Importance of the Issue
Unemployment is among the most complex issues in the modern world and one that is easily recognized as a problem by the general public and scholars alike (Algan & Aleksynska, 2012). Toronto is no exception. While the overall unemployment rate in the city displays a more or less downward trend, the current situation still has several characteristic features that raise concerns. Two of the most prominent are an insufficient level of employment opportunities for young workers and unfair working conditions for members of the older population, individuals with poor English skills, and those without legal resident status (Toronto Foundation, 2016). Both factors contribute to the decrease of Toronto’s overall efficiency and, more importantly, contribute to the gap between the rich and poor populations. By extension, this effect indirectly contributes to the decline of public health and puts an additional burden on the financial side of operations.
The following paper aims to analyze the issue of inadequate employment in Toronto and provide a set of recommendations to improve the situation. The analysis takes the form of secondary research and uses available scholarly literature to collect relevant statistics, gain a broader perspective by approaching the issue from several angles, and seek appropriate solutions drawing on the experience of other countries, such as public initiatives and partnerships, alterations of employment policies, and educational interventions (England, Gornick, & Shafer, 2012; Mourshed, Patel, & Suder, 2014).
Data Analysis
On average, the situation in Toronto displays signs of relatively steady improvement. For instance, the overall annual employment in 2015 was higher by 2.7%, a steeper climb than the previous year’s 1.5%. Median hourly wages were also higher in 2015 by almost 4%. Finally, dividing employment into part-time and full-time segments demonstrates a visible improvement in the former, which can be attributed to the initiatives of several companies such as PanAm (Toronto Foundation, 2016). However, breaking down the data reveals several troubling trends.
First, the employment rate is visibly lower for the younger workforce, declining six percent from the previous 21%. About 10% of the young population is unemployed and does not participate in training or educational activities that could help in improving their chances to find a job. Further breaking down of the statistics offers additional insights into the reasons behind the situation. The Not in Education, Employment, or Training (NEET) category contains significant portions of individuals living in poverty, in conflict with the law, racialized and aboriginal youth, and individuals with special needs (Toronto Foundation, 2016).
Another important metric is the relation between education and employment. Specifically, individuals with no post-secondary education display the highest rate of unemployment, oscillating between 13 and 15 percent for the last six years. Conversely, employees with university degrees have better chances of employment and receive higher payment overall. The wages of employees with university degrees are currently higher than those of more skilled workers with inferior education ($26 versus $23). Finally, education groups display signs of unequal distribution, most prominently with the female population receiving lower payment and having poorer employment opportunities on average.
Finally, disparities exist in the employment conditions of certain establishments such as the restaurant industry. For instance, a survey undertaken in 2016 indicated a range of violations of the Occupational Health and Safety Act (OHSA) and Employment Standards Act (ESA) (Toronto Foundation, 2016). More than half of the survey participants did not receive vacation pay or public holiday pay, worked overtime without getting the required compensation, and on many occasions, did not receive the minimum wage. About a third of the participants also described the working conditions as inadequate in terms of health and safety. Finally, the described effects were most prominent among the disadvantaged population segments such as older employees and those without official residency. Poor knowledge of English was also cited as both a cause of insecurity and a weak point exploited by the employers.
Theoretical Background
Before we proceed with the suggestions to improve on the issue, it is important to gain a broader perspective on the matter. First, it would be beneficial to determine whether the issue is actually unique to Toronto. A growing body of evidence suggests that the tendencies of an increasing gap between better-educated and higher-paid employees and those with inferior educational degrees and wages can be observed throughout the majority of developed countries (Mourshed et al., 2014). While it is tempting to ascribe the effect to the increasing value of education and improvements made in compensation strategies, some scholars argue that the overwhelming shift toward automatization and the increased presence of information technologies are responsible for the change (Mourshed et al., 2014). It is thus possible to conclude that, at least partially, the effect observed in Toronto can be attributed to a global picture instead of inherent flaws in urban design.
Another issue that is likely responsible for the current situation is the impact of cultural diversity resulting from immigration and the interpenetration of societies. According to Algan and Aleksynska (2012), one of the results of an increasing flow of immigrants is the emergence of a distinct stratum of workers that is more vulnerable and therefore susceptible to unethical practices by employers. In Toronto, more than half of the active workforce is composed of landed immigrants (Toronto Foundation, 2016). In addition, they are overrepresented in all groups that are associated with a higher unemployment rate, which, again, aligns well with the global picture.
The gender disparities observable in Toronto coincide with reports from other countries. Importantly, the income gap is less influenced by the gender criterion among the better-educated population and becomes more prominent in groups with poorer education (England et al., 2012). It is important to recognize the possibility that education in this setting does not play an equalizing role but instead narrows the gap in the same way it broadens it for the male population. It is, therefore, possible to speculate that by improving the accessibility to education for women we can expect a more fair gender distribution in the field of employment.
Another important detail that may improve our understanding is the relation between mental health and workplace stress, job insecurity, income inequality, and workplace climate. A study by Kim and von dem Knesebeck (2016) suggests that the effect may be mitigated by addressing each issue. In other words, the perception of positive workplace culture and high chances of employment (which may or may not be consistent with the actual situation) improve employee retention rates and decrease unemployment. This leads us to the assumption that improvement in the mentioned perception can result in better outcomes.
Finally, the NEET problem has been extensively covered by European researchers who have faced it for more than a decade. According to the European experience, the two core reasons behind the issue are the constantly rising requirement for critical thinking and problem-solving capabilities and the lack of proper communication between educational institutions and employers (Mourshed et al., 2014). In addition, the programs that target these specific issues (e.g., improve affordability and accessibility of education) also lead to better results. Since the situation in Toronto is generally similar to the global trend, with youth displaying similar behavioral patterns and concerns, we can expect similar results of implementing these interventions scaled down to fit a city.
Conclusion
As can be seen from the analysis of the data, the issue of unemployment is the most visible among youth (NEET) and immigrants. Essentially, both display a lack of proper skills as one of the chief reasons behind their shortcomings (Toronto Foundation, 2016). Therefore, Toronto needs to adjust its education system to improve matters. First, partnerships should be fostered between major employers and educational facilities, which would allow the latter to adjust their curricular design accordingly after obtaining feedback from the former. In this way, youth will be more prepared to face the realities of the modern world and equipped with skills sought by employers. In addition, the education system needs to be examined for possible inequalities in access that may be responsible for poor labor market outcomes among women. Next, mentorship programs are expected to raise the chances of employment among youth with disabilities (Lindsay, Hartman, & Fellin, 2016). Importantly, it is possible to implement both adjustments without significant external funding if enough dedication is demonstrated by the community.
The population without legal citizenship status would also benefit from improved access to education (Algan & Aleksynska, 2012). However, this intervention would require the development of specific programs that would account for language barriers and cultural differences. However, considering the fact that immigrants comprise more than 50% of Toronto’s workforce, the financing of such programs may be viewed as an investment by local businesses (Toronto Foundation, 2016). Therefore, by communicating the benefits of such a move to employers, it is possible to ensure their financial support and secure the success of the intervention.
References
Algan, Y., & Aleksynska, M. (2012). Conclusion: Cultural integration of immigrants in Europe. In Y. Algan, A. Bisin, A. Manning, & T. Verdier (Eds.), Cultural integration of immigrants in Europe (pp. 301-332). Oxford, England: Oxford University Press.
England, P., Gornick, J., & Shafer, E. F. (2012). Women’s employment, education, and the gender gap in 17 countries. Monthly Labor Review, 135(4), 3-12.
Kim, T. J., & von dem Knesebeck, O. (2016). Perceived job insecurity, unemployment and depressive symptoms: a systematic review and meta-analysis of prospective observational studies. International Archives of Occupational and Environmental Health, 89(4), 561-573.
Lindsay, S., R. Hartman, L., & Fellin, M. (2016). A systematic review of mentorship programs to facilitate transition to post-secondary education and employment for youth and young adults with disabilities. Disability and Rehabilitation, 38(14), 1329-1349.
Mourshed, M., Patel, J., & Suder, K. (2014). Education to employment: Getting Europe’s youth into work. McKinsey & Company.
Toronto Foundation. (2016). Toronto’s vital signs. Web.