Stephen Poloz, Governor of the Bank of Canada, made a statement at a news conference Nov. 3 about unemployed youth that is receiving criticism from student groups.
“Having something unpaid on your CV is very worth it,” Poloz said at the conference. “If your parents are letting you live in the basement, you might as well go out and do something for free.”
According to Jonathan Champagne, Executive Director of the Canadian Alliance of Student Associations (CASA), the Alliance was “concerned by Mr. Poloz’s comments, as they were unhelpful, inaccurate, and not reflective of the challenges faced by youth.”
CASA is a “non-partisan, not-for-profit national student organization” composed of 22 student associations representing 280,000 post-secondary students, according to Champagne.
“In 2013, the National Association of Colleges and Employers (NACE) conducted a survey of 10,000 graduating students who had applied for jobs,” Champagne said.
“The results of NACE’s survey show that 63 per cent of paid interns received at least one offer. In comparison, only 37 per cent of unpaid interns got an offer . . . not much better than the results of those with no internships, in which 35 per cent got at least one job offer,” he said.
In an address to the House of Commons Finance Committee Nov. 4, Poloz said, “We all acknowledge that if you come out of school and you spend a year or two failing to get something, that each year there’s another crop of new graduates coming out and competing for the new job that is created. So the scarring effect can last for some time.”
Champagne disagreed with Poloz’s statements.
“The fact of the matter is, very few young people can afford to work free. If an unpaid internship is a prerequisite to entering the labour market this not only perpetuates our social inequality but it also shuts the door on many qualified and skilled young people,” said Champagne.
“The governor’s comments are ill-informed,” Champagne said.
He included CASA’s suggested solutions to the problem of student unemployment.
“Incorporating paid work opportunities into the classroom setting helps to better prepare graduates in entering the labour market,” he said. “We also have to recognize that young people . . . need mentorship and opportunities. It is incumbent on employers to take part in this training, career growth, and skills.”
