Youth unemployment is highest since 2012. What will it take to fix it?

A new report is warning youth unemployment has reached a "troubling" high, hitting a level not seen since 2012, and it could cost the Canadian economy billions in the next decade.

A new report is warning youth unemployment has reached a “troubling” high, hitting a level not seen since 2012, and it could cost the Canadian economy billions in the next decade.

The report by Deloitte, commissioned by The King’s Trust Canada, a national youth charity founded by King Charles III when he was Prince of Wales, noted youth unemployment hit 14.5 per cent in August — the highest since 2012.

Failure to address the issue could cost the country $18.5 billion in real GDP growth by 2024, it found.

“The report is troubling on several levels,” Farah Mohamed, CEO of the King’s Trust Canada, said in an interview. “What it comes down to is I think we really have to understand that if we do not invest in young people, if we do not create pathways to employment, how is this country going to be competitive, how are we going to be productive?”

According to Mohamed, citing the report, if action isn’t taken on youth unemployment, the government could lose out on $5.3 billion in net revenue in the course of the next 10 years.

This age group also sees unemployment at a much higher level, with the 14.5 per cent seen in August double the 6.6 per cent for the general working-age population that same month.

Timothy Lang, president and CEO of Youth Employment Services YES in Toronto, told Global News in the more than 50 years of his organization this has rarely changed and there are factors behind it.

“Youth unemployment is always double or triple, partially because of stiffer competition with adults who hold jobs,” he said. “Sometimes the young people aren’t even aware of what to look for or they need to reskill.”