The job market for youth has only gotten worse — and it may impact their future.This is according to the Fraser Institute's Ben Eisen, who says "For young Canadians who can’t find summer jobs, there could also be negative lifelong effects."According to a paper published by the institute referencing studies conducted over decades, young people's participation in the workforce increases employment prospects and wages further into adulthood.Eisen warns, "Young Canadians missing out on work can experience 'prolonged scarring effects' that can hurt their 'human capital and future development.'''.Simply put "the less work experience you have in your younger working years, the less prepared you may be for a career and future job opportunities," says Eisen. The Institute's paper also cites the negative employment effects for youth following the 2008-2009 recession which had "prolonged scarring effects" according to the same decades-long studies. Stats Canada reports a 14.2% youth unemployment rate (aged 15-24), compared to 13.5% in June 2024. In 2017-2019, June youth unemployment numbers averaged 10.9%. .As for what is causing the increase — Eisen says many experts have pointed to temporary foreign workers competing with youth for entry-level jobs.Eisen also notes the minimum wage increases from provinces in the past decade could be worth paying attention to, since they have been found to reduce youth employment due to the higher costs associated with a higher minimum wage.He says policymakers should pay more attention to policies like these — that make it harder for youth to find jobs and gain opportunities for their future.
