ABSTRACT

The Economic Value of Civic and Voluntary Work

Volunteers make a tremendous contribution to our communities, to those in need, and to our quality of life -- providing health services, first aid and counseling; caring for the elderly, sick and disabled; running food banks and soup kitchens; teaching literacy; coaching sports; fighting fires; promoting arts and culture; working for the environment; and more.

The voluntary sector is also the backbone of our "civil society," and its active strength is a critical indicator of a healthy, participatory democracy and a touchstone of social health, stability and harmony. It is the arena in which we participate most fully as citizens, freely choosing our interests and associations, and expressing our deepest aspirations to help others.

Despite its importance, this voluntary work has no place in our current measures of progress based on the GDP and related economic growth statistics. Because no money is exchanged, it is not counted, and therefore not sufficiently "valued." One writer says:

"When recognized at all, volunteer work is most often seen as isolated individual acts of charity. Consequently, it remains largely outside the framework of policy discussions on the Canadian economy. The lack of reliable statistics on volunteer activity at the national level has tended to reinforce this invisibility."

But voluntary work does have direct economic value. If it were suddenly withdrawn, either our standard of living would deteriorate markedly, or else government and the private sector would have to provide the lost services for pay. Particularly in an era of fiscal restraint, we depend more than ever on the work of volunteers to provide a critical safety net and network of social supports on which a healthy market economy depends. Health Canada has identified such social supports as a primary determinant of health.

Using Statistics Canada time use surveys, national volunteer surveys, and labour market statistics, the Genuine Progress Index has assessed the economic value of voluntary work in Canada and all the provinces. Nova Scotians contribute 140 million hours a year of voluntary work time, the equivalent of 83,000 jobs, and $2 billion worth of services, equivalent to 10% of the provincial GDP.

In Canada as a whole, voluntary work is worth more than $50 billion a year, but voluntary hours per capita have declined by 8.7% since 1992. If GDP per capita were down 8.7%, there would be a national emergency. Yet the decline in voluntary work has gone unnoticed till now. By including the value of voluntary work as a core indicator of progress, the GPI can help ensure that both policy-makers and the public give community agencies and volunteers the attention and support they so richly deserve.