ONE-THIRD OF LABOUR FORCE
CONTRIBUTION TO GDP GROWTH PROVIDED BY VISIBLE MINORITIES, DESPITE GAP IN
WAGES
OTTAWA, May 6, 2004 - Visible minorities, who
comprised less than 11 per cent of the labour force on average between
1992 and 2001, accounted for a third of the labour force's contribution to
Canada's real gross domestic product (GDP) growth annually, according to a
Conference Board study released today.
The new study, Making a Visible Difference: The Contribution of Visible Minorities to Canadian Economic Growth, identifies the economic impact of visible minorities through their contribution to labour force growth-one of the key elements to growing the potential output of our economy, and in turn, to expanding GDP. Although visible minorities made up less than 11 per cent of the workforce on average between 1992 and 2001, they accounted for almost one-third of the labour force growth. As the visible minority population approaches 20 per cent of the workforce by 2016, its share of Canada's economic growth will become even more important.
This significant contribution to Canadian GDP growth is due to the fact that visible minorities have been a primary source of Canadian labour force growth during this period. Their contribution could have been even greater if not for the gap in average wages between visible minorities and other Canadians. Visible minorities earned 11 per cent less than the Canadian average in 1991. This gap grew to 14.5 per cent in 2000.
"The wage gap is a problem because Canada will depend on immigration for its future labour force growth, and the majority of our immigrants are visible minorities," said Prem Benimadhu, Vice-President, Organizational Performance at the Conference Board. "Canada is competing for immigrants with other developed countries. This continued wage gap may jeopardize Canada's ability to attract and retain immigrants, with negative consequences for our labour force growth and economic potential. Recognizing foreign credentials or experience alone would eliminate roughly one-third of the gap.
"Canadian organizations, and society in general, must create a more welcoming environment to attract talented immigrants to our country and help them maximize their potential," said Benimadhu.
Recognizing foreign credentials and experience more fully would reduce the wage disparity, which is most pronounced among new immigrants. Most second-generation visible minorities earn wages similar to the Canadian average. The exceptions are Black men, who earn less than the average, and Chinese men, who earn more. More than eight in ten visible minorities are immigrants; this explains a good deal of the wage gap. A 2001 Conference Board study, Brain Gain-The Economic Benefits of Recognizing Learning and Learning Credentials in Canada, found that approximately one-third of the gap could be eliminated through full credential recognition.
This study, part of a unique project championed by Senator Donald Oliver, focuses on helping visible minorities break through the glass ceiling. The goals of the project are to raise awareness of the importance of tapping into this diverse talent pool and to help build inclusive, high-performing work cultures.
The Conference Board is holding a Leaders' Summit on Visible Minorities on Thursday, May 27 in Toronto. The Summit has two parts: a dialogue with CEOs on strategies to help break down barriers and an evening reception and dinner. With the focus of the project on developing solutions, the project will yield an employers' guide to provide step-by-step advice to organizations to help them attract and retain visible minorities.
The project's supporters include several of Canada's leading public and private sector organizations, as well as labour: Agriculture and Agri-Food Canada, BCE Inc., BMO Financial Group, Business Development Bank of Canada, CAW-Canada, Canada School of Public Service, Canadian Heritage, Canadian Imperial Bank of Commerce, Canadian International Development Agency, Citizenship & Immigration Canada, Department of Foreign Affairs and International Trade, Emera Inc., George Weston Limited, Human Resources and Skills Development Canada/Labour Program, IBM Canada Ltd., Industry Canada, Power Corporation of Canada, Public Service Commission of Canada, Public Service Human Resources Management Agency of Canada, Public Works and Government Services Canada, RBC Financial Group, Royal Canadian Mounted Police, Scotiabank, Statistics Canada, Sun Life Financial, TD Bank Financial Group and Treasury Board of Canada. An advisory committee of leaders from these and other organizations is contributing to the project.
The briefing is available at www.conferenceboard.ca/boardwise
