Pros And Disadvantages Of Unemployment

Potential decrease in the unemployment rate is another advantage for the workers. Workers in non-standard employment are hired in accordance to the needs of the market (supply and demand). Labour becomes more competitive and efficient to attain jobs and therefore increases the amount of output that increases profitability of the employer. Increase in the profitability of employer creates more jobs and expands the economy. Essentially, non-standard employment operates in accordance to the principles of the free market economy. Chassin (2013) has shown a correlation between the movement towards the free market economy and decrease of unemployment rate by stating that “In Europe, where the regulation of labour markets is very heavy, unemployment …show more content…
The major disadvantages for workers in non-standard employment as mentioned by Walker (2011) are ”…working without job security, being deprived of statutory benefits and entitlements, including protection against unfair dismissal, minimum wages, sick leave and aspects of annual leave, as well as being disadvantaged in other areas such as lower pay, lacking training and career paths.`` (p. 18). Although some of the workers could earn more by being self-employed, others are earning less compared to being a regular employee. The law does not provide as much protection to independent contractors as it provides employees with. As it was mentioned by Chaykowski (2005) ``About one quarter of the self-employed are in the lowest income category (of $20,000 or less). `` (p.24). In some cases the costs of being self-employed outweigh the benefits. Chaykowski (2005) also mentioned that ``... the degree of employment continuity can affect other labour market outcomes, such as access to training that can affect earning over the longer term.`` (p. 5). Lack of training could prevent workers from continuous growth and therefore from a continuously increasing …show more content…
According to Fudge, Tucker and Vosko (2003) although Human Rights generally apply to everyone regardless of the employment status, pay equity is an exception “Only persons who are employees are entitled to benefit from pay and employment equity legislation” (p. 213). Employers are not obligated to comply with pay and employment equity legislation as independent contractors are not their employees, but rather are considered to be their “partners”. Tools required for the performance of the job could also add extra costs to operating as an independent contractor as mentioned by Fudge, Tucker and Vosko (2003) "Self-employed persons are required to comply with some of the statutory obligations imposed on employers, such as the duty to use prescribed protective devices, and they may be prosecuted for failing to do so, even though compliance may cause economic hardship." (p.