According to records obtained through an access to information request, Canadian Tire and Tim Hortons are the companies making use of the Ontario’s Youth Employment Fund most frequently.
Launched on Sept. 23 by the Ontario Ministry of Training, Colleges and Universities, the fund is a wage-subsidy program for job placements of four to six months that aims at helping young workers transition into permanent employment.
But critics doubt the kind of jobs obtained through the government program will lead to real careers. “The program is enabling them to find these jobs but I don’t see this as a long-term employment solution,” says Hashmat Khan, economics professor at Carleton University.
So far, seven employers have had 20 or more placements. Included in those are Canadian Tire, Tim Hortons, Paragon Security and Mucho Burrito. Records also show that 76 per cent of the financial support granted through the program was spent on either transportation or clothing. Only 5 per cent was spent on training activities.
Khan says this data is alarming because it shows that young employees are easily replaceable. “Suppose that there is a massive downturn in the economy, almost all kinds of jobs are at risk but potentially these jobs would be at a greater risk because there is no skills specificity that is being acquired through this program.”
The program targets disadvantaged youth, and data shows that almost 30 per cent are on social assistance and come from rural areas. Khan says that this explains why so much money is being allocated to transportation and clothing.
“My sense is that it is helping the youth from this particular social economic background and it looks more and more like an income subsidy rather than an employment scheme.”
The program is part of the Ontario government’s youth jobs strategy. The government is investing $295 million over the next two years to create new job opportunities for 25,000 young people.
Those between the ages of 15 and 29 who are unemployed, not in school full time and resident in Ontario are eligible for the program. Employers can receive up to $6,800 to help cover the cost of wages and training for new hires when they provide a job placement. Employment centers throughout Ontario work directly with young people to connect them with job placements.
When asked how the employment center at St. Lawrence College in Ottawa is trying to ensure young people are gaining skills and have a chance at long-term employment, coordinator Heather Morrison said, “Well sometimes it’s a hit and miss.” “What we try and do is go to employers that we had good working relationships with in the past.”
Morrison said the employment centre is keeping a close eye on all job placements, with monthly visits to make sure everything is going well. “We do an exit interview and we have to have an outcome.”
But although outcomes are being tracked, Khan says it does not tell us whether or not the placements were successful.
So far, the program has reached its target in providing almost 6000 job placements. “Yes they are meeting their target but in some sense their potential is not really being honed or developed through this,” says Khan.
But then why would the Ontario government put money into basic job placements like Tim Hortons that can easily be obtained by anyone?
Khan says its politics. “A lot of people may have a lot of questions about why my tax dollars is going to this particular cause… but because it is couched as an employment scheme it may sound more positive.”
Data on whether or not the job placements are leading to long-term employment is not yet available.
Please look at annotated document to see how the records were helpful.
ATI requests at the Federal, Provincial and Municipal level.
Previously released requests: Request 1. Request 2. Request 3.