Employment growth in the '90s was fuelled by high-tech industries with Ottawa, Montreal and Toronto reaping most of the benefits: Statistics Canada
The high-tech revolution is disproportionately a big-city phenomenon, according to a report from Statistics Canada.
It found that during the 1990s, employment growth in Canada was fuelled by job gains in the technology sector. One out of every six jobs created during the decade was in the information and communications technology (ICT) industries.
During the 1990s, Ottawa cemented its position as a high-tech city. But Statistics Canada said Toronto was the true employment centre for firms in information and communications technology industries. Calgary and Montreal enjoyed strong employment gains in research and development-intensive science industries.
In 1990, Canada’s largest cities, those with over one million people, were home to about 63 per cent of Canada’s high-tech workforce. ICT employment growth is these cities was rapid. By 2000, the largest cities accounted for almost 70 per cent of ICT employment.
In contrast, the share of total employment in the largest centres stood at just under 45 per cent in 1990 and 43 per cent in 2000.
High-tech jobs an important source of employment in large cities
In the 1990s, four out of 10 new jobs in large cities were created by businesses in the ICT sector. Statistics Canada said the contribution of such industries to local employment growth in large cities “cannot be overstated.” These centres experienced lacklustre growth in total employment through the 1990s – an average increase of 8.2 per cent compared with the national rate of 12.2 per cent.
The growth of ICT industries in large centres is consistent with the general tendency for firms in new industries to locate in cities with larger populations. But the size of the local economy is not the only factor that has a positive influence on the location decisions of high-tech firms. The level of industrial diversity in a local economy also has an impact.
After controlling for differences in the sizes of local economies, Statistics Canada found that cities with more diverse economies are the ones with larger shares of their local employment base in high-tech industries.
This suggests that new economy industries are drawn to large, diverse cities because these centres provide them with the wide variety of services and specialized labour they require to grow.
Where is the high-tech capital?
In the 1990s, Ottawa became known as a high-tech city, cementing itself in the minds of many as “Silicon Valley North.”
In 2000, Ottawa led all other Canadian cities in terms of the percentage of its local workforce that was employed in the high-tech sector. But Toronto’s high-tech workforce was four times the size of Ottawa’s and Toronto experienced faster ICT employment growth over the course of the decade.
High-tech industries accounted for nine per cent of Ottawa’s employed labour force in 2000, the largest share of all of Canada’s urban centres. Yet, in absolute terms, Toronto’s high-tech sector was much larger. Toronto was home to about 200,000 high-tech staff while Ottawa boasted 50,000.
Montreal had the second largest ICT workforce in Canada with just under 90,000 workers.
Montreal, Calgary lead nation in science jobs
ICT industries are not the only source of innovation, Statistics Canada said. Science-based industries contribute to economic growth through large investments in research and development and skilled workers.
This science group takes in a diverse range of production environments, from heavy manufacturing industries such as aircraft manufacturing, industrial chemicals and pharmaceuticals, to professional services such as architecture and engineering.
Calgary and Montreal enjoyed the largest employment gains in science industries. Between 1990 and 2000, Calgary increased the size of its science-based workforce by 18,000 workers while Montreal’s sector grew by 12,000 workers.
It found that during the 1990s, employment growth in Canada was fuelled by job gains in the technology sector. One out of every six jobs created during the decade was in the information and communications technology (ICT) industries.
During the 1990s, Ottawa cemented its position as a high-tech city. But Statistics Canada said Toronto was the true employment centre for firms in information and communications technology industries. Calgary and Montreal enjoyed strong employment gains in research and development-intensive science industries.
In 1990, Canada’s largest cities, those with over one million people, were home to about 63 per cent of Canada’s high-tech workforce. ICT employment growth is these cities was rapid. By 2000, the largest cities accounted for almost 70 per cent of ICT employment.
In contrast, the share of total employment in the largest centres stood at just under 45 per cent in 1990 and 43 per cent in 2000.
High-tech jobs an important source of employment in large cities
In the 1990s, four out of 10 new jobs in large cities were created by businesses in the ICT sector. Statistics Canada said the contribution of such industries to local employment growth in large cities “cannot be overstated.” These centres experienced lacklustre growth in total employment through the 1990s – an average increase of 8.2 per cent compared with the national rate of 12.2 per cent.
The growth of ICT industries in large centres is consistent with the general tendency for firms in new industries to locate in cities with larger populations. But the size of the local economy is not the only factor that has a positive influence on the location decisions of high-tech firms. The level of industrial diversity in a local economy also has an impact.
After controlling for differences in the sizes of local economies, Statistics Canada found that cities with more diverse economies are the ones with larger shares of their local employment base in high-tech industries.
This suggests that new economy industries are drawn to large, diverse cities because these centres provide them with the wide variety of services and specialized labour they require to grow.
Where is the high-tech capital?
In the 1990s, Ottawa became known as a high-tech city, cementing itself in the minds of many as “Silicon Valley North.”
In 2000, Ottawa led all other Canadian cities in terms of the percentage of its local workforce that was employed in the high-tech sector. But Toronto’s high-tech workforce was four times the size of Ottawa’s and Toronto experienced faster ICT employment growth over the course of the decade.
High-tech industries accounted for nine per cent of Ottawa’s employed labour force in 2000, the largest share of all of Canada’s urban centres. Yet, in absolute terms, Toronto’s high-tech sector was much larger. Toronto was home to about 200,000 high-tech staff while Ottawa boasted 50,000.
Montreal had the second largest ICT workforce in Canada with just under 90,000 workers.
Montreal, Calgary lead nation in science jobs
ICT industries are not the only source of innovation, Statistics Canada said. Science-based industries contribute to economic growth through large investments in research and development and skilled workers.
This science group takes in a diverse range of production environments, from heavy manufacturing industries such as aircraft manufacturing, industrial chemicals and pharmaceuticals, to professional services such as architecture and engineering.
Calgary and Montreal enjoyed the largest employment gains in science industries. Between 1990 and 2000, Calgary increased the size of its science-based workforce by 18,000 workers while Montreal’s sector grew by 12,000 workers.
