QUARTERLY MONITOR OF CANADA S ICT LABOUR MARKET
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1 RESEARCH QUARTERLY MONITOR OF CANADA S ICT LABOUR MARKET The Information and Communications Technology Council 2017 Q2 i
2 RESEARCH BY: THE INFORMATION AND COMMUNICATIONS TECHNOLOGY COUNCIL (ICTC) FUNDING PROVIDED BY: THE GOVERNMENT OF CANADA'S SECTORAL INITIATIVES PROGRAM 2017 The Information and Communications Technology Council All rights reserved. Published ii
3 ICTC s labour market research captures critical economic and labour market indicators to inform competitive business and human resource strategy planning, decision-making and career development in ICT, thereby driving the development of a more prosperous Canadian ICT workforce and industry in a global digital economy. This study was funded by the Government of Canada's Sectoral Initiatives Program. The authors made all reasonable efforts to ensure accuracy in compiling the document. The opinions and interpretations in this publication are those of the authors and do not necessarily reflect those of the Government of Canada. Technical comments regarding this publication can be directed to: Maryna Ivus, Senior Research Analyst m.ivus@ictc-ctic.ca iii
4 TABLE OF CONTENTS OUTPUT AND OUTLOOK... 1 GDP GROWTH... 1 LABOUR MARKET TRENDS... 2 EMPLOYMENT... 2 GENDER DIVERSITY... 3 YOUTH INCLUSION... 4 IMMIGRANT INTEGRATION... 5 IN DEMAND JOBS... 6 APPENDICIES... 7 DIGITAL ECONOMY LABOUR FORCE... 7 ICT SECTOR... 8 ABOUT ICTC... 9 iv
5 OUTPUT AND OUTLOOK GDP Growth Figure 1 ICT sector GDP (in billion dollars) Source: ICTC; Statistics Canada Analysis and Insights The gradual increase in ICT product and service consumption across all economic sectors is the driving force behind the consistent growth witnessed in the ICT sector, itself. In the second quarter (Q2) of 2017, the ICT sector continued to grow, contributing $75.3 billion to the overall Canadian GDP 1, 2. This accounted for approximately 4.3% of total Canadian GDP during this period During Q2 of 2017, the ICT sector contributed an additional $1.046 million to the Canadian economy. This represented a growth of 1.4% from Q1 of 2017, and 4.8% from Q2 of In an overall comparison, the ICT sector achieved a higher economic growth than the overall economy, the latter of which grew by 4.1% from Q2 of During Q2 of 2017, ICT services 3, representing 95% of total Canadian ICT sector GDP, grew by 1.2% or $861 million from Q1 of ICT manufacturing 4, contributing approximately 5% to the total Canadian ICT sector GDP, has increased by a total of 5.2% or $187 million from Q1 in In 2007 chained dollars. Chained dollars are real dollar amounts adjusted for inflation 2 The underlying concepts, methods, classification systems, and data sources of the Canadian System of Macroeconomic Accounts (CSMA) have been recently updated, and these modifications are reflected in the GDP levels compared to previous editions of this research series 3 This combines the North American Industry Classification System (NAICS) codes 4173, 5112, 517, 518, 5415, See Appendices 4 This combines the North American Industry Classification System (NAICS) codes 3341, 3342, 3343, 3344, See Appendices 1
6 LABOUR MARKET TRENDS Employment Figure 2 Employment in Canada s digital economy 1,600,000 1,400,000 Employment in ICT sector Canada's digital economy Overall economy unemployment rate 1,233,500 1,392,100 ICT employment in all sectors ICT unemployment rate 1,282,600 1,427,400 1,328,400 1,471,800 9% 8% 1,200,000 1,000, % 7.1% 7.0% 7% 6% Employment Level 800, , , % 654, , % 2.6% 5% 4% 3% 400,000 2% 200,000 1% 0 0% 2015 Q Q Q Q Q Q3 Unemployment rate 2016 Q Q Q2 Source: ICTC; Statistics Canada Analysis and Insights Driven by the rapidly expending ICT industry and increasing demand for ICT talent across all industries, employment in the Canadian digital economy experienced growth in Q2 of In Q2 of ,471,800 professionals were employed in the Canadian digital economy. This figure includes 523,200 ICT professionals working in the ICT industry, 805,200 ICT professionals working in non-ict industry, and 143,400 non-ict professional working in the ICT industry. 1,328,400 ICT professionals were employed across all sectors of the Canadian digital economy in Q2 of ,800 new ICT jobs were created across all sectors of the economy in Q2 of This represented a growth of 3.6% from Q1 in By contrast, employment in the overall economy grew by 2.7% in Q2 of ,500 new jobs were created in the Canadian ICT sector during Q2 of 2017, showcasing a growth of 1.9% from Q1 in This brings the total number of jobs in the ICT sector to 666,600 at the end of Q2 in The 2.6% unemployment rate in ICT sector witnessed during Q2 of 2017 is significantly lower than the 7% unemployment rate found in the overall economy during the same period. 2
7 Gender Diversity Figure 3 Women s employment and unemployment ICT employment in all sectors ICT unemployment rate Overall economy unemployment rate Quarterly Female Employment Level 400, , , , , , , , , , % 6.0% 5.8% 2.8% 2.8% 1.7% 8% 7% 6% 5% 4% 3% 2% 50,000 1% 0 0% 2015 Q Q Q Q Q Q Q Q Q2 Quarterly Female Unemployment Rate Source: ICTC; Statistics Canada Analysis and Insights The participation of women in ICT professions grew to 344,600 in Q2 of Overall, the participation of women in the ICT workforce has been gradually increasing over the last two years. Women represented 26% of the total number of ICT workers in Canada during Q2 of This represents a 1% increase from Q1 of ,100 new ICT jobs were created in Q2 of 2017, showcasing an 8% increase in the total number of women employed as ICT professionals from Q1 of ,800 women entered the ICT labour force during Q2 of 2017, representing an 8% increase from Q1 of YoY women participating in the ICT labour force increased by 37,600 or 12%. 55% of new ICT jobs created during Q2 of 2017 are occupied by women. The unemployment rate for women in ICT professions totaled 2.8% during Q2 of 2017, a figure less than half of the unemployment rate among women participating in the overall Canadian economy (5.8%). 3
8 Youth Inclusion Figure 4 Youth employment and unemployment ICT employment in all sectors ICT unemployment rate Overall economy unemployment rate 100,000 90,000 81,100 88,100 16% 14% Quarterly Youth Employment level 80,000 70,000 60,000 50,000 40,000 30, % 54, % 12.3% 13.2% 12% 10% 8% 6% 3.8% 3.9% 4% 20,000 10,000 2% 0 0% 2015 Q Q Q Q Q Q Q4 Quarterly Youth Unemployment Rate 2017 Q Q2 Source: ICTC; Statistics Canada Analysis and Insights ICT employment among youth (15-24 years old) grew by 7,000 or 8.6% from Q1 of 2017, totaling 88,100 during Q2 of Youth comprised 6.6% of the total number of ICT workers in Canada in Q2 of This represents an increase of 0.3% from Q1 of 2017, where youth totaled 6.3% of the Canadian ICT workforce. 15% of new ICT jobs created in Q2 of 2017 are occupied by youth. The unemployment rate for youth in ICT professions grew by 0.1% to 3.9% in Q2 of 2017, from 3.8% in Q1 of By comparison, the unemployment rate for youth in the overall Canadian economy during Q1 of 2017 was more than triple that of the ICT sector, totaling 12.3%. 4
9 Immigrant Integration Figure 5 Immigrant employment and unemployment Immigrant employment in ICT jobs ICT unemployment rate Overall economy unemployment rate 600,000 9% Quarterly Immigrant Employment Level 500, , , , , % 442, % 7.3% 479, % 6.8% 485, % 8% 7% 6% 5% 4% 3% 2% 1% 0 0% 2015 Q Q Q Q Q Q Q Q1 Quarterly Immigrant Unemployment Rate 2017 Q2 Source: ICTC; Statistics Canada Analysis and Insights 485,200 or 37% of all employed ICT professionals in Q2 of 2016 were immigrants 5. By contrast, immigrants represented 26.3% of the overall Canadian workforce across all sectors of the economy. The high saturation of immigrants in the ICT sector lends to the suggestion that a demand for ICT talent outstrips that of other sectors. In Q2 of 2017, the employment of immigrants in ICT professions increased by 6,100 or 1% from Q1 of 2017, and increased 10% from Q2 of Meanwhile, during Q2 of 2017, the employment of immigrants in the overall economy increased by 85,200 or 1.8% from Q1 of Quarterly and YoY growth in immigrant employment in ICT lends to the notion that demand for talent and skills is strong in the digital economy. As a result, immigrants are seeking and finding more opportunities in the ICT sector than in other sectors in the Canadian economy. The unemployment rate for immigrants in ICT professions increased by 0.4%, totaling 2.6% in Q2 of 2017, versus 2.2% in Q1 of By comparison, the unemployment rate for immigrants in the overall Canadian economy during Q2 of 2017 was more than double that of the ICT sector, totaling 6.8%. 5 Immigrants are defined as persons who were not born in Canada and who were not Canadian citizens by birth. 5
10 In-Demand jobs The demand for ICT talent and skills remains very high in Canada, and is expected to increase significantly over the next five years. For a detailed understanding medium-term supply and demand dynamics related to ICT talent and skills in Canada,, please refer to ICTC s 2021 Labour Market Outlook. In Q2 of 2017 employment growth was strongest in the following ICT professions: Health information management occupations 294% increase from Q1 in Supervisors, electronics manufacturing 47% increase from Q1 in Information systems testing technicians 31% increase from Q1 in Computer engineers (except software engineers and designers) - 26% increase from Q1 in Web designers and developers 18% increase from Q1 in To review live job postings by occupation, please click here. 6
11 APPENDICIES Digital Economy Labour Force ICTC s labour market research captures critical economic and labour market indicators, helping to inform competitive business planning, as well as strong human resource strategies and decision-making related to the ICT sector. Combined, this research forms the foundation for driving the development of a more prosperous Canadian ICT sector, and a highly-skilled workforce able to compete in the global digital economy. The sum total of workers (workers that are employed in these occupations, as well as workers that are currently unemployed, but actively seeking employment) in these occupations and all other (non-ict) occupations in the ICT sector (ICTC s framework of Canada s ICT sector is explained below) represent the total digital economy labour force in Canada. The table below summarizes the core ICT occupations: Index National Occupational Classification (NOC) Occupation Title Telecommunication carriers managers Engineering managers Computer and information systems managers Manufacturing managers Health information management occupations Electrical and electronics engineers Computer engineers (except software engineers and designers) Information systems analysts and consultants Database analysts and data administrators Software engineers and designers Computer programmers and interactive media developers Web designers and developers Electrical and electronics engineering technologists and technicians Electronic service technicians (household and business equipment) Industrial instrument technicians and mechanics Computer network technicians User support technicians Information systems testing technicians Film and video camera operators Graphic arts technicians Audio and video recording technicians Graphic designers and illustrators Technical sales specialists - wholesale trade Supervisors, electronics manufacturing Electronics assemblers, fabricators, inspectors and testers 7
12 ICT Sector The table below summarizes the ICT sector: Index North American Industry Classification System ICT Sub-sector (NAICS) Commercial & Service Industry Mach. Manuf Computer & Peripheral Equip. Manuf Communications Equip. Manuf Audio & Video Equip. Manuf Semiconductor & Other Electronic Component Manuf Navigational, Medical & Control Instruments Manuf Computer & Comm. Equip. & Supplies Wholesale distribution Software Publishers Wired Telecommunications Carrier Wireless Telecommunications Carrier (except satellite) Satellite Telecommunications Other Telecommunications Data Processing, Hosting, and Related Services Computer Systems Design & Related Serv Electronic & Precision Equip. Repair & Maintenance 8
13 ABOUT ICTC The Information and Communications Technology Council (ICTC) is a leading not-for-profit national centre of expertise conducting research, policy development, and creating talent solutions for the digital economy. Technical comments regarding this publication can be directed to: Maryna Ivus, Senior Research Analyst m.ivus@ictc-ctic.ca You can access Canada s first online talent and skills insights for the digital economy at You can receive ICTC publications by clicking here 9
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