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Youth

Youth Unemployment in Canada: A Grim Picture with a Proposed Solution

Strategic Insights

— 2 min read

The employment landscape for young workers in Canada looks bleak, with the unemployment rate for 15 to 24-year-olds standing at 14.4 percent in September, more than twice the total workforce jobless rate. As of September, almost 436,000 young people are looking for work, with an average hourly pay of about $22 if they find employment. A potential solution to address this issue could be by reducing the "low-wage stream" of Temporary Foreign Workers (TFWs) and opening those jobs to young Canadians.

Key Takeaways:

  • The unemployment rate for 15 to 24-year-olds in Canada was 14.4 percent in September, more than twice the total workforce jobless rate.
  • Approximately 436,000 young people are looking for work in Canada, with an average hourly pay of about $22 if they find employment.
  • Curtailing the Temporary Foreign Worker program's "low-wage stream" could create new job opportunities for young Canadians.
  • This move would provide young workers with a 14 percent increase over the current average hourly wage for young workers in Canada, equivalent to a $3 an hour bump.
  • The TFW program has been criticized by the United Nations and has faced growing abuses, with 10 percent of employer compliance inspections failing in the 2024-25 fiscal year.
  • Employment and Social Development Canada has reported fines doubling and the number of employers banned from the program tripling in the 2024-25 fiscal year.
  • Youth unemployment in Canada has reached a 15-year high, excluding the pandemic period, with high levels of unemployment interfering with family formation and boosting poverty rates.
  • A median after-tax income of more than $37,000 is necessary to escape low-income status in Canada, according to Statistics Canada.
  • Working 30 hours a week, 52 weeks a year, at a mid-point hourly wage of about $24 would be sufficient to escape low-income status.

Statistics:

  • 14.4 percent: The unemployment rate for 15 to 24-year-olds in Canada in September.
  • 436,000: The number of young people looking for work in Canada as of September.
  • $22: The average hourly pay for young workers in Canada if they find employment.
  • 350,000: The number of Temporary Foreign Workers (TFWs) employed in Canada now.
  • $26.40 and $23.17: The estimated hourly wages for TFWs in agriculture and the allied food and beverage industry, respectively.
  • $25: The average hourly wage for TFWs making more than the industry median.
  • $4.7 billion: The estimated annual wage for TFWs in agriculture and the allied food and beverage industry.
  • 14 percent: The potential increase in average hourly wage for young workers in Canada if the TFW program's "low-wage stream" is reduced.
  • $3: The potential increase in hourly wage for young workers in Canada.
  • 10 percent: The percentage of employer compliance inspections that failed in the 2024-25 fiscal year.
  • $2,067,750 and $4,882,500: The fines for employers before and after the 2024-25 fiscal year, respectively.
  • Tripled: The number of employers banned from the TFW program in the 2024-25 fiscal year compared to the previous year.

Sources:

  • Statistics Canada
  • United Nations
  • Employment and Social Development Canada
  • "Low-wage stream" of Temporary Foreign Workers (TFWs)
  • Labour Force Survey in Canada
  • Contemporary social policy research
  • 2023 Statistics Canada report on after-tax income and low-income status

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