According to the latest release of Economic and Social Reports, Canada continues to face significant economic and social challenges. Five new studies offer insights into topics ranging from gender inequality in management roles to the housing difficulties faced by international students and temporary foreign workers.
While strides have been made toward gender equality in Canada, women remain underrepresented in leadership positions, particularly in senior management roles. According to the study “Women middle and senior managers,” women held 42.7% of middle management and just 30.8% of senior management positions in 2021. This is in contrast to their nearly equal representation (47.2%) among non-management employees.
The study highlights both progress and persistent inequality. The gender wage gap has significantly narrowed over the past two decades, dropping from 19.3% to 8.7% for middle managers and from 20.0% to 9.0% for senior managers between 2001 and 2021. However, women, particularly immigrant and racialized women, still face additional barriers when attempting to advance into higher leadership positions. Indigenous women appear to have achieved parity, with their representation in middle and senior management closely aligned with their share in non-management roles.
These findings underscore the need for robust diversity and inclusion policies in the workplace, with a focus on preparing women for leadership roles and addressing the barriers faced by women from marginalized groups.
As housing affordability continues to dominate public discourse, new data sheds light on the unique challenges faced by international students and temporary foreign workers (TFWs). The study “Do international students and temporary foreign workers pay more than Canadian-born individuals in the rental market?” reveals that non-permanent residents face significant rental cost disparities.
In 2021, international students paid an average of 10% more in rent compared to Canadian-born renters in similar urban areas, while TFWs paid 21% more. The gap for TFWs narrows to 5% when factors like household size and neighbourhood characteristics are considered, but the findings emphasize that non-permanent residents often struggle to access affordable housing.
A key factor driving these higher costs is that international students and TFWs are more likely to live in condominiums or newer buildings, as opposed to subsidized housing. These insights highlight the critical need to address housing affordability not only for Canadian citizens but also for the international community that forms a significant part of the country’s labour and education sectors.
While public sector activity and oil and gas extraction spurred growth in goods production, employment growth in the private sector slowed, with the unemployment rate ticking upward. Inflation has been a major concern for Canadian families. Although headline inflation fell below 3% in the first half of the year, the cumulative increase in the Consumer Price Index (CPI) from January 2021 to August 2024 reached 17.1%. This sharp rise in consumer prices, equivalent to the decade-long increase prior to 2021, continues to place financial pressure on households.
Despite the challenges, household incomes grew, helping to mitigate the impact of rising debt-service obligations. However, the affordability crisis remains acute, with many families continuing to struggle under the weight of elevated borrowing costs and inflationary pressures.
The retention of temporary foreign workers (TFWs) in the provinces where they last worked has been a key issue for policymakers. According to the study “Foreign workers in the labour force,” 97% of TFWs who transitioned to permanent residency between 2011 and 2015 intended to remain in their last province of employment, with 82% still residing there five years later.
However, provincial retention rates varied significantly. For instance, former TFWs in Newfoundland, Labrador, and Prince Edward Island were far less likely to stay than their counterparts in larger provinces like Ontario or British Columbia. Only about half of the TFWs who worked in Newfoundland, Labrador, and Prince Edward Island remained in those provinces after five years, while retention in larger provinces exceeded 80%.
The findings mirror broader trends among all immigrants, suggesting that smaller provinces face greater challenges in retaining TFWs and economic immigrants. As immigration remains a vital source of labour force growth, retention strategies will be crucial moving forward.
The pandemic’s impact on the food services industry was severe, with restaurant revenues plummeting by $3.2 billion between February and April 2020, largely due to the rise in telework. The study “The net impact of telework on restaurant revenues in Canada” explores how working from home affected the sector during this critical period.
From March 2020 to July 2022, a 1 percentage point increase in the incidence of telework was associated with a nearly 1% reduction in monthly restaurant receipts. This shift in demand has continued to affect the food services industry as telework remains prevalent. The study suggests that restaurants located near workplaces experienced a greater drop in revenue, as consumers began frequenting establishments closer to home.
As telework becomes a permanent fixture for many workers, the industry may need to adapt to new consumer patterns. This could involve a greater focus on suburban areas or delivery services, as dining near workplaces becomes less common.
The latest Economic and Social Reports provide critical insights into Canada’s evolving social and economic landscape. From the persistence of gender disparities in management to the ongoing affordability crisis and shifting labour dynamics, these reports underscore the challenges and opportunities facing Canadians. Policymakers and businesses alike will need to pay close attention to these trends as they work to build a more equitable and resilient future for all.