The economic outlook for recent graduates is not great. Canada's youth unemployment rate hit a historic high in May. If the trend continues throughout the year, young people could end up losing quite a bit of money.
According to a July study by Statistics Canada, unemployment among people from ages 15 to 24 increased by over 19% from February to May, when the number reached 29.4%.
If this trend continues throughout the rest of 2020, and results in a historically high 28% annual youth unemployment rate, then high school, college, and university graduates could expect to lose anywhere from $23,000 to $44,000 over the next five years.
That's an annual loss of $4,600 to $8,800.
Female graduates are more likely to lose a greater portion of their income, according to the study.
If the youth unemployment rate does reach 28%, they could stand to lose $43,674 over five years, compared to $27,887 among male grads.
The report notes, however, that the historical high for youth unemployment was 19.2% in 1983, and losses would be more moderate if this year's rate is closer to that.
Graduates would only be losing $1,600 to $3,000 per year if it hits 19%.
Did you graduate this year? Our new study presents estimates of the cumulative earnings losses this year’s graduati… https://t.co/OhJPLh7fmZ— Statistics Canada (@Statistics Canada)1595940311.0
If there is a significant recovery this year, and youth unemployment hits a high of 16%, then graduates across the board will only be looking at a roughly $1,200 yearly loss, regardless of education level.
Students who have been unable to find work over the summer have been receiving assistance from the government in a number of ways.
The CESB, like the CERB provided unemployed students with monthly benefit payments. They received $1250 a month, while students with disabilities and dependents received $1750.
The Canada summer job program also offered opportunities to young people who could find jobs in fields that required more workers due to the current pandemic.