No 1848 Posted by fw, December 17, 2016
“Despite talk of helping the middle-class, the Canadian Imperial Bank of Commerce says jobs in Canada are currently undergoing “a slow but steady deterioration.” The recently released CIBC report also finds that good paying, full-time jobs are increasingly being displaced by precarious part-time jobs and self-employment.” —Press Progress
The Press Progress article goes on to summarize key findings of the 4-page CIBC report, On the Quality of Employment in Canada published on November 28, 2016.
Below is a repost of the Press Progress summary, including 6 of 10 graphs that appear in the full report. At the end of the post are links to three related studies. To read the original piece, click on the following linked title.
Is the quality of jobs in Canada declining?
One of Canada’s big banks looked at the question and they have an answer: “we think so.”
Despite talk of helping the middle-class, the Canadian Imperial Bank of Commerce says jobs in Canada are currently undergoing “a slow but steady deterioration.”
The recently released CIBC report also finds that good paying, full-time jobs are increasingly being displaced by precarious part-time jobs and self-employment.
Let’s take a closer look at what they found:
Job quality is falling
While job quality has been falling steadily for the last 25 years, it nosedived during the recession and has never fully recovered.
As the report notes:
“There was an unmistakable jump in the share of part-timers in the Canadian labour market during the recession. That rate rose from 18% to 20% during the recessionary peak. But at the current 19.3%, that share is still elevated.”
This jump is mostly due to the growth in part-time jobs for people over the age of 55 – more than 60% of new part-time jobs were filled by workers 55 and older.
Although CIBC notes some of this “reflects some demographic forces,” they add that “the increase in part-timers among this age group accrued during the recession suggests that beyond pure demographics, there is an element of fragility here.”
On the other end of the age spectrum, the share of young people with jobs has also been steadily declining since the early 1980s, with youth employment significantly lower than it was three decades ago.
Meanwhile, the share of workers who find themselves in low-paying jobs is at an all-time high – CIBC points out “the share of workers who are paid below the average wage has risen over the years to just under 61% in 2015.”
So, older workers are stuck in part-time jobs and young workers don’t have jobs.
What about “prime-age workers” between the ages of 25 to 54?
“The story is the same,” CIBC says. “The share of lower-paying jobs has been on the rise.”
Overall, those middle-income earners have seen “sub-par growth” over the last decade.
But CIBC did find “good news” for those “at the lowest end of the wage spectrum.”
According to the report, policies aimed at increasing the minimum wage have led to “relatively healthy wage gains” over the last several years for Canada’s lowest-paid workers:
“The good news is that those at the lowest end of the wage spectrum are seeing relatively healthy wage gains—not due to bargaining power but mostly due to policy changes regarding minimum wages. But the group closer to the middle of the wage spectrum have seen sub-par growth throughout the entire cycle.”
Things have gotten steadily worse for young workers in Canada since the 1970s. Here’s the proof by Press Progress, December 13, 2016 — Looks like Justin Trudeau’s “new reality” is nearly four decades old. Although Prime Minister Trudeau and Finance Minister Bill Morneau have lately been advising Canada’s millennial workforce to “accept” the “new reality” of a temporary contract work and moving from “job to job to job,” new data from Statistics Canada confirms things have actually been heading in this direction since the mid-1970s.
Inequality is already transforming neighbourhoods in Canada’s biggest cities by Press Progress, July 12, 2016 — The nature of work and poverty is changing and that’s changing the landscape in Canada’s biggest and richest cities too. A new report by the Canadian Centre for Policy Alternatives. taking a close look at urban centres in Ontario, shows patterns of growing inequality are increasingly being mapped onto big cities in Ontario and across the country
Half of all twenty-somethings in two of Canada’s biggest cities are stuck living with their parents by Press Progress, June 15, 2016 — What do you get when you combine a precarious workforce straddled with student debt and out of control housing costs? A new report on “young adults living with their parents” from Statistics Canada suggests economic forces are contributing to a “delayed transition” to quote-unquote “adulthood” for millions of Canadians in their twenties.
FAIR USE NOTICE – For details click here