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Genuine Progress Index for Atlantic Canada Indice de progrès véritable - Atlantique Working Time and the Future of Work in Canada.
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Genuine Progress Index for Atlantic CanadaIndice de progrès véritable - AtlantiqueWorking Time and the Future of Work in Canada
“The number of hours worked is one important indicator of a country’s overall quality of life… While the benefits of hard work are clear, working more is not the same as working better.”- Juan Somavia, Director-General, International Labour Organization
GDP (the economy) can grow while: • Poverty, insecurity, and inequality increase • The gap between rich and poor widens • The earth’s resources are depleted • While communities collapse • Our quality of life worsens
GDP (the economy) can grow while: • The quality of work deteriorates • We work longer hours for pay • We have fewer hours of free time • Work stress and stressed-induced illnesses increase • Family breakdown and crime, associated with underwork, increase
Key indicators of progress related to work • A decline in unemployment • A decline in underemployment • A decline in hours polarization • An increase in job security • A decline in overwork, or the proportion of people who work long hours
Key indicators continued... • An increase in work that is socially or environmentally benign and a decrease in work that is damaging to communities or the environment • A reduction in work stress and an increase in work that improves work/family balance and contributes to quality of life
There has been a decline in progress among these key indicators over a 25-year period in Canada.
“The paradox of our times is that many Canadians today work long hours while many others have no work at all.” --Advisory Group on Working Time and the Distribution of Work (1994)
Troubling Trends over 25-year period (1976-01) • Hours Polarization • In 1976 roughly one-quarter of all Canadians with full-time jobs worked over 41 hours/week. By 2001, the proportion had risen to one-third • During the same time period, the proportion who worked less than 30 hours/week increased by 30 per cent
Trends continued... • Rising Insecurity: • Since 1997 (data first available) the proportion of workers employed in temporary jobs increased by 12 per cent • Part-time on the rise: In 1953 four per cent of Canadian workers held p/t jobs. By 2001, nearly one-fifth of the workforce was working p/t • Part-time work not necessarily bad, but...
Trends continued... • Part-time jobs in Canada tend to pay poorly, carry no benefits, provide limited job security or room for advancement • Characterized by high turnover • In Canada in 2001, full-time employees were paid on average 49% more per hour than their part-time counterparts • Jobs most likely to offer non-wage benefits are high-wage, unionized, full-time and permanent
Trends continued... • Involuntary Part-time: • Many who work part-time would rather be working full-time but can’t find f/t work • Between 1976 and 1995 proportion of involuntary part-time nearly tripled • In 2001, 26 per cent of part-timer workers in Canada did so involuntarily • In Nova Scotia, the 2001 rate was 43%
Trends continued... • Overtime: • The incidence of overtime increased by 11 per cent between 1997 and 2001 alone • Moonlighting: • Between 1976 and 2001 the incidence of multiple job holding more than doubled. • “…more people are arming themselves with several jobs in the event that one disappears.” -- Statistics Canada
Trends continued... • Leisure: • Between 1991 and 1999 the proportion of Canadian workers regularly working on weekends has jumped from 11 per cent to 18.5 per cent • Leisure time declines with marriage and raising children • Between 1992 and 1998 (time-use data) married men and women each clocked an extra two hours per week of paid work
Trends continued... • Canadians have less free time than most Western Europeans • Europeans enjoy up to 3 times more vacation time. Canadians would have to work, on average, 15 years before receiving the vacation time mandated by some European countries after just one year of work
Danes Have 11 hours more free time each week than Canadians Source: Andrew Harvey, “Canadian Time Use in a Cross-National Perspective,” Statistics in Transition, November, 1995
Trends continued... • Inequality: • The rich-poor gap widened, partially as a result of hours polarization • 1990: the richest 20 per cent of Canadians had seven times as much disposable income as the poorest 20 per cent. 2001: they had nearly nine times as much
Trends continued... • Unemployment: • Canada’s official unemployment rate is just over 7 per cent. This excludes: • Growing number of hidden unemployed such as involuntary part-timers and “discouraged” workers -- those who want work but have given up looking for it
Trends continued... • In 2001 the official unemployment rate in Canada was 7.2%. Add discouraged workers and underemployed portion of involuntary part-time work, and the number rises to just above 10% • Official figures also disguise the rise in long-term unemployment. In Canada the proportion of people unemployed for a year or longer has more than doubled over a 25-year period-- from 3.8 per cent in 1976 to 9 per cent in 2001, peaking at 16.3 per cent in 1996
“The emergence of an economy that grows by shedding labour has heightened anxiety about jobs and increased the number of people who find themselves without prospects and without a stake in the current order of society.”-- David Cayley
Total Work Hours • Dual-earner couples with children working longer total hours today than their counterparts 100 years ago • Total average work hours per week (paid and unpaid) for couples with children increased from roughly 111 hours in 1900 to 137 hours in 2000 • For full-time employed parents it was even higher in 2000 at 145 hours/week
Total Work Hours, Couple with Children, Canada, 1900 and 2000 (includes both f/t and p/t work) 1900 2000 Male, paid work 58.5 44.8 Female, paid work -- 25.2 Male, unpaid work N.A. 24.5 Female, unpaid work 52 42.7 Total work hours 110.6 137.2
Dual Earner Families as Percent of All Families in CanadaSources:Statistics Canada, Characteristics of Dual-Earner Families, Charting Canadian Incomes 1951-1981, Women in Canada
Dual-earner parents/non-parents, LFS data: • In 2002, dual-earner couples between 25-44 years of age without children worked a combined week of 77.2 hours per week • Couples in this age group with children worked 75.1 hours per week • Full-time employed parents in this age group worked a combined week of 81.2 hours per week. Their non-parent counterparts worked 80.7 hours/wk
Time Stress on the Rise • Couples with full-time jobs and children work 145 hours per week • Women double labour force participation rate, but still do nearly twice the housework of men • Single mothers with f/t work most time-stressed group: average 75-hr paid + unpaid work week
Time Stress on the Rise • In medium and large-sized Canadian firms/organizations, 58 per cent of workers now report work/life conflict and “role overload” -- defined as having too much to do in any given moment of time
Women’s Share of Household Work Has Remained Almost Unchanged Despite Dramatic Increases in Paid Work Statistics Canada, General Social Surveys, Households’ Unpaid Work, Labour Force Surveys, Women in Canada, Women in the Workplace, CANSIM
Labour Force Participation Rate of Mothers with Infants Age 0-2, Canada, 1961-1995 Statistics Canada, Canadian National Child-Care Study, Labour Force Annual Averages, Charting Canadian Incomes 1951-1981, Caring Communities
Work effort and income • Working couples with children were working, combined, about 206 more hours a year in 2000 than they were two decades earlier • During the same time period, their average real disposable income increased by 8.4 per cent
Work effort and income • Comparison of work hours and income shows that a substantial portion of people’s increased income comes from working more • Therefore, increased disposable income has been bought with increased work effort • Work and spend cycle- treadmill of consumption (average American today consumes 2X what they did 40 years ago)
Working harder: percentage change in hours worked per capita, 1970-2002source: OECD (2004)
Working harder • Between 1970 and 2002, annual hours worked per capita rose 20 per cent in the U.S. and 16.8 per cent in Canada • OECD latest figures show that U.S. and Japan work longest hours/year among all industrialized countries • OECD attributes rise in average U.S. incomes over this period to longer work hours
Long Work Hours and Health • “It seems that overwork can kill, but that we know precious little about when, who, and how.” -- British Medical Journal (l996) • Clear link between work stress and heart disease: recent Finnish study (BMJ) found that people with stressful jobs were twice as likely to die from heart problems than those with less stressful jobs • Japanese have a name for sudden death caused by overwork: karoshi
Long Work Hours and Health • Links to anxiety, strain, irritability, fatigue, sleeplessness, poor eating habits, accidents, depression, burnout, etc. • Statistics Canada NPHS data found long hours increased chances of heart disease; unhealthy weight gain in men; alcohol consumption and depression in women; smoking in both men and women; • Glaring gap in literature regarding work stress in relation to total work burden
Other costs associated with long work hours • GPI estimates absenteeism associated with stress from long work hours cost Nova Scotia nearly $70 million in 2001 • Lower productivity in the workplace • Costs associated with family breakdown • Effects on children • Long term societal costs related to breakdown of family life and parental absence from home
Underwork is also stressful: • Insecure work and the anticipation of job loss are important sources of work stress • In 1991, 11 per cent of workers worried about lay offs. By 1994, this more than doubled to 23 per cent. By 2000, 13 per cent cited fear of job loss as a source of workplace stress. • Insufficient work hours can also lead to stress associated with poverty
Health impacts of underwork: • Studies show that those with low income are more likely to have poor health and die earlier • Unemployed tend to develop irregular sleeping habits, eat less nutritious food, smoke/drink more, are less physically active, experience symptoms of diseases that are exacerbated by stress • Unemployed suffer higher rates of a wide range of mental/physical ills than those with jobs do
Health impacts of underwork: • Unemployed tend to be less satisfied with their mental and physical wellbeing: • They report more long and short-term disabilities than the employed do • Are sick almost twice as often as the employed • Visit their physicians more frequently than those with jobs
Health impacts of underwork: • The unemployed are 20-25 per cent more at risk for heart disease, chest pain, high blood pressure, and joint paint than the general population • Does unemployment directly cause these adverse health outcomes? Still unclear. More study required in this area.
Costs associated with unemployment • GPI estimated unemployment in Nova Scotia cost the provincial and national economy at least $4 billion in 2001 in lost output and taxes and in direct payments to the unemployed • Unemployment may cost Nova Scotia between $250 million and $400 million/yr in excess disease, crime, and divorce costs (higher figure includes hidden unemployed and a wider range of crime cost estimates)
Both overwork and underwork create health, social problems • Increasing polarization of hours in Canada = main cause of growing income inequality throughout Canada • Inequality, low income reliable determinants of poor health. • Overworked, underemployed = equal risk of heart attack
A Better Balance: Learning from the Europeans • Belgium: 1995- 8 per cent of the civil service (7,000 workers) took a 20 per cent reduction in work hours in exchange for a 10 per cent reduction in pay • Netherlands: “Dutch Disease” to “Dutch Miracle” • 1/3 of all Dutch workers works under 35 hours a week with many job-sharing
Netherlands: Making Part-time Work Desirable • Non-discrimination law: equal hourly pay, pro-rated benefits, equal promotion opportunity • unemployment 12.2% —> 3.8% (2003) - Highest rate of part-time in OECD (33%) • Involuntary part-time = 6% = 1/4 of Canada’s rate; 1/5 of Nova Scotia rate
More vacation time • Sweden, Luxembourg, France, and Austria have up to 5 weeks of holidays per year • 70 per cent of German workers have 6 weeks or more of paid vacation per year • Dutch work 469 fewer hours/year than average U.S. worker -- the equivalent of 3 months less work per year
New work schedules • Job sharing • Shorter workdays • 4-day workweek • Longer vacations, sabbaticals, or educational leaves • Phased-in retirement • Flexitime • Telecommuting
Sharing the Work Can... • Reduce unemployment, underemployment and overwork • Improve work-life-family balance and health • Increase free time and community service • Protect the environment, spare the planet from over-consumption, natural resource depletion
Voluntary Work Reduction: An Alternative to Layoffs • Direct cost savings through reduced EI, SA, & severance payments, and maintaining tax base • Indirect savings - less health and social costs • Retains valuable workplace skills • Reduces stress and improves work-life-family balance
Voluntary Work Reduction: An Alternative to Layoffs • Improves morale, service delivery, productivity through reduced stress, absenteeism, lateness, turnover, fatigue and errors • European studies show 50% of work time reduction made up in increased productivity
Voluntary work reduction can create jobs: • In 2001, 1.2 million Canadians were out of work. At the same time, workers clocked 9 million hours of paid overtime -- the equivalent of 225,000 full-time jobs • Example: Union at Powell River, B.C., pulp and paper plant restored 89 lost jobs in 1997 by reducing its workers’ overtime hours