Study finds skills gap between urban and rural regions is significant and growing
The skills gap between urban and rural areas of Canada is significant and increasing, according to Statistics Canada.
A study of data from the 2001 census shows workers in predominantly urban regions are more likely to be higher skilled workers while those in predominantly rural regions are more likely to be lower skilled.
The study, Occupational Patterns Within Industry Groups: A Rural-Urban Comparison, found that workers in rural areas had different skill sets than their urban counterparts, even when they were working in the same industry. It also found that within many industrial groups, rural regions are gaining unskilled workers in a relative sense.
Between 1991 and 2001 the concentration of unskilled workers increased in predominantly rural regions within each manufacturing industry group and within each service industry group. At the same time, the intensity of unskilled workers declined relatively in most industries in urban areas.
Lower skills, lower wages
Statistics Canada said the lower skills in the rural workforce imply a lower level of rural income and a lower potential for rural job growth, especially as Canada shifts towards a more knowledge-intensive economy.
The difference in the mix of skills within each industry group across the urban-to-rural spectrum has important implications for understanding differences in productivity across regions.
Because the mix of skills is different across regions within an industry group, productivity within that industry may vary across geographic locations.
Some sectors, areas buck the trend
The study also showed that predominantly rural regions had a lower concentration of high-skilled occupations, such as managerial and professional jobs. But there were some exceptions to this pattern.
For example, in customer service the pattern was reversed for managerial occupations. Predominantly rural regions had a higher concentration of managerial occupations and the intensity was marginally higher for more remote regions.
Rural regions in the north had a higher intensity of managerial occupations in the public services sector. But they had a lower intensity of professional occupations in this sector.
In the 1990s rural regions gained a relative intensity of managerial and professional employees in the goods-producing industry sectors, but the share of these workers in rural regions remained far below the national average for each goods-producing industry group.
In addition, rural regions had a higher than average share of unskilled workers in the service-providing sectors and most manufacturing industry groups. This concentration rose during the decade.
A study of data from the 2001 census shows workers in predominantly urban regions are more likely to be higher skilled workers while those in predominantly rural regions are more likely to be lower skilled.
The study, Occupational Patterns Within Industry Groups: A Rural-Urban Comparison, found that workers in rural areas had different skill sets than their urban counterparts, even when they were working in the same industry. It also found that within many industrial groups, rural regions are gaining unskilled workers in a relative sense.
Between 1991 and 2001 the concentration of unskilled workers increased in predominantly rural regions within each manufacturing industry group and within each service industry group. At the same time, the intensity of unskilled workers declined relatively in most industries in urban areas.
Lower skills, lower wages
Statistics Canada said the lower skills in the rural workforce imply a lower level of rural income and a lower potential for rural job growth, especially as Canada shifts towards a more knowledge-intensive economy.
The difference in the mix of skills within each industry group across the urban-to-rural spectrum has important implications for understanding differences in productivity across regions.
Because the mix of skills is different across regions within an industry group, productivity within that industry may vary across geographic locations.
Some sectors, areas buck the trend
The study also showed that predominantly rural regions had a lower concentration of high-skilled occupations, such as managerial and professional jobs. But there were some exceptions to this pattern.
For example, in customer service the pattern was reversed for managerial occupations. Predominantly rural regions had a higher concentration of managerial occupations and the intensity was marginally higher for more remote regions.
Rural regions in the north had a higher intensity of managerial occupations in the public services sector. But they had a lower intensity of professional occupations in this sector.
In the 1990s rural regions gained a relative intensity of managerial and professional employees in the goods-producing industry sectors, but the share of these workers in rural regions remained far below the national average for each goods-producing industry group.
In addition, rural regions had a higher than average share of unskilled workers in the service-providing sectors and most manufacturing industry groups. This concentration rose during the decade.
