FEWO Committee Report

The Committee heard from most witnesses that women’s labour market experiences and employment patterns are different from those experienced by men. Ms. Armine Yalnizyan noted “[t]hough women make up 47% of the labour market, generally speaking they are paid much less than men.”[35] Women tend to work in part-time positions, often in precarious employment.[36]

Professor Kathleen Lahey explained to the Committee that there are two workforces—one that is a standard employment workforce and the other the non-standard employment workforce:

We have the standard employment workforce, which is substantially male-dominated, however you look at the numbers. Here, men receive 60% of the cash money to be earned and women are left with 40%, and men hold over 60% of the full-time jobs and women have fewer than 40% of the full-time jobs. It's a segregated economy in which women have 69% of the part-time jobs and men have a very small share.[37]

I. Unemployment Rates, Past Recessions and the Current Recession

Figure 7 presents the official annual rate of unemployment of men and women between 1976 and 2008. As can be seen, the official annual rate of unemployment of women surpassed that of men in the late 1970s and 1980s, but the annual rate of unemployment of men has consistently surpassed that of women since the year 1990.

Figure 7: Annual Rate of Unemployment, 1976-2008

Source: Statistics Canada, “Labour Force Historical Review”, 2008; and the Library of Parliament.

The impact of past economic recessions can also be assessed from this graph and be used in anchoring expectations regarding the impact of the current economic recession. As noted by HRSDC, “[i]f past experience is any guide, it shows that recessions of the 1980s and 1990s saw fewer women than men lose their jobs. This effect was largely related to women's relatively lower representation in the goods-sector industries hardest hit by the recession, such as manufacturing, construction, and primary industries.”[38]

The last two recessions in Canada occurred in 1982 and 1990. The 1982 recession was particularly severe with a drop in Gross Domestic Product (GDP) of approximately 6.7% over a period of 18 months. The milder 1990 recession, which began in the second quarter of 1990, contracted the GDP by approximately 3.2% over the following 12 months. In both recessions, more men lost jobs relative to women, especially in the milder 1990 recession. During the 1982 recession, the annual rate of unemployment increased from 11.2% to 12.3% (increase of 1.1%) and from 10.7% to 11.6% (increase of 0.9%) for men and women respectively between 1982 and 1983. During the 1990 recession, the annual rate of unemployment increased from 8.2% to 10.8% (increase of 2.6%) and from 8.1% to 9.7% (increase of 1.6%) for men and women respectively between 1990 and 1991.

According to the April 9, 2009 Labour Force Survey, employment consistently fell each month since October 2008, with net job losses totalling 357,000 over this period. This represents the largest decline in percentage terms over a five-month period since the 1982 recession. More specifically, full-time employment has declined by 2.8% (loss of 387,000 jobs) while part-time employment has increased by 0.9% (gain of 30,000 jobs).[39]

 As of March 2009, Canada’s official rate of unemployment stands at 8.0%. This represents a 1.9 percentage point increase relative to the previous year when Canada’s unemployment rate stood at 6.1%. Figure 8 presents the official rate of unemployment between January 2006 to March 2009.

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Figure 8: Official Rate of Unemployment, January 2006 to March 2009

Source: Statistics Canada, “Latest Release from the Labour Force Survey”, April 9, 2009.

Since the beginning of the current Canadian recession, men have lost significantly more jobs compared to women. The rate of unemployment for men has increased from 6.8% to 9.0% (increase of 2.2%), whereas that of women has increased from 5.7% to 6.8% (increase of 1.1%) between October 2008 to March 2009.

According to Ms. Charette, women have experienced 15% of net job losses since October 2008.

Since October 2008, when employment losses really began, women have accounted for only 15% of net job losses, although they represent fully 47% of employment. This pattern is consistent with the current experience we're seeing in the United States and the European Union.[40]

At the same time, older women have seen improvement in their employment[41], as Ms. Charette pointed out:

Older women, 55 years of age and older, have done particularly well so far. They are the only demographic group that has seen an increase in both employment and employment rates since October.[42]

According to Statistics Canada data, the unemployment rate for women aged 55 years and older has increased from 4.7% in October 2008 to 6.1% in March 2009.[43] Individuals who are pursuing training or an education and who are not seeking employment are not considered in the labour force. Please refer to Appendix 5 for definitions.

According to the most recent data available at the time this report was drafted, the number of regular EI beneficiaries stood at 610,200 in February 2009. This represents an increase of 33.7% relative to the previous year and an increase of 7.8% relative to January.

Witnesses noted that in the current recession, less unemployed people will have access to EI benefits since coverage rates have declined:[44]

83% of the unemployed in the last recession were covered by Unemployment Insurance benefits. Between 1989 and 1997, that dropped precipitously from that proportion to 44%. So we are walking into this recession with 43% of the unemployed covered by Unemployment Insurance benefits.[45]

The Committee heard that even though the statistics indicate that men are losing their jobs in the manufacturing and commodity sectors, the recession will also impact the service sector in which women are predominantly employed on a part-time basis.

You're seeing the effects of men losing their jobs first because they're primarily being thrown out of commodity-producing jobs and manufacturing jobs. But we know that the next wave of job loss will be among women.[46]

Another measure of the unemployment rate compiled by Statistics Canada includes involuntary part-timers—individuals who prefer to work full-time but due to business conditions are unable to find 30 hours or more of work.[47] Involuntary part-time work tends to increase during periods of economic recession and decrease during periods of economic growth.[48]

Figure 9 presents women’s and men’s unemployment rates, including involuntary part-timers, between 1997 and 2008.[49] Women’s rate of unemployment surpasses that of men since 1997. It is worth noting that this gap has narrowed in recent years since Canadians have experienced a period of economic growth and lower unemployment rates.

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Figure 9: Annual Rate of Unemployment Including Involuntary Part-Timers* 1997-2008

* Involuntary part-timers are individuals who usually work less than 30 hours a week at their main or only job because of poor business conditions or because they could not find work with 30 or more hours.

Source: Statistics Canada, “Labour Force Historical Review”, 2008; and the Library of Parliament.

The Committee heard that part-time work is a significant factor in explaining why women are less likely than men to qualify for EI benefits and support initiatives.

Furthermore, women from racialized groups, women with disabilities, immigrant and refugee women and Aboriginal women are significantly disadvantaged in the labour market. They tend to experience higher rates of unemployment compared with other Canadian women. In 2006, 13.5% of Aboriginal women were unemployed versus 6.4% of non-Aboriginal women yet the participation rates were nearly the same (59.1% and 61.6% respectively).[50]

As Ms. Marie White, National Chairperson, Council of Canadians with Disabilities, indicated to the Committee, the unemployment rate for women with disabilities is 75%.[51] She noted that people with disabilities live in poverty and are an “underutilized resource” because they are excluded from the labour market.

Many of the people in my community, that of people with disabilities, live in poverty. We know that according to the International Labour Organization the annual loss of global GDP due to exclusion of people with disabilities from the labour market is between, in American dollars, $1.94 trillion and $1.73 trillion. So we are an underutilized resource.[52]

II. Non-Standard Employment Patterns

Non-standard work, such as part-time work, temporary employment and casual employment, encompasses employment patterns that deviate from the standard employment norm. Non-standard work is also described as precarious employment because of the insecurities that are involved in this form of employment.

As many people realize, growing numbers of workers in Canada are working in jobs that offer low wages as well as limited social benefits and statutory entitlements. As we might expect, certain forms of employment are particularly likely to be precarious, such as temporary and part-time paid employment and some varieties of self-employment. Taken together, the distinguishing feature of these forms of employment is that they differ from the traditional norm of the full-time permanent job. This traditional norm never extended to all workers in the past, but was dominant among men, especially white Canadian-born men. While many gender exclusions from this model of employment have been eliminated with formal equality, the full-time permanent job continues to be shaped in profound ways by gender relations.[53]

As Ms. Lucya Spencer from the Ontario Council of Agencies Serving Immigrants pointed out, a growing number of immigrants and women are employed in part-time and unstable work. In addition, they face “systemic barriers to labour market integration, including racism and discrimination.” [54] In her testimony, Ms. Spencer described the labour market realities of immigrant and refugee women:

OCASI member agencies have said that most clients get their first jobs in Canada through temporary agencies. Clients remain in temp work for many years, often up to and beyond ten years. Often they work at more than one job at the same time. They are rarely employed in a job that allows them to use their skills and qualifications, particularly those that made them desirable candidates for immigration to Canada, which results in them becoming what we call de-skilled immigrants.[55]

Ms. Marie White informed the Committee that women with disabilities tend to work in non-standard employment and find themselves excluded from employment insurance. She made the following suggestion:

We would suggest that the Government of Canada bring more women, particularly women with disabilities, into standardized employment with social benefits. We would like to improve access for women who have non-standard employment practices.[56]

Figure 10 shows that more women than men work in various forms of part-time employment.

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Figure 10: Men’s and Women’s Shares of Selected Forms of Part-time Employment, Canada, 2008*

Source: Custom Tabulation by Leah Vosko from Statistics Canada, Labour Force Survey 2008, Public-use Microdata Files (*Ages 15-64).

A. Women and Part-time Employment

For many individuals, part-time work may be an attractive employment option since they can combine paid employment with various activities such as caregiving, attending school or leisure pursuits. Statistics Canada’s Labour Force Survey identifies the main reasons for voluntary and involuntary part-time employment as:

1. Own illness or disability
2. Caring for own children
3. Caring for elder relative (60 years of age or older)
4. Other personal or family responsibilities
5. Going to school
6. Business conditions
7. Could not find work with 30 or more hours per week
8. Other reasons.

Figure 11 presents the number of involuntary and voluntary part-timers by reason for working part-time (i.e. less than 30 hours a week at main or only job) for 2008. Note that in Statistics Canada’s Labour Force Survey questionnaire, respondents who usually worked less than 30 hours per week at their main or only job are asked for the main reason for working part-time. Those individuals who answer for ‘business conditions’ or ‘could not find work with 30 or more hours’ are then asked if they sought full-time employment in the last four weeks. Those who sought full-time employment in the last four weeks are considered to be ‘involuntary part-timers’ and those who have not sought full-time employment in the last four weeks are considered to be ‘voluntary part-timers’. As shown in this figure, women outnumber men for all reasons for involuntary and voluntary part-time employment (See Appendix 5 for additional information on the Labour Force Survey).

Figure 11: Involuntary and Voluntary Part-Time Employment by Reason of Part-time Work by Sex, 2008

Source: Statistics Canada, “Labour Force Historical Review”, 2008; and the Library of Parliament.

Dr. Tammy Schirle, Assistant Professor of Economics at Wilfrid Laurier University, shared with the Committee her research findings. She noted that women, as rational decision-makers, choose to work part-time and that only 9% are involuntarily working part-time.

Note that only a small portion of women working part-time jobs do so involuntarily. Within my sample of unemployed individuals in the Employment Insurance Coverage Survey, only 9% of those women are involuntarily part-time.[57]

It is important to note that persons who work part-time because of child care are considered, by the Labour Force Survey, to be doing so voluntarily.

Figure 12 supports the finding that more women than men work part-time.

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Figure 12: Actual Hours Worked for Employed Individuals by Sex, 2008

Source: Statistics Canada, “Labour Force Historical Review”, 2008; and the Library of Parliament.

B. Women and Temporary Employment

Women’s labour market realities are further exacerbated by the fact that women are more likely to be performing temporary employment. Figure 13 presents temporary employment by type of employment and by gender for December 2008.

Figure 13: Temporary Employment by Type of Employment and by Sex, December 2008

Source: Statistics Canada, “Labour Force Historical Review”, 2008.

As Dr. Vosko noted in her testimony,

When temporary forms of employment are broken down by type, a set of additional gender patterns surfaces. In 2008 men held the majority of seasonal jobs, segments of which have historically been protected more than other types of temporary employment. In contrast, women dominated in casual employment, much of which is part-time and characterized by high levels of uncertainty and income insecurity.[58]

Please refer to Appendix 5 for definitions of voluntary and involuntary workers.

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C. Women’s Earnings

When considering women’s overall labour market situation, it is important to account for women’s earnings. For example, 56% of self-employed women earn less than $20,000 per year compared with 49% of men.[59]

At the same time, the gender wage gap still exists for Canadian women. As the Committee heard from Ms. Charette:

[W]omen still earn less than men in Canada: on an hourly basis, women now earn 84%, on average, of the hourly earnings of men. However, the hourly earnings gap has narrowed since 2000, in part due to rising educational attainment among women. […] Nevertheless, the overall gender wage gap for Canada (21%) exceeded the OECD [Organization for Economic Co-operation and Development] average (18%) in 2006. This remains obviously an ongoing source of concern and consideration.[60]

The Committee heard that there is a growing income gap between racialized and non-racialized residents of Canada. As Ms. Spencer indicated:

[T]he National Working Group on Women and Housing reports that “35% of all women who immigrated to Canada between 1991 and 2000 live in poverty and 37% of all racialized women live in poverty.”[61]

Both women’s earnings and the gender wage gap impact the amount of insurable earnings that women end up receiving under the EI program. As noted in Chapter 1, there is a gap between women’s and men’s average insurable earnings for both regular and special benefits.

D. Choice and Women’s Part-Time Work

Ms. Carole Vincent informed the Committee that women’s choices are constrained given their caregiving and family responsibilities and lack of access to affordable childcare.

It is difficult to talk about personal choice for part-time work. It depends on the circumstances. If this choice was made because there were no employment opportunities in the region, we could perhaps describe the situation as a little more involuntary. However, the concept of voluntary choice for part-time work is quite vague. When there are family constraints and a lack of adequate and affordable daycare, to what extent are these choices voluntary? That is debatable.[62]

Ms. Barbara Byers, Executive Vice-President with the Canadian Labour Congress pointed out that women work in two or three part-time jobs in order to have the equivalence of one full-time job:

[W]e have women holding down two and three part-time jobs. Are those women voluntarily working two and three part-time jobs? No, they're trying to get one full-time income out of a variety of part-time jobs. Part-time work means full-time poverty.[63]

The Committee heard from Mrs. Micheline Dépatie about her experiences working in part-time employment and the lack of opportunities for full-time employment:

It is wrong to say that we choose to work part-time. If I had the choice, I would certainly return to working full-time, and today I would have a fat salary and I would be living the good life, which I no longer have the means to do. It is but a small proportion of people who choose to work part-time. I do not believe that single parent women who are having trouble making ends meet and who are holding down two or three jobs when they are able to are making this choice.[64]

The Committee is concerned that the testimony it heard on women’s labour market realities and experiences are not being adequately researched and reflected in statistical data. The Committee believes there is a need for additional information to be collected on the status of women both in and out of the labour force.

RECOMMENDATION 2:

The Committee recommends that Statistics Canada conduct an in-depth study, together with experts, on the status of women in the labour market and on the status of women who are not part of the labour force.

RECOMMENDATION 3:

The Committee recommends that Human Resources and Skills Development Canada request statistics on voluntary reasons for leaving employment or working part-time or not entering the paid workforce that is gender disaggregated by age group 15 years and older.

RECOMMENDATION 4:

The Committee recommends that Statistics Canada’s Labour Force Survey provide a full breakdown by gender and age category 15 years and older and including full-time and part-time employment, and that the data be coordinated with Employment Insurance data so that monthly releases reveal exactly what numbers and percentages of male and female workers in every category: unemployed/former full-time, unemployed/ former part-time who receive Employment Insurance benefits plus the total Employment Insurance earnings received in each category and average Employment Insurance earnings per worker.