Youth unemployment to cost the Canadian economy $18.5 billion by 2034 if not effectively addressed, according to a report by the company Deloitte
Youth unemployment in Canada has surged to 14.2 per cent, the highest it’s been in a decade, according to a recent report by Deloitte, commissioned by King’s Trust Canada. The report highlights that over 850,000 Canadians aged 15 to 29 are unemployed and lack post-secondary education or training, a gap that could cost the Canadian economy $18.5 billion in GDP by 2034 and over $5 billion in lost government revenue.
Beyond economic consequences, the report outlines significant social costs. Youth who experience long-term unemployment are more likely to face mental health challenges and reduced quality of life.
King’s Trust Canada, a charity founded by King Charles III, aims to tackle barriers to youth employment. The organization provides free skills training, networking opportunities and work experience to help young people prepare for the workforce.
King's Trust CEO Farah Mohamed discussed the report's findings and potential implications for the future of Canada's youth and workforce.
"We can't afford to give up $18.5 billion to our GDP . . . we also have to look at the loss of government revenue. Over the next ten years, the government could be giving up $5 billion and just those two numbers alone combined with the fact that if you do nothing you're gonna lose 226,000 jobs . . . these are the data points that I think should wake people up," said Mohamed.
Over the next ten years, the government could be giving up $5 billion . . . if you do nothing you're gonna lose 226,000 jobs . . . these are the data points that I think should wake people up.
Farah Mohamed, CEO
King's Trust Canada
Mohamed also emphasized the normalized disparity in youth unemployment. “Youth unemployment is twice that of adult unemployment. It’s always been that way, but it’s not acceptable,” said Mohamed.
The report attributes the rising youth unemployment rate to a shortage of job opportunities. Mohamed notes that many entry-level position now require applicants to have an undefined degree and several years of prior experience, further creating challenges for young people to enter the workforce.
Younger people, particularly those seeking their first jobs with little to no prior experience, are facing the greatest challenge. In October 2024, Statistics Canada reported that the unemployment rate for Canadians aged 18 to 24 in October stood at 12.8 per cent, more than double the 5.4 per cent for adults aged 25 and older.
Mohamed said the employment gap is also driven by a lack of skills development. “Employers don’t have time to teach skills like resiliency, teamwork, creativity and communication, but they expect young people to have them,” said Mohamed.
Employers don’t have time to teach skills like resiliency, teamwork, creativity and communication, but they expect young people to have them.
Farah Mohamed, CEO
King's Trust Canada
Additionally, the report states that vulnerable groups, including individuals with disabilities, Indigenous peoples and racialized communities, face even higher unemployment rates.
Mohamed said addressing youth unemployment requires collaboration between governments and corporations. She called on the government to incentivize employers to hire young workers, update employment laws to reflect today’s job market and apply a youth-focused lens to policy decisions.
"The King's trust can do its work. But the report calls for all of us to do things differently," said Mohamed.
Mohamed also called for corporations to be a part of the solution.
"There's a need for corporations to really try to remove all the barriers that they put up for young people that prevent them from gaining the experience they need to build their careers," she said.
Nimra Rizvi, a fourth-year political science student at McMaster, shared their perspective on the challenges of youth unemployment. "Minimum wage jobs that you could have gotten so easily in high school are so competitive now," said Rizvi.
Minimum wage jobs that you could have gotten so easily in high school are so competitive now.
Nimra Rizvi, fourth-year political science student
McMaster University
Rizvi also pointed out the challenges of securing a job after graduating. "Growing up, you were told that a bachelor's degree would be enough to get you started in whatever field. But now you need a master's degree, you need more postgraduate education in order to get a job position," said Rizvi.
For students struggling to find current and future employment, the McMaster Student Success Centre provides support through career counselling. This service offers students the opportunity to work with career counsellors to develop effective job search strategies and create future plans, equipping them with the tools they need to thrive in their professional journey.
The Student Success Centre also offers workshops on financial literacy and hosts job fairs throughout the school year, providing students with opportunities to enhance their financial skills and connect with potential employers.
For more information on the report, visit the King's Trust Canada website.
Graphic By: Yoohyun Park/Production Coordinator
A degree no longer guarantees a job, it’s time for universities to tell us why
By: Ardena Bašić, Contributor
A higher education is often touted as a means to working in higher-paying, more revered professions. However, students often end up in positions they neither expected nor desired after graduation. In fact, Forbes reports that individuals holding a bachelor's degree experience higher unemployment and underemployment rates. Specifically, a report from the New York Federal Reserve revealed that 33.8% of college graduates are underemployed, which means they are working jobs that do not even require a degree.
The COVID-19 crisis has not helped this issue, with Canada still steadily trying to regain the hundreds of thousands of jobs the pandemic eliminated from the country. Despite pouring thousands of dollars into their education, students are struggling to find reasonable work that connects to their degrees.
The solution to this issue is for universities to be more honest about what careers their programs can lead to, with an emphasis on professions that can be obtained without extra training or a graduate education. This will allow students to make a more informed decision on their post-secondary education and balance their expectations.
After graduation, it seems logical that one with a science-based degree would search for jobs in research or healthcare. Moreover, someone with a business degree might look for jobs in a field within the world of business. However, depending on the degree and the courses contained, some programs may not lead to jobs that seem to be common sense.
One reason this might be is that some programs focus on classroom learning, as opposed to exponential learning, like co-op. The lack of experience that comes with classroom-based programs has been shown to deter employers from hiring graduates from such programs.
The lack of experience that comes with classroom-based programs has been shown to deter employers from hiring graduates from such programs.
Other factors concern the idea of "prestige" that is associated with some programs or universities and a lack of networking skills integrated into programs. The former has even been formally studied, with results showing that students graduating from more reputable universities are 40% more likely to receive a positive response from employers. Any of these reasons could be justifiable for companies looking to hire. Thus, schools need to be honest about where they stand so students know what to expect when job-searching post-graduation.
Yet, the key to this transparency needs to be carefully articulated and prepared. Schools cannot simply state that an education in political science can lead to jobs in public service and likewise. Rather, they need to do empirical studies on alumni and graduates to be certain of the information they are conveying. Students will likely find information about the careers that alumni have followed to be more trustworthy than if they are to simply try and connect similar themes between programs and careers. Schools should begin conducting this type of research and perhaps even include alumni interviews or mentorships for students, both programs that will also be helpful in building a student’s resume.
Overall, choosing the right university and program is a pivotal step in beginning any career. Students should have all the information they could possibly need to make the right decision, including the profession they might consider in the future. Universities need to take steps now to ensure that students’ potential futures are transparent and accessible.
Pandemic restrictions impact student employees of the MSU
Two weeks before the McMaster Students Union closed the Grind Café for the rest of 2020, employees were unaware of the impending closure.
Located in the McMaster University Student Centre, The Grind had been operating on a reduced schedule and with reduced staff due to COVID-19 restrictions and the resulting lack of population on campus. In an email statement on Oct. 30, MSU Vice-President (Finance) Jess Anderson cited low foot traffic on campus and low usage at the Grind as the reason for the closure.
“During this time of transition, the MSU is committed to providing financial assistance to affected staff members, above and beyond the minimum standards defined by the Employment Standards Act. In addition, the MSU has provided guidance to staff in understanding and accessing available government programs related to COVID-19 support,” wrote Anderson.
However, it is unclear what the financial assistance entails.
Micaela Rayment, a full-time student and two-year Grind employee, had been working once per week at the Grind. Rayment, along with other employees, was working three hours per week.
Rayment began work as a teaching assistant at McMaster this semester and cited her reduction in Grind hours as the reason for an additional job.
“I had more hours last year, so I didn't have to have two jobs, right?” Rayment said,
The teaching assistant position is only for the fall term and Rayment said that she’ll have to find another job for the winter term.
“I think it'll probably be difficult. Especially since I'm in my final year and so I'll be entering into a job, only to leave it after graduating [and getting] into a job in my field. I won't be able to be too picky, but I know people who are trying to look for jobs right now and they're just not hearing anything back from anyone. So I don't know, not excited for that, if that's what has to happen,” added Rayment.
On Oct. 19, Rayment discussed her reduced hours but was unaware that the Grind would soon close. Rayment said that her supervisors had been upfront about reducing hours and had not heard anything about the Grind closing.
An employee of the Grind and TwelvEighty Bar & Grill, who requested anonymity due to conerns over job security, said on Oct. 19 that they believed the Grind would be closing shortly. Though they could not confirm with certainty, they said that they were led to believe that the MSU was looking to either further cut down or completely close the Grind café.
On Oct. 28, both Micaela and the source confirmed that the Grind would be closing on Nov. 2 indefinitely.
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The MSU has responded to pandemic restrictions and has created savings across the organization for students. The MSU organizational fee has been reduced, as well as a reduction in paid student employees.
Debbie Good, full-time manager of Compass Information Centre, explained that Compass normally employs 11 students in part-time positions during the year. Compass has been closed since the pandemic began and has been unable to re-employ any of the 11 students.
