Graduates: The New At-Risk Group?

Graduates: The New At-Risk Group? Donnalee Belland Krista Benes

Session Outline • What’s the concern for today’s graduates? • PINEs • Underemployment • Highlight some of the initiatives working to get grads working • Look at the recommendations from the Research • Give you a chance to discuss and share with each other and us your perspectives on career development for young graduates today

Poorly Integrated New Entrants (PINEs) • Who are They? • According to OECD (2010): • Youth with qualifications (diplomas or degrees) • Stuck in temporary work, unemployment or inactivity even in times of economic growth

PINEs: Why are they a concern? • Global PINE growth in Europe and US • Worst countries – (as of 2007) Spain, Finland, Portugal, France • Canada in the middle of the pack slightly below OECD average • Represent 23% of non-student Canadian Youth (18-31) (2009) or 9% of the total 18-31 population • Particularly vulnerable during recessions • PINEs get stuck! Source: LaRochelle-Côté, “Employment instability among younger workers,” Stats Canada, Feb. 2013.

Today’s Labour Market Forecast - Foggy “UN Warns of Lost Generation as Youth Unemployment Climbs” Globe and Mail. May 8, 2013. “The Youth Unemployment Crisis That Isn’t” Edmonton Journal. April 28, 2014 “Here’s proof graduates aren’t an underemployed ‘lost generation’ Globe and Mail. April 7, 2014

The B.A.rista Generation In Canada • Under-employment number 2nd highest in OECD since 2005 • 1 in 4 – the ratio of young people with university degrees who worked in “low-skilled” jobs in 2012 • 40% of food and beverage servers and 45% of retail salespersons (age d 25-54) in Ontario hold a university or college degree • The earnings gap between high school grads and those with a university bachelor’s degree is narrowing. Sources: World Economic Forum; Statistics Canada study – “Unemployment Dynamics Among Canada’s Youth”

The Unemployment Gap between Youth and Adults is Also Widening

This is a World Wide Phenomenon

What is Happening? An Hourglass Labour Market Lack of Career Education, Services and Safety Nets The Education-Labour Market Disconnect

The Hourglass Labour Market Growth of knowledge worker jobs and entry level jobs Career progression has fundamentally changed Glut of PSE graduate raises the credential level of both poles Youth getting stuck in service sector jobs they work in during school Need for career management skills to maneuver in this labour market Chart 1: Ontario Job Distribution by Skill Categories, Ontario 1991-2006 (Zizys, 2011, 27) Source: Zizys, 2011; Stats Canada, April 2014.

Lack of Career Education/Service and Safety Nets Lack of consistency Vulnerability to government funding priorities Youth specific service is dwindling Research confirms the need for high-quality career guidance = 1. highly qualified professionals; 2. timely and accessible local LMI

The Education-Labour Market Disconnect Too many youth with the same qualification Over-qualification of the entry level PSE institutions that are not making the link to the labour market Employers not investing in the training of youth or their youth hires Sources: Macdonald, 2011; Versnel, 2011; Taylor 2010 and 2007

School-to-Work Transitions: What’s Working? • Early Intervention Strategies • Post-Graduation Strategies • Demand-side Strategies • Strategies for Diverse Groups

Early Integration Strategies • Career service delivery in advance of graduation that includes: • Work experience, • Career management skills training, • Clear information on pathways to the labour market • Career planning that helps youth be intentional with their careers • Canada’s approach in this area is fragmented

Options and Opportunities Program (O2) • Built on Community Learning Partnerships • Integrated Career and Education Planning • Skills for the Workplace • Flexible Design and Delivery • Academy Model • Expanded Course Options • Connecting with Families

Post Graduation Strategies • Includes: • graduate guarantee programs • subsidies and supports for entrepreneurs • graduate databases • graduate access to income support • work experiences (internships)

www.TalentEgg.caHatching Student and Grad Careers Online resource for students and recent graduates to help them access work commensurate with their education Includes a job search tool, employer profiles, initiatives like career guides to occupational sectors and a Questions and Answer section Includes video interviews, blogs and discussion forums from graduates about their job search and work experiences after graduation

Diversity Strategies Initiatives that target specific populations of young students and/or graduates who may be at risk of poor labour market attachment or who are more effectively served by population specific initiatives

The Aboriginal Youth Work Exchange Program (Ontario) Program to support diversity recruitment issues within the organization Recognition that programs need to include the young person’s community in the process

Demand-Side Strategies • Includes: • Wage subsidies and subsidies to accommodate apprentices • Employer partnerships with education • Outreach to employers to participate in early and post-graduation programs

Innovation Assistant (Finland) • Strategy keep highly educated graduates in their home rural communities • Connect students to work commensurate with their education • Focus on increasing the competitiveness of SMEs • Program has 2 month career development training and 6 months of job training with a local employer • Wage subsidies/participant allowances are provided • 75% are employed in the local community • Employers have moved from tentative participation to full engagement in 3 years.

Recommendations National School-to-Work Policy Research Education and Service Delivery Reform Balancing the Approach Targeting Both the Supply and Demand Side

Discussion In your opinion, is flying by the seat of you pants an this labour market an option? Why or Why not? What demand and supply side programs or policies do you know about that are helping PINEs? What can career development practitioners do to balance the focus from the supply to the demand? What policy or programs recommendations would you make to help PINEs that are not in place now in your community?

Literature Review and Research Report on PINEs is available at: www.ccdf.ca

Graduates: The New At-Risk Group?