Mr. Speaker, the problem of youth unemployment has been one of the more persistent difficulties in Canada in recent times. Though I have problems with the motion before us, I commend the member for his attention to a very pressing need in our country.
I want to begin by saying that my overall concern with the motion introduced by my colleague from the Progressive Conservative Party is that it seems to share the Liberal Party assumption that the problem of youth unemployment can be fixed by improved government programs.
Whether we are talking about increasing the size of government programs or merely restructuring and re-focusing those programs, the motion as it stands assumes that specific government programs are the answer rather than focusing on government policies across a much broader front, policies that would create an environment in which the problem could be solved by young people, by educational institutions and by employers themselves.
That such a broader view of this problem is needed was confirmed last week by the study entitled “Hire Expectations”, released September 30 by the Canadian Federation of Independent Business. In that survey young people did not view government programs as the key to solving this problem. This was from the mouths of the young people themselves. They did not regard government programs as the key.
On the contrary, of the various groups regarded as being responsible for addressing the youth employment issue, government ranked lower than the self-reliance of youth themselves, the efforts of schools and also behind job referrals from family and friends. In other words, job help by way of government programs was way down on the list.
The majority of youth surveyed, almost 60%, said that finding work is primarily their own responsibility. Less than 10% of the respondents said that it is the government's responsibility to make sure they have work.
The point is not that students should be left to fend for themselves, but rather that our students are smart enough to know that direct intervention by the government as urged by the present motion is not the answer.
These young people in this extensive study were clearly saying that they do not expect the government to be directly—and I underline that word—involved in the job creation or job search process. Rather, in their view the government's task is to create an environment in which young people have the best chance possible of finding meaningful work.
Most Canadians would say that the government has failed on this score. As the authors of the study “Hire Expectations” put it, “Despite numerous programs targeting young workers, youth employment rates have not significantly dropped in the last 20 years, which suggests the need for new approaches to the issue”.
Where should the government focus its approach? The government needs to lower payroll taxes, as a beginning, on small business and create a more tax friendly environment for small and medium size businesses. Incidentally, a reduction in employment insurance premiums would be a good place to start. Instead of raiding the EI surplus, as the Minister of Finance has intended to do, a reduction for these small businesses would be of great assistance to the problem of youth employment.
The study also revealed a genuine willingness on the part of small businesses to hire young people. Business owners emphasized that they were not looking simply for skills, but also for enthusiasm and a willingness to learn. This willingness to hire young people is especially true of new firms which are likely to have twice the proportion of young employees compared to older businesses.
I believe that tells us something very significant. It tells us that if the government could bring itself to create an environment in which business start-ups are attractive, this would have a tremendous positive effect upon employment opportunities for youth.
But 40% of these small businesses also said that payroll taxes, which are a barrier to hiring, are far too high. Small business is not presently confident that the government is intent on lowering the costs associated with hiring someone. They do not believe there is any genuine effort to do that.
That is what the study “Hire Expectations” had to say about the broader economic environment in which jobs are created for young people. It also had some needed advice for governments. At the most basic level this study warned that government should avoid make-work programs. Such schemes, they said, affect only a small minority of youth and have more political value than actual substantive value for young Canadians looking for work.
The level at which government has a genuine contribution to make is in the role of facilitator, encouraging communication among educators, employers and youth. I want to emphasize again in the context of the present discussion that this must-read study, “Higher Expectations”, urges greater facilitation by government, not direct intervention by government.
A good example of an area in which facilitation is needed is in the area of education. The study revealed a lack of interaction between schools and businesses, and youth feel that school does not prepare them for the transition into the workplace. They report experiencing a form of culture shock when they begin their working life. They indicated that they wanted a better understanding of the workplace before they leave school, university or college. This suggests that a greater role could and should be played by co-op education in Canada. We could talk about apprenticeship programs as well.
Co-op education and other kinds of measures have proven to be an effective means of smoothing the transition from school to the workplace.
While I cannot support the motion as stated, I thank the member for raising this very important issue in the House.
