Recommendations for the 2025 Budget
- Recommendation 1
- Consolidate existing youth programs and provide permanent funding for the Youth Employment and Skills Strategy (YESS).
- Recommendation 2
- Renew funding for the Canada Service Corps at a minimum of $90 million annually.
- Recommendation 3
- Allow the National School Food Program to directly fund nonprofits focused on food security if no agreement has been reached with a province.
Introduction
In Budget 2025, BGC Canada calls on the federal government to renew its commitment to the Youth Employment and Skills Strategy (YESS) and Canada Service Corps (CSC), as they play crucial roles in equipping youth with the skills, experiences, and opportunities needed to thrive in the workforce. YESS and CSC funding supports essential training, employment services and volunteering placements, particularly benefiting youth from marginalized communities. These programs ensure ongoing investment in Canada’s future workforce, fostering economic growth and social inclusion while empowering the next generation to achieve their full potential.
Canada is witnessing a troubling decline in youth employment levels. Since January 2023, the Fraser Institute estimates a 3.8 percentage point drop, making youth employment levels nearly as bad as during the 2008-2009 recession1. These recent downturns are taking place against the backdrop of a long-term decline in youth labour market outcomes, marked by a sharp decline in youth attachment to the workforce. The Future Skills Centre suggests that delayed and weak attachment to the workforce can create lifelong damage to labour market outcomes for young Canadians and for the Canadian economy as a whole2. Urgent action is needed to make sure youth can successfully enter the labour market.
As Canada’s largest dedicated child- and youth-serving organization, BGC Canada (formerly Boys & Girls Clubs) is well positioned to help the federal government in bridging this gap. Clubs across the country run various cost-effective and affordable programs aimed at developing valuable skills for youth, strengthening their confidence, and helping them explore their interests. Clubs not only support the development of young Canadians, but also enable parents to stay in the workforce through early-years and after-school programming.
At BGC, we believe that opportunity changes everything. Research shows that children and youth who attend BGC Clubs have fewer interactions with the justice system, improved mental and physical health, and face fewer academic struggles. Ninety percent of youth report that, because of their involvement with the Club, they are more confident, are more excited to try new things and have more positive social connections 3. This is the kind of impact that can foster their participation in the Canadian economy.
A holistic approach to youth skills development
Declining mental health, academic achievement, and rising unemployment are keeping youth locked out of the labour market. To effectively bridge this gap, we need to adopt a long-term approach: first through academic support, then through volunteering placements, and ultimately through employment and skills development.
Acknowledging current fiscal constraints, we recommend making the Youth Employment and Skills Strategy (YESS) permanent, while also consolidating youth programs and spending from across government under the YESS. Consequently, BGC Canada calls on the government to permanently fund the Supports for Student Learning Program (SSLP), Canada Service Corps (CSC), and existing Youth Employment and Skills Strategy program.
Enhancing academic success
Thanks to the Supports for Student Learning Program 4, the federal government supports many initiatives to foster youth academic success. In 2022-2023, BGC’s Raise the Grade program supported over 4200 youth in their academic and professional journeys and boosted high school graduation rates among participants. The program, funded through 2025, equips youth with the necessary skills and confidence to pursue post-secondary education and enter the workforce. Continued funding will ensure that BGC Canada can expand its impact, addressing educational disparities and contributing to a more skilled and capable future workforce. In 2022 alone, over 70% of participants reported improved academic performance and career aspirations and higher confidence in their skills5, showcasing the program’s effectiveness in fostering positive outcomes for Canadian youth.
Fostering confidence and development through volunteering
Volunteering provides young people with valuable opportunities to enhance their confidence, explore their interests, and forge connections within their communities. Although not part of the YESS, the Canada Service Corps (CSC) is a crucial initiative that fosters youth engagement and community service across Canada. Preserving CSC is essential for empowering young Canadians to contribute meaningfully to their communities. Through CSC funding, BGC Canada runs LeadUp, offering volunteering opportunities across 24 communities from coast to coast to coast6. LeadUp participants reported better mental health skills and strategies and increased sense of belonging in community, with 51% being from equity-deserving groups.
Providing new employment and skills development opportunities
BGC Canada welcomed the launch of the Youth Employment and Skills Strategy (YESS)’ expansion in 2019. Today, it is a vital program that supports more than 140,000 youth in gaining the skills, experience, and opportunities necessary for successful transitions into the workforce. YESS helps address the unique challenges faced by youth, including those from marginalized communities, by supporting a wide range of initiatives across government departments. Preserving this strategy ensures continued investment in the future of Canada’s workforce, promoting economic growth and social inclusion while empowering youth to reach their full potential.
This program is vital for enabling BGC Clubs to offer affordable programming to youth. One of our most impactful initiatives, Skilled4Success, focuses on older youth by providing training and work placements. Impressively, over 90% of participants secured jobs or returned to school after completing the program.
Also funded through the YESS, Canada Summer Jobs (CSJ) enables Clubs to create up to 700 jobs for youth each summer, offering skills training, workforce readiness, and employment programs. Despite the evident impact of CSJ, BGC Clubs and many nonprofits have seen a decrease in allocated placements, while for-profit corporations are increasingly taking advantage of this funding. Given the high demand and limited capacity for additional investments, the federal government should exclude large, for-profit companies, including franchises, and prioritize sectors most in need.
Budget 2024 committed $351.2 million in the YESS through to 20267. While this was welcomed by BGC Canada, this funding has met less than 20% of the overall demand for youth employment supports across Canada and will sunset. In the context of the troubling decline in youth employment and overall attachment to the workforce, the YESS is essential to create opportunities for bridging this gap long-term.
- Recommendation 1: Establish the Youth Employment and Skills Strategy (YESS) as a permanent program and consolidate it to ensure adequate funding for the Supports for Student Learning Program, Canada Summer Jobs, and the Youth Employment and Skills Strategy Program.
- Recommendation 2: Renew the funding for the Canada Service Corps and allocate a minimum of $90 million annually.
Accelerating the delivery of critical youth commitments
Food Security
In addition to youth employment and skills development, BGC Clubs are eager to support the implementation of the National School Food Program. BGC Canada applauds the investment in this critical area, recognizing its profound impact on the well-being of youth across the country. The need for food supports is substantial and growing across Canada.
BGC Clubs currently provide nearly 7 million meals and snacks annually. Too often, this is the only meal Club youth receive each day. The National School Food Program relies on the participation and collaboration of provinces and territories. While BGC Canada acknowledges the importance of their involvement in implementing this program, we emphasize the urgent need to enhance capacity in this area. BGC Canada calls on the federal government to allow direct funding to nonprofits addressing youth food insecurity when agreements cannot be reached with specific provinces or territories.
- Recommendation 3: Allow the National School Food Program to directly fund nonprofits focused on food security if no agreement has been reached with a province.
Youth Mental Health
BGC Canada was pleased to see the federal government’s commitment in youth well-being through the introduction of the Youth Mental Health Fund earlier this year. As part of our ongoing commitment to addressing the growing concerns in this area, we believe it is essential to emphasize the need for targeted investment. BGC Clubs provide a proven solution to emerging challenges such as screen time and social media exposure by creating supportive environments that enhance youth resilience and reduce anxiety. We are eager to support the implementation of this fund and encourage the government to support initiatives that have been successful in improving youth mental health.
Conclusion
This Budget is an opportunity for the federal government to renew its commitment to youth across Canada by supporting programs that work. Amidst declining youth employment levels, the government must support skills development and placement opportunities for young Canadians in order to facilitate their integration in the workforce. The federal government must also deliver in critical areas for youth, as it has already committed to help reduce food insecurity.
Investments in before- and after-school care and the community services workforce will also help build a stronger and more resilient Canada for generations to come. This requires investing in the workforce of the community sector to address labour shortage issues and ensure robust, high-quality programming for our youth. BGC Canada continues to call for the creation of a workforce development strategy for our sector, in collaboration with other human services federations.
To amplify BGC’s impact and support more youth facing employment challenges, we also see a valuable opportunity in expanding our programs to additional communities, in partnership with the federal government. This collaboration would help ensure that even more youth benefit from essential skills development opportunities, especially in rural and remote areas. We look forward to working with the government to achieve this vision.
About BGC Canada
As Canada’s largest dedicated child- and youth-serving organization, BGC Canada (formerly Boys and Girls Clubs of Canada) provides vital programs and services to more than 150,000 children, youth and families across Canada. For more than 120 years, our Clubs have been there for vulnerable children, youth, and families. Through our life-changing programs, community-based services, and relationships with peers and caring adults, BGC Canada helps kids and teens develop the skills they need to succeed.
At BGC, we know that opportunity changes everything. Children and youth who attend BGC Clubs have fewer interactions with the justice system, improved mental and physical health, and struggle less with academics, based on peer reviewed research. Ninety percent of youth report that because of Club, they are more physically active, more confident, and have more people they like spending time with. These benefits generate more than nine dollars for every dollar invested at a Club, while ensuring that parents can stay in the workforce.
1 Recent Trends in Youth Employment (fraserinstitute.org)
2 10 recommendations to reduce long-term labour market scarring on youth – Future Skills Centre • Centre des Compétences futures (fsc-ccf.ca)
3 Learning & Impact | BGC Canada
4 https://www.canada.ca/en/employment-social-development/programs/supports-student-learning.html
5 Evaluation report conducted by the Social Research and Demonstration Corporation in August 2022
6 LeadUp Program snapshot
7 Chapter 2: Lifting Up Every Generation | Budget 2024 (canada.ca)
