Although formal education is one of the primary means through which skills proficiency is built, other paths are critical for maintaining skills. Skills translate into better economic, health, and social outcomes only when they are continuously used and developed through family, community, and work contexts. This chapter focuses on the connections among labour market participation, skills, and health and social outcomes for two groups of Canadians: those who are unemployed and those who are employed in precarious jobs.
Previous research has shown that skill level has a significant effect on a wide range of labour market outcomes, including the incidence of unemployment, number of weeks worked, average duration of
unemployment, number of hours worked, wage rates, and the probability of receiving employer-funded training (CLLN, 2012). Individuals with low skills are increasingly at risk when labour markets demand stronger
information-management and communication skills and more sophisticated and technologically driven tasks.
Poor proficiency in information-processing skills can therefore limit access to better-paying, more rewarding, and less risky jobs. It also affects the possibility of participating in further education and training, which is crucial for skill development and maintenance over the working life and beyond (OECD, 2013b).
Lifelong learning is important for workers in both high- and low-skilled jobs. Higher levels in literacy and numeracy facilitate learning. Workers with stronger skills are more likely to be employed in positions that require ongoing training, and are more likely to have employers who support continuous learning. This can create a virtuous cycle for high-proficiency adults—
and conversely, a vicious cycle for those with lower proficiency. When low-skilled adults lack access to learning or training opportunities, their skills remain weak or even deteriorate over time, compromising further their ability to participate in learning activities (OECD, 2013a).
Well-remunerated, secure, and satisfying work is also connected to health and social well-being. It contributes to financial security, to the formation of social capital and a sense of inclusion, and to the development of personal identity. Employment is also widely recognized as a social determinant of health. It is directly connected to health by (potential) exposure to hazardous conditions in the workplace, and by providing an income with which to purchase health-promoting goods and services.
Employment is also indirectly linked to health via demands and rewards associated with different types of work, such as social networks, stress, and level of control over work conditions (Block, 2010; EMCONET, 2007; PHAC, 2008).
Unemployment
Numerous studies have documented the impact of unemployment on mental and physical health, as well as on other social outcomes. Compared to employed people, unemployed individuals report poorer physical and mental health, lower tangible social support, lower levels of organizational membership, and lower social and institutional trust. They are also less likely to vote.
Unemployment results in exclusion from both work and social capital, creating an additive effect (Åslund, Starrin,
& Nilsson, 2014). Unemployed people also tend to have significantly higher odds of reporting low generalized trust compared to people employed in “relaxed”
psychosocial work conditions (Lindström, 2009).
Employment status in PIAAC is divided into three categories: employed, unemployed,20 and not in the labour force.21 The proportions of Canadians who are employed (76 per cent), unemployed (4 per cent), and not in the labour force (20 per cent) are similar to those reported in the 2012 Labour Force Survey (Statistics Canada et al., 2013).
Those who are employed enjoy better health and social outcomes than both the unemployed and those not in the labour force (Figure 4.1). Only 76 per cent of those not in the labour force report excellent, very good or good health, compared to 87 per cent of the unemployed, and 92 per cent of people who are employed. Nineteen percent of unemployed Canadians trust more than a few people, compared to 30 per cent of employed Canadians. Fifty per cent of employed Canadians volunteer, versus 44 per cent of both the unemployed and those not in the labour force. Positive political efficacy is reported by 39 per cent of the unemployed, compared to 46 per cent of employed Canadians.
20 The “unemployed” in PIAAC consist of those who were neither working nor self-employed in the month prior to PIAAC, were able to work, and were actively seeking work or expecting to begin a job for which they had been previously hired (Statistics Canada et al., 2013, p. 61).
21 In PIAAC, those “not in labour force” were respondents who met none of the employment conditions and did not actively look for work in the four weeks prior to PIAAC, or who would not begin work for more than three months. The not in the labour force population also consists of respondents who did not take active steps to find a job and were not looking for work or available to begin work within two weeks of the survey (Statistics Canada et al., 2013). This may include retired people, students, or those with health conditions that prevent them from working.
Figure 4.1 Proportion of population aged 16 to 65 who report positive health and social outcomes, by employment status,
Self-reported health Level of trust Volunteer
participation
The proportions of the population who are employed or not in the labour force and reporting excellent, very good or good health generally rise with improvements in information-processing skills. The same pattern does not appear for unemployed Canadians. The health of the unemployed does not improve as levels in literacy, numeracy, or PS-TRE increase. In fact, self-reported
health actually declines at the highest levels in literacy (Figure 4.2). While explanations for this relationship require further investigation, it may reflect that some highly literate Canadians are (in the short term) unable to work because of significant health conditions, or that highly skilled workers without jobs tend to perceive their health more negatively.
Figure 4.2 Literacy – Proportion of population aged 16 to 65 who report excellent, very good or good health, by employment status and proficiency level, Canada, 2012
%
As noted earlier, unemployed people tend to be less trusting than those who are employed. Improvements in literacy, numeracy, and PS-TRE skills are generally accompanied by increasing levels of trust among both the employed and those not in the labour force.
Similar to self-reported health, this is not the case for unemployed people.
In contrast to self-reported health and trust, results for volunteering are consistent regardless of employment status. The proportions of Canadians reporting volunteering activities tend to rise with each increase in literacy, numeracy, and PS-TRE skill across all
employment types (Figure 4.3). Positive political efficacy also generally increases as literacy, numeracy, and
PS-TRE skills improve, but differences between the employed, unemployed, and those not in the labour force are not statistically significant.
Overall, skills do not appear to be strongly associated with health and social outcomes for unemployed Canadians. After controlling for the effects of age, gender, educational attainment, immigrant status, Indigenous identity, and test language, skills do not appear to exert an important influence (Figure 4.4).22 These results may reflect the combined impact of exclusion from paid work, and the absence of opportunities to build and maintain social networks/
social capital in the workplace—magnifying negative outcomes even for highly skilled unemployed Canadians.
22 The only significant relationship identified in Figure 4.4 is that unemployed Canadians at Level 3 in literacy are more likely to believe that they have some influence on government than those with skills at Level 1 or below (Odds ratio of 2.8).
Figure 4.3 PS-TRE – Proportion of population aged 16 to 65 who volunteer, by employment status and proficiency level, Canada, 2012
Figure 4.4 Literacy – Adjusted likelihood of unemployed population aged 16 to 65 reporting positive health and social outcomes, by proficiency level, Canada, 2012
Odds ratio
Self-reported health Level of trust Volunteer
participation
Note: Odds ratios are adjusted for age, gender, educational attainment, Indigenous identification, immigrant status and testing language.
* represents a statistically significant p-value of <0.05
** represents a statistically substantially significant p-value of <0.01
*** represents a statistically highly significant p-value of <0.001