Canadians need the skills that tomorrow’s economy requires if Canada is to compete and prosper. And they need to be able to use them. This means high-performing education and training systems, supports for lifelong learning, and creating good jobs. Canada’s long-term prosperity depends on our education systems supporting lifelong learning, so that Canadian workers can adapt as the economy changes.
The quality of people’s employment is an important indicator of quality of life, a core building block for creating shared prosperity. There are many facets to quality of work, which can include regular work hours, opportunities to move from temporary to permanent employment, and access to benefits. A key element associated with poor job quality is low pay.
Canada ranked 19th out of 25 OECD countries reporting data on incidence of low-wage work in 2021.
Canada’s incidence of low-wage work was 19.5% in 2021.
OECD average on incidence of low-wage work.
Threshold: The OECD average for incidence of low-wage work was 13.8% in 2021.
Canada’s level of low-wage work increased in 2021 and low-wage work remains more common in Canada than in peer OECD countries. Demand for low-wage work continued to grow in 2022 and 2023, with employers increasingly relying on temporary foreign workers to fill such jobs. With rising inflation, Canadians working in low-wage jobs are most impacted and face increasing challenges with affording essentials, including housing, and maintaining an adequate standard of living.
Broad employment is needed for Canada’s businesses to thrive, for household incomes to rise, for the effects of population aging to be mitigated and for tax revenues needed to support essential services for a growing population.
Canada ranked 12th out of 38 OECD countries in 2022 on its employment rate.
Canada’s employment rate was 75.6% in 2022.
Top 10 OECD countries on employment rate.
Threshold: 10th in the OECD had an employment rate of 76.8% in 2022.
Canada saw continued increases in its employment rate in 2022, growing faster than the OECD average for the previous two years. Employment growth has helped to address challenges related to unmet labour demand. An employment rate that remains stable as the population grows indicates employment growth is keeping pace. However, the employment rate fluctuated in 2023. Additionally, equity-seeking groups are more likely to have challenges accessing employment. This includes Canadians experiencing disabilities who had employment rates much lower than those without disabilities in 2022. Increasing employment opportunities for underrepresented groups will be critical to support future growth and prosperity.
A growing Canada must fully support and harness the talents and energy of its young people to build shared prosperity. Youth who are not in employment, education or training (NEET) are at risk of being excluded from full participation in Canada’s society and economy, and of experiencing negative long-term economic and social outcomes.
Canada ranked 17th out of 34 OECD countries on youth NEET rate in 2022.
Canada’s youth NEET rate was 12.8% for 20- to 24-year-olds in 2022.
Top 10 OECD countries with lowest youth NEET rate.
Threshold: 10th in the OECD had a youth NEET rate of 10.8% in 2022.
The NEET rate for Canadian youth between 20 and 24 years of age improved in 2022, returning to pre-pandemic levels. However, Canada still trails many peer countries in the OECD. Canadian youth continued to face challenges in 2023, with increasing levels of unemployment, particularly for racialized groups, as well as increasing levels of involuntary part-time employment. Recent Century Initiative research highlighted that when difficult economic conditions arise, the effects on youth are long-lasting and can exacerbate challenges that increase the youth NEET rate.
Post-secondary education is often associated with the highest quality and most resilient jobs. Countries with high post-secondary attainment rates are best positioned to attract investment and highly skilled immigrants, and to drive innovation and economic growth.
Canada ranked 2nd out of 38 OECD countries on post-secondary education attainment among 25-to-34 year-olds in 2022.
67.0% of Canadians had a post-secondary education (among 25- to-34 year-olds) in 2022.
Top 5 OECD countries on post-secondary education attainment.
Threshold: 5th in the OECD had 60.0% post-secondary education attainment in 2022.
The proportion of Canadians with post-secondary education continued to increase in 2022, with Canada ranking among the top countries in the OECD. With high levels of labour demand for educated workers, post-secondary attainment is increasingly important. However, not all Canadians are able to access post-secondary education at the same level. Key groups including Indigenous people and third-generation Black Canadians had lower than average attainment levels and can experience greater barriers to access. Immigrants typically have high levels of post-secondary educational attainment as education is a key part of the selection criteria in Canada’s immigration system and, as a result, immigrants have helped to boost the overall attainment rate in Canada.
A strong education system will attract people to Canada and form a solid foundation to prepare youth to participate in society and the economy. Performance among secondary school students in reading, science and math reflects the quality, equity and effectiveness of Canada’s education systems and high performance is more likely to lead to education and labour market success.
Canada ranked 4th out of 37 OECD countries in 2022 on performance in reading, science and math among 15-year-olds.
Canada had an average score of 506 in 2022 across reading, science and math.
Top 10 OECD countries on performance in reading, science, and math among 15-year-olds.
Threshold: 10th in the OECD had an average score of 494 for reading, science and math in 2022.
Canada continues to rank among the top OECD countries on its secondary school educational performance in reading (5th), science (4th) and math (5th). At the same time, Canada’s scores declined between 2018 and 2022 across all topic areas, most significantly in math. However, similar declines were observed across most OECD countries in 2022, with average student performance on a downward trajectory overall. Immigrant students in Canada were found to have higher average scores compared to non-immigrants in reading and math. Some provinces experienced a more significant drop compared to others, including in Atlantic Canada. While the pandemic was highlighted as a factor behind declining performance, countries including Canada were trending downward on performance even before the pandemic.
