2012 continues to shape as a brutal year for young Canadians as the labour market continued to deteriorate for the fifth straight month with no relief in sight. Youth unemployment across the country remains at troubling levels amid regressive government actions (zero action on the housing bubble, austerity initiatives, and an uneven monetary policy) that will only serve to worsen the jobs crisis and push the economy towards the precipice of a recession.
Earlier this morning Statistics Canada released their monthly labour market report. The news isn't good for youth. The 15 to 24, 25 to 29, and 30 to 34 cohorts either saw very marginal increases or declines which points to a serious ongoing policy issue that is being ignored at present and publicly unacknowledged. Simply put, young people are experiencing economic scarring in the wake of the recession and little is being done to address the problem.
The Statscan report stated "Employment among youths aged 15 to 24 fell for the fifth consecutive month, down 27,000 in February, and their unemployment rate was 14.7%. Compared with February 2011, youth employment was down 69,000 (-2.8%). With fewer youths participating in the labour market, their participation rate in February was 63.3%, down from the most recent peak of 68.1% in September 2008."
Beneath the numbers a bunch of interesting trends are emerging. First, the labour market participation rate is falling for the 20 to 24, 25 to 29, and 30 to 34 age cohorts - this is driving the reduction in the unemployment rate as discouraged job seekers stop looking for employment. Second, the unemployment rate for youth aged 15 to 24 has edged up to 14.8%, which continues the five month deterioration in the youth labour market. Third, at best the labour market can described as stagnating for young Canadian between the ages of 15 to 34, clearly there has been no recovery and for most youth the economy remains in recession; furthermore, there's nothing on the horizon that would suggest any near term improvement.
Another ominous trend that presents a major obstacle for a recovery in the youth labour market are the job gains in the 55+ demographic. Job stealing boomers (kidding) who had their retirement savings gutted in the wake of the financial meltdown are making incredible gains in the labour market in sectors traditionally dominated by youth. This is a demographic flip and a trend that is also being seen in the United States and presents a massive barrier for any sort of recovery that minimizes the long-term economic scarring of youth people. The question in my mind is starting not to be whether there's going to be a lost generation, but how the impact from socio-economic damage to the new generation of young workers can be reduced through ameliorative public policy.
For some additional reading and perspective on the current problems facing youth in the labour market, see the new TD Economics report called "The Plight of Younger Workers"; also, check out my previous analysis from earlier in the year where I cover the deterioration of the youth labour market, see: here and here.
The Statscan report stated "Employment among youths aged 15 to 24 fell for the fifth consecutive month, down 27,000 in February, and their unemployment rate was 14.7%. Compared with February 2011, youth employment was down 69,000 (-2.8%). With fewer youths participating in the labour market, their participation rate in February was 63.3%, down from the most recent peak of 68.1% in September 2008."
Beneath the numbers a bunch of interesting trends are emerging. First, the labour market participation rate is falling for the 20 to 24, 25 to 29, and 30 to 34 age cohorts - this is driving the reduction in the unemployment rate as discouraged job seekers stop looking for employment. Second, the unemployment rate for youth aged 15 to 24 has edged up to 14.8%, which continues the five month deterioration in the youth labour market. Third, at best the labour market can described as stagnating for young Canadian between the ages of 15 to 34, clearly there has been no recovery and for most youth the economy remains in recession; furthermore, there's nothing on the horizon that would suggest any near term improvement.
Another ominous trend that presents a major obstacle for a recovery in the youth labour market are the job gains in the 55+ demographic. Job stealing boomers (kidding) who had their retirement savings gutted in the wake of the financial meltdown are making incredible gains in the labour market in sectors traditionally dominated by youth. This is a demographic flip and a trend that is also being seen in the United States and presents a massive barrier for any sort of recovery that minimizes the long-term economic scarring of youth people. The question in my mind is starting not to be whether there's going to be a lost generation, but how the impact from socio-economic damage to the new generation of young workers can be reduced through ameliorative public policy.
For some additional reading and perspective on the current problems facing youth in the labour market, see the new TD Economics report called "The Plight of Younger Workers"; also, check out my previous analysis from earlier in the year where I cover the deterioration of the youth labour market, see: here and here.
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