Low-paid work and economically vulnerable families over the last two
decades
by René Morissette and Garnett Picot
Business and Labour Market Analysis Division
Analytical Studies Branch research paper series, No. 248
Context
Between 1981 and 2003, real GDP per capita rose 43% in Canada. Furthermore,
workers' human capital rose dramatically, especially among women.
The proportion of female workers with a university degree doubled, rising
from 10% in 1981 to 22% in 2003. The corresponding proportions for men
were 13% and 19%, respectively. The workforce also became more experienced,
as the average age of workers increased from 34.3 to 37.8 during that
the period. In this context, has low-paid work become less prevalent?
Has the proportion of employees who are low-paid and live in low income
families dropped?
Objectives
The goal of this study is to summarize a series of research papers
recently completed in the Business and Labour Market Analysis Division
of Statistics Canada, regarding low-paid work and economically vulnerable
families.
Findings
Despite substantial growth in workers' educational attainment
and experience, the proportion of jobs paying less than $10.00 per hour
has remained fairly stable since the early 1980s. However, union coverage
in low-paid jobs has dropped, especially for males.
The risk of job loss has changed little but the proportion of newly
hired employees who hold temporary jobs has increased markedly, thereby
indicating important changes in the employer-employee relationship.
Despite their rising educational attainment, most low earners (except
women aged 25 to 29) have not seen their chances of escaping low earnings
improved between the 1980s and the 1990s.
Of all full-time employees, 5% were low-paid and lived in low income
families in 1980 and 2000. In 2000, individuals with no high school
diploma, recent immigrants, unattached individuals, lone mothers and
persons living alone accounted for fully 71% of all full-time workers
in low-paid jobs and in low-income, but only 37% of all full-time workers.
While members of these five groups account for the majority of low-paid
workers in low-income families, two of these groups have seen their
economic position declined significantly: low-educated couples and recent
immigrants.
Data sources
- Census of Population 1981-2001;
- Survey of Work History of 1981;
- Survey of Union Membership of 1984;
- Labour Market Activity Surveys of 1986-1990;
- Labour Force Surveys of 1997-2004;
- General Social Surveys of 1989 and 1994.
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