Temporary employment in the downturn

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By Diane Galarneau

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After strong growth from 1997 to 2005, the increase in temporary employment began slowing in 2006. This type of employment registered a decrease before the downturn in total employment. In 2009, temporary work accounted for 12.5% of paid employment, down slightly from its peak of 13.2% in 2005.

Contract positions accounted for just over one-half (52%) of temporary jobs, representing nearly one million workers. Since 1997, this type of position has been the main source of the growth in temporary work. Contract work increased by more than 3% between 2005 and 2009 despite the overall employment decline in 2008.

Seasonal employment accounted for 1 in 5 temporary jobs. From 2005 to 2009, it declined more than 3%, mainly due to a downturn in its traditional industries like fishing and forestry, the general decline in manufacturing, and an employment drop in accommodation and food services.

Employees with casual jobs were mainly in retail and wholesale trade, educational services, health care, and accommodation and food services. This type of employment declined more than 10% between 2005 and 2009, with losses across most sectors.

The gap in hourly earnings between temporary and permanent positions ranged from 14% for contract jobs to nearly 34% for seasonal and casual jobs. Irrespective of whether temporary employment was at a peak, the earnings gap held steady.