Post-Millennial Canadians face longterm financial effects from coronavirus pandemic

Coronavirus has undoubtedly taken its toll on the Canadian economy, however it appears to be the country's youngest workers who have been hit the hardest, according to Bloomberg.

Canada's employment rate for those aged 15 to 24 has dropped by 22 percent in April, according to a report released by StatsCan on Friday. That age group, often referred to as Gen Z or Post-Millennial, accounts for about 12 percent of the overall labour force but they made up about 25 percent of the 2 million jobs lost in April.

Canadians in that age group make up a large part of the sales and services sector, which has been hit hard due to social distancing measures and the closure of non-essential businesses. Toronto-Dominion Bank says that this could have a long-term effects on their future in a negative way.

“We’re taking the time to point this out because past recession cycles have shown that young people often bear long lasting scars on their livelihood,” said TD economists Beata Caranci and James Marple in a report released Friday.

For those who have just begun to enter the workforce, they may face a lower lifetime earning than that of those generations who are both older and younger than Gen Z.

For those who are newly entering the workforce, they will have the hardest time finding gainful employment with jobs that match their education and skill sets, and will likely have to settle for a position much lower than they are capable of.

Those who graduate amid a recession generally earn 10 percent less on average than people who graduate when unemployment rates are low, according to historic data provided by Caeanci and Marple. Such a gap in income can sometimes last for a decade, resulting in longer periods of student debt and further delaying of one's ability to become a home owner and begin a family.

Prime Minister Justin Trudeau’s administration has put in place a financial platform to aid this looming problem that provides income support from now until the end of summer.

“The idea of permanent challenges is particularly poignant for young people where we know that a summer without work experience, a summer where they’re struggling to pay their groceries or their rent is a significant setback in their march towards economic independence,” said Prime Minister Trudeau told on Friday, adding, “We will constantly be adjusting to make sure that Canadians are getting the support they need.”