The Precarity Penalty The impact of employment precarity on individuals, households and communities ―and what to do about it Precarity Penalty 2015 may 1 r1.indd 1 5/1/15 11:46 AM Acknowledgements PART 3 The Precarity Penalty was prepared by the Poverty and Employment Precarity in Southern Ontario (PEPSO) research group, a university-community joint initiative. This report is one component of a larger PEPSO research program. The authors are: Wayne Lewchuk (McMasterPrecarity University) and How it Shapes Michelynn Laflèche (United Way Toronto) 50 Stephanie Procyk (United WayEmployment Toronto) Relationships Charlene Cook (United Way Toronto) Diane Dyson (WoodGreen Community Services) Luin Goldring (York University) Karen Lior (Toronto Workforce Innovation Group) Alan Meisner (QUANTACAN) John Shields (Ryerson University) Anthony Tambureno (McMaster University) Peter Viducis (City of Toronto) The authors would like to thank all those who took the time to complete a survey or take part in an interview. A number of people helped to shape this project’s outcome. Ayeza Ashfaque, Craig Banerd, Kim Bosmans, Dale Brown, Laura Farr, Mary Gellatly, Grace Kadirgamar, Jasmin Kay, Deena Ladd and Kelly O’Sullivan made important contributions. Leger Marketing was responsible for collecting survey data. This report was made possible through funding from United Way Toronto, McMaster University, and the Social Sciences and Humanities Research Council/Community-University Research Alliances project on Poverty and Employment Precarity in Southern Ontario. The photos used as page folios in this report were taken from another PEPSO project, which explores the impact of precarious employment on neighbourhoods. Those working on this project include: Grace-Edward Galabuzi, Navjeet Sidhu, Alan Meisner, Deirdre Pike, Anita Stellinga, Doreen Fumia, Nasim Haque, Louay Eskander, Geoff McIlroy, Shannon Keats, Ann De Shalit, Hannah Atom, Olha Lahotska, Ghanwa Afach, Ed Kothiringer, Samiera Zafar and Nimira Lalani. Design: Pat Dumas-Hudecki ISBN: 978-0-921669-37-1 Precarity Penalty 2015 may 1 r1.indd 2 5/1/15 11:46 AM The Precarity Penalty The impact of employment precarity on individuals, households and communities ―and what to do about it May 2015 Precarity Penalty 2015 may 1 r1.indd 1 5/1/15 11:46 AM Table of Contents Summary: The Precarity Penalty ..................................................................................10 The It’s More than Poverty report .......................................................................................................11 The Precarity Penalty: The impact of employment precarity on individuals, households and communities―and what to do about it ...............................................................................................12 Key findings of The Precarity Penalty ..................................................................................................12 Policy proposals emerging from The Precarity Penalty ....................................................................13 Part 1: Background: A labour market in transition ......................................14 Income inequality ..................................................................................................................................15 Precarious employment .......................................................................................................................16 The origins of the Standard Employment Relationship ...................................................................17 The rise of precarious employment ....................................................................................................18 Employment relationships and household well-being .....................................................................19 Defining precarious employment .......................................................................................................19 Part 2: Precarity and Income: Trends 2011–2014 ..........................................22 Summary of this section .......................................................................................................................22 Employment security ............................................................................................................................23 Income.....................................................................................................................................................38 Part 3: Precarity and How it Shapes Employment Relationships ....44 Summary of this section .......................................................................................................................44 Income instability ..................................................................................................................................45 Scheduling uncertainty .........................................................................................................................50 The 2 Precarity Penalty Precarity Penalty 2015 may 1 r1.indd 2 5/1/15 11:46 AM Benefits and pensions...........................................................................................................................53 Training ...................................................................................................................................................57 Employment standards, and health and safety standards ..............................................................60 Unionization rates .................................................................................................................................63 Part 4: Precarity and Discrimination ........................................................................66 Summary of this section .......................................................................................................................66 Types of discrimination .........................................................................................................................67 Employment discrimination .................................................................................................................68 Part 5: Precarity and Health ...........................................................................................76 Summary of this section .......................................................................................................................76 General health .......................................................................................................................................76 Mental health .........................................................................................................................................79 Depression ..............................................................................................................................................82 Part 6: Precarity, Income and Household Well-being ................................84 Summary of this section .......................................................................................................................84 Starting a family .....................................................................................................................................85 Stress at home .......................................................................................................................................89 Income Stress .........................................................................................................................................94 Managing financially if falling behind .............................................................................................. 102 Part 7: Precarity, Income and Children................................................................ 106 Summary of this section .................................................................................................................... 106 Households with children .................................................................................................................. 107 Investing in children ........................................................................................................................... 108 The challenge of childcare ................................................................................................................ 114 Impact of precarity on childcare arrangements ............................................................................. 117 Part 8: Precarity, Income and Community Participation ...................... 120 Summary of this section .................................................................................................................... 120 Participating in community activities .............................................................................................. 121 Reasons for volunteering .................................................................................................................. 124 Social interaction and support.......................................................................................................... 127 Voting ................................................................................................................................................... 135 Table of 3 Contents Precarity Penalty 2015 may 1 r1.indd 3 5/1/15 11:46 AM Part 9: Modernizing Policy and Programs for Today’s Modernizing Policy and Programs for Today’s Labour Market