But Desjardins study reveals women still struggle in the workplace
A new study from Desjardins revealed that young, educated Canadians are earning more than in earlier generations. But women especially are facing deteriorating mental health and hurdles in the job market.
The report is the initial installment in a series that will examine how young Canadians are doing in the current economy.
"The narrative around how young people are faring tends to have a negative tone," said Randall Bartlett, senior director of Canadian economics for Desjardins and co-author of the report. "What we found in the data was a lot more room for optimism."
The analysis draws on recent census statistics that revealed the Canadian population is highly educated, with a higher percentage of its citizens having a post-secondary degree than any other G7 country. According to Desjardins, young Canadians are better educated than they were in the past, and they outperform several OECD nations in terms of the percentage of young people with bachelor's degrees and college certificates.
Bloomberg reports that this has an impact on wages since individuals who obtain a post-secondary degree often earn more money over the course of their lives. The analysis compares the salaries of Canadians who received their bachelor's degrees in 1991 and 2001.
According to the survey, the younger group had annual earnings that were several thousand dollars more than those who graduated a decade earlier, demonstrating that the value of education is increasing. Compared to earlier generations, more young people from lower-income households are pursuing post-secondary education, with enrolment rising by 10% for those in the top 20% and 28% for those in the bottom 20% of income earners. However, when young people transition from school to the workforce, they face substantial hurdles on the employment market.
While young people generally had severe declines in their mental health during the pandemic, young women were already experiencing deteriorating mental health before the global outbreak even began. Women continue to bear a disproportionate amount of the responsibility for caring for a child or a member of the family.
"If you look at adults ages 25 to 44, women report caring for children as the primary reason for working part-time, while it barely registers for men the same age," the report said.
The salary disparity between men and women may be explained by the possibility of reduced earnings from working fewer hours or getting out the workforce. The employment situation for young immigrants is improving, but many still have trouble using their abilities. These results have ramifications for Canadian policymakers, according to Jimmy Jean, chief economist at Desjardins and the main author of the paper.
The first is how very significant subsidised childcare programs may be in assisting women to re-enter the workforce. More women have entered the workforce in Quebec over the past 20 years because of the province's subsidised day-care system.
With a goal of providing day-care that costs, on average, $10 per day, Jean said the federal government's pursuit of a national childcare program is a smart place to start.
"(But) it needs to be made widely and easily accessible, without having to go through the long waiting time. So, the execution of it will be crucial going forward," he said.
As poor mental health may hinder young people's capacity to effectively move into the job, addressing it would also be a "very worthwhile investment," he added.
The other issue for politicians, according to Jean, is how to make it simpler for immigrants to have their qualifications from other countries acknowledged. Various governments in Canada are taking steps to make credential recognition easier, notably for healthcare workers, as a result of a manpower shortage.
