Too many Albertans are"Missing Out on the Boom"
Wages remain stagnant and job insecurity remains high, says report
EDMONTON -- Despite their province's impressive economic growth, many Albertans are still suffering from stagnant wages and chronic job insecurity, says a report released today by the Alberta Federation of Labour.
The report, entitled "Missing Out on the Boom," examines current trends in wages, job security, job creation and public services in Alberta.
"Our study shows that many Albertans are not sharing in the benefits of the province's on-going economic boom," says AFL president Audrey Cormack. "While business people and professionals at the top of the income ladder are enjoying rising wages and profits, many ordinary Albertans are still having to settle for less."
Among other things, the AFL study shows that average wages for people paid by the hour are 15 per cent lower, after adjusting for inflation, than they were in 1983. The report also shows that many of the new jobs being created in Ralph Klein's Alberta are not good jobs. Many are part-time or in sectors of the economy long associated with low wages and poor benefits.
"This is the other half of the story on the Alberta economy," says Cormack. "It's the side people in government and business never talk about. But it still deserves attention."
Cormack says she hopes the AFL Report Card draws attention to some of the important and alarming changes that are taking place within the Alberta economy.
"We hope our findings will help stimulate a debate -- a debate that will lead to improved economic conditions for all Albertans, not just those who spend their time in corporate boardrooms."
Research Highlights
- Many of the jobs being created in Alberta are not good jobs. New jobs are springing up in sectors of the economy long associated with low pay and poor benefits while many other jobs are being lost in sectors associated with good pay and better benefits.
- More Albertans are working in part-time jobs than ever. Almost 20 of all jobs in the province are now part-time, up from 15 percent in 1991 and 12.6 per cent in 1981.
- During previous economic booms, employment levels increased as employers hired new workers. But during the current boom, much of the increase in employment has resulted from people starting their own one-person businesses. Between 1991 and 1996 the number of self-employed Albertans jumped by 35 per cent, while the number of people employed by others actually fell slightly (0.3 per cent).
- Most of Alberta's newly self-employed workers are struggling financially. The owners of one-person "micro-businesses" earn, on average, only 60.2 percent of the income earned by full-time employees.
- There is a growing polarization in the number of hours Albertans work each week. On one hand there is a growing number of people who work more than 50 hours per week. And on the other hand there is a growing number of people who can't find enough work.
- Despite the dramatic increase in overtime hours for many workers, there has not been a corresponding increase in earnings. In fact, 48 per cent of all overtime worked in Alberta is unpaid. During an average week in Edmonton, 44,000 people work unpaid overtime. The corresponding figure for Calgary is 49,000.
- 1997 marked the first time in almost ten years that average weekly wages in Alberta increased slightly more than inflation. But, after adjusting for inflation, average weekly wages in Alberta are still 4.1 per cent lower than they were in 1983.
- The increase in average weekly wages is slightly misleading. It masks the fact that average wages for people paid by the hour continued to decline. These workers now earn a full 15 per cent less, after inflation, than they did 15 years ago.
- Alberta still has the lowest minimum wage in the country. The real value of the minimum wage has been eroded by 9 per cent since it was last increased in 1992 -- and by nearly 40 per cent since 1970.
- In addition to stagnant wages and continued job insecurity, the public services available to working Albertans are also in decline. Alberta now spends less per capita on health care than any other province in the country. At the same time, class sizes and tuition levels at our schools and universities have increased dramatically. And grants for the maintenance and development of Alberta's infrastructure have been cut in half.
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