Mr. Chair, thank you for this opportunity to discuss chapter 8, “Meeting Needs for Key Statistical Data”, from our 2014 spring report.
Joining me at the table are John Affleck, principal, and Colin Meredith, director, who were responsible for the audit.
As Canada's national statistical agency, Statistics Canada plays a fundamental role in generating information on Canada's socio-economic conditions. This information is used by governments, researchers, academics, businesses, and non-governmental organizations.
We examined whether Statistics Canada ensures the quality of key socio-economic information it produces and whether it generates this information efficiently and in response to priority user needs. Our examination of quality and the efficient use of resources was focused on four data products that provide important information on Canada's economic and social conditions: the consumer price index; the labour force survey; the national household survey; and the survey of employment, payrolls, and hours.
Overall, we found that Statistics Canada applied its quality assurance framework to ensure the quality of the statistical programs we examined. However, improvements are needed to better meet user needs.
We found that Statistics Canada consults mainly with federal, provincial, ans territorial users, with less attention paid to the private sector, municipalities and non-government organizations.
Without ongoing consultation and feedback mechanisms for the full range of users, the agency's data may become less relevant. For example, detailed information on job vacancies—by both occupation and location—could inform job seekers and policy-makers on which occupations are in demand and where. Policy-makers could also use this information to develop and manage policies and programs.
However, information on job vacancies is not broken down within provinces, so it is not possible to know if Alberta job vacancies are in Fort McMurray, Medicine Hat, or in any other community. Users told us that as a result of the shortcomings, this information is of limited value to them.
We found that the agency managed the implementation of the national household survey well. Nevertheless, introducing this voluntary survey to replace the mandatory long form questionnaire that was part of the previous census of population had an impact on users. The agency anticipated a drop in response rate as a result of the move to a voluntary survey. It took a number of steps to mitigate this risk, such as increasing the number of households in the initial sample from 3 million to 4.5 million, and targeting its efforts to encourage households to respond. Notwithstanding the steps taken, the actual response rate dropped from 94% in the 2006 census to 69%. While the number of responses to the 2006 census and the 2011 survey were similar, it is the response rate that determines how the data can be used.
Statistics Canada then took additional steps consistent with its quality assurance framework. It decided not to release data, especially for some sparsely populated, remote areas, or rural communities, because of low response rates. The agency estimated that reliable national data was unavailable from the national household survey for 3% of the Canadian population, up from 1% in the 2006 census. The agency also informed users that they should use caution when making comparisons between data from the national household survey and data from previous censuses.
We also examined whether the agency generated data for the four data products efficiently over the audit. We found that Statistics Canada had identified and implemented a number of approaches that resulted in more efficient use of resources. These included using common corporate services and identifying alternate data sources.
In order to maintain the relevance of its work, it is important for Statistics Canada to identify and respond to emerging needs. We examined how the agency assesses and addresses identified gaps, and how it ensures that its approved priorities are implemented.
We found that Statistics Canada had an adequate process to identify and implement its priorities, including emerging needs. However the agency did not systematically consider the need to consider cost-recovered work when external funding is withdrawn. For example, after work ended on a client-funded survey of older workers, the agency did not assess whether it should have continued to fund the survey out of its internal resources.
Statistics Canada has agreed with our five recommendations and has set deadlines for implementing them, ranging from April 2014 to January 2015.
Mr. Chair, this concludes my opening remarks. We would be pleased to answer any questions the committee may have.
Thank you.