Good afternoon. My name is Yolen. I'm the vice-president equity and president-elect of the University of Toronto Students' Union. I, like most students at the University of Toronto and our peers across the country, opted to pursue higher education in the belief that our initiative, hard work, and financial investment would lead to well-paying, secure jobs that would allow us to repay our loans. That is no longer the case.
During the recession, youth unemployment peaked at more than 15% and hasn't changed much since. Recent figures place it at about 14%, double the national rate. If this number accounted for those who are underemployed or in precarious work with part-time, temporary, and contract jobs with lower wages and few to no benefits, it would double to about 28%. Of jobs created between 2008 and 2013, 72% fall into the precarious category, which leaves Canada ranked 17th among OECD countries for the proportion of people who are precariously employed
As our tuition increases, the financial value of our investment seemingly decreases. An undergraduate degree on average provides a 30% earnings premium over a high school degree, but in the last decade, degree holder wages have increased by 8% while high school and college diploma wages have increased by 13%. With increasing debt and fewer good job options, young Canadians are in crisis, and many who are desperate for employment are forced to consider working for free.
It is now believed that as many as 300,000 young Canadians each year are forced to take on unpaid internships, an extreme form of precarious work. Regulations vary based on jurisdictions, and there is poor enforcement of what little regulation is in place, making these positions especially precarious and prone to abuse.
Although many students are aware that they are being exploited, they find it difficult to come forward to report incidents because of the fear of being blacklisted. In Ontario and at the University of Toronto Students' Union we have been working towards pressuring the provincial government to enforce a six-step process, as outlined in the Employment Standards Act, to ensure that students are not being taken advantage of. We've been able to work with Yasir Naqvi, the Minister of Labour, to ensure that interns are better covered under provincial legislation.
However, this is not just a provincial issue. It is a national issue, and a growing issue at that. The case of Andrew Ferguson in Alberta was mentioned; he was a student who died after driving home from his unpaid internship.
Another example is an unpaid bus person internship at Vancouver's Fairmont Waterfront Hotel. Unpaid internships favour those without student debt and those who come from higher income backgrounds. Those who cannot afford to work for free lose out on networking opportunities, can suffer from skills degradation, and often can have their skills fall behind innovation, making it more difficult to enter their field, if given the opportunity.
There have been numerous cases in which unpaid internships offer little benefit to students while providing a service to an employer who would otherwise pay for the position. Unpaid internships are unfair for students, and changes need to be made. We are calling on the federal government to take a leadership role in addressing the national youth employment crisis.
For these reasons, we ask that the government take the following measures. First, develop a national strategy to address youth unemployment, underemployment, and unpaid internships, and that includes as a first step collecting relevant employment data on recent graduates. Second, restore funding to the Canada summer jobs grants program. Third, eliminate the practice of unpaid internships within government and federally regulated companies; I think it's important for the federal government to take the leadership in this instance. Fourth, work with the provinces to create employment standards for precarious work in internships, as well as to increase the ability to enforce the standards.
Youth are not the future of the economy; we are part of it now. We need the government to take action today to ensure that we are able to fully participate in the labour market.
Thank you for inviting me to speak today. I and my colleague Najiba will be happy to take any questions.