Statistics Canada reported today that employers cut the number of employees by 98,000 in August, which was largely masked by 87,000 more Canadians identifying themselves as self-employed. As a result, the headline level of “employment†– which includes self-employment – was little changed.
Self-employment ranges from high-income professionals to people eking out a living doing odd jobs. However, when a large increase in self-employment coincides with a large drop in positions paid by an employer, it begs the question of whether Canadians are becoming self-employed by choice or because jobs are not available. One also wonders how many survey respondents are simply more comfortable reporting themselves as self-employed rather than unemployed.
The headline numbers are weak and they would be disastrous but for the surge in self-reported self-employment. Policymakers must focus on creating jobs and ensuring adequate benefits for jobless workers.
