Is the Growth in Part-Time Jobs Good for Canada?

Many of us skim breaking news headlines and quickly form opinions on the subject. Social scientists studying the impact of digital media on human behaviour refer to this phenomenon as the “social media effect.” We’ve grown accustomed to short-form communication, catchy headlines, quick meals, and instant results. However, what if we learned that the headline doesn’t tell the whole story? And that the truth of a story being pitched to us usually lies in the details of the report, provided we know what to look for.

For instance, let’s consider the report released by Statistics Canada today. While the headline “Unemployment rate in Canada drops for the third time in a row!” presents positive news, it doesn’t provide enough information to help us form a balanced opinion.

According to the report, Statistics Canada contradicted economists’ expectations by signalling a recovery in the job market. The economy added 54,000 jobs in November, bringing the total to 181,000 since September, following nearly negligible growth from January to August. This led to the unemployment rate dropping from 6.9% in October to 6.5%, continuing the decline from 7.1% in September.

However, there is a crucial detail that some might overlook. Statistics Canada attributed this positive news to an increase in part-time jobs. Is that a good thing?

It’s important to note that most, not all, part-time jobs replace full-time positions rather than add to available opportunities. This is a strategy often employed by employers seeking a quicker and cheaper alternative to hiring full-time staff. Major big-box stores in North America frequently utilize this practice, leading to an imbalance in a nation’s economic health. A strong economy requires a stable and dedicated workforce in full-time roles to sustain growth.

Moreover, the lack of full-time jobs can contribute to economic decline, as businesses may struggle to find enough skilled and qualified workers who meet their job profiles.

On the other hand, part-time workers face several challenges commonly referred to as the “Part-Time Worker Trap.”

These challenges include:

– “Just-in-time scheduling,” which leaves the number of hours each worker is assigned at the employer’s discretion.

– A lack of worker benefits.

– Uncertain and irregular hours.

– Fluctuating paycheques that lead to income unpredictability, affecting workers’ ability to apply for loans and mortgages.

– Job insecurity, which keeps part-time workers in a constant state of uncertainty.

The rest of the report adds to these concerns. For example, the growth in part-time work has outpaced that of full-time work over the past three months, with part-time jobs increasing by 103,000 compared to only 78,000 for full-time roles since September.

Job gains were primarily driven by a few industries: healthcare and social assistance added 46,000 jobs in November, accommodation and food services added 14,000, and natural resources accounted for 11,000. Conversely, job losses were mainly noted in the manufacturing, wholesale, and retail sectors, which are sensitive to trade conditions. The reasoning behind this trend is clear: decisions made during the Trump administration to make America “great again” have had ripple effects.

Additionally, the report indicates that the labour force decreased by 26,000 in November, with the participation rate falling by 0.2 percentage points to 65.1%. This decline warrants an exploration of factors such as the anticipated retirement of baby boomers and the recent trend of foreign workers leaving Canada.

So now that we have a fuller picture, do we still feel satisfied with the headline? Or has our understanding of the situation grown more balanced?