There are many different ways to measure labour market outcomes. Regardless of the measure, the least-educated fare poorly in the Canadian labour market, in comparison with their more educated counterparts.
Individuals with low levels of education are significantly more likely than their more educated counterparts to be unemployed. Table 2.5 shows how the unemployment rate in Canada has varied by level of education, over the past 20 years. The unemployment rate for the leasteducated has been consistently higher than for all other educational groups.6
| Highest educational credential | Unemployment rate (%) | ||||
|---|---|---|---|---|---|
| 1981 | 1986 | 1991 | 1996 | 2001 | |
| None | 5.2 | 11.2 | 13.0 | 13.7 | 9.7 |
| High-school graduation | 3.5 | 8.1 | 8.7 | 8.4 | 5.9 |
| Trades certificate | 4.1 | 8.9 | 9.3 | 9.3 | 6.6 |
| College certificate | 3.0 | 6.4 | 6.8 | 6.9 | 5.0 |
| Univ,< bachelor | 3.2 | 5.1 | 5.7 | 6.1 | 4.8 |
| Univ,bachelors | 2.9 | 5.4 | 5.2 | 4.8 | 4.2 |
| Univ,> bachelors | 2.3 | 3.8 | 4.5 | 3.6 | 3.9 |
| Univ,medical degree | 1.3 | 2.1 | 1.9 | 3.2 | 2.2 |
| Univ,masters degree | 2.7 | 4.7 | 5.2 | 4.4 | 4.5 |
| Univ,doctorate | 1.7 | 3.2 | 3.1 | 3.7 | 3.8 |
| All groups | 4.1 | 8.6 | 9.0 | 8.7 | 6.2 |
Source: Authors’ calculations from the 1981, 1986, 1991, 1996, 2001 census public use master file
Not only are individuals with low levels of education more likely to be unemployed, when they are working, they are considerably more likely to be employed in low-wage jobs. In a recent report on low-wage work, Saunders (2005) found that 26.3 percent of full time workers without a high-school diploma made less than $10 per hour, compared to 6.5 percent of university graduates (Table 2.6). Figure 2.1 represents this relationship graphically; showing the striking contrast between the proportions of less-educated and more educated individuals who are employed in low-wage jobs.
6 Allen (2004) shows that this result applies equally to men and women.