Youth Unemployment Reaches Crisis Levels

Youth unemployment in Canada is soaring to staggering heights, reminiscent of recessionary times. Andrew Grantham, a senior economist at CIBC, recently pointed out on CTV Your Morning that young people, particularly those aged 15-24, are facing an unemployment rate of 14.6% as of July—almost the highest level seen outside the pandemic in nearly 15 years.

The Role of Technology in Job Loss

Grantham's recent report reveals that employment opportunities for those aged 18-24 have been diminishing since 2022, with factors such as artificial intelligence (AI) and an oversaturated job market contributing to the problem. He highlighted the rise of self-checkout machines and automation as technologies that are significantly reducing the number of temporary and entry-level jobs typically occupied by young workers.

Is AI Benefiting Industries While Hurting Youth?

While AI may boost productivity and create job growth in some sectors, Grantham warns that workers under 25 are more likely to find themselves in roles at higher risk due to technological advancements. This demographic is often left scrambling for jobs that are being automated, leaving them with fewer options for summer or transitional work.

Employer Preferences Shifting Towards Stability

Another factor aggravating the youth unemployment crisis is the evolving preferences of employers. Many are now favoring candidates who can commit to permanent positions over students seeking seasonal roles. "If you're an employer, it's understandable to prefer a candidate who is looking for long-term employment," Grantham noted, signaling a shift that further marginalizes young workers.

A Global Issue: Youth Unemployment Beyond Canada

This troubling trend isn’t confined to Canada; the U.S. is also grappling with youth unemployment rates of around 10%. Even in countries with robust job markets, like parts of Europe and the U.S., rising student numbers and challenges related to transient workers indicate that underlying issues are at play. Grantham’s insights suggest a broader, more complex landscape that demands urgent attention and innovative solutions.