Economic and Social Reports, July 2023

There are six new articles available in today's release of Economic and Social Reports.

Parents report paying more than $7,500 per year for full-time child care in 2022

In Budget 2021, two of the goals that were specified included a 50% reduction in fees for early learning and child care by the end of 2022, and an average fee of $10 a day by 2026 for all regulated child care spaces in Canada. The article "Estimates of parental child care expenses in January to February 2022," finds that in early 2022, before full implementation of a Canada-wide child care system, parents reported paying an average of $7,790 per year ($649 per month or $31 per day) for the main full-time (30 or more hours per week) child care arrangement for their 0- to 5-year-old.

The amount parents paid for their child's main child care arrangement varied by age of child, hours in care and type of child care arrangement. For example, parents paid from $3,520 (for care by a family member other than a parent) to $26,700 (for care by a non-relative in the child's home, i.e., a nanny), per year for full-time child care for their 0- to 5-year-old child. This information can be used as context as the child care system is further developed by the provinces and territories.

A presentation summarizing research on many aspects of early learning and child care was also released today. "Research to Insights: Early Learning and Child Care" provides an overview of recent analysis on child care supply and demand, including the provision of child care services, economic contribution of child care, and a description of the use of child care services in Canada.

Canadians changing habits in search of lower-cost options for groceries

As food prices continue to rise, consumers have been changing their buying habits to help stretch their budgets. The article "Switching stores to cope with high inflation: Food sales at food and beverage stores and general merchandise stores," finds that consumers have been pivoting away from food and beverage stores towards general merchandise stores, a group of retailers that includes warehouse clubs, supercentres, and other general merchandise retailers.

As households consume less, and change how and where they shop, the volume of food purchased at food and beverage stores has been declining. A recent survey found that 71% of Canadians are either purchasing or using less grocery store items than before. In 2022, sales at food and beverage stores were up 5.8%, however sales volumes were down 3.6%. Before the COVID-19 pandemic, food sales at food and beverage stores accounted for 73% of all retail food purchases. This fell to about 70% in late 2022. At the same time, the share of food sales at general merchandise stores increased from 21.6% in early 2021 to 25.9% in late 2022. Many Canadians are shifting to less expensive alternatives, brands, or items. Others have been searching out lower cost options such as discount grocers. Lower sales at food and beverages stores may also partly reflect other emerging trends that are harder to assess, for example the rising popularity of meal-prep kits delivered to the home, an increased use of coupons, switching only certain purchases from one store to another, or reducing food waste.

More managerial, professional and technical jobs since the beginning of COVID-19

While Canadian businesses were already becoming more automated and Canadian workers were moving towards more managerial, professional, and technical jobs, the COVID-19 pandemic may have accelerated these trends. The article "The changing nature of work since the onset of the COVID-19 pandemic," finds that the increase in the share of workers in managerial, professional and technical jobs from 2019 (32.3%) to 2022 (36.0%) accounted for almost one-third of the increase registered over the last 35 years. This increase in recent years was counterbalanced by declines in service jobs (from 21.3% in 2019 to 19.2% in 2022) and production, craft, repair and operative jobs (from 21.8% in 2019 to 20.5% in 2022).

Results were similar for men and women, except that women did not register a significant decline in production, craft, repair and operative jobs over this period. Moreover, the increase in managerial, professional and technical jobs and the decline in service jobs was considerably more pronounced among younger workers (25 to 34 years old) compared with older workers (45 to 54 years old).

Changing occupations may have required training in certain cases, and government supports were available to help displaced workers pursue this route if they chose.

Provincial Nominee Program contributing to settlement of immigrants outside cities

The expansion of the Provincial Nominee Program (PNP) has significantly transformed the selection process for economic immigrants in Canada since the 2000s. In 2000, the Federal Skilled Worker Program (FSWP) accounted for the majority (79%) of economic immigrants, but its share decreased to 30% by 2019. Meanwhile, the PNP emerged as the largest program, accounting for 35% of all economic immigrants to Canada. The study, "The Provincial Nominee Program: Its expansion in Canada," shows that the PNP has contributed to a more even regional distribution of new economic immigrants, with the share intending to settle in Ontario declining from 61% in 2000 to 42% in 2019. There were also notable changes in the characteristics of provincial nominees, including an increased proportion with pre-immigration Canadian work and study experience, an increased share in the 20-to-29 age group, higher educational attainment, and improved proficiency in official languages.

Provincial nominees were more likely to intend to work in technical occupations and less likely to work in professional occupations than FSWP immigrants. Consequently, in 2019, there were almost as many skilled and technical new economic immigrants as professionals; this was a significant change from 2005, when professionals dominated.

About 2.5% of all families in Canada claimed some type of caregiver credit

The article "What can be learned about caregivers in Canada from the analysis of families claiming the Canada caregiver credit?," 

uses national administrative data from 2017 to 2019 to spotlight the characteristics of Canadian families caring for family members who have severe and prolonged impairments in physical or mental functions. It found that about 2.5% of all families in Canada claimed some type of Canada caregiver credit (CCC), with the highest prevalence observed for the CCC for infirm adults (1.1% of all families).

Older families were more likely to claim the CCC for spouses and common-law partners than families younger than 70 years, while families in their 40s were particularly likely to claim the CCC for infirm children. Canadian-born couples were considerably more likely to claim the CCC for spouses than immigrant couples. By contrast, immigrant families were generally more likely to claim the CCC for infirm adults.

High-income families with children were less likely to claim the CCC for infirm children than those in the middle deciles. The prevalence of the CCC for spouses also generally declined across family income deciles. By contrast, a higher family income meant a higher prevalence of the CCC for infirm adults.

Important new insights into the earnings of individuals with childhood-onset disabilities

Having a prolonged disability is generally known to be negatively associated with employment and earnings. The age of disability onset plays an especially important role in the lifetime labour market outcomes of individuals with disabilities. The article "Highlights from a new study on the lifetime earnings growth of individuals with childhood-onset disabilities," summarizes findings from a new study that examines the lifelong evolution of the earnings of individuals with a disability that started when they were children.

The study shows that the earnings of individuals with childhood-onset disability (COD) generally grow slower than the earnings of individuals without COD during their working careers. Those with COD experience very little earnings growth when they are in their mid-30s and 40s, while the earnings of those without COD grow steadily until they reach their late 40s and early 50s. While the annual earnings of men with COD in their late 40s are, on average, about 3.6 times larger than their earnings at age 20, the annual earnings of men without COD in their late 40s are about 4.2 times larger. The earnings of women with COD are about 2.8 times larger when they are in their mid-40s compared with what they earn at age 20. However, women without COD earn 3.2 times more in their mid-40s than they do at age 20.