Québec Droite

Cahier spécial : Measuring Labour Markets in Canada and the United States 2011 Edition

Measuring Labour Markets in Canada and the United States 2011 Edition

Key Conclusions

·       This study measures the labour market performance of Canadian provinces and US states from 2006 to 2010 based on five equally weighted indicators: average total employment growth, average private-sector employment growth, average unemployment rates, average duration of unemployment, and average labour productivity.

·       Alberta topped the rankings of Canadian provinces and US states with an overall score of 9.0 out of 10.

·       Three other Canadian provinces are in the top 10: Saskatchewan (2nd overall, score of 8.4), Manitoba (4th, score of 7.2), and British Columbia (6th, score of 7.0).

·       While Canada’s two largest provinces, Quebec (12th) and Ontario (16th) rank in the top 20, they continue to grapple with sluggish labour markets with overall scores of 5.8 and 5.5. Indeed, their rankings are more a reflection of poor labour market performance in the US than robust performance at home.

·       The study also identifies four characteristics that affect labour market performance: public-sector employment, minimum wages, unionization,and labour relations laws.

Average GDP per worker

The ultimate goal of a well-functioning labour market is high and growing labour productivity,14 which in turn translates into higher wages and salaries  for workers.

The final indicator of labour market performance measures the  average total value of goods and services (GDP) per worker over the five-year period from 2005 to 2009.

Observations

Delaware ranked first out of the 60 jurisdictions with an average GDP per

worker totaling $174,362. The Western US states performed well on this indicator: five states (Alaska, Wyoming, California, Nevada, and Hawaii) ranked  in the top 10. The bottom half of the rankings consisted largely of Midwestern and Southern states. Alberta was the top-ranked Canadian province at 11th place, with  an average GDP per worker of $127,391. Newfoundland & Labrador and  Saskatchewan were the only other Canadian provinces in the top half of the  rankings, with an average GDP per worker of $120,175 and $111,988, respectively. Prince Edward Island ranked last among the 60 jurisdictions with a GDP per worker of $68,150, just over a half that of top-ranked province Alberta  and less than half that of the top-ranked jurisdiction, Delaware. Troubling  for Canadians, seven of the bottom 10 jurisdictions were Canadian provinces:  Ontario, British Columbia, Manitoba, Quebec, New Brunswick, Nova Scotia,  and Prince Edward Island.

Overall, US states out-performed Canadian provinces on labour productivity.

Tables des matières:

1)      Measuring Labour Markets in Canada and the United States 2011 Edition

2)      Public-sector employment (1)

3)      Minimum wages (2)

4)      Unionization (3)

5)      Labour relations laws and conclusion (4)

Source : Measuring Labour Markets in Canada and the United States 2011 Edition, by Amela Karabegović, Alex Gainer, and Niels Veldhui, Fraser Institute, September 2011