May. 1st, 2008
I think we are seeing the result of the flight of high paying entry level manufacturing jobs from the North American economy. The jobs lost were union regulated manufacturing jobs and the new jobs are entry level nonunion cyberserfs that work in places like call centres and the service industry.
The jobs were lost to cheaper labour in other countries, most famously China. Also 25 years ago the economy had just started to slow but there were still good paying full time jobs for recent high school graduates. These days things are static or shrinking so most entry level jobs do not pay nearly as well even if they are full time.
Highlights from the 2006 census release on income and earning:
• The earnings of the average Canadian has stagnated over the last 25 years.
• In 2005, a person with a full-time job earned a median pre-tax salary of $41,348 — only about a buck a week more than what the average worker took home in 1980, when adjusted for inflation.
• While middle class workers experienced no real growth in earnings, those at the top end got a lot richer (16.4 per cent increase between 1980-2005) and those at the bottom got much poorer (20.6 per cent decline).
• The median family income in Canada was $66,343, ranging from a high of $90,865 in the Northwest Territories to $51,791 in Newfoundland and Labrador.
• All provinces and territories experienced some growth in median family income between 2000 and 2005 — with Nunavut (19.0 per cent), the Northwest Territories (10.4) and Alberta (10.0) leading the way. Ontario (1.4) and British Columbia (1.8) were below the national rate of 3.7 per cent.
• Almost 3.5 million Canadians, or 11.4 per cent of the population, live below what Statistics Canada calls the low-income cut off — a term others often refer to as the poverty line.
• Immigrants have fallen further behind Canadian-born workers. In 2005, immigrant men earned 63 cents for every dollar earned by a Canadian-born male worker. Twenty five years ago, the ratio was 85 cents. There was a more dramatic drop for immigrant women — 85 cents to 56 cents.
• The wage gap between young male and female workers has stalled after narrowing for years. The wage gender gap — unchanged from the last census — means women earned on average 85 cents for every dollar earned by a man.
• More than 600,000 Canadians earned $100,000 or more in 2005 — a 25 per cent increase from the last census. Statistics Canada does not reveal how many millionaires there are.
• The Wood Buffalo region of northern Alberta, which includes the oil sands capital of Fort McMurray, could stake a claim as Canada's richest community. Its median family income of almost $130,000 is the highest among any city with a population of more than 10,000.
(Canadian Press)
Via the Globe and Mail
http://www.theglobeandmail.com/servlet/story/RTGAM.20080501.wcensusmain0501/BNStory/census2006/?page=rss&id=RTGAM.20080501.wcensusmain0501
The jobs were lost to cheaper labour in other countries, most famously China. Also 25 years ago the economy had just started to slow but there were still good paying full time jobs for recent high school graduates. These days things are static or shrinking so most entry level jobs do not pay nearly as well even if they are full time.
Highlights from the 2006 census release on income and earning:
• The earnings of the average Canadian has stagnated over the last 25 years.
• In 2005, a person with a full-time job earned a median pre-tax salary of $41,348 — only about a buck a week more than what the average worker took home in 1980, when adjusted for inflation.
• While middle class workers experienced no real growth in earnings, those at the top end got a lot richer (16.4 per cent increase between 1980-2005) and those at the bottom got much poorer (20.6 per cent decline).
• The median family income in Canada was $66,343, ranging from a high of $90,865 in the Northwest Territories to $51,791 in Newfoundland and Labrador.
• All provinces and territories experienced some growth in median family income between 2000 and 2005 — with Nunavut (19.0 per cent), the Northwest Territories (10.4) and Alberta (10.0) leading the way. Ontario (1.4) and British Columbia (1.8) were below the national rate of 3.7 per cent.
• Almost 3.5 million Canadians, or 11.4 per cent of the population, live below what Statistics Canada calls the low-income cut off — a term others often refer to as the poverty line.
• Immigrants have fallen further behind Canadian-born workers. In 2005, immigrant men earned 63 cents for every dollar earned by a Canadian-born male worker. Twenty five years ago, the ratio was 85 cents. There was a more dramatic drop for immigrant women — 85 cents to 56 cents.
• The wage gap between young male and female workers has stalled after narrowing for years. The wage gender gap — unchanged from the last census — means women earned on average 85 cents for every dollar earned by a man.
• More than 600,000 Canadians earned $100,000 or more in 2005 — a 25 per cent increase from the last census. Statistics Canada does not reveal how many millionaires there are.
• The Wood Buffalo region of northern Alberta, which includes the oil sands capital of Fort McMurray, could stake a claim as Canada's richest community. Its median family income of almost $130,000 is the highest among any city with a population of more than 10,000.
(Canadian Press)
Via the Globe and Mail
http://www.theglobeandmail.com/servlet/story/RTGAM.20080501.wcensusmain0501/BNStory/census2006/?page=rss&id=RTGAM.20080501.wcensusmain0501