From Statistics Canada's The Daily:

Statistics Canada released new data employing small area estimation methods to enhance the availability of labour force characteristics for sub-provincial areas, including census metropolitan areas (CMAs), census agglomerations (CAs), and a complementary geography called self-contained labour areas (SLAs). SLAs are functional areas composed of census subdivisions outside of CMAs and CAs, grouped according to commuting patterns derived from data on place of work from the Census Program.

This small area estimation method uses modelling techniques to combine estimates from the Labour Force Survey (LFS) with auxiliary data from Employment Insurance Statistics and demographic population projections. Small area estimates improve data availability and the precision of estimates, supporting more effective development and evaluation of employment policy in smaller communities and rural areas.

Small area estimation improves data availability for small towns and rural areas
Using small area estimation, modelled estimates of employment and the unemployment rate are now available for areas in which the LFS sample size is too small to produce reliable estimates. Currently, the most detailed level of geography available from the LFS in many provinces is the economic region: a grouping of census divisions created as a standard geographic unit for the regional analysis of economic activity. Under the 2016 Standard Geographical Classification, there are 76 economic regions, compared with more than 600 CAs and SLAs. Local, granular data allows for a deeper understanding of the diverse labour markets, which often encompass both cities and rural areas with distinct economic dynamics.

For example, small area estimation data reveal notable variations in employment rates across the different types of areas. Among SLAs—representing small towns and rural areas—the median employment rate was 54.9% in June 2024, with half of the areas having employment rates between 48.3% and 57.9%. In comparison, among CMAs—cities with populations of at least 100,000—the median employment rate was 62.6%, with half of the areas having employment rates between 61.0% and 64.8%.

Small area estimation improves the precision of estimates
Small area estimation also presents an alternative method to study the labour market in larger cities, such as CMAs. The LFS is designed to produce CMA estimates as three-month moving averages to reduce irregular movements caused by relatively small sample sizes. By leveraging modelling techniques, small area estimation can provide improved precision of monthly estimates for CMAs compared with LFS estimates. Furthermore, because all data are from the reference month, small area estimates can be more responsive to changing economic conditions, allowing for better analysis of trends.

Note that the production of small area estimates depends on the availability of external data for the reference period, and as such, the small area estimates are less timely than LFS estimates.

Available here: https://www150.statcan.gc.ca/n1/daily-quotidien/240917/dq240917d-eng.htm