The ugly economic truth of youth employment
THE PERIOD OF applying for jobs for next summer has already begun, and summer jobs are few and competitive. Those who waited until April to begin their quest for employment found nothing, or got stuck with low-paying and non-resume-building jobs.
Economists and Statistics Canada have confirmed this. A slow recovery since the Great Recession in 2008 may have seen a more positive turn-around for the labour market as a whole, but there has been a squeeze on youth, as adults returning to work have moved into jobs traditionally held by students.
In May, Statistics Canada noted that employment for youth between ages 15 and 24 increased by 54,000 jobs from April. This reflects the start of seasonal summer work, but there was a small two per cent increase compared to last May. Although the August numbers will not be available until mid September, the July numbers saw little change from 2012. There is still the same amount of students unemployed at both the 15-19 and 20-24 age categories despite economic recovery.
In December 2011, the Toronto Star said that while unemployment hovers around seven per cent, it is approximately double for the youth age bracket. These numbers have for the most part been constant since 2011. In fact, the article suggested circumstances would not improve until 2015.
A constant rate of unemployment is better than an increasing one, but there are long-term factors to be considered with youth unemployment. Employers are looking for skills which cannot be gained in intern or volunteer positions. Employers prefer to see paid work experience on a resume and the student years are supposed to be the formative years of building it.
When jobs become available en masse, due to retirees or a booming economy, a less proficient work force will take their place unprepared. In a competitive global economy, how will the work force of tomorrow match up against other countries? Will it be as productive?
Youth unemployment is a large economic concern not just in North America. An Op-Ed piece in the New York Times by Niall Ferguson and Pierpaolo Barbieri brought attention to the challenges in Europe, which dwarf the unemployment rates in Canada. In June 2013, France’s youth unemployment was at 23 per cent while Italy’s was 34 per cent. Governments within the European Union are looking at serious ways to combat youth unemployment before it sends Europe into long-term economic chaos.
This phenomenon is not unprecidented. In 1983, former British Prime Minister Margaret Thatcher, in an interview with CBC, noted 25 per cent unemployment in both Canada and Great Britain. It may not be necessary for Canadian youth to panic. However, the emphasis is on youth to be prepared and get competitive—and that does not just mean more school.
If students have their eye on a job, now is the time to apply, as it will be necessary to meet the qualifications and more. The cost of not landing a job is greater student debt; a huge cost in the long term if provisions are not already being made.