Tuesday, October 27, 2020

Research: Interjurisdictional employment in Canada, 2002-2016

Researchers at Memorial University has issued a new report analyzing tax data on inter-jurisdictional employment in Canada between 2002 and 2016. There were approximately 409,000 Canadians who worked outside of their home jurisdiction in 2016. In this study, a jurisdiction is a province or a territory (due to the granularity of the data available).

Men represented an average of 62% of interjurisdictional workers, and around 45% of such workers were between the ages of 25 and 44. The second largest group swing from 18- to 24-year-olds pre-2008 to 45 and older workers afterward.

The top industries in which inter-jurisdictional employment occurred were health care and construction (this varied over time and by jurisdiction). Ontario and Alberta were among the jurisdictions most likely to receive interjurisdictional workers.

Atlantic Canada, Manitoba and Saskatchewan were consistent sending jurisdictions. Atlantic Canadian provinces saw significant volatility in the number of workers sent over time. Approximately, 8% of aggregate earnings in Newfoundland and Labrador were from interjurisdictional employment.

This broadly accords with (but helpfully expands) other research on interprovincial labour mobility. The growth in interprovincial labour mobility suggests that disruptions (e.g., COVID, economic downturn) may be more acutely felt in sending regions. The return of mobile workers to their home provinces and territories during downturns may also muddy provincial unemployment data, depending upon where workers claim their EI.

-- Bob Barnetson

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