Who Are Canada's Tech Workers? - Entrepreneurship

G L O S S A R Y O F S TAT I S T I C S C A N A D A’ S D E M O G R A P H I C C O N C E P T SFOR THIS REPORTThis report relies on a series of statisticaldefinitions from StatCan’s 2016 CensusDictionary.Working Individuals: Under Statistics Canada’s2016 Census Dictionary definition, thoseconsidered working individuals were peoplewho worked for any amount of time duringthe reference year (2015), even if only for a fewhours.Sex: Statistics Canada recently updated theirsex and gender variables. Under the newdefinitions, “sex” refers to “sex assigned atbirth” which is typically “based on a person’sreproductive system and other physicalcharacteristics.” Gender, on the other hand,refers to “the gender that a person internallyfeels (‘gender identity’ along the genderspectrum) and/or the gender a person publiclyexpresses (‘gender expression’).”We recognize that there are importantdifferences in meaning between the terms“sex” and “gender,” as well as “female/male”and “woman/man”; however, in this report weuse these terms interchangeably given that thisdistinction was not made in Statistics Canada’slast Census, which is the primary data sourcefor this report.Age: Under Statistics Canada’s definition,age refers to the age of a person at their lastbirthday (or relative to a specified, well-definedreference date)Visible Minority: Under the Statistics Canada’sdefinition, visible minority refers to “whethera person belongs to a visible minority groupas defined by the Employment Equity Actand, if so, the visible minority group to whichthe person belongs. The Employment EquityAct defines visible minorities as ‘persons,other than Aboriginal peoples, who are nonCaucasian in race or non-White in colour.’Categories in the visible minority variableinclude South Asian, Chinese, Black, Filipino,Latin American, Arab, Southeast Asian, WestAsian, Korean, Japanese, Visible Minority,n.i.e. (‘n.i.e.’ means ‘not included elsewhere’),Multiple Visible Minorities and Not a VisibleMinority.”Immigrant Status: Under Statistics Canada’sdefinition, immigrant status refers to whetherthe person is a non-immigrant, an immigrantor a non-permanent resident. Immigrants arethose who have been granted the right to livein Canada permanently, including naturalizedcitizens.Aboriginal Identity: Under Statistics Canada’sdefinition, “Aboriginal identity refers to whetherthe person reported identifying with theAboriginal peoples of Canada. This includesthose who reported being an Aboriginal person,that is, First Nations (North American Indian),Métis or Inuit and/or those who reportedRegistered or Treaty Indian status, that isregistered under the Indian Act of Canada,and/or those who reported membership in aFirst Nation or Indian band.” While StatisticsCanada used the term “Aboriginal” in the lastCensus, for this report we instead use the term“Indigenous” to better represent all of theIndigenous Peoples in Canada.Unfortunately, due to data limitations, we wereunable to examine other critical intersections,such as LGBTQ or disabled tech workers.w ho a re ca na da’s tech workers?4

Pa rt1 :Tec hW o r ke r sataG lanceIn this first section, we provide an overviewof Canada’s tech workers, including: howmany there are, what they earn, what level ofeducation they have, what age they are, as well aswhat cities and industries they work in.SIZE AND BREAKDOWNIn 2016, around 935,000 Canadians were workingin tech occupations, representing 5.1 percent of theCanadian labour force. Of these, 681,000 were indigital occupations while 254,000 were in hightech occupations.OccupationalGroupNumber ofworkersOf the top 10 technology occupations in Canadain 2016, the top 4 occupations that employed themost Canadians were primarily digital ones. Thisincluded 160,000 people working as informationsystems analysts and consultants, forming thelargest occupational group in tech; this wasfollowed by 104,000 people working as computerprogrammers and interactive media developers.The high-tech occupation with the highestemployment was civil engineers, with nearly58,000 workers.Share on-Tech18,300,00094.9%w ho a re ca na da’s tech workers?5

47,545Software engineers anddesignersw ho a re ca na da’s tech workers?160,000Information systems analystsand consultantsComputer programmers andinteractive media developers57,88063,465Computer network technicians54,585Computer and informationsystems managersDigitalCivil engineersMechanical engineers46,410Electrical and electronicsengineers044,490Electrical and electronicsengineering technologists andtechnicians40,00043,820User support techniciansFigure 1:Figure 1Top 10 Technology Occupations by Employment in CanadaTop 10 Tech Occupations by Employment in CanadaHigh Tech159,895120,000104,08580,00067,620Source: 2016 Canadian Census6

GROWTHTech occupations grew relatively faster than therest of the workforce. Between 2006 and 2016,there were 183,000 more people in the techworkforce.The share of tech workers in the workforce overthis period grew by 0.66 percentage points to5.1 percent. In addition, employment in techoccupations grew by 24 percent, which was fasterthan most other occupational categories. Techoccupations, as defined in this report, exist acrossStatistics Canada’s occupational categories (2digit NOCs); these categories are therefore notmutually exclusive. Even so, the fact that onlytwo occupational categories experienced a higherpercentage change in employment comparedto tech occupations suggests that the relativeimportance of tech workers in Canada’s economy isgrowing.4Figure 2:Percent Change in Employment between 2006 and 2016 for 2 digits NOCs compared to techoccupationsFigure 2Change in Share of employment of different occupational groups75%50%25%0% 25%Occupations in education,law and social, community andgovernment servicesHealth occupationsTech OccupationsManagement occupationsNatural and applied sciencesand related occupationsOccupations in art, culture,recreation and sportSales and service occupationsTrades, transport andequipment operators andrelated occupationsBusiness, finance andadministration occupationsOccupations in manufacturingand utilitiesNatural resources, agricultureand related productionoccupations 50%Source: 2006, 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?7

Using Employment and Social DevelopmentCanada’s (ESDC) Canadian Occupational ProjectionSystem (COPS)5, we forecasted future digital andhigh-tech employment in Canada. Employment isprojected to grow by eight percent (around 45,200workers) in high-tech occupations from 2016 to2026, and 18 percent (around 143,800 workers) indigital occupations, totalling 189,000 new workersin tech occupations. Employment in non-techoccupations is expected to increase by 8.6 percent.The share of high-tech occupations in Canada’slabour market is expected to remain mostlyunchanged over this period, at 2.3 percent, whilethe share of employment in digital occupations isexpected to increase to 4.8 percent—an 8 percentincrease in its share of the total workforce. COPS,like other forecasts, relies on many assumptionsabout future economic conditions and the sizeand distribution of occupation demand. If therate of tech growth increases, these figures mayunderestimate the potential growth in tech jobs.Figure 3Figure 3:Projected Employmentfor Tech Occupations:Projected EmploymentGrowth forGrowthTech Occupations:2016-2026 2016 2026DigitalHigh 1920202021Year20222023202420252026Source: Canadian Occupational Projection System (COPS)w ho a re ca na da’s tech workers?8

SALARYOccupational GroupIn 2016, tech workers were paid considerably morethan non-tech workers. High-tech occupationsearned the most, earning on average 45,000 morethan non-tech occupations. Digital occupationsearned on average nearly 21,000 more than nontech occupations.SalaryDigital 66,000High-Tech 90,000Non-Tech 45,400Pay in tech occupations is the highest amongstengineers, in particular, those working in theresource sector. In 2016, petroleum engineersearned the highest salary at 175,292, followedby engineering managers at 132,409 and miningengineers at 126,190.Figure 4Top 10 Technology Occupations by Income in CanadaTop 10 Tech Occupations by Average Earnings in Canada, 2016Figure 4:DigitalHigh Tech 200,000 175,292 150,000 109,681 109,975 100,000 118,009 126,190 132,409 99,521 99,545 94,629 97,434Petroleum engineersEngineering managersMining engineersChemical engineersGeological engineersComputer and informationsystems managersMetallurgical and materialsengineersTelecommunication carriersmanagersElectrical and electronicsengineers 0Mathematicians, statisticiansand actuaries 50,000Source: 2016 Canadian Censusw ho a re ca na da’s tech workers?9

E D U C AT I O NTech workers have higher levels of formalheld no degree or diploma. Workers in non-techeducation on average than non-tech workers. Theoccupations, on the other hand, were less likely tomajority oftech5 workers (57.8 percent) held at leasthold at least a Bachelor’s degree (25.7 percent), andFigurea Bachelor’s degree in 2016, and only a minimal38.9 percent had either no degree or held only aEducational Composition of Tech Occupationsnumber (0.8 percent or around 14,000 people)secondary school diploma.Figure 5:Educational Composition of Tech Workers in Canada, 2016100%No DegreeSecondary SchoolApperenticeship and Trade SchoolsCollege, CEGEP75%University Degree Below BachelorsBachelorsAbove Bachelors50%25%0%Not Tech OccupationTech OccupationSource: 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?10

AGENearly 53 percent of tech workers in 2016 werebetween the ages of 25 and 44, while over 38percent were between 45 and 64.AgeGroup# of TechWorkersShare of TechWorkforceParticipationin TechPayin TechPay in non-TechOccupations15 – 2457,0005.9%2% 26,400 15,50025 – 44514,00052.8%6.5% 72,100 45,30045 – 64373,00038.3%4.9% 92,000 52,30065 and over28,0002.9%2.6% 67,900 38,000INDUSTRIESFigure 6Figure 6:Tech Workersby IndustryGroupsNumber of EmploymentTech WorkersofEmployedby IndustryGroupsDigitalHigh TechEmployment300,000200,000Retail tradeUtilitiesEducational servicesConstructionWholesale tradeFinance and insurancePublic administrationManufacturingInformation and culturalindustries0Professional, scientific andtechnical services100,000Source: 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?11

Among industries, the greatest number of techworkers are in Professional, Scientific, and TechnicalServices, distantly followed by Information andCultural Industries. The makeup of tech workersvaries by industry. For instance, Manufacturingemploys a large number of engineers and otherhigh-tech workers. Meanwhile, the relatively largenumber of tech workers in Public Administrationand Finance is driven by their large digitalworkforce, particularly Information SystemsAnalysts and Consultants, which accounted forabout 21,000 workers in each industry.Figure 7:Information and Cultural Industries have thehighest concentration of tech workers at 28percent, primarily digital. Utilities had the highestconcentration of high-tech workers at 9 percent,while the Finance and Insurance sector’s techworkforce is almost entirely digital.Figure 7Share ofShareTech Workersby IndustryGroups Groupsof Tech Workersby IndustryDigitalHigh Tech20 %ConstructionWholesale tradeManufacturingPublic administrationFinance and insuranceMining, quarrying, and oil andgas extractionManagement of companies andenterprisesUtilities0%Professional, scientific andtechnical services10 %Information and culturalindustriesShare of Industry Employment30 %Source: 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?12

CITIESThe top five cities by tech worker employmentwere Toronto with 238,000, Montréal with 140,000,Vancouver with 82,000, Ottawa with 69,000, andCalgary with 63,000.The cities across Canada with the highestconcentration (proportion of the labour forceoccupied by tech workers) were Ottawa with 9.8percent, Calgary with 7.9 percent, Toronto with 7.6percent, Fredericton with 7.2 percent, and WaterlooRegion with 7 percent. Digital workers make up themajority of tech workers in these cities; however,Calgary also has a large share of high-tech workers,presumably the result of a large number ofengineers working in the region’s resource sectors.Figure 8:Between 2006 and 2016, Toronto and Montréal sawthe largest absolute increase in the number of techworkers, with the cities adding 53,000 and 33,000tech workers over the 10-year period, respectively.Meanwhile, Kitchener-Waterloo and Frederictonsaw the largest increase in the concentrationof tech workers over the same 10-year period.Kitchener’s tech employment grew from 5.5%of their total workforce to 7 percent, whileFredericton’s grew from 6 percent to 7.2 percent.Learn more about your city’s tech workforce withour data visualization for every city in Canada.Figure 8Concentrationof TechConcentrationWorkers by CitiesGeographical(%) inofCanadaTechnology Occupations, 2016 CanadaDigitalHigh Tech10 %8%5%Ottawa GatineauCalgaryTorontoFrederictonCarleton PlaceKitchener Cambridge WaterlooQuébecMontréalVancouver0%St. John's2%Source: 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?13

Figure 9:Figure 9Tech OccupationsEmploymentby CanadianCities Occupations, CanadaGeographicalDistributionof TechnologyDigitalHigh ncouverOttawa GatineauCalgaryEdmontonQuébecKitchener Cambridge WaterlooHamilton0Winnipeg50,000Source: 2016 Canadian Census, BII E Analysisw ho a re ca na da’s tech workers?14

Figure 10:FigureOccupations1010 Years Change in TechEmployment for Canadian Cities, 2006-201610 Years Change in Absolute Number of Tech Workers by Canadian CitiesIn ,300Calgary61,655Ottawa ,53562,97569,43534,36029,210Kitchener Cambridge 13,785Waterloo19,875Hamilton 14,50018,205Winnipeg 15,57518,0800In 201650,000100,000150,000200,000250,000Source: 2016, 2006 Canadian Censusw ho a re ca na da’s tech workers?15

Figure 11:Figure10 Years Change in Shareof11Employment for Canadian Cities10 Years Change in Relative Number of Tech Workers by Canadian CitiesKitchener Cambridge t. John'sCalgaryOttawa Gatineau5%6%7%8%9%10 %Source: 2016, 2006 Canadian Censusw ho a re ca na da’s tech workers?16

Pa rt2:Di v er si t yinTec hOcc u pa t i o n sIn this section we examine diversity among techworkers, looking specifically at the earnings andparticipation of women, visible minority groups,immigrants and Indigenous Peoples.WO MEN ARE UN D ERREPRE S EN TED,AND RECEIVE LOWER SALARIES INT E C H O C C U PAT I O N SWomen in tech occupations are more likely tohold a Bachelor’s degree or higher. However,when comparing women and men in tech with aBachelor’s degree or higher, the simple pay gap ismuch higher at 19,570. The pay gap between menand women is greater for older workers, whichmight indicate that pay differentials increase ascareers progress or might reflect an improvementin pay equity in recent years.Our findingsContextThere are serious participation and earningsdisparities between men and women in tech.These findings unfortunately do not come as asurprise. It has long been the case that genderrepresentation and earnings in tech occupationsare far from equal. A significant body of researchsuggests that barriers to entering tech rolesbegin early in life for women: influences fromfamilies, teachers, role models, and culturalstereotypes can impact women’s decisions toengage in subjects that set them up for tech roleslater in life. There is also evidence pointing to amale-dominated culture in science, technology,Men are four times more likely than women to bein a tech job; and over the past 10 years, growthin the number of tech workers has been primarilydriven by an increase in the share of male techworkers between the ages of 45 and 64. There isalso a stark pay gap between men and women intech occupations, with women earning on average 7,300 less than their male counterparts.6w ho a re ca na da’s tech workers?17

engineering and mathematics (STEM) education,and to discrimination in hiring or on the job.These barriers can steer women away from STEMmajors, and impact their career opportunitiesand trajectories in tech. While women have longsurpassed men in attaining a bachelor’s degreeor higher, they remain underrepresented in STEMeducation programs.7 These trends continueinto the labour market in the form of lowerparticipation in science and tech occupations.Previous studies have also highlighted thatwomen tend to be paid less, both within the sameoccupations and across occupations. Furthermore,the gender pay gap grows as careers progress andsalaries increase, resulting in particularly starkdifferences at the top of the wage distribution.Gender participation in tech occupationsLabour force participation among women inCanada has been steadily increasing. In 1983, 65.2percent of Canadian women between 25 and 54participated in the labour market. By 2015, thisfigure had rose to 82 percent. Canada now hasthe lowest gender participation gap of all G-7countries. In 2016, women made up 48 percent ofthe labour market, compared to 45 percent in 1991.Despite these trends, in 2016 there were 584,000more men in tech occupations than women. Menwere almost four times more likely than womento work in a tech occupation.Table 1:Tech Workers by GenderGender# of Tech WorkersShare of Tech WorkforceParticipation in TechMen778,00080%7.8%Women194,00020%2.1%w ho a re ca na da’s tech workers?18

F O R T H E PA S T 1 0 Y E A R S , G R O W T H I N T E C H O C C U PAT I O N S H A S P R I M A R I LYBEEN DRIVEN BY AN OLDER MALE COHORTWomen have dramatically increased theirparticipation in the labour force writ large. Butthe participation rate among women in techoccupations was much lower than men across allage groups.male cohort (see full methodology in AppendixB). Tech workers between the ages of 45 and 64years old accounted for nearly 90 percent of the189,000 person increase in tech workers across theCanadian economy. Men in this age range wereresponsible for 79 percent of the total growth,adding nearly 129,000 tech workers.As a result, growth in the number of tech workersfrom 2006 to 2016 was primarily driven by an olderWomen participate at lower rates in tech, for all age groups*MKYVI Figure12:Employmentin Tech Occupations by Age and Sex, 2016)QTPS]QIRX MR 8IGL 3GGYTEXMSRW F] %KI ERH 7I\ )EGL HSX MW TISTPI-R 8IGL 3GGYTEXMSR 1EPI

Defining Tech 3 Part 1: Tech Workers at a Glance 5 Size and Breakdown 5 Growth 7 Salary 9 Education10 Age11 Industries 11 Cities 13 Part 2: Diversity in Tech Occupations 17 Women are underrepresented, and receive lower salaries in tech occupations 17 For the past 10 years, growth in tech occupations has primarily been driven