New report finds rise in youth unemployment

A new report found that unemployment is rising among young Canadians.

If Maritimers under the age of 25 have been finding it difficult to secure jobs lately, at least one economist says they are not alone.

“Since about 2022, the unemployment rate for youth has really been creeping up and, in particular, teens,” said Kari Norman, one of the economists who worked on a new Desjardins report looking into youth unemployment rates in Canada.

The report said youth unemployment is currently at a level normally seen during a recession, with the jobless rate among people aged 15 to 24 rising from ten per cent in 2022 to 14 per cent midway through this year.

Among the issues cited by the report is the influx of temporary foreign workers following the COVID-19 pandemic.

“When we were so short of labour, that made a lot of sense to bring in new workers to fill those positions,” Norman said. “Now, that’s not the situation that we’re in and we also see the federal government tightening the tap on that.”

The head of the Cape Breton Regional Chamber of Commerce – who at age 24, counts herself among the youth workforce – said more could be done to help young people bridge the gap between education and work.

“A lot of the times it’s part-time while they’re in school and things like that, and those are usually the first things that businesses are looking to cut back on when things become a bit too expensive,” said Megan Penney from her office in Sydney, N.S.

“So, taking advantage of things like co-op programs and work terms and the Canada Summer Jobs and really getting the youth prepared to be in those positions.”

At the Sydney & Louisbourg Railway Museum in Louisbourg, N.S., Sarah Doue typically spends tourist season supervising a number of youth hired through Canada Summer Jobs.

“Having worked with some youths this summer, I kind of got to see both sides of the spectrum,” she said.

Doue added, from her experience, the employees’ willingness to work could at times be hit-or-miss.

“I do think it’s hard to find people to fill jobs too, and some of that goes back to work ethic as well,” she said.

The economists behind the Desjardins report added that among the positives are recent increases to minimum wage, but even that comes with caveats.

“Unfortunately, rent inflation and food inflation, which are two major expenses for youth, have outpaced the level of general CPI inflation,” Norman said.

Among teens – the hardest-hit group – the report adds nearly one in five reported wanting to work, but being unable to find any jobs.

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