Black Labour Market Assessment Reveals Critical Gaps and Opportunities in Ontario
A groundbreaking report titled “ACBN Rapid Labour Market Needs Assessment” has uncovered significant disparities facing Black workers and entrepreneurs in Ontario’s labour market. Prepared for the Afro-Caribbean Business Network (ACBN) in February 2023 by Dr. Cleophas Justine Pierre of Dunn, Pierre, Barnett and Company Canada Ltd., this assessment provides crucial insights to inform policy development and targeted interventions for Southern Ontario’s Black communities.
The Importance of Black-Focused Labour Market Research
Despite growing corporate and governmental commitments to diversity and inclusion, this report highlights why a dedicated Black Labour Market Needs Assessment (BLMNA) remains essential. Black communities face unique structural barriers within Canada’s labour market that require tailored solutions.
The report emphasizes a striking paradox: while Black Ontarians have made significant contributions to Canada’s principles of justice and equity, they remain among those who benefit least from these values in practical economic terms.
Ontario’s Black Workforce: Key Insights
Demographics and Immigration
- Gender dynamics: Women constitute 51.2% of Ontario’s Black workforce, despite being a smaller percentage of the overall provincial workforce
- Immigration impact: Nearly 60% of Black workers in Ontario are immigrants, compared to just 32.8% of the general Ontario workforce
Occupational Distribution
- Black men are most heavily represented in trades, transport, and equipment operation sectors
- Black women predominate in sales and service, health occupations, and education, law, and social services
- Underrepresentation of both genders persists in highly compensated fields such as science and technology, engineering, and senior management positions
Education vs. Income: A Troubling Disconnect
- Educational parity: 70% of Black Ontarians hold post-secondary credentials, slightly exceeding the rate for white Ontarians (69.3%)
- Persistent wage gap: Despite comparable education levels, Black men earned a median income of $45,200 compared to $63,600 for white men (2019)
- Credential devaluation: Many Black Ontarians require advanced degrees to achieve earnings comparable to white workers with only high school diplomas
Unemployment Challenges
- Black men face 16.5% unemployment rates, with Black women at 17.5% (2021)
- Black youth unemployment exceeds 30%, representing a critical concern
- Interestingly, within Black communities, immigrants typically experience lower unemployment rates than Canadian-born workers
Ontario’s Black Businesses: Growth Barriers and Opportunities
Business Landscape
- Black-owned businesses represent 2.3% of all Canadian businesses
- Scaling challenges: 85.9% of Black-owned businesses in Ontario employ fewer than five people, compared to 56.5% of all Canadian businesses
Industry Concentration
73% of Black businesses operate in five key sectors:
- Professional, scientific and technical services
- Arts, entertainment and recreation
- Accommodation and food services
- Finance, insurance, real estate and leasing services
- Retail trade
Hiring and Growth
- Business expansion drives 26% of new hiring
- 38% of new positions require certification
- Sales and service positions account for 30% of new hires
Critical Resource Gaps
Black business owners face significant operational challenges:
- 78% lack resources to hire qualified professionals
- 76% need assistance with proposals and bidding processes
- 32% require IT and website development support
- 37% need graphic design assistance
- 89% do not have access to trusted financial advisors
- 41% encounter ongoing financial challenges
- 87% report that accessing finance is excessively difficult for Black-led businesses
Recommendations for Meaningful Change
Data Collection and Analysis
- Governments and financial institutions must collect more detailed, disaggregated data on Black-owned businesses and workers to better understand systemic inequities
Government Interventions
- Fund specialized professional support services for Black businesses
- Return to proactive employment equity approaches
- Regularly consult with Black advocacy organizations
- Promote apprenticeships in male-dominated skilled trades
- Adjust loan and grant eligibility criteria to better align with Black business characteristics
- Actively procure from and do business with Black-owned enterprises
Advocacy and Coalition Building
- Black advocacy groups should form stronger coalitions
- Monitor and report on employment figures to promote equitable hiring practices
- Raise broader awareness of systemic inequities
Moving Forward: From Assessment to Action
The “ACBN Rapid Labour Market Needs Assessment Report” provides an evidence-based foundation for addressing persistent inequities faced by Black workers and entrepreneurs in Ontario. These findings highlight the urgent need for targeted interventions and systemic reforms to create a truly inclusive economic environment.
By implementing the report’s recommendations, policymakers, advocacy organizations, and business communities can work together to unlock the full potential of Black Ontarians and build a more equitable and prosperous province for everyone. Continued research into the key areas identified in this assessment remains critical for addressing these systemic challenges effectively.
