Canadians under the age of 29 are unemployed and without any post-secondary education or training, which could cost the country billions in the future. (Matt Rourke/AP Photo)
According to a new report by Deloitte commissioned by King's Trust Canada, over 850,000 Canadians under 29 are unemployed and lack post-secondary education or training, posing a potential economic challenge that could cost the country billions in the future.
The report reveals that youth unemployment in Canada hit 14.5% in August, marking its highest level in a decade. King’s Trust CEO Farah Mohamed described the findings as "troubling" during an interview with CTV’s Your Morning on Monday, emphasizing the urgent need to address the issue.
“We need to get young people into the workforce, but we’re not seeing enough progress,” Mohamed said.
Statistics Canada data shows that in October, unemployment among 18- to 24-year-olds was 12.8%, more than double the 5.4% rate for Canadians over 25. Mohamed pointed to several factors contributing to this gap, including fewer job opportunities and rising employer expectations that don’t align with wages being offered.
“Young people are expected to have three years of experience, a graduate degree, and bilingual skills, but employers want to pay them $20 an hour,” Mohamed said. “This approach doesn’t encourage young people to pursue these jobs.”
The report warns that declining youth employment could result in an $18.5 billion loss in GDP and cost the Canadian government over $5 billion in lost revenue. Mohamed also noted that marginalized groups, including racialized youth and those with disabilities, are disproportionately affected.
While the exact causes require further study, Mohamed believes solutions are within reach. She called for government incentives to help businesses hire young people facing barriers and urged companies to rethink their hiring practices, particularly for entry-level roles.
“We need to identify and remove the barriers preventing young people from entering the workforce,” Mohamed said. “It’s crucial to support them in becoming self-reliant.”
