Key Summary
- Edmonton is located in Northern Alberta and is a hub for a region with a population of approximately 1,064,459.
- The region accounts for approximately 25% of dairy processing facilities in Alberta, with an equal emphasis on cheese and butter production, as well as ice cream and frozen dessert production.
- Dairy processing employment in the region is estimated at approximately 402 in 2021. Manufacturing overall accounts for approximately 5% of employment.
- By the end of this decade (2030), it is estimated that 120 new hires will be required for the regional dairy processing industry, with approximately one half of this requirement due to replacement of current workers (e.g., retirements).
- Recruitment and retention challenges within this time period are expected to increase as a result of increased labour market tightness.
key stats
2 Prism Economics and Analysis, 2021
labour market tightness ratings
LMI report series
Food Processing Skills Canada (FPSC) has developed this regional profile of the Edmonton, Alberta dairy processing as one within a series of 11 regional reports for the Canadian dairy processing industry. The regional report series is one component of a larger labour market information study of dairy processing within the context of an overall study of the Canadian food and beverage processing sector: https://fpsc-ctac.com/lmi-reports/
objectives
Labour markets are often best understood at a local or regional level where various contributing factors are well understood, sources of labour supply can be characterized, and detailed knowledge of individual facilities exist. The purpose of this regional report is to provide information on the dairy processing industry in the greater Edmonton, Alberta area so that readers have detailed information and a better understanding of the local dairy processing industry. The profile outlines the demographic and socioeconomic characteristics of the region, the regional labour force, the regional dairy processing industry, and an outlook for the specific dairy processing workforce in the Edmonton region.
methods
The methods used to develop the regional profiles included an extensive review of Statistics Canada reports and data that contributed to profile the industry, and project growth in production and employment at the regional level.
In addition, the regional profiles benefitted from a review of other primary and secondary data that enabled the research team to estimate potential labour demand for specific regions, and to identify key industry trends.
The “region” of Edmonton, Alberta focuses on a catchment radius of approximately a one-hour commute to dairy processing establishments to estimate the approximate distance of maximum commuting distance for potential labour force.
demographic characteristics
Edmonton, Alberta is a hub for a regional population of approximately 1,064,459 with a labour force of approximately 675,670 and accounts for approximately 28% of the Alberta population.
Population Summary
| Edmonton | Alberta | |
|---|---|---|
| Total Population | 1,064,459 | 4,456,000 |
| Total Labour Force | 675,670 | 2,456,400 |
| Total Employment | 608,160 | 2,241,500 |
| Unemployment rate | 10.0% | 8.7% |
Prism Economics and Analysis, 2021
Population by Age Group
Consistent with the overall Alberta population, the Edmonton region’s population distribution skews younger, with 12% of the regional and provincial population being 65 years and older. The proportion of the classic core working age population (25-54) is 44% for both the Edmonton region and Alberta overall.
Population Diversity
| Quebec-Levis | Quebec | |
|---|---|---|
| Immigrants Share of Population | 290,210 26% | 845,220 21% |
| Non-Canadian Citizens Share of Population | 125,750 11% | 355,410 9% |
| Visible Minorities Share of Population | 348,440 32% | 933,165 23% |
| Aboriginal Identities Share of Population | 59,495 5% | 258,640 7% |
The diversity of population according to immigrant status and visible minorities is slightly higher for the Edmonton region compared with Alberta overall. The share of population who were immigrants in 2016 was 26% compared with 21% in Alberta, and self-identified visible minorities made up 32% of the Edmonton population compared with 23% of Alberta. Further, there were larger proportions of the region’s population who were not Canadian citizens (11%) compared to Alberta overall (9%).
Population Mobility (5 years)
| Edmonton | Alberta | |
|---|---|---|
| Non-migrants Share of Population |
271,725 58% |
899,165 54% |
| Migrants Share of Population |
199,865 42% |
762,890 46% |
| Internal migrants Share of Population |
129,255 65% |
559,860 73% |
| Intraprovincial Share of Population |
68,660 53% |
333,775 60% |
| Interprovincial Share of Population |
60,610 47% |
226,090 40% |
| External Migrants Share of Population |
70,610 35% |
203,025 27% |
According to the 2016 Census, there was similar mobility within the population of Edmonton region (42%) compared with Alberta overall (46%), meaning that there were similar proportions of people moving into the region within the previous 5 years. The majority of mobility was due to internal migrants (65%). External migrants from outside of Canada was higher for Edmonton region (35%) compared with Alberta (27%).
Indigenous Communities
| First Nation | Reserve(s) | Location | Population |
|---|---|---|---|
| Enoch Cree Nation #440 | Enoch Cree Nation 135 | 13 Km Sw/So Of/De Edmonton | 1,855 |
| Enoch Cree Nation No. 135a | 43 Km South of Barrhead | ||
| Total | 1,855 | ||
In the surrounding areas, there is one First Nations with two communities with a total population of approximately 1,855 community members. Overall, approximately 5% of the region’s population self-identify as Aboriginal according to the 2016 Census, which is similar to the overall rate of 7% for the province.
socio-economic characteristics
Educational Attainment
The Edmonton regional population has similar rates of post-secondary participation compared with Alberta overall. Over one-half (57%) report having some form of post-secondary diploma, certificate or degree compared with 55% of Alberta overall.
Average Employment Income
Average employment income among Edmonton regional residents was approximately 5% lower in 2015 compared with Alberta overall according to Census 2016. The average employment income for Edmonton regional residents was approximately $56,602 compared with $59,343 for Alberta overall. The average government transfers was very similar for Edmonton region residents at $7,111 compared with $7,175 for Alberta overall in 2015.
Approximately two thirds of Edmonton region population (68%) are home owners, with a higher proportion (77%) of the region reporting spending less than 30% of their income on shelter costs in 2016. The average monthly housing costs for home owners was $1,539, compared with the average monthly housing costs for renters at $1,270.
Housing Costs
Housing Composition
regional labour force
The size of the regional labour force in 2021 was 675,000 which is 28% of Alberta’s overall labour force. The participation rate in the region is very similar (67.9%) compared to Alberta (67.7%). Among those in the labour force, the unemployment rates were similar (10.0% vs. 8.7% in Alberta overall).
Labour Force Characteristics
| Edmonton | Alberta | |
|---|---|---|
| In Labour Force | 675,670 | 2,456,400 |
| Employed | 608,160 | 2,241,500 |
| Unemployed | 67,509 | 214,800 |
| Participation Rate | 67.9% | 67.7% |
| Employment Rate | 61.1% | 61.8% |
| Unemployment Rate | 10.0% | 8.7% |
Prism Economics and Analysis, 2021
Labour force projections indicate an approximate 14% overall growth in the next decade rising from approximately 676,000 in 2021 to 769,000 by 2030. The anticipated largest increases are expected to occur in the core group of workers aged 25 to 54 years old.
Labour Force Characteristics
Labour Force by Industry
| Industry | Regional Labour Force | % of Labour Force |
|---|---|---|
| Health care and social assistance | 85,348 | 13% |
| Retail trade | 79,284 | 12% |
| Construction | 75,479 | 11% |
| Professional, scientific and technical services | 52,242 | 8% |
| Educational services | 48,077 | 7% |
| Manufacturing | 31,344 | 5% |
| Accommodation and food services | 31,288 | 5% |
Prism Economics and Analysis, 2021
The largest proportions of the Edmonton regional labour force are working in health care and social assistance (13%) and the retail trade (12%), with a similar proportion working in construction (11%). The manufacturing industry accounts for 5% of the regional labour force and is the sector within which the dairy processing sector would be categorized.
Job Characteristics by Industry (Alberta overall)
| Alberta | Job Vacancy Rate | Average Hourly Wage |
|---|---|---|
| All Industries | 3.0% | $23.38 |
| Food manufacturing | 3.2% | $18.55 |
| Accommodation and food services | 5.5% | $15.67 |
| Administrative and support, waste management and remediation services | 3.6% | $21.17 |
| Professional, scientific, and technical services | 3.2% | $32.55 |
| Health care and social assistance | 2.2% | $24.32 |
| Arts, entertainment, and recreation | 4.1% | $19.08 |
| Transportation and warehousing | 3.7% | $24.25 |
Although not available at the regional level, an examination of the Alberta vacancy rate and average hourly wage data by industry gives some indication for the region as to the potential opportunities and challenges in recruiting and retaining sufficient labour for the dairy processing industry. The job vacancy rate for food manufacturing is slightly higher at 3.2% when compared to all industries at 3.0%. The average hourly wage ($18.55) is notably lower than that for all industries ($23.38), but higher than the minimum wage in Alberta of $15.00 (as of April 2022).
dairy processing sector regional profile
Within the greater Edmonton region, there are seven dairy processing establishments, with an equal emphasis on butter and cheese production, as well as ice cream/frozen dessert production. The region accounts for approximately 25% of the dairy processing facilities in Alberta. Regional employment in the dairy processing sector is estimated in 2021 at 402, with the largest proportions of the workforce in entry-level labourers (171; 43%) and skilled/semi-skilled occupations (116; 29%).
Dairy Processing Establishments (2021)
Dairy Processing Employment (2021)
| Occupation Group | # Employed |
|---|---|
| Management, Finance, Sales, Admin | 33 |
| Entry-level Labourers | 116 |
| Other | 59 |
| Product Development and QC | 171 |
| Skilled/Semi-Skilled | 17 |
| Trades | 6 |
| Total | 402 |
dairy processing workforce outlook
Dairy processing employment in the Edmonton region is expected to grow by approximately 16% over the upcoming decade rising from 402 in 2021 to 465 by 2030—a change of approximately 63. However, the overall hiring requirements will be substantially larger due to the need to replace workers as they retire or leave the industry for various reasons. The actual hiring requirement is expected to be in the range of 120 workers. Anticipated growth will account for 64 new hires (52%) while the remaining 59 new hires (42%) will be needed due to replacement requirements. The largest hiring requirements will occur in the second half of the decade in 2026–2030. From the demographic analysis, new youth entrants are expected to moderate, averaging one new entrant per year over the remainder of the forecast. This suggests that hiring requirements will need to consider other labour supply sources in order to meet the demand, largely attributable to labour replacement requirements (retirements).
Total Dairy Processing Workforce Outlook
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Labour Force | 407 | 432 | 453 | 452 | 456 | 460 | 468 | 476 | 485 | 493 |
| Employment | 402 | 423 | 443 | 450 | 452 | 457 | 460 | 463 | 465 | 465 |
| Net Hiring Requirement | 6 | 5 | 18 | 19 | 13 | 21 | 14 | 15 | 7 | 8 |
| Employment Growth | 0 | 21 | 20 | 7 | 2 | 5 | 3 | 3 | 2 | 0 |
| Replacement | 6 | 5 | 7 | 12 | 11 | 16 | 11 | 12 | 5 | 8 |
| Youth New Entrants | 4 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 | 2 |
Dairy Processing Employment Outlook
| Occupation Group | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|---|---|---|---|---|
| Management, Finance, Sales, and Administration | 33 | 32 | 33 | 34 | 35 | 35 | 36 | 36 | 37 | 37 |
| Entry-level Labourers | 171 | 163 | 169 | 172 | 174 | 177 | 180 | 183 | 186 | 189 |
| Other | 6 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 9 |
| Product Development and Quality Control | 17 | 19 | 19 | 20 | 20 | 20 | 20 | 21 | 21 | 21 |
| Skilled/Semi-Skilled | 116 | 124 | 128 | 131 | 133 | 134 | 136 | 139 | 141 | 143 |
| Trades | 59 | 57 | 59 | 60 | 61 | 61 | 62 | 63 | 64 | 65 |
| Total | 402 | 403 | 416 | 424 | 430 | 436 | 443 | 450 | 457 | 456 |
Dairy Processing Hiring Requirement Outlook
| Occupation Group | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|---|---|---|---|---|
| Management, Finance, Sales, and Administration | 3 | 5 | 8 | 6 | 4 | 5 | 6 | 7 | 7 | 7 |
| Entry-level Labourers | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
| Other | 0 | 1 | 1 | 1 | 0 | 1 | 1 | 1 | 1 | 1 |
| Product Development and Quality Control | 1 | 3 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 |
| Skilled/Semi-Skilled | 0 | 8 | 4 | 3 | 2 | 2 | 2 | 3 | 3 | 3 |
| Trades | 1 | 2 | 3 | 2 | 1 | 2 | 3 | 2 | 2 | 2 |
| Total | 6 | 5 | 18 | 13 | 8 | 11 | 14 | 15 | 15 | 15 |
The types of workers that will be needed for the Edmonton region dairy processing industry vary slightly year to year according to estimates, yet across the decade, the largest proportion of new hires will be within the occupations aligned with management, finance, sales and administration with a total of 58 new workers needed accounting for approximately 42% of the total hiring requirements between 2021 and 2030. As well, a total of 30 skilled/semi-skilled workers will be needed (21%).
labour market tightness
Labour market tightness is a measure of the share of the annual supply change that occurs after accounting for available new entrants. Recruitment challenges increase as the proportion of workers need to be recruited from other industries, occupations and geographic regions rises. Recruitment challenges are exacerbated when tightness in other industries exceeds that of the dairy sector.
Reading the Rankings
Labour markets have tightened significantly in recent years and what were previously periodic recruitment challenges have now become permanent challenges faced by employers in all sectors of the economy. Given this reality, the ranks are intended to be interpreted in relation to recruitment and retention conditions experienced over the previous five years. The analysis of labour market tightness uses a relative ranking system:
For the Edmonton region’s dairy processing sector, the labour market tightness rating increase as of 2022 which will likely result in the industry experiencing more challenges in recruitment and retention than previous years. As of 2024, the tightness will decrease but then increase again towards the end of the decade.
Labour Market Tightness Ratings 2021-2030: Edmonton Region
| 2021 | 2 – Normal Tightness |
| 2022 | 3 – Greater Tightness |
| 2023 | 3 – Greater Tightness |
| 2024 | 1 – Less Tightness |
| 2025 | 2 – Normal Tightness |
| 2026 | 2 – Normal Tightness |
| 2027 | 3 – Greater Tightness |
| 2028 | 3 – Greater Tightness |
| 2029 | 3 – Greater Tightness |
| 2030 | 3 – Greater Tightness |
