Evolution of the Canadian workplace: work from home
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Evolution of the Canadian
workplace: work from home
Ernest B. Akyeampong and Richard Nadwodny
CANADA EVOLVED FROM a rural and resource- all collected similar data. However, these surveys dif-
A
S
based economy into an urban and industri- fer in their questions, reference periods, and designs
alized one, residences became largely distinct (and indeed for some surveys, the questions were dif-
from workplaces. Throughout the 1900s, increased ferent in different years). As a result, no consistent
access to cars, improved transportation infrastructure, time series exists on home-based workers, making it
and growth of public-transit systems combined to impossible to be precise on trends over the past three
change the face of Canadian towns and cities, and fur- decades.
ther increased the distance between home and work
Nevertheless, similarities in question wording among
for many. However, in the past decade or two, the
some surveys permit the construction of two mini-
trend appears to be reversing somewhat. Technologi-
series on trends. The censuses of 1971, 1981 and
cal advances, notably in the information area (for
1991 are fairly comparable, as are the SWA (1991 and
example, computers and the Internet), have made it
1995) and the GSS 2000. Compared with the SWA
possible for workers in many industries to work from
and the GSS, the census definition of a home-based
their homes, or even while travelling. There is a gen-
worker is more restrictive, implying lower home-
eral belief that downsizing, restructuring, and contract-
based numbers in the census series (see Data sources,
ing-out practices by corporations and governments,
questions and estimates).
especially in the past decade, may also have pushed
some employees into home-based self-employment1, According to the census, the number of home-
but that perception is not supported by empirical find- based workers (employees plus self-employed) rose
ings in a recent study (Lin, Yates and Picot, 1999).2 from 613,000 to 1,079,000 between 1971 and 1991.
However, the increase was in line with that of the over-
Using various surveys, this study examines the
all workforce, so the proportion of persons working
number of Canadians usually working from home
at home remained virtually unchanged at around 8%.
over the past three decades. It discusses the advan-
Both employees and the self-employed saw their
tages and disadvantages of this arrangement. It pro-
home-based numbers increase (from 196,000 to
files who these workers are, what kind of work they
461,000 for employees and from 417,000 to 618,000
do, the volume of work they perform, and how they
for the self-employed), but the share of home-based
accomplish itespecially their use of computers. It
employees remained virtually unchanged at around 4%
also looks at job quality.
of all employees, while the share of the work-from-
home self-employed rose from 39% to 43% of the
Size of the work-from-home workforce total self-employed.
Estimates of the number of people working at home The year 1991 presents a classic example of the
date back to the 1971 Census. Since then, the Survey effects of questionnaire word changes and seasonality
of Work Arrangements (SWA), the Survey of Labour on survey results. That year, the census (conducted in
and Income Dynamics, the General Social Survey June) counted 461,000 home-based employees, while
(GSS), and the Workplace and Employee Survey have the SWA (conducted in November) estimated
617,000almost one-third more than the census. (The
Ernest B. Akyeampong is with the Labour and Household 1991 SWA did not cover the self-employed.) While
Surveys Analysis Division. He can be reached at some of the difference can undoubtedly be
(613) 951-4624 or ernest.akyeampong@statcan.ca. Richard attributed to seasonality, some was due to differences
Nadwodny is with Census Operations Division. He can be in questionnaire wording: The less restrictive SWA
reached at (613) 951-3950 or richard.nadwodny@statcan.ca. definition contributed to the larger SWA count.3
30 / Winter 2001 PERSPECTIVES Statistics Canada - Catalogue no. 75-001-XPEEvolution of the Canadian workplace: work from home
For the employer, a work-from-
Data sources, questions and estimates home arrangement may increase
employee productivity, reduce
Home-based worke r s
expenses for work space, improve
Total Employees Self-employed recruitment and retention of
’000 / (% of workforce)
employees, and reduce absentee-
ism.4 Among the most commonly
Census of Population cited disadvantages are problems
1971 Where do you usually work? 613 196 417 related to co-ordination and com-
(8) (3) (39)
munication, lack of control over
1981 At what address did you 773 298 474 quality of work, and problems as-
(usually) work? (7) (3) (41)
sociated with information security.
1991 At what address did this 1,079 461 618
person usually work? (8) (4) (43) Many of the pros and cons listed
Survey of Work Arrangements
above for employees also apply to
1991 Excluding overtime, does … usually ... 617 ...
self-employed workers. Additional
work any of his/her scheduled (6) advantages include possible cost-
hours at home? (employees only) savings resulting from operating a
1995 Excluding overtime, does … 2,129 1,003 1,126
business at home instead of at an
usually do any of his/her (16) (9) (53) outside premise, as well as access
work at home? (employees) to certain tax write-offs.5
Does … operate his/her business
from home? (self-employed)
Society in general can also ben-
efit through reductions in road
General Social Survey congestion (and possibly reduced
2000 Excluding overtime, do you 2,795 1,426 1,369 accidents and their associated costs).
usually work any of your (17) (10) (50)
scheduled hours at home?
Air pollution and greenhouse gas
emissions would also be less. On
the negative side, home-based
businesses may contribute to
The 1995 SWA and 2000 GSS Results from the censuses, SWA increased noise, traffic and pollu-
estimates also show that the and GSS also suggest that a large tion in some residential neighbour-
number of people doing some or majority of home-based workers hoods.
all of their work at home rose put in only a few hours of work at
from 2,129,000 in 1995 to home each week. Who works at home
2,795,000 in 2000, but their share
of total employment remained vir- Pros and cons of According to the GSS, 2.8 million
tually unchanged around 16% to working at home people worked at home in 2000,
17%. Both home-based employ- (Table 1). Although this number
ees and self-employed saw their Working at home has both advan- was equally split between employ-
numbers rise over the period tages and disadvantages. For the ees and the self-employed (1.4 mil-
from 1,003,000 to 1,426,000 for employee, it permits increased flex- lion each), the former represented
employees, and from 1,126,000 to ibility in scheduling activities; makes only 10% of all employees while
1,369,000 for the self-employed. it easier to balance work and per- the latter accounted for 50% of
However, because growth in sonal or family demands; reduces their group. Employees and the
home-based work was matched by expenses for transportation, cloth- self-employed are profiled sepa-
a proportionately equal growth in ing and food; and cuts commuting rately because the decision for an
other work, the percentages of time. On the negative side, work- employee to work at home is gen-
home-based employees and self- ing at home may reduce ones erally made jointly by the employer
employed hardly changed over the social circle, stifle career advance- and the employee, unlike the self-
period (around 9% to 10% for ment, or even increase the work- employed.
employees and ranging from 50% load.
to 53% for the self-employed).
Statistics Canada - Catalogue no. 75-001-XPE Winter 2001 PERSPECTIVES / 31Evolution of the Canadian workplace: work from home
tional attainment. This is mainly
Table 1: Persons working from home by because the occupations most con-
selected characteristics, 2000 ducive to this arrangement tend to
have higher concentrations of
Employees Self-employed highly educated workers, and vice
Work from home Work from home
versa. Among employees with uni-
versity degrees, about 23% usually
Total Total Incidence Total Total Incidence did some or all their work from
’000 % ’000 % home, compared with only 4%
among those without a high-school
Both sexes
Male
13,932
7,359
1,426
782
10.2
10.6
2,750
1,784
1,369
826
49.8
46.3
diploma.
Female 6,572 644 9.8 965 544 56.3 Among self-employed workers,
Age the incidence of work from home
15-24 2,991 137 4.6 141 60 42.3 was around 50% for most of the
25-54
55 +
9,782
1,159
1,174
114
12.0
9.8
2,078
531
1,046
263
50.4
49.6
demographic groups selected.
Notable exceptions were lower-
Work status than-average incidences among
Full-time
Part-time
5,845
960
747
128
12.8
13.4
1,358
312
727
166
53.6
53.1
young entrepreneurs (42.3%), entre-
preneurs with the least education
Education (38.2%), and the never-married
Less than high school
diploma 2,216 86 3.9 435 166 38.2
group (40.2%). As well, higher-
High school diploma 2,659 147 5.5 475 202 42.6 than-average incidences (over
Some postsecondary 2,379 189 8.0 384 204 52.9 56%) were found among entrepre-
Community college
certificate 3,717 347 9.3 688 368 53.5
neurs with university degrees and
University degree 2,883 655 22.7 753 426 56.6 the separated, divorced or wid-
owed.
Marital status
Married 8,316 1,009 12.1 2,084 1,065 51.1
Separated, divorced, What and how much is
widowed 1,008 99 9.9 213 119 56.1 done at home
Single 4,332 304 7.0 395 159 40.2
Work from home varies by occu-
Age of youngest child
With children 5,393 700 13.0 1,330 690 51.9 pation and industry (Table 2). In
Pre-school age 1,350 199 14.8 279 141 50.5 a profit-maximization market
5-12 years 1,935 259 13.4 482 268 55.7 economy, an employer would
13 years and over 2,109 241 11.4 569 281 49.3
Without children 411 47 11.5 49 24 49.5 allow such an arrangement based
on factors such as operational fea-
Source: General Social Survey
sibility, effects on the morale and
productivity of co-workers, and
union demands. Operational fea-
Among employees, the inci- their single (never married) coun- sibility rests partly on whether links
dence of home-based work is mar- terparts (12.1% versus 7.0%). Part with co-workers require an
ginally higher for men (10.6%) than of the difference reflects an age employee to be present on the
for women (9.8%). Core-age effect. The practice was more employer site, and on whether the
workers (25-54 year-olds) are the prevalent among employees with equipment used at work is available
most likely to work at home young children, especially pre- at, or portable to, home. An auto-
(12.0%), and youths (15-24) the school aged (14.8%), than among assembly worker, for example, has
least likely (4.6%). The practice was employees without children to work at the employers work
almost equally as prevalent among (11.5%). site; a social science researcher, on
full-time and part-time workers. the other hand, can more easily
The likelihood of an employee
Married employees were more work from home.
usually doing some or all of their
likely to work from home than
work at home rises with educa-
32 / Winter 2001 PERSPECTIVES Statistics Canada - Catalogue no. 75-001-XPEEvolution of the Canadian workplace: work from home
Table 2: Persons working from home by industry, occupation and province, 2000
Employees Self-employed
Work from home Work from home
Total Total Incidence Total Total Incidence
’000 % ’000 %
Industry 13,932 1,426 10.2 2,750 1,369 49.8
Agriculture 151 -- -- 255 166 65.2
Forestry, fishing, mining, oil and gas 289 28 9.6 75 27 35.5
Utilities 108 -- -- -- -- --
Construction 630 44 7.0 273 114 41.6
Manufacturing 2,200 164 7.4 146 70 48.4
Trade 2,095 149 7.1 325 141 43.2
Transportation and warehousing 610 50 8.3 155 36 23.0
Finance, insurance, real estate and leasing 762 107 14.0 168 105 62.3
Professional, scientific and technical 676 155 22.9 355 244 68.7
Management, and administrative and other support 394 44 11.1 182 68 37.4
Educational services 1,035 242 23.4 61 33 53.7
Health care and social assistance 1,236 107 8.6 200 127 63.6
Information, culture and recreation 700 90 12.9 135 87 65.0
Accommodation and food services 1,018 36 3.6 96 35 36.1
Other services 477 62 12.9 218 77 35.1
Public administration 906 95 10.5 16 -- --
Occupation
Management 902 229 25.4 508 222 43.6
Business, finance and administrative 2,580 301 11.7 295 191 64.7
Natural sciences 949 175 18.4 154 99 64.5
Health 619 28 4.5 103 40 39.2
Social science, education 1,023 271 26.5 108 76 70.0
Artistic, culture, recreation and sport 312 52 16.5 203 134 65.9
Sales 3,615 220 6.1 503 246 48.8
Trades, transport and equipment 1,830 74 4.0 369 110 29.8
Occupations unique to primary industry 377 20 5.4 334 182 54.5
Occupations unique to processing and manufacturing 1,199 35 2.9 80 32 39.4
Province
Newfoundland 243 21 8.6 33 15 46.1
Prince Edward Island 69 -- -- -- -- --
Nova Scotia 446 43 9.5 57 27 46.7
New Brunswick 355 27 7.6 57 20 35.8
Quebec 3,400 354 10.4 664 305 45.9
Ontario 5,465 552 10.1 976 497 51.0
Manitoba 524 49 9.4 101 56 55.1
Saskatchewan 415 38 9.2 116 61 52.3
Alberta 1,403 142 10.2 342 174 50.8
British Columbia 1,611 193 12.0 394 210 53.3
Source: General Social Survey
With these factors in mind, the lowest incidences of The picture by industry largely mirrored that by
home-based work were found among workers in occupation. The practice of working from home was
occupations unique to processing and manufacturing least common among employees in accommodation
(2.9%); trades, transport and equipment-operating and food services (3.6%), construction (7.0%), trade
(4.0%); and health (4.5%) occupations. In contrast, (7.1%) and manufacturing (7.4%). Higher incidences
the highest incidences were found among employees were observed among employees in educational serv-
in managerial positions (25.4%) and in social-science ices (23.4%) and the professional, scientific and techni-
and education professions (26.5%). cal industry (22.9%).
Statistics Canada - Catalogue no. 75-001-XPE Winter 2001 PERSPECTIVES / 33Evolution of the Canadian workplace: work from home
The incidence of work from Without assigning causality, the The frequency of use of com-
home among the self-employed by GSS shows that the advent of puters and other automated tech-
occupation and industry was gen- computer and automated technol- nology was also greater among
erally similar to that found among ogy affected the work of home- home-based employees. The pro-
employees, except that for each based workers more than that of portions using the telephone or e-
occupation and industry, the prac- their nonhome-based counter- mail every day or several times a
tice was much more common parts, and that home-based work- week for work-related purposes
among the self-employed. ers used these new technologies were 58% and 48% respectively;
much more. This applied both to for their non-home based counter-
Incidence also varied by prov-
employees and the self-employed parts, the corresponding propor-
ince. These variations reflect in part
(Table 3). tions were less than half26% and
differences in provincial industry
19%.
and occupational mixes. The prac- Among employees, about 77%
tice was most common in British of home-based workers compared As well, a higher proportion of
Columbia (12.0%) and least com- with 54% of their nonhome- home-based employees (49%) felt
mon in New Brunswick (7.6%). based counterparts felt that their their work had become more in-
For self-employed workers, those work had been greatly or some- teresting as a result of computers,
living in Manitoba (55.1%) were what affected by the computer or compared to 30% for nonhome-
most likely to work from home. automated technology in the past based employees.
Those in New Brunswick were the five years. Furthermore, about
least likely (35.8%) to do so. 83% of home-based employees Job quality
compared with 51% of their non-
As stated earlier, most employ- Job quality for home-based and
home-based counterparts reported
ees working at home do so for nonhome-based employees can
using a computer in their main job
only a few hours each week.6 In be measured in several ways. Data
in the past 12 months.
2000, about 65% of such employ-
ees worked between one and 10
hours each week at home. Less
than 3% put in more than Table 3: Use of computers or automated technology, 2000
40 hours. About 33% of the
work-from-home self-employed Employees Self-employed
put in between one and 10 hours
of work at home each week, and Work at Work
Work at employer’s Work at outside
17% of them reported more than home premise home home
40 hours.
%
Use of computers and Used a computer in main job in past
information technology 12 months 83.3 51.3 60.4 40.7
Advances in information technol- Work has been greatly or somewhat
affected by computers or automated
ogy are generally believed to be technology in last 5 years 76.5 53.7 60.8 47.4
among the driving forces behind Work has become more interesting
the growth in home-based work as a result of computers in
for both employees and the self- last 5 years 49.1 29.7 37.2 27.3
employed, especially in the past Used the Internet every day or several
times a week at home last month 51.8 29.2 45.2 27.6
decade or two. Notably, innova-
tions to telephone systems and the Used the telephone every day or
several times a week for work or
advent of e-mail and the Internet business related purposes 57.7 26.5 39.6 25.5
have made it easier to keep in touch Used e-mail every day or several
with co-workers and clients from times a week for work or business
practically anywhere. But what evi- related purposes 47.8 19.5 26.7 16.1
dence exists to support this conten- Source: General Social Survey
tion?
34 / Winter 2001 PERSPECTIVES Statistics Canada - Catalogue no. 75-001-XPEEvolution of the Canadian workplace: work from home
limitations, however, restrict the focus to comparisons
of wages and non-wage benefits. Both the hourly wage Chart: Standardization narrowed
rate and non-wage benefits dataspecifically em- wage differences and reversed most
ployer-sponsored pension, medical, or dental plan non-wage disparities.
coverage, and vacation and sick leave entitlements
analyzed in this study come from the 1995 SWA. Hourly wage rate ($)
Although somewhat dated, this survey is the only 25
Hourly earnings $/hour
source of information available. 20
An earlier study (Pérusse, 1998) found that employ- 15
ees who usually worked at home earned an average 10
hourly wage higher than that of their nonhome-based 5
counterparts ($20.15 versus $14.65). The former were 0
also more likely to be covered by an employer-spon- Non-standardized Standardized
sored pension, dental or medical plan, and entitled to
paid sick leave (Chart). Nevertheless, since both the Coverage (%)
wage rate and non-wage benefit coverage depended 100
on many other factors including age, sex, industry, 80
Non-standardized data
occupation, education, experience, job tenure, union
60
membership and corporate size, the data had to be
standardized to arrive at more statistically meaningful 40
comparisons. 7 Standardization changed the picture 20
markedly. For example, standardizing by age, sex and 0
occupation narrowed the hourly wage differential (to
100
$17.07 versus $15.07) between the two groups of Standardized data
workers and reversed the results with respect to pen- 80
sion, health and dental plan coverage. Thus, the stand- 60
ardized results confirmed that wage rates and 40
non-wage benefits are the combined result of many 20
factors, and that the place of work may not necessarily 0
be an important determinant, if at all. Pension Supplementary Dental Paid Paid
plan health plan sick vacation
plan leave leave
Summary
Work at home Work at employer’s premises
Working from home offers potential advantages as
well as disadvantages to employers, employees and the Source: Survey of Work Arrangements, 1995
self-employed alike. Although no consistent time
series exist, data from various sources suggest that the
number of Canadians doing some or, in a few cases, for work purposes is much higher among home-based
all of their regular work at home has been workers than among those who work only outside
increasing over the past three decades. That growth, the home. Also, a larger percentage of home-based
however, has been matched by similar proportionate workers (employees and self-employed alike) felt their
increases in the employment of nonhome-based work had become more interesting as a result of
workers, leaving the share of home-based work rela- computers.
tively unchanged. For operational reasons, the
practice is most common among social science and The future of home-based work, especially for
educational workers, and least common among manu- employees, rests on many factors. From the employ-
facturing, construction, accommodation and food ers side, these include issues related to co-ordination
service, and health workers. Innovations in informa- and communication with employees, concerns about
tion technology in the past decade or two appear to the security of confidential information, and problems
have affected home-based workers more strongly. and costs of providing computer technical support at
Use of the computer, e-mail, Internet and telephone home. From the employees side, the appeal of a
Statistics Canada - Catalogue no. 75-001-XPE Winter 2001 PERSPECTIVES / 35Evolution of the Canadian workplace: work from home
home-based work arrangement is that it is not static 6 Though likely more interesting, the survey data do not
and can change according to personal and family de- allow the estimation of proportion of scheduled weekly work
mands. For the self-employed, zoning laws will con- time performed at home.
tinue to play an important role.
7 Standardization is a statistical technique that makes it
possible to assess observed differences in a particular charac-
Perspectives teristic between one group and another, assuming that these
two groups are identical in some respect. In the case of paid
n Notes work at home, it is of interest to know whether merely
1 According to the Labour Force Survey, self-employment working at home is associated with pay that differs from that
in the professional, scientific and technical service industry obtained from working at an employers premises. To
(which includes many consultants) more than doubled eliminate the effect of age, sex and occupation on their wages,
(+119%) from 1989 to 1999, much more than the 37% rise respondents are categorized as home worker/nonhome-
in overall self-employment during the same period. worker in such a way that each combination of variables is
represented in the same proportion as in the overall group
2 The fixed-effects modelling results of the Lin et al. study of workers.
show a statistically significant but empirically small negative
(positive) relationship between self-employment and unem-
ployment (full-time paid employment). n References
Lin, Z., J. Yates and G. Picot. Rising self-employment in
3 The 1996 Census was not used in this study because the the midst of high unemployment: an empirical analysis of
definition of the home-based worker was more restrictive: recent developments in Canada. Statistics Canada Research
The term usually work at home was defined as most of the time Paper Series # 133, Analytical Studies Branch, March 1999.
(for example, 3 days out of 5). Not surprisingly, under this
tighter definition, the 1996 Census yielded a count of Pérusse, D. Working at home. Perspectives on Labour and
1,086,000 home-based workers, hardly any different than the Income (Statistics Canada, Catalogue no. 75-001-XPE) 10, no.
1,079,000 in the 1991 Census. (The 2001 Census also used 2 (Summer 1998): 16-23.
the more restrictive definition.)
---. Home-based entrepreneurs. Perspectives on Labour and
4 Nortel Networks is an example of a large Canadian high- Income (Statistics Canada, Catalogue no. 75-001-XPE) 10, no.
tech company that claims to use work-from-home arrange- 3 (Autumn 1998): 31-34.
ments (or HOMEbased program, as it is referred to by the
company) to attract workers and retain employees. In 2000, Pilon, J. Alternative work locations: the concepts of work-
about 17% (13,000) of the companys global employees ing at home and telework. Statistics Canada working group
belonged to its telework program. Nortel estimates that paper (Labour and Household Surveys Analysis Division)
adoption of this program has resulted in a 20% reduction in September 1998.
worker absenteeism, a 10% improvement in employee job
satisfaction, and a 24% reduction in staff turnover. The Smith, P. Assessing the size of the underground economy
company also estimates an annual savings of $20 million in in Canada: the Statistics Canada perspective. Canadian Eco-
real estate costs due to its telework program, and an annual nomic Observer (Catalogue no. 11-010-XPB) (May 1994): 3.16-
reduction of 30 million pounds of greenhouse gas pollutants 3.33.
into the atmosphere as a result of fewer employees commut-
Statistics Canada. Work arrangements in the 1990s. Ana-
ing (Telecommute Connecticut-Research). lytic report (Catalogue no 71-535-MPB) no. 8 (1998).
5 Canadian tax laws permit persons using their home as a
workplace to deduct some home depreciation costs and other
expenses such as energy use when filing their tax returns.
36 / Winter 2001 PERSPECTIVES Statistics Canada - Catalogue no. 75-001-XPEYou can also read
