Canada’s Younger Generation Facing Job Crisis

A sobering new report from Desjardins Economics reveals that the surge in gig work, the rapid advancement of artificial intelligence, and skyrocketing population growth are wreaking havoc on job prospects for Canada's youngest workers.

Unemployment Rates Reach Alarming Heights

As Conservative Leader Pierre Poilievre draws attention to an unprecedented youth unemployment rate of 14.6% in July—its highest point outside the COVID-19 pandemic—the findings are more dire for younger teens. StatCan reported a staggering 31.4% unemployment rate for returning students aged 15 and 16, which coincides with the peak of the summer job market.

'Generation Screwed': Young Canadians Speak Out

Commenting on this distressing trend, Poilievre has dubbed today’s youth as the ‘generation screwed’ due to their dwindling job opportunities. He attributes this crisis to Ottawa's temporary foreign worker program, arguing it compounds the competition faced by young Canadians.

The Government's Response: A Balancing Act

While Prime Minister Mark Carney has committed to reducing immigration, he stopped short of scrapping the temporary foreign worker initiative, citing provincial backing. Discussions are underway on adjusting Canada’s immigration strategy to align with current economic realities.

The Ripple Effects of the Pandemic

Desjardins economists trace the origins of today’s job market struggles back to the post-pandemic recovery phase, during which businesses, desperate for labor, welcomed an influx of foreign workers while relaxing rules for international students.

Who’s Affected the Most?

The report highlights a stark disparity: young international students and children of recent immigrants face more significant challenges in securing jobs compared to their Canadian-born counterparts.

Tackling Population Growth and Job Opportunities

With plans to curb population growth and limit the flow of non-permanent residents, Desjardins’ economists argue this could restore equilibrium in the youth job market. They claim that easing immigration could help local youth secure the available opportunities.

The Gig Economy: A Double-Edged Sword

The rise of the gig economy presents unique hurdles for young job seekers. Age restrictions on various platforms often exclude those under 18, leaving many aspiring entrepreneurs—such as teenagers wanting to offer dog walking services—out in the cold.

AI: The New Employment Gatekeeper?

The emergence of artificial intelligence technology adds another layer of complexity. A recent study from Stanford University found that while most core-working-age adults have stabilized their employment, young workers are increasingly losing entry-level positions—historically vital stepping stones.

What Lies Ahead for Youth Employment?

As Canada navigates challenges such as U.S. tariffs and fluctuating trade relations, indications show employers are becoming more cautious with hiring. Youth typically bear the brunt of economic downturns, making the urgency for solutions more pressing.

The Fight for Future Opportunities

Norman warns that if young talents can’t gain work experience during their formative years, they may be compelled to finance their education solely through debt, threatening their long-term financial well-being. There's a clarion call for a unified strategy among governments to facilitate the transition from education to gainful employment.

A Critical Juncture for Canada's Future Labor Force

As Valencia aptly states, this generation represents the future of Canada’s labor force. If they're impeded by a lack of job opportunities and career development pathways, the long-term economic ramifications could be devastating.