Good afternoon. My name is Abdul Abbasi. I'm here on behalf of the Canadian Alliance of Student Associations, or CASA for short. We represent more than 410,000 post-secondary students across Canada. I also serve as the vice-president, external, for the University of Alberta Students' Union. Thank you for the opportunity to appear today.
This committee has heard from a range of stakeholders on the rise in youth unemployment. I would like to highlight how this crisis is particularly affecting post-secondary students. This past summer, we saw the highest unemployment rate for students since 1999, excluding the COVID years. While the long-term benefits of post-secondary education remain clear, we're increasingly concerned about the short-term employment challenges students face.
Post-secondary graduates experience low unemployment in their prime working years, with unemployment among 25- to 29-year-olds being approximately 40% lower for college and university graduates than those with a high school diploma, but we are finding that it is work during study and immediately after graduation that students are struggling with the most. The unemployment rate for 15- to 24-year-olds is roughly twice as high as core age employment. Our focus is on identifying targeted measures to support this vulnerable group at a critical point in their educational and professional journeys.
Other witnesses before this committee have highlighted a skills mismatch. We believe it is less that the wrong skills are being taught; rather, employers expect a more complete skill set, including having workplace experience. From what we have heard—ask any student, and they will also tell you—entry-level positions frequently require prior experience, making it increasingly difficult to get a foot in the door.
CASA understands the position that employers are in. We think a large factor in this year's rise in youth unemployment is due to a rise in business uncertainty, linked largely with geopolitical risk. For many businesses, short-term positions are the easiest to eliminate in times of economic uncertainty, especially when training investments made during a two- or four-month summer job or co-op position won't remain at a company, but these short-term hires are essential for building the skills that employers expect for early-career workers. When these opportunities are limited, it not only affects individual career trajectories; it also poses a risk to Canada's long-term economic competitiveness. It is generally understood that employers will underinvest in training relative to the economic optimum.
CASA believes that to address the student unemployment crisis, work-integrated learning is critical. Getting students entry-level experience is something that will require economic incentive to reduce employers' perceived risks.
In its platform, the current government committed to provide funding for youth employment programs, including the student work placement program, or SWPP. We know that SWPP is an excellent tool to promote high-quality work-integrated learning placement and has added flexibility to provide opportunities outside of just the summer. In fact, an evaluation of SWPP in 2022 found 95% satisfaction with the program for both students and employers. While the program in 2023-24 was supporting about 60,000 young students annually, it has shrunk to 40,000 this year. That does not help in addressing the unemployment crisis. We therefore would like to see longer-term commitments to funding for 60,000 positions. We believe greater predictability in funding will be welcomed by businesses that rely on the program to support talent development and workforce planning.
Work-integrated learning is a chance to improve educational quality and workforce preparedness. Students are gaining skills that will increase their future employability, and they are earning while they learn. Employment helps students afford essentials like tuition and rent. Around a quarter of students struggle to pay rent. Half say they skip meals to make ends meet. Providing students with paying positions is one way to reduce this hardship. An assessment of SWPP participants by the Information and Communications Technology Council in 2023 found that students received significantly more in income than their next best employment option, and employers gained net value from the program despite their required wage contribution to the students.
This is just one of the tools we see at the government's disposal to build a higher-skilled and productive workforce, but it is an important one.
We look forward to a wider-ranging discussion and your questions.
Thank you.