Future of work

Main findings

Indigenous-owned businesses employ higher shares of Indigenous workers than do non–Indigenous-owned businesses. They are also associated with higher average employment incomes for Indigenous employees across many sectors, regions, and firm sizes. 

Key takeaways

• Indigenous-owned businesses employ higher shares of Indigenous workers thando non–Indigenous-owned businesses in every sector examined. 
• The Indigenous employment share gap ranges from 13.4 percentage points in the manufacturing sector to 20.8 percentage points in the agriculture, natural resources, and utilities sector. 
• Indigenous employees earn higher average incomes in Indigenous-owned businesses across sectors, regions, and firm sizes. 
• Geographically, Indigenous employment shares are especially high in Indigenous-owned businesses in the territories and Prairie provinces. 
• Indigenous employees tend to have the highest average incomes in businesses owned by members of their own Indigenous distinction group. 

Plain language summary

This Statistics Canada study examines how Indigenous-owned businesses contribute to Indigenous employment and income. It links business ownership data with employee characteristics to compare businesses that are Indigenous-owned with those that are not. This fills an important data gap because standard sources of labour market data, such as the Labour Force Survey and the census, do not usually show whether Indigenous workers are employed by Indigenous-owned firms. 

The results show that Indigenous-owned businesses employ substantially higher shares of Indigenous workers than do those owned by others. This pattern appears across industries, provinces, and firm sizes. For example, in the construction sector, Indigenous employees account for 24.8% of workers in Indigenous-owned businesses versus 4.3% in non–Indigenous-owned businesses. 

The study also finds that Indigenous employees generally earn more when they work in Indigenous-owned businesses. In most sectors, the income advantage is meaningful. In professional, scientific, and technical services, Indigenous employees earned $68,300, on average, in Indigenous-owned businesses versus $50,700 in non–Indigenous-owned businesses. In the health care and social assistance sector, the average income for Indigenous employees was more than twice as high in Indigenous-owned businesses. 

Regional differences matter. In the territories, Indigenous employees make up 63.2% of employees in Indigenous-owned businesses compared with 19.9% in non–Indigenous-owned businesses. Manitoba, Saskatchewan, and Alberta also show high Indigenous employment shares at Indigenous-owned businesses. 

These findings suggest that Indigenous-owned businesses employ larger shares of Indigenous workers and are associated with higher average employment incomes for Indigenous employees across many sectors and regions. However, the study is descriptive. It does not establish whether business ownership directly causes these differences. 

Why the results matter

For the public sector:

The findings highlight differences in employment representation and income between Indigenous-owned and non–Indigenous-owned businesses. This information may inform discussions about Indigenous entrepreneurship, employment, and economic development.  

For employers and employment services:

Indigenous-owned businesses appear to be important employment anchors for Indigenous workers, particularly in sectors and regions where Indigenous labour market representation is often lower. 

For post-secondary institutions and students:

The results highlight the importance of entrepreneurship, business ownership, and Indigenous-led economic development as pathways into employment beyond traditional job placement. 

For people working with underrepresented and underserved groups:

The findings suggest that employment outcomes (including pay) differ between Indigenous-owned and non–Indigenous-owned businesses. The study provides additional context for understanding how business ownership relates to labour market experiences for Indigenous workers.  

For people in the LMI ecosystem:

The study demonstrates the value of linked employer-employee data for understanding labour market inclusion. Standard worker-level indicators can miss important firm-level dynamics, including ownership, sector, and size. 

For most Canadians:

The study highlights the role that Indigenous-owned businesses play in employing Indigenous workers and the differences in employment outcomes (including pay) associated with these businesses.  

Definitions

• Indigenous-owned business: A business in which more than 50% of ownership shares are held by individuals who identify as Indigenous. 
• Indigenous distinction group: First Nations, Métis, or Inuit identity groups. 
• Descriptive analysis: Research that identifies patterns in data, but does not prove cause and effect. 

Notes and important disclaimers

• The study discussed here is descriptive. It should not be interpreted as evidence that Indigenous ownership directly causes higher employment shares or higher incomes. 
• The analysis is restricted to private businesses with at least one employee. It excludes public administration, businesses with missing industry or location data, and businesses for which owner or employee characteristics are unavailable. 
• Indigenous identity is self-reported or imputed when missing. This follows Statistics Canada’s methodology.