Youth Unemployment In Canada: New Model For Employment Centres May Be Leaving The Young Behind

Youth Unemployment Canada

First Posted: 08/23/11 08:20 AM ET Updated: 10/24/11 06:12 AM ET

Tracks, a non-profit employment centre in Collingwood, Ont., has always welcomed job-seekers of all ages. But in the past year or so, there is one group that hasn’t been showing up as often as they used to: youth.

It’s part of a broader trend that has reportedly seen employment services for youth reduced at a time when that demographic group stumbled into record-breaking joblessness levels. And critics say that part of the underlying issue is a change to government policy that has taken the focus off youth unemployment.

As Tracks executive director Roy Spiegelberg explains, the decline in the number of young people walking through the door -- which he estimates at about 20 per cent -- is due, at least in part, to an influx of adults.

“People who are of working age, who have got work experience are most hungry to get services, they are aggressively coming into our office looking for help,” says Spiegelberg. “Youth -- you tend to almost have to go after them to encourage them to come into centres, and we just don’t have time for that now.”

Spiegelberg is not alone. Following a significant change in the way many employment centres in Ontario receive government funding, front-line workers report that it’s become more difficult to connect with kids. In the wake of a recession that drove youth joblessness to a 30-year high, critics charge that Canada has watered down its strategy for putting young people back to work -- an unintentional yet undeniable consequence, they say, of an “all-ages approach” to employment services.

It’s no secret that the past few years have been tough on the young and jobless. In the summer of 2009, the unemployment rate among students aged 15 to 24 surpassed 20 per cent; two years later, it has edged down only slightly to 17 per cent. The unemployment rate for all youth aged 15 to 24, meanwhile, remains at more than 14 per cent, nearly double that of the general population.

But rather than a flood of kids desperate to beef up their resumes and improve their job-searching skills, several youth-focused employment agencies in Ontario report a significant decline in young people accessing their services. From 2009 to 2010, a poll of a dozen such agencies found by the youth employment services umbrella group First Work found that the number of young people aged 15 to 24 receiving employment services dropped by 35 per cent.

According to Matt Wood, executive director of First Work, the decline is the result of a consolidation of many federally and provincially funded employment programs, which resulted in “all-ages approach,” among other things. The new approach, he argues, has made it more difficult to target youth.

The consolidation was implemented in Ontario last August under the Labour Market Development Agreement (LMDA), which downloaded the delivery of many employment programs to the province in an effort to provide job-seekers with more universally accessible service.

Though Nancy Schaefer, president of the Toronto-based Youth Employment Services (YES), says that her agency has not experienced a decline in the number of young people, she attributes this to a longstanding reputation for serving youth, and a concerted effort to reach out to youth despite fewer resources with which to do so.

“The government ... would say they’re giving [more money] to laid off people. They would say that we’re addressing the problem. But my argument is that youth unemployment is the worst, and what’s the government doing to address that?” she says. “I don’t think the youth of the province are being well-served under this model.”

In response these criticisms, a communications officer for Ontario’s Ministry of Training, Colleges and Universities, which is responsible for delivering the employment programs that were consolidated under the LMDA, told HuffPost that the province “has improved on the service delivery experience for clients in that youth (and all other clients) now have a far greater choice as to where they may access service.”

Despite the fact that “the overall number of sites has decreased” due to the “reorganization of the Employment Services [m]odel,” Tanya Blazina maintained in an e-mail that “the performance management framework ... is designed to ensure that service delivery sites are doing targeted outreach to ensure that services are being provided to clients who are most in need of services.”

As for the reported decline in the number of youth accessing services, she questioned the scope of the First Work poll, maintaining that “Youth numbers may well be dispersed amongst the larger Employment Services network.”

Blazina provided The Huffington Post with data indicating that the number of youth -- defined as age 30 or younger -- accessing employment services in Ontario grew by 16,000 from 2008-2009 to 2009-2010, to a total of 166,000. However, the ministry did not have these numbers compiled when HuffPost inquired about them, and it took the ministry nearly a week to put them together.

When asked about the discrepancy between the ministry data and that which First Work collected, Wood points out that the province has a much broader definition of youth, defining it as people under 30. The First Work poll used 24 as the cutoff for youth.

“These numbers cannot compare apples to apples,” Wood asserts.

“The data [the province is] sharing sidesteps the issues by using such a high age category,” he says, adding that the province’s numbers also reflect an increased investment in summer job programs in recent years, which only serve students.

“The drop we have witnessed has been in the out-of-school unemployed youth, a much more needy population who do not typically take advantage of summer job programs,” he says.

According to Human Resources and Skills Development Canada (HRSDC), Ottawa inked the LMDAs to “help unemployed Canadians quickly find and return to work and to develop a skilled labour force … Through these agreements, Government of Canada funding enables provinces and territories to design, deliver and manage skills and employment programs for unemployed Canadians.”

A similar consolidation effort is currently underway in B.C., where the province is expected to award contracts for “one-stop shop” employment services agencies under the LMDA later this year.

Though there are still federally funded programs that serve specific groups of youth (HRSDC told HuffPost that 57,000 young people across the country were served by Youth Employment Strategy programs in 2010-2011, about 2,500 more than the previous year), the consolidation of other major youth and adult programs in Ontario has reportedly taken the emphasis off of young people, even in centres that specialize in serving this typically tough-to-reach group.

“The system overhaul has really kind of forced us to market more generally across all demographics,” says Jeff Burry, director of employment services at the Youth Services Bureau of Ottawa. “Youth are kind of thrown into that, whereas before it was exclusive to youth.”

As Wood sees it, the all-ages mandate means many young people must now compete with adults for limited time and resources in a battle that is tough for them to win.

“Serving adults in employment services is like shooting fish in a barrel. Adults are self motivated, adults understand the system and adults have experience and strengths that they can build on,” he says. “So when [agencies] open their doors, who is lining up? Adults.”

More than 50 per cent of poll respondents told First Work they were serving fewer young people because of “the strict measures of the new Employment Services model, which excludes youth with more needs in order to serve clients most likely to achieve employment as quickly as possible.”

But that doesn’t mean out-of-work youth are any less desperate.

Isatou Bayo, a 20-year-old who immigrated to Toronto from Gambia last year, says that despite spending months dropping off resumes, making calls and applying online, her search for a minimum-wage job has so far come up cold.

“I’m not looking for [a] high-standard job, but just a job that’s stable for me to support myself,” says Bayo, who has enlisted the help of YES.

“My resume is good, I have a good customer service background, but I don’t know why I don’t have a job,” says Bayo, whose sister sponsored her to come to Canada, and is currently providing her with a place to live. “It’s getting harder and harder every day. I’m so disappointed.”

To be sure, the wide array of government bodies and private sources that fund youth employment program (not to mention the absence of a standard for defining this demographic) makes it difficult to get a clear picture of whether services are working as well as they could, or even as well as they did in the past.

But when it comes to keeping kids from slipping through the cracks, those on the front lines say that gauging the effectiveness of government-funded programs is key.

“[The new Employment Ontario model] is a developing model, so the impact of the model on youth needs to be specifically measured,” says Steve Cordes, executive director of the London, Ont.-based Youth Opportunities Unlimited. “My hunch is that it’s going to be a model that meets with better success when you’re dealing with specific, targeted services for youth. But the Employment Ontario numbers will have to bear that out over time … I sure hope the province is measuring the impact, because I don’t know that they are.”

In the meantime, however, youth-focused employment agencies are focusing on doing what they do best. After noticing a drop-off in the number of young people accessing services last year, Burry says his organization has been “rethinking the way we reach out to youth” online and in social networks, which is beginning to reverse the trend.

“I guess the youth focus got watered down, but that still doesn’t preclude organizations from doing strategic outreach activities catered to youth,” he says. “I just think that as we all try to wrap our heads around the new model, it’s just taking time to figure out.”

Canada's youth joblessness problem has in many ways echoed that of other developed countries. Check out this comparison of youth unemployment rates, inside and outside Canada.

Loading Slideshow...
  • Youth Unemployment In Canada

    The red line on this graph from StatsCan plots the unemployment rate for Canadians between 15 and 24 years old. Youth unemployment in Canada this summer is around <a href="http://www.financialpost.com/personal-finance/young-money/joblessness+normal+grads/4929608/story.html" target="_hplink">double the national rate</a>, at 14 per cent.

  • Youth Unemployment By Region

    Barrie has <a href="http://www.theglobeandmail.com/report-on-business/economy/jobs/canadian-youth-unemployment-rates/article2064041/" target="_hplink">one of the highest rates</a> of youth unemployment in the country at 25.4 per cent. Regina is one of the lowest at 9.5 per cent. This chart shows unemployment rates by region from 1996 to 2003.

  • UK Youth Unemployment Hits Record

    By November 2010, youth unemployment rates in the UK had reached 20.3 per cent. It's the highest level of youth unemployment in the UK since they started keeping records in 1992.

  • EU Youth Unemployment Rates

    Youth unemployment in the European Union was just above 20 per cent by the second quarter of 2011. Unemployment in the EU for people between the ages of 15 and 24 peaked at the end of 2009 and beginning of 2010.

  • U.S. Youth Joblessness Near All-Time Peaks

    In July 2010, the rate of youth unemployment in the U.S. reached 19.1 per cent, which was the highest July on record. In contrast, the youth unemployment rate in 2006 was 11.2 per cent, in 2002 it was 12.4 per cent, in 1998 it was 10.8 per cent and in 1994 it was 12.6 per cent.

  • International Youth Unemployment Rates

    Comparatively with other countries, Canada<a href="http://oncampus.macleans.ca/education/2011/06/13/is-canadas-youth-unemployment-really-so-bad/" target="_hplink"> isn't doing the worst</a> when it comes to the youth unemployment rate. 24 per cent of Sweden's youth are unemployed and Italy is at 29 per cent. In Spain, it's a staggering 44 per cent. Germany is only at 8.1 per cent, but students in that country attend university full-time and don't pay tuition.

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Tracks, a non-profit employment centre in Collingwood, Ont., has always welcomed job-seekers of all ages. But in the past year or so, there is one group that hasn’t been showing up as often as they ...
Tracks, a non-profit employment centre in Collingwood, Ont., has always welcomed job-seekers of all ages. But in the past year or so, there is one group that hasn’t been showing up as often as they ...
 
 
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08:58 AM on 08/26/2011
Have you been to Service Canada and those quasi Service ( place your Province )agencies. ??? These are the most useless Government agencies in the country, especially if you are looking for work or retraining.

My advice is to get angry and start demanding that these Government agencies actually
perform the services that they say they provide.

This is an example of your Tax dollars being wasted. Get active and help create the necessary
changes, in promoting work and the value of work to the individual and our Society in general.
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butchcliff
The future is unwritten
07:23 AM on 08/25/2011
Older people have a much greater work ethic and need. Most companies are seeing this. Have watched where I work and these kids, not all, but the majority act like they are entitled in some way and can never be wrong in breaking rules or slacking. Spend more time and effort trying not to do the work. Until they get fired. Seen lots of them come and go. Yet the older hires, mostly, dive right in and bust their backs, because they appreciate the work and have a better work ethic. Again I say not all but most.
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HUFFPOST SUPER USER
ParliamentHillCatMP
10:10 PM on 08/24/2011
Forget youth unemployment, we need to look at how employers are biased against older workers.
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HUFFPOST SUPER USER
Kristopher Leang
training to take down the elite
12:26 AM on 08/24/2011
besides osap which can be nothing if the parents make a certain amount even though they don't help the student at all and they support themselves, students and youth have been forgotten by this country. tuition now constitutes unseen percentages of our wages. even with higher minimum wage and inflation over time, education is more costly now in Canada then ever. and what was harpers solution for me during the recession? his answer was hiring thousands of middle age construction white men. yay! this was after the true scale of the reccession was hidden til the last moment. while many youth now arent bought out by the lie of capitalism and care about issues like healthcare and the cpp. the older generation tend to be conservative. short sighted and selfish. voting for a party that continues to mistreat its young population. whether through new repressive laws or lack of decent help
02:12 PM on 08/23/2011
Sorry but the youth will just have to wait for those of us over 30 to get jobs! They can go live off mommy and daddy some more or work at McDonalds. I have to support a family and need a good job. If only employers would hire people with job experience but no, they want little kiddies with a degree in anything instead of a great worker with lots of experience and maturity. We all need jobs not just the "youth".
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HUFFPOST SUPER USER
ParliamentHillCatMP
07:57 PM on 08/23/2011
Oh I know it. I know it.
01:46 PM on 08/24/2011
We'll remember that when your CPP runs out and "the kiddies" end up having to pay for your retirement. Just keep passing that buck.
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HUFFPOST SUPER USER
ParliamentHillCatMP
10:09 PM on 08/24/2011
Hey the boomers kept us out..so..there..
09:02 AM on 08/23/2011
Age 30 is not a youth! Playing games with statistics again. As an employer, I hire university students only even for receptionist positions. I can get a Ryerson grad with finance and marketing degree for a very low salary. The universities are full of immigrant students also wanting to work for zero financial remuneration. We have a policy of not hiring for zero salary. All the summer students have gone on to a full time job with my company.
This pattern happened in Britain in the 60's where employers like myself hired minorities who were willing to work for a much lower wage and tend to work far harder - generalizations but in my business which I have run for 8 years now, all applicable.
Also - with the minimum wage, I would not hire a young person under 18 which is too bad. My kids got to work in my business and it is paying off for them now.
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10:37 AM on 08/23/2011
What a guy! You have a policy of not hiring immigrant students for zero remuneration. Not surprised to see that you are involved in the finance sector.
12:05 PM on 08/23/2011
The policy is not to have employees who work for zero dollars. First, it is not ethical and second, there are risks too numerous to list here. Immigrants are 90% of the applicants wanting to do this. It worries me to see this rising trend, as well as the declining wages for MBAs and university grads. If you think I am writing this because I think it is great - quite the opposite. I saw this happen in Britain and it is why I moved to Canada and now we are on the same track. I am a woman, not a guy.
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BCSLAVE
Got a key?
12:50 PM on 08/23/2011
I agree age 30 is not a youth. I also believes one must pay their dues (entry level) before ascending the ladder. So when you do hire them full time do you pay them what they have proven they are worth or a salary well below because you sense they are desperate? Also do you pay benefits which is an offset of monetary remuneration? What is your turn over rate if your are paying them a nominal amount for the work and proven competence they provide your company? I believe in paying what the market can bare, but also know that paying well low below the market is detrimental to not only your company but to the market as a whole as markets do need customers - your employees are ultimately customers. In today's far right thinking the customer has become a free loader it would appear. One last question, do you think you should pay 1% personal taxes because you are a job creator like some in the states do?
09:44 AM on 08/24/2011
I am desperate! I have to make payroll every two weeks.
I see people want to work in my industry and will do anything to get the initial job experience. Once they come on full time, yes I raise their salary but honestly do not pay close to big corporations. What I do differently is have a low base pay but high bonus and since our business is around finances, they know how much money the business.
I have zero turnover in the entire time I have run the business. I know each person's career goals. I pay for their education once they pass the course. I pay for their memberships. We have a fun culture.
I pay medical dental (but I do not have these benefits) I see pay checks and am shocked by how much goes to government. I pay the employees' govt. deductions upfront .
As for paying 1% tax, I have not been able to issue myself a T4 to pay ANY personal tax, but I pay through my business tax and I pay for every employee I have. Employee tax must be paid!
I put up our house for mortgage to survive longer.
Business owners do not want to move their businesses and their jobs out of country - would you rather work close to your family? Chinese made goods are flooding the market and you talk about consumers - Canadian consumers are voting with their purchases too you know - takes two hands to