Fear keeps workers in jobs for longer
Canadians are actually staying in their jobs longer, a fact even among younger cohorts, says a leading economist in a report that debunks talk of jobs being shortterm. Benjamin Tal, deputy chief economist with Canadian Imperial Bank of Commerce, said fear may be driving some people to stop looking for a job because they worry they’ll be easily replaced in their current position.
“For a while now, keynote speakers at university and college graduation ceremonies have been reminding young graduates that the labour market awaiting them is the most dynamic one ever,” said Tal, in the paper he wrote with Sahika Kaya. “The era of jobs-for-life is over, loyalty to one employer is dead and young Canadians should be prepared to hop from one job to the next during their working careers. Our Finance Minister offers similar advice, suggesting that young Canadians should get used to this new reality.”
Bill Morneau, the federal finance minister, said last month Canadians should get used to so-called “job churn” as they face shortterm employment and multiple career changes. “We also need to think about, ‘How do we train and retrain people as they move from job to job to job?’” Morneau said.
Tal said it’s actually the opposite — the tenure of employment is increasing in Canada and not just because of an aging population.
“The average tenure of employment has been on a clear upward trajectory, rising from 98 months to 103 months in the last decade,” he notes. “The share of workers who have been with the same employer for more than five years is currently hovering at a record high of over 50 per cent.”
“An increased job tenure can be interpreted as an increased job stability. That stability, we believe, is a sign of weakness, not strength,” said Tal, adding tenure among lower wage occupations rose faster than that among high-paying occupations. The share of those unemployed for more than 27 weeks is currently at a level seen during the recession.