Ottawa’s response to ‘gig economy’ hindered by unreliable data, documents say

Documents show feds were unsure of existing data on number of Canadians earn livings online

A Lyft logo is installed on a Lyft driver’s car next to an Uber sticker. THE CANADIAN PRESS/AP/Gene J. Puskar, File

A newly released government document shows that federal officials feel stymied by data roadblocks in their bid to help policymakers tackle a growing political concern about the country’s “gig” economy.

Documents obtained by The Canadian Press under the Access to Information Act show federal officials were leery of the reliability of existing data on the number of Canadians using online platforms to earn their livings, even though the figures had come from reputable sources.

The late-March briefing note shows officials at Employment and Social Development Canada were looking for alternatives.

Federal officials have been closely watching the changes in the labour force away from full-time jobs in favour of more temporary, part-time or contract work.

Available research suggests young people are more often found in these positions, which can be lower-paid and without benefits or longer-term job security. That makes the effects of the gig economy of particular interest to politicians: millennials make up the largest voting cohort this election season.

Concerns about the ripple effects have prodded changes to the Canada Pension Plan, analysts’ deep policy dives into the future of the federal social safety net, new spending on skills training and amendments to the federal labour code.

What makes measuring the size of the gig economy so difficult is that there are competing definitions of what it includes. ESDC officials leaned on an American definition that described gig workers as those who take short work or tasks through websites or mobile apps that arrange payment and connect them directly to consumers.

For instance, driving Ubers, making SkipTheDishes deliveries, or picking up odd work from TaskRabbit. Putting together multiple part-time jobs, soliciting work through a website such as Kijiji, or surviving on short-term contracts didn’t count.

Underlying concerns about the gig economy is a demographic shift firmly underway in Canada. Aging baby boomers will retire in droves over the coming years without enough young workers to replace them — which raises a potential problem. Unlike the Canada Pension Plan, old-age security payments are funded by tax dollars, and federal coffers might not be able to cover the cost of seniors’ benefits that are increasing faster than inflation.

Add to that populist concerns about immigrants, who have been the main drivers of population growth as birth rates have declined, and there is a potential potent mixture for the coming election campaign.

What to do beyond election day has engrossed federal officials from multiple departments, who have tested worst-case scenarios and a range of possible policy responses.

Armine Yalnizyan, an economist who has researched the gig economy in detail, said available data suggests a growth in the platforms could erode wages for engineers, accountants, programmers and lawyers as companies connect with cheaper overseas labour. Federal programs either provide workers with capped income supports — which for high-wage workers would be well below the earnings they’re used to — or retraining funding, she said.

READ MORE: Bank of Canada offers explanations for country’s ‘puzzling’ wage disappointment

“This isn’t the hollowing out of the middle, this is the hollowing out of the high-skill, high-wage class and we don’t have programs for that crowd,” Yalnizyan said.

“What are you going to train them in? They’ve just spent seven to 10 years training and spent a fortune on it. Obviously, our systems are not designed for that reality and that’s where we’re hitting the stress tests.”

Jordan Press, The Canadian Press

Like us on Facebook and follow us on Twitter

Just Posted

Qualicum Beach cinema group reaches fundraising goal

Organization wants to see a multi-use cinema in town

Man taken to hospital after driving off road in Qualicum Beach

51-year-old man from Port Alberni struck parked vehicle

City of Parksville rejected sharps disposal containers from Island Health

Mayor says cost of maintaining boxes too much for city

Parksville hopes ‘cookies and carols’ become annual holiday tradition

Free, all-ages community event set for next month

Man, 50, dies following incident in downtown Parksville

Teenage girl hailed as hero for intervening after witnessing situation unfold

Cold, stormy winter forecast across much of Canada, The Weather Network predicts

In British Columbia temperatures will be slightly above normal and precipitation will be just below normal

Midget no more: Sweeping division name changes coming to minor hockey in Canada

Alpha-numeric division names will be used for the 2020-2021 season and beyond

B.C. pushes for greater ‘transparency’ in gasoline pricing

Legislation responds to fuel price gap of up to 13 cents

B.C. woman ordered to return dog to ex-boyfriend for $2,000

After the two broke up, documents state, they agree to share custody of the dog, named Harlen

B.C. petition calls for seat belts in new school buses

Agassiz bus driver collects 124,000 signatures in support

Duncan man gets suspended sentence in Teddy the dog cruelty trial

Joe also gets lifetime ban on owning animals

Campbell River RCMP officer assaulted during traffic stop

Officer expected to make a full recovery; had been conducting impaired driving investigation alone

BC SPCA seeks help after senior cat attacked by dog twice

Nine-year-old tabby named Meow Meow will need her front leg amputated

Most Read