One of Canada’s big banks says there has been a steady decline in job quality in Canada for the past 20 years.
CIBC Capital Markets says more Canadians could have trouble weathering future economic downturns because the share of low-paying jobs has been increasing. Deputy Chief Economist Benjamin Tal’s report finds the share of Canadians earning less than the average wage is now 61%. That’s up from 58% two decades ago.
Tal says lower quality employment might help explain the sluggish growth in personal income. The report shows the drop in job quality affects those in the their prime earning years, discounting speculation that it could be the result of increasing numbers of younger and older workers.
Two million Canadians who were earning 50% or more of the average wage have fallen below average. Meanwhile, the number of Canadians working part-time has yet to return to the levels seen prior to the 2009 recession.