By Max Singh
It is indeed a sign of the current economic times that an increasing number of young people are also bearing the brunt of a post-pandemic recovery, the rising cost of living, and unaffordability. And nowhere is this more apparent than examining young people’s employment prospects in Canada.
Statistics Canada’s June labor force survey shows the unemployment rate for youth aged 15-24 rose nearly a whole percentage point to 13.5 percent in the month, more than double the rate of 6.4 percent for the overall population. That is the highest level since September 2014, excluding the temporary jump during the COVID-19 pandemic.
Why is youth unemployment on the rise?
There are several factors; the Canadian economy needs to perform better, while rising interest rates, the COVID-19 recovery, and slowing consumer spending are curtailing new job vacancies in businesses. After a strong start and rebound after the pandemic, when employers struggled to find enough labor to meet demand, many workers—especially young workers—are now competing for jobs in a very tight market.
The rising rate of newcomers to Canada, immigrants, temporary workers, and international students from abroad is also affecting the employment situation for young people. Once employers actively lobbied for foreign workers, the changing economic climate has left few jobs but more people looking for employment. Between 2023 and the present, Canada welcomed 1.3 million newcomers, and the 15–24-year-old population sector grew by an estimated 335,700 people since June 2023, according to Statistics Canada.
In a recent press article on Canada’s youth employment situation, Tim Lang, president and chief executive at Youth Employment Services, one of the country’s leading employment service organizations that helps youth aged 15-30 find employment opportunities, said he has seen an increase in young people seeking their services, including young newcomers to Canada, which has caused an increase in demand for jobs.
“A lot of those new Canadians are youth in the 20s-30s age, so there is far more competition for the existing jobs,” Lang said in the report. “We know in the long-term that increases in new Canadians can lead to further economic opportunity and new businesses, but in the short-term, it certainly means more competition.” He adds, “Many organizations are opting for part-time offerings instead of full-time,” he said. “People with more experience are getting a second part-time job, which is knocking out youth looking for their first job or a summer job because employers are opting to give it to people with more experience.”
The effects of youth unemployment.
The implications for young people being out of work or not finding gainful employment are manifold. Not only is being unemployed tough when you are young, but it is also a waste of valuable human capital. Not only would they spend less and not contribute to the economy, but Canada would also be deprived of a developing talent pool and experienced workforce that contributes valuable tax dollars to the Canadian economy.” Underemployment can limit the development of young people’s careers and prospects in the future,” says Lang.
Ultimately, many young people, especially newcomers, need employment established earlier so they can develop a promising life and future in Canada.
What can young people do?
Studies prove that young people should continue to invest in themselves through further education and training where possible. And even consider skills and education courses that are transferable within different job sectors. In addition, brushing up on the so-called “soft skills “such as networking, effective communication, new languages, and honing social skills will benefit young people. One job recruiter says, “The number one thing after relevant qualifications and experience is networking –80% of jobs are unadvertised, the so-called: “word of mouth, hidden job market” building up contacts and getting to know people and potential employers or people who can help you obtain a job or can give you leads is crucial.”
Hope for the future
However, it is not all doom and gloom for young people- Mike Shekhtman, regional director at recruitment firm Robert Half in Vancouver, said in a recent report that there are still some industries and pockets in the country where hiring demand persists. He names healthcare and food manufacturing sectors where youth can still find job prospects. Shekhtman says young workers will have to be “patient” at times. Employment analysts and economists note that unemployment fluctuates depending on how a country performs economically. There are cycles of booms and busts in the economy. When the economy contracts – jobs may be scarce; when the economy booms – there are more jobs. In reality, with Canada’s booming population, vast land area, limitless natural resources, and resiliency, the job market, although completive, does and will offer future possibilities and accommodate the growing number of young people who will be the future of Canada.
Sources: Statistics Canada, Government of Canada, Youth Employment Services Canada, Service Canada, Canadian Labour Market Survey. Promit Mukherjee and Ismail Shakil. Reuters, Mike Shekhtman, Robert Half recruitment. Tim Lang.
