Everything you wanted to know about
Canada!
Labor
The Canadian civilian labor force numbered 14.8 million in 1994,
of whom 10.4 percent were unemployed. The participation rate of men in the labor
force reached a postwar high in 1981 of 78.7 percent and declined to 72.5
percent by 1995. The participation rate of women, on the other hand, rose
steadily to 58.7 percent in 1990 and has remained at just under that figure
since. In part, the shift toward a more gender-balanced labor force is the
outcome of the women’s movement, but it is also a reflection of wider economic
change, especially the growth of the services sector. The vast majority of
workers in goods-producing industries continue to be men, while women outnumber
men in finance, business, and community and personal services; the numbers of
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men
and women in trade and public administration are roughly equal. In general,
women work fewer hours than men (women hold 70 percent of all part-time jobs)
and are paid less, although equal-pay legislation has begun to narrow the gap in
wage rates. In 1994 men in full-time, full-year employment earned C$40,700 on
average, while women earned C$28,400.
The last two decades have also seen a substantial rise in the
number of self-employed Canadians, from 7 percent of the labor force in the
1970s to more than 13 percent in 1994. Many choose self-employment as a way to
achieve greater independence; for some, however, it is a last resort when
opportunities for regular employment are scarce.
Jurisdiction over labor matters is split between the federal and provincial governments, and legislation therefore varies across the country. Minimum standards are established by the Canada Labour Code, but provinces enact further rules. Canada also has federal and provincial laws that prohibit child employment, provide for maternity leave, guarantee the right to collective bargaining, require paid holidays, and require equal pay for men and women.
Labor unions have existed in Canada since at least 1827. There have been several periods when labor problems were acute, notably a period after World War I that culminated in more than 300 strikes during 1919. The most famous of these, the Winnipeg General Strike, brought that city to a halt for six weeks and ended in bloodshed as the police fired live ammunition into a crowd of demonstrators.
Until recently, union membership in Canada has been highest in goods-producing industries; this has changed with the growth of the services sector. In 1992, 35 percent of all paid workers were members of unions, about twice the rate of the United States. This rate was lowest in agriculture (less than 2 percent) and highest in public administration (79 percent). The largest unions are the Canadian Union of Public Employees, the National Union of Public and General Employees, the United Food and Commercial Workers, and the Public Service Alliance of Canada. There is also a central coordinating body, the Canadian Labour Congress, that represents most unions at the national level. Many Canadian unions are linked to larger international groups, especially the American Federation of Labor and Congress of Industrial Organizations.
Agriculture
Agriculture is not as important to the Canadian economy as it
was in the 19th century, but it continues to be the mainstay of several regions
and is a significant source of export income. In the early 1990s there were
280,000 farms in Canada, averaging 242 hectares (598 acres) in size. Some
430,000 men and women worked on Canadian farms in 1995, representing 3.2 percent
of the total labor force. The annual value of farm output amounted to C$26.7
billion in 1995, which was 2.1 percent of GDP. Because of Canada’s abundant
production and relatively small population, it is a leading exporter of food
products; these account for nearly 9 percent of goods exported, compared with
0.4 percent for Japan, 4.5 percent for Mexico, 10 percent for the United States,
and 11 percent for the European Union.
Farm life is changing considerably as farmers adjust to new trends. One trend is consumer preference for foods with lower fat content, which has changed demand for specific products. For example, there is less demand for cream and more demand for vegetables. Also, government has reduced its subsidies to the industry, making it necessary for farmers to introduce more profitable crops and more livestock production, which is generally more profitable. Full-time farming is declining: 1995 figures indicate that, on the average, two-thirds of farm family income came from sources off the farm.
Farms in Canada are about equally divided between crop raising and livestock production. Wheat is the most important single crop, and the Prairie Provinces of Alberta, Manitoba, and Saskatchewan form one of the greatest wheat-growing areas of the world, producing more than one-fifth of the world’s supply. One-half of Canada’s wheat is grown in Saskatchewan. In recent years, prairie farmers have sought to diversify their crops to minimize the effects of bad crop years or reductions in the price of wheat. Thus they have increasingly shifted from wheat to other grains and oilseeds. After wheat, the largest cash receipts from field crops are obtained from canola, vegetables, barley, maize, potatoes, fruits, tobacco, and soybeans. In annual output, wheat in the early 1990s exceeded its nearest competitor, barley, by 3 to 1 (29.9 million metric tons versus 10.9 million).
Canada’s agricultural sector is in two major parts. The first, dominated by grains and livestock, is geared to the export market, and farmers receive international prices. The second is sold within a protected Canadian market. These products, mainly dairy products and poultry, are regulated by provincial marketing boards that allocate quotas to individual farmers to preserve the farming sector and to match supply with demand. As a result, Canadian consumers pay a premium for poultry and dairy products. The future of marketing boards is in doubt, however, due to a recent agreement of the member countries of the General Agreement on Tariffs and Trade (GATT), which included Canada, to open agricultural markets to full global competition. GATT, now succeeded by the World Trade Organization, was an international body that promoted and enforced trade laws and regulations. It worked to minimize preferential trade agreements between countries and other barriers to international trade.
Livestock and livestock products are growing in importance and account for about 50 percent of cash receipts. Beef cattle ranching is a specialized industry in the west, especially in the dry grasslands of southern Alberta and Saskatchewan. In 1995 Canada had 14.7 million cattle, which is 62 percent of those in Australia and 14 percent of those in the United States. About one-tenth of these were milk cows. Canada also had 12.2 million hogs and 860,000 sheep. Ontario and Québec rank highest in production of dairy products, with about 73 percent of the national output; in poultry farming, with 64 percent; and in egg production, with 55 percent. Québec produces 82 percent of the maple products, and Ontario produces 89 percent of the nation’s tobacco crop. Fruit farming occurs in Ontario, British Columbia, and Québec, with apples contributing about 40 percent of the total value.
Forestry
Forest products contribute significantly to regional and rural
economies. The forest industry as a whole employs 370,000 people directly and an
additional 510,000 in support services (1994 statistics). It is estimated that
the full range of forestry activities—from logging, through manufacturing, to
trade in wood products—generates one in 15 Canadian jobs. The industry
accounted for 2.9 percent of Canada’s GDP in 1995 and 14.1 percent of goods
exported.
Canada’s forests are about 10 percent of the world’s total forest area. Despite heavy harvesting by early settlers, forests, mainly coniferous, still cover 45 percent of the country’s land area. A national forest inventory is conducted every five years by Forestry Canada, the federal forestry agency, in cooperation with provincial and territorial agencies. Inventoried forest land was estimated at 420 million hectares (1.038 billion acres) in 1996. Fifty-six percent of this total is considered commercial quality, and 28 percent of the total is actively managed for timber production, while 12 percent is protected in forest reserves. During the past 15 years, an average of 0.4 percent of the national stock of wood was harvested per year, and another 0.3 percent was lost to fire or pests.
Most of the forest land is owned and managed by the provincial and federal governments. Provincial governments control 71 percent of the total, leaving 23 percent in federal jurisdiction and 6 percent in private hands. Private lands include small woodlots and large industrial freeholds.
Canadian wood products are among the finest in the world:
Canadian softwood lumber is comprised of long fibers that provide a high
strength-to-weight ratio, and Canadian pulp is known for strong, light-colored
paper products. Canada is the world’s largest producer of newsprint: In 1995
it produced 27 percent of the world’s total and exported more than 85 percent
of its production, supplying half the world’s export market for newsprint. The
United States is the world’s second largest producer, at 18 percent, but uses
nearly all of its output domestically. The Scandinavian countries are Canada’s
most significant competitor in the timber trade, supplying 22 percent of world
demand. Canada is also the world’s second largest producer of pulp, the third
largest producer of sawn lumber, and the world’s largest exporter of softwood
lumber. The forest industry is concentrated in British Columbia, Québec, and
Ontario. In 1991 the combined value added of forest products for these provinces
was C$35.5 billion, about 85 percent of the national total for forest products.
(Value added is the difference between the price of raw materials used in a
product and the price it commands as a finished item.) The most important
species, in order, are spruce, hemlock, cedar, and Douglas fir. Both the output
of and employment in the forest industry declined during the early 1990s but
began growing again in 1992.
The annual allowable cut for a forested area is the amount of timber that can be harvested each year without diminishing the long-term sustainability of the forest. Canada’s estimated annual allowable cut in 1996 was 230 million cu m (8.122 billion cu ft) or 0.6 percent of the total stock. There is uncertainty in many parts of the country over whether the current harvest rates are sustainable. Regional supplies vary considerably, and some local shortages have been identified. The provincial government of British Columbia tightened its rules on forestry practices in 1995. The same year, the federal and provincial ministers responsible for forestry published guidelines, entitled Defining Sustainable Forest Management, to standardize practices and ensure a viable industry for the future.
Fisheries
Commercial fishing in Canada dates back nearly 500 years. Fishing occurs in ocean waters, inland lakes, and rivers, but the industry has declined as the number of fish has decreased. Only about 30,000 Canadians (less than 0.1 percent of the labor force) are employed in this sector, which accounts for 0.2 percent of the GDP. Canada ranks 15th in the world in total tonnage of fish caught; Canada’s catch in 1994 was 1.137 million metric tons. About 80 percent of the catch is exported, which is just over 1 percent of the total value of goods exported. Canadian fishes and seafood are sold in 100 different countries, but the primary markets are the United States (50 percent) and Japan (29 percent). Cod, herring, crab, lobster, and scallops have been the most important exports from the Atlantic coast, and halibut and salmon from the Pacific coast. There is also a commercial freshwater fishery in Ontario, focused on Lake Erie. Commercial sport fishing industries have been developed throughout Canada.
Fisheries have long been the mainstay of economic life in Atlantic Canada. In 1989 the region’s catch represented 75 percent of Canada’s total and 64 percent of landed value, which is the amount the fishers are paid for it. By 1992 the total value of Canada’s Atlantic fisheries reached C$984 million annually. In 1993, however, Ottawa imposed an unprecedented two-year ban on the commercial fishing of cod in the northern fishery, extending from southern Labrador to the northern Grand Banks, because of a drastic decline in fish stocks. This was formerly one of the richest areas on the Atlantic coast. The fishing ban later was extended indefinitely because of the near-extinction of the fish. Initially the federal government provided emergency assistance payments, in addition to unemployment compensation, to fishers, processing workers, and boat owners. A more comprehensive compensation plan, a voluntary job retraining program, and a regional development program followed.
The causes of the near-extinction of cod have been much debated. Some blame environmental factors. The Canadian government, however, points to the increasing use of larger, more sophisticated boats and foreign intrusion on the fishery. In the century before 1950, fishers worked in small boats using hand-operated equipment and took about 250,000 metric tons a year from the Atlantic waters off Newfoundland. After 1950 Canadians increased their catching capacity by using larger, longer-range vessels with new nets, power equipment, and electronic navigation. Modern European vessels also moved in. In 1968 the northern cod catch peaked at 800,000 metric tons. In 1977 Canada extended its fishing zone to 200 nautical miles (230 mi/370 km) to protect stocks, and for a few years scientists believed that the cod stocks were recovering. However, foreign boats, especially Spanish and Portuguese, began fishing just outside the zone limit in 1986, and by 1991 they accounted for more than a quarter of the cod caught in the region. In 1989 scientists realized that the foreign boats were depleting the northern cod stocks. By 1992 Ottawa introduced new conservation measures and stricter enforcement to protect small fish and spawning stocks. However, these measures were insufficient, leading to a total collapse of the fishery and the imposition of the ban. The time it takes to regenerate a commercially viable stock is unknown, but there were enough signs of recovery to partially reopen the fishery in 1997.
The British Columbia fishery on the Pacific coast is also significant to Canada, with a total value of C$416 million in 1992. Five species of salmon are the mainstay of the fishery, accounting for more than 80 percent of the catch. Other fishes caught in Pacific waters are herring, halibut, cod, sole, and a variety of shellfish. In British Columbia and Yukon Territory, about 85,000 indigenous Canadians are eligible to fish as part of their aboriginal rights—rights they retain as the original owners of the land. Some indigenous people also fish in the commercial industry, and what they take there is in addition to what they are allocated under aboriginal rights.
Canada and the United States share the Pacific salmon resource under the 1980 Pacific Salmon Treaty, which took 15 years to negotiate. The treaty’s goals are to conserve stocks and to distribute salmon equitably. Each country is allowed a catch proportional to the share of salmon spawning in its rivers. The Canadian government estimates that 60 percent of the southeastern Alaskan catch are spawned in Canadian waters and are therefore Canada’s property. In the early 1990s the Alaskan salmon fishers increased their catch, and at the same time stocks arriving in Canadian waters began to dwindle. After several years of protesting to the U.S. government that the Alaskans were taking more than their share, Ottawa in 1994 imposed a fee on American fishing boats passing through Canadian waters. The fee was removed later in the year when the United States agreed to international arbitration to settle the dispute.
Furs
In many ways, the fur industry created Canada. Much of pre-Confederation history revolves around the competition between the French and British for control of the profitable fur trade. But in the late 20th century demand for fur has declined, and the income of indigenous trappers has suffered severely. However, Canada is still the world’s fourth largest exporter of raw fur.
The fur industry employs less than 0.1 percent of the country’s workforce and accounts for less than 0.1 percent of the GDP and goods exported. The value of trapped and farm-raised pelts rose from C$25.6 million in 1960 and 1961 to C$147.4 million in 1986 and 1987, but declined rapidly in the late 1980s and early 1990s. In the early 1990s, 1.9 million pelts of all types were harvested annually in Canada. Production was worth just C$57 million in 1994. Farming operations consist chiefly of mink raising, which contributes more than 90 percent of the annual value of pelts from fur farms, with fox accounting for virtually all the remainder. The fur farms are mainly concentrated in Ontario, Nova Scotia, Québec, and British Columbia. Trapping is carried on primarily in northern Canada; Ontario, Québec, Alberta, Saskatchewan, and Manitoba are the main producers of wildlife pelts.
Mining
Mining in Canada has a long history of exploration and development. The mining industry employs 1.3 percent of the country’s workforce and accounts for 4 percent of the GDP and 19 percent of goods exported. Canada produces both fuel and nonfuel minerals; it is one of the world’s leading producers, and the world’s largest exporter, of nonfuel minerals. In 1995 nonfuel mineral production was C$17.4 billion or more than 40 percent of the total value of Canada’s mineral production. Exports of nonfuel minerals totaled C$23.4 billion, more than 10 percent of total exports. Almost 80 percent of these nonfuel mineral exports were destined for the United States, and about 11 percent went to the European Union or Japan. The remaining 9 percent went to nearly 90 other countries.
Canada is the world’s largest exporter of uranium, zinc, and potash; second-largest producer of nickel, elemental sulfur, asbestos, and cadmium; and among the top five producers of platinum, gypsum, copper, lead, cobalt, titanium, and molybdenum. Much exploration and development activity in Canada is now devoted to diamond mining, especially in the Northwest Territories, the Prairie Provinces, and the Canadian Shield.
Fuel minerals—oil and natural gas—are also significant. In 1995, 723 million barrels of crude oil and 152.8 billion cu m (5.4 trillion cu ft) of natural gas were produced, and more than half of both amounts were exported. Canada is the world’s tenth largest exporter of oil, and the largest exporter of natural gas. Canada’s reserves of conventional oil are not particularly large—they are estimated at 9.4 billion barrels—but 300 billion barrels could be extracted from the oil sands around the Athabasca River. Analysts also believe that there are 7.2 trillion cu m (255 trillion cu ft) of natural gas remaining in Canada.
Oil and gas production is centered mainly in Alberta. Pipelines transport Alberta’s crude oil and natural gas to the industrial centers of eastern Canada, to British Columbia, and to the northwestern and midwestern United States. In addition, oil and gas are shipped to refining centers throughout Canada and to the United States. The giant new Hibernia offshore oil project will tap an estimated 615 million barrels of oil. This is about as much as Canadians use in an average year. Located in the North Atlantic about 300 km (about 200 mi) from St. John’s, Newfoundland, Hibernia plans to begin production by the end of 1997.
Environmental and social concerns have caused uncertainty for the mining industry. The degradation of water quality by mine wastes, in particular, has led federal and provincial governments to regulate mine operations. In 1992 the Mining Association of Canada responded by establishing the Whitehorse Mining Initiative, a broad agreement to increase the level of environmental responsibility in the industry. The initiative was developed together with indigenous groups, environmentalists, and representatives of labor unions and government.
Another source of uncertainty in the industry is the denial of access to lands where mining claims are staked, or where bodies of ore are known to be located. For example, in British Columbia the creation of new parks, such as Tatshenshini-Alsek near Alaska, has closed large areas to mining. The land issues raised by the indigenous peoples have held up mining operations for years while ownership of the rights is being negotiated or litigated.
