NEW analysis from the Business Council of British Columbia (BCBC) finds that young people looking for work this summer are entering one of the worst youth labour markets the province has seen in more than two decades.
According to the analysis, there are 51,000 fewer young people working in B.C. today than in January 2019. The province’s youth unemployment rate has climbed to a level not seen outside the 2020–21 pandemic period or the aftermath of the 2008 global financial crisis.
Worse yet, the analysis suggests the severity of the problem may actually be understated by the youth unemployment rate itself. The share of young people either working or actively looking for work has fallen to its lowest level in more than two decades — a pattern consistent with what economists refer to as the “discouraged worker effect,” where people stop searching for jobs altogether because they no longer believe work is available.
“What we’re seeing in B.C. is not a normal downturn for young workers”, said Jairo Yunis, BCBC’s Director of Policy. “Weak private sector hiring, a surge in the supply of entry-level workers, and rising employer costs have combined to squeeze young people out of the labour market. The result is a growing number of discouraged young people who have looked at the job market and concluded there is no point in trying.”
Key findings include:
* Youth employment in B.C. has declined 14 per cent since January 2019, the worst of any province.
* Employment losses are concentrated in retail and accommodation, and food services, which together shed 30,200 young workers, a decline of 17 per cent
* The youth labour force participation rate (i.e., the share of young people who are either working or actively looking for a job) has fallen 10 percentage points since January 2019, from the third highest in Canada to the lowest.
* The youth unemployment rate has risen to 14 per cent, matching the peak reached during the global financial crisis.
“Jobs for young people are incredibly important because they provide early work experience, build confidence, and help get a foot in the door,” said Yunis. “When tens of thousands of young British Columbians can’t get that start, the province loses future workers, taxpayers, and economic growth. Changing that starts with creating a business environment where it is less costly and less complicated for employers to hire young workers.”
