Who’s a bigger drag on Canada’s future? The old or the young?
This is my latest column for Canadian Business magazine.Â
Giorgio, a hard-working, smart-as-a-whip University of Toronto student, asked me a great question after a recent guest lecture: What if the biggest challenge facing Canadian businesses and governments in the coming years isnâ€™t an aging society but the economic and fiscal drag of hundreds of thousands of young people who canâ€™t find meaningful work?
Like many young adults, Giorgio and his friends plunged into graduate school at the recessionâ€™s start to duck unemployment, up-skilling to boost their chances of cracking a market littered with experienced boomers. Lucky Giorgio got a job in construction for the coming summer. It â€™s not h is intended career, but it will help pay off student debts. His friends are not so fortunate. Most are doing unpaid internships to enhance resumÃ©s while relying on barista and other minimum-wage work to keep on keeping on. None of them see anything but short-term jobs, at best, in their future.
The odds of developing a career and a full-fledged adult life are getting longer for this crowd. Three years ago, the global economic crisis triggered the worst nine-month spate of job-shedding in Canada since the Great Depression. And while overall numbers have rebounded, young people are locked out of the recovery.
Canadians under 25 lost just over half of all the jobs that evaporated between October 2008 and July 2009. Since then, the head count of job holders has surpassed the pre-recession level by 1%â€”but not among young people. There are 25,000 fewer of them working paid jobs today than in July 2009.
They havenâ€™t given up. At last count, 414,000 young adults were looking for work. And, in truth, there is always more unemployment among youth than in the rest of the labour force. Theyâ€™re still figuring out how to sell themselves to prospective employers, and are likelier than others to leave a job in search of a better one. But at 14.7%, the unemployment rate for those under 25 is now double the national rateâ€”a first since StatsCan began annually tracking the data in 1976.
Ironically, this growth in unemployment stems largely from the type of jobs that have been created since the downturn: four out of five are temporary. The vast majority of the new permanent jobs, meanwhile, have gone to workers aged 55 and older, partly because employers get more immediate value out of staff with experience.
So what did the kids do? They went back to school. About 150,000 people under 25 left the labour market between the fall of 2008 and 2009â€”a time during which post-secondary institutions registered almost as many new students, the single biggest increase in enrolment (save for Ontarioâ€™s double-cohort year).
Young people are trying every trick in the book, but talking with Giorgio and others reveals a quiet anxiety. Itâ€™s echoed in a recent Ekos poll, which found that among those younger than 42â€”the median age of Canadaâ€™s populationâ€”59% believe the quality of life for the next generation will be worse than that enjoyed by todayâ€™s. Some are calling it the end of progress.
This erosion of confidence is neither inevitable nor necessarily self-fulfilling. In 25 years, the boomers who want to work or have to work will have vacated the job market, and Giorgioâ€™s age group may see their survival instincts and sheer ingenuity rewarded with previously denied prosperity.
But any smart business can see whatâ€™s around the corner. Today, the world is chasing capital, trying to get investors to put money into their idea, their community. Tomorrow, the global hunt will be for labour. Emerging and developed economies alike are facing aging workforces and shrinking pools of skilled and unskilled labour. Attracting youth and cultivating new talent now could put your company ahead in the upcoming competition for people. Thatâ€™s how you ensure your markets and profits grow, not shrink. But i f we wait too long to invest in giving the next generation a fair try, instead of a grey tsunami we may be facing the revenge of the temps.
It does suggest to me that delaying people’s retirement is a tad bit beside the point . . . unless it’s important to you to maintain a large reserve army of the unemployed and impoverished, so the working folks never start thinking they’ve got the leverage to push for better pay.
We need a Youth Employment strategy …thus is the future of our country…
The Youth face a dangerous cost of living while they cannot find jobs. It the end of progress because the youth were expecting prices to stay low, affordable till the economy was “over-heating” from improving job/wages.
Its hard to imagine that when the velocity of money strengthens it will not cripple the youth further because being lucky to have job only to work longer for goods and services then any Boomer, or my parents.
My parents went to college on a summer job, their parents bought a house for 7000$, an automobile for 100$, and gas was 18 cents a gallon, clothed fed educated 7 children
Adusting wages for inflation, in real terms my gradfather earned a great in with less of an education without any student debt to pay off, with prices that made sense. Contrast his experience with 20 year olds generation who grew up on society reminiscent of the past glory. Easy to understand our plight if you live it
Its fuuny to note, deflation or inflation are not tagged when it effects economic growth, economic risk, employment, labour adjustment, population aging, skill shortages, temporary workers, Uncategorized, unemployment, young workers.
The cost of living will ensure NDP their win in the election, where any failure with prices and wages will lead to their defeat, and rise of another.
Whoever gets a cost of living with rising standards of living Wins the heart & minds of Canadians, young an old.