Study: Knowledge workers in Canada's workforce

The shift towards a knowledge-based economy in Canada was a more widespread and continuous process than analysts have previously thought, according to a new study. Furthermore, this shift was not restricted to narrow areas of interest, such as popularly defined high-tech sectors.

The study found that this expansion is not a new phenomenon that has emerged only in the 1990s when the information and communications technology sector experienced explosive growth.

In fact, the proportion of knowledge workers increased steadily over the last three decades, reflecting a growth trend that began long before the high-tech boom of the 1990s.

In 1971, about 14% of Canada's workforce fell into what can be considered high-knowledge occupations. By 2001, this proportion had almost doubled to 25%. Growth also occurred across most industries.

Growth was continuous for professional and management occupations throughout the 30-year period, but fell behind in the 1990s for the technical occupations.

The largest increase occurred among the largest group of knowledge workers, that is, those in professional occupations. In 1971, they accounted for almost 9% of Canada's workforce. Three decades later, they accounted for more than 14%.

Knowledge workers found in all areas of the economy

Contrary to the view that knowledge workers are found only in a handful of high-technology industries, the report shows that Canada's skilled workers are spread widely across all sectors and regions of Canada.

The shift towards a more highly skilled workforce has been a long, continuous process, crossing all provinces and the urban-rural divide. The study suggests that there has been a general increase in the importance of skills, knowledge and human capital among many types of firms and industries.

Across industries, there were large differences in the percentage of employment found in knowledge-based occupations. In 2001, some of the largest concentrations of knowledge workers were in business services (66%) and finance and insurance (42%).

From 1971 to 2001, the proportion of knowledge workers in the mining and oil and gas sector almost doubled, from 14% to 26%.

In the 1990s, the proportion of workers who were knowledge-based grew faster in service industries than in goods industries.

In the business sector, a higher proportion of men work in knowledge-based occupations than women. In 1996, 11% of female workers in these industries were employed in knowledge-based jobs, compared with 19% of male workers. However, over the long run, the proportion of female knowledge workers has grown faster than that of their male counterparts.

Educational requirements highest for professional workers

The proportion of workers in knowledge-based occupations who have completed a university degree has increased significantly.

In 1971, 34% of knowledge workers had university degrees, compared with slightly less than 3% of other workers. By 2001, 52% of all workers in knowledge-intensive occupations had a university degree, compared with less than 10% of those in other occupations.

University degrees are most common in professional occupations. In 1971, slightly less than 45% of professionals had university degrees. Three decades later, this proportion had increased to two-thirds.

Still, among knowledge workers, those in technical occupations experienced the fastest growth in university degrees over the last three decades.

While knowledge-based occupations pay significantly higher wages, the wage advantage enjoyed by knowledge workers relative to other occupations did not increase significantly from 1971 to 2001.

Growth in knowledge workers apparent in all regions

Growth in knowledge-based occupations has occurred in all regions. Ontario and Quebec experienced the biggest percentage point increases.

However, provincial differences in the incidence of knowledge occupations were primarily the result of their industrial and urban structure. After controlling for differences in industrial and spatial structure, only very small differences were apparent across Canada's provinces.

From 1971 to 1996, the percentage of workers in knowledge occupations was much higher in urban areas than in rural areas, but these urban-rural differences have decreased over time.

The fourth research paper from the Canadian Economy in Transition Series, Dimensions of occupational changes in Canada's knowledge economy, 1971-1996 (11-622-MIE2003004, free) is now available online. An update that includes data on knowledge workers for 2001, Knowledge workers in Canada's economy, 1971-2001 (11-624-MIE2003004, free) is also available. From the Our products and services page, under Browse our Internet publications, choose Free, then National accounts.

For more information on other papers related to the growth and development of the new economy, go to the Economic transitions page on our website (/english/studies/eaupdate/trans.htm).

For more information, or to enquire about the concepts, methods or data quality used in this release, contact Desmond Beckstead (613-951-6199), Micro-Economic Analysis Division.