Getting Started

Youth (15 to 24 years of age) Unemployment Rate

Significance

• The youth unemployment rate encompasses high school and post-secondary graduates seeking to enter the working world.

• According to the OECD, youth unemployment must be paid attention to because of its negative implications for young graduates’ future careers called “scarring effects”. “Scarring effects” are the competitive disadvantage that young graduates acquire as a result of having a large period of time between graduation and employment.

Core Indicator

• Youth unemployment rate indicates the degree of opportunity offered by the labour market for those just starting their careers.

• The youth unemployment rate in Canada was 14.2% in 2011, a 0.6% drop from 14.8% in 2010 and a 1.0% drop from 15.2% in 2009 (see following

chart).

Unemployment Rates for Youth in Canada, 1976 - 2011

Source: Statistics Canada, CANSIM Table 282-0002 (LFS).1976

19771978

19791980

19811982

19831984

19851986

19871988

19891990

19911992

19931994

19951996

19971998

19992000

20012002

20032004

20052006

20072008

20092010

20110.0

5.0

10.0

15.0

20.0

Canada’s Major CMAs

• London had the highest youth unemployment rate among Canada’s major CMAs in 2011, at 20.5% (see following chart).

• The next highest were Kingston (17.4%) and St. John’s (16.6%).

• Edmonton had the lowest rate at 9.2%, followed by Québec City at 9.5%, and Victoria at 10.9%.

Unemployment Rate for Youth in Major CMAs, 2011

Source: Statistics Canada, CANSIM Table 282-0002 (LFS)

0.0

3.0

6.0

9.0

12.0

15.0

18.0

21.0

CMA Trends (2000 to 2011)

• Edmonton and Quebec City had the largest declines in youth unemployment between 2000 and 2011 (see following chart).

• London, on the other hand, had a huge increase of 7.2%.

• Toronto also experienced a substantial increase of 5.5%, more than three times greater than the increase in the national average in the same time period (1.5%).

Percent Change Unemployment Rates for Youth in Major CMAs, 2000-2011

Source: Statistics Canada, CANSIM Table 282-0002 (LFS)

London

Toro

nto

Halifax

Vanco

uver

Hamilto

n

Ottawa

Winnipeg

Calgary

Montréal

Kingston

Kitchen

er

Canad

a

Victoria

Sudbury

St. Jo

hn's

Edmonton

Québec

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Youth Unemployment as a Percent of Total Unemployment

• The unemployment rate of youth as a percent of the total unemployment rate increased 3.7% from 2010 to 2011 (see following chart).

• Since the relative supply of youth in the labour market has fallen, one might expect their relative labour market performance to improve; however this has not been the case.

• The explanation for this paradox is not readily apparent and deserves further study.

Youth Unemployment Rate as a Percent of the Total Unemployment

Rate and Youth Share of Working Age Population (aged 15 to 64), Canada,

1976-2011

Source: Statistics Canada, CANSIM Table 282-0002 (LFS).

19761977

19781979

19801981

19821983

19841985

19861987

19881989

19901991

19921993

19941995

19961997

19981999

20002001

20022003

20042005

20062007

20082009

20102011

140.0

150.0

160.0

170.0

180.0

190.0

200.0

17.0

19.0

21.0

23.0

25.0

27.0

29.0

31.0

Youth Unemployment Rate as a Per Cent of the Total Unemployment Rate Youth Share of the Working Age Population (aged 15 to 64)

Yout

h Un

empl

oym

ent R

ate

as a

Per

Cen

t of t

he T

otal

Un-

empl

oym

ent R

ate

Yout

h Sh

are

of W

orki

ng A

ge P

opul

ation