A 10-year Outlook for the Canadian Labour Market (COPS 2009 Reference Projection) Part 1: Labour Demand: the Jobs of the Future January 5, 2010 Policy Research Directorate, Strategic Policy and Research Branch Macro-Economic Reference Scenario 2009 – Key Messages Years prior to the recession: − Solid performance of the Canadian economy, with resource boom bringing substantial gains in terms of trade and national income, leading to strong job creation in most sectors and a fall in the unemployment rate to 30-year lows − But challenges for the manufacturing sector: globalization, higher materials/energy costs, and substantial appreciation of the Canadian dollar Changes from Reference 2008: − In the short term, much weaker growth in GDP and employment, and slightly stronger growth thereafter − On average, growth relatively unchanged for the full 10 years Current versus previous two recessions: − Canada's current recession is typical: slightly faster fall, slightly shorter duration − Full recovery in GDP and employment to pre-recession levels by 2011 − Smaller increase and faster recovery to pre-recession low in the unemployment rate due to slower labour force growth Next decade versus previous decade: − Slower growth in GDP and employment, mostly due to demographics 2 The global financial crisis has led to the deepest world recession since the Great Depression, ... World Real GDP Growth percentage change 8 Oil supply shocks in 1973 and 1979 World high-tech boom and bust 6 Global financial crisis and deepest world recession since the Great Depression 4 1970-2014 Average 2 Asian financial and economic crisis 0 -2 US savings and loan crisis + Gulf War oil shock -4 China joined WTO Global responses from fiscal and monetary authorities 1970 1974 1978 1982 1986 1990 1994 1998 2002 2006 2010 2014 Source: International Monetary Fund (IMF), World Economic Outlook Database. 3 ... but the decline in Canadian real GDP in this recession has not been worse than in the previous two downturns Canadian Real GDP Growth percentage change 8 6 1970-2018 Average 4 2 0 -2 1991 recession 1981-82 recession 2009 recession -4 1970 1976 1982 1988 1994 2000 2006 Sources: 1970-2008: Statistics Canada, Economic Accounts. 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. 2012 2018 4 Slower population growth and population ageing will restrain the economy’s capacity to expand in the longer term Real Canadian GDP Actual 2008 Projection 2009 Projection $ Billions 2006 1,700 Slower population growth and population ageing 1,500 Globalization and higher demand from emerging economies leading to a favourable increase in our terms of trade 1,300 1,100 900 Average Annual Growth: 2009-2018: +2.4% 1999-2008: +3.0% Substantial responses from fiscal and monetary authorities Tightening in monetary policy to fight higher inflation Low fiscal policy leverage due to high budget deficits U.S. housing collapse and global financial crisis leading to worldwide recession 700 FTA (1989) and NAFTA (1994) 500 1976 1982 1988 1994 2000 2006 2012 Sources: Statistics Canada, Economic Accounts. 2009-2018: HRSDC, Policy Research Directorate, 2008 and 2009 Reference Scenarios. Note: Shaded bars represent recessions. 2018 5 Potential output growth of the Canadian economy will be limited by labour availability Decomposition of Potential Output Growth (Average annual contribution to potential output growth, by input; in per cent) 2003-07 2008-13 2014-18 Recession Recovery (2008-09) (2010-13) Labour 0.7 0.6 0.6 0.4 Capital 1.0 1.3 1.2 1.3 Total Factor Productivity 0.7 0.3 0.4 0.7 Potential Output 2.4 2.1 2.2 2.3 Actual Output 2.7 -0.7 3.6 2.3 Sources: Conference Board of Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 6 Employment will return to its baseline trajectory by 2013 but longer-term growth will be constrained by labour force Total Employment Actual 2008 Projection 2009 Projection millions 20 19 18 17 16 15 14 13 12 11 Average Annual Growth: 2009-2018: +0.8% 1999-2008: +2.0% Cumulative decline of 2.7% in 1991 and 1992; It took about 2 years before returning to pre-recession level Slower growth in labour force Decline of 3.1% in 1982; It took about 2 years before returning to pre-recession level Strong job creation and significant increases in PR and ER Expected decline of 2.0% in 2009 (actual decline of 1.6% in first ten months). Full recovery by 2011 10 9 1976 1982 1988 1994 2000 2006 2012 Sources: 1976-2008: Statistics Canada, Labour Force Survey. 2009-2018: HRSDC, Policy Research Directorate, 2008 and 2009 Reference Scenarios. 2018 7 The unemployment rate is expected to recover at a faster pace than in the previous two recessions due to slower labour force growth Unemployment Rate Actual 2008 Projection 2009 Projection percent 15 Smaller increase and faster recovery than previous recessions due to slower growth in labour force 12 9 6 It took from 8 to 10 years before returning to pre-recession level 3 0 1976 1982 1988 1994 2000 2006 Sources: 1976-2008: Statistics Canada, Labour Force Survey. 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. 2012 2018 8 ‘The Jobs of the Future’ by Industry – Key Messages Years prior to recession: Strong employment gains in primary and domestic-oriented* sectors, driven by resource-boom and gains in terms of trade and national income Declining trend in manufacturing employment brought by adjustments to higher dollar, higher energy costs and increased competition from low-cost countries Current versus previous two recessions: Hardest hit industries the ‘usual suspects’: manufacturing (particularly auto and wood), construction, forestry, and mining and fuels Services industries much less cyclically-sensitive Changes from Reference 2008: Slower employment growth in primary, manufacturing and domestic-oriented sectors in the short term Employment in most industries returning to Ref 2008 by mid next decade, except in manufacturing where projections were revised to a permanent lower trajectory For the whole 10-year period, much weaker employment growth in manufacturing and relatively no change in remaining two sectors Next decade versus previous decade: Slower employment growth in the domestic-oriented sector Modest improvement in the primary and manufacturing sectors * Note: The domestic-oriented sector is composed of construction, utilities, commercial and public services industries. 9 As in previous decades, job creation will be driven by the less cyclically-sensitive domestic-oriented sector Employment by Aggregated Sector Primary Manufacturing Domestic-oriented index 1989 = 100 160 140 Manufacturing and primary sectors are highly cyclical and more sensitive to global economic conditions Solid growth in domestic demand leading to job creation in construction, commercial services and health/education Adjustment to higher dollar and commodity prices and increased competition from low-cost countries 120 100 80 Most of the decline in agriculture and fishing Most of the rebound in mining and fuels 60 1976 1982 1988 1994 2000 2006 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 10 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. Despite slower growth in the next decade, mining and fuels will continue to support job creation in the primary sector Employment in Primary Industries Actual 2008 Projection 2009 Projection thousands 600 Agriculture and Fishing 500 Lower world prices, severe droughts, fishing quotas 400 300 Mining and Fuels Booming global demand for energy and base metals 200 100 Shift from conventional oil production to oil sands extraction Forestry US housing crisis and lower residential investment in Canada 0 1976 1982 1988 1994 2000 2006 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 11 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. Slight turnaround in manufacturing industries, resulting in virtually no employment growth over the coming decade Manufacturing Employment by Export Intensity millions Actual 2008 Projection 2009 Projection 1.3 Low Export-Oriented NAFTA and the depreciation of the dollar Higher dollar and commodity prices and increased competition from low-cost countries Gains in food, rubber, and chemical industries 1.1 0.9 Downsizing in automotive and wood products industries High Export-Oriented 0.7 1976 1982 1988 1994 2000 2006 Gains in computer, electronic and other transportation equipment industries 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. Note: see Annex for the definition of low and high export-oriented industries. 12 Job creation is expected to slow in construction, reflecting lower housing requirements due to demographic factors Employment in Construction (and Utilities) millions Actual 2008 Projection 2009 Projection 1.5 1.3 Employment in construction is highly cyclical Residential and non residential investment driven by lower interest rates, solid growth in household income, wealth and corporate profits Plunge in residential investment after the unprecedented boom of previous years 1.1 0.9 Lower housing requirement due to slower population growth and population ageing Growth will be mainly driven by non residential investment 0.7 0.5 1976 1982 1988 1994 2000 2006 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 13 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. Commercial services will remain the largest contributors to overall job creation in the longer term Employment in Commercial Services Reflecting slower GDP growth in services, party attributable to demographic factors millions 5 Household consumption largely driven by solid growth in disposable income and wealth gains 4 Consumer-Oriented 3 Business investment largely driven by healthy growth in corporate profits 2 Consumer-oriented services more cyclically sensitive as they tend to be more affected by changes in household income and job insecurity (retail trade and tourism) Actual 2008 Projection 2009 Projection Business-Oriented 1 1976 1982 1988 1994 2000 2006 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. Note: see Annex for the definition of consumer- and business-oriented services industries. 14 In public services, job creation will continue to be largely driven by the health care and social assistance industry Employment in Public Services Actual 2008 Projection 2009 Projection millions 2.50 Increased government spending in health care and educational services (population ageing and knowledge-based economy) 2.25 2.00 1.75 Employment in public services is much less sensitive to the business cycle Health 1.50 1.25 Education 1.00 0.75 Public Administration 0.50 0.25 1976 1982 1988 1994 2000 Closely linked to the fiscal positions and programs of governments 2006 2012 2018 Sources: 1976-2008: Statistics Canada, Labour Force Survey (based on NAICS, data prior to 1987 based on SIC). 2009-2018: HRSDC, Policy Research Directorate, 2009 Reference Scenario. 15 10-Year Employment Growth Outlook for 33 COPS Industries (AAGR 2009-2018, per cent) Computer System Design Services Professional Business Services Health Care and Social Assistance Oil and Gas Extraction Other Professional Services (scientific, technical) Other Transportation Equipment Mining (except oil and gas extraction) Accommodation and Food Services Information, Culture and Recreation Services Management, Administrative and Support Computer, Electronic and Electrical Products Wholesale Trade Retail Trade Other Commercial Services (household serv.) Educational Services Utilities Support Activities for Mining Oil and Gas Public Administration Rubber, Plastics and Chemicals Food and Beverage Products Finance, Insurance, Real Estate and Leasing Construction Agriculture Fishing, Hunting and Trapping Transportation and Warehousing Manufactured Mineral Products Metal Fabrication and Machinery Printing and Related Activities Forestry and Logging Other Manufacturing (textile, clothing furniture) Wood Products Paper Manufacturing Motor Vehicles, Trailers and Parts High-tech industries, mining and fuels, health care and professional services Mainly domestic-oriented industries (most commercial services + public services) and some high-tech manufacturing industries Most manufacturing and primary industries (excluding mining and fuels) + FIRE and construction Average = 0.8% -3 -2 -1 0 Source: HRSDC, Policy Research Directorate, 2009 Reference Scenario. 1 2 3 16 Historically, employment growth in high-skilled jobs has been stronger, especially during economic downturns High- and Low-Skilled Employment, Monthly, 1987-2009M9 Thousands 10,000 1990's Recession High-skilled 9,000 High-skilled: 67,500 (-0.9% ) jobs lost in 29 months 8,000 Low-skilled High-skilled: 193,300 (-1.8% ) jobs lost in 11 months 7,000 Low-skilled: 395,600 (-7.2% ) jobs lost in 29 months 6,000 Low-skilled: 163,400 (-2.5% ) jobs lost in 11 months 5,000 4,000 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 High-skilled group is composed of Management, Skill Levels A and B Low-skilled group is composed of Skill Levels C and D Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 17 In the current recession, high-skilled occupations have been more impacted than in previous downturns Index of Employment by Skill Level during the 1990s and Current Recessions 1.02 Low-Skilled Jobs 1.00 High-Skilled Jobs 1.02 1.00 163,400 (-2.5%) jobs lost in 11 months (Sept 2009) 0.98 0.96 395,600 (-7.2%) jobs lost in 29 months (Sept. 1992) 0.94 0.98 0.96 193,300 (-1.8%) jobs lost in 11 months (Sept. 2009) 67,500 (-0.9%) jobs lost in 29 months (Sept. 1992) 0.94 Base: October, 2008 Base: April, 1990 0.92 Months 0.90 -4 -2base 2 4 6 8 10 12 14 16 18 20 22 24 26 28 Base: October, 2008 0.92 Base: April, 1990 Months 0.90 -4 -2base2 4 6 8 10 12 14 16 18 20 22 24 26 28 High-skilled group is composed of Management and Skill Levels A and B Low-skilled group is composed of Skill Levels C and D Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 18 The impact of the recession on low-skilled jobs will be felt longer High- and Low-Skilled Employment, 2005-2018 Thousands High-Skilled Low-Skilled Thousands 11,000 8,000 10,500 7,500 10,000 7,000 5 yrs 6,500 9,500 9,000 3 yrs 8,500 6,000 Actual 2008 Projection 2009 Projection Actual 2008 Projection 2009 Projection 5,500 3 yrs 5,000 8,000 2005 2007 2009 2011 2013 2015 2017 2005 2007 2009 2011 2013 2015 2017 High-skilled group is composed of Management, Skill Levels A and B Low-skilled group is composed of Skill Levels C and D Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 19 Over the next ten years, 3 in 4 new jobs are expected to be in management or in occupations usually requiring postsecondary education High- and Low-Skilled Employment (Non-student), 2005-2018 Thousands Annual Change, Thousands 1,000 18,000 800 Annual change, 17,000 left-hand side scale 600 Employment right-hand side scale 400 16,000 15,000 200 14,000 0 13,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 -200 -400 -600 12,000 Annual Change, Low-Skilled Annual Change, High-Skilled Employment (Right-Hand Scale) 11,000 10,000 High-skilled group is composed of Management, Skill Levels A and B Low-skilled group is composed of Skill Levels C and D Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 20 High-skilled occupations represented 61.9% of total employment in 2008 Employment Composition by Skill Level (Non-student), 2008 2008 9.8% 9.7% 18.0% 28.4% 34.2% High-Skilled Jobs 61.9% Low-Skilled Jobs 38.1% Management college or apprenticeship on-the-job training university education secondary school Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 21 The proportion of high-skilled occupations is expected to change minimally over the next 10 years Employment Composition by Skill Level (Non-student), 2018 73.6% of expansion demand will be in high-skilled occupations (2009-2018) 2018 9.5% 9.8% 19.1% 27.7% 33.9% High-Skilled Jobs 62.8% Low-Skilled Jobs 37.2% Management college or apprenticeship on-the-job training university education secondary school Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 22 NOC Matrix, Coloured by Projected Growth Rate, 2009-18 1 2 3 BUS, FIN & ADMIN NATUR & APPLIED SCIENCE SOCIAL, EDU, HEALTH GOV’T SERV & RELIGION MANAG. LEVEL A university LEVEL B college or apprentic LEVEL C second occspecific training LEVEL D On-thejob training 4 5 ART, CULTU, RECR & SPORT 6 7 SALES & SERV TRADES, TRANSP AND EQUI 8 PRIMARY INDU 9 PROCESS MANU & UTIL Management N010 11 - Prof in Business & Finance 21 - Prof in Natural / Applied Sciences 31 - Prof in Health 41 - Prof in Social Sci / Edu / Gov't Serv/Religion 51 - Prof in Art & Culture 12 - Skilled Admin & Business 22 - Techl Occ's Related to Natural / Applied Sciences 32 - Tech / Skilled Occs in Health 42 - Paraprof Occ's in Law / Social Services / Education / Religion 52 - Tech / Skilled Occ's in Art / Culture / Recr/Spo 14 Clerical Occs 34 Assisting Occ's in Support of Health Services green: Above average = AAGR > 1.25% yellow: Average = 1.25% > AAGR > 0.3% red: below average = AAGR < 0.3% 62 - Skilled Sales & Service Occs 72-73 Trades & Skilled Transp & Equip Operators 82 Skilled Occ's in Primary Industry 92 - Process / Manu / Utilities Supervisors & Skilled Operators 64 Intermedia te Sales & Service Occ’s 74– Interm. Occ's in Transp / Equip Operation / Install / Maint. 84 Intermed Occ's in Primary Industry 94-95 Process & Manu Machine Operators & Assemble 66 Elemental Sales & Service Occ’s 76 - Trade Helpers, Construc. Labourers & Related 86 Primary Industry Labour 96 Labourer in Process, Manu & Utilities 23 Replacement demand is primarily composed of retirements Sources of Replacement Demand 500,000 Deaths Emigration Retirements Projection 400,000 300,000 200,000 100,000 0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 24 The effect of the recent financial market shock on retirements will be transitory Retirements and the Impact of the 2008 Financial Shock Thousands 400 350 Actual 2008 Projection 2009 Projection Projection 300 250 200 150 100 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009 2012 2015 2018 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 25 The increased importance of retirements will persist in the long run Retirements and the Share of the Population Aged 50 and Over Thousands 500 Retirements 400 Share of Population 50+ Medium-term scenario Long-term scenario Per cent 55 50 300 45 200 40 100 35 0 30 1987 1991 1995 1999 2003 2007 2011 2015 2019 2023 2027 2031 2035 2039 2043 2047 2051 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 26 Retirement rates are less dispersed across skill groups than expansion demand… Retirement Rate, Mean Employment Age and Median Retirement Age by Skill Level, 2009-2018 2.5% 2.0% 1.5% 1.0% 2.3% 2.0% Management University 1.9% 1.9% 1.6% 0.5% 0.0% Community High School College On-the-job Training Mean Emp. Age 45 42 39 41 35 Med. Ret. Age 62 61 61 61 63 Age Gap 17 19 22 20 28 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 27 …leading to job openings arising from retirements even in low-skilled occupations Retirements by Skill Level , 2009-2018 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Management Ret. Rate Retirements Skill Level A Skill Level B Skill Level C Skill Level D 2.3% 2.0% 1.9% 1.9% 1.6% 371,200 623,500 1,073,600 887,200 259,500 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 28 Following the current recession, both expansion and replacement demand are expected to continue rising Job Openings from Expansion Demand and Replacement Demand Net impact of -17,000 jobs 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 0 -100,000 -200,000 Expansion Demand -300,000 Replacement Demand Projection -400,000 1996 1998 2000 2002 2004 2006 2008 2010 2012 Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 2014 2016 2018 29 The increase of retirements will limit the labour force available to "grow the economy" Labour Force Inflows and Outflows, 1999-2008 and 2009-2018 thousands 6,000 5,000 Immigrants 4,000 3,000 2009-2018 1999-2008 Other Labour force available to grow the economy Labour force available to grow the economy Immigrants Deaths Emigrants School Leavers School Leavers Deaths 2,000 Retirements Retirements 1,000 Other 0 In Out In Out -1,000 Labour Force Average Annual Growth: 1.7% (259,000 people a year) Labour Force Average Annual Growth: 0.8% (141,000 people a year) Sources: Statistics Canada and HRSDC, Policy Research Directorate, 2009 Reference Scenario. 30 Two-thirds of all job openings will be in occupations usually requiring PSE or in management occupations Job Openings from Expansion Demand and Replacement Demand by Skill Level, 2009-2018 Thousands Expansion Demand 2,000 32.9% 1,800 Replacement (Retirements) Replacement (Deaths and Emigration) 1,600 1,400 22.7% 1,200 1,000 800 11.2% 25.6% 600 7.7% 400 200 0 Management University College Source: HRSDC, Policy Research Directorate, 2009 Reference Scenario. High School On-the-job Training 31 Almost all occupations with highest labour demand will be in management or health sector Non-student Employment 2008 (000s) Job Openings 2009-2018 (000s) Job Openings as % of 2008 Employment (AR*) 15,765.7 5,269.3 3.3% Legislators & Senior Management (N001) 75.8 51.1 6.7% Health / Education / Social & Community Services Mgr's (N031) 95.4 59.2 6.2% Nurse Supervisors & Registered Nurses (N315) 268.9 161.7 6.0% Physicians / Dentists / Veterinarians (N311) 111.8 62.7 5.6% Human Resources & Business Service Professionals (N112) 161.0 89.3 5.5% Managers in Public Administration (N041) 28.9 15.9 5.5% Psychologists / Social Workers / Clergy (N415) 134.2 67.6 5.0% Other Tech. Occupations in Health (Except Dental) (N323) 118.3 59.0 5.0% University Professors & Assistants (N412) 92.8 45.7 4.9% Assisting Occupations in Health Services (N341) 283.3 138.1 4.9% Pharmacists, Dietitians & Nutritionists (N313) 29.8 13.4 4.5% Therapy & Assessment Professionals (N314) 47.5 21.1 4.4% Engineering / Science / Information Systems Mgr's (N021) 80.4 34.4 4.3% College & Other Vocational Instructors (N413) 91.4 39.0 4.3% Life Science Professionals (N212) 24.2 10.2 4.2% 15 Occupations with Higher Proportion of Job Openings All Occupations *AR: The annual job openings rate corresponds to the ratio of the average level of job openings over the projection period to the employment level in the base year (2008) Sources: Labour Force Survey, Statistics Canada; HRSDC, Policy Research Directorate, 2009 Reference Scenario. 32 Occupations with lowest labour demand will be concentrated in manufacturing and construction Non-student Employment 2008 (000s) Job Openings 2009-2018 (000s) Job Openings as % of 2008 Employment (AR*) 15,765.7 5,269.3 3.3% Trades Helpers & Labourers (N761) 115.5 12.0 1.0 Machine Operators: Fabric / Fur / Leather (N945) 34.3 3.7 1.1 Other Transport Equipment Operators (N743) 17.9 2.0 1.1 Machine Operators: Pulp & Paper Prod (N943) 44.7 5.1 1.1 Agriculture & Horticulture Workers (N843) 72.6 9.0 1.2 Logging & Forestry Workers (N842) 11.0 1.8 1.6 Carpenters & Cabinetmakers (N727) 166.4 29.6 1.8 Masonry & Plastering Trades (N728) 72.6 13.6 1.9 Machining / Metalworking / Woodworking Operators (N951) 99.3 18.6 1.9 Machinists & Related Occupations (N723) 61.8 11.8 1.9 Metal Forming / Shaping / Erecting Occupations (N726) 146.0 28.7 2.0 Other Construction Trades (N729) 94.6 18.7 2.0 Mine Service Workers & Operators in Oil (N841) 17.5 3.5 2.0 Logging Machinery Operators (N824) 10.1 2.1 2.0 Office Equipment Operators (N142) 62.0 12.6 2.0 15 Occupations with Lowest Proportion of Job Openings All Occupations *AR: The annual job openings rate corresponds to the ratio of the average level of job openings over the projection period to the employment level in the base year (2008) Sources: Labour Force Survey, Statistics Canada; HRSDC, Policy Research Directorate, 2009 Reference Scenario. 33 Occupational Labour Demand – Key Messages Replacement demand is expected to become the primary source of new job openings. The need to replace existing workers will eat up 3/4 of new labour supply, constraining growth. Recession impacts more low- than high-skilled jobs. However, this time high-skilled occupations were more affected than in the past, while low-skilled occupations were less impacted. The recent recession will have short-term impacts, but over the medium-term labour constraints to growth are expected to return. Two-thirds of job openings are expected to occur in high-skilled occupations, i.e. in occupations usually requiring PSE or in management occupations. The occupations with the highest proportion of job openings are found in management and in the health sector. 34 ANNEX – Definition of Industry Groupings Manufacturing: Low-exported oriented: Food and beverage products; Printing and related activities; Rubber, plastic and chemicals; Manufactured mineral products; Other manufacturing (textile, clothing, furniture) High-exported oriented: Wood products; Paper; Metal fabrication and machinery; Computer, electronic and electrical products; Motor vehicles, trailers and parts; Other transportation equipment (aerospace, railroad, boats) Commercial services: Consumer-oriented: Retail trade; Wholesale trade; Transportation and warehousing; Accommodation and food services Business-oriented: Finance, insurance, real estate and leasing; Professional business services; Computer system design; Other professional services (scientific and technical); Management, administrative and other support services; Information, culture and recreation; Other commercial services (repair, maintenance, personal and household services) 35