Canada’s population is aging, with a growing number of workers reaching retirement age. Our prosperity depends on supporting Canadian youth to reach their full potential in the workforce and ensuring they aren’t left behind in the long term.
Economic shocks, such as those created by COVID-19, leave well-documented lasting impacts on young people.These impacts, known as labour market scarring, are shaped and amplified by discrimination, personal circumstances, and context beyond the job market.The impacts of long-term labour market scarring include:
Typical policy responses address the immediate, short-term impacts of economic shocks. A more concerted and coherent policy response is warranted to prevent long-term scarring and minimize its impact on youth and broader productivity and growth.
Century Initiative’s latest Key Insight report, developed with support from the Future Skills Centre, examines the unique social and economic effects of shocks on young people. The report investigates how deep the issue goes, identifies existing policy gaps, and recommends 13 specific, actionable policy responses to mitigate the harms of long-term labour market scarring on youth.