Youth unemployment on the rise in B.C.: Statistics Canada

Youth unemployment in British Columbia (B.C.) has been on a concerning upward trajectory, reflecting broader economic challenges and necessitating targeted interventions. According to data from Statistics Canada, the youth unemployment rate in B.C. reached 12.9% in December 2024, up from 12.6% in November 2024 and significantly higher than the 8.4% recorded in December 2023.

Statistics

The youth unemployment rate measures the percentage of individuals aged 15 to 24 who are actively seeking employment but unable to find work. In B.C., this demographic has experienced fluctuations in employment metrics over the past year. The youth employment rate, which indicates the proportion of employed individuals within the same age group, stood at 53.1% in December 2024, a slight increase from 52.0% in November 2024 but a decline from 60.4% in December 2023.

Additionally, the youth labour force participation rate—which represents the share of youths either employed or actively seeking employment—was 59.5% in November 2024, down from 61.0% in October 2024 and 65.7% in November 2023.

Factors Contributing to Rising Youth Unemployment

Several factors have contributed to the increasing youth unemployment rate in B.C.:

Economic Slowdown: Canada’s overall economic performance has faced challenges, with the national unemployment rate reaching 6.6% in August 2024, marking a seven-year high outside the pandemic years.

This economic deceleration has led to reduced hiring, disproportionately affecting younger job seekers.

Labour Force Growth Outpacing Job Creation: An influx of new workers, partly due to immigration, has expanded the labour force. However, job creation has not kept pace, leading to a decline in the employment rate to 60.6% nationally.

Youths, often with less experience, face stiffer competition in such a saturated market.

1. Sectoral Shifts: Industries traditionally employing a significant number of youths, such as retail and hospitality, have undergone transformations. Automation, e-commerce growth, and changing consumer behaviors have reduced employment opportunities in these sectors.
2. Skills Mismatch: The rapid evolution of industries, especially with technological advancements, has created a gap between the skills youths possess and those demanded by employers. This mismatch hampers youths’ ability to secure employment in emerging sectors.

Implications of Rising Youth Unemployment

Elevated youth unemployment carries several socio-economic implications:

• Economic Strain: Unemployed youths contribute less to the economy through spending and taxes, potentially slowing economic growth.
• Social Consequences: Prolonged unemployment can lead to social issues, including increased crime rates and mental health challenges among youths.
• Future Workforce Impact: Early career unemployment can have long-term effects on an individual’s career trajectory, earning potential, and skill development.

Strategies to Mitigate Youth Unemployment

Addressing the rise in youth unemployment requires a multifaceted approach:

1. Skills Development Programs: Implementing training initiatives focused on in-demand skills can enhance youths’ employability. Partnerships between educational institutions and industries can ensure curricula align with market needs.
2. Support for Youth Entrepreneurship: Encouraging entrepreneurial endeavors through grants, mentorship, and resources can provide alternative employment avenues for youths.
3. Policy Interventions: Government policies aimed at stimulating job creation, such as incentives for businesses hiring youths or investments in sectors with high employment potential, can alleviate unemployment rates.
4. Career Counseling and Mentorship: Providing guidance to youths on career paths, resume building, and interview preparation can improve their job search effectiveness.

Conclusion

The rising youth unemployment rate in British Columbia is a pressing issue that mirrors broader economic trends and structural challenges. Addressing it necessitates collaborative efforts from government bodies, educational institutions, industries, and communities to implement strategies that equip youths with the skills and opportunities needed in today’s evolving job market.