Some differences in the distribution of precarious work by skill domain and sociodemographic or socioeconomic characteristics emerge in PIAAC data, but patterns are not always clear or consistent. There is little variation in the proportion of women versus men employed in precarious work. The exception is those at the higher levels in literacy and PS-TRE: more women tend to be in precarious or “no contract” employment. At lower levels in literacy and numeracy, Indigenous peoples are more likely to have precarious jobs than the non-Indigenous population, but these differences diminish at higher levels. At Level 3 or above in literacy and numeracy, and Level 1 or above in PS-TRE, the proportions of Indigenous and non-Indigenous peoples in secure work are similar. This is important because it points to the potential importance of skills in shaping economic and other outcomes.
As skills improve, the proportion of Canadians in secure employment increases, the proportion in “no contract”
work decreases, and the proportion in precarious work remains the same. For example, 68 per cent of those at Level 1 or below in numeracy have secure employment, compared to 75 per cent at Level 4 or 5.
At the lowest numeracy levels, 17 per cent report having no employment contract, dropping to 9 per cent at the highest levels. The proportion of Canadians in precarious employment tends to hold steady at approximately 15 per cent of the employed population at each level of numeracy proficiency (Figure 4.5). Patterns are similar for literacy and PS-TRE.
Figure 4.5 Numeracy – Proportion of population aged 16 to 65 employed in secure, precarious or “no contract”
employment, by proficiency level, Canada, 2012
%
For all skill domains and skills levels, Canadians in precarious or “no contract” work are more likely to be young adults (Figure 4.6), which is a finding echoed in other research (OECD, 2015). This may reflect how transitions from school to work can involve a series of temporary or casual work assignments. However, some recent research also suggests that labour market conditions are shifting more generally for younger Canadians who not only tend to earn less when starting out but who also do not catch up over their careers.
Precarious work can become a “trap” with low earnings limiting housing options and compromising one’s ability to form relationships and start a family (Lewchuk et al., 2015). The OECD also finds that younger workers—
particularly those with only temporary work contracts—
have less chance of moving on to more stable positions (OECD, 2015). These trends may help to explain the finding that the proportion of precarious employment among younger workers actually increases as their PS-TRE skills improve (Figure 4.6). This pattern is similar for literacy and numeracy.
PIAAC found that approximately 45 per cent of
Canadians in precarious or “no contract” work have not attained an educational credential beyond a high-school diploma. This finding for Canada is consistent with data from other developed countries (OECD, 2015). For each skill domain, the proportion of the population who are
employed in precarious work decreases as educational attainment increases (Figure 4.7). However, the benefits of postsecondary education are most apparent for those at Level 3 or above in literacy and numeracy, or above Level 1 in PS-TRE. For all skill domains, the benefits of higher-level proficiency are most apparent for those who have postsecondary education – bachelor’s degree or higher. For those with a high-school diploma or less than a high-school diploma, the proportion of precarious or
“no contract” work tends to increase at higher levels of proficiency.
Figure 4.6 PS-TRE – Proportion of population aged 16 to 65 employed in secure, precarious or “no contract” employment, by proficiency level and age group, Canada, 2012
Level 2 or 3 Level 1 Below Level 1 PS-TRE non-respondents
%
0 20 40 60 80 100
Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract
16 to 24 25 to 34 35 to 44 45 to 54 55 to 65
Source: Table 4.7
Figure 4.7 PS-TRE – Proportion of population aged 16 to 65 employed in secure, precarious or “no contract” employment, by proficiency level and educational attainment, Canada, 2012
Level 2 or 3 Level 1 Below Level 1 PS-TRE non-respondents
%
0 20 40 60 80 100
Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract
Less than high-school diploma
High-school diploma PSE – below bachelor’s degree
PSE – bachelor’s degree or higher Source: Table 4.8
Patterns in precarious work among recent and established immigrants are more variable (Figure 4.8).
A proportion of precarious work is somewhat greater among recent immigrants than for the Canadian-born, except at the lowest skill levels, and is lowest among established immigrants. This finding is consistent with other research on newcomers to Canada (LCO, 2012).
Limited official-language proficiency, a lack of Canadian education or work experience, and foreign credentials unrecognized by employers may contribute to a greater likelihood of working in a precarious job. At the same time, becoming a citizen and length of time in Canada tend to mitigate employment precarity (Goldring & Joly, 2014).
Workers employed in precarious or “no contract” jobs fall into lower wage quintiles more frequently than those in stable employment. This is consistent with other research on precarious work that shows job types frequently associated with precarious conditions typically pay lower wages (DePratto & Bartlett, 2015).
For all skill domains, Canadians earning hourly wages that place them in the bottom earnings quintile are more often found in precarious or “no contract” employment (Figure 4.9). For example, 51 per cent of workers in the lowest earnings quintile at Level 3 in numeracy are in precarious or “no contract” jobs. For low-wage work, there appears to be no advantage to possessing higher-level skills as a means to obtaining secure work in these types of occupations. Patterns for literacy and PS-TRE are similar. This finding suggests that economic returns on higher-level skills may be fully realized for only those employed in higher-paying, secure jobs.
Figure 4.8 Literacy – Proportion of population aged 16 to 65 employed in secure, precarious or “no contract” employment, by proficiency level and immigrant status, Canada, 2012
%
Recent immigrants Established immigrants Canadian-born
Source: Table 4.10
Figure 4.9 Numeracy – Proportion of population aged 16 to 65 employed in secure, precarious or “no contract”
employment, by proficiency level and hourly earning quintiles, Canada, 2012
%
Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract Secure Precarious No contract
Lowest quintile 4th quintile 3rd quintile 2nd quintile Highest quintile Source: Table 4.11