Creating Win-Win Solutions
for Youth Unemployment
By Sevaun Palvetzian
In Canada, over 500,000 youth are not
in education, employment or training
(NEET). In the Toronto region, the
number comes to over 80,000 for youth
aged 15 to 24. These young people are effectively
in limbo, and the reasons may
include barriers like socio-economic status,
demographic background or personal
circumstances that prevent them from entering
the job market. Early joblessness
can lead to reduced confidence, lack of
hope and long-term financial instability.
The government can’t solve this problem
alone. Employers can help close the
gap, and doing so can address their own
labour needs, creating a win-win solution
for both employers and youth who need
jobs. According to CivicAction’s 2014 report
released with the launch of Escalator,
hiring barriered youth can present numerous
benefits to employers, including
reduced labour, training and talent pipeline
costs associated with hiring dedicated
employees at the entry level and then developing
them. Tapping into diverse pools
of young talent can offer real competitive
advantage by reflecting a broad customer
base. And showing a commitment to
youth opportunity and corporate social responsibility
can help enhance brand image
and deepen employee engagement.
Often, employers may be willing to create
opportunities for youth, but may not
have concrete ideas on where to start.
By uncovering best practices from real
employers that can be replicated across industries,
companies can learn from each
other and identify tips and lessons that
would be useful in the field. Starbucks
Canada, for example, is showing a commitment
to hiring young people who have
faced various barriers to employment, by
signing the City of Toronto’s pledge to
commit 10 per cent of their new store hires
to Opportunity Youth. Through working
with a City of Toronto program that helps
unemployed youth, they have found that
they are recruiting motivated young people
they would not normally have access
to. There is a great opportunity to build up
Canadian expertise on removing barriers,
both formal and informal, within the recruiting,
hiring and developing process in
order to ensure success for both employer
and youth employees.
There is a price to inaction. According
to U.S. figures, when young people don’t
get connected to a positive career pathway,
the cost to society is an estimated
$1 million per youth over the course of
their lifetime. At a time when employers
in some sectors report difficulty filling
and maintaining entry-level roles, there is
real need for HR strategies that can make
a difference. Luckily, HR leaders can play
a key role in moving the needle for youth
in Canada, especially those who are facing
multiple barriers. Together, HR leaders,
their organizations and government can
work together to help ensure that young
people are able to thrive and contribute to
society. n
Sevaun Palvetzian is CEO of CivicAction.
For more information about initiatives
to solve youth unemployment, visit
www.civicaction.ca.
the last word
Lasse Kristensen/Shutterstockc.om
48 ❚ MARCH/APRIL 2016 ❚ HR PROFESSIONAL