Data quality, concepts and methodology: Variables

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Employee: The employment is derived from administrative records. Since the data for the different employee categories are not reported on the administrative records, the BPS survey is conducted to estimate ratios needed to calculate those variables.

The survey determines an employee as being any person drawing pay for services rendered or for paid absences and for whom the employer must complete a Canada Revenue Agency T-4 form.

The employee concept includes full-time employees, part-time employees (those who regularly work fewer hours than the standard work week of the establishment). It also comprises working owners, directors, partners and other officers of incorporated businesses.

The employee concept excludes owners or partners of unincorporated businesses, the self-employed, unpaid family workers, persons working outside Canada, military personnel and casual workers for whom a T-4 is not required. It also excludes those who did not receive any pay from the employer for the entire survey reference period (e.g. persons on strike, persons on unpaid holidays, persons receiving remuneration from an insurance, Workmens' compensation or other related fund, etc.). However, employees paid for part of the reference period and unemployed or on strike for the rest of this period are included in the survey.

The employees are classified into the following categories:

Employees paid by the hour: any employee whose basic wage is expressed as an hourly rate.

For Elementary and Secondary schools (6111), Community colleges and CEGEP(s) (6112), Universities (6113) Business schools and Computer management training (6114) and Technical and Trade schools (6115) industries, this category of employment represents Non-teaching Staff: all employees other than teachers and academic staff i.e. president, vice president, librarian, registrar, bursar, accountant, guidance counsellor, laboratory technician, personnel officer, and other services (janitor, bus driver etc).

Salaried employees (paid a fixed salary): any employee whose basic remuneration is a fixed amount for at least one week.

For Elementary and Secondary schools (6111), Community colleges and CEGEP(s) (6112), Universities (6113), Business schools and Computer management training (6114) and Technical and Trade schools (6115) industries, this category of employment represents Teaching Staff: those classified as teachers, instructors or academics in the payroll records (e.g. principal, professor, dean, head of department, master, teacher, etc.) whether they teach during the day or evening. Supply or substitute teachers are excluded.

Other employees: those employees whose basic remuneration is in the form of commissions, piece rates, mileage allowances, etc. Although this variable is not included in this document, the data remains available.

For Elementary and Secondary schools (6111), Community colleges and CEGEP(s) (6112), Universities (6113), Business schools and Computer management training (6114) and Technical and Trade schools (6115) industries, this category of employment represents Supply or Substitute Teachers: teachers who are called in to teach whenever their services are needed either to augment the existing staff or as a short-term replacement for a full-time or part-time teacher.

Weekly Payrolls: Weekly payrolls are defined as the portion of gross monthly payrolls that reflect work performed during the reference week. It represents the gross dollar value before deductions for income taxes, employment insurance contributions etc.., including regular pay, overtime and a portion of bonuses, commissions and other type of special payments. The payroll concept excludes dollar amounts that are taxable allowances and benefits, certain types of non-wage compensation as well as employer contributions to employment insurance, Canada/Quebec pension plans, provincial medical plans, workers compensation and other welfare plans. Some annual special payments are excluded while other lump sum special payments are adjusted to coincide with the reference week period. The gross monthly payrolls are derived from Administrative records.

Average weekly earnings (including or excluding overtime) for all employees: Average weekly earnings are derived by dividing total weekly payrolls (including or excluding overtime) by the payroll employment.

Average hourly earnings (including or excluding overtime) for hourly paid employees: Average hourly earnings for hourly paid employees is obtained by dividing the total weekly payrolls (including or excluding overtime) by the total number of weekly hours (including or excluding overtime).

Average hourly earnings (including or excluding overtime) for salaried employee: Average hourly earnings is derived by dividing the total weekly payrolls (including or excluding overtime) by the number of paid hours.

Average weekly hours (including or excluding overtime) for hourly paid employees: Average weekly hours are obtained by dividing the total paid weekly hours (including or excluding overtime) by the number of hourly paid employees.

Average weekly hours for salaried employees: Average weekly hours are obtained by dividing the total paid weekly hours by the number of salaried employees.

Total hours paid for hourly paid employees (including or excluding overtime): Total paid hours are defined as all hours paid (including or excluding overtime hours) including hours of paid absence.

Total hours paid for salaried employees: Total hours paid are obtained by multiplying the average Standard work week hours (note that this variable does not include overtime) by the number of salaried employees.

SEPH Data by size of enterprises

On a quarterly and annual basis, SEPH produces Employment, Average Weekly Earnings and Hours data by employment size of enterprises for Canada, the provinces and territories. Provincial and territorial employment is thus allocated to the size of employment of the enterprise in Canada. The employment size of an enterprise is calculated as an average of the monthly employment levels reported for the period. The data is produced at the sector level of the North American Industrial classification and for the Industrial aggregate level.

The employment sizes are:

1. 0 to 4 employees
2. 5 to 19
3. 20 to 49
4. 50 to 99
5. 100 to 299
6. 300 to 499
7. 500 and plus
8. All sizes

SEPH also produces data for the following sizes:

1. 0 to 49 employees
2. 50 to 299
3. 300 and plus

The data produced by size of enterprises will generally be more volatile than the estimates produced for the SEPH monthly production. For example, the levels published for smaller size of employment cells may be affected by the movements of enterprises from one size to another from quarter to quarter. Other events such as strike, temporary closures, changes in the enterprise structures on the Business Register will also cause volatility to the more detailed sizes series. It should be noted that while the data by employment can be a useful research tool, it should not be used in contract escalation because of the potential for higher level volatility associated with this product.

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