Youth Unemployment to Cost Canadian Economy $18.5 Billion by 2034, Warns New Report

TORONTO, Nov. 18, 2024 /CNW/ - A landmark report, Failure to Launch from The King's Trust, reveals a startling economic reality: Canada's failure to address its youth unemployment crisis will cost the country $18.5 billion in GDP by 2034.

In addition to the cost to GDP, the report, prepared by Deloitte Canada, finds that acting on the youth unemployment crisis, which reached 14.5% in August, marking the highest rate since 2012—except for the pandemic years, would result in significant economic gains to Canada, including:

• The creation of 228,000 jobs.
• An increase of $5.3 billion in government revenue due to higher tax revenues from increased employment.
• An increase of $9.2 billion in greater wages and salaries.
• A boost to Canada's annual GDP growth rate (from 1.98% to 2.04%) over ten years.

In addition to the economic opportunities that come with addressing youth unemployment, the report highlights the devastating social consequences of inaction including deteriorating mental health, substance abuse, and crime that will require greater investment in healthcare, social assistance and the criminal justice system.

"The numbers speak volumes: Canada is in a crisis when it comes to un/underemployment of our young people who feel that our systems and institutions have let them down, and this is contributing to a growing sense of frustration and division in Canada," said Farah Mohamed, CEO of The King's Trust. "Governments, corporate Canada and the charitable sector must do more for young people as the economic and social costs are far too high to ignore."

"Unemployment in the early stages of a career can have long-lasting effects, delaying the development of productive skills and a professional network," said Trevin Stratton, Americas Economics Advisory Leader at Deloitte Canada. "When youth are unable to find suitable employment, they are unable to fully contribute to the economy and society. Ultimately, the exclusion of young people from the world of work comes at a steep cost. Canada has an opportunity to empower the next generation, build a resilient workforce, and fuel economic growth for a better country for all."

"The King's Trust Canada report allows us the benefit of foresight and the opportunity to act on a crisis with significant and compounding costs," said Mark Fell, Chair of the Board of Directors of The King's Trust, "Ensuring the well-being of young Canadians is an economic and social imperative that we must not ignore."

Read the full report at www.kingstrust.ca/youth-unemployment/

About The King's Trust Canada

Founded by His Majesty the King Charles III, The King's Trust Canada is a national charity that creates pathways to employment for young people facing barriers by providing free skills training, work experience and networking opportunities. 

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SOURCE The King's Trust Canada

Media Contacts: Mallory Clyne, [email protected]