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5.1 Introduction

This subsection of the overview addresses program outcomes and provides an indication of program incrementality. The time frame between when the participants had completed their internships and when the evaluation was conducted was relatively short (about 6 months). As a consequence, the formative evaluation focused upon issues associated with satisfaction, current employment status and future prospects. Findings are presented for YIC and Internships in Science and Technology. A profile of Student Business Loans is provided at the end of this section to illustrate the characteristics of businesses developed under this youth initiative.

5.2 Youth Internship Canada

5.2.1 Impacts⁶

The survey of YIC participants indicates that 50% of interns who have completed their YIC project are still working for the YIC employer. Those in the private sector are the most likely to be working with their YIC employer (69%) and a very high percentage (70%) of those whose internships were with the public sector are working part time with another employer. Exhibit 5.1 provides the details.

Source: HRDC Survey of YIC Participants, 1998
All other responses were less than 1%

Only 13% of the interns left their projects prior to completion. The most common reason for early termination (18% of early terminations) was to return to school.

Of the 259 respondents still with their YIC employer, 119 are in ongoing YIC projects and 140 have finished their YIC project but have been kept on by the YIC employer. The 259 respondents who are still with their YIC employer were asked a series of questions about their future expectations regarding their employment. 62% expected to be kept on indefinitely by their YIC employer. The 38% who do not expect to be with their YIC employer indefinitely were asked whether they expected to be able to find a job within six months of finishing with their YIC employer. Exhibit 5.2 summarizes these results.

Of the 69 YIC participants who expect to find a job within six months, 97% expect that the job will pay an acceptable wage and 70% expect that they will be able to find the job within the community where they currently live.

Several questions were asked in the survey of YIC participants on how their experience in the YIC program had influenced their plans and prospects for the future. The vast majority of participants felt the program had allowed them to gain experience that will help them to obtain the kind of job they want. Another large fraction of respondents reported that their participation in the program has helped them in making choices about education (67%) and careers (75%). Few felt it led them to change their minds in regard to their desired work (25%) and expectations of finding that kind of job (25%). The percentage of respondents who rated these questions either 4 or 5 on a five-point scale (1=strongly disagree, 5=strongly agree) is reflected in Exhibit 5.3.

Source: HRDC Survey of YIC Participants, 1998
* = the number of respondents
¹ either agree or strongly agree

Respondents were asked what they thought they would be doing now if they had not received the job under YIC. The responses, indicating most (58%) expected they would be working, are shown in Exhibit 5.4.

Over 90% of respondents were optimistic about being able to do the type of work they would like to do two or three years from now, with no variation in this level among responses when considered by region, gender or education level of participant.

When respondents were asked what would be the greatest challenges they would face in being able to do the type of work they would like to do in two to three years, the most commonly identified challenges were limited job opportunities (25%) and the need to acquire special skills (23%). Almost a quarter of respondents (22%) reported that they would not face any challenges.

Sixty-seven percent of participants were provided with training as part of their internship. On the job training, mentoring or coaching — the most common type — was received by 63% of those who said they were trained. There are regional differences in whether or not training was received. Participants in Quebec were the least likely to receive training (43% did not receive training). Sixty-eight percent in Western Canada received training, 75% in Atlantic Canada, and 78% in Ontario.

Ninety-four percent of those who received training thought it was sufficient to allow them to do their jobs on the YIC project well. Only 25% of those who did not receive training thought they should have.

Given the formative nature of the survey, satisfaction with the program is important as an indication of the appropriateness of program design and delivery. The views of YIC participants regarding satisfaction with the program are reflected in Exhibit 5.6.

Source: HRDC Survey of YIC Participants, 1998
* = the number of respondents
¹ Satisfaction is defined as giving a 4 or 5 on the 1 (very poor) to 5 (very good) scale.

In general, the satisfaction ratings of different aspects of the program are quite high, with the exception of salary. Only 43% of participants were satisfied with the salary they received.⁷ The most satisfaction existed with the opportunities to learn provided by the internship, with 81% indicating satisfaction.

The large majority of both employers and sponsors felt the work done by the intern was useful to the employer. Exhibit 5.7 sets out the responses. (Note that only 60 of the 92 sponsors gave an opinion on this question. For the others the question was not relevant, given their role in the program, which is to provide training only).

Almost all respondents felt the experience would improve the intern’s chance of finding a full time job (97% of sponsors and 95% of employers). The most frequent reasons given were the on-the-job experience, formal training and career-related experience.

As indicated in Exhibits 5.8 and 5.9, considerably fewer employers from the Atlantic provinces (26% versus 39% for all provinces) and from non-profit organizations (19% versus 39% for all employers) said they would have hired someone to do the work without financial support.

The reasons given on why the financial assistance was important were fairly consistent among sponsors and employers. Employers in the Atlantic provinces and Ontario cited financial reasons more than those in Quebec and the Western provinces. The lower level of experience was not as important to the Atlantic employers.

Employers were asked how they would have had the work done without the intern. The majority of employers (61%) would have assigned the work to existing staff.

Source: HRDC Survey of Employers and Sponsors, 1998
Note: All other responses were given by less than 3% of respondents.

5.2.2 Incrementality

Survey results with employers show that 39% of employers said they would have hired someone anyway, 27% would have paid the same wage and 25% would have hired the same person. Only 3% of employers would have hired someone with the necessary skills and experience, as detailed in Exhibit 5.11.

Source: HRDC Survey of Employers and Sponsors, 1998
Note: All other responses were only given by one respondent.

In terms of satisfaction with the internship programs, the majority of both employers and sponsors rated questions on the program delivery as either four or five on a five-point satisfaction scale (1=very dissatisfied, 5=very satisfied), with a couple of exceptions. Exhibit 5.12 sets out the responses.

Source: HRDC Survey of Employers and Sponsors, 1998
* = the number of respondents
¹ Respondents who rated an item a 4 or 5 on the 1 (very dissatisfied) to 5 (very satisfied) scale are considered to be satisfied.

Sponsors of internship projects were slightly less satisfied with the initial information and the ease and timeliness of the approval process. Sponsored projects are usually more complex in design than those of employers, and in most cases involved considerably more funds. It is likely that these took longer to make it through the approval process. All projects (sponsor and employer) had to be reviewed at the local, regional and national levels of HRDC until about a year ago, when authority to approve contracts up to $150,000 in value was decentralized to regions. It is likely that many of those surveyed had gone through this centralized approval process.

The vast majority of respondents said they would be interested in participating again (97% of sponsors and 91% of employers).

Site Visits to YIC projects

The site visits revealed that most YIC projects assisted youth in obtaining employment, upgrading employment and/or becoming self-employed. For instance, in one project, 22 of its 23 graduates were able to find employment beyond the required job placement. One year following their graduation, 16 of the 23 participants continued to be employed in the industry.

Most site visit interviewees noted that YIC provided participants with improved earnings potential and increased levels of employability. For instance, in one case, the sponsoring agency reported that program participants were all very positive about the internship and felt that the program had been beneficial to them. Furthermore, according to the sponsor representative, one of the project’s participants reported that were it not for this YIC program, she would still be receiving income support.

YIC appears to have succeeded in establishing links between employers and youth. In most cases, the links with employers were attributed to the job placements and on-the-job orientation components of the program.

In summary, survey results show that the YIC helped participants gain experience and 50% of those who have completed their projects are still working for the same employer. An additional 17% are working full time for another employer. Participants, sponsors and employers are very satisfied with the YIC support. However, 39% of employers reported that they would have hired someone for the intern’s position without YIC. Furthermore, a quarter of all employers (25%) indicated that they would have hired the same individual as they did under the program without the financial assistance it provided.

5.3 Science and Technology Internship Program

Although many sector councils reported that positions are being developed specifically for youth interns, key informants from two of the sector councils stated that many of the youth hired as interns would have been hired with or without the program. As a result, in some instances, it appears that the program had limited value added. Given the demand for science and technology graduates in certain sectors, it appears that in some cases, not only would the position have already existed, the same person hired under the program would have been hired to fill it. It should be noted that this is not the situation in all sectors interviewed.

The interviews with some 43 participants revealed that the majority of interns reported having a university degree (38), with a large fraction having attended school at some point in the last year (28). Eleven of the interns stated that they had received income support or student loans in the six months previous to starting their internship. They identified the income support as primarily being EI. Nine interns reported that they had been unemployed and looking for work at some point in the six months prior to being hired as an intern. Twenty-five interns reported that they had held at least one paying job between when they last attended school and when they started the internship.

Slightly more than half of the participants interview in Internships in Science and Technology (24) indicated that if they were not currently in the internship program, then they would most likely be employed. Five interns predicted that they would currently be unemployed and looking for work if they were not working as an intern.

Overall, participants reported a high level of satisfaction with program. The majority responded that the internship provided them with good opportunities to learn (41 interns), and provided the experience they felt they needed (42), and many indicated they hoped to be doing the same type of work two to three years from now (27). Other employment-related needs they identified as being fulfilled by the program were career planning and helping to establish links with other employers in the sector. Slightly more than half of interns (24) interviewed predicted that they would continue to work for the same employer after the project was completed.

Participants’ expectations and challenges

The majority of interns (27) reported that they anticipate doing the same type of work three years from now that they are currently doing in their internship. Other interns anticipated participating in the following activities:

• managerial tasks (4);
• returning to school (4);
• working in the film industry (3);
• designing textiles (1);
• working in research and development (1); and,
• doing more in the area of sales (1).

Most interns (38) report being somewhat to very optimistic about the prediction of what they would be doing two-to-three years from now. The greatest challenges they see facing them are limited job opportunities (16), the need to acquire special skills (6), and their limited relevant experience (4).

The participants reported a high level of satisfaction with the Internships in Science and Technology Program, stating that the internship provided them with experience and an opportunity to learn. Out of nine sector councils, two indicated that many of their interns would have been hired without the program. On the interns’ side, slightly more than half of participants (24 of 43) interviewed stated they would have a job without the program (not necessarily with the same employer).

5.4 Youth International Program

Interviews with interns in the four case studies of Youth International projects indicated that, overall, the youth participants were satisfied with their internships. Most interns interviewed reported that they were gaining work experience, and would recommend the program to other youth. The one area with which interns reported lower levels of satisfaction was the allowance and wages provided to them by the various projects. All four projects studied were underway at the time of the evaluation and no participants had completed their internship at that point. The employers reported that in many instances, if the interns continued to perform in the same satisfactory manner throughout the remainder of their internships, they would most likely offer the interns positions with their businesses upon completion of their internships.

5.5 Student Business Loans Program⁸

As part of the formative evaluation, the administrative data pertaining to the Student Business Loans Program was reviewed. Results on 1172 participants participating in the program during the fiscal year 1997–1998 were analyzed. This program, administered through the Business Development Bank of Canada, provides interest-free loans of up to $3,000 for students to start their own summer business. Business counseling, seminars and workshops on how to start a business are also provided.

Basic Characteristics of Participants

A detailed profile of participants of the Student Business Loan Program is presented in Appendix B. This information shows that:

• Men (71%) are more likely to have participated in the program than women (29%).
• Students as young as 14 participated in the program, with most of the students being between 16 and 24. The median age of participants was 18.
• Students were about equally likely to be in high school or university. Nineteen percent of students were in college when they received funding.
• Saskatchewan and Alberta have the highest percentages of participants.
• 84% of participants received maximum funding ($3000).
• Half of the students received case counselling as part of their involvement in the program and 8% went to a seminar. (4% of all participants both received case counselling and went to a seminar.)

It is interesting to note that, while in most cases funding was given to individual applicants, in 5% of cases funding was given to a group of applicants to help them start a single business. In these cases, instead of applying individually, groups of students applied to the program and were in all other respects treated the same as individuals applying for the program.

Types of Businesses Started under the Student Business Loan Programs

Both the Standard Industrial Classification of the businesses started and the number of employees are included in the Student Business Loan data set. This information shows that in Manitoba and Saskatchewan, the majority of businesses started are in the agricultural industries. Alberta also has a high proportion of businesses started in the agricultural industries and in service industries incidental to agriculture.

Provinces other than Manitoba, Saskatchewan and Alberta have a greater mix in the type of industries in which businesses were started. In Newfoundland there is a wide range, with the highest concentration, 20%, being in the food service industry. Most of the businesses are in the "other" category. Similarly, Quebec has a high percentage of businesses in the "other" category (45%), and another important cluster in the trade contracting industries (34%). In British Columbia, 24% of businesses started are in the trade contracting industries, 18% are in the business service industries and 37% in "other."

The following relationships exist with type of business started:

• 71% of those in high school have businesses in agricultural industries and another 5% in service industries incidental to agriculture. This compares with 43% of college students and 27% of university students.

• Not surprisingly, therefore, younger students are by far the most likely to start a business in the agricultural industries, with 80% of all 14-to-15 year olds starting their business in this area, decreasing to 9% of those 30 or older. Those 20 and older are much more likely to start a business in the trade contracting industries.

• CEGEP and university students are the most likely to have businesses in the trade contracting industries. (35% and 28% respectively).

Those who started businesses in services to buildings and dwellings are the least likely to have received maximum funding, with 58% receiving $3000 compared with 84% of all participants. Ninety-five percent of those in the agricultural industries and 100% of those in service industries incidental to agriculture received $3000.

Men are almost four times more likely than women to have gone into trade contracting industries whereas women are one-and-a-half times more likely to have started a business in agricultural industries. Despite this, because more men than women received funding through the program, more men set up agricultural businesses through the program than women.⁹

Footnotes

6	Some sub-groups results in this section are based on small number of observations. Statistical reliability is weaker in these cases for inference about results.
7	Satisfaction is defined as rating the item a 4 or 5 on the 1 to 5 scale where 1="very poor" and 5="very good."
8	This program is only offered in provinces where there are no provincial program equivalent to the federal initiative.
9	202 women set up businesses in the agricultural industries compares with 333 men. More men set up businesses in all categories than women.