Future of work

Young people have been disproportionately affected by the economic slowdown resulting from measures to curb the spread of COVID-19. This has implications for high school and post-secondary graduates planning to enter the job market soon. To understand these implications, Statistics Canada estimated five-year potential earnings losses under five different youth unemployment rates. In the case where the youth unemployment rate for this year is 16%, five-year losses could be less than $6,000 for all groups, or less than $1,200 per year. If, instead, this year’s unemployment rate reaches 19%, potential five-year losses could range from $8,000–$15,000. If the rate goes up to 22% or 25%, on the other hand, earnings losses range from approximately $15,000–$25,000 and $22,000–$35,000, respectively. Finally, at a youth unemployment rate of 28% for this year, individuals could lose $25,000 or more over the next five years, ranging from $23,000–$44,000 depending on gender and level of education.