(OTTAWA) Young, well-educated Canadian workers are now earning more than those of previous generations.
The first in a series of four reports prepared by Desjardins Group on the performance of young Canadians in the modern economy points out that even if the dominant discourse on the situation of young people tends to be negative, there is much more room for optimism, according to Randall Bartlett, senior director of the Canadian economy at Mouvement Desjardins and co-author of the first report.
The study draws on recent census data which shows that the Canadian population is highly educated, with a higher proportion holding a post-secondary degree than in any other G7 country. Desjardins has found that young Canadians are better educated today than in the past and that more of them hold a university degree or a bachelor’s degree than in most countries of the Organization for Economic Co-operation and Development (OECD ).
The report observed that this has implications for earnings, as people who complete post-secondary education tend to earn more money throughout their lives.
For the purposes of its research, Desjardins compared the earnings of Canadian graduates in 1991 with those of degree holders in 2001. The authors found that the youngest cohort earned several thousand dollars more per year, taking into account inflation, than one who had graduated ten years earlier.
Young people from low-income families are also more likely to pursue post-secondary education today than in previous generations. For youth from families with incomes in the bottom 20%, enrollment increased by 28%. In contrast, for young Canadians from families in the top 20% income, the increase is 10%.
However, the report reveals that young people making the transition from school to work face very real challenges in the job market.
Young women, for example, saw their mental health deteriorate even before the COVID-19 pandemic hit, while young people in general saw their mental health deteriorate significantly during the pandemic.
Women also continue to disproportionately bear the burden of caring for a child or family member.
Looking at adults aged 25-44, women report caring for children as the main reason for working part-time, while men the same age barely mention it, indicates the report.
Working fewer hours or leaving the labor market can lead to lower earnings, which partly explains the gender pay gap.
The report also highlights that young immigrants are doing better in the labor market than in the past, but they still struggle to put their skills to good use.
Jimmy Jean, Desjardins chief economist and lead author of the report, believes the report’s findings should inspire policy makers in Canada.