A person walks past a TD Bank sign in the financial district in Toronto on Tuesday, Sept. 20, 2022. According to a new report from TD Economics, recent graduates entering the job market during high unemployment may see a lasting impact on their earnings, especially for younger and inexperienced workers. THE CANADIAN PRESS/Alex Lupul
TORONTO – According to a new report from TD Economics, recent graduates entering the job market during high unemployment may see a lasting impact on their earnings, especially for younger and inexperienced workers.
The report says first jobs are an important rung in the career ladder, but those graduating into an economic downturn are likely to feel long-term effects on earnings.
Graduates joining the workforce during economic downturns tend to earn around nine per cent less annually than their peers who graduated in better economic climates for around a decade.
The report says women and visible minorities tend to draw the short stick during economic downturns, adding to the obstacles they face in the labour market even in good times.
The report adds that the unemployment rate for racialized Canadians aged 25 to 54 increased by 1.1 percentage points in the last year, in part because they tend to be newer to the country, with less social capital and less job-specific experience.
TD Economics suggests work-integrated learning programs involving skills like networking, problem-solving and data analysis can increase the likelihood of being hired for recent graduates and improve their earnings long-term.
This report by The Canadian Press was first published Feb. 1, 2024.
Companies in this story: (TSX: TD)
