EMPLOYMENT AND EARNINGS

James and Clayton

Topic of Interest• Describes the economic status of all businesses in

Canada (trends)• Helps with determining future plans (working, immigration,

etc.)

Variables

Independent Payroll Employment

Dependent Average Weekly Earnings ($)

Thesis: Does payroll employment affect average weekly earnings?

Hypothesis: Increased payroll employment will result in increased average weekly earnings

Sample of Data

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

thousands

Employment

All industries 11,885.40 12,055.80 12,460.90 12,907.20 13,116.50 13,386.70 13,608.80 13,894.30 14,265.80 14,574.40 14,848.70 14,576.60 14,703.80 14,948.30

Public administration 702.3 705 713 860.2 861.8 900.2 906 930.2 953.7 969.5 1,016.70 1,038.20 1,049.70 1,057.80

Federal administration 234.7 237.9 240.9 252 260.7 265.6 264.9 267.2 280.7 281.5 292.2 292.3 295.6 300.7

Provincial and territorial administration 202.1 206.1 208 244 239.6 247.2 245.4 254.3 257.9 261 273.6 280.2 285.2 286.7

Local administration 231.5 226.6 229.9 324.1 320.4 343.9 350.2 363.4 371.1 383.6 406.5 421.6 424.3 425.5

average weekly ($)

Earnings

All industries 632.72 640.47 655.55 657.18 673.05 690.96 709.5 737.48 755.67 788.24 810.95 823.46 853.2 874.76

Public administration 734.05 761.05 781.15 783.82 845.66 869.19 896.52 926.98 952.57 1,007.88 1,040.80 1,067.78 1,094.71 1,113.84

Federal administration 830.71 886.01 926.6 934.05 1,006.75 1,050.21 1,077.79 1,137.76 1,145.57 1,233.71 1,286.46 1,324.27 1,356.52 1,351.80

Provincial and territorial administration 750.14 758.82 767.44 805.37 842.21 889.87 934.05 958.59 1,005.47 1,048.02 1,090.60 1,152.41 1,169.68 1,186.47

Local administration 657.34 671.37 680.57 685.09 755.43 751.61 772.87 788.08 809.12 856.34 871.63 876.99 909.87 944.9

DataIn thousands average weekly ($)

Employment Earnings

Year All industries All industries

1998 11,885.40 632.721999 12,055.80 640.472000 12,460.90 655.552001 12,907.20 657.182002 13,116.50 673.052003 13,386.70 690.962004 13,608.80 709.52005 13,894.30 737.482006 14,265.80 755.672007 14,574.40 788.242008 14,848.70 810.952009 14,576.60 823.462010 14,703.80 853.22011 14,948.30 874.76

Sample and Population• Target audience all businesses in Canada (that

consists of at least one employee)

• 15 000 out of 900 000 business in Canada

Sampling Method and Bias• Systematic SamplingAbout 2% of the target population’s answers in the data

(15 000 out of 900 000 =1.67%)

• Sampling Bias

Sample does not accurately represent population

Possible cherry-picking (census samples entire population but population is too large)

Payroll Employment

0- 11885.4 11885.4-12497.98 12497.98-13110.56 13110.56-13723.14 13723.14-14335.72 14335.72-14948.30

1

2

3

4

5

6

Bin

Fre

qu

ency

• Not normally distributed (not bell curve)

• Skewed LEFT

Independent Variable- Payroll Employment

MEAN: 13,659.51

MEDIAN: 13,751.55

MODE: #N/A (numbers not repeated)

Standard Deviation: 1051.02

Average Weekly Earnings

0-673.06 673.06-713.4 713.4-753.74 753.74-794.08 794.08-834.42 834.42-874.760

1

2

3

4

5

6

Bin

Fre

qu

ency

• Not normally distributed • Skewed RIGHT

Dependent Variable- Average Weekly Earnings

MEAN: 735.94

MEDIAN: 723.49

MODE: #N/A (numbers not repeated)

Standard Deviation: 82.53

Two-Variable Statistical Analysis

11,000.00 11,500.00 12,000.00 12,500.00 13,000.00 13,500.00 14,000.00 14,500.00 15,000.00 15,500.000

100

200

300

400

500

600

700

800

900

1000

R² = 0.901406826778655f(x) = 0.074552617115508 x − 282.410395669525

Payroll Employment and Average Weekly Earnings

Employment (in thousands)

Ave

rag

e W

eekl

y E

arn

ing

s ($

)

R= 0.949424471

R= Correlation CoefficientR² = Coefficient of Determination

Conclusion• As payroll employment increases, the average weekly

earnings increase

Why:• Strong positive linear correlation shows an increase in

both variables

Further Analysis• Survey and data collection should be done in other

countries for comparison of economic status between businesses in different locations

• Comparison will indicate which country provides the highest job opportunity and income earned

• Data collection of unemployment should be taken into consideration to indicate which country will provide a more stable and successful life for individuals