Precarious employment takes a toll

Job loss. Unemployment. Income gaps. Over the past couple of months—and during the lead up to Toronto’s recent municipal election—there’s been a lot of talk about all that ails the city’s increasingly fractured labour market. Job creation has slowed considerably. Toronto’s youth unemployment rate is more than double the national average. And the income gap between older and younger workers is growing at an alarming pace.

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This joint report between United Way and McMaster University examines our region’s rapidly-changing labour market

While the city’s muted job creation tends to grab most of the headlines, there’s an equally concerning labour trend afoot. In the last 20 years, we’ve seen a 50% rise in precarious, or unstable employment, according to research conducted by United Way Toronto and McMaster University.

In fact, more than 40% of people in the Hamilton-GTA region experience some degree of precarity, or insecurity, in their work, which has serious economic and social consequences for Toronto.

As this recent Globe and Mail article points out, “the shift to a just-in-time labour market creates a host of difficulties for long-term planning, eligibility for jobless benefits, and often results in a diminished ability to save.” Erratic hours “also create challenges in pursing an education, arranging childcare and qualifying for a mortgage.”

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United Way’s Michelynn Laflèche recently appeared on TVO’s The Agenda to discuss precarious employment.

“Individuals in precarious work face many challenges,” says Michelynn Laflèche, United Way’s Director of Research, Public Policy and Evaluation, who recently appeared as a guest speaker on TVO’s The Agenda to discuss this new work reality. “They earn 46 per cent less than those who are securely-employed. They delay having families, are often unable to pay for their children’s extracurricular activities and experience higher levels of anxiety and stress. Precarity impacts the health of individuals and families and the way in which people can contribute to their communities.”

Fixing the problem won’t happen overnight. But solutions for mitigating the impact of unstable work on individuals, families and entire communities are already underway. “Our research, combined with United Way’s influence, was instrumental in bringing about changes to Ontario’s Employment Standards Act by introducing protections around lost wages for precariously-employed individuals,” says Wayne Lewchuk, a co-author of the “It’s More than Poverty: Employment Precarity and Household Well-being” report and a professor in the economics and labour studies department at McMaster University.

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“Closing the Prosperity Gap” looks at solutions for reducing income and employment inequality

The findings of this report also helped spark a much larger conversation about how to build a better labour market that works for everyone.  “I think we have to make employers in the government, private and charitable sectors understand what the risks are to families, communities and to businesses,” says Laflèche.  “We need to build a case that helps employers think about how to operational their business in a way that  treats people with dignity and respect and provides the kind of support people need to live a decent life.”