Manitoba Labour Market Occupational Forecasts 2016-2022 SUMMARY FINDINGS The findings in this report are based on labour market supply and demand projections for Manitoba occupations at the one-digit 2011 National Occupational Classification (NOC) level. manitoba.ca/lmi
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Manitoba Labour Market Occupational Forecasts
2016-2022SUMMARY FINDINGS
The findings in this report are based on labour market supply and demand projections for Manitoba occupations at the
one-digit 2011 National Occupational Classification (NOC) level.
manitoba.ca/lmi
Page iManitoba Labour Market Occupational Forecasts 2016-2022
TABLE OF CONTENTSPREFACE .............................................................................................................................................................. 1
2.3 National and Provincial Labour Markets: Current Status ............................................................. 29
2.3.1 National Labour Market ................................................................................................................... 29
2.3.2 Manitoba’s Labour Market .............................................................................................................. 29
2.4 Population .......................................................................................................................................... 31
CHAPTER 3: SECINC FORECASTING MODEL ............................................................................................34
3.1 Model Summary of Methodology and Assumptions .....................................................................34
Page ii Manitoba Labour Market Occupational Forecasts 2016-2022
Appendix 1: Components of Manitoba’s Future Labour Force, 2015 to 2022 .............................................36
Appendix 2: Detailed Occupation Summary One-digit National Occupational Classification (NOC) 2011 level, Supply and Demand 2015 to 2022 ...................................... 38
Appendix 3: Job Openings at Three-digit NOC level, Total 2016 to 2022 ................................................... 44
Appendix 4: Job Openings and Labour Market Tightness at the Four-digit NOC level, 2016 to 2022 .....50
CHART LIST
Chart 1: Manitoba Labour Demand – 2016 to 2022 ......................................................................................7
Chart 2: Total Job Openings by Source – 2016 to 2022 .................................................................................8
Chart 3: Occupation Groups (One-digit NOC) by Job Openings, Replacement and Expansion Demand – 2016 to 2022 .................................................................10
Chart 4: Manitoba Job Openings by Skill Level – 2016 to 2022 .................................................................. 14
Chart 5: Manitoba Labour Force, Estimated and Projected– 2015 to 2022 ............................................... 18
Chart 6: Manitoba Estimated and Projected Labour Force Growth – 2015 to 2022 .................................. 19
Chart 7: Manitoba Labour Force Participation Rate, Estimated and Projected – 2015 to 2022 ............... 19
Chart 8: Sources of Labour Force Change, Manitoba – 2015 to 2022 ........................................................ 21
Chart 9: Participation Rate vs. Unemployment Rate, Manitoba – 2015 to 2022 ....................................... 21
Chart 10: Manitoba Population, Estimated and Projected – 2015 to 2022 .................................................. 32
Chart 11: Manitoba Age Distribution, Estimated and Projected – 2015 to 2022 ......................................... 33
Chart 12: Manitoba Age Distribution Change – 2015 to 2022 ...................................................................... 33
Page iiiManitoba Labour Market Occupational Forecasts 2016-2022
TABLE LIST
Table 1: Manitoba Job Openings by One-digit NOC and Source, 2016 to 2022 ........................................11
Table 2: Manitoba Job Openings by Two-digit NOC and Source, 2016 to 2022 ....................................... 12
Table 3: Manitoba Job Openings by NOC Skill Level Requirements, 2016 to 2022 .................................. 15
Table 4: Top Occupations by job openings and sector, 2016 to 2022 ........................................................ 16
Table 5: Labour Demand and Supply Gap Indicators, 2015 to 2022 ..........................................................22
Table 6: Occupations experiencing Labour Market Tightness, 2016 to 2022 ............................................ 25
Table 8: Manitoba Labour Force Statistics (Working Age Population Age 15+), 2011 to 2015 .................. 31
Page 1Manitoba Labour Market Occupational Forecasts 2016-2022
PrefaceThe Manitoba Labour Market Occupational Forecasts Report is produced by Manitoba Growth, Enterprise and Trade, with guidance from the Minister’s Advisory Council on Workforce Development (MACWD). We acknowledge the assistance, feedback and support from other Manitoba government departments consulted, as well as the external stakeholders who played a role in validating results.
We would like specifically to acknowledge the assistance of the Alliance of Manitoba Sector Councils (AMSC), Manitoba Bureau of Statistics, Manitoba Hydro and the following provincial government departments: Manitoba Education and Training and Manitoba Finance.
The Manitoba Labour Market Occupational Forecasts Report 2016 to 2022 identifies expected trends for the labour market. The report helps to improve our understanding of the state of Manitoba’s labour market and the key issues involved in achieving future labour market goals. It has been developed as a tool to support workforce policy and programming. The information presented in this report provides a scenario on the future demand of occupations across industry sectors and describes the supply of workers required to meet this demand.
The labour market outlook estimates in this report are based on the work of Manitoba Growth, Enterprise and Trade with Stokes Economic Consulting (SECINC). SECINC senior economists have created an occupation model that simulates the effect of changes in market conditions and enables clients to produce an annual provincial forecast of labour market supply and demand by occupation. In 2016, SECINC used this occupation model to create a custom projection of Manitoba’s labour force, with results for the seven years between 2016 and 2022 provided in this report.
It provides a quantitative assessment of Manitoba’s occupation demand forecast and supply requirements, including new entrants, international
immigrants, interprovincial migrants and inter-occupation migrants, over the next seven years.
While the results of Manitoba’s custom projection offer an internally-consistent and comprehensive picture of the occupational labour markets across Manitoba, it is cautioned that precise conclusions should not be drawn on small samples, occupations or industry groups. Occupations with fewer people will have less reliable information than those with more people. The projection results should be used to observe general trends and relative comparisons, rather than to cite precise numerical forecasts. For example, while some Manitoba occupations are forecasted to see a higher demand for workers than others, estimates of precise numeric demand for workers in a given year of the forecast scenario should be treated with caution.
Further, while the projection provides an average of the overall Manitoba jobs outlook, it is not able to reflect granular, local level labour market realities or regional, niche labour market scenarios. Occupational demand may differ across Manitoba regions and communities. Within occupations, there may be unique conditions that are not captured in the analysis. Economic and demographic assumptions and conditions may change over time. Despite best efforts, actual conditions may differ from those presented in this report.
The Manitoba Labour Market Occupational Forecasts Report and the results of Manitoba’s custom projection are intended to complement existing work on occupation projection and forecasting, including the Canadian Occupational Projection System (COPS) and labour market forecasts prepared for particular industries by sector councils, government departments and other groups. While the approaches and purposes of various projection models may differ, Manitoba officials will continue to engage these groups to understand the differences and build consistencies where feasible.
Page 2 Manitoba Labour Market Occupational Forecasts 2016-2022
EXECUTIVE SUMMARY• The Manitoba economy will see a total of 167,700
job openings between 2016 and 2022, with 67 per cent of these openings to replace worker retirements and deaths. The forecasts predict approximately 24,000 total job openings per year.
• Manitoba’s economy will see 165,500 new workers join the labour force between 2016 and 2022, or approximately 23,600 workers a year.
• Manitoba’s unemployment rate is expected to decline from 5.8 per cent in 2016 to 5.3 per cent in 2022.
• After adjusting for inflation, Manitoba’s economy is expected to grow by an average of 1.8 per cent annually from 2016 to 2022.
• Manitoba’s labour market is expected to lift hourly labour income by an average of 2.3 per cent annually over the next seven years. Over the same period, this is expected to push up personal incomes in Manitoba by an average of 3.7 per cent annually.
Total Labour Demand
• A total of 167,700 job openings will be created between 2016 and 2022.
• Expansion demand (new jobs due to economic growth) is forecasted to create 55,000 job openings (33 per cent of the total). Replacement demand (job openings from retirements and deaths) is forecasted to create 112,700 job openings (67 per cent of the total).
• The occupation group with the most expected job openings is sales and service at 33,300 or 19.9 per cent of the total Manitoba job openings outlook.
• Job openings in business, finance and administration occupations are estimated at 26,300 or 15.7 per cent; and management occupations at 23,100 or 13.8 per cent.
• Within the sales and service occupation group, the highest number of job openings is expected for the following sub-groups: cleaners, retail salespersons, and food counter attendants, kitchen helpers and related occupations.
• For all occupation groups, except health occupations, where expansion demand is greater, replacement demand is more prominent than expansion demand over the forecast period.
• With regard to educational requirements, of the 167,700 forecasted job openings over the seven-year period, approximately 62 per cent are forecasted to require some post-secondary education and training (ex: college, university, trade certification). The remaining 38 per cent may not necessitate post-secondary training or education, but may have occupation-specific or on-the-job training requirements.
Page 3Manitoba Labour Market Occupational Forecasts 2016-2022
Total Labour Supply
• It is forecasted that there will be an additional 165,500 workers over the forecast period to offset the total labour demand.
• The additional supply is forecasted to consist of 93,400 new entrants, 38,100 net in-migrants and 34,000 net other in-mobility workers.
• With 165,500 workers joining the labour force and 112,700 people leaving due to retirements and deaths, the total labour force in Manitoba is projected to increase by 52,800 persons over the forecast period.
Gaps in Demand versus Supply
• Overall, Manitoba’s labour market is expected to remain balanced over the projection period, with the overall supply for labour adequate to meet labour demand. However, labour shortages or surpluses may exist for individual occupations and in some regions of the province.
• In each year from 2016 to 2022, labour supply exceeds labour demand by an average of 3,300 workers. While the gap is more significant between 2016 and 2018 with an average of 4,800, it closes to about 2,200 over the last four years of the forecast period, with supply estimated to outpace demand by 2,000 workers in 2022.
• Over the forecast period, total labour demand growth will outpace total labour supply growth by 2,200 workers. The unemployment rate is expected to be highest in 2016 and then continue to decrease over the forecast period as labour demand grows slightly faster than supply from 2017 onward. Overall, the unemployment rate is forecasted to decline from 5.8 per cent in 2016 to 5.3 per cent in 2022.
Page 4 Prévisions par profession pour le marché du travail du Manitoba de 2016 à 2022
RÉSUMÉ• L’économie manitobaine verra la création d’un
total de 167 700 possibilités d’emploi au cours de la période 2016-2022; 67 % de celles-ci viseront à pourvoir aux postes vacants en raison de départs à la retraite et de décès. Selon les prévisions, il y aura environ 24 000 possibilités d’emploi créées au total par année.
• L’économie manitobaine verra 165 510 nouveaux travailleurs se joindre à la population active pendant la période 2016-2022, soit environ 23 600 travailleurs par année.
• Le taux de chômage au Manitoba devrait diminuer, passant de 5,8 % en 2016 à 5,3 % en 2022.
• Après le rajustement pour l’inflation, l’économie du Manitoba devrait s’accroître environ de 1,8 % par année durant la période 2016-2022.
• Sur le marché du travail manitobain, le revenu horaire du travail devrait augmenter de 2,3 % par an en moyenne pendant les sept prochaines années. Cela devrait faire augmenter les revenus personnels au Manitoba de 3,7 % par an en moyenne durant la même période.
Demande totale de main-d’œuvre
• Au total, 167 700 possibilités d’emploi seront créées entre 2016 et 2022.
• Selon les prévisions, la demande d’expansion (nouveaux emplois découlant de la croissance économique) devrait créer 55 000 nouveaux emplois (33 % du total). La demande de remplacement (emplois créés en raison de départs à la retraite et de décès) devrait quant à elle créer 112 700 emplois (67 % du total).
• Le groupe professionnel qui devrait connaître le plus de créations d’emplois est celui de la vente et des services avec 33 300 possibilités d’emploi prévues, soit 19,9 % du total des perspectives d’emploi au Manitoba.
• En Affaires, finances et administration, on estime que 26 300 emplois (15,7 %) seront créés, ainsi que 23 100 (13,8 %) dans le secteur de la gestion.
• Au sein du groupe professionnel de la vente et des services, la plus grande création d’emploi devrait avoir lieu dans les sous-groupes suivants : nettoyeurs, vendeurs de commerce de détail et serveurs et serveuses au comptoir, aides de cuisine et personnel assimilé.
• Pour la période envisagée, la demande de remplacement est plus importante que la demande d’expansion dans tous les groupes professionnels, à l’exception de ceux du secteur de la santé où la demande d’expansion prime.
• En ce qui concerne les exigences relatives au niveau de scolarité, pendant la période de sept années envisagée, parmi les 167 700 créations d’emplois prévues, environ 62 % d’entre elles devraient nécessiter un certain niveau de formation et d’études postsecondaires (p. ex. un diplôme collégial ou universitaire ou un certificat professionnel). Les 38 % restants ne nécessiteront peut-être pas d’études ou de formations postsecondaires, mais pourraient demander une formation spécifique à l’emploi ou une formation en cours d’emploi.
Page 5Prévisions par profession pour le marché du travail du Manitoba de 2016 à 2022
Offre totale de main-d’œuvre
• Il devrait y avoir 165 500 travailleurs additionnels au cours de la période envisagée pour contrebalancer la demande totale de main-d’œuvre.
• L’offre supplémentaire de main-d’œuvre devrait se décomposer comme suit : 93 400 personnes faisant leur entrée sur le marché du travail, 38 100 personnes provenant de la migration nette et 34 000 personnes provenant de la mobilité de la main-d’œuvre nette.
• Étant donné que 165 500 nouveaux travailleurs se joindront à la population active et que 112 700 postes deviendront vacants en raison de départs à la retraite et de décès, la population active du Manitoba devrait connaître une croissance de 52 800 personnes pendant la période envisagée.
Écarts entre l’offre et la demande
• Dans l’ensemble, le marché du travail du Manitoba devrait demeurer équilibré au cours de la période envisagée, avec une offre globale de main-d’œuvre en mesure de répondre à la demande du marché du travail. Toutefois, il pourrait y avoir une pénurie ou un excédent de main-d’œuvre pour certaines professions et dans certaines régions de la province.
• Chaque année, entre 2016 et 2022, l’offre de main-d’œuvre devrait être supérieure à la demande, à raison de 3 300 travailleurs en moyenne. Bien que l’écart soit plus important entre 2016 et 2018, avec une différence de 4 800 travailleurs en moyenne, il devrait redescendre à environ 2 200 travailleurs à la fin des quatre dernières années de la période envisagée, et l’offre devrait dépasser la demande de 2 000 travailleurs d’ici 2022.
• Au cours de la période visée, la croissance de la demande totale de main-d’œuvre devrait dépasser la croissance de l’offre totale de main-d’œuvre de 2 200 travailleurs. Le taux de chômage devrait culminer en 2016, puis continuer à diminuer tout au long de la période envisagée vu que la demande de main-d’œuvre s’accroît légèrement plus vite que l’offre de main-d’œuvre à partir de 2017. Dans l’ensemble, le taux de chômage devrait baisser, passant de 5,8 % en 2016 à 5,3 % en 2022.
Page 6 Manitoba Labour Market Occupational Forecasts 2016-2022
Chapter 1: Manitoba Labour Market Outlook Summary Findings, 2016 to 2022
1.1 IntroductionIn this chapter, the summary findings from Manitoba’s custom projection are reviewed and the overall outlook for Manitoba’s labour market is presented based on a number of indicators. These include the expected number of future job openings as well as labour demand and supply by occupational group. Based on these indicators, an estimate for future training requirements and occupational and skill demands is provided.
The model used to produce Manitoba’s custom workforce outlook starts with the use of macroeconomic models of the province’s economy to create an outlook for Manitoba’s economic performance and estimates the number and sources of workers required considering the province’s expected future economic and demographic performance. It then explores possible sources for these requirements and the number of workers needed from those sources to meet these future requirements.
The possibility of labour shortages is identified by examining the supply sources to determine if it is possible to achieve the required supply from these sources. For example, the model estimates
the number of young people leaving the education system required to meet future supply needs from this source. If there is insufficient capacity to provide education and training to a sufficient number of individuals, there will be a shortage of workers.
An important difference in this approach from that adopted by other models is that the occupational projections contained in this report provide an estimated amount of immigration required to meet labour market needs, rather than setting an assumption for migration that is not directly linked to the expected future performance of the economy. Workforce demand and supply at the aggregate level adjusts over time to meet labour requirements.
The glossary of terms below describes some of the key concepts throughout the Manitoba Labour Market Occupational Forecasts report.
GlossaryJob openings = expected change in workforce demand over a specific time periodExpansion demand = determined by changes in economic performance that lead to changes in employment and the amount of excess workers required to meet normal turnover in the workforceReplacement demand = job openings created by people retiring from the labour force or dying, influenced by the aging of the populationNew entrants = people between 15 and 30 years old joining the workforce for the first time after completing their education
Deaths and retirements = these subtract from the labour forceNet in-migration = people moving into or out of a geographic area to take or find a jobNet other mobility = all other sources of labour force change, including people changing occupations, workers re-entering the labour force and changes in participation ratesNet in-mobility = net in-migration plus net other mobility, which can add to or subtract from the labour force
Page 7Manitoba Labour Market Occupational Forecasts 2016-2022
1.2 Manitoba’s Labour Demand
The outlook for labour demand in the economic model is determined by the expected growth of the economy, along with the impact of changing market conditions. For example, changes in the cost of labour relative to that for capital will have an effect on the demand for workers. Tightening labour markets raise wages relative to capital costs, causing employers to substitute capital for workers.
The model also considers the impact of migration on
economic growth and labour market activity, as well as assumptions about trend growth in productivity that impacts the need for workers.
Labour demand in Manitoba is projected to grow from 674,300 in 2016 to 724,900 in 2022 – an increase of 50,600 jobs, through economic growth. Over the forecast period, this means an estimated 7.5 per cent growth in labour demand, or an average of 1.1 per cent each year.
Thousands
730
720
710
700
690
680
670
660
650
640
Chart 1: Manitoba Labour Demand2016 to 2022
2016 2017 2018 2019 2020 2021 2022
674.3
724.9
1.2.1 Sources of Labour Demand
New jobs created as a result of economic growth are referred to as expansion demand. Expansion demand is expected to be strongest in 2018 and 2019, when it is forecasted to be 9,300 and 9,700 respectively.
In addition to the expansion demand of 55,000, people exiting the labour market on account of retirements and deaths (replacement demand) will result in an additional 112,700 job openings between
2016 and 2022. In three of the seven years over the forecast period, replacement demand is expected to be more than twice as high as the job openings expected due to expansion demand.
Overall, expansion plus replacement demand are projected to result in a total of 167,700 job openings between 2016 and 2022.
Page 8 Manitoba Labour Market Occupational Forecasts 2016-2022
Number
30,000
25,000
20,000
15,000
10,000
5,000
0
Chart 2: Total Job Openings by Source2016 to 2022
2016 2017 2018 2019 2020 2021 2022
Deaths Retirements Expansion Demand
1.2.2 Job Openings by Occupation
The occupation group with the highest number of projected job openings is sales and service at 33,300 or 19.9 per cent of the total Manitoba job openings outlook. This is followed by business, finance and administration occupations at 26,300 or 15.7 per cent; and management occupations at 23,100 or 13.8 per cent. Together, these three occupation groups account for nearly 50 per cent of total projected job openings. The occupation group with the fewest projected job openings is natural resources, agriculture and related production occupations with only 2,400 projected job openings over the forecast period.
Analysis of job openings by more detailed three–digit National Occupational Classification (NOC) codes show that within sales and service occupations, the highest number of job openings will be for the following three occupation sub-groups:
• cleaners
• retail salespersons
• food counter attendants, kitchen helpers and related occupations
Page 9Manitoba Labour Market Occupational Forecasts 2016-2022
Similarly, within the business, finance and administration occupation group, the highest number of job openings is expected for the following sub-groups:
• administrative and regulatory occupations
• general office workers
• office administrative assistants - general, legal and medical
Within management occupations, the highest number of job openings will be for the following three occupation sub-groups:
• retail and wholesale trade managers
• managers in agriculture, horticulture and aquaculture
• legislators and senior management
Refer to Appendix 3 for job openings by three-digit NOC codes, recalling the caution around interpretation of data pertaining to smaller occupation groups.
As Chart 3 illustrates, for all occupation groups except health occupations, where expansion demand is greater, replacement demand is more prominent than expansion demand over the forecast period. Approximately 67 per cent of projected new job openings are due to replacement demand (retirements and deaths), which will affect recruitment in all occupation groups. Expansion demand, or new jobs that result from economic growth, will account for 33 per cent of the 167,700 total job openings over the forecast period.
Comparing occupational groups, occupations in natural resources, agriculture and related production occupations have the highest percentage of replacement demand at 95.9 per cent, while health occupations have the lowest at 43.6 per cent. Health was the only group where expansion demand exceeded replacement demand over the forecast period.
Table 1 shows projected job openings between 2016 and 2022 for the 10 major occupation groups based on the 2011 NOC codes (one-digit level). Table 2 presents the same information by more detailed occupation groupings (NOC codes at the two-digit level).
Page 10 Manitoba Labour Market Occupational Forecasts 2016-2022
Chart 3: Occupational Groups (One-digit NOC) by Job Openings,Replacement and Expansion Demand - 2016 to 2022
0 5,000 10,000 15,000 20,000 25,000 30,000 35,000
Sales and service occupations
Business, finance and administration occupations
Management occupations
Trades, transport and equipment operators and related occupations
Occupations in education, law and social, community and government services
Health occupations
Natural and applied sciences and related occupations
Occupations in manufacturing and utilities
Occupations in art, culture, recreation and sport
Natural resources, agriculture and related production occupations
Number of Workers
Expansion Demand Replacement Demand
Page 11Manitoba Labour Market Occupational Forecasts 2016-2022
Table 1: Job openings by One-digit NOC and Source - 2016 to 2022
Expansion Replacement Total jobopenings
Replacementdemand %
Natural resources, agriculture andrelated production occupations
100 2,300 2,400 95.9%
Art, culture, recreation and sport 700 2,100 2,800 73.6%
Manufacturing and utilities 1,400 5,500 6,900 79.4%
Natural and applied sciences 3,000 5,300 8,300 63.9%
Health 11,700 9,000 20,700 43.6%
Education, law and social, community and government services
9,600 11,300 20,900 54.0%
Trades, transport and equipmentoperators and related occupations
5,300 17,600 22,900 77.0%
Management 3,400 19,700 23,100 85.2%
Sales and services 12,500 20,800 33,300 62.4%
Business, finance and administration 7,200 19,100 26,300 72.7%
Total 55,000 112,700 167,700 67.2%
Page 12 Manitoba Labour Market Occupational Forecasts 2016-2022
Table 2: Job openings by Two-digit NOC and Source - 2016 to 2022
Expansion Demand
Replacement demand
Total hiring demand
Senior management occupations 500 1,900 2,400
Middle management occupations in retail and wholesale trade and customer services
1,400 5,200 6,600
Professional occupations in business and finance 800 3,000 3,800
Administrative and financial supervisors and administrative occupations
2,600 7,100 9,700
Finance, insurance and related business administrative occupations
200 1,300 1,500
Office support occupations 2,900 5,300 8,200
Distribution, tracking and scheduling co-ordination occupations
800 2,300 3,100
Professional occupations in natural and applied sciences 1,500 2,200 3,700
Technical occupations related to natural and applied sciences
1,500 3,100 4,600
Professional occupations in nursing 4,100 3,500 7,600
Professional occupations in health (except nursing) 2,000 1,300 3,300
Technical occupations in health 2,200 1,800 4,000
Assisting occupations in support of health services 3,300 2,400 5,700
Professional occupations in education services 2,300 3,300 5,600
Professional occupations in law and social, community and government services
1,500 2,700 4,200
Paraprofessional occupations in legal, social, community and education services
2,700 2,200 4,900
Occupations in front-line public protection services 400 500 900
Care providers and educational, legal and public protection support occupations
2,700 2,600 5,300
Professional occupations in art and culture 300 700 1,000
Continued on next page.
Page 13Manitoba Labour Market Occupational Forecasts 2016-2022
Expansion Demand
Replacement demand
Total hiring demand
Technical occupations in art, culture, recreation and sport 400 1,400 1,800
Retail sales supervisors and specialized sales occupations 500 1,800 2,300
Service supervisors and specialized service occupations 2,100 2,700 4,800
Sales representatives and salespersons - wholesale and retail trade
1,600 3,600 5,200
Service representatives and other customer and personal services occupations
2,700 5,000 7,700
Sales support occupations 1,600 2,000 3,600
Service support and other service occupations, n.e.c.* 4,100 5,700 9,800
Industrial, electrical and construction trades 2,500 6,500 9,000
Maintenance and equipment operation trades 900 4,300 5,200
Other installers, repairers and servicers and material handlers
500 1,100 1,600
Transport and heavy equipment operation and related maintenance occupations
600 4,400 5,000
Trades helpers, construction labourers and related occupations
800 1,300 2,100
Supervisors and technical occupations in natural resources, agriculture and related production
200 600 800
Workers in natural resources, agriculture and related production
-400 1,000 600
Harvesting, landscaping and natural resources labourers 300 700 1,000
Processing, manufacturing and utilities supervisors and central control operators
400 1,300 1,700
Processing and manufacturing machine operators and related production workers
400 1,800 2,200
Assemblers in manufacturing 200 1,500 1,700
Labourers in processing, manufacturing and utilities 400 1000 1,400
*n.e.c. – not elsewhere classified
Page 14 Manitoba Labour Market Occupational Forecasts 2016-2022
1.2.3 Job Openings by Skills, Education and Training
It is projected that of the 167,700 forecasted job openings, approximately 103,500 positions (62 per cent) will require some post-secondary education and training (ex: college, trade certification, university).
These positions are managerial and professional occupations, classified as NOC 2011 skill level 0/A, or technical and skilled occupations at NOC 2011 skill level B.
The remaining 38 per cent of projected job openings, or 64,200 positions, may not require post-secondary
training or education, but may have occupation-specific or on-the-job training requirements. The majority of these job openings are intermediate, clerical and operator occupations (skill level C), which usually require secondary school and/or occupation-specific training. Elemental and labour occupations (skill level D), which usually require on-the-job training, are a smaller portion.
Chart 4 shows the total job openings outlook between NOC skill levels 0 and A combined, B, C and D for 2016 to 2022.
Chart 4: Manitoba Job Openings by Skill Level2016 to 2022
46,300,28%
51,200, 31%
52,300,31%
17,900, 11%
NOC O/A - Managerial and Professional Usually Requiring a University Education
NOC B - Technical and Skilled Usually Requiring College or Apprenticeship Training
NOC C - Intermediate, Clerical and Operator Usually Requiring Secondary School and/or Occupation Specific Training
NOC D - Elemental and Labouring Usually Providing On the Job Training
Page 15Manitoba Labour Market Occupational Forecasts 2016-2022
Replacement demand is projected to be similar for skill level 0/A, B and C, while expansion demand varies. Occupations in skill level D are projected to have lower replacement and expansion demand.
The largest numbers of expansion demand-driven jobs are expected in skill level B and C at 20,400 and 20,200 respectively (refer to Table 3), while the share of expansion demand-driven jobs is highest for unskilled occupations, at 40.5 per cent.
Table 3: Job openings by NOC Skill Level Requirements, 2016 to 2022
NOC Skill Levels Expansion demand
Replacement demand
Total jobopenings
Replacementdemand %
NOC 0/A - Managerial and Professional 16,000 36,300 52,300 69.5%
NOC B - Technical and Skilled 16,600 34,600 51,200 67.6%
NOC C - Intermediate, Clerical and operator
15,200 31,100 46,300 67.2%
NOC D - Elemental and Labouring 7,200 10,700 17,900 59.5%
Total 55,000 112,700 167,700 67.2%
1.2.4 High-demand occupations by Industry Sector
Manitoba’s occupational forecasting model estimates the number and sources of workers required to address the expected future economic and demographic performance of the province through the application of macroeconomic models. The projected demand for workers is also impacted by changing market conditions, for example the cost of labour relative to that for capital.
Table 4 shows the occupations in each industry sector with the highest number of expected job openings created over the forecast period through both changes in economic performance (expansion demand) and through normal turnover in the workforce through retirements and deaths (replacement demand).
Readers are cautioned against drawing precise conclusions based on individual occupations or industry groups. The projection results should
instead be used to observe general trends and relative comparisons, rather than to cite precise numerical forecasts.
While these projections provide an average of the overall Manitoba jobs outlook, they are not able to reflect granular, local level labour market realities or regional, niche labour market scenarios. Occupational demand may differ across Manitoba regions and communities.
Finally, there may be unique conditions within specific occupations that are not captured in the analysis, and economic and demographic assumptions and conditions may change over time.
Refer to Appendix 4 for job openings by four-digit NOC codes, recalling the caution around interpretation of the data, particularly for smaller occupation groups.
Page 16 Manitoba Labour Market Occupational Forecasts 2016-2022
Table 4: Top Occupations by job openings and sector, 2016-2022
Sector OccupationNumber of
Job Openings 2016-2022
Management
Retail and wholesale trade managers 4,200
Managers in agriculture 3,500
Restaurant and food service managers 1,100
Construction managers 900
Manufacturing managers 900
Business, Finance and
Administration
Administrative assistants 3,300
General office support workers 3,000
Administrative officers 2,900
Accounting and related clerks 1,700
Financial auditors and accountants 1,500
Natural and applied
sciences and related occupations
Information systems analysts and consultants 800
Civil engineers 500
Computer programmers and interactive media developers 500
Computer network technicians 500
Electronic service technicians (household and business equipment) 400
Health occupations
Registered nurses and registered psychiatric nurses 7,500
Nurse aides, orderlies and patient service associates 4,900
Licensed practical nurses 1,100
Specialist physicians 800
Pharmacists 600
Occupations in education,
law and social, community and
government services
Elementary school and kindergarten teachers 3,100
Early childhood educators and assistants 2,400
Elementary and secondary school teacher assistants 2,400
Social and community service workers 2,100
Home support workers, housekeepers and related occupations 1,900
Continued on next page.
Page 17Manitoba Labour Market Occupational Forecasts 2016-2022
Sector OccupationNumber of
Job Openings 2016-2022
Occupations in art, culture, recreation and
sport
Graphic designers and illustrators 400
Program leaders and instructors in recreation, sport and fitness 400
Producers, directors, choreographers and related occupations 200
Musicians and singers 200
Interior designers and interior decorators 200
Sales and service
occupations
Retail salespersons 4,200
Light duty cleaners 3,200
Food counter attendants, kitchen helpers and related support occupations
2,800
Janitors, caretakers and building superintendents 2,600
Cooks 2,100
Trades, transport and
equipment operators
and related occupations
Carpenters 2,500
Transport truck drivers 2,200
Construction trades helpers and labourers 1,700
Automotive service technicians, truck and bus mechanics and mechanical repairers
1,200
Material handlers 1,100
Natural resources, agriculture and related occupations
Landscaping and grounds maintenance labourers 1,000
General farm workers 500
Underground production and development miners 300
Supervisors, mining and quarrying 200
Contractors and supervisors, landscaping, grounds maintenance and horticulture services
100
Page 18 Manitoba Labour Market Occupational Forecasts 2016-2022
1.3 Manitoba’s Labour Supply
1.3.1 Labour Force Outlook
The occupational forecasting model uses population estimates produced by the Manitoba Bureau of Statistics combined with projected age-specific labour force participation rates produced by SECINC to project Manitoba’s labour force. The model estimates Manitoba’s labour force at 674,100 people in 2015.
Manitoba has observed growth in the labour force over the past 10 years and is projected to see continued growth throughout the seven-year projection period.
Over the forecast period, Manitoba’s labour force is expected to grow by 52,800 people (7.8 per cent) to 726,900 people by 2022. This represents an average annual growth rate of 1.1 per cent, or an average of 7,500 persons per year.
Within the projection period, Manitoba’s labour force is expected to grow at the lowest rate in 2016 (0.8 per cent), before increasing and stabilizing between 1.0 and 1.2 per cent over the remainder of the forecast period. This slowed growth compared to previous years reflects an increase in the proportion of population in older age groups with lower labour force participation rates.
Thousands
740
730
720
710
700
690
680
670
660
650
640
Chart 5: Manitoba Labour Force,Estimated and Projected - 2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
674.1
726.7
Page 19Manitoba Labour Market Occupational Forecasts 2016-2022
Per cent
2.5
2.0
1.5
1.0
0.5
0.0
Chart 6: Manitoba Estimated and Projected Labour Force Growth - 2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
1.8
1.0
1.3.2 Labour Force Participation
Manitoba’s overall labour force participation rate is projected to decline by 0.2 percentage points between 2016 and 2022, to 67.8 per cent.
This slight decline reflects the combined effects of a recent downward trend in participation for more than half of the age-sex cohorts, particularly among age groups with the highest participation, and the increasing proportion of elders in the labour force population.
Per cent68.4
68.3
68.2
68.1
68.0
67.9
67.8
67.7
67.6
67.5
Chart 7: Manitoba Labour Force Participation Rate, Estimated and Projected - 2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
68.3
67.8
Page 20 Manitoba Labour Market Occupational Forecasts 2016-2022
1.3.3 Sources of Labour Supply
Over the forecast period, Manitoba’s labour market supply outlook estimates that approximately 93,400 new entrants, 38,100 net in-migrants and 34,000 net other mobility workers (for a total 165,500 workers) will be required to replace people leaving the labour force due to deaths or retirements and to fill new jobs created as a result of economic growth. With 165,500 workers joining the labour force and 112,700 people leaving due to retirements and deaths, the total labour force in Manitoba will increase by 52,800 persons.
The components of the projected change in Manitoba’s labour force are:
• new entrants (persons entering the labour force for the first time), which add to the labour force
• deaths and retirements, which subtract from the labour force
• net in-mobility (net in-migration plus net other mobility), which can add or subtract from the labour force
Net in-migration refers to people moving into or out of a geographic area to take or find a job.
Net other mobility includes all other sources of change in the labour force, such as people changing occupations, workers re-entering the labour force (ex: after an illness) and changes in participation rates caused by increased wage rates or social factors (ex: increased desire for people to enter the labour force).
New entrants remain a consistent and significant component of the estimated supply over the forecast period, averaging about 13,300 per year. The labour force is projected to lose approximately 16,100 workers per year because of retirements and deaths. As a result, a steady growth in net in-migration over the period is projected to be required to meet job opening requirements.
Chart 8 shows a decrease in net other mobility between 2015 and 2016. This decrease can be explained by a previous drop in participation rate between 2013 and 2014, resulting in a decrease in the number of persons in the labour force by almost 5,000. In 2015, the participation rate increases back to previous levels by bringing workers back into the labour force through a significant increase in net other mobility. Chart 9 illustrates this relationship between labour force participation rates and unemployment rates.
Page 21Manitoba Labour Market Occupational Forecasts 2016-2022
Number of Workers
30,000
20,000
10,000
0
-10,000
-20,000
Chart 8: Sources of Labour Force Change2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
New EntrantsNet In-MigrationNet Other In-Mobility Retirements & Deaths Labour Force Change
Per cent Per cent
68.4
68.2
68.0
67.8
67.6
67.4
6.0
5.8
5.6
5.4
5.2
5.0
Chart 9: Participation Rate vs. Unemployment Rate2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
Participation Rate (%) Unemployment Rate (%)
Page 22 Manitoba Labour Market Occupational Forecasts 2016-2022
1.4 Gaps: Labour Demand less Labour Supply
Overall, the labour market is expected to remain generally balanced over the projection period, meaning the supply of labour will be adequate to meet labour demand. However, labour shortages may exist for certain occupations and in local labour markets.
Table 4 shows the gap between labour demand and labour supply for each year between 2015 and 2022.
In all seven years of the projection period, labour supply in Manitoba is expected to be higher than labour demand. This gap between the supply of
labour and labour demand averages 3,450 workers per year. Over the last four years of the forecast period, the gap will close significantly, from an average of 4,675 between 2015 and 2018 to 2,225 for the last four years.
For each year of the forecast period, the gap between labour demand and supply as a percentage of the total labour force is small (ranging from 0.3 to 0.8 per cent) and therefore, the labour market is expected to remain balanced.
Table 5: Labour Demand and Supply Gap Indicators, 2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
Labour Force demand 669,900 674,300 682,100 691,300 701,000 709,300 717,600 724,900
Labour Force Supply 674,100 679,700 687,100 695,400 703,800 711,700 719,400 726,900
Labour markets are expected to remain balanced for each of the 10 major occupational groups (one-digit NOC level). When considered as a percentage of the total labour force, the gaps between labour demand and supply in each year range from 0.0 per cent to 0.2 per cent for each of the groups.
For almost all occupation groups, supply exceeds demand in all years of the projection period. Only Health occupations are expected to see demand levels slightly higher than the forecasted supply over the last two years of the forecast.
It should be noted that this does not mean that shortages or surpluses may not exist for individual occupations within the broad occupation groups.
The labour supply forecasting model is based on the assumption that the labour force for an occupation in the long run will be determined by the demand for the occupation. Labour supply adjusts to labour demand in various ways, including inter-occupation mobility and increased labour force participation rate (net other mobility).
Between 2016 and 2022, net other mobility is forecasted to add 34,000 persons to Manitoba’s labour supply. In other words, the model forecasts that the increased demand for labour over the next few years will be partly met with an increase in the number of Manitobans re-entering the labour force (higher labour force participation rates) and Manitobans moving to occupations in higher demand.
If these assumptions are not met, more labour shortages could be expected.
Page 23Manitoba Labour Market Occupational Forecasts 2016-2022
Occupations with significant labour market tightness
MethodologyThe occupational model used to create Manitoba’s labour market occupational forecasts estimates the supply requirements needed to meet the demand for individual occupations. Accordingly, there are no significant shortages or persistent surpluses for the occupations in these projections and analysts should examine the estimated requirements to see if it is possible to achieve them.
To assist in identifying potential areas of future labour market tightness, a ranking approach is employed to provide an indication of the “relative” risk or difficulty across occupations of obtaining their estimated supply requirements.
This relative risk is referred to as a supply risk and originates from the fact that the supply requirements estimated by the models may not be forthcoming in reality.
This ranking is not intended to indicate that an occupation with a relatively high supply risk will not obtain the required supply. Rather, it signals that there is a higher risk relative to other occupations.
Four ranking measures are used to determine the supply risk. One focuses on demand, one on supply, one on the demand supply balance and the other is a combined rank that is a weighted average of the other ranks.
The demand measure focuses on “demand pressure” as measured by the number of job openings for an occupation divided by the size of the occupation’s labour force in the previous year, which is similar to the labour force growth rate for the occupation. If the demand growth for an occupation is high relative to that for other occupations, it will receive a higher rank as it will likely require relatively more effort to find the workers needed.
The supply measure focuses on migration and is measured as the ratio of required net in-migration
and the occupation’s labour force in the previous year. Occupations where supply requirements are largely met through migration may be at risk if these requirements are not accommodated through additional immigration or if Canadian workers do not wish or are not available to move to the province.
The third measure is the difference between an occupation’s actual and normal unemployment rate, the unemployment rate gap. Occupations with negative unemployment rate gaps reflect tighter labour markets and vice-versa.
There are three ranks numbered from one-to-three for each measure:
• Rank of 1: a situation where there are more than sufficient workers available to meet demand. Demand pressure is lower than normal, there is less reliance than normal on migrants to fill jobs, and the unemployment rate is noticeably higher than the normal rate. It should be relatively easy to find workers;
• Rank of 2: represents a normal market situation where organizations can rely on their traditional methods for obtaining workers. Demand pressure is normal, organizations may have to rely on migrants to meet supply, but this situation is not different from what they have faced in the past, and the unemployment rate gap is small; and
• Rank of 3: a type of market situation where demand pressure is quite strong, more emphasis than normal must be placed on organizations to access migrants to meet their worker requirements and the unemployment rate is below its normal rate. It will be relatively more difficult to find workers.
It should be noted that it is important to consider the size of the occupations when using the supply risk results, as occupations with small sizes can produce ranks that may be misleading.
For example, an occupation with a labour force of only 20 that sees its labour force increase to 40 shows a 100 per cent increase as the demand pressure
Page 24 Manitoba Labour Market Occupational Forecasts 2016-2022
measure. This would certainly put it near the top of occupations for supply risk through the demand pressure rank.
The data provided in this report is accordingly restricted to occupations where the employment is 150.
ResultsLabour market tightness may exist temporarily in an occupation for only a few consecutive years, for example because of anticipated major projects, and may disappear after completion. In some occupations however, labour market tightness may persist over a longer period of time, potentially due to rising numbers of retirements and deaths as the population ages. In order to identify occupations where more research may be required to address potential long-term supply risks, occupations with a weighted average combined rank of three are highlighted in Table 5. For these occupations, the weighted average of the supply, demand and unemployment rate
gap measures exceeds 2.5. As noted above, only occupations with at least 150 individuals employed in 2015 have been considered for the analysis. These occupations are likely to display a higher degree of demand pressure and relatively higher difficulty filling job openings over the forecast period compared to other occupations.
In terms of industry sectors, health occupations display the highest degree of relative labour market tightness over the forecast period, with 52.8 per cent of occupations showing high demand pressures in at least one year, followed by natural and applied sciences and related occupations (43.5 per cent) and trades, transport and equipment operators and related occupations with 20.0 per cent.
Refer to Appendix 4 for labour market tightness rankings for each of the seven years of the forecast period by four-digit NOC codes, recalling the caution around interpretation of the data.
Page 25Manitoba Labour Market Occupational Forecasts 2016-2022
Table 6: Occupations experiencing Labour Market Tightness, 2016 to 2022
Occupational group Occupation
Business, finance and administration
Court officers and justices of the peace
Health information management occupations
Court reporters, medical transcriptionists and related occupations
Natural and applied sciences
Geological and mineral technologists and technicians
Construction estimators
Health
Registered nurses and registered psychiatric nurses
Allied primary health practitioners
Medical laboratory technologists
Respiratory therapists, clinical perfusionists and cardiopulmonary technologists
Medical radiation technologists
Cardiology technologists and electrophysiological diagnostic technologists, n.e.c.
Licensed practical nurses
Nurse aides, orderlies and patient service associates
Education, law and social, community and government services
Journalists
Sales and service
Travel counsellors
Ground and water transport ticket agents, cargo service representatives and related clerks
Casino occupations
Dry cleaning, laundry and related occupations
Trades
Telecommunications line and cable workers
Telecommunications installation and repair workers
Carpenters
Railway carmen/women
Railway and yard locomotive engineers
Manufacturing and Utilities
Camera, platemaking and other prepress occupations
Electronics assemblers, fabricators, inspectors and testers *n.e.c. – not elsewhere classified
Page 26 Manitoba Labour Market Occupational Forecasts 2016-2022
Chapter 2: Economic and Labour Market Outlooks
2.1 IntroductionEconomic and demographic variables such as gross domestic product (GDP), domestic consumption, commodity prices, population and immigration serve as inputs for the occupational model that is used to generate custom occupational forecasts for Manitoba. This chapter provides a review of the economic and labour market outlook from internal and external forecasting sources.
2.2 International, National and Provincial Economies
2.2.1 International and National Outlook
Major macroeconomic realignments are affecting prospects differentially across countries and regions, according to the International Monetary Fund’s World Economic Outlook. This includes the slowdown and rebalancing in China; a further decline in commodity prices, especially for oil, with sizable redistributive consequences across sectors and countries; a related slowdown in investment and trade; and declining capital flows to emerging market and developing economies. These realignments—together with a host of noneconomic factors, including geopolitical tensions and political discord—are generating substantial uncertainty.
On the whole, they are consistent with a subdued outlook for the world economy—but risks of much weaker global growth have also risen.
The estimated growth potential of the global economy has been revised down to about 3.25 per cent on average over the projection horizon. The revision primarily reflects weaker-than-expected investment in emerging market economies, particularly those that export oil. The World Bank has also lowered its assessment of the growth rate of potential output for the US economy to about 1.75 per cent, reflecting productivity growth that has remained lower than anticipated. While US productivity growth is expected to improve gradually, the ongoing weakness suggests a softer trend than previously estimated.
The persistent sluggishness in global trade and investment in recent years may have also weighed on global productivity growth.
Total GDP growth is projected to firm over 2016, bolstered by underlying strength in labour markets and consumer confidence, low oil prices and still-accommodative monetary policy. The US labour market averaged monthly job gains of over 200,000 during the first quarter of 2016, a strong pace that has been maintained since March 2014. There are signs that the strength in employment growth is now helping draw workers back into the labour market: since September 2015, the participation rate has risen steadily, reversing some of the decline seen since the 2007–09 global financial and economic crisis.
The Canadian economy continues to undergo complex adjustments to the declines in global commodity prices and in Canada’s terms of trade. Contraction of business investment in the energy sector has been an important drag on economic activity.
The reorientation toward the non-resource sectors is being supported by the ongoing expansion in the United States, the past depreciation of the Canadian dollar and accommodative monetary and financial conditions.
Page 27Manitoba Labour Market Occupational Forecasts 2016-2022
The complex adjustment will have important consequences for the growth of potential output for the next several years. The Bank’s estimate for potential output growth is now materially lower than previously estimated.
According to the Bank of Canada Outlook, real GDP is estimated to have increased by 2.8 per cent in the first quarter of 2016 but is expected to moderate in the second quarter. Subsequently, growth is expected to strengthen as the drag from the resource sector wanes and the expansion of economic activity in the non-resource sector asserts itself as the dominant trend. Real GDP is expected to grow by 1.7 per cent in 2016, 2.2 per cent in 2017 and 2.0 per cent in 2018.
The projection for economic activity through 2016 and 2017 has been revised up. Slower foreign demand growth, the higher Canadian dollar and a downward revision to business investment all have negative impacts on the outlook, but are more than offset by the positive effects of the fiscal measures announced in the federal budget in March.
2.2.2 Provincial Review and Outlook
Economic forecasts for Manitoba and Canada were also revised down from those that prevailed earlier this year. The latest Manitoba Finance Survey of Economic Forecasts shows that Manitoba’s real GDP is expected to increase by 2.2 per cent in 2016, down 0.1 per cent from the January 7, 2016 forecast, and ranking Manitoba third strongest among provinces. Canadian growth was expected to increase 1.7 per cent, down from 1.9 per cent previously. In 2017, Manitoba real GDP is projected at 2.4 per cent, above Canada’s growth at 2.2 per cent.
Employment is forecast to grow by 0.4 per cent in 2016, ranking Manitoba fourth best among the provinces. Canada’s employment is expected to increase by 0.7 per cent. In 2017, Employment is forecast to grow by 1.1 per cent, greater than Canada’s 1.0 per cent, ranking Manitoba second and tied with Ontario.
In 2016, Manitoba’s unemployment rate is forecast at 5.8 per cent, the lowest in Canada and tied with Saskatchewan. In 2017, unemployment is forecast at 5.5 per cent, ranking Manitoba first in Canada followed by Saskatchewan.
2.2.3 Major Construction and Investment Projects in Manitoba
According to the Conference Board of Canada, mining and construction will cool off this year, while manufacturing will advance at a stable pace. Between 2015 and 2016, Statistics Canada data indicates an increase of 3.4 per cent in overall capital spending, an increase of 7.0 per cent in non-residential construction, and a decrease of 4.5 per cent in machinery and equipment expenditures. Despite the opening of the Reed and Lalor mines in 2015, metal mining production declined last year, but is forecast to stabilize this year and advance again in 2017.
Capital investment in the extractive sector grew sharply at a compounded annual growth rate of approximately 17 per cent between 2006 and 2013 as a result of the rapid rise in commodity prices. Reflecting the recent slump in commodity prices, capital investment in the mining sector has fallen considerably.
According to Statistics Canada’s latest Capital and Repair Expenditures Survey, businesses in the mining sector expect to spend $362.3 million in capital expenditures in 2016, 65 per cent lower than the $1,030 million spent in 2014.
In the Throne Speech of May 2016, the Government of Manitoba noted its commitment to:
• advocate for focused engagement and specific funding commitments from our partners in the federal government, to ensure the proposed changes to the Air Canada Public Participation Act provide a net investment and job creation benefit for Manitoba’s aerospace industry
• continue consultations with the private sector towards improving educational opportunities and jobs for Manitobans
Page 28 Manitoba Labour Market Occupational Forecasts 2016-2022
• continue municipal partnerships with the City of Winnipeg and municipalities from across Manitoba to provide them with a fair say on strategic infrastructure investments
• ensure long-term, assured and targeted infrastructure investments of no less than $1 billion per year while making flood protection a top priority, and work with the federal government on flood protection infrastructure, beginning with the outlet needed to alleviate flooding around Lake Manitoba.
• increase investments in the tourism industry and launch Yes! North to promote partnerships needed to attract new companies, assist entrepreneurs, and foster quality jobs and a stronger economy in northern Manitoba
• focus on the sustainable development of our natural resources, including forestry and mining, to pursue additional opportunities for balanced growth and job creation
The performance of the economy, as measured by various economic and demographic indicators, is the main driver of the SECINC occupation model’s workforce outlook. Economic growth drives labour demand, while population and age distribution have influence over labour supply.
Projected growth rates from 2016 to 2022 for some of the key indicators utilized to produce Manitoba’s custom projection are shown in Table 5. Manitoba Growth, Enterprise and Trade, the Manitoba Bureau of Statistics (MBS), Manitoba Finance, Manitoba Education and Training and Manitoba Hydro assisted with the verification of macro-economic data utilized by the SECINC model to produce this labour market projection.
Real GDP ($Millions) 1.8 1.9 1.5 1.3 2.0 1.9 2.0 2.0
Hourly Labour Income 3.3 1.8 2.0 2.5 2.6 2.6 2.5 2.4
Real Hourly Labour Productivity -0.3 1.4 0.5 0.0 0.5 0.6 0.7 0.9
Retail Sales 0.4 0.6 3.0 2.8 3.3 3.6 4.0 3.5
Personal Income 5.0 3.2 3.3 3.4 3.8 4.0 4.1 4.0
Page 29Manitoba Labour Market Occupational Forecasts 2016-2022
2.3 National and Provincial Labour Markets: Current Status
2.3.1 National Labour Market
The Canadian economy initially bounced back quickly from the recession as a result of stimulus programs and a rebound in commodity prices. However, as momentum in the global economy waned, and oil prices fell in 2014 and remain low, Canadian real GDP growth slowed to 1.2 per cent in 2015, the slowest pace recorded since 2009.
As a consequence of cutbacks in oil and gas-related production and capital investment, the labour market softened, with the nationwide unemployment rate remaining elevated above 7.0 per cent. The Bank of Canada’s Business Outlook Survey points to only modest recovery in hiring and wage gains going forward.
Measures of labour market health indicate continued slack. Canada’s unemployment rate is expected to be 7.1 per cent in 2016 and 7.0 per cent in 2017. Contributing conditions are: the prevalence of involuntary part-time employment, long-term unemployment and the absence of wage pressures, which all suggest that labour is being underutilized.
Although national employment continues to increase, adjustment in the labour market is ongoing. British Columbia and Ontario have shown strong net job growth. In the service sector, strong employment growth has supported solid growth in total labour input. In goods-producing industries, including in the higher-paying mining, oil and gas sector, employment has been relatively weak.
Statistics Canada’s latest Capital and Repair Expenditures Survey indicates continuing weakness in investment will dampen the economy in 2016.
Led by an anticipated 23.1 per cent decline in the mining, quarrying, and oil and gas extraction sector, total private capital expenditures are projected to decline 9.3 per cent this year. However, an anticipated
6.5 per cent increase in public capital expenditures is projected to moderate total investment declines to 4.4 per cent.
The U.S. employment situation continues to improveAccording to the U.S. Bureau of Labor Statistics, nonfarm employment continued to expand by 2.7 million jobs in 2015, after adding 3.0 million in 2014. Over the year, service-providing industries led job growth, with the largest gains occurring in professional and business services, health care, and leisure and hospitality. Among goods-producing industries, construction accounted for most of the employment gains, while mining lost jobs. The average unemployment rate in 2015 was 5.3 percent, the lowest in five years. The first quarter of 2016 showed an average unemployment rate of 4.9 per cent.
Falling energy prices hurt employment in mining and related industries. Lower energy prices combined with relatively stagnant consumer prices to help boost both real personal income and consumer expenditures on goods and services. Home sales strengthened over the year, helping to lift employment in construction and related industries.
2.3.2 Manitoba’s Labour Market
Manitoba has the most stable labour market in Canada with modest changes in annual growth. Manitoba’s unemployment rate is generally one of the three lowest among provinces.
In addition, over the past seven years, the labour market was balanced with new jobs created at about the same rate as new workers entering the market. This balance is reflected in a stable unemployment rate within a narrow range.
In the first four months of 2016, the labour force averaged 673,100 workers. Over the same period, the unemployment rate averaged 6.1 per cent, second lowest among provinces and below the 7.2 per cent national average.
Page 30 Manitoba Labour Market Occupational Forecasts 2016-2022
As a result of the slow growth in international and interprovincial demand for goods and services, employment has declined from an average of 636,200 jobs in 2015 to a 12-month rolling average of 634,700 jobs in April 2016, which represents a decline of 1,500 jobs. The service sector is the most impacted and has lost 2,700 workers. This includes 1,600 jobs lost in the wholesale and retail trade sector, and 1,200 jobs lost in the transportation and warehousing sector.
Low energy prices have led to 12 consecutive months of job losses in Manitoba’s mining, oil and gas sector. These losses appear to have stopped in February 2016, with modest gains in March and April. Sectors showing employment gains in 2016 include: professional, scientific and technical services, construction, utilities, information and culture.
Given the slow start in 2016, the Manitoba Finance Survey of Economic Forecasts shows an expected 0.4 per cent growth in employment this year and improving to 1.1 per cent growth in 2017. The unemployment rate is expected to average 5.8 per cent in 2016 and is anticipated to fall to 5.5 per cent in 2017.
Between 2014 and 2015, Manitoba’s labour force expanded by 1.8 per cent or 12,000 persons. Over the last five years, the labour force has gained 26,700 persons, a change of 4.1 per cent.
Manitoba’s unemployment rate was 5.4 per cent in 2014 and increased to 5.6 per cent in 2015. Over the last five years, the unemployment rate has averaged 5.4 per cent, below the national average of 7.1 per cent in the same period.
In 2014, Manitoba’s employment was 626,500, and in 2015 it was 636,200. Between 2014 and 2015, employment increased by 1.5 per cent or 9,700 persons. These gains included a full-time employment increase of 8,700 persons and part-time employment gains of 1,100 persons. Over the last five years, full-time employment grew by 4.7 per cent while part-time employment increased 1.0 per cent.
Private sector job growth between 2014 and 2015 accounted for an increase of 5,000 employees compared to 4,700 in the public sector.
Manitoba’s average participation rate in 2014 increased from 67.8 per cent in 2014 to 68.3 per cent in 2015, a difference of 0.5 percentage points. Manitoba ranked third among the provinces, and above Canada’s participation rate of 65.8 per cent.
In 2015, sales and service occupations employed 24 percent of all persons working in Manitoba. The occupation group employing the second largest number of people was trade at 16 per cent, followed by business, finance and administration at 15 per cent. From 2011 to 2015, the health occupational group experienced the greatest percent change increase in employment at 11.6 per cent.
According to the Conference Board, with real GDP set to expand by 2.1 per cent this year and 2.6 per cent next year, Manitoba will continue to be a reliable source of growth in Canada. Services will see healthy increases as Manitobans are on a spending spree due to strong employment and wage gains from recent years. The province’s goods-producing industries are facing a mixed performance. Mining and construction will cool off this year, while manufacturing will advance at a stable pace.
Manufacturing will drive growth in the goods-producing sector in 2016 with a 2.6 per cent expansion. Although manufacturers will keep busy in 2017, the construction sector will be pushed to the front of the pack, as work on the Keeyask Dam and the Bipole III Transmission Reliability Project gets into full swing.
After leading the country in employment growth, Manitoba’s retail sales will increase faster than every other province in 2016, as the newly employed pick up their spending on both durable and non-durable goods. Nearly 10,000 new jobs were created in Manitoba in 2015. Job creation will not fare so well this year but will roar back in 2017 and remain respectable in the medium term.
Page 31Manitoba Labour Market Occupational Forecasts 2016-2022
Table 8: Manitoba Labour Force Statistics (Working Age Population Age 15+) - 2011 to 2015
2011 2012 2013 2014 2015
Labour Force (000s) 647.4 656.6 661.5 662.1 674.1
Employment (000s) 611.7 621.6 625.8 626.5 636.2
Participation Rate (%) 68.9 68.9 68.6 67.8 68.3
Unemployment Rate (%) 5.5 5.3 5.4 5.4 5.6
2.4 PopulationOver the past decade, Manitoba’s demographic changes have been dramatic. As of January 1, 2016, Manitoba’s total population was estimated at 1,303,896. Manitoba’s population grew by 16,209 persons (1.26 per cent) between January 2015 and January 2016.
Once again, a large portion of the province’s estimated population gain in 2015 was the result of immigration. Net international migration to Manitoba for 2015 was 13,311 individuals.
Some of the gain in the population through immigration is offset through interprovincial migration. Manitoba recorded an estimated net loss of 6,971 residents to other provinces in 2015.
Overall, Manitoba recorded a net migration gain of 10,400 people over 2015. The remaining increase of 5,800 persons was due a natural increase in population (more births than deaths).
Chart 10 shows Manitoba’s total population estimate for 2015 and annual total population projections for each year from 2015 to 2021.
According to the projections, Manitoba’s total population will increase to 1,433,900 in 2022. This represents a total gain of 119,100 people or 9.1 per cent over 2015.
Between 2016 and 2022, Manitoba’s population is projected to increase by an average of 17,000 people annually, yielding an average annual growth rate of 1.2 per cent. The Manitoba Bureau of Statistics estimates that the average annual growth rate over the previous six years, from 2007 to 2013, was 1.0 per cent. The natural increase is expected to add 46,700 people, while total net migration is expected to add 72,400 to the total population.
Page 32 Manitoba Labour Market Occupational Forecasts 2016-2022
Thousands
1,450
1,400
1,350
1,300
1,250
1,200
Chart 10: Manitoba Population, Estimated and Projected - 2015 to 2022
2015 2016 2017 2018 2019 2020 2021 2022
1314.7
1433.9
It is projected that by 2022, most age groups will record increases in their population levels relative to the 2015 estimates. As illustrated by Chart 12, the 65-plus age group is expected to show the largest gain, increasing by 43,000 (22.6 per cent).
The 35 to 44 and 25 to 34 age groups are also projected to have strong gains, with increases of 14.5 per cent and 12.2 per cent respectively. Two age groups are anticipated to record population declines over the seven-year projection period: the 45 to 54 age group is projected to decrease by 9,000 people; the 15 to 24 age group is expected to decline by 5,000 persons.
Page 33Manitoba Labour Market Occupational Forecasts 2016-2022
Thousands150
100
50
0
Und
er 1
0-4
5-9
10
-14
15-
19
20
-24
25-
29
30
-34
35-
39
40
-44
45-
49
50
-54
55-
59
60
-64
65-
69
70
-74
75-
79
80
-84
85-
89
90
+
Chart 11: Manitoba Age Distribution, Estimated and Projected - 2015 to 2022
2022 2015
Age group
Thousands
60
40
20
0
-20
Chart 12: Manitoba Age Distribution Change2015 to 2022
Age0 to 14
Age15 to 24
Age25 to 34
Age35 to 44
Age45 to 54
Age55 to 64
Age65 +
+27+19
+26
+12
+45
-3-6
Page 34 Manitoba Labour Market Occupational Forecasts 2016-2022
Chapter 3: SECINC Forecasting Model3.1 Model Summary of Methodology and Assumptions
The labour market outlook estimates in this report are based on SECINC’s occupational forecasting model, which includes macroeconomic, industrial and occupational models. These models are produced externally by senior economists at SECINC using international best practices in economic and labour market forecasting.
SECINC’s macroeconomic model incorporates certain major projects to capture current and upcoming economic activity and the subsequent labour market needs driven by these industry initiatives. For Manitoba’s custom projection, SECINC’s model used qualitative data collection, analysis and reporting by Manitoba government departments and Manitoba sector councils for proposed industry initiatives and current economic development activities.
Key economic indicators, including GDP, investment, consumer price index, income, employment, labour productivity, capital stock and housing starts are incorporated into the model. For Manitoba’s custom projection, GDP and employment growth assumptions supplied by SECINC are aligned, where feasible, with Manitoba Finance’s averaging of key private sector economic forecasts. Manitoba’s custom projection incorporates over 1,500 variables.
SECINC’s macroeconomic model incorporates 70 individual industry clusters. Economic and industry growth drive employment demand for each unique industry. Occupational employment demand is based on expected employment in the industries with these occupations.
Occupational labour supply and its components of change are primarily driven by demographic shifts and economic performance. For Manitoba’s custom projection, labour force participation rates were forecasted based on assumptions about Manitoba’s labour force supply, including detailed demographic modelling by age and sex.
The SECINC occupational model is based on the assumption that, in the long run, the labour force for an occupation will be determined by the demand for that occupation. In the short run, there will be deviations between the growth rate in supply and demand because of mobility restrictions, such as the time required to attract workers to the occupation either from other occupations or through the education and training system. Deviations also occur when attempting to get workers to move from a different geographic area.
A further restriction placed on the adjustment of the labour force for an occupation is that employers requiring the occupation must compete with each other and with other occupations to gain a share of the economy’s overall labour force. The latter variable is produced in the macroeconomic models. The ability to compete for additional supply of an occupation is driven by the occupation’s share of overall labour requirements in the economy. For a given occupation, the higher its requirements compared to other occupations, the larger its share of the economy’s overall labour force.
For further information about the methodology, please contact the Labour Market Information Unit at [email protected] or 204-945-8836.
Page 35Manitoba Labour Market Occupational Forecasts 2016-2022
APPENDICES
• Appendix 1: Components of Manitoba’s Future Labour Force, 2016 to 2022
• Appendix 2: Detailed Occupation Summary One-digit National Occupational Classification (NOC) 2011 level, Supply and Demand 2016 to 2022
• Appendix 3: Job Openings at Three-digit NOC level, Total 2016 to 2022
• Appendix 4: Job Openings at Four-digit NOC level, Total 2016 to 2022
Page 36 Manitoba Labour Market Occupational Forecasts 2016-2022
Appendix 1: Components of Manitoba’s Future Labour Force, 2015 to 2022
2015 2016 2018 2020 2022 2015 to2022
Per cent Change
Demographics:
Population Level 1,314,700 1,330,800 1,364,000 1,398 1,416,100 119,100 9.1%
Natural Increase (births-deaths)
5,900 6,100 6,500 6,700 6,900 1,000 16.9%
Total net In Migration 10,500 10,000 10,300 1-,600 10,800 300 1.9%