Income Inequality and Insecurity in the Canadian Labour Market

Uneven distribution of employment opportunities has adverse effects on any given labor market. This leads to inequality. Inequality in this perspective refers to differences in statuses, experience and outcomes among various groups of individuals (Krahn, Lowe, " Hughes, 2011). The inequality gives rise to a sense of insecurity to these individuals. Insecurity refers to lack of dependable income and work and to the presence of dangerous and difficult working conditions (Krahn, Lowe, " Hughes, 2011).


This phenomenon can be explained theoretically by examining the labour market segmentation theory. This theory shows that the labour market is neither single nor unified but there exist two distinguishable segments. The idea of two markets comes from the existing characteristics of the job and also the characteristics of the workers in the market. Work in these markets can be divided on the basis of quality, gender, race, skills or by any other characteristics. The market comprises of good jobs and bad jobs. The good job market offers a sense of continuity and security and it is mostly dominated by those with skills. Conversely, bad jobs do not pay well and do not offer a sense of security and continuity (Krahn, Lowe, " Hughes, 2011). Movement between these two categories is limited with bad jobs being occupied by women, persons with disabilities, immigrants, radicalized minorities and the older members of the society.


Inequality and insecurity have affected various social groups. The women, racialised minority, persons with disabilities, youth, aboriginal workers and older workers seem to occupy precarious positions in the labour market. These groups of workers face similar problems, of high unemployment rate, low income and are likely to be found in blue-collar jobs rather than white collar jobs. For instance, the number of women participating in the labour market is slightly below that of men. This is mostly as a result of the high social pressure that is placed on women such as uneven distribution of domestic work and childbearing. Data has also shown that women occupy less supervisory role at a lower pay compared to men. Racialized groups like women face the same problems of low pay, low participation rate and high unemployment. They are not unionized and therefore, tend to be segregated into certain occupations and with low chances of promotion. Low-income work results into insecurity among members of the racialized group. Workers with a disability also face inequality and insecurity in the job market. They are likely to face double or triple jeopardy. Fluctuations in the labour market have a negative impact on this group and are therefore likely to lose jobs in periods of economic downturn. Youth, aboriginal workers and older workers are becoming over-represented in the precarious positions. The aboriginal for example despite being educated are finding themselves at the same level as the uneducated. The labour market for the older workers has also changed due to a number of factors. In the Canadian labour market, there is a trend that is occurring whereby older members of the workforce are refusing to retire despite their old age. This is as a result of economic downturn, increasing life expectancy, loss of jobs and pensions. The low-income jobs have led to insecurity among older workers since most of them do not have retirement plans and their meager pay has not allowed most of them to purchase homes or save for their retirement. The fact that older workers are remaining in the work market for long has affected the employment chances for the youths. The young workers are also affected by lack of experience and therefore are highly isolated in the job market. Moreover, young workers are likely to operate in poor work conditions and under lots of surveillance. They are also paid poorly and have few opportunities for learning skills on the job (Krahn, Lowe, " Hughes, 2011).


In recent times the Canadian job market has become highly unequal and insecure. The two segments of good jobs and bad jobs best shows the inequality and insecurity in Canada. The bad jobs comprising of part-time, temporary and self-employment work offer little security and pay. Approximately one-tenth of the Canadian is engaged in permanent part-time work (Canada, Statistics, 2009). They prefer this type of work because of the less working hours associated with this type of work. However, working on part-time basis means that one foregoes retirement and other supplementary benefits. Furthermore, there is reduced access to promotion and learning opportunities. The pay is also meager and this leads to a sense of insecurity. Temporary and self-employment work like part-time work forms a group of non- standard employment that is highly unpredictable and unreliable. Non –standard work is therefore precarious since at one moment one may have a job while at another moment he might be jobless due to a number of factors such as injury to the worker, lack of work at that moment or the worker complained of violation in working conditions and he got fired.  For example, temporary work has terms that are seasonal, casual and with a predetermined end date. The increase in temporary work in Canada has given rise to the emergence of employment agencies. These employment agencies mediate between the employer and the employee. In Canada, inequality and insecurity can be traced in the minimum wages offered in different regions. In British Colombia, minimum wage ranges between $7.50 per hour to $ 9.50 per hour. This means that a person earning $8 per hour and working for 40 hours per week will make $16000 per annum (Canada, Statistics, 2009). Such a person will have a difficult time meeting his daily expenses and will have to share commodities such as housing in order to make ends meet.


Inequality in the job market is caused by a number of factors such as the level of skills, education, experience and sometimes gender and race. Moreover, the prevailing economic conditions have a direct impact on work inequality. With the economic downturn, there is high-income inequality while the opposite is true.


The government and employers have come up with various policies that aim to reduce work-related inequality and insecurities. To begin with, there has been an introduction better education facility among the aboriginals with the aim of increasing their employability chances. Efforts have been made to incorporate persons with disabilities in the work market. a policy is also being implemented in order to review the tax provisions and ensure that the tax system is progressive and fair. Moreover, redistribution of taxes is being done to ease income inequalities in all provinces. In addition, regulatory policies are being implemented hence promoting growth and productivity leading to a reduction in income inequality.


References


Canada, Statistics. (2009). The Canadian Labour Market at a Glance. Retrieved Feb 11, 2018, from Statistics Canada: http://www.statcan.gc.ca/pub/71-222-x/71-222-x2008001-eng.htm


Krahn, H. J., Lowe, G. S., " Hughes, K. D. (2011). Work,Industry, and Canadian Society. Toronto: Ceningngage Lear.

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