Report highlights the implications of decreasing work hours
A recent study by the Fraser Institute has shown a significant decline in the average weekly work hours among young Canadians aged 15-24 over the past three decades. According to the report, the median number of hours worked per week has dropped by 16.3 per cent since 1989, with youth employment rates remaining below levels seen in the 1980s.
Ben Eisen, senior fellow at the Fraser Institute and co-author of the study titled Recent Trends in Youth Employment, expressed concerns over the long-term implications of these findings. “Over several decades many governments across Canada have sought to boost youth employment but for the most part have been unsuccessful,” Eisen stated.
In 1989, the average weekly hours worked stood at 30.7 hours, compared to 25.7 hours in 2023, marking a noticeable decrease. Further analysis reveals a consistent downward trend from 30.9 hours per week in the 1980s to 28.0 in the 1990s, and a more recent average of 25.6 hours from 2020 to 2023.
Eisen emphasized the broader impact of reduced work experience on youth. Acquiring work experience early in one’s career can significantly enhance future employment prospects and earnings potential, he explained. Conversely, prolonged periods of limited employment opportunities during youth can have lasting negative effects on individuals’ economic trajectories.
Highlighting recent data, the study also noted a concerning rise in Canada’s youth unemployment rate, increasing from 9.7 per cent in January 2023 to 12.6 per cent by May 2024. This uptick underscores the urgency for policy interventions that improve the labor market environment for young Canadians.
“If governments want to avoid the possible lasting harms from the recent spike in Canada’s youth unemployment rate, they should help improve the labour market environment for young Canadians,” Eisen advised.
The Fraser Institute is an independent Canadian public policy research organization dedicated to studying and communicating the effects of government policies on individuals’ well-being. The organization has offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think tanks in 87 countries, providing rigorous analysis and policy recommendations.
