Census of Population: Earnings, levels of schooling, field of study and school attendance

The seventh round of data from the 2001 Census of Population, which provides a thorough analysis of gains in employment income among Canadians during the past 20 years and of the phenomenal growth in their levels of education, is now available.

This release includes detailed information on the influence of education and work experience on average earnings among various groups in the population. It also analyses changing patterns in fields of study and school attendance, and education levels among immigrants and Aboriginal peoples.

University education and experience pay off in higher earnings

Average annual earnings surpassed $30,000 for the first time in 2000, as working Canadians began reaping the benefits of globalization and the knowledge-based economy.

Average earnings among the more than 16.4 million people aged 15 and over who had employment income in 2000 was $31,757 each, up from $29,596 in 1990 and $29,229 in 1980.

The 7.3% gain in average earnings during the past decade was the result of three factors: the demand for highly skilled workers in the face of advancing technologies and globalization; an aging workforce of baby boomers who experienced substantial gains in earnings during the decade; and more working people with university education.

As a result, the number of earners in higher income brackets - those who make $80,000 or more a year and especially those who make $100,000 or more - soared during the 1990s.

At the same time, the number of individuals making $20,000 or less a year represented four out of every 10 people with employment income in Canada. This is essentially the same proportion as in 1990.

In 2000, women aged 15 and over who had employment income made 64 cents for every $1 earned by their male counterparts (the gap was smaller for younger women). In 1980, this gap was much larger, at 52 cents.

The census showed clearly that higher education is a gateway to higher earnings. More than 60% of people in the lowest earnings category did not have more than a high school education in 2000, while more than 60% of those in the top category had a university degree.

But the census also shows that it is older groups with higher education and more work experience who made the most significant earnings gains. A clear generational divide has opened up in the labour market with younger groups on a lower earnings track than older, more experienced groups.

Recent immigrants earned substantially less than their Canadian-born counterparts even after 10 years in the country. This was true for both immigrants with low levels of education and those with a university degree.

Canadians better educated than ever

Canada entered the 21st Century with a population better educated than ever, according to new data from the 2001 Census. The hallmark of the 1990s was the tremendous growth in the number of Canadians with a college or university education, a trend that began at the end of the Second World War.

Three developments set the stage for advances in education between 1991 and 2001: first, a labour market preference for skilled workers to compete in a global and technologically advanced economy; second, immigration rules designed to attract highly skilled immigrants; and third, the recession of the early 1990s that was particularly difficult for Canadian youth.

The increases in education were dramatically apparent for those aged 25 to 34. People from this generation were aged 15 to 24 when the recession of the 1990s hit. Many of them may have opted to stay in school rather than face uncertain prospects in the labour market.

According to the census, 28% of all individuals aged 25 to 34 had university qualifications and 21% held a college diploma. Another 12% had trade credentials. In all, 61% of people in this age group had qualifications beyond high school. In comparison, at the time of the 1991 Census, 49% of those aged 25 to 34 had post-secondary credentials.

This growth has shifted the education profile of the adult population (25 and over) as a whole. From 1991 to 2001, the proportion of adults with university credentials grew from 15% to 20%. Another 16% had a college diploma in 2001, up from 12% a decade earlier. The proportion with a trade certificate remained stable at 12%.

Education levels rose for both men and women. In 2001, 21% of men aged 25 and over were university graduates, up from 17% in 1991. The proportion of male college graduates increased from 10% to 13% over the decade.

The growth among women was even greater. The proportion of university graduates among adult women jumped from 14% in 1991 to 20% in 2001. About 18% had college credentials in 2001, up from 14%.

In all, the number of Canadians aged 25 and over with university, college or trade credentials grew by 2.7 million, a 39% increase and more than 2.5 times the population growth for that same age group.

In 2001, 1.1 million people in the working-age population (25 to 64) had doctorates, master's degrees or other qualifications above the bachelor level, such as degrees in law, medicine, dentistry and veterinary science. This was a 50% increase from 750,000 in 1991.

In terms of field of study, changes during the decade reflect increasing numbers of students choosing technology and business fields. Of the 1.2 million increase in university graduates from 1991 to 2001, about 12% or 154,000 had graduated in business and commerce. Another 11% or 133,000 had studied engineering.

The census also revealed that 6 in 10 immigrants of working age who arrived in the 1990s had trade, college or university credentials in 2001.

Detailed analysis of these new census data is presented in two online reports, Earnings of Canadians: Making a living in the new economy and Education in Canada: Raising the standard, available on Statistics Canada's website (). Both documents are illustrated by numerous tables and charts.

These reports also link to various products and services available from the Census module, which was designed to provide easy access to census data using new electronic tools. Information in the module is organized into four broad categories: analysis, data, maps and reference material.

In addition, in the Community profiles module, data for earnings, highest level of schooling and school attendance are available for Canada and the provinces and territories, as well as for 27 metropolitan areas and nearly 6,000 cities, towns, villages and Indian reserves.

For more information, contact Media Relations (613-951-4636), Communications Division.