Canada's declining employment could lead to lost generation

Attendees at the WorkLink Employment Society Job Fair in Langford, B.C. Photo by James MacDonald/Bloomberg files

The Canadian labour market has weakened in recent months, with the unemployment rate reaching 7.1 per cent in August, its highest level since 2016. The situation is even worse for younger people. At 14.5 per cent in July, the unemployment rate for this cohort of workers has been the highest since the early 2010s.

If it were not for many young people, likely discouraged by their job prospects, dropping out of the labour force, with the participation rate of this cohort reaching lows not seen since 1998, their unemployment rate would be closer to 18 per cent.

Most unemployed young people tend to have attained a lower level of education — high school diplomas or less — but