New Report shows nearly one-third of Indigenous employees at high risk of automation and continue to be at greater risk than non-Indigenous employees

July 06, 2020

Toronto, ON, July 6, 2020: A new report, Digital Differences: The impact of automation on the Indigenous economy in Canada (external link) from the Canadian Council for Aboriginal Business (CCAB) and Ryerson University’s Diversity Institute and supported by the Future Skills Centre investigates how automation could impact Indigenous workers by industry and region across Canada. The report findings show that 33.8% of Indigenous workers across Canada are currently concentrated in industries with a higher risk of automation.

This is the first full analysis by industry and region to be completed with a focus on providing new knowledge about how Indigenous workers are differentially at risk from the effects of automation and how these differential risks vary for Indigenous workers by Canadian region. The concentration of these sectors also accounts for significant geographic variation – for example, with Prince Edward Island (36.89%), British Columbia (36.12%), New Brunswick (34.37%), Ontario (34.14%) and Alberta (33.94%) all above the national average.

“It is essential that we build a comprehensive understanding of the Indigenous economy including clearly defining how technological disruption might support or hinder the future of Indigenous work in Canada,” said Tabatha Bull, President and CEO of CCAB. “This evidence can help to ensure that Indigenous businesses, workers and their families and communities get the skills support and resources they need to build the Indigenous and broader Canadian economy.”

“This first of its kind report explores the structural issues in Indigenous employment,” said Wendy Cukier, Founder and Director, Diversity Institute. “Not only does it have implications for the impact of automation but also the impact of COVID-19. Many Indigenous communities located in northern and remote communities that lack access to infrastructure, for example, broadband internet, desperately need to develop the skills required to adapt to automation and to effects of COVID-19. Additionally, it shows Indigenous people have faster growing rates of self-employment, but Indigenous entrepreneurs are disproportionately affected by COVID-19 and Canada's recovery strategy must include measures that will help support these enterprises.”

Indigenous people in Canada are four percent of the total labour force and generate a combined household income of approximately $30 billion a year. Indigenous youth are also the fastest growing segment of the population so focusing on skills development and adaptation are critical to Canada’s economic growth and prosperity. Gaps in formal education attainment and/or lack of basic literacy skills exacerbate the risks of adapting to change.

Report Highlights:

Approximately 250,000 jobs held by Indigenous workers are at high risk of automation in the 33 industries listed in the report, with a median of 3,520 jobs represented by the wholesale trade sector.
The five industry categories with the highest levels of automation risk, in order of magnitude are: accommodation and food services; retail trade; construction; transportation and warehousing; and management, administrative, and other support.
Indigenous workers in Nunavut, British Columbia, Prince Edward Island, the Northwest Territories, Ontario, and Alberta are more at risk from automation than non-Indigenous workers in these provinces
Approximately 49,000 Indigenous individuals are listed as self-employed – some out of necessity, some through choice.

To improve employment prospects of Indigenous people, the report recommends:

More in-depth analysis of disaggregated data to understand the distribution of Indigenous workers in each industry by occupation type.

Educational reform focused on delivering high-quality and culturally appropriate curricula on par with non-Indigenous Canadians with the goal of obtaining parity with the non-Indigenous population, particularly in post-secondary attainment critical for higher skill level positions.

Particular focus is needed on culturally appropriate technology oriented and highly skilled jobs.

Employers need to address barriers to employment and skills development. Further assisting workers with skills training targeting jobs which are in demand. Employers need to contribute to upskilling including facilitating formal and informal training opportunities to learn new skills and build on existing ones.

It’s also important to recognize the critical role of Indigenous entrepreneurship and supports appropriate to the unique context of Indigenous communities.

This reports builds on previous research and knowledge sharing by CCAB and Ryerson University’s Diversity Institute and supported by the Future Skills Centre exploring important issues impacting the Indigenous economy including the report - Mapping the Landscape: Indigenous Skills Training and Jobs in Canada (external link) which is a part of the Skills Next Project (external link) .

-30-