Young people in Canada have long faced a tougher slog in the job market than adults, but the gap between youth and adult unemployment has now reached the widest gap in 35 years, a new Statistics Canada report shows.
The youth unemployment rate in 2012 was 2.4 times that of adults — marking the biggest gap since 1977, the report released Tuesday suggested.
“Part of what you’re seeing is a slow recovery from the last recession,” said Jim MacGee, associate professor of economics at the University of Western Ontario. “It really hits the creation of new jobs. And the groups that are going to be impacted the most by those types of events are always those people who are new to the labour market, and that’s going to be disproportionately younger workers.”
Part of what you’re seeing is a slow recovery from the last recession
Another contributor to the widening gap between youth and adult unemployment rates is more younger people opting out of the workforce in their early 20s to pursue higher education than they did 30 years ago, he said. Meanwhile, Mr. MacGee said, young people today who choose to enter the workforce without formal training face more job hurdles than their predecessors.
“The set of people who choose not to go on to education … on average are going to have a much harder time in the labour force,” he said.
André Bernard, of Statistics Canada’s analytical studies branch, said Generation “Y” workers — those between the ages of 15 and 24 — are twice as likely than adults to be laid off.
Chosen excerpts by Job Market Monitor
The Stat Can’s paper @ Job Market Monitor
In 2012, the unemployment rate of youths aged 15 to 24 was 14.3%, compared with a rate of 6.0% for core-age adults aged 25 to 54. A significant gap between the unemployment rates of youths and adults have been observed every year since 1977. Most of the gap between the unemployment rates of youths and adults is the result of higher unemployment inflows among youths. In 2012, 2.6% … Continue reading »