The Big Hiring Grant: Canada Summer Jobs
Eric Reynolds
Business Strategist & Grant Writer at INAC Services Limited | Finance | Marketing | Project Management | Export Development
Was Trudeau's Decision to Double the Program Successful?
On February 12th, Justin Trudeau announced that the amount of funding being put towards the Canada Summer Jobs Program would be doubled. This would result in roughly $300 million being added to the program over the next three years. The program aims to fund 50% of wages for students aged 15-29, hired to work in jobs that will enhance their career opportunities/make them more desirable employees. When the announcement was released, I wrote an article detailing the new changes to the program and was optimistic that perhaps Canada's youth would have easier times finding a job. As a recent graduate, I can understand that any help in securing employment is a welcome offer from any government. Although initially excited about the news, I now feel that perhaps the program was less than ideal for several reasons.
Before Trudeau's announcement to double Canada Summer Jobs' funding amounts, there were a number of different provincial programs that provided similar incentives to hire Canadian youth. Some of these programs are now gone. Although some provincial programs have been scrapped, they were generally less than ideal in comparison to Canada Summer Jobs, offering a $2/hour incentive opposed to 50% of a new employee's wages. Canada Summer Jobs offers more, but is a federal program which allows applicants from the entire country to access funding. This means that although you may receive up to 50%, you probably won't. As well, with all of the news coverage of Trudeau announcing his plans to double the money allocated to the program, and extension of the original deadline, there is no doubt that many more applied to the program than in the past. I believe that the news coverage and overall reach of the program caused a dilution of the funds resulting in few businesses receiving an actual 50% wage incentive.
Even if there was not enough funding to provide the 50% incentive to all businesses, you may think that overall, the subsidization of youth workers is still a very positive thing. In many cases, I would agree. However, Canada Summer Jobs is not sector specific, and does not seem to require that the young worker is working in a field that is related to their career goals. Many jobs for youth are entry-level and a "means to an end". The jobs I had when I was young include washing dishes, making coffee and booking campsites over the phone. I don't believe any of these particular jobs provided me with skills I needed to get to where I am going, but were simply just jobs- money that I needed to make for school. In fact, most of these entry level jobs is where I feel I was most disposable. Not one of my early jobs rewarded new ideas or personal development- it was generally grunt work without any incentive to want to build a career in the industry or enhance necessary skills. These are the jobs that young students get; jobs that allow for money in the Summer with the ability to quit in the Fall to return to studying. Why would a position be available for a student's schedule? Because it is a job that doesn't require long-term development, a job that most can do without experience, and a job that needs to be done by someone. That someone being in this case, the young student who needs money and has no experience who will work a non-skilled job.
Of course, it is great that students can get jobs easier, but does a company need an incentive to hire workers that need to be hired? Young students are already the ones working entry-level, non-skilled positions. So, companies who already rely on a student workforce, are getting government money to hire the types of employees they would be as per usual operation. Jobs that require very little training are being subsidized to “give young people the tools and the capacity to succeed,” (Globe and Mail). The companies looking to hire temporary workers are looking for students- why do they require money to hire workers they need? Why do companies that already make use of a student workforce need more money to hire the workforce they are used to hiring? Does this curb youth unemployment? Or just a way to make our government look good?
Canada Summer Jobs has its issues, but our government does offer other employment programs that I am less cynical of. Unfortunately, these programs have received less coverage, though they do exist across Canada. An example of an excellent hiring program is Career Focus. Career Focus offers different subsidies for different sectors, with grants covering 50% of wages, up to between $15,000 and $20,000. Career Focus maintains funding allocation to specific industries including apparel, bio-technologies, and food processing as well as requires the completion of performance measurements and strategies to assist the new employee in achieving their career goals. For students wishing to develop their skills in science and technology, there are programs such as the Science and Technology Internship, which offers $13,200 for companies to hire a student for a position that will help them secure employment in their chosen scientific field. The Science and Technology Internship estimates that 80% of its interns find meaningful employment after the program. Finally, as a non-sector specific program for hiring youth, there is Skill Link. Skill Link offers employers a 100% incentive, up to $25,000 for each young worker hired so long as the applicant company is hiring at least 8 people under 30 years of age. The program provides up to $5,000,000/year/business and looks to employ not only recent students, but at-risk youth as well.
It is not a question of whether or not youth employment programs are necessary and good, but rather how they are utilized. Although Canada Summer Jobs sounds great at face value, the popularity of the program means that few companies received the 50% incentive. As well, companies that are merely hiring their usual seasonal work force are receiving tax-funded money under the guise of helping the youth. Canada Summer Jobs received too much attention for its substandard performance, but there is hope yet as there are grants that really do cover specific training and help a young student to develop their skills and achieve their goals.
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