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Issue #2: Who Are Unemployed in Peel and Halton? | October 1, 2013
THE RAW NUMBERS
To start with, residents of Peel and Halton experience unemployment differently. Typically, Peel residents, whether youth or adults, have a higher unemployment rate than Halton residents.
Table 1: Annual unemployment rate, Peel and Halton residents, by age group, 2006-2012
|
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
2012 |
Youth aged 15-24 years old |
Peel |
13.0% |
13.6% |
13.1% |
19.5% |
18.9% |
16.0% |
17.0% |
Halton |
10.9% |
9.2% |
11.1% |
13.7% |
11.2% |
14.3% |
13.3% |
Adults aged 25 years and older |
Peel |
5.2% |
5.7% |
5.6% |
9.1% |
8.3% |
7.2% |
7.7% |
Halton |
2.3% |
3.2% |
3.3% |
5.3% |
4.6% |
4.8% |
4.5% |
Chart 1: Annual unemployment rate, Peel and Halton residents, by age group, 2006-2012
The difference in the unemployment rates between Peel and Halton is most pronounced among adults, but for youth, the numbers are high for both regions. For Halton youth, even though their parents may be doing slightly better, they have over the last few years experienced double-digit unemployment rates. But for Peel youth, they were harder hit by the recession than Halton youth.
Does this data prove living in Halton will help your chances at labour market success? No. It means people who have been successful in the labour market can choose to live in more affluent communities, and Halton is, on average, a more affluent region than Peel (for example, whether measuring by average household income or the value of their homes). Getting a well-paying job allows you to have more choices where to live.
For youth, it might be that being more affluent, Halton residents have better connections when it comes to linking their kids to work or providing resources for them that make it more likely for them to succeed in the labour market.
UNEMPLOYMENT AND EDUCATION
It is common knowledge that the more education you obtain, the better your chances in the labour market; but obtaining a degree inside or outside Canada makes a big difference as far as labour market outcomes go.
Table 2: Unemployment rate by level of educational attainment, Peel and Halton residents, 2011
|
No Certificate |
High school diploma |
Apprenticeship or trades certificate |
College |
Bachelor |
Master’s |
Doctorate |
|
Obtained inside Canada |
Obtained outside Canada |
Obtained inside Canada |
Obtained outside Canada |
Obtained inside Canada |
Obtained outside Canada |
Obtained inside Canada |
Obtained outside Canada |
Peel |
13.7% |
11.6% |
7.8% |
6.7% |
6.2% |
6.7% |
8.7% |
5.2% |
8.1% |
3.6% |
6.1% |
Halton |
10.8% |
9.7% |
5.2% |
4.7% |
4.0% |
4.7% |
5.2% |
3.1% |
5.1% |
2.3% |
3.9% |
This data is from the National Household Survey conducted in 2011 and there is no doubt that the unemployment rate today is lower for each of these categories. But the point of providing this data is to show the relationship between the level of unemployment and the level of education. This kind of detailed comparison, by unemployment rate, level of education and local geography, can only be done with the data of the National Household Survey.
Regardless of category, the unemployment rate is lower as the level of education goes higher. The unemployment rate for post-secondary education is higher when the degree is obtained outside of Canada, except in the case of college diplomas. And in each and every category, the unemployment rate is higher for Peel residents than for Halton residents.
Regardless of one’s level of educational attainment, there is always the risk of unemployment, but that risk is greater the less education one has. However, with more and more people staying in school longer or continuing their studies after they graduate, it means that quite a significant proportion of the unemployed actually have higher levels of education.
Table 3: Number of unemployed and percentage of unemployed by level of educational attainment, Peel and Halton residents, 2011
|
PEEL |
HALTON |
|
Number |
Percent |
Number |
Percent |
TOTAL |
63,370 |
100.0% |
17,770 |
100.0% |
No certificate, diploma or degree |
9,230 |
14.6% |
2,270 |
12.8% |
High school diploma or equivalent |
21,395 |
33.8% |
6,410 |
36.1% |
Apprenticeship or trades certificate or diploma |
3,540 |
5.6% |
790 |
4.4% |
College, or other non-university diploma |
9,875 |
15.6% |
3,145 |
17.7% |
University diploma below bachelor level |
3,470 |
5.5% |
800 |
4.5% |
Bachelor's degree |
9,945 |
15.7% |
2,990 |
16.8% |
University diploma above bachelor level |
2,280 |
3.6% |
530 |
3.0% |
Master's degree |
3,090 |
4.9% |
695 |
3.9% |
Earned doctorate |
215 |
0.3% |
70 |
0.4% |
Degree in medicine, dentistry, veterinary medicine or optometry |
320 |
0.5% |
75 |
0.4% |
Even though individuals with no certificate have a considerably higher rate of unemployment, there are fewer of them in the labour force. Thus, the proportion of unemployed individuals without a certificate is actually slightly less than the proportion of unemployed individuals with a bachelor’s degree.
Chart 2 illustrates the point visually. The percentage of unemployed individuals without any educational certificate (in blue) is slightly smaller than the percentage of unemployed individuals with a bachelor’s degree. The other observation to make is that the distribution of the unemployed by educational attainment has roughly the same profile in Peel and Halton regions. Indeed, if you add up all the unemployed with a post-secondary degree (that is, either college or university diploma or degree), it makes up almost half of all the unemployed (46% of all unemployed in Peel, 47% in Halton).
Chart 2: Percentage of unemployed by level of educational attainment, Peel and Halton residents, 2011
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WHY IT MATTERS
What this information means for job seekers and career choices:
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Education certainly matters in the labour market; the higher the level of education, the lower the risk of unemployment.
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However, education is not a guarantee against unemployment, and with many Canadians with post-secondary degrees, there is a considerable proportion of unemployed who have high levels of education; so don’t be discouraged if you have a good education but are having trouble finding work – you are hardly alone.
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When it comes to labour market success, it does make a difference if you earned your degree in Canada or overseas.
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Labour market success allows individuals and households to live in more affluent communities; this explains the different unemployment levels between Peel and Halton regions.
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