‘Economic scarring’: What’s at risk as youth unemployment soars

A comparatively slow cooling successful nan wide Canadian labour marketplace mixed pinch surging levels of unemployment among Canada’s younker is simply a inclination that experts opportunity could time off nan country’s youngest workers pinch “economic scarring.”

Statistics Canada’s June labour unit survey, released past week, shows nan unemployment rate for younker aged 15-24 roseate astir a afloat percent constituent to 13.5 per cent successful nan month, much than double nan complaint of 6.4 per cent for nan wide population. That’s nan highest level since September 2014, excluding nan impermanent jump during nan COVID-19 pandemic.

Rough economical conditions are particularly affecting students during what should beryllium nan engaged summertime occupation season. The complaint of unemployment among students betwixt semesters astatine schoolhouse is astatine its highest level since 1998, StatCan said, arsenic little than half (46.8 per cent) of this cohort recovered jobs this summer.

Brendon Bernard, elder economist astatine occupation hunt tract Indeed, tells Global News that 2 forces are colluding simultaneously successful Canada’s labour market, “and they’re not successful favour of younker uncovering work.”

The first obstacle for today’s younker is nan wide slowing successful Canada’s economy, tied to higher borrowing costs and slowing user spending, which is suppressing hiring appetite successful businesses.

Bernard says that nan levels of occupation postings connected Indeed are now somewhat beneath wherever they were earlier nan COVID-19 pandemic. That’s a “pretty sudden” displacement from moreover 18 months agone erstwhile employers were still struggling to find capable labour to meet request during nan pandemic recovery, he notes. As nan good of unfastened jobs dries up, a increasing number of workers are competing for nan fewer unfastened positions.

A statement from BMO elder economist Robert Kavcic earlier this week noted that younker employment has successful truth grown by astir 25,000 positions complete nan past year, but nan size of nan labour unit successful that property scope ballooned by 100,000 people, driving up nan unemployment rate.

More and much young workers competing for less and less positions has led to a “gridlock successful nan occupation market,” Bernard explains.

Ilona Dougherty is nan managing head of nan University of Waterloo’s Youth and Innovation Project. She tells Global News that she is inundated pinch stories from students sending retired hundreds of applications and getting nary response.

Difficulty breaking into nan labour marketplace doesn’t conscionable impact younker successful nan short-term, but tin stunt nan improvement of their profession successful nan future, Dougherty explains. She calls nan arena “economic scarring,” nan emotion that workers tin ne'er get up nary matter really difficult they push and whitethorn miss retired connected cardinal milestones for illustration owning a location aliases starting families.

“This is not conscionable a one-time point that’s applicable for this summer, and young group will get complete it,” she says. “It’s nan consciousness … that you started disconnected connected nan incorrect ft and that you’re ne'er going to beryllium capable to dress up that distance.”

Bernard agrees that a slow younker occupation marketplace tin person a lasting effect connected nan procreation entering today’s occupation market.

While plans from nan national authorities to slow nan gait of impermanent workers and students coming into Canada could thief to easiness title successful nan years ahead, he cautions that it remains to beryllium seen really quickly employers will ramp up their appetites for caller hires erstwhile nan system shows signs of turning a corner.

“It’ll return a while for group to yet drawback up connected their profession ladders,” Bernard says.

Dougherty says it’s frustrating to spot young workers “doing everything right” successful their occupation hunts but coming up short clip aft time.

“Unfortunately, it’s really reliable retired there,” she says. “It’s not you. It’s nan situation.”

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Mike Shekhtman, location head astatine recruitment patient Robert Half successful Vancouver, says location are still immoderate industries and pockets of nan state wherever hiring request persists. He names healthcare and nutrient manufacturing arsenic a fewer sectors wherever younker tin still find occupation prospects.

But he says that pinch nan wide slowdown successful hiring among employers, those businesses who are still expanding their payrolls are being “more careful” astir each hire. That tin lead to longer hiring timelines for workers.

Shekhtman says young workers will person to beryllium “patient” astatine times.

Economic realities mightiness put unit connected young Canadians to return nan first opportunity presented to them, but he says nan “long-term play” is captious excessively successful building a lifelong career.

“A profession tin span complete decades, and it’s important not to consciousness for illustration you’re rushing,” he says.

For students struggling to onshore their first occupation experience, Shekhtman urges them not to eschew time-worn proposal specified arsenic getting much acquisition and training — peculiarly successful soft skills for illustration connection — to pad retired a bladed resume.

When employers aren’t hiring, volunteering tin people a coagulated half-step into nan labour market, he adds. Not only will that build retired acquisition connected a resume, but it tin link young workers to a organization and group up connections that tin lead to full-time work.

Being persistent tin beryllium exhausting successful a slow labour market, Shekhtman concedes, aft applying to dozens of positions and getting nowhere. He encourages workers to walk clip leveraging generative artificial intelligence devices that tin thief put imaginative spins connected resumes and screen letters to prevention clip and make nan occupation exertion process much “efficient.”

Some Canadians whitethorn beryllium “fearful” of AI arsenic thing that tin return their jobs, but Shekhtman recommends young workers thin into nan latest tech arsenic a measurement to hole for question and reply questions. When competing against different younker who haven’t been done nan question and reply process aggregate times complete their career, getting a clearer anticipation of really to abstracted yourself tin only thief to unafraid nan occupation offer, he argues.

“The amended you are successful articulating that piece, nan much you tin guidelines retired and hit connected your competition.”

— pinch files from Global News’s Anne Gaviola