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Future of Work

A curated resource of recent research on trends shaping Canada's labor market.

“The Size and Characteristics of Informal (“Gig”) Work in Canada”. Bank of Canada, Staff Analytical Note, 2019-6.

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Key Takeaway
New technologies have led to a significant increase in the share of Canadians involved in non-standard or informal work arrangements, particularly among those who are less than 25 years of age.

New technologies have led to a significant increase in the share of Canadians involved in non-standard or informal work arrangements, particularly among those who are less than 25 years of age. Official labour market statistics in Canada do not fully reflect this new trend, suggesting that employment and wage growth figures may be biased downwards. The authors estimate that taking these new forms of work into account would increase the labour force participation rate by approximately 3 percentage points overall, and by 8 percentage points for youth. Further, using the Canadian Survey of Consumer Expectations, the authors find that participation rates in informal jobs are strongly correlated with weak labour market conditions. For instance, informal job participation is higher in provinces where the unemployment level is high and wage growth is weak. Supporting this correlation, the authors note that 15% of people with informal jobs stated they could not find a standard work position and 37% said they wanted to earn extra money to compensate for negative labour market conditions such as job loss, reduced hours, reduced pay, and/or stagnant wages. Informal work participation rates are also higher among those who fear losing their main job in the coming year and those who work parttime because they cannot find a full-time position. More than half of these informal workers would prefer to have a regular, formal job.

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