The Current Economy for Youth
The Canadian job market is presenting significant challenges for today’s youth. The Statistics Canada’s June labour force survey released last week,
shows the unemployment rate for youth aged 15-24 rose nearly a full percentage point to 13.5 per cent in the month, more than double the rate of 6.4 per cent for the overall population. That’s the highest level since September 2014, excluding the temporary jump during the COVID-19 pandemic. According to Brendon Bernard, senior economist at Indeed, two major forces are making it difficult for young people to find work. Firstly, the general economic slowdown, fueled by higher borrowing costs and reduced consumer spending, is suppressing hiring. Secondly, the increased competition for a shrinking pool of job openings exacerbates the issue.
Over the past year, youth employment has seen a modest increase of 25,000 positions. However, the labor force for this age group has ballooned by 100,000, driving up the unemployment rate. Bernard describes this as a “gridlock in the job market,” with more young workers competing for fewer opportunities.
Ilona Dougherty, managing director of the University of Waterloo’s Youth and Innovation Project, shares stories of students sending out hundreds of applications with little to no response. This difficulty in breaking into the job market doesn’t just have short-term effects; it can cause “economic scarring,” where young workers feel perpetually behind and unable to achieve key life milestones like homeownership or starting families. Bernard agrees that a slow job market for youth can have lasting negative impacts on their careers.
While the federal government plans to reduce the number of temporary workers and students entering Canada to ease competition, it remains uncertain how quickly employers will resume hiring once the economy shows signs of improvement. As of June, the youth unemployment rate has risen to 13.5%, the highest since September 2014, excluding the pandemic years. Bernard also notes that many employers are favoring part-time over full-time positions, often filled by older workers, further limiting opportunities for young job seekers.
How Reboot Plus Helps
Economic downturns can have a profound impact on young Canadians entering the job market. The effects aren’t just immediate; they can leave lasting scars known as “labour market scarring.” Recent graduates face unique challenges, compounded by existing barriers and socio-economic factors. While policymakers focus on short-term relief, addressing the long-term consequences is important.
At Reboot Plus, we believe in the potential of every young person. Our goal is to help youth identify career and entrepreneurial opportunities within their communities. We aim to provide a positive educational experience and encourage continuous education to prepare for meaningful careers. Effective education leads to individual success and contributes to healthier, more equitable societies.
Empowering Canadian youth to dream big and realize their potential through education and career development is not just a lofty goal; it’s an investment in the future. By cultivating curiosity, offering mentorship, fostering a growth mindset, expanding access to education, and promoting an induvial to realize their fullest potential, Reboot Plus creates pathways for youth to thrive and contribute meaningfully to society.
Reboot Plus is more than just a program; it’s a thriving community. Engaging students in a supportive network of peers, educators, and mentors creates a sense of camaraderie that is invaluable during the transition to adulthood. Community involvement promotes shared learning and growth, enabling students to collaborate on projects, share experiences, and celebrate achievements.
The current economic landscape presents significant challenges for young Canadians entering the job market. However, programs like Reboot Plus are essential in helping youth navigate these difficulties. By fostering a supportive community and emphasizing continuous education and career development, Reboot Plus empowers young people to overcome barriers and build successful futures. Together, we can help youth realize their potential and contribute to a brighter, more equitable future for all.
With funding from the Government of Canada’s Future Skills Centre, we are examining whether a hope-centred education and career development program can help youth find their purpose.
Le projet Reboot Plus est financé par le Centre des Compétences futures du gouvernement du Canada