StatsCan releases study on potential earnings losses among high school, postsecondary graduates

July 31, 2020

Statistics Canada has released a new study that presents estimates of the cumulative earning losses that this year’s graduating classes could experience in the next five years, depending on the scale of the economic downturn. The study investigates five scenarios for this year's youth unemployment rate – 16%, 19%, 22%, 25%, and 28% – in comparison with the long-term historical average of 14.3%. The researchers note that, with an unemployment rate of 28% for example, students belonging to the 2020 class of high school, college, and bachelor's degree graduates could lose up to $44K over the next five years. While the report notes that these potential losses do not outweigh the potential long-term earning benefits for persons who attain a postsecondary degree, they warn that other factors will impact graduates’ earnings. For example, the report notes that “this year's female postsecondary graduates may incur larger earnings losses during the next five years than their male counterparts.” StatsCan | The Globe and Mail (National)