“Real” Youth Unemployment Rate Close to 20%
Statistics Canada’s “real” (R8 supplementary) unemployment rate adds to unemployed persons some labour force dropouts (discouraged job seekers who have given up looking for a job in the belief that no work is available) and theÂ hours of work lost by part-time workers who would rather have worked full-time.
In 2011, the “real” rate averaged 10.6%, up significantly from the pre recession low of 8.6% in 2007.
The increase in the “real” rate for workers aged 25 to 54 has been fairly modest, up 1.6 percentage points from 7.2% to 8.8% compared to 2007.
But the increase in the “real “rate for young workers compared to 2007 has been stunning: up 4.3 percentage points from 15.4% to 19.7% (from 16.2% to 21.0% for young men, and from 14.4% to 18.2% for young women.) The “real” youth rate has slipped only a touch from the high ofÂ 20.3% in 2009.
So, to state the blindingly obvious, we are very, very far from a meaningful recovery for young workers.
The youth are like those on fixed incomes are adversely effected by any increase in inflation that is not met by an increase in wages, for the youth lucky enough to retain employment. The unemployed youth do not have assets built up, no stocks, no bonds. The youth if this was a traditional bout of deflation, would not have higher prices crippling them, even if they get a job wages have not met price increases causing the amount of time to increase to purchase goods & services. Ignore Inflation at the youre own peril.