Labour Market Report. Calgary & Area. Youth Recruitment and Retention Practices. Results from the 2013 Employer Survey

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1 Labour Market Report Calgary & Area Labour Market Report Youth Recruitment and Retention Practices Results from the 2013 Employer Survey

2 Contents Introduction... 2 Youth Profile... 2 Youth Population... 2 Youth in the Labour Force... 3 Calgary & Area Employer Survey... 9 Summary of 2013 Survey Results: Youth Recruitment and Retention Practices Recruiting and Retaining Youth Understanding Youth Best Practice Examples Conclusion Appendix A Survey Methodology Appendix B Youth Employment Challenges: Employer Comments Strategies Used to Attract and Retain Youth: Employer Comments Disclaimer Alberta Human Services has made every effort to ensure that the information contained in this report is reliable, but makes no guarantee of its accuracy or completeness. The user of any information in this report accepts full responsibility and risk of loss resulting from decisions made by the user. Alberta Human Services 1

3 Introduction Alberta Human Services provides career and labour market information products and resources, with both a provincial and local/regional focus, to enable Albertans to acquire the skills, and to access supports and information they need to succeed in the labour market. This report provides labour market information and analysis for various groups, including: Albertans learning about the labour market and career planning; employers and industry in understanding and addressing labour market issues; and the Alberta Human Services Calgary Region in strategic planning for programs and services. Recruitment and retention of youth is an important issue for policy makers and employers. The objective of this report is to provide a better understanding of youth workers in Canada and Alberta along with results from the 2013 Calgary and Area Employer Survey around youth recruitment and retention practices. Youth Profile Youth Population In 2013, 13.2 per cent of Canada s population was aged years, down from 13.3 per cent in Alberta had the fourth highest proportion of youth in the population at 13.4 per cent in 2013 (down from 13.6 per cent in 2012), after Manitoba at 14.1 per cent, Saskatchewan at 13.9 per cent and Ontario at 13.6 per cent. The proportion of youth in the Calgary Economic Region s population was 12.4 per cent in 2013, down from 12.6 per cent the in previous year %! 12.0%! 9.0%! 6.0%! 3.0%! 0.0%! Proportion of Youth (15-24 years) in Total Population Canada and Provinces! As of July 1, 2013, there were 4,625,700 youth aged years living in Statistics Canada. Table Estimates of population, by age group and sex for July 1, Canada and provinces, annual! Canada, an increase of 0.1 per cent from Over the same time period, the population in Canada nearing retirement (aged years) increased 2.5 per cent to 4,612,450. In 2013, Alberta had 540,550 youth, an increase of 1.9 per cent from Over the same period, the population in Alberta nearing retirement increased 4.8 per cent to 463,800. Having more citizens nearing retirement than youth entering the workforce is a reversal of a long term trend in Canada. For as long as statistics have been kept in this country, the number of young people entering the work force has always exceeded the number nearing retirement. Not any more. At some point this year [2013], the number of 15- to 24-year-olds [in Canada] will slip below the number of 55- to 64-year-olds for the first time, according to Statscan s demography division. That represents a major symbolic threshold for a society just beginning the slide from a demographic golden age %! Canada! 11.4%! NL! 13.2%! PE! 12.6%! NS! 2012! 2013! 12.0%! 12.4%! NB! QC! 13.6%! ON! 14.1%! 13.9%! MN! SK! 13.4%! AB! 13.0%! BC! 1 City of Calgary Economics, Calgary & Region Economic Outlook , Fall 2013, p The Globe and Mail, Retirees set to outnumber Canada s youth for the first time, Joe Friesen, Demographic Reporter, February 18, Alberta Human Services 2

4 In 1971, youth aged years accounted for 19 per cent of the total Canadian population. This proportion could decline to 11 per cent by 2031 according to a Statistic Canada s demographic projection. 3 By 2018, the City of Calgary is projecting the proportion of youth will decline to 11.2 per cent of the total Calgary Economic Region population. 4 These demographic changes are expected to impact the labour force supply and the ability of employers to attract and retain a skilled workforce. The shift is a major worry for governments and business. On a basic level, it indicates that, with more people at the age of exit than entry, the work force will grow at a much slower rate. That will have a doubly damaging impact on public coffers; pension and health costs will rise at the same time that growth in the tax base slows. Meanwhile, employers are going to struggle to find workers in some areas, a prospect they identify as a major threat to productivity. 5 Youth in the Labour Force In 2013, Alberta youth made up 15 per cent of the province s labour force, and accounted for 14.4 per cent of those employed. Just under 28 per cent of the total unemployed in Alberta were youth, down from about 30 per cent in In 2013, the unemployment rate for Alberta youth was 8.6 per cent, down from 8.9 per cent the previous year but still 4.7 percentage points higher than the unemployment rate for Albertans aged 25 years and older. The participation rate for Alberta youth was 6.4 percentage points lower than the rate for adults aged 25 years and older, while the employment rate for youth was 9.3 percentage points lower. Alberta Labour Force Statistics Alberta Youth (15-24 years) Adults (25+ years) All Albertans (15+ years) % of Albertans (15-24 years) Population 512,900 2,659,500 3,172, % Labour Force 347,200 1,971,000 2,318, % Employed 317,600 1,893,400 2,211, % Unemployed 29,700 77, , % Participation Rate 67.7% 74.1% 73.1% - Employment Rate 61.9% 71.2% 69.7% - Unemployment Rate 8.6% 3.9% 4.6% - Source: Statistics Canada CANSIM Table Labour force survey estimates (LFS) 3 Statistics Canada, What has changed for young people in Canada? Diane Galarneau, René Morissette and Jeannine Usalcas, July 2013, p.1. 4 City of Calgary Economics, Calgary & Region Economic Outlook , Fall 2013, p The Globe and Mail, Retirees set to outnumber Canada s youth for the first time, Joe Friesen, Demographic Reporter, February 18, Alberta Human Services 3

5 PARTICIPATION RATES Canada s youth participation rate 6 reached a cyclical peak of 67.5 per cent in 2008, a rate not seen since Over the last five years, however, the nation s youth participation rate has trended lower, dropping to 63.8 per cent in While Alberta s youth participation rate has been higher than the national average, it has also exhibited a similar trend over the years. After reaching a peak of 73.7 per cent in 2008 (a rate not seen since 1986), Alberta s youth participation rate declined to 67.7 per cent in Among the population aged 15+ years, Alberta had the highest participation rate in 2013 at 73.1 per cent, compared to the Per cent! 80! 75! 70! 65! 60! 55! Participation Rates of Youth (15-24 years)! Canada and Alberta! 1977! 1979! 1981! 1983! 1985! 1987! 1989! 1991! 1993! 1995! 1997! 1999! 2001! 2003! Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group, annual! national average of 66.5 per cent. Among youth, however, Alberta s participation rate was the fourth highest among provinces in 2013, after Prince Edward Island, Saskatchewan and Manitoba. Canada! Alberta! Albertans are hard working work is, after all, the primary reason why most interprovincial migrants move to our province. But when it comes to participating in the work force, Alberta s young people are much more in line with their Canadian peers than their parents are ! 63.8! 2005! 2007! 2009! 2011! 2013! Youth Participation Rates, Canada and Provinces! 2012! 2013! 80.0! 70.0! 60.0! 63.8! 59.4! 69.7! 65.2! 62.1! 66.8! 60.8! 68.9! 69.0! 67.7! 62.0! Per cent! 50.0! 40.0! 30.0! 20.0! 10.0! 0.0! Canada! NL! PE! NS! NB! QC! ON! MB! SK! AB! BC! Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group! 6 Total labour force expressed as a percentage of the population aged 15 years and over that is either employed or actively looking for employment. 7 ATB Financial, Daily Economic Comment, Youth Participation Rates, May 14, Alberta Human Services 4

6 It is important to look at labour market participation rates of the youth segment versus those aged 25 years and older. When the economy is strong, youth have an incentive to leave their studies early and enter the labour market, and conversely delay their entry during tougher economic times. As a result, youth participation rates tend to exhibit a high degree of volatility. For more established workers 25 years of age and older, there is considerably less variability, as the decision to leave the labour market carries significant costs. Per cent! 80! 78! 76! 74! 72! 70! 68! 66! 64! 62! 60! Participation Rates, Alberta! 15 to 24 years! 25 years and over! 1977! 1979! 1981! 1983! 1985! 1987! 1989! 1991! 1993! 1995! 1997! 1999! 2001! Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group! In 1981, 39 per cent of Canadians aged years and 31 per cent of Albertans aged years were full-time students. In 2013, the proportion of Canadian youth that were full-time students increased to 58 per cent, while the proportion of Alberta youth that were full-time students rose to 49 per cent. 8 More young people are staying in school longer, delaying their entry into the labour market. More young people staying in school is the positive side to declining labour force participation rates for youth. Perceptions of a more promising future for those with more education in conjunction with a more difficult labour market are undoubtedly related to this increased school attendance ! 67.7! 2003! 2005! 2007! 2009! 2011! 2013! EMPLOYMENT Among all employed Albertans in 2013 (2.21 million), 14.4 per cent or 317,600 workers were aged years, down slightly from 14.7 per cent of all employed Albertans in Prior to 1982, the employment rate for Alberta youth actually exceeded the adult employment rate. The employment rate is defined as the proportion of the working age population that is employed. Alberta s youth employment rate declined sharply between 1981 and 1984 and has remained below the adult employment rate ever since. After hitting a low of 60 per cent in 1993, the youth employment rate steadily increased until the 2008 crisis, reaching 68.2 per cent. Since then, the province s youth employment rate has fallen to 61.9 per cent in 2013, and the gap between youth and adult 8 Statistics Canada. Table Labour force survey estimates (LFS), by full- and part-time students during school months, sex and age group, unadjusted for seasonality, monthly. 9 Opinions Politiques, School enrollment and the declining youth participation rate, Phillip Jennings, April Alberta Human Services 5

7 employment rates sits at 9.3 per cent. This was the second highest gap among provinces in 2013, behind Ontario with a gap of 12.4 per cent. Employment Rate (%)! 75! 73! 71! 69! 67! 65! 63! 61! 59! 57! 55! 1977! 1979! 1981! 1983! 1985! 1987! 1989! 1991! 1993! 1995! 1997! 1999! 2001! 2003! 2005! 2007! 2009! 2011! Still, Alberta s youth employment rate of 61.9 per cent in 2013 was the second highest among the provinces, behind Saskatchewan, and was 6.8 percentage points higher than the average Canadian youth rate of 55.1 per cent. Employment Rate (%)! Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group, annual!! 80.0! 70.0! 60.0! 50.0! 40.0! 30.0! 20.0! 10.0! 0.0! Employment Rates in Alberta (%), ! 49.5! 51.0! 51.1! 15 to 24 years! 25 years and over! Employment Rates, Canada and Provinces ! NL! ON! NB! years! 25+ years! 53.3! 54.0! 55.1! NS! BC! Canada! 57.1! 58.1! Source: Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group, annual! PE! QC! 71.2! 61.9! 2013! 61.7! 61.9! 63.6! MB! AB! SK! Alberta Human Services 6

8 EMPLOYMENT BY INDUSTRY While just over 14 per cent of all employed Albertans were aged years in 2013, this figure varies significantly by industry. Not surprising, the accommodation and food services (36 per cent) and retail trade (30 per cent) industries in Alberta had the highest percentage of youth workers in 2013, while the remaining industries were below the provincial average. The finance, insurance, real estate and leasing and public administration industries in Alberta had the lowest percentage of youth workers in 2013 at 7.0 per cent each. Distribution of Employment by Age Group! for Select Industries in Alberta, 2013! 15 to 24 years! 25 + years! Accom & Food Services! Retail Trade! Wholesale Trade! Construction! Manufacturing! Mining & Oil & Gas! Prof, Scien & Tech Services! Agriculture! Health Care & Soc Assist! Transportation! Education! Fin, Ins, Real Est & Leasing! Public Admin! 36%! 30%! 14%! 13%! 10%! 9%! 9%! 9%! 8%! 8%! 8%! 7%! 7%! 0%! 10%! 20%! 30%! 40%! 50%! 60%! 70%! 80%! 90%! 100%! Source: Statistics Canada. Table Labour force survey estimates (LFS), by North American Industry Classification System (NAICS), sex and age group, annual! UNEMPLOYMENT Alberta s youth unemployment rate was 8.6 per cent in 2013, significantly higher than the rate of 3.9 per cent for Albertans 25 years and older. Still, Alberta had the second lowest youth unemployment rate among provinces in 2013, behind Saskatchewan. In addition, Alberta s youth unemployment rate was 5.1 percentage points lower than the Canadian youth average of 13.7 per cent. Unemployment Rates, Canada and Provinces ! years! 25+ years! Unemployment Rate (%)!! 20.0! 18.0! 16.0! 14.0! 12.0! 10.0! 8.0! 6.0! 4.0! 2.0! 0.0! 7.8! SK! 8.6! AB! 10.5! MB! 12.9! 13.0! BC! QC! 13.7! Canada! 16.1! ON! 16.7! NL! 17.8! 18.1! 18.3! NB! PE! NS! Source: Statistics Canada. Table Labour force survey estimates (LFS), by sex and detailed age group, annual! Alberta Human Services 7

9 GLOBAL TREND While Canada s youth unemployment rate is concerning, particularly in eastern Canada, the situation is much worse for many OECD 10 countries. In 2012, the youth unemployment rate in the U.S. was almost 2.0 percent higher than in Canada and has reached a crisis in many European countries. In Spain and Greece, youth unemployment rates ranged from 50 per cent to 60 per cent in 2012, while unemployment rates were between 30 per cent and 40 per cent in Ireland, Italy and Portugal. Stalling the careers of an entire generation of youth ultimately has long-term consequences for the international competitiveness of an economy. At the very least, Canadians can take solace in knowing the situation could be much "Around the world, there is growing recognition of the need to strengthen policies and investments involving young people... Youth can determine whether this era moves toward greater peril or more positive change. Let us support the young people of our world so they grow into adults who raise yet more generations of productive and powerful leaders." - Ban Ki-Moon, Secretary-General of the United Nations, Message for International Youth Day, August 12, worse. Admittedly, this is little comfort to the 400,000 young people out of work in Canada today. However, the historical and international comparisons mainly serve to show today s youth are not the first generation to deal with a tough job market, nor are they likely to be the last. Ultimately, younger workers have the least tenure and are the most vulnerable. In every economic cycle, they are the first ones to suffer, and the last to recover. 11 In 2012, the Netherlands, Mexico, Korea, Austria, Norway, Switzerland, Germany and Japan all had a youth unemployment rate below 10 per cent. The Canadian Centre for Policy Alternatives suggests that well developed apprenticeship and work placement programs in many of these countries is a contributing factor to the low unemployment rates among youth. Internationally, when we look to countries with low youth unemployment rates, coordination between employers, organized labour and educational institutions is ubiquitous. The countries with the lowest youth unemployment rates Austria, the Netherlands, Japan, Germany and Switzerland all have strong apprenticeship and work placement systems. 12 In addition, according to the OECD, the youth unemployment rate is two to three times higher than that of adults aged 25 and older in all G20 countries 13, with the exception of Germany. Germany s youth unemployment rate is only 50 per cent higher than it s adult rate, reflecting the success of its longstanding dual system of vocational education and training in securing a relatively smooth transition from school to work Organisation for Economic Cooperation and Development 11 Financial Post, Three steps toward correcting youth un(der) employment, Francis Fong, TD economics, August 13, Canadian Centre for Policy Alternatives, The young and the jobless, Sean Geobey, September 27, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, United Kingdom, United States, European Union. 14 OECD, The challenge of promoting youth employment in the G20 countries, Alberta Human Services 8

10 Greece! Spain! Portugal! Italy! Ireland! Poland! France! Sweden! United Kingdom! Finland! New Zealand! Turkey! United States! Canada! Denmark! Australia! Netherlands! Mexico! Korea! Austria! Norway! Switzerland! Germany! Japan! Youth Unemployment Rates, Select OECD Countries, 2012! 0.0! 10.0! 20.0! 30.0! 40.0! 50.0! 60.0! Source: OECD Database! Calgary & Area Employer Survey The purpose of the quarterly survey is to gather information from Calgary and area employers on their recruitment and retention practices, as well as various other employment issues they are facing. Over the course of the year, employers were divided into four categories based on the number of employees in the company and results of the survey were reported on as follows: Q1 2013: Large-sized companies with 100+ employees Q2 2013: Medium-sized companies with employees Q3 2013: Small-sized companies with employees Q4 2013: Micro-sized companies with <10 employees In addition to the general questions about recruitment and retention practices, employers were asked the following specific questions about youth workers: 1. To the best of your knowledge, are any of your current employees under 25 years of age (youth)? 2. Does your company use any strategies to specifically attract and retain youth workers? 3. What would you say is the biggest challenge your company faces in terms of employing youth workers? Alberta Human Services 9

11 PROFILE OF COMPANIES In 2013, a survey was conducted of 801 Calgary and area companies. 15 The 801companies surveyed employ approximately 92,921 people. Of this total, 66 per cent are full-time employees, 25 per cent are part-time employees and 9 per cent are other employees (contract, seasonal, casual, temporary, relief, not specified). Number of Employees and Companies Surveyed in 2013 Industry Total Employees Number of Companies Mining & Oil & Gas 12, Construction 8, Manufacturing 6, Wholesale & Retail Trade 14, Transportation & Warehousing 6, Professional, Scientific & Technical Services 8, Health Care & Social Assistance 8, Accommodation & Food Services/Arts & Entertainment 7, Finance, Insurance, Real Estate & Leasing 7, Other 12, Total 92, Note: Other represents companies from the remainder of the industry categories: Agriculture, Utilities, Information and Culture, Management of Companies, Administrative and Support Services, Educational Services, Other Services, and Public Administration. Summary of 2013 Survey Results: Youth Recruitment and Retention Practices Seventy-three per cent of the employers reported their company currently employs youth. The first question employers were asked was, To the best of your knowledge, are any of your current employees under 25 years of age (youth)? Seventy-three per Overall! cent of the employers (581 employers) said their company currently employs Large (100+)! youth. The larger the employer, the more likely they are to employ youth. Ninetyfour per cent of the large-sized employers Medium (50-99)! Small (10-49)! said they employ youth, compared to only 38 per cent of the micro-sized employers. Micro (<10)! 38%! Percentage of employers that employ youth,! by company size! 73%! 69%! 90%! 94%! 0%! 10%! 20%! 30%! 40%! 50%! 60%! 70%! 80%! 90%! 100%! 15 For additional information on survey methodology, see Appendix A. Alberta Human Services 10

12 Accom & Food Serv/Arts & Ent! Examining the results by industry reveals that some industries are more likely to employ youth than others. Eighty-four per cent of the accommodation and food services/arts and entertainment employers, 79 per cent of the wholesale and retail trade employers and 76 per cent of the construction employers reported their company currently employs youth. In contrast, less than 70 per cent of the mining and oil and gas, finance, insurance, real estate and leasing and transportation and warehousing!!!!!!! employers reported they currently employ!!!!!!! youth. Youth account for 17 per cent of the total workforce. Employers were then asked to provide an estimate of the number of youth their company employs. Overall, 735 employers 16 estimate they employ approximately 12,075 youth, which equates to 17 per cent 17 of the total employees. Not surprising, the accommodation and food services/arts and entertainment and wholesale/retail trade industries had the highest percentage of youth in their total workforce at 40 per cent and 27 per cent respectively. In contrast, the mining and oil and gas industry had the lowest percentage of youth in their total workforce at 7 per cent. Youth Employment Industry Percentage of employers that employ youth,! by industry! Wholesale & Retail Trade! Construction! Health Care & Soc Assist! Other! Manufacturing! Prof, Scien & Tech Services! Mining & Oil & Gas! Fin, Ins, Real Est & Leasing! Transportation & Warehousng! 61%! 66%! # of Employers Total Employees Total Youth Employed % Youth Accommodation & Food Services/Arts & Entertainment 75 6,738 2,708 40% Wholesale & Retail Trade 73 10,041 2,758 27% Construction 69 4, % Health Care & Social Assistance 74 6,682 1,028 15% Other 72 9,231 1,289 14% Professional, Scientific & Technical Services 72 5, % Manufacturing 78 6, % Transportation & Warehousing 76 5, % Finance, Insurance, Real Estate & Leasing 74 5, % Mining & Oil & Gas 72 10, % Total ,635 12,075 17% 73%! 73%! 70%! 69%! 79%! 76%! 75%! 84%! 0%! 20%! 40%! 60%! 80%! 100%! 16 Note: 66 employers were not able to provide an estimate of the number of youth they employ, therefore they were not included in the calculation. 17 This compares to 14 per cent as reported by Statistics Canada for the Alberta economy. Alberta Human Services 11

13 ATTRACTION AND RETENTION STRATEGIES Thirty-six per cent of the employers said they use strategies to specifically attract and retain youth workers. Employers were asked, Does your company use any strategies to specifically attract and retain youth workers? Overall, 36 per cent of the employers (290 employers) said they use strategies to specifically attract and retain youth workers. The larger the employer, the more likely they are to use youth attraction and retention strategies. Almost half of the large-sized employers use strategies to specifically attract and retain youth workers compared to only 16 per cent of the micro-sized employers. Medium (50-99)! Small (10-49)! Percentage of employers that use strategies to specifically attract and retain youth, by company size! Overall! Large (100+)! Micro (<10)! 16%! 36%! 35%! 40%! 49%! 0%! 10%! 20%! 30%! 40%! 50%! 60%! Percentage of employers that use strategies to specifically attract and retain youth, by industry! Accom & Food Serv/Arts & Ent! Prof, Scien & Tech Services! Construction! Health Care & Soc Assist! Other! Manufacturing! Wholesale & Retail Trade! Fin, Ins, Real Est & Leasing! Mining & Oil & Gas! Transportation & Warehousng! 30%! 28%! 33%! 31%! 36%! 34%! 40%! 40%! 44%! 48%! 0%! 10%! 20%! 30%! 40%! 50%! Some industries are more likely to use strategies to specifically attract and retain youth than others. Forty-eight per cent of the accommodation and food services/arts and entertainment employers, 44 per cent of the professional, scientific and technical services employers and 40 per cent of the construction and health care and social assistance employers use youth attraction and retention strategies, compared to only 28 per cent of the transportation and warehousing employers. The most common strategy used to attract youth is offering intern/apprenticeship/co-op training opportunities. The most common strategies used to attract youth include: offering intern/apprenticeship/co-op training opportunities (117 employers), attending youth job fairs (75 employers), partnering with education institutions to develop entry-level job opportunities (68 employers), offering summer student opportunities (53 employers) and making presentations to students at schools/post-secondary institutions (46 employers). Alberta Human Services 12

14 Strategies Used to Attract Youth Offer intern/apprentice/co-op training opportunities! 117! Attend youth job fairs! Partnerships with education institutions to develop entry-level job opportuntiies! Offer summer student opportunities! 53! 68! 75! Presentations to students at schools/post-secondary institutions! 46! Encourage word of mouth/employee referrals to attract youth! Design/tailor positions specifically for youth! 23! 28! Scholarship/tuition programs! Use social media/web to attract youth! Industry attracts youth! 14! 13! 17! Brand company/product name at post-secondary institutions! Campus recruitment social events! Location attracts youth! Partner with Youth Employment Centre! 7! 5! 5! 4! 0! 20! 40! 60! 80! 100! 120! Number of Employers! TOP ATTRACTION STRATEGIES: RESULTS BY COMPANY SIZE Large-sized employers: offer intern/apprentice/co-op training opportunities (49 employers), attend youth job fairs (41 employers) and make presentations to students at schools/post-secondary institutions (32 employers). Medium-sized employers: offer intern/apprentice/co-op training opportunities (31 employers), attend youth job fairs (22 employers) and offer summer student opportunities (21 employers). Small-sized employers: offer intern/apprentice/co-op training opportunities (28 employers), offer summer student opportunities (17 employers) and partner with high schools/post-secondary institutions to develop entry level job opportunities (17 employers). Micro-sized employers: offer intern/apprentice/co-op training opportunities (9 employers), partner with high schools/post-secondary institutions to develop entry level job opportunities (7 employers) and offer summer student opportunities (6 employers). TOP ATTRACTION STRATEGIES: RESULTS BY INDUSTRY Mining & Oil & Gas employers: offer intern/apprentice/co-op training opportunities (12 employers) and attend youth job fairs (8 employers). Construction employers: offer intern/apprentice/co-op training opportunities (17 employers) and attend youth job fairs (11 employers). Manufacturing employers: offer intern/apprentice/co-op training opportunities (15 employers) and partner with high schools/post-secondary institutions to develop entry level job opportunities (11 employers). Wholesale & Retail Trade employers: offer intern/apprentice/co-op training opportunities (8 employers) and partner with high schools/post-secondary institutions to develop entry level job opportunities (6 employers). Alberta Human Services 13

15 Transportation & Warehousing employers: offer intern/apprentice/co-op training opportunities (13 employers), attend youth job fairs (6 employers) and partner with high schools/post-secondary institutions to develop entry level job opportunities (6 employers). Professional, Scientific & Technical Services employers: offer intern/apprentice/co-op training opportunities (19 employers), attend youth job fairs (13 employers) and partner with high schools/postsecondary institutions to develop entry level job opportunities (9 employers). Health Care & Social Assistance employers: offer intern/apprentice/co-op training opportunities (13 employers), partner with high schools/post-secondary institutions to develop entry level job opportunities (9 employers) and attend youth job fairs (7 employers). Accommodation & Food Services/Arts & Entertainment employers: industry attracts youth (7 employers), offer intern/apprentice/co-op training opportunities (6 employers), and offer summer student opportunities (5 employers). Finance, Insurance, Real Estate & Leasing employers: offer intern/apprentice/co-op training opportunities (7 employers) and attend youth job fairs (7 employers). Other employers: offer intern/apprentice/co-op training opportunities (7 employers), attend youth job fairs (7 employers) and offer summer student opportunities (7 employers). The most common strategy used to retain youth is providing mentorship. The most common strategies used to retain youth include providing mentorship (101 employers), providing flexible work measures (87 employers) and providing learning/growth opportunities specifically tailored to youth (55 employers). Strategies Used to Retain Youth Mentorship! 101! Flexible work measures! 87! Learning/growth opportunities specifically tailored to youth! 55! Social events specifically tailored to youth! 36! Benefits/perks specifically tailored to youth! 29! Paid time off for youth! 27! Competitive wage! 14! Positive/fun work environment! 13! Cash bonuses! 10! Subsidized housing! 2! 0! 20! 40! 60! 80! 100! 120! Number of Employers! Alberta Human Services 14

16 TOP RETENTION STRATEGIES: RESULTS BY COMPANY SIZE Large-sized employers: mentorship (48 employers), flexible work measures (38 employers) and social events specifically tailored to youth (29 employers). Medium-sized employers: mentorship (12 employers) and flexible work measures (9 employers). Small-sized employers: flexible work measures (32 employers), mentorship (29 employers) and learning/growth opportunities specifically tailored to youth (19 employers). Micro-sized employers: mentorship (12 employers), learning/growth opportunities specifically tailored to youth (9 employers) and flexible work measures (7 employers). TOP RETENTION STRATEGIES: RESULTS BY INDUSTRY Mining & Oil & Gas employers: mentorship (12 employers), social events specifically tailored to youth (7 employers) and paid time off (5 employers). Construction employers: mentorship (15 employers), flexible work measures (10 employers) and learning/growth opportunities specifically tailored to youth (8 employers). Manufacturing employers: mentorship (11 employers), flexible work measures (8 employers) and paid time off (5 employers). Wholesale & Retail Trade employers: flexible work measures (10 employers) and mentorship (5 employers). Transportation & Warehousing employers: mentorship (9 employers) and learning/growth opportunities specifically tailored to youth (7 employers). Professional, Scientific & Technical Services employers: mentorship (16 employers), flexible work measures (9 employers) and social events specifically tailored to youth (7 employers). Health Care & Social Assistance employers: mentorship (12 employers), flexible work measures (9 employers) and learning/growth opportunities specifically tailored to youth (6 employers). Accommodation & Food Services/Arts & Entertainment employers: flexible work measures (16 employers), positive/fun work environment (9 employers), mentorship (7 employers) and social events specifically tailored to youth (7 employers). Finance, Insurance, Real Estate & Leasing employers: learning/growth opportunities specifically tailored to youth (11 employers), mentorship (8 employers), and benefits/perks specifically tailored to youth (7 employers). Other employers: flexible work measures (11 employers), mentorship (6 employers) and learning/ growth opportunities specifically tailored to youth (5 employers). The number one challenge employers face in terms of employing youth workers is they don t have enough experience. Employers were asked, What would you say is the biggest challenge your company faces in terms of employing youth workers? Overall, the number one challenge employers face is they don t have enough experience, indicated by 13 per cent of the employers. Almost 10 per cent of the employers said youth workers don t stay with the company for very long, while another 7 per cent each said youth have a poor work ethic/attitude and are not interested in working in their industry/location. Alberta Human Services 15

17 Youth Employment Challenges # 1 Challenge employing youth # of Employers % of Employers Not enough experience % Don't stay with the company for very long (retention) % Poor work ethic/attitude/sense of entitlement % Not interested in working in the industry/company/location (attraction) % Unreliable/not responsible/immature/no common sense % It takes a lot of time and resources to train and supervise youth % Don t have the right education % Unrealistic wage expectations % Accommodating schedule/need for flexible hours or work arrangements % Age restriction on equipment/insurance/industry (must be 25+) % Don t show up for work (attendance) % Don t have the right skills % Keeping work interesting/motivating youth % Commitment % Company is not offering career experience/development opportunities % Unrealistic expectations re: promotions or career progression % We don t have any entry level positions % Always on cell phone/social media % Challenges working with older employees (generation gap) 8 1.0% Finding the right person/right fit for the job 7 0.9% Safety 7 0.9% Understanding their needs/recognizing what is important to them 6 0.7% There are no subsidies or other incentives to hire youth 3 0.4% Communicating with youth 3 0.4% Don't show up for interviews 1 0.1% Not able to make many sales 1 0.1% No response* % Total % *Includes: can't think of any challenges, don't have any challenges, don't hire youth, haven't hired in years. TOP YOUTH EMPLOYMENT CHALLENGES: RESULTS BY COMPANY SIZE Large-sized employers: don t stay with the company for very long (40 employers), not enough experience (24 employers), accommodating schedule/need for flexible hours or work arrangements (14 employers), not interested in working in the industry/company location (13 employers), unrealistic wage expectations (12 employers) and poor work ethic/attitude/sense of entitlement (11 employers). Medium-sized employers: not enough experience (35 employers), don t stay with the company for very long (19 employers), poor work ethic/attitude/sense of entitlement (18 employers), not interested in working in the industry/company/location (15 employers) and it takes a lot of time and resources to train and supervise youth (12 employers). Small-sized employers: not enough experience (22 employers), poor work ethic/attitude/sense of entitlement (16 employers), don t have the right education (15 employers), not interested in working in the industry/company/location (13 employers) and don t stay with the company for very long (11 employers). Micro-sized employers: not enough experience (30 employers), don t stay with the company for very long (15 employers), not interested in working in the industry/company/location (14 employers), unreliable/not responsible/immature/no common sense (14 employers) and poor work ethic/attitude/ sense of entitlement (12 employers). Alberta Human Services 16

18 TOP YOUTH EMPLOYMENT CHALLENGES: RESULTS BY INDUSTRY Mining & Oil & Gas employers: not enough experience (10 employers), it takes a lot of time/ resources train and supervise youth (9 employers), and company is not offering career experience/ development opportunities (6 employers). Construction employers: poor work ethic/attitude/sense of entitlement (12 employers), not enough experience (9 employers), it takes a lot of time and resources to train and supervise youth (8 employers) and don t stay with the company for very long (7 employers). Manufacturing employers: not interested in working in the industry/company/location (13 employers), poor work ethic/attitude/sense of entitlement (11 employers), don t stay with the company for very long (7 employers), not enough experience (6 employers) and unrealistic wage expectations (6 employers). Wholesale & Retail Trade employers: not enough experience (8 employers), accommodating schedule/need for flexible hours or work arrangements (8 employers), poor work ethic/attitude/sense of entitlement (7 employers), not interested in working in the industry/company/location (7 employers) and unrealistic wage expectations (6 employers). Transportation & Warehousing employers: age restriction on equipment/insurance/industry (must be 25+) (14 employers), don t stay with the company for very long (10 employers), not enough experience (8 employers), unreliable/not responsible/immature/no common sense (8 employers) and unrealistic wage expectations (5 employers). Professional, Scientific & Technical Services employers: not enough experience (17 employers), don t stay with the company for very long (11 employers) and don t have the right education (8 employers). Health Care & Social Assistance employers: not enough experience (18 employers), don t have the right education (12 employers), don t stay with the company for very long (7 employers). Accommodation & Food Services/Arts & Entertainment employers: don t stay with the company for very long (15 employers), accommodating schedule/need for flexible hours or work arrangements (9 employers), unreliable/not responsible/immature/no common sense (7 employers), not interested in working in the industry/company/location (5 employers) and not enough experience (5 employers). Finance, Insurance, Real Estate & Leasing employers: not enough experience (17 employers), don t have the right education (5 employers), poor work ethic/attitude/sense of entitlement (5 employers), unrealistic wage expectations (5 employers) and not interested in working in the industry/ company/location (5 employers). Other employers: not enough experience (7 employers), don t stay with company for very long (7 employers), poor work ethic/attitude/sense of entitlement (6 employers), and company is not offering career experience/development opportunities (5 employers). Alberta Human Services 17

19 Along with the challenges, several employers also elaborated on the benefits of recruiting youth. Some employers simply said they couldn t think of any challenges, they didn t have any challenges or they just preferred to employ youth workers. Other employers said employing youth benefits their organization as they are good with technology and they bring enthusiasm and new ideas to the workplace. Some employers liked that they could mould a young worker to suit their organization and other employers said youth are able to challenge senior employees in a positive way. Comments We don't really have any problems. We have a lot of students and young people pursuing their professional designations that come to work for us. They stay here for the support the firm provides for their professional designations. - Finance, Insurance, Real Estate & Leasing Everything has been great and I've had no challenges. I will take people straight out of university. One of my most reliable employees is under Health Care & Social Assistance It's just the inexperience that can be a challenge, but then in some ways that can be a good thing too. I personally like having younger employees and our management team is younger. When hiring young, you get people who aren't used to the professional work life, which can pose difficulties. On other hand, you are able to mould the type of employee you want. Especially with nursing, people can get set techniques and bad habits that don't work in continuing care. When I hire young, I find that everyone has awesome, new ideas that they want to share. - Health Care & Social Assistance The people we have that are under 25 we've been fortunate with because they're very hard working, so I would say we don't have challenges. - Health Care & Social Assistance They fit in quite well in the roles they are hired in, which are mainly casual roles. - Health Care & Social Assistance I don t have any challenges. I'm finding that youth are quite reliable. It's different from having a young person working in retail. They've been to school, they're willing to work and they're generally very flexible because they don't have kids or family at home. They are very driven. - Health Care & Social Assistance I don't regard hiring young people as any more of a challenge than employing anyone else. The reflection of a society includes a combination of youth and experience. We like to have new blood in here for two reasons: 1. Nothing is greater than the enthusiasm of youth. 2. For senior people who are supervising, they have to explain what they do and why and this reinforces their understanding. The whole mentoring process is very important in the workplace and we can't do that without youth. - Other Just keeping them engaged. In order to encourage retention of youth, we are currently upgrading to a more automated service. Young people love technology. - Wholesale & Retail Trade Young people are usually the best employees, actually. - Transportation & Warehousing I have no challenges, youth are better than the older generation. - Mining & Oil & Gas Alberta Human Services 18

20 Recruiting and Retaining Youth Youth unemployment has attracted a lot of attention and much research has been published in recent years around the topic. Developing supports for recruiting and retaining youth will take the cooperation of youth, employers, industry, education and training providers and government. Generally, youth are among the more disadvantaged groups in the labour market. Results from the 2013 Calgary & Area Employer Survey shows that one in four employers do not currently employ youth. These results vary by employer size and industry with over 60 per cent of the micro-sized employers and about 40 per cent of the transportation and warehousing employers reporting they do not currently employ youth. A 2012 study conducted by the Chartered Institute of Personnel and Development (CIPD) in the UK found similar results, showing 25 per cent of the employers surveyed did not recruit a single person aged years in the year prior to their survey. In addition, 10 per cent of the organizations in the UK reported a decline in the number of youth they recruited in The industries in Calgary that are more likely to employ youth are the accommodation and food services/arts and entertainment, wholesale and retail trade and construction industries. Eighty-four per cent of the accommodation and food services/arts and entertainment employers surveyed said they currently employ youth and it is estimated that youth make up 40 per cent of this industry s workforce. Seventy-nine per cent of the wholesale and retail trade employers said they employ youth and it is estimated that youth comprise 27 per cent of this industry s workforce. Finally, 76 per cent of the construction employers reported they employ youth and it is estimated that youth make up 20 per cent of this industry s workforce. However, it is not just these industries that matter when it comes to youth employment. Larger organizations are more likely to employ youth than smaller ones. Understanding Youth Many employers in Calgary and across Canada are struggling to understand youth workers, what motivates them and how to attract and retain them. According to the results of the 2013 Calgary and Area Employer Survey, only 36 per cent of the employers said they use strategies to specifically attract and retain youth workers. Recently, PPX, a youth led initiative of the Public Policy Forum, designed and conducted cross country workshops in Ottawa, Toronto, Calgary, Saint John, Regina and Montreal. Approximately 300 young Canadians, along with select employers, participated in exploring and brainstorming ideas on how to Every organization, regardless of size, industry, or position in the workplace can get involved in developing its young leaders today. Crossgenerational mentoring and coaching are practical and inexpensive development approaches that are gaining increasing popularity in many organizations. - ASTD.org, Preparing Today s Youths for Tomorrow s Workplace, enhance intergenerational dialogue, transform companies into employers of choice and curb youth outmigration. Participants discussed topics such as: What are the attributes of a choice employer? What are Generation Y s values and expectations when it comes to work and the workplace? What is the impact of these values in an organizational setting? How has the conception of work evolved? How can employers attract and retain young workers? 19 Following of some of the key findings of the workshops compared with some of the results of the 2013 Calgary & Area Employer Survey. 18 CIPD, Employers are from Mars, Young People are from Venus, Addressing the Young People Jobs Mismatch, April 2013, p Public Policy Forum, The Road to Retention, Youth perspectives on transforming organizations into choice employers, Alberta Human Services 19

21 Mentorship: With a rapidly aging workforce, mentoring is critically important for the successful transfer of knowledge and information. Youth value mentorship, consider mentoring as an essential part of their career development, and want mentors to inspire, guide and challenge them. Youth participants emphasized mentoring is crucial to employee retention, however, they feel most companies today do not provide such opportunities Calgary & Area Employer Survey Results: While providing mentorship was the most common strategy used by Calgary & Area employers to retain youth (101 employers), it was mentioned by only 13 per cent of the employers overall. More large-sized employers (25 per cent) provide mentorship to their youth employees than medium (6 per cent), small (15 per cent) or micro-sized employers (6 per cent). Corporate Social Responsibility: Youth value and are attracted to organizations that are socially and environmentally responsible. Participants in the workshops argued that for companies to retain young people, they must create a strong social mandate and encourage employees to take time off to participate in their community. 21 Diversity in the Workplace: Young people value diversity and expect to see it reflected in the workplace. They are more sensitive to imbalances and lack of equity than the previous generation and are drawn to organizations that better reflect the diversity of the Canadian population. 22 Informal Work Environments and Flexibility: Flexibility is a priority for young workers. They are not in favour of rigid attendance rules nor set hours, and value informal work environments, such as remote working. They also believe that productivity is better measured by results rather than facetime. Their view is that new technologies in the workplace should be used to a greater extent to help increase collaboration and productivity across departments, branches, and even connect likeminded organizations. These types of flexible work arrangements require employers to develop a greater level of trust with young employees Calgary & Area Employer Survey Results: Providing flexible work measures was the second most common strategy used by Calgary employers to retain youth, mentioned by 11 per cent of the employers or 87 employers. More large-sized employers (19 per cent) and small-sized employers provide flexible work measures to their youth employees than medium (5 per cent) or micro-sized employers (4 per cent). In addition, 27 employers said they provide youth with paid time off and 13 employers reported they provide a positive/fun work environment that appeals to youth. Customizable and Flexible Benefits: Youth view choice as a sign of respect and are attracted to employers that offer more customizable or flexible perks and benefits. They believe that the chances of retention may actually increase if employers offered more options tailored to youth, such as transit passes, coverage for braces or subsidized gym memberships Calgary & Area Employer Survey Results: Twenty-nine employers, or 4 per cent of the employers said they use benefits/perks specifically tailored to youth as a retention strategy. In addition, 36 employers, or another 4 per cent of the employers said they provide social events specifically tailored to youth. 20 Ibid, p Ibid, p Ibid, Ibid, p Ibid, p.24 Alberta Human Services 20

22 Lifelong Learning: Youth want to continue learning beyond college or university and feel that formal and informal learning opportunities in the workplace are valuable. They believe that continuous learning is a way to broaden horizons, stimulate new perspectives and offer their organizations fresh insight. Youth are more likely to stay with a company that values interdisciplinary learning opportunities, volunteerism and lateral moves within the company Calgary & Area Employer Survey Results: Providing learning/growth opportunities specifically tailored to youth was the third most common strategy used by Calgary employers to retain youth, mentioned by 7 per cent of the employers or 55 employers. More small-sized employers (10 per cent) provide learning/growth opportunities specifically tailored to youth than other employers. Positive/Approachable Leadership: Youth want to develop strong positive relationships with their employers and do not want to be seen as just another employee. They value managers that are approachable, involved and act as coaches and mentors rather than authority figures. 26 Creative and Collaborative Work Environment: Youth value open and collaborative work environments where new ideas can be generated by everyone, not just at the top. Youth believe creative and collaborative work environments increase productivity and innovation and enhance learning. 27 Inclusive Workplace: Young employes value being part of the big picture and want to be included in discussions pertaining to organizational planning. 28 SOME COMMON MYTHS ABOUT YOUTH New research from Capstrat 29 reveals that balance, benefits, purpose and support are the most important to youth - even more than salary. The research outlines some of the myths and realities about youth and ideas for employers to attract and retain this generation of workers. Myth: Millennials don t want your advice they ve got it all figured out. Reality: Millennials crave coaching. Provide face-to-face consultation and mentoring programs around career and personal development. Millennials want sound advise and answers to their specific questions. Myth: Millennials are all about the money. Reality: Benefits trump salary. Promote your benefits package when recruiting millennials and keep reminding them about those benefits once they re hired. Help younger employees navigate their benefits especially at milestone moments like getting married or having a first child. Myth: Millennials aren t willing to put in the hours to get ahead. Reality: They want a career - but they also want a life. When recruiting, position your company s benefits, culture and work environment in terms of work-life balance. Engage youth in meaningful work that makes a difference and meets their personal goals and provides them with flexible work options. 25 Ibid, p Ibid, p Ibid, p Ibid, p Capstrat, The Truth About Millenial Workers, Alberta Human Services 21

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