1) Graduates are facing challenges entering the workforce due to an hourglass labor market with growth only at the top and bottom, leaving graduates stuck in temporary or low-skilled jobs. 2) Early integration strategies like work experience programs and career services in school as well as post-graduation support programs have shown success in other countries in reducing unemployment among new graduates. 3) A national school-to-work policy, service delivery reform, and clear pathways between education and the labor market are recommended to address high youth unemployment and underemployment in Canada.

1. Donnalee Bell
Senior Consultant

2. Session Outline
What’s the concern for today’s graduates? A look at
what the research says
Highlight some of the initiatives working to get grads
working
Look at the recommendations from the Research
Examine and consult with you on the need for a
School-to-Work Action Group in Canada

3. Poorly Integrated New Entrants
(PINEs)
Who are They?
According to OECD (2010):
Youth with qualifications (diplomas or
degrees)
Stuck in temporary work, unemployment
or inactivity even in times of economic
growth

4. PINEs: Why are They a Concern?
Global PINE growth in Europe and US
Represent 450,000 Canadian Youth
Particularly vulnerable during and since the
2008 Recession
In Canada, we are not connecting with a vital
talent pool in a time of skill shortage
Educated but not Employable - This is the labour
market paradox for Gen Y!

5. How Bad is it in Canada?
Not Bad (pre-recession)
In “Off to a Good Start,” (2010) the OECD painted a rosy
picture for Canadian youth
Smooth transitions (75% of youth find permanent and
full-time work)
Youth move from low-wage to higher wage jobs
quickly
Long-term unemployment low
Canadian youth graduate with significant work
experience

6. How Bad is it in Canada?
Bad (pre and post-recession)
Under-employment number 2nd highest in OECD since 2005
More and more youth are in precarious employment
(temporary contracts, part-time)
Persistently high unemployment (in general and in the
summer months) impacting ability to gain workplace skills
Glut of university generalists that don’t directly connect with
the labour market

7. What are the Barriers for Graduates?
An Hourglass Labour Market
High Sensitivity of Youth to Labour Market
Fluctuations
Lack of Career Education and Services and Safety
Nets
The Education-Labour Market Disconnect

8. The Hourglass Labour
Market
• Growth of knowledge worker jobs
and entry level jobs
• Career progression has
fundamentally changed
• Glut of PSE graduate raises the
credential level of both poles
• Youth getting stuck in service sector
jobs they work in during school
• Need for career management skills
to maneuver in this labour market
Chart 1: Ontario Job Distribution by Skill Categories, Ontario 1991-2006 (Zizys, 2011, 27)

9. Sensitivity to Labour Market
Fluctuations
Last in and first out phenomenon
Disproportionate numbers of youth hit because they
are working in sectors hardest hit by recessions (e.g.
construction and retail)
PINEs may fall through the service cracks

10. Lack of Career Education/Service and
Safety Nets
Lack of consistency
Vulnerability to government funding priorities
Youth specific service is dwindling (e.g. Ontario)
Research confirms the need for high-quality career
guidance = 1. highly qualified professionals; 2. timely
and accessible local LMI

11. The Education-Labour Market
Disconnect
Too many youth with the same qualification
Over-qualification of the entry level
PSE institutions that are not making the link to the
labour market
Employers not investing in the training of youth or
their youth hires

12. PINEs: What Works?
Early Integration Strategies
Post-graduation Strategies
Demand-side Strategies
Strategies for Diverse Groups

13. Early Integration Strategies
Career service delivery in advance of graduation
that includes:
Work experience,
Career management skills training,
Clear information on pathways to the labour market
Career planning that helps youth be intentional with their
careers
Canada’s approach in this area is fragmented

14. University of Regina (UR) Guarantee Program
(Saskatchewan)
Guarantees a free year of The program consists of:
tuition to students in the Transitional support services
program who do not Regular academic advising
secure career related Exam preparation
employment within 6- Time management
workshops
months of graduating. Career development seminars
Co-op programs
Mock interview exercises
Networking events

15. The Guidance Act (Denmark)
Goals to increase secondary school graduation rate to 95% and
have 50% complete a higher credential
All ages policy starting in Grade 8
All labour market pathways are identified and supported
Services include:
eGuidance
Specific Youth Guidance Centres focused on all education and
work transitions points
Wide stakeholder involvement through national dialogue forums
Guidance counsellor training requirements
Centre of Guidance Research has been established to build an
evidence-base
Policy backed by appropriate funding resources

16. Post-Graduation Strategies
Includes:
graduate guarantee programs
subsidies and supports for entrepreneurs
graduate databases
graduate access to income support
work experiences (internships)

17. Work Factory (Sweden)
A local community-based program to help secondary
school graduates on income support find work or enter
further training
Participants take part in a 3 month intensive training to
build employability skills, increase self-esteem, health and
fitness
60% of participants find work and are able to support
themselves, 13% enrol in university or college, 6% receive
vocational training
Program has saved municipality 14 million SEK (approx. 2
million CAD)

18. Demand-Side Strategies
Includes:
Wage subsidies and subsidies to
accommodate apprentices
Employer partnerships with education
Outreach to employers to participate in
early and post-graduation programs

19. Partnership Brokers (Australia)
Inclusion of key stakeholder groups including
employers who plan locally to address youth
unemployment by providing a series of needed
interventions to high school students including:
career planning,
work experience,
pathways to employment,
pre-employment training, and
building school/teacher capacity

20. Diversity Strategies
Policies and programs aimed at PINEs
need to look at the full PINEs population
as well as specifically at diverse groups

21. The Aboriginal Youth Work Exchange
Program (Ontario)
Program to support diversity
recruitment issues within the
organization
Recognition that programs need to
include the young person’s community
in the process

22. Moving Forward…
“A good hockey player plays
where the puck is. A great
hockey player plays where the
puck is going to be.”
Wayne Gretzky

23. Recommendations
National School-to-Work Policy
Research
Service Delivery Reform
Focus on Clear and Alternative
Pathways to the Labour Market

24. Your thoughts…
In terms of school-to-work policy/strategy, what’s
already working?
What are the main issues that need to be addressed?

25. Action Group Consultation
Read the School-to-Work Action Group purpose
statement.
In your opinion, would an action group be a good
vehicle to address these issues?
What needs to happen to create this group and to
make it strong?

26. Literature Review and
Research Report on
PINEs is available at:
www.ccdf.ca