It used to be that leaving the family home for post secondary school or the job market was an important rite of passage to adulthood. But, for many of today’s 20-somethings, acheiving this milestone is taking a bit longer than it did in the past. In fact, shocking stats show that 42.3 per cent of Canadians aged 20 to 29 are still living with their parents, even after graduating and joining the workforce.
Why are adult children sticking around so long? It goes far beyond their love of Mom’s cooking – studies show that today’s generation of young adults face significantly higher financial hurdles than in decades past.
Higher Education, Lower Employment Possibilities
The main issues facing this group aren’t their qualifications or their level of willingness to work – it’s just that there are fewer jobs to go around. Canada’s unemployment levels recently increased back up to 7.2 per cent – and young adults are among the most unemployed and underemployed workers in Canada. Last July, the youth unemployment level actually exceeded the national average by a factor of two, for the first time in 30 years.
Underemployment, which can be defined as being employed in a job that does not require a post secondary education, is becoming more prevalent for this group. It’s an old fashioned case of competition – with more kids heading to college and university than in the past, it’s become tougher to get a foot into the employment door. With fewer qualified job openings to go around, young adults are turning to lower wage positions, just to make ends meet.
The Cash Flow Crunch
As if being hard pressed to find a job wasn’t bad enough – with inflation and cost of living taken into account, new grads are actually earning less than in the past. They’re also facing sky high debt commitments earlier in life – such as paying off those aforementioned degrees – long before they’re ready to consider saving for home ownership.
And let’s not forget just how expensive an education in Canada is – our recent study on the Cost of the Future found that on average, a Canadian university tuition will cost $56,124 – and take 14 years to pay off in full. Keep in mind that this timeline is for grads who do find work in their specific fields – those in underpaying positions have it even tougher.
Moving Out Ain’t Cheap
Another prohibitive cost facing those living with their parents? Actually moving into an apartment or house of own’s own comes with a hefty price tag. We’ve broken down the costs, from first and last month’s rent, to start up costs like furniture, as well as ongoing monthly bills. The total? A whopping $5,397.50! With prices like these, no wonder new grads are hiding out in their parents’ basements.
Give Mom The Gift of Getting Out
The good news? To one deserving parent / adult child duo, RateSupermarket.ca will give the Ultimate Mother’s Day present – a grand prize pack valued at $5,397.50! Stuffed with cash, supplies and resources to aid in the moving process, it’s sure to get you out of the basement and into an abode of their own. Five finalists will be chosen, with the grand prize winner selected by popular vote. To enter, visit Getoutofmyhouse.com – and let mom know she’ll be getting that sewing room after all.
This post is also available in: French