Labour Force Survey

• What is the Labour Force Survey?
• Who is surveyed?
• Am I required to participate in the survey?
• Why and how was my household selected?
• Is the information my household provides confidential?
• What information does the Labour Force Survey collect?
• Who uses the survey data? Why is it important?
• How do I access survey results?
• If I want more information about the survey, where can I find it?

What is the Labour Force Survey?

The Labour Force Survey is a household survey carried out monthly by Statistics Canada. It is from the survey that the official unemployment rate is calculated. The Labour Force Survey divides the working-age population (aged 15 years and over) into three categories: employed, unemployed, and not in the labour force.

Who is surveyed?

The survey is conducted in 53,000 households across Canada. Excluded are residents of Indian reservations, hospitals, penitentiaries, and long-term care facilities. Also excluded are full-time members of the armed forces. Respondents remain in the survey for six consecutive months.

Am I required to participate in the survey?

Yes. Parliamentary legislation has made it mandatory for people to participate in this survey because of the vital information it provides about Canada’s labour market.

Why and how was my household selected?

It would be costly and impractical to survey each and every household in Canada. Instead, Statistics Canada employs a statistical method known as sampling. Sampling is an established way to determine the characteristics of an entire population by using the answers of a much smaller, randomly chosen sample. In order to ensure that the sample is an accurate reflection of the population as a whole, the survey results from all sampled households must be collected.

Is the information my household provides confidential?

Yes. Information submitted by individuals and households is kept strictly confidential. Under the Statistics Act, all Statistics Canada employees must take an oath of secrecy. Moreover, only employees who need to work directly with the questionnaires have access to them.

What information does the Labour Force Survey collect?

The LFS provides a wide range of information on employment, unemployment, and labour participation. The information is available by demographic characteristics such as age, sex, level of education, and family characteristics. Information is also produced by industry, occupation, job tenure, class of worker, weekly hours, wages, and union coverage. Results are available by province, census metropolitan area, and sub-provincial area.

Who uses the survey data? Why is it important?

The results from the Labour Force Survey have many uses. All levels of government rely on employment and unemployment information from the survey. For example, its information is used to determine Employment Insurance eligibility as well as the size and duration of the program’s benefits.

Data from the survey are also factored into the calculation of Gross Domestic Product, an aggregate measure of economic production. Among its many other uses, the Gross Domestic Product is an important factor in determining the size of transfers from the federal government to the provinces.

The survey’s data also help determine the Bank of Canada interest rate. The Bank is constantly monitoring the effects of its policies to see if they are having the intended effect on financial markets, spending, production, employment and ultimately inflation. Financial markets also look to the survey’s numbers to predict what the Bank of Canada might do with interest rates.

Because it provides valuable information on the success of various programs (or potentially the need for new ones), the Labour Force Survey is closely monitored by a number of government departments. For example, those concerned with adjustments to retirement and pension funding monitor information on the employment situation of older workers. Also closely watched by policy and program developers are data on youth employment and unemployment to see how these young people are entering the work force.

Trends in self-employment by sector are followed closely by those interested in the role played by small and medium-sized businesses in job creation and economic growth.

Finally, each month the media gives much coverage to the survey results as they are recognized as one of the most important signs of how the economy is performing.

How do I access survey results?

Results are released monthly in The Daily approximately 10 working days after the survey is completed.

If I want more information about the survey, where can I find it?

Contact the regional office nearest you.