CTV News | With temporary workers, flexibility's the name of the game - 1 views
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Weak business confidence coming out of the global credit crisis is playing a major part in keeping jobless rates at painful levels – U.S. unemployment is nine per cent while Canada is stuck above 7.5 per cent in large part because companies are wary of hiring long-term.
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Canada’s employment-services industry is mostly temporary staffing along with permanent placements and contract staffing, according to Statscan. Revenue has climbed steadily in the past decade, and employment in the sector has jumped six per cent in the past year alone, to 158,000 people.
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But as the industry grows around the world – staffing firms are expanding in Europe and in emerging markets such as India and China – there’s an intensifying debate over the merits of an increasingly fluid work force. Proponents say it helps both employers and workers be nimble in globally competitive markets; opponents argue it’s part of a shift toward precarious, lower-pay work.
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Temporary workers tend to earn less than permanent staff, they get little or no benefits and many can be fired without notice
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The earnings gap between a permanent and a contract worker is about 13 per cent, while between a permanent and casual worker the gap is about 34 per cent
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Labour is typically a company’s most expensive cost, and a contingent labour force helps reduce costs
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With the recession and the resulting slackness, employers are in a position where they can offer no security, no benefits, unreliable hours and lousy pay – and still have people apply. And that will persist until either the labour market picks up or we put some restrictions in place on how precarious employment works
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Lower pay leads to weaker consumer spending, restricts workers’ ability to get a mortgage and makes it more difficult to save for the future.
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$8.7-billionRevenue from temp industry in Canada in 2009 (up from $1-billion in 1993).158,000Number of Canadians employed in temp services in the past year, up six per cent from year earlier.13%Estimated earnings gap between a permanent worker and a temporary contract worker.