Young Canadians are risking chronic unemployment as nearly one in ten young Canadians are neither working nor enrolled in school, a new study shows.
The CIBC World Market study revealed on Thursday that the youth jobless rate has hit a record high.
" With youth unemployment running at nearly 2.4 times that of Canadians aged 25 and older, one begins to see the growing challenges for younger Canadians to find lasting and meaningful work, " the report said.
“These youth face a harsh job market environment, real entry barriers and likely do not have the skills necessary to compete. This group will likely remain chronically unemployed without action to re-educate or provide themselves with skills training." It also pointed out that young university graduates are struggling to find lasting and meaningful jobs. “The current environment of part-time work, temporary jobs, corporate and government restructuring and downsizing is especially tough on young people whose lack of experience and seniority make them much more vulnerable to labor market changes,” said CIBC Deputy Chief Economist Benjamin Tal. “They are basically on the sidelines doing nothing,” Tal said, adding, “They will not be able to penetrate this very competitive labor market.” According to the study, one in five unemployed youth, aged 15 to 24, has never held a job. Statistics Canada registered the country's overall unemployment rate in May at 7.1 percent.