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Ontario at bottom for good jobs, social spending: Report | Toronto Star

By: Sara Mojtehedzadeh Work and Wealth reporter, Published on Thu Nov 19 2015

While Ontario's rich are getting richer, the province now has the highest 
proportion of minimum wage workers in the country — while social spending is 
now the lowest in Canada, according to a new report.

 

Melissa Renwick / Toronto Star Order this photo 

General Motors, in Oshawa, has shed hundreds of jobs as some production shifted 
to the U.S. Ontario has lost almost 318,000 manufacturing jobs since 2000. 





Job seekers beware: if you’re looking for work in Ontario, hunker down for a 
long wait. And if you’re lucky enough to snag something, get ready to work for 
the bare minimum. 

Ontario now boasts the highest proportion of minimum wage workers in Canada and 
one of the worst rates of long-term unemployment in the country, according to a 
new report by an anti-poverty coalition representing 90 community and labour 
organizations across the province. 

“Today, Ontario has slid to the bottom of the country, or near it, on key 
labour force measures,” says the study by the Ontario Common Front.

At the same time, decades of cutbacks on social programs have left Ontarians 
with little insulation against an increasingly precarious job market — and left 
the province with the lowest levels of public service spending per capita in 
the entire country, the report finds. 

The report shows that Ontarians now pay more for health-care expenses than any 
other province. Funding per student for post-secondary education is the lowest 
in the country. Wait times for affordable housing and long-term care are the 
longest nationwide, and child-care costs are the highest. 

Natalie Mehra, the study’s author and director of the Ontario Health Coalition, 
said the rollbacks have “body checked” Ontarians at a time when changes to the 
economy and job market are leaving more people in need of social support.

“It’s terrible policy and it’s devastating,” she said. 

Drawing on Statistics Canada data, the report is one of the few comprehensive 
studies of employment, income equality, and social spending over the past 
several decades. It paints a picture of declining job quality, stagnating 
incomes, and squeezed public services in Ontario. 

According to the study, the province has lost almost 318,000 manufacturing jobs 
since 2000, resulting in a shift to typically low-wage, non-unionized work like 
retail jobs. Simultaneously, the report finds that almost 12 per cent of the 
Ontario workforce is now being paid minimum wage, currently set at $11.25. 
That’s the highest proportion in Canada, which has a national average of around 
7 per cent. 

Around one third of Ontario workers — or 1.7 million people — are now also 
considered low-wage, defined as making within $4 of the minimum wage. 

“That’s an astonishing figure for Ontario, which is meant to be the economic 
engine of Canada,” said Sid Ryan, head of the Ontario Federation of Labour. The 
OFL co-ordinates the anti-poverty coalition that authored the report. 

Dan Janssen, a 34-year-old baggage handler at Pearson Airport 
<http://www.thestar.com/news/gta/2015/10/19/pearson-wheelchair-workers-in-limbo-after-latest-contract-flip.html>
 , says his workplace — one of the largest in Canada — is increasingly defined 
by poor wages and job insecurity. 

“We’re definitely seeing a lot more part-time jobs at the airport and a lot 
more minimum wage jobs,” said the father to a four-month old baby.

“I had to work two jobs until I turned 30. For 11 years, I worked two jobs 
while working at the airport. One job should be enough. But unfortunately, in 
this day and age it doesn’t seem to be.”

While Ontarians are grappling with an increasingly precarious job market 
<http://www.thestar.com/news/gta/2015/05/21/precarious-work-is-now-the-new-norm-united-way-report-says.html>
 , many are also spending longer without any work at all. The average duration 
of unemployment in the province has increased by more than 50 per cent since 
2009, and is now second only to Quebec, the report finds. Almost a quarter of 
unemployed Ontario workers have been out of work for six months or more. 

Despite that, successive Ontario governments have “failed to adapt and act 
decisively” to stem growing income inequality, argues the report, entitled 
“Backslide: labour force restructuring, austerity and widening inequality in 
Ontario.”

Instead, it has made cuts to public services to the tune of $7 billion over the 
past five years. The province now has the lowest public-service funding per 
capita in Canada, at under $9,000 per person. Top spenders Saskatchewan, 
Alberta, and Newfoundland all invest around $12,000 per person.

“This is the story of two worlds: one world in decline for millions of workers 
who earn middle-class incomes and lower, and one that is living high at the 
top,” the study says. 

The report ends on a positive note, however, praising Premier Kathleen Wynne’s 
Liberal government for taking “some measures” to reverse the decades-long slide 
to precarious work and income inequality.

These include reducing child-poverty rates, increasing minimum wage and pegging 
it to inflation, and initiating a review of the province’s outdated employment 
and labour laws. Mehra said she welcomed the changes, but added that more 
action was needed to avert “a pretty serious crisis.” 

“I think the government has set an agenda of social progress, but without any 
substance yet,” she said. “So I’m hoping we can start to fill things in.”

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