With jobs harder to come by and AI disrupting entrepreneurship, times are challenging
For most Canadians, earning a living has always played a key role in their financial security, but as technology forces a new industrial revolution, career paths are increasingly less certain.
While some young people will inherit enough wealth to never be too concerned about the state of the labour market, or possibly even the business landscape, the majority are entering adulthood with some very real challenges ahead.
Youth unemployment is rising along with the cost of education, while technology is impacting career prospects and adding uncertainty to industries that may once have been considered ripe for young entrepreneurs.
A new survey from Simplii Financial highlights the financial concerns of Canadians aged 18-25 years old planning to be in full time or part time post-secondary schooling from this month. Less than half of respondents feel confident that they can find a job in the current environment and only around half think their education has prepared them for the workforce.
"In an already tough Canadian labour market, younger workers and new graduates are facing some of the biggest challenges finding employment," says Ali Jaffery, CIBC economist, speaking on behalf of Simplii. "Youth unemployment is close to 15%, compared to the 10-11% during more normal times, and young people are caught between cautious businesses pulling back on hiring and stiff competition for those fewer opportunities."
Uncertainty may play a role in the nearly 60% of students who say they are considering further education, as well as the 57% who feel that living at home after graduation will be necessary. Additionally, one-third (33%) of students express regret over their choice of field of study.
For those carrying student debt, expectations often differ from reality. While most borrowers anticipate repaying their loans within one to six years, data from the Canadian Student Loan Program and OSAP indicate that the average repayment period is closer to 10 years.
A separate study by American Express Canada reveals that those young Canadians who decide to become entrepreneurs are concerned about the impact of AI on small businesses.
However, most are using AI tools for tasks including speeding up research, shaping business plans, and generating content. Most believe AI will play an important role in their future success.
“AI is giving entrepreneurs powerful new ways to innovate,” says Phanikar Yenamandra, vice president of customer marketing & engagement at Amex Canada. “But what stands out is how mindful they are in adopting it. They’re excited, but they’re also thinking carefully about how to use it to build businesses that last.”
