Key Takeaways:
- Youth unemployment in Canada has reached a 15-year high, with 14.7% of young workers unemployed in September.
- The job market is lacking in opportunities, and the economy is making it difficult for young people to get ahead.
- Many young people are struggling to find stable, full-time employment, with only 60% of workers aged 15-30 having full-time, permanent jobs in 2019.
- The rise of artificial intelligence is leaving a gap between entry-level roles and those that require experience.
- Young people are facing "economic scarring" due to the pandemic, with many missing out on critical face-to-face experiences and struggling to build professional networks.
Introduction to the Struggle
The story of 21-year-old Lauren Hood is a familiar one for many young people in Canada. Despite completing her degree in political studies, she has been struggling to find a job, applying to over 50 positions and facing rejection after rejection. Hood’s experience is not unique, with many young people in Canada facing a tough job market and an economy that is making it difficult to get ahead. The youth unemployment rate in Canada has reached a 15-year high, with 14.7% of young workers unemployed in September. This has left many young people feeling disillusioned and struggling to find stable, full-time employment.
The Decline of Career Prospects
The decline in career prospects for young workers is a trend that has been ongoing for years. In 1989, nearly 80% of workers aged 15-30 had full-time, permanent jobs, but by 2019, this number had fallen to around 70%. The situation has only worsened in recent years, with less than 60% of workers in this age group having full-time, steady employment. This decline is having a significant impact on young people, who are struggling to find stable employment and build their careers. The rise of artificial intelligence is also leaving a gap between entry-level roles and those that require experience, making it even harder for young people to get ahead.
The Impact of Economic Pressures
Canada’s economy is currently under pressure from U.S. tariffs and trade uncertainty, which is reining in hiring demand. This has had a disproportionate impact on young people, who are often the first to feel the effects of a downturn in the job market. The federal government’s decision to open up immigration to meet businesses’ demand for labor has also led to a crowded job market, making it even harder for young people to find employment. The situation is further complicated by the fact that many companies are using artificial intelligence to perform entry-level tasks, leaving a gap between starter roles and those that require experience.
The Search for Opportunity
For some young people, the search for opportunity has led them to look beyond Canada’s borders. Osobe Waberi, a young woman from Toronto, found that the high cost of living in the city made it impossible for her to save money or build a career. She has since moved to Oman, where she is working on building a public relations firm and fast-tracking her savings. Waberi’s story is not unique, with many young people feeling forced to leave Canada in search of better opportunities. This trend is having a significant impact on Canada’s economy, as the country loses talented and educated young people to other countries.
The Challenge of Home Ownership
One of the biggest challenges facing young people in Canada is the difficulty of achieving traditional markers of adulthood, such as home ownership. According to data from Generation Squeeze, it now takes 17 years for the typical 25-34-year-old to save for a 20% down payment on a representative home in Canada. This is up from just five years in 1986, and is having a significant impact on young people’s ability to build stable and secure lives. The situation is even more challenging in cities like Vancouver and Toronto, where the cost of living is extremely high and home prices are out of reach for many young people.
Economic Scarring and Shifting Timelines
The pandemic has had a significant impact on young people, with many missing out on critical face-to-face experiences and struggling to build professional networks. This has led to "economic scarring," with many young people facing significant challenges in their careers and personal lives. However, some experts argue that the challenges facing young people may not be a result of lost hope, but rather shifting timelines. Many young people are staying in school longer and entering the labor force later, which can make it seem like they are falling behind. However, this may simply be a reflection of changing societal norms and expectations.
A Glimmer of Hope
Despite the challenges facing young people, there are still reasons to be hopeful. Lauren Hood, the 21-year-old graduate who was struggling to find a job, recently received an offer to work at a retail store. While the job is seasonal and doesn’t offer benefits, it is a step in the right direction and a reminder that opportunities are still available for those who are willing to look for them. As the economy continues to evolve and change, it is likely that new opportunities will emerge for young people. However, it is also important for policymakers and business leaders to take steps to address the challenges facing young people, such as providing more support for education and training, and creating more opportunities for stable and secure employment.