Section 4. Employment
In an aging society it will be more important than ever to ensure full participation of young Canadians in order to promote economic and social development. A declining youth population combined with an aging population means a smaller workforce and possible labour shortages.
There is an increasingly strong correlation between education and employment, and one of the unique characteristics of the youth cohort is their participation in both the labour market and education systems simultaneously. Often, the transition between school and the work is blurred, as many students are also employees. Employment activity of youth, is shown in Figure 4.1.
Figure 4-1: Employment Activity of Youth (15-19 and 20-24), 2003
Source: Statistics Canada, Labour Force Historical Review 2003: 71F0004XCB: cd1T08an
The role of youth in the labour market is going to expand in the near future. It is projected that between 2002 and 2007, almost 1 million new jobs will likely be created1. About 70% of these jobs are expected to require some form of post-secondary education or training. The impending retirement of older workers will account for an additional million job openings over the next five years2. Occupations requiring a higher level of education or training will account for two thirds of job opportunities arising from retirements alone.
4.1 The School-to-Work Transition
The transitional time between school and work is often blurred, as so many youth attend school while working either full- or part-time. A report published in 2000 by Human Resources Development Canada (now HRSD), Profile of Canadian Youth in the Labour Market, highlights the interdependent nature of school and work3.
Much of the focus in Canada's education systems has been on encouraging students to continue on to post-secondary education. Yet, a large number of high school graduates do not go directly to post-secondary education: they go to work. There is evidence that the availability of flexible pathways in high school not only can encourage youth to stay in school, but can also lead to successful transitions into the labour market. However, enrolments in vocational education have declined significantly in Canadian high schools. Various work preparation programs have been initiated, but little is known about the outcomes of such programs. While there is evidence that apprenticeship programs result in favourable labour market outcomes, few youth engage in such programs, possibly because of insufficient promotion of these programs in high school or because youth are aware that there is a risk during economic downturns that employers will layoff apprentices that are part-way through their programs.
Beyond the more standard labour market indicators, there are two relatively new features of youth labour markets - the increased volatility of employment and increased underemployment4.
Part of the uncertainty of employment might be attributed to volatility of earnings for young people. If uncertainty is increasing, young people could move from job to job and from higher-paying to lower-paying jobs, and back. Also young people may move into and out of the labour force, or initially work part-time and then full-time5.
4.2 Labour Force Participation
The participation of youth in the labour force is largely contingent on their participation in the education system. Many youth attempt to juggle both school and work, and thus the labour force participation rate is subject to greater fluctuation for youth than it is for the overall population.
The participation rate had a constant increase from 1976 until its peak of 71% in 1989, followed by a persistent decline in the youth labour force participation rate during the 1990s6. During this time, participation fell to 62% in 1997, when it started to rebound and marginally increase towards 67% in 20037.
Because of the interdependent nature of school and work, the participation rates for young adults can be more volatile than the rest of the population. A decline in the labour force participation rate for youth does not necessarily mean that the conditions in the labour market have deteriorated. It can be due to youth returning to school or extending their time in school. Participation rates that are falling because students are in school to prepare for the labour market is a positive indicator as it is contributing to human capital growth8. However, if youth who are not attending school and are not participating in the labour force account for the decline in participation rate, this becomes a negative indicator.
The participation rate for youth in 2003 has climbed to 67% and the unemployment rate reached 14%. The participation rate was almost the same for men and women, at 68% and 66% respectively9. Of those employed, 54% were full-time employees and 46% were working part-time10. As skilled workers become increasingly in demand, youths are expected to remain in school longer making it unlikely that youth participation rates will rise significantly in the future11.
Figure 4-2: Labour Force Activity for 15 to 24 Age Group, 1986-2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 70F0004XCB: cd1T01an
4.3 Employment and Unemployment
The majority of youth have, at some time, attempted to balance work and school. Employment for youth can have many purposes: it can be to save money to attend further studies at college or university, or it can be to support themselves or a family, or both. Thus, employment trends for both students and non-students must be considered in addition to looking at the overall youth cohort.
4.3.1 Student and Non-student Employment
Of the total Canadian student population, the majority of 15 to 19 year olds were in school (82%). Of those youth in school, 35% were working part-time, while 2% worked full-time12. 56% of students aged 15 to 19 were not in the labour force in 2003. Among those between the ages of 20 to 24 years of age, 39% were attending school, either full- or part-time, with a labour force participation rate of 55%. 39% of students were working part-time, while 12% were working full-time while attending school. 45% of students aged 20 to 24 were not in the labour force in 2003.
For non-student youth, the unemployment rate was much higher for those aged 15 to 19 (20%) than for those aged 20 to 24 (12%). 42% of 15 to 19 year olds not attending school were employed full-time and 22% worked part-time. For those aged 20 to 24, 67% worked full-time while 12% had part-time jobs. Of the entire youth population, 6% of youth aged 15 to 19 and 13% of youth aged 20 to 24 were neither employed nor in school in 200313.
Figure 4-3: Labour Force Activity of Youth 15-24 in Canada, 2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 70F0004XCB: cd1T03mn
4.3.2 Overall Youth Cohort Employment
Labour force activity for youth aged 15 to 24 has increased steadily since 1997, and both cohorts have seen an increase in participation and employment rates14. In 2003, young men composed 52% of the labour force and had a participation rate of 68%. Young women composed the remaining 48% of the labour force and had a participation rate of 66%. The employment rate was 57% for men and 58% of women, and of those employed, 54% were employed full-time.
Still, many youth have part-time employment. 46% of all youth aged 15 to 24 who were employed work part-time, but a much larger proportion of youth workers aged 15 to 19 employed part-time (78%)15. The proportion of youth employed part-time has been relatively stable, with an average of 45% of all youth employed in a part-time position over the last 10 years16. Part-time jobs are often necessary to be able to attend school while working, however, part-time jobs tend to have lower wages and benefits. Few have opportunities to upgrade skills or participate in training activities.
Also, part-time work can be voluntary or involuntary. Typically, youth attending school on a full-time basis voluntarily work part-time, and in 2003, 72% of youth chose part-time work because they were attending school17. Involuntary part-time work can be seen as a measure of underemployment, especially among those who are not attending school and prefer full-time work but are hired as part-time employees. In 2003, 13% of all youth employed part-time had recently or were currently seeking full-time employment18.
4.3.3 Overall Youth Cohort Unemployment
In 2003, 385,100 youth aged 15 to 24 were actively seeking work but were unsuccessful19. The rate of unemployment of this age cohort is much higher than the national average of 8%. The measurement of unemployment for youth has greater volatility due to the number of times a youth may enter or exit the labour force. There is a seasonal nature to youth unemployment, in that students are actively seeking work in the summer months and may not be in the fall or winter months.
The unemployment rate for youth in 2003 was 14%, which is or par with the 10-year average20 (refer to Figure 4.2 above). The age cohort of 15 to 19 had a much higher unemployment rate (18%) than the 20 to 24 cohort (11%)21. The greatest difference seen in employment measures between young men and young women was the unemployment rate, with 16% of young men unemployed and 12% of young women unemployed22.
There is also cause for concern that less educated youth have increasingly restricted access to the labour market. As seen in Figure 4.4, those youth with incomplete high school had the highest level of unemployment because they were lacking critical skills and experience needed to obtain employment. The participation rates for those still in school, either with incomplete high school or incomplete post-secondary had lower participation rates and were more likely to be unemployed due to the difficulties of school-work balance.
4.3.4 Provincial Youth Employment Variations
Youth in Manitoba and Alberta are the most likely to be employed23. In fact, Manitoba had the highest employment rate (63%) of all the provinces in 2003. Alberta was right behind with 62% youth employed. In contrast, Newfoundland had the lowest employment and participation rates in the nation, at 42% and 55% respectively. The national averages for Canada consist of a participation rate of 67%, employment rate of 58% and unemployment rate of 14% for the 15 to 24 cohort.
Figure 4-4: Labour Force Activity and Education Levels for Youth (15-24), 2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1t02an
Figure 4-5: Provincial Labour Force Activity Rates for Ages 15 to 24, 2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T01an
4.3.5 Employment by Sector
The majority of youth work in service-based sectors of the economy. Of those youth that were employed in 2003, 82% worked in service-related industries24. The largest proportion worked in trades (including wholesale and retail) and accommodation and food services. The remainder of youth (18%) worked in goods-producing sectors, and the largest proportion worked within the manufacturing sector. Figure 4.6 and Figure 4.7 show the proportion of youth aged 15 to 24 working in various sectors.
Figure 4-6: Goods-Producing Sector Employment for Youth (15-24) in 2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T05an
Figure 4-7: Services-Producing Sector Employment for Youth (15-24) in 2003
Source: Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T05an
4.4 Youth with Barriers
While the labour market for youth has improved in recent years, certain groups of youth clearly warrant close attention. These groups face different types of barriers that may place serious disadvantages on their full participation in an evolving highly-skilled workforce. Youth with disabilities, Aboriginal youth and immigrant youth are all at-risk when competing in the labour force. For more information on these groups, please refer to the following: for youth with disability, see Section 9.0; for Aboriginal youth, see Section 10; and for immigrant youth, see Section 11.
1 Human Resources Development Canada (now HRSD): Applied Research Branch. Job Futures: World of Work. 2002. Catalogue: RH64-15/2002E.
2 Human Resources Development Canada (now HRSD): Applied Research Branch. Profile of Canadian Youth in the Labour Market: Second annual report to the Forum of Labour Market Ministers. 2000. Catalogue: RH61-1/2000E.
3 Human Resources Development Canada (now HRSD): Applied Research Branch. Profile of Canadian Youth in the Labour Market: Second annual report to the Forum of Labour Market Ministers. 2000. Catalogue: RH61-1/2000E.
4 Human Resources Development Canada (now HRSD). Effectiveness of Employment Programs for Youth. Available: http://www11.hrdc-drhc.gc.ca/pls/edd/EERPY_58003.htm
5 Paragraph reproduced from: Human Resources Development Canada (now HRSD). Effectiveness of Employment Programs for Youth. Available: http://www11.hrdc-drhc.gc.ca/pls/edd/EERPY_58003.htm
6 Statistics Canada. Labour Force Historical Review, 2003, 71F0004XCB: cd1T01an
7 Statistics Canada. Labour Force Historical Review, 2003, 71F0004XCB: cd1T01an
8 Human Resources Development Canada (now HRSD): Applied Research Branch. Profile of Canadian Youth in the Labour Market: Second annual report to the Forum of Labour Market Ministers. 2000. Catalogue: RH61-1/2000E.
9 Statistics Canada, Labour Force Historical Review, 2003: 70F0004XCB: cd1T01an
10 Statistics Canada, Labour Force Historical Review, 2003: 70F0004XCB: cd1T01an
11 Statistics Canada. "Perspectives on income and labour" from Demography and the Labour Market. February 2001: Vol. 2 No. 2.
12 All data sources for this paragraph have been taken from Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T03an
13 All data sources for this paragraph have been taken from Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T03an
14 All sources from this paragraph have been taken from: Statistics Canada. Labour Force Historical Review, 2003, 71F0004XCB: cd1T01an
15 Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1t08an
16 Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1t08an
17 Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1t08an
18 Recently is defined as having looked for full-time work in the past month. Refer to Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1t08an
19 Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T01an
20 Statistics Canada, Labour Force Historical Review, 2003: 70F0004XCB: cd1T01an
21 Statistics Canada. Labour Force Historical Review, 2003: 71F0004XCB: cd1T03an
22 Statistics Canada. Labour Force Historical Review, 2003: 71F0004XCB: cd1T03an
23 All data sources for this paragraph have been taken from Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T01an
24 Sources for this paragraph have been taken from Statistics Canada, Labour Force Historical Review, 2003: 71F0004XCB: cd1T05an
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