Millennials, men in their prime face income volatility: survey

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A steady paycheque has become elusive for millennials and prime-age working men in Canada, according to a new survey released on Wednesday.

Self-employed Canadians, as well as seasonal workers, experienced the highest rates of unpredictable income, followed by millennials and men in some of their prime earning years of between 45 and 54.

Of the self-employed adults surveyed, three-quarters reported inconsistent earnings. Meanwhile, nearly half of the millennials polled and 47 per cent of prime-age men did not have a steady paycheque, according to the survey that was funded by Toronto-Dominion Bank. The rate was similar among low-income earners.

TD commissioned the survey in order to measure "income volatility," or irregular and unpredictable pay, as well as the impact on personal finances and quality of life.

The survey found that income fluctuated the most for Canadians who were paid by the hour, held multiple jobs or were self-employed – characteristics common in the digital economy.

Across Canada, nearly 40 per cent of adults surveyed experienced "income volatility" – a percentage called "staggering" by TD's chief executive Bharat Masrani.

"All of us know this is a problem," he told reporters.

The survey found that unstable pay had adverse effects, including higher levels of stress, inability to pay for groceries and other bills, as well as a feeling of "falling behind."

The study's researchers said this was the first time income volatility has been measured in Canada and that it would help policy makers better prepare for shifts in the country's labour market.

Ottawa has so far tried to cope with the commodities slump by increasing training resources and temporarily boosting employment insurance benefits for hard-hit regions.

Mr. Masrani said "many stakeholders" would be required "to solve" income volatility. The chief executive said one way TD has helped mitigate the negative effects is by providing most of its part-time employees with health and pension benefits.

When asked if other businesses should provide benefits to their part-time and temporary workers, he said, "I think it depends on which industry you are. We live in a market economy. I am assuming other banks do what TD does."

Among the provinces, the highest rate of income volatility was seen in Alberta, a region that has lost thousands of high-paying energy jobs.

Ipsos surveyed 3,000 adults between April 13 and 23 of this year. TD said the bank would fund further research in this area and could explore why certain cohorts, such as prime-age men, are experiencing higher rates of income volatility.