Government spending won’t help youth unemployment

Youth unemployment remains high in Canada – 13.3 per cent according to the latest jobs report – and left-wing politicians, pundits, and activists are prescribing the same treatment as they do for all economic problems: more government spending.

However, as bad as youth unemployment is, young workers face a far larger problem: public debt. Many provincial governments – led once again by Ontario’s – will be increasing the tax burden on the next generation of workers by running massive budget deficits in the upcoming fiscal year.Meanwhile, the federal government has finally balanced the budget after running seven consecutive deficits and increasing the national debt to over $600 billion. The last thing the next generation of taxpayers needs is higher government spending and more public debt – even if the money is spent on programs designed to reduce youth unemployment.

  • Chris

    Youth unemployment is so high because the minimum wage retail and customer service jobs that were traditionally filled by high school and post-secondary kids are being taken by adults who don’t have any other options.

    • jayme

      Not really true there are so many jobs in Ottawa for example that is begging for workers.

    • kkruger71

      I agree that is an element of it, though not huge. A lot of “youth” do seem to feel that certain jobs are beneath them after having been taught from a young age that they are unique snowflakes that deserve the best, or that going to university means they automatically get to jump the line and never have to work low-end jobs.

      Unfortunately even those that don’t go to university and in the past would have worked manual labour have seen these jobs disappear. Not just the ones that have closed up shop, but the factories that do still operate never seem to hire, rather they use an ever-cycling workforce through temp agencies. As much as I hate government interference in private businesses, I really think the labour laws in relation to temp agencies need to be examined and changed, I believe they have an even stronger negative influence on unemployment than the temporary foreign workers program.

  • ProgNorth

    “We’ll give you $10 now. You give us $50 later”.

  • ontario john

    At least young people in Alberta can look forward to lots of government jobs in Alberta. The CBC is excited that Canada’s largest resource development company is suspending plans for further expansion there because of the new NDP government. Perhaps they can build wind turbines. It sure works in Ontario.

  • G

    Depends on how you define youth. The definition keeps inching older and older every year.

  • Maxsteele

    The main cause of youth and low skill worker unemployment is minimum wage laws.
    Give employers the option to hire people at a wage they are worth and you will see this statistic change. We are living this very basic and obvious economic reality in the USA states that have recently increased their minimum wage. Unions are scurrying for exemptions, when they were the ones who supported the increase, and automation now becomes more economically attractive to replace workers. If you do not see this you are blind and/or an ignoramus.