Long acknowledged as one of the hardest-hit demographics by Canada’s home affordability crisis, millennials are sandwiched by a double whammy of ever-expensive homes and ever-declining job security—a volatile combination that will adversely impact the national economy over the next 10 to 20 years.
In her column for Better Dwelling
, Toronto editor Kaitlin Last said that millennials are at the prepice of what Finance Minister Bill Morneau called a “job churn”, characterized by deteriorating pay and job prospects.
“Millennials are working less full-time jobs. The number of full-time jobs for people aged 24 and under dropped 8% over the past 20 years. It did better in the age bracket of 25-29, but it still dropped a percent over the same period,” Last wrote.
“While it seems like it’s an extended adolescent vacation, it’s really not. This reduces the wealth building benefits of compound interest. The later Millennials begin saving, the more they’ll have to save,” she added. “If Millennials can’t find full-time employment until later in life, they don’t have the option of saving early.”
Not helping matters is the growing number of companies resorting to offering temporary work instead of long-term posts. “Since 2005, permanent employment for youth has dropped 2% to 68.7%.”
“Temporary workers made around 72% of their full-time counterparts in 2015. That’s more than a quarter less than their permanent friends – which is 28% less they can save. Millennials preparing for less permanent jobs, is preparing for less income,” Last explained.
The worst possible outcome—plunging consumer confidence, and a consequently weaker economy—might be unavoidable, the analyst concluded.
“More likely, people with precarious employment are dragging the index down. If you’re at risk of job churn, you’re more likely to delay making significant purchases, like a home.”
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