Canada’s National Occupational Classification System

Overview:

The NOC offers a standardized language for highlighting the work Canadians do and acts as a framework to:

• Manage information databases
• Analyze labour market trends
• Extract practical career planning information
• Define and collect statistics

The NOC’s standard method of organizing occupational information significantly benefits several career information resources, such as the national Job Bank listing of all Canadian jobs and the occupational outlook. The basic principle of NOC’s classification is individuals’ work. NOC is the major information source for identifying and grouping occupations. The NOC system can be used by:

• Career developers
• Counsellors
• Economists and statisticians
• Researchers
• Immigrants
• Job seekers
• Students

The NOC encompasses all jobs and occupations in the Canadian labour market (up to 500) that people undertake for profit or pay. Self-employed individuals are also covered in the NOC system. The NOC does not cover unpaid work, such as volunteer positions. However, occupational groupings may describe the duties an individual completes without profit or pay.

Immigration, Refugees, and Citizenship Canada (IRCC), Statistics Canada, and Employment and Social Development Canada (ESDC) currently use the NOC 2021 version 1.0, which is based on 2 crucial occupational categorizations, namely:

• Occupational categories
• TEER categories

NOC’s Categorization and Organization of Occupations

The NOC categorizes occupations based on the work individuals do, using the following 5-tiered hierarchical framework:

• Broad categories: The NOC has ten broad occupational categories. The first digit identifies the broad category, which represents occupational categorization defined by work type performed, the industry of employment, or the field of study.
• Major groups: This classification consists of the TEER category (second digit) and the first digit (broad category). There are 6 TEER (0 to 5), which represent the required Training, Education, Experience, and Responsibilities of the Occupation categories. There are 45 major groups.
• Sub-major groups: This group represents the NOC’s 3-digit code. There are 89 sub-major groups, and they cover the collection of several minor groups.
• Minor groups: This group represents the occupational domain (a domain within which an occupation is carried out). It is a collection of several unit groups representing the NOC’s 4-digit code. There are 162 minor groups.
• Unit groups: This group is the most comprehensive level of the classification, which reflects one or more occupations paired together inside the NOC. This group represents the NOC’s 5-digit code. There are 516 unit groups.
• Note that the above categorization and organization of occupations are based on the NOC 2021 Version 1.0, which is currently used in Canada. This version is also Statistics Canada’s standard for data collection and dissemination for occupations. The NOC 2021 Version 1.0 represents a significant structural reform that reviews existing occupational groups and gathers feedback from appropriate stakeholders through consultation.

Role of the NOC in the Canadian Labour Market

The roles of the NOC system in shaping Canada’s workforce include the following:

• Aiding workers: Job seekers can use the NOC codes to match their skills with job opportunities. It ensures consistency across the Canadian labour market.
• Helping employers: Employers can easily classify job roles, create job postings, and set hiring standards using the NOC codes.
• Supporting government policies: The NOC system guides labour market research, wage policies, and employment programs.
• Helping in skills development and training: The NOC advises on labour market policy, job training initiatives, and workforce development and assists in the identification of skills shortages.

Overview

The timeline of the development of the National Occupational Classification (NOC) system includes the following:

• 1951: Canada’s first occupational classification system was introduced in the Canadian Classification and Dictionary of Occupations (CCDO).
• 1971: The CCDO was updated to reflect industrial and economic changes.
• 1992: The National Occupational Classification (NOC) replaced the CCDO, introducing a modern, skill-based approach.
• 2001: A Second Revised Edition ensued.
• 2006: Further minor revisions also occurred.
• 2011: A revision that merged the 2006 NOC version and National Occupational Classification for Statistics (NOC-S) variation into one system with structural modifications.
• 2016: Involved minor revision with NOC NOC content to be continually updated and its structure revised every 10 years.
• 2021: Involved a major update that introduced the TEER (Training, Education, Experience, and Responsibilities) system.

The Key Milestones or Changes in the Evolution of the NOC

The key changes in the NOC’s evolution include the following:

• 1992: The launch of the NOC system, which provided a structured framework to classify jobs based on qualifications and responsibilities.
• 2001 to 2016: Job categories were updated, including adjustments to reflect emerging industries such as technology and healthcare.
• 2021: The NOC system shifted from a 4-tier skill structure to a TEER system with a 6-level classification. This system was introduced for better accuracy in job descriptions.

Stakeholders Involved in Creating and Updating the NOC

The NOC was created through a collaborative effort between Employment and Social Development Canada (ESDC) and Statistics Canada (StatCan). ESDC and StatCan work together to maintain and update the NOC.

The ESDC, formed in 2005, is the Canadian government’s department regulating social programs and the federal level labour market. They handle several federal government programs and services, including:

• Canada Student Loan Program (CSLP)
• Service Canada centres
• Employment Insurance (EI)
• Canada Pension Plan (CPP)
• Federal Labour Program
• Social Insurance Numbers (SIN)

StatCan, Canada’s statistical agency, was formed in 1971. It replaced the Dominion Bureau of Statistics, which was established in 1918. StatCan ensures Canadians have access to the key information about the country’s society, culture, population, environment, and economy. The agency liaises with the Canadian government’s departments to develop integrated economic and social statistics for the country’s provinces and territories.

How Historical Context Influences the Current NOC Structure

The current NOC structure has evolved in response to Canada’s historical economic, social, and technological changes. These influences have shaped how occupations are classified, ensuring that the system remains relevant to the modern labour market.

Historical context has influenced the current NOC structure in the following ways:

• Economic changes: The NOC has evolved to reflect changes in the Canadian economy.
  • Canada’s economy expanded after the Second World War. The manufacturing, construction, and resource extraction industries grew, creating a greater need for standardized job classifications.
  • A shift from manufacturing to service-oriented jobs, such as healthcare, finance, and retail, had to be implemented in the NOC system to reflect new job categories.
  • The digital revolution introduced new fields, such as cybersecurity, Artificial Intelligence (AI) development, and data science, ensuring continuous updates to job classifications.
• Labour market demands: The updates in NOC structure ensure that the standard classification aligns with in-demand skills and occupations. This includes:
  • New online job classifications include digital marketing specialists and remote Information Technology (IT) support roles.
  • The inclusion of self-employment and contract-based work.
  • The expansion of healthcare-related occupations to meet the rising demand for elderly care (due to the aging population).
• Immigration policy needs: The NOC structure helps Immigration, Refugees, and Citizenship Canada (IRCC) attract skilled foreign workers in response to labour shortages. The introduction of points-based immigration systems required a clear distinction between different skill levels. This influenced the 2021 NOC update, replacing the old Skill Levels (A, B, C, D) with the TEER system.
• Education and training: The TEER system was created to improve job qualification transparency, ensuring better alignment between employment and education. For instance:
• • The high demand for Science, Technology, Engineering, and Mathematics (STEM) education led to updated classifications for engineering and IT jobs.
  • The increased demand for skilled trades programs required a clear distinction between university degree professions and apprenticeship-based jobs.

Overview

The NOC system relies on several key concepts to classify jobs, including the following:

• Skill Level: The Skill Level classification takes into account experience, responsibility, and complexity. It is also largely determined by the kind and quantity of training and education typically needed to enter and carry out an occupation’s obligations. Previously, the NOC used Skill Levels (A, B, C, D) to classify occupations. In 2021, the TEER system, which consists of 6 levels (TEER 0 to 5), replaced the Skill Levels.
• Skill Type: The Skill Type covers the broad category of an occupation based on profession or industry. Jobs are classified into 10 broad occupational categories: Trades, Management, Health, etc.
• Skill Level Descriptors: The Skill Level Descriptors describe the minimum education, training, and experience required for a job under the TEER system.

How the NOC Uses Skill Levels to Classify Occupations

The NOC now classifies jobs under the TEER system, which defines the complexity of an occupation based on its education, training, and experience requirements. The current system of Skill Levels (TEER levels) the NOC uses to classify occupations considers TEER 0, 1, 2, 3 jobs as high-skilled, and TEER 4 to 5 as low-skilled. The TEER levels include the following:

• TEER 0: Comprises specialized middle management occupations in administrative services, including financial and business services. It involves legislative and senior management occupations, such as marketing, advertising, financial, and public relations managers.
• TEER 1: Occupations that require a university degree, such as engineers, doctors, accountants, physicians, architects, and software developers. It also covers employment-related program administration, including program officers and social policy researchers.
• TEER 2: Occupations that require a college diploma, supervisory occupations, or apprenticeship training of 2 or more years, with examples including administrative and financial supervisors, medical laboratory technologists, technical occupations related to web and computer network (Data Center Operator, Internet Website Technician, etc).
• TEER 3: Occupations that require a college diploma, more than 6 months of on-the-job training, or less than 2 years of apprenticeship training, such as dental assistants, heavy equipment operators, and elementary/secondary school teacher assistants. It also includes specialized administrative occupations such as assisting in educational and training organizations.
• TEER 4: Occupations requiring secondary school completion and job-specific training, such as cashiers, customer service representatives, kitchen assistants, sales and service occupations, etc. It also includes social and community services with occupations like child and youth worker, aboriginal worker, and addictions worker.
• TEER 5: Entry-level occupations that don’t require an educational qualification. You must have little or no formal training or education to do the job under this group. The job involves simple and repetitive tasks. Hence, the employers train the employees on the job. These occupations include janitors, dishwashers, and fast food workers.

Significance of Skill Types in Categorizing Jobs Under the NOC

The NOC Skill Types (the broad occupational categories) play a crucial role in the National Occupational Classification (NOC) system by:

• Organizing occupations based on industry and job function helps industries, policymakers, and employers track workforce demands in specific sectors. For instance:
  • Management occupations include marketing managers and Chief Executive Officers (CEOs).
  • Health occupations, such as Pharmacists and Nurses.
  • Trades, transport, and equipment operators, such as Truck Drivers and Electricians.
• Aligning jobs with education and training: Each skill type has different training and educational requirements. Categorizing jobs helps institutions prepare training or educational programs to meet the labour market needs. For instance:
• • Health occupations require medical degrees or specialized training.
  • Business and finance roles require university degrees.
  • Trades and technical jobs require a college diploma or apprenticeship.
• Supporting labour market research and policy development: The Canadian government uses the skill types to analyze employment trends, skill shortages, and wage structure. They also use skill types to ensure that policies align with economic demands.
• Enabling employment and immigration programs: The skill type classifications help employers define job roles, set qualifications, and structure pay scales. Skill types also help identify professions that qualify for immigration.

Examples to Illustrate the Application of Key Concepts in the NOC

The following examples include the application of key concepts in the NOC system:

• NOC 21232, TEER1 (Software Developer)
  • TEER: Level 1 requires a university degree in computer science.
  • Skill type: Information Technology (IT) and applied sciences.
• NOC 72401, TEER 2 (Heavy-Duty Mechanic)
  • TEER: Level 2 requires apprenticeship training.
  • Skill type: Trades and equipment maintenance.
• NOC 64100, TEER 4 (Retail Salesperson)
• • TEER: Level 4, which requires a high school diploma.
  • Skill type: Sales and service occupation.