2. 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.
3. 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).
5. 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%.
6. Unemployment Rate for Youth in Major
CMAs, 2011
21.0
18.0
15.0
12.0
9.0
6.0
3.0
0.0
Source: Statistics Canada, CANSIM Table 282-0002 (LFS)
7. 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%).
8. Percent Change Unemployment Rates
for Youth in Major CMAs, 2000-2011
8.0
6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0
Source: Statistics Canada, CANSIM Table 282-0002 (LFS)
9. 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.
10. 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 200.0 31.0
Youth Unemployment Rate as a Per Cent of the Total
29.0
190.0
Youth Share of Working Age Population
27.0
180.0
Unemployment Rate
25.0
170.0
23.0
160.0
21.0
150.0
19.0
140.0 17.0
1976 1981 1986 1991 1996 2001 2006 2011
Youth Unemployment Rate as a Per Cent of the Total Unemployment Rate Youth Share of the Working Age Population (aged 15 to 64)
Source: Statistics Canada, CANSIM Table 282-0002 (LFS).