In Canada, Employment Equity objectives for the public service and federally regulated corporations are determined by establishing Workforce Availability (WFA) projections from overall Labour Market Availability (LMA) statistics. Similar objectives and projections are made by the public, private and non-governmental sectors in Canada and in other multiracial democracies.

But for the reasons outlined below, EQiSpace believes that workplace equity benchmarks on race, gender, and ability representation should, with respect to statistical measures, reflect the total population, and not WFA or LMA projections.

Workforce Availability (WFA)

WFA refers to the measure of the number of employees within an organization who are available and ready to work at any given time. It considers factors such as:

Employee Presence: Attendance and absence rates.

Health and Well-being: Employees' physical and mental health.

Skill Levels and Training: Qualifications and readiness of employees to perform their duties.

Engagement and Motivation: Levels of employee commitment and productivity.

WFA is an internal metric used by organizations to ensure that they have the staff complement to meet operational demands and maintain business continuity.

Labour Market Availability (LMA)

LMA refers to the potential supply of people within the broader labour market who are available and qualified for employment. This includes:

Unemployment Rates: The number of unemployed individuals actively seeking work.

Demographic Factors: Race, gender, ability, age, education, and skill distribution of the labour force.

Economic Conditions: Factors influencing job availability, such as economic growth, industry demand, and government policies.

Geographic Factors: The availability of workers in specific regions or areas.

LMA is an external metric used by businesses, policymakers, and economists to understand the dynamics of the labour market, plan for recruitment, and develop workforce strategies.

Total Population

Total population refers to the entire group of individuals residing within a specified geographic area, such as a country, region, or city, at a given time.

With respect to the labour market, total population comprises everyone living in an area, regardless of their employment status. It includes all age and racial groups, and encompasses people in various economic categories, such as employed, unemployed, or not part of the labour force.

Understanding total population is vital for analyzing labour market trends and calculating other important labor market metrics, such as the labour force participation rate, employment rate, and unemployment rate.

Weak: Workplace Equity Objectives Established with WFA / LMA Benchmarks

Narrow in Scope

WFA / LMA consider only people who are currently in or actively seeking employment. They do not account for potential candidates who might enter the labour market if barriers to employment were removed.

This narrow scope does not address existing disparities, it perpetuates them.

Ignores Systemic Barriers

WFA / LMA projections do not consider systemic barriers that prevent entry to the labour force for people from certain demographic groups. Factors such as discrimination, lack of access to education and training, and socio-economic disadvantages are overlooked, leading to an inaccurate representation of the demographics and diversity of potential workers.

Reinforces Existing Inequities

Relying on current WFA / LMA data can perpetuate existing disparities. If certain groups are underrepresented due to systemic barriers or historical discrimination, their low representation in the labour market will be mirrored and potentially reinforced in employment equity efforts. By basing equity efforts on WFA / LMA data, workplaces reinforce the status quo.

Excludes Marginalized Groups

Groups such as students, retirees, stay-at-home parents, and discouraged workers (or discouraged searchers) face barriers that prevent them from entering the labour market, but they may be otherwise capable and willing to work. These groups are significant, because they are not counted in the official unemployment rate, which only includes those actively seeking employment. This exclusion underestimates labour market distress and the overall unemployment rate, which further complicates the use of WFA / LMA estimates.

EQiSpace is particularly concerned with the experiences of nonwhite discouraged workers who face persistent labour market discrimination, or who have been actively targeted and professionally blacklisted for standing-up to wrongdoing, racism, or harassment.

Discouraged workers are people who are not actively seeking employment because there are no suitable job opportunities available for them. This stems from factors such as a lack of available jobs, discrimination, or insufficient qualifications.

Although discouraged workers aren’t counted in official unemployment rates, they are captured in labour force surveys. In 2023, there were approximately 20,100 discouraged workers in Canada, and approximately 367,000 discouraged workers in the United States. But the labour force survey data on discouraged workers is weak; it is not broken down by race, and it does not identify the processes and experiences that prevent discouraged workers from entering or re-entering the labour force.

In order to enhance an understanding of the full scope of labour market challenges experienced by discouraged workers, and to formulate better policies that address unemployment and underemployment, labour force surveys need to obtain more information about the specific barriers people face when searching for work.

Short-Term Perspective

Workforce availability metrics provide a snapshot of the current state of the labour market, which can be influenced by temporary economic conditions; they do not account for long-term demographic trends, future workforce entrants, or changing workforce diversification, which limits strategic equity planning.

Strong: Workplace Equity Objectives Established Using the Total Population

Comprehensive Inclusion

Establishing equity benchmarks by total population is stronger than that of WFA / LMA estimates. Equity by total population considers all individuals within a demographic, including those not currently active in the labour market. This approach ensures that all potential workers are considered, promoting a better understanding of the diversity of the workforce.

Equity Goals

This metric aligns employment equity with broader social justice and equity goals. By aiming to reflect the total population, organizations can address historical inequities and effect societal change.

Proactive Barrier Removal

Using total population as a benchmark encourages organizations to proactively address barriers to employment. This includes implementing training programs, outreach initiatives, and other supportive measures to help underrepresented groups enter the workforce – such as EQiSpace’s objective – building equitable workplaces from the ground-up.

Reflects Social Equity Values

Benchmarking workplace equity outcomes to the total population aligns employment practices with societal values of fairness and equality, and ensures that employment equity initiatives are part of a larger effort to address social justice issues.

Strategic Long-Term Workforce Planning

Considering the total population when establishing workplace equity objectives allows for better long-term strategic planning. It helps organizations anticipate and prepare for demographic shifts and evolving workforce needs, ensuring a more sustainable approach to equitable representation.

Bottom Line

WFA / LMA data offer a limited and current snapshot of the workforce, focusing only on those actively engaged or seeking employment. This approach fails to address systemic barriers and perpetuates existing inequities by excluding marginalized groups and long-term strategic considerations.

On the other hand, using total population as a benchmark for workplace equity is a comprehensive and inclusive approach. It ensures that all potential workers are considered, aligns with social justice values, and supports long-term equity goals. This method encourages proactive measures to remove barriers and create truly equitable workplaces.

By adopting a total population benchmark, organizations can better reflect societal diversity, anticipate demographic shifts, and implement sustainable, strategic workforce planning to achieve equitable race, gender, and ability outcomes.