23 Feb 2011

Sample Essay: Causes of High Unemployment Rate Among Young People

The most recentsis continues to take its toll, and according to the International Labour Organization, young workers aged 18 to 35 years old may have been the hardest hit – resulting in a compelling rise in the population of unemployed young people all over the world (Moody, 2010). In a report published by the ILO entitled “Global Employment Trends for Youth,” the United Nations agency disclosed that by the end of 2009, there have been 81 million unemployed young people world-wide. This high unemployment rate “typically hovers around roughly double” the normal rate for the general global population (CBC News, 2010). Canada is no ex global economic criception. According to Statistics Canada, national unemployment rate was at 8.2% as of March 2010; and among youths, the rate escalated to 15.6% (CBC News, 2010). The Depository Services Program of the Canadian government points out that youth unemployment relative to that of adults is at a worse level since the country’s 1990-1991 recession (DSP, 2011). Closer scrutiny will reveal that the main causes for these dismal numbers are lack of skills; frictional unemployment; and minimum wages.

One of the most pressing needs for employers is a shortage in employee skills. Emerging evidence culled from the labour market implies that a good number of industries are confronted with a serious shortage of “high-skilled technical and non-technical workers” (OAYEC, 2003, p. 5). As the “Baby Boom” generation reaches retirement age, the current knowledge-based economy continues to demand a more highly-skilled labour force and the more recent concerns pertain to not having the sufficient number of workers who possess the required skills-set to match. A positive development in Canada is that the youth are generally staying in school much longer, and pursuing higher education that will be expected to meet the skill requirement for many industries (OAYEC, 2003, P. 5-6). For now, the dilemma is that a lot of young people find themselves marginalized from the labour market, mainly because the sill they have are not in demand, or simply because they do not have the required skills.

Participants in the labour market move in a very dynamic environment and the usually require time before they finally understand their objectives. In light of this, it is not therefore surprising that unemployed individuals and job vacancies do not co-exist. The reason for this is simply that fully-qualified unemployed people are yet to find job openings. This phenomenon is called frictionally unemployed. Job seekers collect information on available jobs, while employers go through a selection process from a line-up of candidates. Moreover, frictional unemployment has a high rate among young people because they have a low attachment to the labour force. More alternatives are available to them so, typically, they enter, withdraw and re-enter the labour market at will, more often. For instance, young people do not have the financial responsibilities like more adult workers and consequently, may elect to work for a while, then withdraw from the labour market – sometimes to travel perhaps or go back to school (ILO, 2010, pp. 9-10 and DSP, 2000).

Meanwhile, certain policies adopted by countries may exacerbate unemployment. One example of this in Canada is the minimum wage legislation. A minimum wage which “exceeds the competitively determined rate” will have a tendency to decrease the level of employment in a covered sector. To note, a covered sector refers to employees who are covered by minimum wage legislation (DSP, 2000). Thus, laws that mandate minimum wages for employees block the lowest skilled workers from the labour market – and this demographic is largely made up by young people. In order for an employer to justify a new hire, they need to calculate its costs: a new employee must be able to contribute more per hour than what they are actually being paid (Moody, 2010). Hence, less experienced young people with more or less the same qualifications will have to compete with more experienced adult workers for employment.


Global statistics show that the unemployment rates have escalated. It is alarming to note that the unemployment rate among young people, is typically double that of the general population. Three main reasons for this are lack of skills, frictional employment and minimum wages. In Canada, global trends are reflected in the country’s employment rate. A positive development in Canada is that students generally stay in school longer. This will be a great advantage in addressing the three causes of unemployment, which are largely associated with an individual’s skills-set.


CBC News. (2010). Youth unemployment skyrockets: OECD. Retrieved on 03 February 2011

from http://www.cbc.ca/money/story/2010/04/21/youth-unemployment-oecd.html

Depository Services Program. (2000). Youth Unemployment in Canada. Retrieved on

February 3, 2011 from http://dsp-psd.pwgsc.gc.ca/Collection-R/LoPBdP/CIR/824-e.htm

International Labour Organization. (2010). Global employment trends for the youth.

Retrieved on February 3, 2011 from http://www.ilo.org/wcmsp5/groups/public/—


Moody, Chris. (2010). Unemployment among young people way up; Does the minimum wage

play a part? Retrieved on February 3, 2011 from http://dailycaller.com/2010/08/15/


Ontario Association of Youth Employment Centers. (2003). Models of economic impact in a

skills shortage context. Retrieved on February 3, 2011 from


Filed under: Sample essays — Tags: , , — admin @ 3:37 pm

Sample Essay: The Unemployment Rate Among Young People

Nowadays, the number of young people that are unemployed has exploded significantly. Analysts believed that this scenario will bring negative impact to millions of young people upon losing their lifetime earning potential. Thus, this event holds the chance of many young people to take their transition of being productive citizens. There are reports that “the unemployment rate of 18 to 35 rose significantly” (CBC, 2011). Apparently, until now most cities have no clear economic recovery plan particularly in the creation and improvement of entry level jobs. This paper aims to explore on the factors that caused high unemployment among young people.

Causes of High Unemployment among Young People

Based on statistics, unemployment rate among young people has been steadily rising and analysts forecasted that this event will remain at its peak for the succeeding years. Thus, the ration of unemployment rate further increased during the recent recession and until now there is still no sign of slowing. It is prevalent among young people to receive temporary work contracts and most often they are the first to eject every time companies wish to reduce their people. Furthermore, many young people are often forced to work in sectors like construction and other related works wherein they are asked to spend larger amounts of time, with much physical tasks, and lower earnings. In the analysis, “one of the major contributory factors is the recession causing young people to have slimmer chance to find long term and stable jobs” (Kerr, 2011). Another distinct factor for this event is the insufficient support coming from the government to give emphasis on unemployment among young people, and assist them in finding work. There are also findings that significant numbers of young people are at risk due to poor educations and low skills. It seems that the government is lacking effective support to young people such as in giving apprenticeship programs. Furthermore, it shows that local economies are more centered on finding cheaper labor so majority of them tend to import people. Several analysts believed that rapid globalization created uncertainty and insecurity among countries with vulnerable situations considering that globalization will only open the way for much cheaper labor force and more experienced workers. Overall, many young people have to face stiff competition in finding stable jobs since most work opportunities are also being offered to wider applicants. Their chances of entering into a more stable work are lessened and as a result many young people failed to gain a firm foothold in the labor market. Most of the young people ended up in dead end jobs with limited protection, low paid jobs, and poor quality jobs. There are reports that many young people don’t have enough knowledge and skills which are necessary for social development and economic growth. It shows that many countries are lacking enough attention on education and training systems which are crucial in fostering the development among young people to succeed in labor market. In this context, schools and educational institutions have important roles in creating values that will prepare young people to adapt rapid changes in labor market and have competitive advantage. In the statistics, many young people are being affected by the rapid changes in labor market along with the obsolescence of their skills.


Overall, unemployment rate for many young people continue to rise considering that most educational institutions neglect to give further attention on values concerning lifelong learning (Kerr, 2011), business competitiveness, and continuing employability of workers. It shows that the government has crucial roles in assisting the young people to find stable work and giving them essential programs to further improve their competitiveness in the labor market.


CBC. Youth Unemployment. Retrieved February 3, 2011, from:


Kerr, Kevin. Youth Unemployment in Canada. Retrieved February 3, 2011, from:


Filed under: Sample essays — Tags: , , , , , — admin @ 3:16 pm
Place Your Order Now
Academic Writing Services:

Business / Professional Writing Services:

Free Essay Tips / Writing Guides:
100% Satisfaction Guarantee

We will revise your paper until you are completely satisfied. Moreover, you are free to request a different writer to rewrite your paper entirely, should you be unhappy with the writing style, level of research, communication, etc.

100% Authentic Research & Writing Guarantee

We guarantee that you will receive a fully authentic, 100% non-plagiarized work. Otherwise, we will just give you your money back.

100% Confidentiality & Privacy Guarantee

No one will ever find out that you have used our service. We guarantee that your personal information as well as any other data related to your order(s) will remain confidential to the extent allowed by law. It will not be shared with any third party unless you provide a written consent.