With more than six unemployed Canadians for every job vacancy, Canada’s recovery from the global economic downturn of 2008-09 has remained relatively modest, compared to the preceding 12 months. True, Canada’s employment rate increased by 28,700 (0.2%) in March 2015, but the unemployment rate remained unchanged at 6.8%.
Since our economic recovery began in 2009, there has been little progress in job creation. Many of the newly created jobs have been part-time or temporary employment contracts. In the short-term, this helps to fill an essential need for many who are facing barriers to sustainable employment, but these so called “mini-jobs” are typically low paying and often hinder workers from improving their livelihood, over the long-term.
In contrast to Germany’s non-traditional approach to work arrangements amid global uncertainty, many Canadians in part-time and temporary jobs are not exempt from applicable source deductions, such as income taxes and employment insurance premiums (EIP). This contributed to the stagnation of the average household income between 2008 and 2011, forcing many young people to put plans to start and/or grow a family on hold and well-educated, qualified new immigrants to struggle to provide for their families—for example.
Unless government and businesses collaboratively invest in generating more permanent, full-time employment opportunities for the unemployed and the under-employed, our social infrastructure is at risk. Health care, seniors’ and other social services cannot be maintained at their current levels if tax revenues continue to decline as a result of constricted job creation and government initiated tax cuts. Interestingly, however, we have seen a decrease of 6.9% in personal income taxes since the start of the recession in 2008.
When the federal government cut corporate taxes in 2010, it was expected that Canadian corporations would use tax savings to create jobs and stimulate economic growth. Instead, businesses have collectively accumulated $630 billion in unspent money. It is imperative that these funds are invested in the succession of our labour force if Canada is to effectively compete with emerging markets and ensure socio-economic sustainability—particularly as experienced baby boomers continue to retire en masse. In the interim, Canadian youth, new immigrants and other marginalized persons who are facing roadblocks to meaningful job opportunities must tackle joblessness and underemployment, while preparing to capably assume responsibility for our country’s future.
Historically, youth employment rates decline during economic downturns as employers seek older, more experienced workers who can begin making a significant contribution to their business immediately upon hire. But to enable young people, newcomers to Canada and other side-lined persons to acquire the experience they need to gain access to meaningful work, government and businesses are pressed to further develop supplementary training programs and services, such as paid internships. Paid internships and other training programs give participants a chance to gain practical, hands-on experience and become taxpayers, not tax burdens.
Career Edge‘s paid internships offer individuals facing barriers to employment the chance to receive on-the-job training while doing meaningful work. This often leads to permanent, full-time jobs that are commensurate to their education, skill-set and career aspirations. Over half of our paid interns are hired by their host employers at the end of the internship, and most of the rest launch their career elsewhere within six months after their internship term is completed.
Ultimately, encouraging employers to consider alternative means for job creation would not only benefit them; it would benefit us all. If – for instance – young Canadians cannot afford to start or grow their families as a result of unemployment, low income or high student debt, and internationally qualified professionals are discouraged from immigrating to Canada due to a lack of meaningful work opportunities that match their qualifications, our economic strength and ability to seize global opportunities will be impeded. Government and businesses must, therefore, invest in recruitment and retention initiatives at a faster and higher rate, in order to boost productivity and economic performance now and in the years to come.