a long sequence of months, to facilitate comparisons over time.
2. What is a seasonally adjusted time series?
Monthly or quarterly time series data are sometimes influenced by seasonal and calendar effects. These effects can bring about changes in the data that normally occur at the same time, and in about the same magnitude, every year. For example, monthly retail sales have historically been at their highest level for the year in December as a result of holiday shopping, and then declined to lower levels in January. This occurs year after year and affects the extent to which information on trends in retail industries can be informed by comparing raw sales data for these two months. A seasonally adjusted time series is a monthly or quarterly time series that has been modified to eliminate the effect of seasonal and calendar influences. The seasonally adjusted data allow for more meaningful comparisons of economic conditions from period to period. A raw time series is the equivalent series before seasonal adjustment and is sometimes referred to as the original or unadjusted time series.
3. Why is seasonal adjustment needed?
Many users of economic and social statistics rely on time series data to understand changes in socio-economic phenomena over time. Important statistical properties of a time series include its direction and turning points, as well as its relationship to other socio-economic indicators. A seasonal pattern in a series can obscure these important features by making period-to-period movements in the data more difficult to interpret. Many users of time series data do not consider movements in the data that relate to seasonal and other calendar effects to be analytically meaningful. These seasonal and calendar effects can obscure "true" underlying movements in the data series related to the business cycle, or to non-seasonal events, such as strikes or unanticipated disruptions in production. Consequently, seasonal adjustment techniques that remove the effect of seasonal and calendar influences from the original data can sharpen the extent to which a time series can be used to evaluate meaningful changes in economic conditions over time.
4. Is seasonal adjustment always required?
Seasonal adjustment may not always be appropriate or required. It is not necessary to seasonally adjust a series that does not exhibit an identifiable seasonal pattern or other calendar-based influences. It is also not always advisable to use seasonally adjusted data when the raw estimate represents the true statistic of interest. For example, decision makers who rely on the Consumer Price Index (CPI) for indexation purposes are advised to use unadjusted data—as these reflect the actual price movements observed from period-to-period. However, data users who are more interested in analyzing underlying price trends in the economy are encouraged to use seasonally adjusted indexes.
Similarly, analysts who are interested in calculating the raw growth in the number of young adults working from April 2012 to May 2012 should examine the raw estimates for these two months, and calculate the difference. This month-to-month change in raw employment might not yield much useful information about changes in the labour market conditions facing young adults if seasonal or calendar effects have a significant influence on employment levels in either or both months. However, the raw data show the extent to which actual employment for this group grew, or contracted, from April to May—which may be useful information for other purposes.
5. How common is seasonal adjustment at Statistics Canada?
Statistics Canada seasonally adjusts almost all of its major sub-annual economic indicators, including quarterly and monthly estimates of gross domestic product, and monthly employment estimates from the Labour Force Survey. Although the vast majority of the agency's releases highlight seasonally adjusted data, both the seasonally adjusted series and unadjusted series are often made available.
6. How are seasonally adjusted data estimated?
Seasonally adjusted data are estimated by breaking down time series data into various components. Using well-established statistical techniques, this process involves decomposing a time series into four separate components: (1) the trend-cycle, (2) seasonal effects, (3) other calendar effects such as trading days and moving holidays, and (4) the irregular component. The seasonally adjusted series is the original time series with the estimated seasonal and calendar effects removed, or equivalently, the estimated combination of the trend-cycle and the irregular components.
7. What are the time series components?
A time series can be split into four separate time series components: (1) the trend-cycle, (2) seasonal effects, (3) other calendar effects such as trading days and moving holidays, and (4) the irregular component. Here is an overview of each:
The trend-cycle: This represents the smoothed version of the time series and indicates its general pattern or direction. The trend-cycle can be interpreted as the long-term movement in the time series, the result of different factors (or determinants) that condition long-run changes in the data over time. As its name suggests, the trend-cycle also reflects periodic expansions and contractions in economic activity, such as those associated with the business cycle.
Seasonal effects: These represent regular movements or patterns in time series data that occur in the same month or quarter every year. On the basis of past movements of the time series, these regular patterns repeat themselves from year to year. These seasonal patterns are fairly stable in terms of timing, direction and magnitude. Often these seasonal effects relate to well-established calendar-based variations in economic activity, such as the increase in retail sales in the lead up to Christmas, or increases in construction employment in the spring. Seasonal effects identify these regularly occurring patterns in the data.
Other calendar effects such as trading days and moving holidays: Aside from seasonal effects, other systematic calendar-based effects can influence the level of economic activity in a specific period. The most important of these are the trading-day effects. These effects can be present when the level of economic activity varies depending on the day of the week. For example, retail sales are usually higher on Saturdays than on any other day of the week. Consequently, a five-Saturday month is more likely to result in higher retail sales than a month with only four Saturdays. Another common example of a calendar effect is the date of Easter, which can be expected to increase retail sales in March or April depending on the month in which it occurs. This particular calendar effect is referred to as a moving holiday effect.
The irregular component: This component includes unanticipated movements in the data that (1) are not part of the trend-cycle, and (2) are not related to current seasonal factors or calendar effects. The irregular component could relate to unanticipated economic events or shocks (for example, strikes, disruptions, unseasonable weather, etc.), or can simply arise from noise in the measurement of the unadjusted data (due to sampling and non-sampling errors).
8. Which components are included and excluded in a seasonally adjusted series?
Seasonal effects and other calendar effects such as trading days and moving holidays are excluded from seasonally adjusted series. Consequently, the seasonally adjusted series is the combination of the trend-cycle and the irregular component. The contribution of the irregular component is worth emphasizing, because seasonally adjusted data are sometimes misinterpreted as providing users with "pure" information on the trend-cycle.
9. Why are raw and seasonally adjusted data revised over time?
The raw data can be revised to take into consideration additional data that were reported late, to correct data that were initially misreported, or for various other reasons. In such cases, the seasonally adjusted data that are based on unadjusted data also need to be revised.
Hindsight is very important for time series analysis. Even when the raw series has not been revised, it is often useful to revise the seasonally adjusted data. To estimate the seasonal effects at any given point in time, statisticians use information from previous, current and future observations. Information about future observations is not available in real time, so seasonal adjustment is conducted using previous and current values, along with projected values. These projections are based on a statistical model that uses past information. As new data becomes available, the various time series components can be estimated more accurately. This results in revised, more accurate estimates of the seasonally adjusted data.
Periodically, the methods used to estimate time series components for specific data series are also reviewed. Each statistical program at Statistics Canada has its own revision strategy, and schedules are routinely made available to data users in advance of these revisions.
10. Do year-over-year comparisons of raw data work as well as more formal seasonal adjustment techniques?
Comparing raw data for the same period in each year provides information on long-term trends and economic cycles, but these comparisons do not necessarily remove all the seasonal patterns from the data. Certain holidays, like Easter, do not fall on the same date or even in the same month from year to year. If the timing of these holidays influences the variable being measured, such as monthly retail sales, raw year-over-year comparisons can be misleading. For example, in 2013, Easter was on March 31st, whereas in 2012, it was on April 8th. Thus, it may be misleading to conclude that the change in sales from March 2012 to March 2013 reflects underlying trends in retail industries, as differences in sales may have been influenced by the timing of the Easter holiday.
Similarly, year-over-year comparisons of raw data ignore the trading day effect, which occurs in many series, and can affect the validity of year-over-year comparisons. For example, many businesses generate less output on Saturday and Sunday than during weekdays. In 2011, October began on a Saturday, and included 5 full weekends and 21 weekdays. In 2012, October began on a Monday, and included 4 full weekends and 23 weekdays. A simple year-over-year comparison between these two months will not account for these differences, and could affect the analysis of changes in economic output over time.
Even when no other calendar effects are present in the data, comparing the same periods in each year can still be problematic. In general, it can be shown that this type of comparison lacks timeliness for the identification of turning points (the point at which a decreasing series, for example, begins to increase).
Comparing a current value with only one past value (the value of the series 12 months before the current reference month) can also be misleading if that particular value is unusual. For example, comparing economic data for British Columbia for February 2011 to data for February 2010 (the month in which the province hosted the Winter Olympics) may not yield useful information about changes in trends. To partially mitigate this effect, data for the current month (February 2011) can be compared with an average of the data for previous Februarys (for example, the past five years). A similar technique can be applied to examine month-to-month movements. For example, the December to January movement of this year could be compared with a historical average of December to January movements for the last five years. Although this method may yield some additional insight, some measure of caution is warranted as it does not take the place of more formal seasonal adjustment techniques.
References
Ladiray, D. and Quenneville B. (2001) Seasonal Adjustment with the X-11 Method, Springer-Verlag, Lecture Notes in Statistics, vol 158.
Section 2: Issues related to analysis and interpretation
1. How do I interpret period-to-period changes in seasonally adjusted data?
Period-to-period changes in raw data and period-to-period changes in seasonally adjusted data provide different information. To illustrate this, consider hypothetical employment data from a monthly industry survey. Every month, these data are collected and processed to obtain an estimate of total industry employment. This estimate is raw (not seasonally adjusted)—it is a measure of the number of people working in the industry in the reference month, without distinguishing between (or disentangling) the various time series components that contribute to this estimate.
Before publication, this estimate of industry employment is seasonally adjusted, to remove the influence of seasonal and calendar effects from the raw data (using current and past information on industry employment). This adjusted estimate is the official estimate of industry employment released in The Daily.
An important note about comparisons over time—the difference between the seasonally adjusted employment estimates for two consecutive months cannot be interpreted as the raw difference in the number of people actually working in the industry in these months. The raw difference is the difference in the unadjusted employment estimates obtained directly from the survey.
Rather, the difference in the month-to-month seasonally adjusted estimates is a direct measure of the change in the number of people working, after expected changes due to the variation in seasonal employment between these two months are taken into account. The resulting number may be less than the raw difference or it may be more, depending on how seasonal effects are changing from month to month.
The example below illustrates the distinction between raw and seasonally adjusted data, using hypothetical employment data for an industry, collected over two consecutive months. In this example, it is assumed that there are no other calendar effects.
Table 1
Industry employment, raw and seasonally adjusted Table summary
This table displays the results of Industry employment. The information is grouped by Time Period (appearing as row headers), Unadjusted data, Seasonally adjusted data, Trend cycle, Irregular component and Seasonal effects (appearing as column headers).
Time Period
Unadjusted data
Seasonally adjusted data
Trend cycle
Irregular component
Seasonal effects
Persons
Source: Statistics Canada, authors' calculations.
Month 1
6,200
7,200
6,650
550
-1,000
Month 2
5,400
6,800
6,500
300
-1,400
Change (month 2 minus month 1)
-800
-400
-150
-250
-400
In month 1, the unadjusted estimate of industry employment was 6,200; the seasonally adjusted employment estimate was larger, at 7,200. Accordingly, the employment attributed to seasonal effects in month 1 was -1,000. What does this mean?
It means that about 1,000 fewer employees were expected to be working in month 1 when compared with a generic average level of industry employment throughout the year. These "expected" and "average" levels are based on historical patterns that reflect typical seasonal movements in these data.
Accordingly, these 1,000 fewer employees are added back into the employment estimate for month 1, yielding a seasonally adjusted estimate that is larger than the unadjusted, or raw, estimate collected from the survey. Why is this done? This occurs because the objective of seasonal adjustment is to make the month-to-month data more comparable so that they provide better information about trends and cyclical movements. Seasonally adjusting the data puts month-to-month comparisons on equal footing.
The estimate of industry employment for month 2 exhibits a similar pattern, with the final seasonally adjusted estimate exceeding the unadjusted estimate. In this month, 1,400 fewer employees would be expected to be working in the industry (compared with a generic average level of monthly employment throughout the year), based on regularly occurring seasonal movements. Adding this employment back into the unadjusted estimate from the survey data brings the published (seasonally adjusted) estimate to 6,800.
Both months are examples of "adding back" – supplementing the survey data with additional employment – because the seasonal effects are negative. In these cases, less employment is expected in the reference month because of past seasonal patterns, so employment has to be added back in to make the data comparable from month to month. For other months, the reverse could apply—because the seasonal factors are positive. In these months, more employees are expected to be working than in the hypothetical average month, so seasonal adjustment removes some employment from the unadjusted data to put these months (in statistical terms) on an equal footing with other months during the year.
2. How do seasonal patterns affect the interpretation of month-to-month changes?
The interpretation of month-to-month changes can be complex because it involves some of the more technical aspects of the data modelling used in seasonal adjustment routines. Seasonal patterns can be modelled "additively" or "multiplicatively". If seasonal patterns are modelled as additive, the extent to which month-to-month changes in employment are being influenced by changes in the seasonal effects can be examined in a fairly straightforward fashion.
To see this, consider again the hypothetical employment data used in the example in question 11. Seasonally adjusted employment fell from 7,200 in month 1 to 6,800 in month 2, a net decline of 400 workers.
This is different from the unadjusted change calculated directly from the survey data. The unadjusted estimate fell from 6,200 in month 1 to 5,400 in month 2, a net decline of 800 workers, or twice the decline in the seasonally adjusted data.
What accounts for the large difference in these two estimates? As noted above, both months had negative seasonal effects. This means that, in view of past patterns of seasonality, lower industry employment is expected in each of the two months when compared with an annual generic monthly average. But the negative seasonal effect in the second month was larger in absolute terms, by some 400 workers. While about 1,000 workers were added to the raw survey data in month 1 to obtain the seasonally adjusted estimate, some 1,400 workers were added back in month 2.
Numerically, about 40% of this reduction in the seasonally adjusted estimate can be attributed to changes in the trend-cycle. The remaining 60% is due to the irregular component.
3. Which estimate—seasonally adjusted or raw—is "correct"?
Both estimates are correct, as both derive from legitimate statistical processes. The choice of one over the other depends on the purpose of the analysis.
If users are interested in estimates of the actual level of industry employment in a particular period (the number of people working), or in the period-to-period changes in these actual employment levels, these estimates can be obtained directly from surveys without any seasonal adjustment.
A problem arises when trying to use these unadjusted data to interpret changes in economic conditions. The raw data reflect the combined effect of all components that contributed to the observed level of employment in a monthly or quarterly period. This includes the trend-cycle, the seasonal effects, the other calendar effects and the irregular component. In the example in question 11, it is correct to say that industry employment declined by 800 workers from month 1 to month 2— the decline tabulated directly from the raw data. But it is less appropriate to attribute this decline to specific factors, such cyclical downturns, while ignoring the potential influence of other components, such as routine changes in seasonal hiring patterns, which also contribute to changes in the raw data.
The key point is that the choice between seasonally adjusted and raw data is context-driven. It depends on the issue that the data are attempting to inform, and whether period-to-period movements in these data that derive from seasonal influences are relevant to that issue.
4. How do I interpret seasonally adjusted data when an industry is undergoing structural change?
This question relates to the reliability of seasonally adjusted data. Two points warrant emphasis:
Seasonal effects reflect typical movements in time series data due to established seasonal patterns;
Seasonally adjusted data (which remove the seasonal component and the other calendar effects) are influenced by more than changes in the trend-cycle. They are also influenced by irregular events that, in many cases, have a large impact on the resulting estimate.
Structural change can refer to situations in which some fundamental aspect of an economy or industry is changing, resulting in new conditions that differ from past norms. These could involve major technological innovations that alter the nature of production. They could also involve more routine changes in hiring patterns in response to new administrative practices.
Both of these examples could bring about new seasonal patterns in an industry that contrast with traditional seasonal patterns. How are these reflected in the seasonally adjusted data?
In the short run, these shifts would be regarded as irregular movements in the data, to the extent that they deviate suddenly from expected patterns. Over time, these new patterns would become seasonal and gradually incorporated into the historical record, as new time series information on these changes becomes available. This assumes that these changes are becoming a regular feature of the data—and not the result of irregular events or shocks.
Accordingly, it can be more difficult to interpret movements in seasonally adjusted data when underlying seasonal patterns are evolving or changing rapidly. In such cases, irregular factors can exert a large impact on seasonally adjusted estimates.
5. How does seasonal adjustment account for "unseasonable" weather?
This is a question that relates to a common misconception about seasonally adjusted data—namely, that it is a technique whose sole purpose is to remove the effect of changes in weather or climate from the data. Seasonal adjustment removes the average or anticipated effect of seasonal factors from monthly or quarterly data, many of which have to do with changes in weather or climate. But it is more accurate to state that these seasonal factors relate to all things seasonal—weather and climate-related or otherwise—that have the potential to affect the analysis of trend or cyclical patterns in the data.
The idea of the "average" effect noted earlier is important, as the magnitude of these period-specific seasonal adjustments are again based on historical patterns. If weather or climate conditions are generally reflective of these past patterns, the seasonal adjustment routines can be expected to do a fairly complete job of factoring out movements in the unadjusted data that are attributable to these weather or climate changes. But unseasonable weather, such as the very warm spring in eastern Canada in 2012, is, by definition, not indicative of the average pattern, and will influence seasonally adjusted estimates.
6. What method does Statistics Canada use to produce seasonally adjusted data?
Statistics Canada seasonally adjusts sub-annual time series data using the X-12-ARIMA method, which uses well-established statistical techniques to remove the effect of regular, calendar-related patterns from unadjusted data. Although less complex alternatives may be used, such as comparing the original data in the same period in each year, these techniques have limitations when it comes to removing calendar effects. Accordingly, Statistics Canada recommends the use of formal, established methods for dealing with seasonality. In practice, seasonal adjustment is performed following Statistics Canada Quality Guidelines.
7. Where can I find more information on selected issues?
As mentioned at the start, this document is intended as a practical guide that provides users with additional perspective on issues related to the use and interpretation of seasonally adjusted data. It is designed to complement a paper by Wyman (2010), who illustrated many of these points with Statistics Canada data. In addition, the extensive literature on seasonal adjustment can provide readers with a fuller examination of the issues discussed in this document.
References
Ladiray, D. and Quenneville B. (2001) Seasonal Adjustment with the X-11 Method, Springer-Verlag, Lecture Notes in Statistics, vol 158.
This report presents the results of the evaluation of the Macroeconomic Accounts Programs (MEAP). It covers three fiscal years, from 2010-2011 to 2012-2013. The evaluation was undertaken by the Evaluation and Performance Measurement Division.
This Report was approved by the Departmental Evaluation Committee and the Chief Statistician on November 19, 2014.
In accordance with the accountability requirements in the Treasury Board 2009 Policy on Evaluation and its Directive, this report is available to the public and posted on the departmental website in both official languages.
Statistics Canada also shared this report with its program delivery partners and key stakeholders, including the National Statistical Council.
Evaluation scope, purpose and methodology
The evaluation covers all components of the MEAP, with a particular focus on the International Accounts and Statistics Division (IASD). It addresses a number of questions relating to the continued need for the program, its alignment with government priorities, its consistency with federal roles and responsibilities, the achievement of its expected outcomes, and the extent to which it demonstrates efficiency and economy. It was included in the Departmental Risk-based Audit and Evaluation Plan for 2012-2013 to 2016-2017, which was approved by the Departmental Evaluation Committee on March 2013.
In accordance with the Government of Canada's Policy on Evaluation, the purpose of the MEAP evaluation is to provide an evidence-based, neutral assessment of its value for money, and more specifically, its relevance and performance. In addition, the evaluation design has incorporated all components of the Standard on Evaluation for the Government of Canada to ensure quality, neutrality and utility. Finally, the list of questions addressed in this evaluation incorporates all core issues identified in the Government of Canada's Directive on the Evaluation Function.
Information from multiple sources was used to address the evaluation questions, including:
a document and literature review
a review of financial and administrative data
a series of key informant interviews with program representatives, internal and external users of MEAP data, as well as representatives of relevant international organizations
a survey of data users
case studies
a bibliometric and webometric analysis.
The Macroeconomic Accounts Program
The Macroeconomic Accounts Program (MEAP) is expected to provide a comprehensive set of statistics on economic activities occurring in Canada, as well as economic activities between Canada and the rest of the world. At the time of the evaluation, the program included several components falling into two main groupings: the core accounts and a set of additional accounts. Each of these accounts has its own purpose, which is to provide a specific perspective on the nature of the Canadian economy.
The four components of the MEAP's core accounts provide the fundamental statistics relating to all aspects of Canada's core economic activities. These accounts include the Canadian System of National Accounts, the Canadian Input-Output Tables, the Government Finance Statistics and the International Accounts. The additional accounts falling under the MEAP include the productivity accounts, the capital stock program, as well as satellite accounts covering different aspects of the Canadian economy, such as tourism and culture.
The MEAP is expected to support Statistics Canada's two strategic outcomes by ensuring that:
all Canadians have access to timely, relevant and quality statistical information on Canada's changing economy and society for informed debate, research and decision making on social and economic issues
specific client needs for high-quality and timely statistical services are met.
The Macroeconomic Accounts Branch is responsible for the overall management of the MEAP. Its work is primarily supported by four divisions:
International Accounts and Statistics Division (IASD)
Industry Accounts Division (IAD)
Public Sector Statistics Division (PSSD)
National Economic Accounts Division (NEAD).
During the three years covered by the evaluation, the level of resources allocated to the MEAP has fluctuated. The number of budgeted full-time equivalents (FTEs) has varied between 301 and 333, and its total budgeted expenditures have varied between $26 million and $30 million.
Evaluation conclusions and recommendations
The analysis of the information gathered as part of this evaluation resulted in findings and conclusions about the relevance and performance of the MEAP, which led to three recommendations.
Conclusions
Relevance
The MEAP plays a critical role in supporting a number of decisions related to Canada's economic growth. First, it provides the required statistical information for the implementation of a number of legislative requirements, including those related to equalization payments, harmonized tax systems, and to the monitoring of foreign ownership and control of Canadian businesses. It also allows Canada to uphold a number of international reporting commitments to the international community such as the IMF and UN.
Evaluation findings also confirm that the nature of the economic information being gathered, the process by which it is gathered, and the purpose for which it is gathered are all consistent with the roles and responsibilities of the federal government. Moreover, considering the economic crisis that Canada has had to face during the period covered by the evaluation, there was a strong alignment between the activities undertaken through the MEAP and the priorities of the federal government.
What evaluation findings also indicate, however, is that a number of drivers are fundamentally changing the nature of economic activities and economic relationships among countries, which creates expectations that different or new statistical data will be produced to adequately monitor the impact of these new trends. To meet these new information needs, the Macroeconomic Accounts Branch has undertaken a number of initiatives, including the implementation of new international standards. While these efforts are significant, evaluation findings also confirm that a number of information gaps remain and, in order to adequately address them, new activities will need to be undertaken.
Achieving expected outcomes
The MEAP has made significant progress towards its expected outcomes. First, the program has allowed all key stakeholders to readily access statistical information related to many dimensions of Canada's economy. While some metadata information requires updating, statistical users have had access to information supporting the appropriate use of the data. While these statistics are released within the prescribed timeframe, the evaluation has found that there are growing pressures to release this statistical information within a shorter timeframe in order to meet the requirements and expectations of key stakeholders.
Second, the MEAP data has enhanced the level of knowledge of its key users. Evaluation findings point to a high level of satisfaction in relation to the interpretability of the data produced. This is particularly significant considering the increasing complexity of the information provided in light of the implementation of new international standards. A structural characteristic that works in favour of Statistics Canada is its high level of operational integration, which contributes to the coherence of the data produced. In this context, the MEAP has been in a position to produce data that have not required significant revisions. This is an indication of strong reliability, which is an important indicator of data accuracy.
Third, the MEAP data is used in a wide range of settings and for multiple purposes. The evaluation findings confirm that it is primarily in applied settings that MEAP data are used to shape economic, fiscal and monetary policies. While the data is also used for research purposes, current practices are such that the data is often used without being directly or properly cited in academic publications. This creates significant challenges in attempting to adequately measure the extent to which the data is used in academic settings.
Efficiency and economy
The evaluation findings on economy and efficiency, which focuses on the IASD as an illustrative example, found that the Division has been required to maintain data releases and other information products within a reduced budget. The fact that the Division has maintained its schedule of data releases with reduced staff levels creates an apparent lowering of unit cost in the production of the international accounts and statistics. On the surface, it would appear that IASD has become more efficient. However, against these efficiency gains must be set an increased potential for errors and slippages in the schedule, which would negatively affect relevance and reputation. While this risk appears to have been managed because of professional commitment, there is evidence that the information production processes are being progressively stretched.
A closely related issue is that the resource constraints may increasingly place the division in a position of not being able to fulfill its entire mandate. The changing nature of the economy, in particular the globalization of manufacturing and services, means that government and industry decision-makers need new varieties of information to set policy and make investments. In addition to meeting this demand for new information perspectives, the resource constraints also pose another relevancy risk, in that they limit the Division's ability to serve other federal government users who often are prepared to participate in a cost-recovery process. Also, the transition towards the centralization survey data collection activities has proven to be more challenging than anticipated, particularly for smaller divisions such as the IASD with highly-specialized survey activities. As a result, the expected financial relief on the Division did not materialize as initially expected.
Two other important findings emerged in the evaluation. First, the financial administration system in general and the time recording processes in particular do not support the tracking of staff time (costs) through the diverse activities that lead to the range of outputs. Second, while the Division maintains procedures that document the activities needed to support data releases, these are not business process models of the activities that support explicit measurement of activities needed to support the realization of the diverse range of IASD outputs.
Recommendations
Based on all evaluation findings gathered as part of this evaluation, the following recommendations are submitted for consideration by the Macroeconomic Accounts Branch:
Recommendation 1 (performance measurement):
It is recommended that the MEAP proceed with the implementation of a performance measurement system to ensure the availability of timely performance information to support ongoing program management and decision making, demonstrate the achievement of program expected outcomes and support future evaluations (including up-to-date business process models for outputs, list of outputs produced and released and a register of data users).
Recommendation 2 (relevance, efficiency and economy):
It is recommended that IASD, establish/implement the appropriate strategy to enhance its capacity and explore avenues to resume the provision of cost-recovery services to deal with the current relevancy risk, the increased potential for errors and slippages in the schedule and to address some of the unmet needs of users.
Recommendation 3 (performance):
To ensure that data users have a proper understanding of its macroeconomic products, it is recommended that the Macroeconomic Accounts Branch ensure the timely update of all applicable metadata information.
Management Response and Action Plan
Recommendation 1
Performance Measurement
Focus : IASD and MEAB
It is recommended that the MEAP proceed with the implementation of a performance measurement system to ensure the availability of timely performance information to support on-going program management and decision making, demonstrate the achievement of program expected outcomes and support future evaluations (including up-to-date business process models for outputs, list of outputs produced and released and a register of data users).
Statement of Agreement / Disagreement
Management agrees with the proposed recommendation.
Management Response
Management has already started implementing a system to produce regular and timely performance measures to address all outcomes identified in the MEAB logic model. In addition, the corporation has begun to develop standardized performance measures as well. Once these indicators have been developed the MEAB will update its performance management strategy and ensure that the PMS accurately describes the performance measures. In addition to the performance measures IASD and the MEAB will create a catalog of its various outputs and maintain an up to date list of data users which have contacted the agency for MEAB information.
Table 1 Recomendation 1
Timeline
Deliverable(s)
Responsible Party
April 2015
Development of the MEAB specific Performance Measures.
Director General – MEA / Manager National Accounts Integration Group
April 2015
Incorporation of corporate performance measures into the MEAB Performance Measurement Strategy.
Corporate Task force on performance measurement.
April 2015
Register of Data users based on individuals who have contacted the branch for MEA related information.
Director General – MEA / Manager National Accounts Integration Group
Recommendation 2
Relevance, Efficiency and Economy
Focus : IASD and MEAB
It is recommended that the IASD, establish/implement the appropriate strategy to enhance IASD capacity and explore avenues to resume the provision of cost-recovery services to deal with the current relevancy risk, the increased potential for errors and slippages in the schedule and to address some of the unmet needs of users.
Statement of Agreement / Disagreement
Management agrees with the proposed recommendation.
Management Response
Work is already underway to enhance the capacity of the International Account and Statistics Division. Recently the division merged with the International Trade Division. This merger has brought in a great deal of expertise into the division as well as an opportunity to streamline operations and create new data products which will lead to increased capacity to not only deliver the current set of programs but also take on cost recovery work. In addition, the International Trade Division, has a long history of undertaking extensive cost recovery work – this expertise can be shared with other programs in the division. The branch is seeking and has secured some new funding that will ensure the division has increased capacity to deliver its programs and expand its programs where required. Some of the funding has been provided from the Economic Statistics Field while other funding opportunities are being discussed with other departments. Given the cross cutting nature of this work (measuring global production, merchanting, international financial flows) and their impact in other program areas the agency as a whole will need to find ways to increase its capacity to deal with these emerging issues
The division has been engaged in a number of staffing processes over the last fiscal year and will be hiring a number of economists. Finally, the division has been actively participating in the development of the Macroeconomic Accounts training program. This training program will be used to develop the human capital within the division to allow them to more effectively perform their duties.
While there are some unmet needs of users it will be difficult for IASD to move forward on a number of data products until there is international agreement around concepts, methods and the implementation timeframe for these data products. Statistics Canada cannot unilaterally implement changes to its international accounts program until the changes are implemented by our major trading partners (e.g. the US). If these changes are implemented unilaterally international account asymmetries will arise making the data confusion for our users and less relevant. The international accounts program will remain active on the international front to ensure these changes are coordinated among countries.
Table 2 Recomendation 2
Timeline
Deliverable(s)
Responsible Party
April 2014
Merger of the International Trade Division and International Accounts and Statistics Division
Assistant Chief Statistician – Economic Statistics / Director General – MEA / Director General – Economy Wide Statistics / Director – International Accounts and Statistics / Director – International Trade Division
April 2015
Secure additional funding for programs such as the Exporter / Importer Register, Foreign Affiliate Statistics and Securities programs to meet emerging user needs.
Director General – MEA / Director – International Accounts and Statistics Division
April 2015
Secure additional funding for programs to address the needs of the international community for data related to financial stability and international linkages (G20 data gaps initiative and SDDS+).
Assistant Chief Statistician – Economic Statistics / Director General – MEA / Director – International Accounts and Statistics / Director – International Trade Division / Director – Financial Planning Division
April 2015
Completion of the Macroeconomic Accounts Training curriculum.
Director General – MEA / Director – International Accounts and Statistics Division
April 2015
Hiring or promoting a number of economists within the division.
Director – International Accounts and Statistics Division
Recommendation 3
Performance
Focus : MEAB
To ensure that data users have a proper understanding of its macroeconomic products, it is recommended that the Macroeconomic Accounts Branch ensure the timely update of all applicable metadata information.
Statement of Agreement / Disagreement
Management agrees with the proposed recommendation.
Management Response
The Macroeconomic Accounts Branch is developing a meta data model and associated meta database to be used to store SNA meta data, display those meta data to internal and external users and facilitate the loading, editing and auditing of those meta data. The model will be embodied in a relational meta database and is presently a work in progress. Once the model has been completed programs within the MEA will be targeted to populate the database with current meta data information. Once populated the information will be loaded into Statistics Canada Integrated Meta Database (IMDB) and made public via the Statistics Canada website where it can be accessed directly from CANSIM (in association with the actual data). The International Accounts and Statistics programs will be targeted as one of the first programs to supply the updated meta data information.
Table 3 Recomendation 3
Timeline
Deliverable(s)
Responsible Party
December 2015
Release of: User Guide to the Macroeconomic Accounts
Director General - MEA
April 2015
Release of updated and detailed BOP metadata in the IMDB.
Director General – MEA / Director – International Accounts and Statistics Division.
April 2016
Release of updated and detailed IIP and other IATD metadata in the IMDB
Director General – MEA / Director – International Accounts and Statistics Division.