--- canonical_url: "https://csls.ca/research/rising-import-competition-in-canada-and-its-employment-effect-by-skill-group-evidence-from-the-china-shock/" title: "Rising Import Competition in Canada and its Employment Effect by Skill Group: Evidence from the ‘China Shock’" author: name: "CSLS" url: "https://csls.ca/author/cslc/" date_published: "2026-07-02T11:34:23+00:00" date_modified: "2026-07-07T07:35:27+00:00" post_type: "research" summary: "" post_tag: - "Canada" - "China shock" - "import competition" - "labour reallocation" - "manufacturing employment" - "occupational skill" - "skill groups" - "trade-induced job loss" country_focus: - "Canada" - "China" province_region: - "National" research_theme: - "Labour Markets" - "Trade" featured_image: "https://csls.ca/wp-content/uploads/2026/07/old-reports_hero_banner_bg.webp" status: "publish" --- # Rising Import Competition in Canada and its Employment Effect by Skill Group: Evidence from the ‘China Shock’ Canonical URL: https://csls.ca/research/rising-import-competition-in-canada-and-its-employment-effect-by-skill-group-evidence-from-the-china-shock/ # Rising Import Competition in Canada and its Employment Effect by Skill Group: Evidence from the ‘China Shock’ [Download full PDF report](https://csls.ca/pdf/csls2018-02-1.pdf) Cite this report × Cite this report as: Kim, Myeongwan. 2018. “Rising Import Competition in Canada and its Employment Effect by Skill Group: Evidence from the ‘China Shock’.” CSLS Research Report 2018-02. Ottawa: Centre for the Study of Living Standards. https://csls.ca/research/rising-import-competition-in-canada-and-its-employment-effect-by-skill-group-evidence-from-the-china-shock/ ## Author: - Myeongwan Kim Centre for the Study of Living Standards (CSLS) ## Report 2018-02 August 2018 69 pages ## Related research [Measuring the Appropriate Outcomes for Better Decision-Making: A Framework to Guide the Analysis of Health Policy Matthew Calver March 2016 | Report 2016-03 | 132 pages](https://csls.ca/research/measuring-the-appropriate-outcomes-for-better-decision-making-a-framework-to-guide-the-analysis-of-health-policy-2016-03/) [Living Standards Domain of the Canadian Index of Wellbeing Andrew Sharpe, Christopher Ross November 2011 | Report 2011-17 | 124 pages](https://csls.ca/research/living-standards-domain-of-the-canadian-index-of-wellbeing-2011-17/) [Productivity: Key to Economic Success Centre for the Study of Living Standards (CSLS) March 1998 | Report 1998-01 | 99 pages](https://csls.ca/research/productivity-key-to-economic-success/) [Apprenticeship in Canada: A Training System Under Siege? 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Among the factors that contributed to that trend, this report focuses on rising Chinese import competition in Canada, which also accelerated after 2000. We find that the trade-induced job loss in manufacturing amounts to 113.5 thousand during the 2001-2011 period but the loss was not equally distributed across skill groups. We estimate that the loss was largely driven by: low-skilled occupations (89.8 thousand) when analyzed by skill level; and occupations in services (57.6 thousand), technical/paraprofessional (12.1 thousand), and production (51.8 thousand) when analyzed by skill type. We also find that the labour reallocation in response to a trade shock is important in offsetting the negative employment effect, but the degree of adjustment is found to vary across skill groups. Il est bien établi que la part de l’emploi manufacturier dans l’emploi total a connu un déclin séculaire au Canada, déclin qui s’est accéléré après 2000. Parmi les facteurs ayant contribué à cette tendance, ce rapport se concentre sur la hausse de la concurrence des importations chinoises au Canada, qui s’est également accélérée après 2000. Nous constatons que les pertes d’emplois manufacturiers attribuables au commerce s’élèvent à 113 500 durant la période 2001-2011, mais que cette perte n’a pas été répartie également entre les groupes de compétences. Nous estimons que la perte est principalement attribuable aux professions peu spécialisées (89 800) lorsqu’on l’analyse selon le niveau de compétence, et aux professions des services (57 600), techniques et paraprofessionnelles (12 100), ainsi que de la production (51 800) lorsqu’on l’analyse selon le type de compétence. Nous constatons également que la réaffectation de la main-d’œuvre en réponse au choc commercial joue un rôle important pour atténuer l’effet négatif sur l’emploi, mais que le degré d’ajustement varie selon les groupes de compétences. [Download full PDF report](https://csls.ca/pdf/csls2018-02-1.pdf)