Anticipating a poor summer job market for students, the province yesterday announced it will boost its youth employment funding to $90 million by offering more government jobs and wage subsidies to employers who hire young people.
The new investment, representing a 57 per cent jump or $32 million over last year, comes as statistics show Canada’s youth unemployment rate at 14.8 per cent, its highest in 11 years.
Since October, employment for those between the ages 15 and 24 has dropped by 122,000 jobs, pushing their unemployment rate up by 2.6 per cent. In March alone, the age group lost 19,000 jobs.
"In challenging economic times, Ontario is helping more students find the jobs they need to fund their education and develop important workplace skills," John Milloy, Minister of Training, Colleges and Universities, told a news conference yesterday at Ontario Place, which hires 500 young workers each summer.
The additional funding will allow 27,000 more students to participate in the Ontario Summer Jobs program, bringing the total to 100,000 students aged 15 to 30. The government, which offers $2-an-hour wage subsidies to private and not-for-profit employers who hire Ontario youth, will extend the funding to more employers.
Shreya Patel, who just finished her first-year courses in retail management at Ryerson University, has already submitted 10 job applications.
"I have a part-time (retail) job now, but half of the people have had their hours cut. It is really competitive out there. I would be in big trouble if I can’t find a full-time job this summer to pay for my tuition and books. It is so expensive to live in the city," said the Sarnia native, who is spending her summer in Toronto payday cash loan. "We all are looking for jobs and struggling."
Cheri DiNovo, MPP for Parkdale-High Park and NDP employment standards critic, called the announcement a "sweetener that goes with some nasty medicines," given the province’s recent cutbacks on grants and textbook allowance.
"This is better than nothing, but it’s hard to be enthusiastic about it," said DiNovo, adding that most of the summer positions created are likely low-end jobs and students would have preferred a reduction in tuition fees.
The Ontario Restaurant Hotel & Motel Association, representing 11,000 businesses, said, however, the expanded wage subsidy will help the struggling hospitality industry.
"The industry is the largest employer of youth. Increasing labour costs at a time of weak consumer spending is proving to be a barrier to the employment chances of many young people," noted the trade group’s president and CEO Tony Elenis.
While the investment is good news for many college and university students, Shelley Melanson, chair of the 300,000-member Canadian Federation of Students Ontario, said the government must also freeze escalating post-secondary tuition fees to make higher education accessible and affordable.
"The money students are earning is being eaten up by tuition increases … In a recession, with around 70 per cent of jobs requiring post-secondary education, it is great to see more (job) opportunities, but we also have to be able to access education to get employment," Melanson said yesterday.
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