TOP REPORT TORONTO S OPPORTUNITIES AND PRIORITIES LOCAL LABOUR MARKET UPDATE

Transcription

1 TOP REPORT LOCAL LABOUR MARKET UPDATE TORONTO S OPPORTUNITIES AND PRIORITIES 2012

2 TABLE OF CONTENTS About The Toronto Workforce Innovation Group Methodology A. Greater Toronto Region: Commonalities and Differences Toronto s Economy Labour Force Characteristics Population Migration Labour Force Activity Toronto s Working Poor Educational Attainment Key Employment Sectors in B. SECTOR PROFILES Professional, Scientific and Technical Services Sector Food Manufacturing Sector Non Profit Sector Tourism and Hospitality Sector C. Strategic Workforce Development Priorities Economic Transformation Diversity Advancing Technology Green Economy D. Appendices

3 About The Toronto Workforce Innovation Group The Toronto Workforce Innovation Group conducts research, disseminates information and convenes stakeholders to address workforce development trends, gaps and opportunities. Among other similar organizations in Toronto, our multi-stakeholder approach is unique, we work on issues across many sectors and engage stakeholders from a variety of perspectives. Our research is an ongoing and continuous process, demonstrated by the publications we produce, including our monthly electronic bulletin, the On Topic, An Economy Out of Shape: Changing the Hourglass and Sifting Through the Sands: Unpacking the Hourglass. Incorporated in 1988 as the Toronto Training Board, the organization changed the name in 2009 to better reflect the innovative research and consultations that comprise our work. We are governed by a volunteer Board of directors from Toronto s key industrial/ employment sectors. Toronto Workforce Innovation Group is one of the 25 Workforce Planning Boards across Ontario. This report was prepared by the staff of the Toronto Workforce Innovation Group: Luba Berezina, Enriketa Dushi, Allison Hillier and Karen Lior. Tom Zizys contributed to the information regarding Central Ontario. We thank our sponsor, the Ministry of Training, Colleges and Universities for their generous support and our community for their participation in this research. Methodology A combination of methodologies inform this report including, ongoing data analysis, both on significant employment sectors and on emerging and critical issues. We collect and analyze information in a variety of ways including direct feedback at consultations and events, and through a range of digital tools that help us gather relevant information. We collect information from a wide range of stakeholders including municipal, provincial and federal bodies, academic institutions, sector councils, industry groups and associations, community agencies, employers, the media and key influencers. In addition to the statistics available through Workforce Planning Ontario, our labour market information comes from a multiplicity of sources such as reports and publications, the Toronto Immigrant Employment Data Initiative (TIEDI), the Toronto Regional Immigrant Employment Council (TRIEC), and Social Planning Toronto. The in-person consultations that we conduct throughout the year are an important source of information, as are the numerous events and conferences we either organize or attend. The Action Plans of the Toronto Workforce Innovation Group are informed by the labour market challenges described in Section C of this report, which come from our extensive consultations and community collaboration, in combination with the data analysis we do on a continuous basis. 2 Toronto s Opportunities and Priorities Local Labour Market Update 2012

4 A. Greater Toronto Region: Commonalities and Differences This local labour market update for includes an overview of the Greater Toronto Area or Toronto Region. The overview examines some of the labour market commonalities and differences experienced in four workforce planning board areas, which are: Peel Halton Workforce Development Group Toronto Workforce Innovation Group Workforce Planning Board of York Region and Bradford West Gwillimbury Durham Region Local Training Board The four boards have collaborated on research to identify the shared labour market trends and highlight some of the differences. The analysis will help us refine our work and target the important sectors that cross boundaries. There are many similarities in the labour market dynamics in the Greater Toronto Region. The region is Canada s largest economy. Between 43-46% of Ontario s population live in the GTA. It generates almost a fifth of national GDP, and 45% of Ontario s GDP and is home to 40% of the nation s business headquarters. The Greater Toronto Region has a high concentration of university degree holders. Almost 60% of adult university degree holders (aged 25 to 64 years old) in Ontario live in the Toronto Region. This may be due to the number of universities located in the GTA. Until 2011, the region was a primary settlement destination for immigrants to Ontario and to Canada, attracting 79.4% of recent arrivals. Between 2005/06 and 2009/10, there was a marked increase of net migration among year olds into Toronto, and a drop in the numbers going to other areas, recovering somewhat only in the last year. Halton experienced a drop in and its numbers have been inching up slowly ever since. Longer term employment rates varied by age and by gender. Young males have seen their employment rates drop much more than young females, particularly during the recent recession. The unemployment rate for young males in 2009 and 2010 reached 20% and higher, while for young females during the same period hovered around the 14-15% range. Male adults have seen a slow decline in their employment rates, with a noticeable drop in 2009, with some recovery in Female adults have experienced a steady, slow increase in their employment rates, with a slight dip in Employment trends by industry show that the Greater Toronto Region has been increasing its share of total provincial employment among a number of key industries, with the exception of Manufacturing. Between 1996 and 2010, the Toronto Region s share of provincial employment for the following industries changed as follows: Manufacturing: down from 44% to 42% Trade: up from 41% to 45% Finance, insurance, real estate and leasing: up from 54% to 61% Professional, scientific and technical services: up from 56% to 60% Labour force data for 2011 for the Toronto Region exhibited the following trends: Between December 2010 and April 2011, the overall labour force and the number employed slipped. From May through September, the number of employed increased then held steady, while the labour force shrank, resulting in lower unemployment numbers and a lower unemployment rate. Employment after June did not change, but individuals discouraged from finding work stopped looking. Between September and November, a slight decrease in the number employed and an increase in the labour force brought the unemployment rate up again. Toronto s Opportunities and Priorities Local Labour Market Update

5 In comparing the Toronto Region and the rest of Ontario, minus the Toronto numbers, the trends between December 2008 and June 2011 regarding the number of business establishments (employers) are as follows: The number of small firms (1-19 employees) increased between December 2008 and December 2010 then fell off in June 2011; The number of medium-sized firms (20-99 employees) stayed steady between December 2008 and December 2010, then dropped off in June 2011; The number of larger firms (100 and more employees) dropped slowly between December 2008 and December 2010, then decreased at a greater pace in June 2011, especially in the Toronto Region; In short, for each size category of firms, the trend between December 2010 and June 2011 was negative; The Toronto Region saw a steeper decline among medium and larger firms between December 2010 and June 2011 than what was experienced in the rest of Ontario. Losses among employers were particularly pronounced among Manufacturing, Wholesale Trade and Management of Companies and Enterprises. Other sectors had variable increases, usually among smaller and medium-sized firms, but many had some losses among larger (100+ employee) companies. Toronto s Economy Toronto offers a high quality of life to the 2.7 million residents who live and work here. Toronto, with 83,000 businesses, is a major economic engine of the country. The City is the home to more national and internationally ranked companies than any other city in Canada and offers a high quality of life to its residents. 1 The major employment clusters are finance and financial services, retail trade, arts and culture, tourism and hospitality. Manufacturing and construction account for a significant percentage of the economy. In addition, the non-profit and public administration areas employed 117,630 Torontonians in TORONTO IN WORLD RANKINGS The March 2011 Global Financial Centres Index (GFCI 9), ranked Toronto up from 12th to 10th place and considered it the clear leader in Canada as the 2nd Greenest Canadian City in Leading the Fight against Climate Change. Aon Consulting s People Risk Index found that Toronto has the lowest risk in the world for employers to recruit, employ and relocate employees. 2 Labour Force Characteristics 1. POPULATION According to Census 2011 the population of Toronto is 2,615,060, or 7.8% of Canada s total population of 33,476,688. Between 2006 and 2011, Toronto s population grew by 111,779 residents, an increase of 4.5%. The 2011 population of the Greater Toronto Area (GTA) is 18.1% of Canada s population. The City of Toronto accounts for 43.2% of the GTA s population, down slightly from 45.1% of the GTA in By 2031 approximately 20.5% of the population will be 65 years or older and the proportion of youth in Toronto s population will be only half that of seniors. 4 The population aged is projected to account for 62.7 % of population in the GTA by Toronto s Opportunities and Priorities Local Labour Market Update 2012

6 2. MIGRATION The City of Toronto continues to be a net importer of labour. At the same time, the surrounding areas are experiencing growth in manufacturing and other types of employment and are being transformed into employment rather than residential destinations. Chart 1 provides the average net migration data for Toronto and compares it to other areas like Halton, Peel, York and Durham for the period to , breaking the numbers down by age category. Overall, the incidence of greatest in-migration for the Toronto Region is among year olds, those of prime working age. Toronto exhibits a unique pattern: a very high influx of year olds (no doubt attending the many post-secondary institutions in the city) and a net out-migration among the other three age categories (0-17 year olds, year olds and 65 years and older). CHART 1: Average net migration figures for the Toronto Region, to years and older years old years old years old Halton Peel Toronto York Durham 0-17 years old -5, ,000 10,000 15,000 Source: Statistics Canada, Annual Migration Estimates by Census Division CHART 2: Net migration figures for the Toronto Region, year olds, to ,000 14,000 12,000 10,000 8,000 6,000 4,000 2, /6 2006/7 2007/8 2008/9 2009/10 Toronto York Peel Halton Durham Source: Statistics Canada, Annual Migration Estimates by Census Division Toronto s Opportunities and Priorities Local Labour Market Update

7 International immigrants are the largest source of migration to Toronto, while intercity migrants comprise the next largest group. The level of international migration to Toronto in 2012 is predicted at about 85,000, growing to over 110,000 by Chart 3 shows the various sources and levels of migration. 6 CHART 3: Sources of Migration Intercity Interprovincial International 120, ,000 80,000 60,000 40,000 20, ,000-40, F 14F 15F 16F f = forecast Sources: Statistics Canada; The Conference Board of Canada 3. LABOUR FORCE ACTIVITY Toronto s labour force totalled over 1.3 million in December 2011, representing a decrease of 1.4% compared to the same period in City of Toronto December December Change Y-Y (%) Labour Force (000 s) 1, , Employment (000 s) 1, , Unemployment (000 s) Not in Labour Force (000 s) Participation Rate (%) Unemployment Rate (%) Source: City of Toronto In 2011, City of Toronto residents continued to experience a higher unemployment rate and a lower participation rate than Toronto CMA and Ontario residents. 6 Toronto s Opportunities and Priorities Local Labour Market Update 2012

8 12% 11% 10% 9% 8% 7% 6% CHART 4: Unemployment rate City of Toronto 905 Municipalities Ontario Canada 5% Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Source: Statistics Canada, Labour Force Survey 72% 71% 70% 69% 68% 67% 66% CHART 5: Participation rate City of Toronto 905 Municipalities Ontario Canada 65% 64% Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Source: Statistics Canada, Labour Force Survey Toronto s Opportunities and Priorities Local Labour Market Update

9 A. LABOUR FORCE ACTIVITY BY AGE The economic fluctuations experienced in the last four years have had a fundamental impact on the labour market. Multiple generations are working side by side and mature workers are not retiring in the numbers predicted. CHART 6: Employed Labour Force Age Structure 2010, Toronto CMA residents 15% 25% 3% 4% 8% 23% 22% Source: Labour Force Survey 2010 Youth in Toronto, aged 15-24, currently have an unemployment rate that is almost three times higher than adults, with a participation rate of only 58% a rate that is almost 10% less than that of adults. 7 Even when young people enter the labour market, the jobs that are available are often contract or temporary jobs, a situation that persists as people move into their 30 s and beyond. This generation is confronting a large student loan debt and is working in positions not reflective of their education. Increasingly unable to attain meaningful employment, young people turn to higher and higher levels of education. B. LABOUR FORCE ACTIVITY BY GENDER In 2010 more males than females were employed and part time employment is more evident among women than men according to the Labour Force Survey. Employment amongst women has increased by 10.3% and for men by 4%, whereas part time employment increased by about 14% since CHART 7: Employment Full Time & Part time by gender, Toronto CMA 2010 Total Females 1,400,520 Part-time 323,570 Full-time 1,076,960 Total Males 1,518,880 Part-time 181,970 Full-time 1,336,910 Source: Labour Force Survey Toronto s Opportunities and Priorities Local Labour Market Update 2012

10 C. LABOUR FORCE ACTIVITY OF RECENT IMMIGRANTS In December 2011, the participation rate of year old immigrants living in the Toronto CMA was 83.2%. Since 2006, the participation rate among immigrants has ranged between 80% and 86%. Immigrant unemployment rates have been consistently higher than Canadian-born since 2006, but the economic downturn starting in late 2008 appears to have widened that gap from 2% in December 2006, to 3.4% in December CHART 8: Unemployment rate of years old by immigrant status, Toronto CMA , 3MMA Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11 Canadian-born All Immigrants Source: TIEDI Labour Force Update, December 2011 Between December immigrants gained 63,800 jobs both in the service-producing sector (44,900 jobs) and in the goods-producing sector (18,900 jobs). Notable job gains were in accommodation and food services (12,400 jobs), construction (12,200 jobs) and in professional, scientific and technical services (12,000 jobs). Job losses for immigrants were recorded in trade (15,800 jobs), information, culture and recreation (3,200 jobs) and agriculture (2,200 jobs). Toronto s Opportunities and Priorities Local Labour Market Update

11 4. TORONTO S WORKING POOR The number of Toronto s working poor has increased significantly. According to a recent report by the Metcalfe Foundation, the incidence of this category of workers was growing before the financial crisis of 2008 began and the manufacturing sector started to decline. The chart below illustrates the areas in Toronto where the numbers of working poor are the highest. CHART 9: Percentage of working-poor individuals among the working-age population, city of Toronto, 2005 Source: Census of Canada, Special Tabulations. Mapping Cities Centre, University of Toronto Those classified as working poor: work a comparable number of weeks per year to the rest of the working-age population; hold jobs mainly in sales and service occupations (close to one-third compared to one-fifth of the overall working population); are more likely to live without an adult partner than the rest of the working-age population; are only slightly less educated than the rest of the working-age population, 52% have some higher education, versus 57% of the working-age population; and are younger than the working-age population as a whole, 63% of working-poor individuals are between the ages of 18 and 44 as compared to 50% of the working-age population Toronto s Opportunities and Priorities Local Labour Market Update 2012

12 5. EDUCATIONAL ATTAINMENT The number of those who are highly educated in Toronto has increased significantly in the past decade. According to Labour Force Survey (LFS) there were 569,140 people with a university degree in 2010 as compared to in The chart below compares the percentage of Toronto s labour force with university degrees to that of Toronto CMA, Ontario and Canada from 1990 to CHART 10: Percentage of Labour Force with University Degree 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% City of Toronto Toronto CMA Ontario Canada Source: Statistics Canada, Labour Force Survey Toronto s Opportunities and Priorities Local Labour Market Update

13 6. KEY EMPLOYMENT SECTORS IN Toronto s largest industry grouping is Professional, Scientific and Technical Services, formerly known as Business Services, although 85% of residents work in service-producing industries. The sector employs over 12 % of the population. Financial Services, Retail Trade, Manufacturing, Health Care, and Education are also large employers of Toronto residents. One significant trend is that employment in the Manufacturing industry in Toronto has been declining at an average annual rate of 4.7% since The biomedical and biotechnology cluster, part of the health sector, is the fourth largest in North America. The construction sector, especially the residential one, has remained strong, positively impacting the finance, insurance and real estate sectors. 9 According to a report by the City of Toronto, there is a significant concentration of firms that are directly or indirectly related to green activities. The green sector is divided into six main categories, crossing a number of sectors, all of which contribute to greening Toronto. These include: Professional Support Services Not for profit Corporate Energy Associations Finance and Venture Capital Technology Companies In last year s update four sectors were highlighted: arts and culture, construction, information and communications technology and retail trade. For this year, the sectors profiled are: food manufacturing, professional, scientific and technical services, non-profit, tourism and hospitality. The following chart depicts industries with the highest concentration of employment in Toronto that experienced growth from 2002 to CHART 11: City of Toronto Jobs 3.00 Canadian Location Quotient Information & Cultural Industries Computer Systems Design Transportation & Warehousing Other Prof, Sci & Tech Service Admin Support & Waste Mgmt Financial Services, Real Estate & Insurance Agents Arts & Entertainment Education Other Services Manufacturing 0.50 Wholesale Trade Public Admin & Defence Health Retail Trade Construction Primary & Utilities Accomodation & Food % -3.50% -1.50% 0.50% 2.50% 4.50% 6.50% 8.50% Annual Compound Growth ( ) Source: Economic Research, Economic Development and Culture Division, City of Toronto 12 Toronto s Opportunities and Priorities Local Labour Market Update 2012

14 B. SECTOR PROFILES PROFESSIONAL, SCIENTIFIC AND TECHNICAL SERVICES SECTOR The Professional, Scientific and Technical Services sector is made up of a range of professional services provided to businesses and individuals, such as legal, accounting or engineering consulting. A very significant industry across the Toronto Region, the largest number of jobs is in Computer Systems Design and Related Services subsector. Each area within the Toronto Region has different subsector clusters. The City of Toronto has a high concentration of jobs in Legal Services and Advertising, Public Relations and Related Services. Compared to the rest of Ontario, the Toronto Region has a greater proportion of very small firms ( 0 and 1-4 employees) and large firms ( employees), and almost a monopoly of firms with more than 500 employees. This industry is one of the key elements of the Knowledge Economy. Description of sector This sector represents businesses that sell expertise, typically reflecting expert knowledge or a professional designation, including: Legal Services; Accounting, Bookkeeping and Tax Preparation Services Architectural, Engineering and Related Services Specialized Design Services (interior design; graphic design) Computer Systems Design and Related Services Management, Scientific and Technical Consulting Services Scientific Research and Development Advertising, Public Relations and Related Services Other Services (photography services; veterinary services; marketing research) Number of businesses and employment The Professional, Scientific and Technical Services sector typically accounts for a large share of all employers in any community. This is because, in part, this industry is made up of so many owneroperated and small firms, mainly professionals or consultants working on their own Profile of Professional, scientific and technical services sector in the Toronto Region The Toronto Region has a high concentration of Professional, Scientific and Technical Services employment compared to the rest of the province. While the Toronto Region accounts for 48% of all Ontario s jobs 10 it represented 62% of the province s jobs in this industry. 11 Concentration of subsectors Using a Location Quotient analysis, the Toronto Region has a LQ of 1.29 for the Professional, Scientific and Technical Services industry, which means that the proportion of this industry compared to all employment is 29% higher in this region than across the province as whole. That concentration is especially pronounced in Toronto and York. Toronto has extremely high concentrations of employment in the Legal Services and Advertising sectors, as well as high concentrations in Specialized Design, Consulting Services, Accounting and Computer Systems. In Scientific Research and Development Services, Toronto comes in below the provincial average. Toronto s Opportunities and Priorities Local Labour Market Update

15 CHART 12: Location Quotients for the Professional, Scientific and Technical Services sector industries, Toronto Region Legal Accounting Architectural Specialized design Computer systems Consulting services Durham Peel-Halton Toronto York Scientific R&D Advertising Other Source: Statistics Canada, Census 2006 The concentration of Advertising and Legal Services in Toronto is far greater than similar services in the rest of the region. In certain sub-industries, however, the other areas surpass Toronto in terms of their Location Quotient score, such as York for Computer Systems Design and Related Services, Peel-Halton for Scientific Research and Development Services, and Peel-Halton and York for Architectural, Engineering and Related Services. 14 Toronto s Opportunities and Priorities Local Labour Market Update 2012

16 Labour Force The Computer Systems and Legal Services subsectors are the largest job clusters in the City of Toronto, equaling approximately 30,000 jobs each. Several other subsectors, in Toronto and other areas, have over 10,000 jobs (shaded boxes in the table). TABLE 2: Number of jobs by Professional, Scientific and Technical Services subsector, Toronto Region, 2006 Durham Peel-Halton Toronto York Legal Accounting Architecture Specialized design Computer systems Consulting services Scientific R&D Advertising Other Source: Statistics Canada, Canadian Business Patterns TABLE 3: Percentage of all Ontario Professional, Scientific and Technical Services firms by employee size located in the Toronto Region, June 2011 ALL % 64.3% 61.7% 54.5% 53.5% 59.4% 65.2% 66.1% 65.5% 87.5% Source: Statistics Canada, Canadian Business Patterns Toronto s Opportunities and Priorities Local Labour Market Update

17 Changes in number of employers The following charts track the changes in the number of employers by firms of different employee sizes, using the Canadian Business Pattern data, which surveys all employers every six months. In order to allow for a comparison to be made across each of the charts, all the data was expressed in terms of the start point, December 2008, which was given a value of If the number increased by 5%, then the next entry was If the value dropped by 7%, then the value would be CHART 13: Change in number of employers by employee size, Professional, Scientific and Technical Services sector, Toronto Region, December 2008 to June Dec-08 June-10 Dec-10 June-11 Indeterminate Source: Statistics Canada, Canadian Business Patterns CHART 14: Change in number of employers by employee size, Professional, Scientific and Technical Services sector, Ontario minus Toronto Region numbers, December 2008 to June Dec-08 June-10 Dec-10 June-11 Indeterminate Source: Statistics Canada, Canadian Business Patterns 16 Toronto s Opportunities and Priorities Local Labour Market Update 2012

18 The trends for changes in the number of employers follow a roughly similar pattern between the Toronto Region and the rest of Ontario. The number of firms with for 0 employees has fallen slightly, that for 1-19 employees has risen somewhat (slightly more so in the Toronto Region), and the figure for firms with employees remained steady between December 2008 and December 2010, then fell in June For firms with over 100 employees, in the Toronto Region the number more or less held steady, then fell considerably in June In the rest of the province, the number increased over June 2010 and December 2010, then also fell considerably in June Table 4 provides the data for the number of employers by employee size for Toronto and the rest of Ontario for June 2011, expressed in relation to the December 2008 numbers (the December 2008 number is equal to 1.00 in all instances). TABLE 4: Number of employers by employee size, Professional, Scientific and Technical Services sector, June 2011 (December 2008 = 1.00) Number of employees Toronto Rest of Ontario Source: Statistics Canada, Canadian Business Patterns Overall, between December 2008 and June 2011, the trend in the number of employers by employee size has been as follows: Roughly steady number for firms with no employees; An increase in the number of firms with 1-19 employees; A slight drop in the number of firms with employees; A considerable drop in the number of firms with 100+ employees. These trends closely parallel the trends for the rest of Ontario and suggest a drop in employment in this sector between December 2008 and June FOOD MANUFACTURING SECTOR The Food and beverage sector is a prominent manufacturing sector in Toronto. This sector has annual sales in excess of $18 billion and is a source of generating growth in related industries servicing the cluster. These include packaging, design, the production of food industry equipment, biotechnology and specialized storage and transportation. 12 Toronto dominates the provincial food industry as more than half of all the food processing in the province occurs in the Greater Toronto Region. The food and beverage cluster has long been a major component of Toronto s economy. It is the second largest employment sector in the city. With over 700 businesses in Toronto and 1,500 in the Census Metropolitan Area (CMA), and nearly 60,000 employees in the CMA, Toronto s cluster is one of the largest in Canada and the U.S., rivalling Chicago and Los Angeles as a major continental centre for the industry. Employment in this sector has increased at a rate of five per cent per year. Over the longer term (2000 to 2010), employment in this sector peaked in Toronto around 2005, and reached the same levels in 2009 after a significant drop in 2006 and Within the next 10 years, employment growth rates are expected to double. Toronto s Opportunities and Priorities Local Labour Market Update

19 CHART 15: Food Manufacturing Employment ,960 51,800 52,530 37,070 45,980 45,450 43, Total Employment Source: Statistics Canada, Labour Force Survey Bakeries are the largest single type of food processing plant, and this has resulted in diverse, high quality products in this sub-sector. Meat processing is the next largest sub-sector, followed by beverages. Firms that produce seasonings and dressings as well as snack foods have recently increased their market share. CHART 16: Composition of the Toronto food and beverage processing industry by sub-sector, 2008 Confectionary 5% Grains & Oilseeds 3% Feed 1% Beverages 8% Other 16% Fruit & Vegetable 7% Dairy 4% Meat 10% Seafood 1% Bakery 45% Source: City of Toronto 18 Toronto s Opportunities and Priorities Local Labour Market Update 2012

20 Changes in the number of employers Changes in the number of employers may be indicative of changes in the number of jobs. The following chart tracks the changes in the number of employers by firms of different employee size. The start point of comparison is, December 2008, which was given a value of Between 2008 and 2010 the number of employers dropped especially within 100+ employee category. CHART 17: Change in number of employers by employee size, Food Manufacturing sector Toronto Region, December 2008 to June Dec-08 June-10 Dec-10 June Source: Statistics Canada, Canadian Business Patterns Future Trends A developing new food economy has emerged, characterized by new consumer demands for local food, and by an increased prevalence of small and medium sized companies focusing on responding to these demands. Increasingly, consumers are driving Toronto s food market, indicating rising preferences for new kinds of products as local, ethnic or organic food. Toronto s Opportunities and Priorities Local Labour Market Update

21 NON PROFIT SECTOR The non-profit sector is made up of organizations that deliver programs and services from health care to after school sports that improve people s daily lives, foster cohesion, integration and innovation and bring vibrancy to communities. 13 The sector can be divided into five subcategories: religious organizations, welfare organizations, arts, entertainment and recreation, other non-profit and educational services. Finding relevant data on non-profits is more difficult than for other sectors of the economy that are differentiated from one another by the type goods and services produced instead of organizational characteristics. Below is a list of core industries that the Toronto Workforce Innovation Group has used for the purpose of analyzing the labour force activity in the sector. TABLE 5: NAICS 4-digit industries comprising core non-profit sector 4-digit NAICS sub-industry sectors Examples 6214 Out-patient care centres Family planning counselling services; outpatient treatment clinics for alcoholism and drug addiction; community health centres 6241 Individual and family services Youth centres; youth self-help organizations; adult day-care centres; homemaker services; senior citizen centres; neighbourhood centres; outreach programs; parenting services; rape crisis centres; refugee services; telephone counselling services 6242 Community food and housing, and Food banks; meal delivery services; soup emergency and other relief services kitchen; shelters for the homeless; transitional housing; volunteer housing construction organizations 6243 Vocational rehabilitation services Community service employment training programs; sheltered workshops; vocational rehabilitation services 6244 Child day-care services Child care centres Source: Statistics Canada, Canadian Business Patterns Proportion of core non-profit sector in City of Toronto and Toronto CMA Toronto CMA residents are employed in the non-profit sector at a somewhat smaller percentage than residents in the rest of Ontario. For City of Toronto residents the proportion is similar to that of the province. The proportions vary by subsector as illustrated in Table Toronto s Opportunities and Priorities Local Labour Market Update 2012

22 TABLE 6: Toronto CMA resident non-profit sector labour force as a percentage of the provincial non-profit sector labour force, 2006 City of Toronto Toronto CMA 6214 Out-patient care centres 18.1% 32.5% 6241 Individual and family services 20.3% 34.4% 6242 Community food and housing, emergency 27.0% 42.4% & other relief 6243 Vocational rehabilitation services 16.4% 34.2% 6244 Child day-care services 19.2% 42.7% 8132 Grant-making and giving services 35.9% 54.7% 8133 Social advocacy organizations 27.4% 41.7% 8134 Civic and social organizations 25.7% 38.9% All core non-profit sector 21.1% 38.8% ALL INDUSTRIES 20.2% 42.7% Source: Statistics Canada, Census Size of non-profit workforce Approximately 36,930 people or 3% of employed residents in the City of Toronto worked in the core non-profit sector in Residents of the City of Toronto make up 21% of Ontario s core non-profit sector labour force whereas the Toronto CMA residents make up 38.8%. City of Toronto residents form a disproportionate share of the provincial workforce in the following subsectors: grant-making and giving services; social advocacy organizations; and, community food and housing, emergency & other relief services. The non-profit labour force in the Toronto CMA grew by 17.1% between , outpacing the growth of the total labour force by almost 50 %. Over a third (37.6%) of the Toronto CMA core non-profit sector labour force is found in the Child Day-care Services sector. 14 Toronto s Opportunities and Priorities Local Labour Market Update

23 CHART 18 ALL INDUSTRIES All Core Non-profit Sector 6214 Out-patient care centres 6241 Individual and family services 6242 Community food and housing, emergency Vocational rehabilitation services 6244 Child day-care services 8132 Grant-making and giving services 8133 Social advocacy organizations 8134 Civic and social organizations Toronto Rest of Ontario Percentage Source: Statistics Canada, Census 2001, 2006 Demographics of workforce The most striking feature of the non-profit sector is the very high proportion of females who work in this field. While women make up 47.6% of the Toronto CMA labour force, they represent 84.4% of the core non-profit labour force. Educational attainment of workforce In the Toronto CMA, residents who make up the non-profit labour force have notably higher levels of educational attainment, particularly in the proportion of workers with college and related levels of education. There is also a noticeable difference between the educational attainment of females and males in the non-profit sector. Females are more likely to have college and related diplomas, while males are more likely to have bachelor degrees or higher. Over half (51.9%) of the labour force in the non-profit sector in the Toronto CMA have diplomas or degrees in one of three fields, social and behavioural sciences and law (21.9%); business, management and public administration (17.8%); and health, parks, recreation and fitness (12.2%). Women earn substantially less than men, regardless of industry, even when comparing full-year, full-time workers. Residents of Toronto earn more than residents in the rest of Ontario. Workers in the non-profit sector earn somewhat less than the average employment income for all industries. In part this is a consequence of the far higher proportion of females working in the non-profit sector. In particular, the average employment income is bought lower by the large share of workers in the child day-care centres sector, who earn substantially less. Average salaries for full-time, full-year employment in this sector, in Toronto are C$21,234-C$31, Toronto s Opportunities and Priorities Local Labour Market Update 2012

24 TOURISM AND HOSPITALITY SECTOR Tourism sector includes five industry groups: accommodation, food and beverage services, recreation and entertainment and travel services, transportation. An industry is considered a tourism industry if it would cease to exist, or continue to exist only at a significantly reduced level of activity, as a direct result of the absence of tourism. 15 Tourism in Toronto is a key industry that plays an important role in the city s economy; generating employment, foreign exchange earnings, investment and regional development. Characteristics of the sector include: Total spending by visitors is $4.35 billion Visitor spending in Toronto in 2010 generated $1.08 billion in total taxes Toronto has over 24,000 tourism related businesses employing 224,000 people. 16 Accommodation and Food Services Labour Force Accommodation as well as food and beverage services are large, fast growing sectors in the tourism industry in Toronto. Between 2005 and 2010, employment in these services experienced growth of 2.4%. Food and beverage services industry group has the largest share of the labour force. In 2010, 39,240 Toronto CMA residents were employed in this sector and 52.2% lived in the city of Toronto. Employment in the sector has seen a 66.6% increase in the last 15 years. CHART 19: Toronto CMA Occupations in Food and Beverage Service ,000 40,000 20, Total Occupations Source: Statistics Canada, Labour Force Survey The businesses in this sector can range from restaurants and bars to nightclubs and stylish dining rooms. Kitchen staff, room service staff, food and beverage servers and bartenders are some of the prominent positions in this area. Toronto s Opportunities and Priorities Local Labour Market Update

25 CHART 20: Five Largest Tourism Occupations Ontario Toronto Ottawa TOTAL TOURISM EMPLOYMENT 622, ,060 55,325 Food and beverage servers 7.6% 8.4% 9.7% Food counter attendants, kitchen helpers 6.7% 8.0% 8.1% and related occupations Cooks 5.7% 6.0% 6.8% Restaurant and food service managers 2.9% 3.8% 3.3% Bus drivers and subway and other transit 2.7% 3.0% 3.3% operators Source: Canadian Tourism HRC Within the tourism industry groups, accommodation and food and beverage services had the youngest labour force in Nearly 30% of the people working in accommodation food and beverage services fell within the age group. CHART 21: Accommodation and Food Service Employment by Age Group % 1% 17% 18% 19% 14% 23% Source: Statistics Canada, Labour Force Survey Immigrants are an important source of labour for tourism industries in the Toronto CMA, holding 27.3% of jobs. Tourism skills are transferable around the world. Depending on the nature of the job, work may be part-time or full-time. Individuals with skills that are applicable to several occupations increase their chances of finding full-time, full-year employment. Future growth is predicted in relation to: Woodbine Live with 1.5 million square feet of retail, restaurant, clubs and a hotel and meeting facilities is expected to create approximately 8,000 construction jobs and over 10,000 permanent jobs on completion Pan Am Games expected to create 15,000 construction-related jobs. Labour shortages According to the Canadian Tourism Human Resources Council by 2025, the potential labour shortage in Ontario s tourism sector the gap between tourism labour supply and demand in Toronto is estimated to potentially rise to 42,000 in Toronto. 24 Toronto s Opportunities and Priorities Local Labour Market Update 2012

26 C. STRATEGIC WORKFORCE DEVELOPMENT PRIORITIES The following four labour market challenges or priority issues were identified through consultations with employers and employer associations, attending community/business consultations and extensive data mining. The data sources used included Statistics Canada, Toronto s labour force survey, the Toronto Immigrant Employment Data Initiative (TIEDI), the Martin Institute for Prosperity and the Metcalf Foundation, among others. These issues are similar to those identified in ECONOMIC TRANSFORMATION Canada s economy, while it remains stable, was still affected by the global economic shifts of the past few years. Measures to reduce and manage deficits dominate Canadian as well as global considerations. The global downturn in 2008 still resonates in the Toronto Region, as evidenced by high youth unemployment rates and increasing numbers of working poor. Economic uncertainty has a number of effects as workers, employers and organizations seek out better means to mitigate risk and ensure long-term survival. A report released by the Metcalf Foundation on February 11, 2012, illustrates one outcome of the last decades economic shifts. The report, The Working Poor in the Toronto Region: Who they are, where they live, and how trends are changing notes that the number of working poor increased by 42% between 2000 and This group accounted for over 113,000 adults in the Region overall, and 70,700 in the city of Toronto. A surprising finding of the Metcalf report is that 73% of the Region s working poor are immigrants; the greatest increases in working poor populations are in communities like Mississauga, Richmond Hill and Markham. In January 2012, a report by the CIBC found that the jobs that are being created are getting worse and that low-paying jobs are growing faster than well-paying ones. The growing numbers of people working and poor in the Toronto Region paint a troubling picture. 17 New Employment Arrangements Workers as well as potential workers are facing uncertainty. While this uncertainty can be negative resulting in higher unemployment, greater competition, lowering wages, and higher underemployment, it may spark innovation and creative problem solving. Employers are looking at new ways of doing business. Some workers are taking advantage of the lack of stable, secure employment by taking up freelance work, becoming self-employed or innovative entrepreneurs. This Creative Class, as Richard Florida describes them, tend to be relatively highly educated and highly skilled. 18 On the other side of this spectrum are the precariously employed who may be forced into unstable employment. These workers may be exploited in their situations through wage theft and/or unregulated/unmonitored working environments. The definition of essential skills is shifting The economic uncertainty has resulted in the development of skills that are portable, transferable and allow for greater workforce/workplace flexibility. Discussions about how to foster entrepreneurial mindsets, problem solving skills, creativity and imagination within education and training systems, as well as workplaces, are becoming increasingly frequent for HR managers. Service provision from private, public and not-for profit sectors is becoming more innovative As charities and non-profits seek to diversity their revenue streams social enterprise is increasing as an innovative approach to solving social issues. Some areas of the private sector have taken a precautionary stance, delaying investment and hiring until there is greater global economic certainty. Balancing the profitability and long term sustainability of companies and governments without eroding the rights and well-being of workers is an ongoing issue. 2. DIVERSITY Diversity in the workforce is defined as differences in age, ethnicity, gender, sexuality, income level, first language, and ability. Mature workers are remaining in the workforce in unprecedented numbers and the incidence of youth unemployment is increasing. In addition, according to the recent Census, immigrants Toronto s Opportunities and Priorities Local Labour Market Update

27 are moving west, out of Ontario and away from Toronto, which will impact Toronto s labour supply. The inter-generational workforce exposes the dynamics between age groups who bring differing opinions, perspectives and expectations about employment. Many companies are attempting to balance a generation gap of more than 50 years between the oldest and youngest employees. Companies and organizations are looking at effective means to leverage inter-generational diversity and manage knowledge transfer. Strong leadership is required Workplaces in Toronto have unique challenges as a result of the enormous diversity. An understanding of multiple perspectives and approaches in combination with effective leadership will be key to leveraging productivity. Equitable opportunity for diverse populations to attain positions of leadership is crucial to the success of many teams, organizations and companies. 19 Communication skills are at the forefront of workplace effectiveness Employers all stressed the need for effective communication skills. As employees bring their unique perspectives, skills and backgrounds into the workplace, opportunities for communicating across differences must be managed carefully. Teams need time to build trust and effectiveness A common employer expectation is the ability to manage team work. Organizations are working to ensure adequate time-frames and procedures are in place to allow teams to maximize performance. Ensuring team members have the skills necessary to navigate constantly shifting working relationships will be key to ensuring productivity and harmony in the workplace. 3. ADVANCING TECHNOLOGY Digital literacy, the ability to understand and use digital tools, continues to grow in importance in workplaces and for jobs in As technology advances, these skills are crucial for navigating the digital environment. The workforce will have to select and apply digital tools and technology in the most appropriate manner to their working life. Current and future workers are under increasing pressure to advance their understanding, application and use of technologies relevant to specific working environments. Training to use these specific tools and technologies is not easily standardized or delivered through traditional means. The rapid pace of change means that skills developed today will not necessarily be applicable to jobs 5 years in the future, indicating the importance of continuously upgrading skills. The implication of such change is the need to continuously upgrade technological skills. 20 To benefit from opportunities in training and education, individuals must have essential digital literacy skills that will enable them to find, access, navigate and utilize education and skill building opportunities. Mobile learning and E-learning offer opportunities to learners with the knowledge to use these platforms and applications. Base level digital skills are required for all jobs In a report titled Menial No More by the Ontario Literacy Coalition, jobs labeled as low skilled in the past are not actually falling neatly into that category in a digital age. Technological advancement has meant that all workplaces are taking up technology as a means to improve work and information flow and to improve customer service. Digital skills are now forming a part of the overall essential skills of every worker. As an example, room attendants in hotels are working with digital inventory devices on cleaning carts. Knowledge workers are using technology to work collaboratively in varied and unique ways. As the benefits in relation to time and cost are reaped from virtual meetings workers are able to access information and contribute to the workplace from remote locations. Knowledge workers are pressed to learn to manage a vast amount of information, and are searching for effective ways to filter out information not entirely relevant to their needs. 26 Toronto s Opportunities and Priorities Local Labour Market Update 2012