Yes.
Evidence of meeting #24 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was young.
A recording is available from Parliament.
Evidence of meeting #24 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was young.
A recording is available from Parliament.
5 p.m.
Associate Professor, Department of Economics, Wilfrid Laurier University, As an Individual
Yes.
5 p.m.
Conservative
The Chair Conservative James Rajotte
In my time remaining, I will ask Mr. Poschmann a question.
You mentioned aboriginal youth. We have not yet really had an opportunity to talk at length in this committee session—I know you wanted to mention it, but your presentation unfortunately had to be cut short—about what the committee should be looking at by way of policies designed to engage them better.
5 p.m.
Vice-President, Research, C.D. Howe Institute
Thank you, Mr. Chairman, for the question and the opportunity.
It's pretty straightforward. It's very much the same menu we have prescribed for youth in any other jurisdiction, but the power to effect it, to achieve change, is slightly different.
The bottom line is that on reserve—and to some extent off but mostly on—we have very poor rates of public school graduation, even disastrous rates of high school completion, and low levels of literacy and numeracy. These absolutely doom you in the future workspace. It is a big problem for Canada as the population grows.
5 p.m.
Conservative
The Chair Conservative James Rajotte
I appreciate that.
Professor Schirle, have you done any research in that area? Do you want to comment on the issue?
5 p.m.
Associate Professor, Department of Economics, Wilfrid Laurier University, As an Individual
I haven't done a lot of specific work on it, so I have nothing to add.
5 p.m.
Conservative
The Chair Conservative James Rajotte
Okay.
Does anyone else want to add concerning engaging aboriginal youth?
5 p.m.
Senior Economist, Canadian Centre for Policy Alternatives
In our 2014 version of the alternative federal budget, a participatory budgeting process that the CCPA provides the secretariat, there is a chapter on aboriginal youth—I would really recommend it and I can certainly provide it to the clerk of the committee—dealing with things you can do to address this numeracy-literacy-educational completion issue, and also with how economic growth in the north can be brokered so that more of the benefits flow to first nation communities.
5 p.m.
Conservative
The Chair Conservative James Rajotte
One thing that certain industries and certain companies have done is mandate that a certain percentage of the work, in terms of actual job numbers and in terms of the contracts, must be done by aboriginal communities and by aboriginal companies and workers. I suspect that's part of the recommendation.
5 p.m.
Senior Economist, Canadian Centre for Policy Alternatives
I don't know the extent to which IBAs—they are benefit agreements that are negotiated with the first nation community in question and the company.... The bargaining power is often not native, if you will. So there's a lot of education to be done there too. We're dealing with Davids who are negotiating with Goliaths, in many cases.
There's plenty of experience to draw on, but I think the federal government would play a really strong role in offering a secretariat function to those communities, should they wish to draw on it .
5:05 p.m.
Vice-President, Research, C.D. Howe Institute
Only so much of this is within federal control, and that's a big issue on reserve. It's the same with apprenticeships. There are differing apprenticeship rules across provinces, a situation that limits labour mobility among youth. It's not easy for the federal government to change, but certainly we have levers we can use on the provinces in the search for standardization.
It's going to be a big deal as well over time, as we try to build up the skill levels of youth.
5:05 p.m.
Vice-President, Research, C.D. Howe Institute
I point out that the apprenticeship rules of course are mostly set by the trades and the colleges of trades.
5:05 p.m.
Conservative
The Chair Conservative James Rajotte
Thank you. I appreciate that.
We are now going to go to Mr. Brison, please.
5:05 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
Mr. Antunes, you've said that you are one of the 42% of Canadian families who have provided extended periods of free rent to their adult children. There is some evidence to suggest, judging by discussions I've had with some economists, including bank economists, that there has been a significant increase in the direct financial support of young adults by families.
Is this one of the driving factors of higher levels of family debt in Canada? Is this one of the factors that is driving record levels of personal debt?
5:05 p.m.
Executive Director and Deputy Chief Economist, Conference Board of Canada
I don't think so. I think the indebtedness issue is clearly tied to a long period of very low financing rates and essentially to people taking on a lot of housing debt in purchasing homes.
The issue of the youth staying at home is directly in line with the fact that they are having trouble finding work. Essentially we have seen employment rates for the youth well below where they were in 2007-08, for example, before the recession.
If you are asking me whether I think the debt issue is a concern, our sense is that right now we are seeing very low debt-financing costs in historical terms. Debt financing as a share of disposable income is roughly 6% or 7%, and that's a fairly low level.
We are concerned about what rising rates, when they come, will mean for household spending and disposable income.
5:05 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
Student debt hasn't increased significantly over the last while, yet there is more financial support. Isn't it intuitive that a significant part of family debt is attributed to the support being provided to young people?
5:05 p.m.
Executive Director and Deputy Chief Economist, Conference Board of Canada
Yes, I'm not quite sure what's driving that particular component. I can only speculate that may be the case, that they're staying closer to home and able to not take on as much debt perhaps—
5:05 p.m.
Executive Director and Deputy Chief Economist, Conference Board of Canada
—or they can't afford to take on an apartment.
5:05 p.m.
Liberal
Scott Brison Liberal Kings—Hants, NS
That's another issue. The price of housing has become very high in certain regions.
I have a question on unpaid internships. Is there a risk of deepening inequality of opportunity as those families who can afford for their young people to work in an unpaid environment, getting job skills but no pay, may end up having an advantage over other young people and families who simply cannot afford to subsidize young people who aren't working?
5:05 p.m.
Senior Economist, Canadian Centre for Policy Alternatives
You're looking at me. Are you asking me?