Aboriginal People in Manitoba 2000Chapter 6 : Labour and Income |
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First Nations Labour Force Participation
It is frequently assumed that the burgeoning Aboriginal population in Winnipeg and other western cities is the result of employment and income prospects in the cities drawing workers from rural and northern reserves where few jobs are available. However, we have already noted that there is no evidence of a net migration trend to Winnipeg during the 1990s. In fact, there has been a small net out-migration from Winnipeg to reserves.
Labour force statistics from the 1996 Census show why. Among Status Indians aged 15+ and residing in Winnipeg, less than 30% were employed at the time of the Census. Only 45.6% of respondents reported labour market participation, a figure 20% lower than either the non-Aboriginal or Metis work force. Of these workers, 34.7% were unemployed and looking for work. That was almost five times the unemployment rate of non-Aboriginal people. For Status Indians in Winnipeg, there was definite evidence of a “discouraged worker” effect in 1996, as evidenced by the low labour market participation rate.
By way of comparison, the labour market participation rate of Status Indians on reserve was 45.7% - exactly equal to the Winnipeg number. Of these, 30% were unemployed at the time of the Census, or 4.7% less than in Winnipeg. As a result the employment rate on reserve was 32%, or 2.3% higher than in Winnipeg. Therefore, Winnipeg’s economy, as related to First Nations people, was unlikely to act as a magnet for job seekers from reserves.14
In fact, the employment situation of the Status Indian population in Winnipeg is dire. While 37.4% of non-Aboriginal people aged 15+ were not employed, most would have been in school or retired. Some (though less than in previous years) were full-time homemakers. By contrast, 70.3% of Status Indians aged 15+ were not employed – of these, fewer were of an age to retire, fewer in school, and fewer still in two-parent families able to exist on one income.
Also contrary to common belief, there is little overall difference between employment figures for northern and southern reserves. The average employment rate for Status people living in northern reserves was 31.7%, compared to 33.3% in southern reserves. The northern participation rate was 45.8%, compared to 45.7% in the south; and the unemployment rate 30.8%, compared to 27.2%. Proportionally, numbers dependent on social assistance on southern reserves actually exceed those in the north. This is not to say there is not a great deal of variety in employment situations among individual northern or southern reserves.
The highest employment rates for Status Indians are found off reserve outside Winnipeg: 37.9% in the north and 39.9% in the south. Unemployment rates are also lower. This does not necessarily mean job prospects are better in places like Thompson, Brandon or The Pas than they are in Winnipeg or on reserve. There are very high net mobility rates from off-reserve locations to Winnipeg and to reserves, and very high gross mobility rates. It appears that many people may be moving to these areas to find employment, and moving back when employment ends – thereby “exporting unemployment” from off-reserve areas outside Winnipeg.
Also, because income levels and participation and employment rates have traditionally been higher for Status Indians in these areas than in Winnipeg or on reserve, their continued exodus from these areas to reserves and to Winnipeg has the result that off-reserve labour market indicators are deteriorating. The traditional difference between on and off-reserve labour market indicators for Status Indians is steadily shrinking.
In short, there is little demonstrable difference in the overall employment and unemployment situations for Status Indians inside or outside Winnipeg, on or off reserve, or between northern and southern parts of the province. High unemployment and intermittent employment generally increase mobility rates for this population, particularly off reserve, but there is little structural economic reason to move in any one direction as opposed to any other.
On reserve, employment rates for women and men are unusually similar: 31% for women and 33% for men. As elsewhere, women on reserve are less likely than men to participate in the labour force (40% vs. 51%), but report much lower levels of unemployment than do men (22% vs. 36%). This may be because many of the Band-administered functions are in fields where women are disproportionately represented, such as health, education, and office administration.
Status women in Winnipeg maintain similar labour market attachment as women on reserve (39%), but report much higher unemployment (32%). Therefore the employment rate drops to 26%, compared to 31% on reserve. Status women of working age live off reserve in disproportionate numbers, but apparently not for employment-related reasons.
By contrast, labour market participation and employment rates for Status men in Winnipeg are slightly higher in Winnipeg than on reserve. The unemployment rate for men is about the same in both contexts: 36% on reserve and 37% in Winnipeg.
