Premier Danielle Smith urges business community to hire younger Albertans

Abiola Yussuph knows firsthand about the current youth unemployment crunch.

That’s why he was one of dozens of people who turned up to the career resource fair hosted by The Come Up, a Black youth empowerment program run by the Africa Centre.

Not so much looking for a job, but a future career path.

The Grade 11 student at Father Michael McCaffery Catholic High School in the city’s southwest said the job hunt in Edmonton was tough, and getting tougher.

“It’s not the best thing because you just hand in so many resumes and you barely get anyone getting back to you,” he said Saturday.

Justinah Adeyanju, program co-ordinator for The Come Up, said exposing attendees to different career pathways was just one way of creating awareness for the next generation of employees.

“We believe that this type of representation matters, visibility matters and access does matter,” she said. 

Statistics Canada data shows the youth unemployment rate for Albertans aged 15 to 24 dropped from 17 per cent in August to 14.7 per cent in September. 

It’s down from a high of 20.3 per cent in July.

That is compared to the Canada figure that has been hovering around the 14 per cent mark since April. 

A report last year commissioned by King’s Trust Canada, a national charity that works with national employers and employees, identified several key challenges facing young people in the workforce.

The report, prepared by Deloitte and published in November, said there are more people for fewer jobs, increased competition and less on-the-job training.

“The number of youth looking for work has increased, but the number of available jobs has not grown at the same rate,” the report said.

“From an economic standpoint, youth underemployment has broader consequences. It hampers productivity and innovation, as the potential of young talent remains untapped.

“Moreover, it can perpetuate income inequality and hinder social mobility, as individuals struggle to break free from the cycle of low-paying, part-time jobs.”

The King’s Trust report called on governments, educational institutions and businesses to “collaborate and implement robust policies and undertake effective initiatives.”

Alberta Premier Danielle Smith told an Edmonton Chamber of Commerce event Thursday that while the latest youth unemployment numbers were heartening, she was still concerned they were too high.

“I’m gravely concerned about the level of youth unemployment in Alberta and in the country,” Smith said during her state of the province event. 

Smith pointed to her government’s $8 million Alberta Youth Employment Incentive Program launched in September that helps pay $10 of the hourly wage of young people.

The initiative is expected to help 1,000 businesses hire 2,500 youths in the province. 

In a recent mandate letter to jobs minister Joseph Schow, Smith said expanding programs to reduce youth unemployment was key to growing Alberta’s economy.

“So if you’re looking for staff, please reach out to a young person. It’s a fantastic option for them to land in and you to hopefully land enthusiastic employees who want to build their resumes because this is the next generation of Albertans we’re talking about,” Smith told the gathering.  

“This is your future workforce, the future of your companies and your legacy. 

“Taking the chance now to invest in that future will come back to you many times over as we build a strong economic foundation in our province in the years and decades ahead.

“If those kids don’t get their first job, they’re not going to get their second job and then they’re not going to get their third job.”

University of Calgary economist Trevor Tombe said weakening economic conditions, high rates of uncertainty and potential disruptions with trading partners — in particular the U.S. -– all factor into hiring decisions.

“We shouldn’t think that the cause of youth unemployment today is because employers are somehow not offering positions to individuals when appropriate,” Tombe told CBC News on Saturday.

“We’re seeing reductions in the rate of job vacancies being posted in many sectors and especially in sectors like accommodation, food services and retail, which are down considerably in the past year in terms of new job vacancies being posted. 

“And that differentially hurts young people.

Tombe said reduction in the rate of growth this year comes with increases in unemployment and that normally leads to much higher increases in youth unemployment.

Canada’s monthly gross domestic product rebounded from three months of contraction to grow by 0.2 per cent in July. Canada’s GDP had shrunk in the second quarter by 1.6 per cent annualized.

Global growth is projected to slow from 3.3 per cent in 2024 to 3.2 per cent in 2025 and 3.1 per cent in 2026.

“And so, trying to persuade employers to hire is perhaps a simplistic way to address this,” he said. 

“The broader solution is faster rates of economic growth, which is going to increase the number of job vacancies and therefore increase the amount of job creation and therefore reduce unemployment,” he said.