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Origins of the Project
Resource Industries
Resource Reliance
Socio-Economic Variables
Origins of the Project
This Atlas issue grew out of a Canadian Forest Service publication,
Working Paper 43 of the Industry, Economics and Programs Branch
entitled, Analysis of the Contribution of the Forest Industry to
the Economic Base of Rural Communities in Canada, (Williamson and
Annamraju, 1996). In this study the authors applied previously-developed
analytical and conceptual frameworks of economic base to 1991 Census
data in order to provide an up-to-date view of the current number
and distribution of communities with some degree of forest reliance
(Fletcher et al., 1991). (The term "community" is interchangeable
with the census subdivisions (CSDs) used in the Census of Canada).
In early 1998 an internal discussion paper was written entitled,
Assessment of the Contribution of the Natural Resource Sectors to
Canadian Communities (Samson, 1998), in which the Williamson and
Annamraju approach was used to identify communities with reliance
on energy and mining activities. An updated version of this paper
entitled, Natural Resource Based Communities in Canada: An analysis
based on the 1996 Canada Census applies a modernized version of
the economic base model to identify communities with reliance on
energy, mining or forestry activities.
Sources
Fletcher, S,
W. White, W. Phillips, and L. Constantino. An economic analysis
of Canadian prairie provinces’ forest dependent communities.
Project Report No. 91-05. Edmonton: University of Alberta, Faculty
of Agriculture and Forestry, Department of Rural Economy, 1991.
Samson, R.
Assessment of the Contribution of the Natural Resource Sectors
to Canadian Communities. Ottawa: Natural Resources Canada,
Canadian Forest Service, 1998.
White, W. and
D. Watson Natural Resource Based Communities in Canada: An analysis
based on the 1996 Canada Census. Natural Resources Canada,
Northern Forestry Centre, Canadian Forest Service, 2001
Williamson,
T.B., and S. Annamraju. Analysis of the contribution of the
forest industry to the economic base of rural communities in Canada.
Working Paper 43. Ottawa: Natural Resources Canada, Canadian Forest
Service, Industry, Economics and Programs Branch, 1996.
Resource
Industries
Industry
Classification:
The classification used is the Standard Industrial Classification
(SIC). This system was created in 1948 and revised roughly every
decade. The version available when the data was obtained was the
1970 Edition. The SIC classifies all measurable economic activity
into an industry. For the 1970 version of SIC, the basic system
is a hierarchy using the following format:
- Divisions are the highest level. An example
is: Division 5 - Manufacturing Industries.
- Major Groups are the next highest group. These
have two-digit codes (for example, Major Group 10 - Paper and
Allied Industries)
- Classes: Industries are grouped into these
units, each of which has a three-digit code (for example, 271
for Pulp and Paper Mills). Some mining and manufacturing classes
are further broken down into four-digit groupings.
The major groups and component classes included in each resource
group are the following:
Forest
Industries:
Division 2 – Forestry:
- Major Group 1 - Logging (all classes)
- Major Group 2 - Forestry Services (all classes)
Division 5 - Manufacturing Industries:
- Major Group 8 - Wood Industries (all classes)
- Major Group 10 - Paper and Allied Industries (all classes)
Mining
and mineral Industries:
Division 4 - Mines (including Milling), Quarries and Oil Wells:
- Major Group 1 - Metal Mines (all classes)
- Major Group 3 - Non-Metal Mines (except Coal Mines) (all classes)
- Major Group 4 - Quarries and Sand Pits (all classes)
- Major Group 5 - Services Incidental to Mining: Class 098 - Other
Contract Drilling, and Class 099
Division 5 - Manufacturing Industries:
- Major Group 12 - Primary Metal Industries (all classes)
Energy
Industries:
Division 4 - Mines (including Milling), Quarries and Oil Wells:
- Major Group 2 - Mineral Fuels (all classes)
- Major Group 5 - Services Incidental to Mining: Class 096 - Contract
Drilling for Petroleum
Division 5 - Manufacturing Industries:
- Major Group 18 - Petroleum and Coal Products Industries (all
classes)
Source
Canada. Dominion
Bureau of Statistics. Standard Industrial Classification Manual.
Catalogue Number 12-501. Ottawa: Information Canada, 1970.
Resource
Reliance
Degree
of Resource Reliance
The distribution of values for resource industry reliance among
the census subdivisions (CSDs) ranges from zero to nearly 100%.
The majority of CSDs have zero values (i.e. no population living
there is working in resource industries). For other places, there
are no accepted threshold values which separate, say, little reliance
from moderate reliance. The authors selected 50% as their threshold
for inclusion in a list of resource-reliant communities. This is
an arbitrary choice, but one that it is defensible as it suggests
that at least half the economic base of the community is based on
a particular resource sector (or due to the combination of two or
more natural resource sectors in combined-reliance communities).
Reliance
classes
In order to provide a differentiation between places that are somewhat
reliant on a particular resource sector, and those with extreme
reliance, three unnamed classes will be used. The size range for
reliance classes is as follows:
- 50 – 59%
- 60 – 74%
- 75 – 100% (one map uses 75 - 98%)
Economic
Base
Economic base is defined as the total employment income within
a local economy that is generated by demand from outside the community.
It is a measure of the importance of exports to a community’s
economy. The economic viability of a community is often determined
by its ability to attract income from elsewhere to support those
industries that produce only for local consumption.
(The term "community" is interchangeable with the census
subdivisions (CSDs) used in the 1996 Census of Canada).
To estimate how much employment income is generated by exports
each industry was divided into its constituent primary, manufacturing
and service sectors. The primary sectors were assumed to produce
only for export; therefore, all primary sector employment income
was considered to be part of the community's economic base. The
manufacturing and service sectors; however, produced for both export
and local consumption. To estimate how much employment income these
sectors generated from exports, each community was compared to Canada
as a whole. If a manufacturing or service sector was proportionally
more important to a community's economy than that sector’s
contribution to the whole Canadian economy, the excess was considered
to be production for export and assigned to the community’s
economic base.
For the purposes of measuring resource-reliance, 'economic base'
refers to the percentage of resource industry products and services
that are exported as compared to all products and services exported
by a particular community. A community is considered to be resource-reliant
when at least 50% of all exported products and services come from
a single resource industry or combination of resource industries.
A detailed description of the resource industries and sectoral
breakdowns examined by this study are available below.
The dollar value of each community’s economic base was calculated
using employment income by industry data from the 1996 Census. Employment
income by industry data were available for all CSDs with a population
exceeding 250 in 1996. For less-populous CSDs, income data were
not released due to confidentiality restrictions. In these cases
the actual number of people classed as working in the industry were
used as the basis for calculating economic base.
Socio-Economic
Variables
As each community is a census subdivision (CSD) it is possible
to show many other census variables for it. Three socio-economic
areas of interest were selected to see if there would be obvious
relationships with the degree of reliance and population size variables.
The socio-economic variables are as follows:
Income Index
The income variable uses a weighting of average employment income
for four groups:
- Males who worked full year, full time
- Females who worked full, year, full time
- Males who worked part year or part time
- Females who worked part year or part time
The index divides the weighted mean value of employment income
for males and females in each CSD to the matching data for all of
Canada (where 1.00 means the CSD has the same mean employment income
as Canada as a whole). The index values are grouped into in four
classes which indicate the extreme (highest and lowest) values found
on the particular map.
Education Index
This variable is based on the percentage of the population 15 years
of age and over with post-secondary qualifications. The population
with post-secondary qualifications is the sum of four groups; those
whose highest level of schooling is one of
- Trades certificate or diploma
- Other non-university education with certificate
- University with certificate
- University with degree
The education index divides the sum of the four education groups
in each CSD to the matching data for all of Canada (where 1.00 means
the CSD has the same mean employment income as Canada as a whole).
The index values are grouped into in four classes which indicate
the extreme (highest and lowest) values found on the particular
map.
5-Year Mobility Index
This is the percentage of the population in the CSD aged five years
and over that moved (changed address) in the five-year period prior
to Census Day, 1996. The five-year mobility data are shown as percentages
of the 1996 population aged five and over who moved in the preceding
five years. The data are grouped into in four classes which indicate
the extreme (highest and lowest) values found on the particular
map. Note that the Canadian mean value for the 1991-1996 period
is 40%.
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