(Toronto) Young Canadians don’t want to be their own boss, intensifying the slowdown in entrepreneurship in Canada, according to a new report from the Royal Bank.

The decline in the self-employment rate is also amplified by soaring inflation, strong labor markets and uncertainty caused by the COVID-19 pandemic, the report explains.

Although self-employment rates among young Canadians aged 35 to 44 have historically tended to be lower than those of older cohorts, the report indicates that the proportion of young people seeking to “become their own boss” has declined to 2.0%, compared to 3.3% in 1998.

The Royal’s deputy chief economist, Cynthia Leach, suggests that a strong labor market and higher hourly wages for employees are likely factors contributing to the slowdown in self-employment.

A professional, scientific or technical services employee earns 20% more than self-employed workers while enjoying flexible hours, which was once a benefit reserved for self-employed workers.

Ms Leach says she does not see the trend of declining entrepreneurship reversing despite an expected slowdown in the job market next year, as higher costs of living and continued wage increases drive out paid employment the most attractive option.