Tag Archives: labour force survey

‘Hipster’ is not a real job. Neither is not having a job.

12 Oct

Last week, the CCPA released a report (authored by yours truly) about youth un- and underemployment in Canada. It showed that, while youth unemployment in Canada is not insubstantial – 14.1% in 2011, up from 12.9% in 2006 – it’s still “low” compared to other OECD countries. In Greece, for example, the rate was 44.4% in 2011, and has been pinned more recently at 55%.  In Spain, it’s 54%; in Italy, 35%.

There’s no doubt that 1 in 7 young people unemployed is better than 1 in 2 or 1 in 3.

But it’s not great. As I argued in the paper, and as Carol Goar underscores in the Toronto Star today, the rates of tenuous employment (i.e., part-time, temporary) are on the rise among young people in Canada, and at a faster pace than among older workers.

The full paper is available here, but in brief, it shows that the rate of temporary, contract and term employment among workers under 30 has nearly doubled, from 6.9% in 1997 to 11.6% in 2011. For workers aged 30 and over, the rise has been less dramatic – from 4.0% to 5.7%.

When you break these figures down further, you see that education level plays a role. While young workers without a PSE degree were more likely to be unemployed or not in the labour force (likely because they’re still in school), those who do have a post-secondary degree are more likely to in short-term employment: 1 in 5 were working non-permanent jobs in 2011 – and half of them were part-timers.

This matters because non-permanent and part-time jobs tend to be lower paid (by virtue of working fewer hours and because the pay scales are usually different than full-time, permanent ones) and they usually lack access to employer-provided benefits. Moreover, spells in nonstandard work or unemployment have been shown to have long-lasting effects. (See chapter 7 in this book; or check out this article – sorry about the paywall.)

It also matters on a macro-economic scale, above and beyond the immediate earnings and well-being of individuals, because people who don’t make much money don’t spend much money, and then we’re all screwed.

Yet, as Carol Goar notes, there has yet to be any action on youth unemployment. I even got an email from a policy researcher with one of the federal political parties saying he was glad to see my report and distressed by the lack of action on the problem. Save for a few snarky and ill-advised ads by the BC government – which, as Andrew Langille over at Youth and Work notes, cost them over $600,000 – everyone thinks youth unemployment is a problem, but no one’s moving on it.

Zi-Ann Lum/The Huffington Post B.C.

Like Goar, I’m wondering why.

I have some theories. First, we think of youth itself as temporary. Even when it’s expanding or contracting or taking too long or going away too quickly, it’s still a phase of life we all grow out of.

Authorities of all stripes use this ‘fact’ when it’s convenient – like when they assure us young workers will ‘recover’ because they’re ‘resilient’, or when they simply wait out popular movements in the hopes that they’ll die when their instigators grow up – and ignore it just as often, when it’s time for a moral panic about whatever young people are wearing, watching, listening to or engaging in.

In the case of youth unemployment, we’re seeing a paradoxical (but quite logical, from a governmentality perspective) mix of abject terror over the threat of idle youth in Europe on the one hand, and the patronizing downplaying of rising youth unemployment here at home.  Those competing mentalities might have something to do with the all-out paralysis when it comes to policy development and action.

The federal government – aside from the NDP, whose benches are lined with twenty-somethings, and few of them ‘legacy’ politicians – are also just plain out of touch with young peoples’ lives, issues, potentials, concerns, challenges and desires. In their world, Justin Trudeau is the touchstone for youth (at forty!!!), and “youth” is synonymous with “student.”

The latter point might be another reason why nobody’s doing anything about youth unemployment: the base youth unemployment rate doesn’t distinguish between high school students, college and university students, graduate students and non-students – so we don’t know how worried we should be. Are these young workers looking for employment? Are they actually available to work? Are they still living with their parents? Do they have families to support? The easy way out of all of these hard questions is to assume that the vast majority are students whose primary interest isn’t paid employment anyway.

More generally, the political economic climate of our time doesn’t allow for government-driven solutions. We’re tinkering with tiny taxation issues and putting up stimulus spending billboards waiting for the invisible hand to swoop down and… I don’t know… tickle Canadian businesses until they give in and invest more of their lazy money in our economy?

Yet the answer might not be to copy the solutions of the past. Reviving the Keynesian welfare state is nearly as ghoulish as channeling Reagan and Thatcher. The Keynesian model of yesterday was good for yesterday’s worker: a white man, supporting a family. It depended on a supply of low-wage labour from the Global South. In short, it worked for a world that was wildly out of balance, but it needed that imbalance to work.

That’s not to say there’s no room for Keynesian ideas in the days ahead, but that nostalgia for the exclusionary welfare state of days gone by is a form of economic hipsterism worth of a few ill-advised ads of its own.

We are one of the most highly educated countries in the world, and our economy isn’t totally in the shitter yet. Why can’t we figure out ways to put young people to work in decent, well-paid, productive jobs? If the problem of the next decade is skilled labour shortages – although this is debatable – why aren’t we attracting young people to the right programs, with free tuition or generous bursaries, to fill them? Why aren’t we investing in apprenticeship programs to employ young workers while training them in the skills the economy needs, like the OECD recommends? Why aren’t we killing two birds with one stone by putting young people to work on pressing public issues – why, for example, can’t we employ young workers on projects that address the need for better public transit in many major urban centres, cleaning lakes and rivers under threat of destruction, re-settling rural communities that are now in decline, or developing and implementing a national childcare strategy?

The circumstances were different in Greece, Spain and Italy before half of their young workers became unemployed. But they didn’t get there overnight. If Canada waits too long, its young people aren’t just going to grow up. They’re going to grow angry.

How to Eliminate Tuition Fees (and do it right)

9 Jun

Quebec student group CLASSE has come forward with an offer of what it would take to end their almost four-month strike: the elimination of tuition fees by 2016. The plan is based on taxing banks, starting at 0.14 per cent per cent this year, and rising to 0.7 per cent over the next four.

According to CLASSE’s calculations, the tax would net $400M per year – enough to fund a tuition-fee-free post-secondary system.

Of course, this proposal has media outlets like The Sun and the National Post ‘setting their hair on fire’, as my friend Erika Shaker would say. Already, we have the usual erudite reactions from internet trolls and their startling real-life manifestations. Over the next few days, we will surely (?) begin to see more semi-researched arguments that come within ten feet of a fact.

Despite what we’ve heard and will continue to hear from the knotted-knickers crowd, eliminating tuition fees is not a pie-in-the-sky idea. It’s radical, yes – radical is context-dependent – but it’s not unachievable. It’s utopian, and idealist, but that doesn’t mean it isn’t also practical and pragmatic. These things sometimes, indeed often, go together. We urge our children and each other, ‘follow your dreams,’ ‘be the change you want to see in the world,’ and to grab life by whatever of its body parts are within grasp. But when it comes to collective dreams, we’re a little more reserved.

Here I want to propose that eliminating tuition fees is a viable option, and it’s worth going for – but it isn’t, in itself, a panacea. It has to be combined with other policy changes and considerations in order for it to truly contribute to the leveling aims universal higher education is meant to achieve.

First, on the viable option bit. There are now twenty OECD countries that charge zero or only nominal tuition fees to citizens. Some of these countries, like Greece, are struggling – but so is the US, and so is Canada, and so is the UK, and many other places that have begun to eat themselves alive now that neoliberal economic policies have failed to deliver on their promises of booming, invisible-hand-driven markets. None of these places got where they are by offering too much to their citizens.

Other countries that fund university through taxes boast thriving economies: Argentina and Sri Lanka, for example, were among the top ten fastest growing economies in 2011. The GDP of Sweden, Mauritius, Morocco, Kenya and Peru grew faster than the world average that year, while Brazil, Malta, Germany and Finland beat Canada, the UK and the US handily. There may not be a hard and fast relationship between how university is funded and a country’s economic performance, but that just adds to the argument for the elimination of tuition fees.

In Canada, we have numerous ways to collectivize and subsidize the costs for post-secondary education for everyone. CLASSE’s proposal is interesting because it places the burden on banks (perhaps they watched this tiny person’s presentation) – you know, the same banks whose representatives circle like vultures, in the subway stations students tend to pass through on their commutes, or in the Student Union Buildings of nearly every major university, offering free swag to any broke chump who’ll sign on the dotted line (a practice which, for the record, should be banned).

If taxing the banks is rejected in our wealth-sycophant public forum – which it will be, because banks will, oh, I don’t know, pick up and move operations, restrict spending, raise interest rates and user fees, or whatever else we allow major economic players to get away with in the name of ‘fairness’ and the free market – there are alternative ways to fund an education system.

Some of the countries listed earlier just take university funding out of their considerable tax coffers. In Canada, we’d have to raise taxes (or redirect money away from the F-35s and other pet projects of the overgrown schoolboys we call Conservative Government Ministers) to be able to earmark the necessary funds for a publicly-funded university system. But not by much: for example, a 2011 report from the Canadian Centre for Policy Alternatives calculated that if every family in Ontario paid a tax of $170 per year, we could fund the university education of every aspirant student in the province.

But while the publicly-funded university is economically viable, it does present some real problems for those of us who see it as a democratizing, leveling social good. For one, ‘free’ university (and it isn’t free, it’s collectivized, and there’s a difference, and we KNOW THIS ALREADY, GEORGE JONAS!) tends to benefit mainly the middle class who would find some way to afford it anyway. There are cultural, historical reasons for the demographic makeup of universities, and eliminating fees won’t open the floodgates to poor, rural, or minority students in any huge or immediate way. There need to be policies in place to ensure that students who are underrepresented in universities and colleges are able to take advantage of tuition-free post-secondary education, and we need to ensure that, to the extent possible, our pedagogical instruments, course content and cultures are welcoming to diverse students, and not just the best and the brightest middle class students from other countries.

Related to this is the downside of funding universities through individual income taxes: if it is predominantly the middle and upper classes who benefit from tuition-free post-secondary education, and yet the tax is applied universally in an only somewhat progressive tax scheme, the funding model amounts to redistributing income from the lowest economic quintiles to the highest – and we already have enough of that going on, thank-you-very-much. A shift in tax policy could mitigate these effects, but so could the CLASSE model.

The latter is especially compelling because it sidesteps the problem of some of ‘us’ subsidizing the ‘others’ individually – something we seem to be really uncomfortable with, judging by our (apparent, unproven) contempt for taxes.

But it doesn’t evade another, somewhat justified point of resistance to the elimination of tuition fees: that of the loafers who will surely take advantage of a tuition-free spot in a university classroom without putting in the work necessary to succeed, without learning anything, without ever giving society a return on its investment. On the one hand, this critique smacks of similar ones made of public healthcare – that ‘we’ shouldn’t have to subsidize the medical treatment of people who eat junk, smoke cigarettes, drink too much alcohol, take risks in their leisure pursuits, etc. It’s similar also to the anti-union rhetoric that comes from grudging union members and former members – that seniority systems allow people with no work ethic to languish at the top while hardworking folks hit the seniority ceiling early. To these arguments, I usually say ‘one bad apple don’t spoil the whole bunch, girl.’

But here, I’ll admit that, particularly in a society where there is so much pressure for high-school students to apply to and enroll in university, there’s a real risk of deadweight. It’s already happening in cases where well-intentioned parents support their kids in university when the kids aren’t ready, or don’t want to go, or don’t know why they’re there. It’s definitely an issue with varsity athletes on sports scholarships – I can’t tell you how often I hear of the student who “has to” maintain a certain average (i.e., as a professor, you “have to” give them this average) in order to keep his or her athletic scholarship.

Thus, there’s a good argument to be made for students needing to maintain a certain GPA, and maybe even some volunteer work or short placements in industries with labour shortages (or, for some folks, military service, which ain’t my thing), and even incentives to move to or stay in rural or Northern areas which struggle to attract recent graduates. In other words, there’s room to make students ‘pay’ for their tuition-free education in other ways – ways which may actually strengthen the social fabric and the economy rather than burdening students with exorbitant debt and stifling their much-needed spending for years to come.

Finally, the case for eliminating tuition fees often revolves around the university specifically, leaving out technical institutions, vocational schools, community colleges. This is especially a problem given the present mismatch between skilled labour supply and demand in Canada. In short, from the problematic but entrenched view of universities as strictly job-training apparatuses and not civic institutions that produce thoughtful, critical subjects, there are too many people enrolled in and graduating from them. This is evident, first, in unemployment rates of recent grads. In 2011, 7.4% of people aged 30 and under with a university undergraduate degree were unemployed, compared to just 3.8% of those over thirty with the same level of education. Only 48.1% of 30-and-unders with university degrees had full-time, permanent jobs, compared to 57% of older university graduates (and this includes the downward pull of retirement-age people in that category). For 30-and-unders with post-graduate degrees (PhD and professional schools, for example), the unemployment rate was 6%, only 41.5% had full-time, permanent gigs, a whopping 18% were working full-time, temporary or contract jobs (a 6% increase since 2001), and a further 16% had part-time jobs (8% of them short-term contracts). The picture for older post-graduate degree-holders was better, with only 4% unemployed, 56% in full-time, permanent jobs, 6% in full-time temporary jobs, and 7% in part-time jobs. (All of these figures are unpublished data from the 2011 LFS, author’s calculations.)

Meanwhile, we know we have skilled labour shortages in many areas. Anecdotal reports from employers suggest we need more professional truck drivers, more mining and geological professionals, and more engineering, science and technology graduates. Last year, the Canadian Chamber of Commerce predicted shortfalls of “163,000 in construction, 130,000 in oil and gas, 60,000 in nursing, 37,000 in trucking, 22,000 in the hotel industry and 10,000 in the steel trades” over the next decade.

While Canada’s Next Great Prime Minister, Margaret Wente, would prefer to simply chastise people who opt for English degrees when there are skills shortages in other areas, what we need is a national strategy that connects people with jobs while they are still at the point of choosing what to do with their lives, career-wise. We need incentives, not disincentives. We don’t need weird tweaks to EI that push out-of-work lobster fishermen to try their hands at telemarketing. We need to think long-term, not only about the spots that need filled, but the people who are going to need spots.

We can’t remove the financial barriers to university without also removing barriers, and perhaps increasing incentives, to the programs that will produce graduates with the skills we need for a booming economy. These aims can also foster a fairer, more leveling economy. But it can’t be a piecemeal approach.

Proposals for eliminating tuition aren’t simply idealistic or utopian; they are the definition of pragmatic and utilitarian. The latter terms are often used to ferry in austerity measures and justify harsh cuts to social programs – they’re often abused, particularly in the liberal media and conservative political rhetoric. But their philosophical meaning revolves around the good, and the greatest good for the greatest number of people. So let’s be pragmatic. Let’s be utilitarian. Let’s eliminate tuition fees, but let’s do it right.

Special thanks to Rollen Lee, Andrew Riddles and David Tough for the Facebook conversation that spurred and helped this post.

The “Other” Side of the Story

8 Jan

I was going to write a different blog post when, in the course of perusing the latest Labour Force Survey data on Statistics Canada’s website (as you do, on a Sunday morning), I came across a table that stopped me in my tracks.

This is a table the LFS releases with each cycle, showing the reasons part-time workers (comprising one-fifth of all workers in our labour force) give for working part-time.

Look closely.

You’ll notice that each of the “voluntary” reasons for part-time work is spelled out in the table. The most common reason for working part-time – largely due to the fact that the under-24 age group pulls the figure up – is going to school (29%). Close by, at 26%, is personal preference – which is why the majority (55%) of the plus-44 crowd of part-timers (that’s right, 45 or 85, you’re in the same category now) work part-time hours. But in between those two high-ranking answers is the seemingly benign “Other” category, with 27%.

What are these “Other” reasons? Oh, just business conditions and unable to find full-time work.

Fully 27% of part-time workers of all ages would work full-time if they could. More strikingly, over one-third of prime-age part-timers – the 25-44 group – work part-time involuntarily, because they can’t find full-time work or because of “business conditions”, which sounds to me like another way of saying full-time work is impossible to find in their occupational field.

And yet the story, as Stats Can tells it in the news release that usually accompanies the LFS, is about a slight rise in employment and unemployment. That’s the first line of the release agency bureaucrats sent to major media outlets, and that’s what we heard on the radio, read in the newspaper and saw on TV news: a slight bump in employment, accompanied by a higher unemployment rate due to an increase in labour force participation; a bit of good news, a bit of bad news, adding up to mainly worrisome news that Canada’s economic recovery could be “running out of steam.”

What about the thousands of people who are, by virtue of not being able to find a job that will employ them for more than 30 hours a week, under-employed? Why isn’t that part of the story?

The official release from Stats Can does give a nod to the part-time numbers, but only to note that “an increase of 43,000 in part-time work was partially offset by a decline of 26,000 in full-time employment.”

Involuntary part-time work has been rather high for years now. Older data compiled by the Canadian Council on Social Development shows that it increased markedly from 1976 (11%) to 1994 (35%), following the business cycle to some extent, but also increasing independent of economic recessions, recoveries and booms. However, recent OECD data – which appear to be the best source of comparison I have at my disposal right now – suggest that the percentage of part-timers who would prefer to work full-time has increased dramatically over the last five years, from 21% in 2007 to 27% in 2011.

If we mined deeper, I bet we’d find that most involuntary part-timers are women (as has historically been the case), that there are interesting and meaningful differences between smaller age groups, separating the 20-24 crowd from the 15-19 crowd, and the 25-34 crowd from the 35-43 crowd.

These are significant figures, and they’re too important to be relegated to the nondescript “Other” category.

Unless…

THERE IS SOMETHING STATISTICS CANADA DOESN’T WANT US TO KNOW.

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