Youth Unemployment in Alberta: A Cause for Concern?

Youth unemployment has become a pressing issue in Alberta, raising concerns about the challenges young people face as they enter the workforce. This article delves into the current state of youth unemployment in the province, comparing it with other Canadian provinces and exploring the factors contributing to this concerning trend.

Youth Unemployment Rates in Alberta

Over the past few years, Alberta has witnessed a fluctuating yet persistently high youth unemployment rate. In 2021, the unemployment rate for youth (aged 15 to 24) increased significantly due to the COVID-19 pandemic and public health restrictions, which particularly impacted industries with high youth employment, such as accommodation, food services, and retail. Notably, employment losses were more severe for young women than young men 1. In 2023, the unemployment rate for young workers in Alberta was 12.3%, a 1.5 percentage point increase from 2022 2. This trend continued into 2024, with the youth unemployment rate reaching 14.0% in November 3. While this figure represents a decrease from the previous month (15.5% in October 2024), it remains higher than the rate from the same time last year (14.4% in November 2023) 3. It is also important to note that the long-term average youth unemployment rate in Alberta is 11.18% 3, placing the current figures in a concerning context.

These statistics translate to a significant number of young Albertans facing unemployment. In November 2024, there were 55,700 people aged 15 to 24 years unemployed in Alberta, a 6.1% increase from November 2023 4. This concerning trend raises questions about the opportunities available to young people in the province and the potential long-term consequences for Alberta's economy and society.

Alberta's Youth Unemployment Compared to Other Provinces

To fully grasp the severity of Alberta's youth unemployment, it's essential to compare it with other Canadian provinces. In 2023, Alberta's youth unemployment rate was 5.9%, placing it in the middle range compared to other provinces 5. However, by November 2024, the rate had climbed to 7.5% 6. This increase positioned Alberta above the national average of 6.8% and higher than provinces like Nova Scotia (6.1%), Quebec (5.9%), Manitoba (5.8%), and British Columbia (5.7%) 6.

Province

Youth Unemployment Rate (Nov 2024)

Newfoundland and Labrador

10.8%

Prince Edward Island

8.0%

New Brunswick

6.9%

Nova Scotia

6.1%

Quebec

5.9%

Ontario

7.6%

Manitoba

5.8%

Saskatchewan

5.6%

Alberta

7.5%

British Columbia

5.7%

Canada (National Average)

6.8%

This comparison reveals a critical insight: despite having the highest overall employment rate among Canadian provinces at 64.3% 7, Alberta has the third-lowest youth employment rate at 53.8% for those aged 15 to 24 7. This disparity highlights the unique challenge Alberta faces in providing adequate employment opportunities for its young people.

Challenges Faced by Young Albertans Entering the Workforce

Young people in Alberta encounter various obstacles as they transition into the workforce:

• Lack of Experience: Many young people lack the necessary work experience to secure entry-level positions. This can be a significant hurdle, as employers often prioritize candidates with proven track records. For example, a young person applying for a retail position may be overlooked in favor of someone with previous customer service experience, even if the young person possesses the necessary skills and enthusiasm 8.

• Limited Job Opportunities: While Alberta generally enjoys a strong job market, specific sectors where young people typically find employment, such as retail and wholesale, have experienced job losses. In 2024, Alberta saw a 9% decrease in retail and wholesale jobs compared to the previous year 7. This decline reduces the availability of entry-level positions and intensifies competition among young job seekers.

• High Cost of Education: The rising cost of post-secondary education in Alberta can create a financial burden for young people, potentially delaying their entry into the workforce or limiting their job prospects due to debt. In 2023, the average cost of a four-year university degree in Alberta was $78,034, and this figure is projected to exceed $100,000 by 2039 9. This financial strain can force young people to prioritize debt repayment over career exploration or further education, potentially hindering their long-term career prospects.

• Economic Slowdowns: Younger workers are more vulnerable to economic downturns due to their limited work experience and the types of jobs they typically hold. During economic slowdowns, employers often reduce their workforce, and younger workers with less experience are often the first to be let go 11. This vulnerability can create instability and uncertainty for young people trying to establish themselves in the job market.

• Competition from Newcomers and Graduates: An influx of newcomers and a growing number of graduates entering the workforce increase competition for entry-level positions. A key insight from the research is that both newcomers and new graduates often lack the specific work experience required by employers, creating a highly competitive environment for young Albertans seeking their first jobs 12.

• Lack of Essential Skills: Beyond technical skills, some young people may lack essential soft skills, such as communication, problem-solving, and teamwork, which are crucial for success in today's workplace 13. These skills are often developed through work experience and extracurricular activities, and young people without these opportunities may find it challenging to compete with those who have had the chance to cultivate these skills.

These challenges underscore the need for robust support systems and resources to help young Albertans overcome these barriers and successfully transition into the workforce. It is crucial to provide young people with opportunities to gain experience, develop essential skills, and navigate the complexities of the job market.

Reasons for Youth Unemployment in Alberta

Several interconnected factors contribute to the high youth unemployment rate in Alberta:

• Economic Downturn: Economic slowdowns disproportionately affect young workers due to their limited experience and the types of jobs they hold. When economic activity slows, businesses often reduce hiring or lay off employees, and younger workers with less experience are often the first to be affected 11.

• Skills Mismatch: A mismatch between the skills young people possess and the skills employers demand can contribute to unemployment. This mismatch can arise from rapid technological advancements, changes in industry demands, or gaps in educational and training programs 14.

• Increased Labour Force: A significant increase in the youth labour force, coupled with a slower growth in job creation, can lead to higher unemployment rates. As more young people enter the job market, competition for available positions intensifies, making it more challenging for individuals to find employment 15.

• Precarious Employment: Young people are more likely to be employed in precarious jobs with low wages, limited benefits, and little job security, making them more vulnerable to unemployment. These jobs are often part-time, temporary, or contract-based, offering less stability and fewer opportunities for career advancement 13.

• COVID-19 Pandemic: The COVID-19 pandemic had a significant impact on youth employment, with many young people losing their jobs or facing reduced work hours. The pandemic disrupted industries with high youth employment, such as hospitality and retail, leading to widespread job losses and economic uncertainty 16.

It is important to recognize that youth unemployment is not a new phenomenon. Research indicates that youth unemployment has consistently been higher than the overall unemployment rate, suggesting a persistent issue that requires long-term solutions 17. Addressing these underlying causes is crucial for developing effective strategies to reduce youth unemployment and create a more inclusive and supportive job market for young Albertans.

Government Programs and Initiatives

Recognizing the challenges faced by young job seekers, the Alberta government has implemented various programs and initiatives to address youth unemployment:

• Alberta at Work: This initiative focuses on addressing labour market challenges, including youth unemployment, by providing training programs, employment services, and support for under-represented groups 14. The program aims to equip Albertans with the skills and knowledge needed to succeed in the workforce and contribute to the province's economic growth.

• Student Work Placement Program and Trade Pathways Program: These programs, funded by the government, provide valuable opportunities for young Albertans to gain practical work experience. The Student Work Placement Program offers post-secondary students paid work experience related to their field of study, while the Trade Pathways Program connects young people with construction companies for paid work placements 18.

• Youth Employment and Skills Strategy (YESS): This federal initiative offers various funding programs to help young people gain skills, work experience, and support for their transition into the labour market 18. YESS programs focus on providing young Canadians with opportunities to develop essential skills, explore career options, and gain valuable work experience.

• Agriculture Job Connector: This program helps connect workers with employers in the agriculture and agri-food sectors 18. This initiative recognizes the importance of the agriculture sector in Alberta and aims to address labour shortages by connecting job seekers with employers in this vital industry.

These programs demonstrate a commitment to supporting young Albertans in their journey to employment. By providing access to training, work experience, and resources, these initiatives aim to reduce youth unemployment and foster a skilled and engaged workforce.

Resources for Young Job Seekers in Alberta

In addition to government programs, various resources are available to assist young job seekers in Alberta:

| Resource | Description |

Works cited

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