How government policies are forcing a shift toward self-employment in order to survive
Job security is close to an all-time low. Fear of losing your job is rising, not just among those already out of work, but among people who never used to worry about losing their jobs.
The Bank of England released an international study that included Canada. It found that among the top 10 per cent of earners, more than one in four expect their job to disappear within the next five years. At that income level, most work in technology or other high-level fields where job security used to be taken for granted. Even they are no longer confident they will have somewhere to go next.
One field where positions have long been secure is education, especially at the post-secondary level and even more so for those with tenured or tenure-track positions. Academic programs are being cancelled and layoffs are hitting both public and private colleges and universities.
These cutbacks are largely driven by the federal government’s decision to cap foreign student permits. These students provide essential funding, often paying far higher tuition than domestic students. When that revenue declines, jobs are lost.
Vancouver’s University Canada West, a private, business-focused university that relies heavily on foreign students and concentrates on business-related courses such as MBAs, is one among many that have had to lay off faculty. One newly unemployed faculty member went public with his dismay at losing his position teaching business. He noted that, if he wanted to stay in Vancouver, he might have to take a job such as washing dishes.
That example points to a broader problem. Losing a job is no longer just a matter of finding another one. In many cases, comparable work isn’t there. The question is how you earn your next income.
The only real job security now is knowing what you are going to do next should your current position disappear. If employers are not offering opportunities, the alternative is to create your own work.
I’ve been self-employed for over 30 years and have created jobs and income for others. Detailed regulations, including specifications as minor as the type of chair that must be provided to employees, meant that much of that work took the form of contracts rather than traditional employment. Even so, being able to generate your own income becomes critical when work is uncertain.
Starting a business can generate income when salaried work is not available. It also contributes to the Canadian economy through job creation, innovation, exports and tax revenues.
Entrepreneurship drives our standard of living. Both business start-ups and per capita income are now falling. According to Statistics Canada, at the turn of the century, one in seven Canadian workers was self-employed. Today, the number is closer to one in 10.
The number of self-employed people with paid workers has fallen from 867,000 to 716,000 over the last 20 years, a drop of 17 per cent. This means fewer employers, fewer opportunities and slower economic growth.
Government policy is a major reason for this decline. The tax burden on business is high and complex. Regulatory requirements are also significant. Together, they discourage business formation and expansion.
The starting point for entrepreneurship is straightforward: what good or service can be offered that others are willing to pay for? Work previously done as an employee can be turned into consulting or contract work. Skills or hobbies may also be developed into businesses, sometimes beginning as side activities. In an era of AI-enabled technology, there may also be opportunities to provide high-touch personal services.
Starting a business is not easy. It requires a product or service, customers and, in some cases, capital. However, technology has reduced some barriers. Working from home and accessing global markets and suppliers is now possible for many. In some situations, creating a business may be more feasible than finding comparable employment.
Entrepreneurship is becoming less a choice and more a necessity as traditional job security declines. For individuals, the ability to generate independent income is increasingly important. For the broader economy, reversing the decline in business formation will require lower tax and regulatory barriers.
Dr. Roslyn Kunin is a respected Canadian economist known for her extensive work in economic forecasting, public policy, and labour market analysis. She has held various prominent roles, including serving as the regional director for the federal government’s Department of Employment and Immigration in British Columbia and Yukon and as an adjunct professor at the University of British Columbia. Dr. Kunin is also recognized for her contributions to economic development, particularly in Western Canada.
Explore more on Canadian economy, Economic policy, Liberal government
The views, opinions, and positions expressed by our columnists and contributors are solely their own and do not necessarily reflect those of our publication.
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country.
