Growing income volatility is causing tough financial challenges and mounting stress for millions of Canadians, according to a new report by TD Bank Group. TD’s research found that unpredictable and variable income is associated with lower overall financial health for those affected, as well as lower financial confidence and increased financial stress.
Income fluctuations are tied to the rise of precarious employment in the changing labour market, as highlighted in United Way Toronto and York Region’s ongoing research. It shows that nearly half of all workers in the Greater Toronto and Hamilton Area (GTHA) are facing this new reality of precarious work. These workers are more likely to experience irregular income, suffer more anxiety, and have more difficulty making ends meet. This, in turn, undermines their family, work and social relationships and overall quality of life.
While the labour market has changed, our employment laws and income security policies have been slow to adapt. Most of these policies were developed at a time when standard, full-time permanent jobs were the norm, and they haven’t undergone major changes since.
A changing labour market doesn’t have to be a bad thing. To make it work for everyone though, we need a coordinated response by government, labour, employers and community organizations to ensure that those who are most vulnerable receive the supports and protections they need and policies are in place to mitigate negative impacts on people, households, businesses and communities.
This is why the Government of Ontario’s imminent response to the Changing Workplaces Review Final Report is so timely and critical. Keeping our labour markets dynamic and flexible, while also supporting people engaged in non-standard employment, requires new policy and institutional approaches.
Finding the right balance between competitiveness and job stability, and between the needs of employers and workers will not be easy. But Canadian employers have shown interest in learning more about the impacts of this new reality for their workers and are already engaged in discussions with organizations like United Way, KPMG and Prosper Canada to understand how businesses can also contribute to and benefit from a more secure workforce.
We are at an important crossroads for Ontario and leadership from all sectors is critical to building the momentum and support needed to modernize our employment standards and practices. If we can build consensus, work together, and move forward with purpose, we can get at the root causes of growing income volatility and reduce its financial and human toll on individuals, families, communities and our economy.
We look forward to the Government of Ontario’s proposed legislation later this year and a thoughtful, balanced agenda that builds inclusive prosperity for all Ontarians. With the right policies, we can help our businesses to thrive, while also enabling Ontarians to achieve the financial stability they seek and the ability, once again, to plan for and invest in the future they want for themselves and their families.
It will take all of us working together to develop a labour market that works for everyone, and we encourage the provincial government to exercise its leadership on this issue and set Ontario on the right course.