As I was doing some research for a post about the weird dynamic we have in the Canadian labour force, an interesting fact stood out to me – Canada has one of the highest rates of university-educated people in the world, yet we also have a massive shortage of skilled labour. I had always thought this was probably true because of anecdotal evidence, but the amount of empirical evidence is pretty solid. When you think about, the natural balance of supply and demand was already shouting from the roof top that we have a massive skills gap in this country. If you want to know the current state of the labour market you don’t have to fire up your Google machine, simply ask the plumber or electrician you’re talking to what their hourly rate is, and then walk down to your local Starbucks and see how many degrees the Baristas behind the counter have to their credit.
Certain statistics that came out last week claimed that over 90% of people with a university degree had jobs, and the actual unemployment rate (several of the people without jobs were not considered to be in the labour market for various reasons) was around the 4% mark. this can be misleading though. Sure, people are employed (they likely have some strong incentives to be as most young graduates have no assets and increasingly a pile of debt) but are they employed full-time, and in jobs that they believe are part of their chose field, or are in any way connected to their degree? The data on that is much harder to track down and much less conclusive, especially for certain types of degrees.
The conclusion I’m coming to is the same one that has been lingering in the back of my mind for years – we need to do a better job of letting students understand the realities of the current labour market. Routinely we see teachers, career counsellors, and parents hold up university as the only form of “elite” education in Canada, but this is becoming increasingly harmful to not only our youth, but the future of our labour market as well. The invisible hand of the economy is sending a pretty solid message to us when young welders and mechanics are often making double the hourly wage that their “better educated” peers are. Why do we continue to look down our nose at the trades and skilled labour when there is so much to recommend about those careers? Personal finance gets a lot easier when you have a post-secondary education geared towards an in-demand field, and low student debt levels – I know that much!
On to some of the writing we thought was pretty cool this week:
SB @ One Cent at a Time writes Forex Trading Pros and Cons – Forex trading and stock trading are two different forms of financial trading. They may both represent two different ways to make money from the financial markets, but they have some subtle differences
SB @ Finance Product Reviews writes Barclays Online Saving Account Review – Barclays Saving account product targets US consumers with an instant access saving bank account and longer-term CD products. Read if it is good fit for you
Steve Zussino @ Canadian Personal Finance writes Why Kickstarter is overrated as an investment – Have you heard of Kickstarter? Kickstarter is a crowd funding website for creative projects. I wanted to share some thoughts why it is a poor investment.
Miss T. @ Prairie Eco Thrifter writes There’s No Such Thing as Cheap Food – If there was ever an item to spend a little more money on, it’s the food we put in our bodies each and every day. Why so many of us don’t blink when paying $4.00 for a Starbucks latte but then complain about a $2.00 organic tomato I will never understand. Food and water are the most important products we can buy; why do we look for the cheap way out?
Mich @ BeatingTheIndex writes Pinecrest Energy: Highlighting One of the Best Junior Oil Stocks in Canada – One of a few light oil stocks (99% oil) that enjoys a healthy balance sheet, top tier netbacks, high growth and a lot of running room in a proven low risk light oil play.
Steven Zussino @ Grocery Alerts writes How to turn a $23 dollar pork leg into 45 meals – Meat is one of the most expensive items we buy at the grocery store. I have no skill nor do I know how to butcher a whole leg of pork but within 30 minutes the whole leg was cut up into roasts, pork cutlets and pork stew. We managed to create 45 servings approx. for $22 and 30 minutes of work.
krantcents @ KrantCents writes The 3 Y’s of Success – The 3 Y’s of Success is the twenty-fifth in a series of articles to help you reach your goal.
SFB @ Simple Finance Blog writes What is Offshore Savings? – Offshore savings is an aspect of offshore banking that focuses on just savings accounts. This is a popular option for many people looking to diversify where their cash is held, but don’t necessarily need the full features of an offshore bank. Having an account offshore can offer diversity that being in a single country cannot…
Corey @ Steadfast Finances writes Should You Build Your Own Home? – Owning a home is the dream of most middle-class families. Not only does it offer the ability to be in control of your own housing environment (as opposed to renting), but it offers long term financial security. Yet, it’s not always attainable. As we have mentioned before, buying a house can be difficult with the recent economy.
Hank @ Money Q&A writes Five Professional Athletes Who Are Struggling Financially – I always find it so interesting to see some of the inner workings of professional athletes and famous people’s finances. Below are five professional athletes who filed bankruptcy.
Kevin @ Thousandaire writes I Saved a Bunch of Money on Food Last Week – I identified a spending problem and I fixed it. I saved a bunch of money by not eating out last week.
Kyle @ The Penny Hoarder writes How to Earn Extra Money by Renting Out your Home Wi-Fi – Why not make more money by renting out Wi-Fi access at your home?
YFS @ Your Finances Simplified writes How I Almost Got Cheated out of 650 bucks – So as you all may know we recently purchased our 3 rental property. I did a lot of talking about in the following posts.
John @ Married (with Debt) writes Does America Need Small Businesses to Fail? – Does the American economy need small businesses to fail? And from this question: does the economy depend on having both losers and winners?
Sustainable PF @ Sustainable Personal Finance writes Do Parents Have To Help? – Just how far should parents go to ensure their children have reduced debt burden after they graduate?
Jennifer Lynn @ Broke-Ass Mommy writes Bitcoin, the ‘Comeback Kid’ – Bitcoin is a fascinating concept! Read about how it’s making a comeback and see if it could have a place in your financial arsenal?
Maria @ The Money Principle writes Cuts in public spending are not going to affect front line services! – In this post how cuts in public spending affect adversely public services is discussed through my latest business trip experience.
JP @ My Family Finances writes Average Family Spending On Back-to-School Shopping in 2012 – This year total family spending will be a record $83.8 billion. How do you stack up against the average family spending on back-to-school shopping.
MR @ Money Reasons writes Earning 25 Percent On My Previous Mortgage Payment – Earning 25 Percent On My Previous Mortgage Payment by overlapping some awesome money instruments
A Blinkin @ Funancials writes Your Obsession With FREE – Are you drawn to things that are BOGO (buy one get one free)? I’m guessing you are. We all are. The sound of FREE is music to our ears. Why? Because it’s not only free, it’s RISK FREE. The majority of us are such sissies that we would rather “not lose” than “win.&
L Bee @ L Bee and the Money Tree writes Everyone remembers their first…. – Credit Card that is…. I remember one day in late fall of 2005 I didn’t have money to pay for some sisterhood retreat I wanted to go on. So I got online and applied for my first credit card. It was shockingly easy and I received it in the mail less than a week later.
Shawanda @ You Have More Than You Think writes The Rent vs. Buy Debate: Why Renting Makes Sense – Is it better to buy vs rent? Buying your home may give you the warm and fuzzies. But before you take on the expensive cost of home ownership, run the numbers.
Crystal @ Budgeting in the Fun Stuff writes Life is Too Short to Spend Time Ironing Sheets – Here is the list of things that I refuse to waste time on since they do not give me enough satisfaction to justify the time spent. Life is too short.
Daisy @ Add Vodka writes Handling Mistakes at Work – When I first started in internship #1, I was so excited to get a little bit of real world experience in my field.
Corey @ 20s Finances writes Five Ways Anyone Can Make Extra Money – Ever since I started making a little extra money from my hobby (and realizing the difference that it makes on your monthly budget), I have been a little obsessed with different ways to make money. There is so much more that you can do with extra money. The idea of it being extra money can be dangerous though because it can encourage more splurging.
Don @ MoneySmartGuides writes New Consumer Finance Protection Bureau – 9 Things You Need to Know – The Consumer Finance Protection Bureau was created to help regulate financial businesses and protect consumers from the kinds of practices that contributed to the recent recession.
Jester @ The Ultimate Juggle writes Starting Out Rich Is Not As Satisifying As Becoming Rich – My background from being poor to working and believing that I could become wealthy.
Suba @ Broke Professionals writes The Hidden Costs of My Husband’s New Job – My husband’s new job has come with some major hidden costs. Here’s what we’re doing to attempt to deflect his job’s negative impact on our bottom line.
Jason @ Work Save Live writes Saving a Down Payment For a House – Our Journey June 2012 – Saving a Down Payment for a House The end of May and throughout the month of June presented a lot of great changes for us.
Amanda L Grossman @ Frugal Confessions writes My Family’s Circle of Savings – I try to imagine the looks on the faces of Transportation Security Administration Inspectors when they x-ray my bag full of liquids, perishables, drugs
Passive Income Earner @ The Passive Income Earner writes Dividend Growth Index – 2012 Q2 Results – We are currently in our 3rd quarter of the Dividend Growth Index (DGI)which started back in September 2011 as a project to see how our picks (a group of dividend focused bloggers) would perform over time compared with an index. Here is a background on the Dividend Growth Index (DGI).
PPlaner @ Provident Plan writes Shop Around for Your Property, Not Your Bank – Looking for a home? If so, then you know shopping around for both your mortgage and your new home can save you thousands of dollars.
Wayne @ Young Family Finance writes Tips for Buying a New Car – Learn a basic step-by-step guide for buying a new car. It’s not as easy as you might think.
Daniel @ Sweating the Big Stuff writes The 6 Best Wedding Gifts To Give – Don’t know what to get the bride and groom? Here are some great suggestions that you simply can’t go wrong with!
PITR @ Passive Income To Retire writes Why Blogging is a Respectable Business – Find out why blogging is a respectable business model and why it aligns with the future of online usage.
Tushar @ Start Investing Money writes Why is it Important to Create Your Own Unique Investment Plan? – Read my article on why it is important to create your own unique investment plan!
Aloysa @ My Broken Coin writes My Top 10 Worst Shopping Mistakes – Read these top 10 worst shopping mistakes! Do you do the same ones?
Luke @ Learn Bonds writes How to Predict Inflation and Deflation – Inflation is something that market participants care a lot about. How exactly do you go about predicting inflation? Learn here.
Bridget @ Money After Graduation writes What you can learn about blogging from 50 Shades of Grey – Oh yeah, you read that right. I promise this is NOT a joke post. I have some serious advice for you guys here. Just like Christian Grey, I don’t mess around! Now, I’m not going to launch into a lengthly review about the book, though I am tempted.
Jon the Saver @ Free Money Wisdom writes Should You Invest with Less the $5,000? – If you have a small amount of money, should I invest on a regular basis? Let’s answer this question together and start multiplying our money!
J Wayne @ All Things Finance writes The State of Social Security – Social security has often been called a Ponzi scheme. This infographic details why it has been labeled as such.
Bryan Maltier @ Gajizmo.com writes Millionaires By The Numbers – Up Close and Personal – Meet the millionaires of the United States. With 8% of all U.S. households qualifying as millionaires, the million-dollar club is more attainable than ever with the right financial habits and attitude.
Invest It Wisely writes How Hard is It to Become a Freelancer? – Do you find that the world is becoming a little bit more entrepreneurial, these days? Read my experiences and see if you agree!
Eddie @ Finance Fox writes If You’re Traveling, Don’t Forget To Pack Travel Insurance – Travel insurance protects more than just the expense of your flight.
Ted Jenkin @ Your Smart Money Moves writes The Best Time To Buy A Home Might Be Now – From a financial perspective, the window for pouncing on a once-in-a-lifetime deal on a home might be narrowing.
Roger the Amateur Financier @ The Amateur Financier writes Job Hunting Success – Interview 201: At the Interview, and Beyond – Some advice on how to appear more confident and assertive during your job interview, as well as following up after your interview
MMD @ My Money Design writes Lessons in Retirement from the Movie “About Schmidt” – Don’t let your retirement be like Warren Schmidt’s from the movie “About Schmidt”. Enter the age of retirement with a plan and purpose.
J.P. @ Novel Investor writes How Often Should You Do An Investment Review? – Tracking your investments is more than glancing at those monthly statements. A regular investment review needs to be done.
Jessica @ Budget for Health writes Top Secret Tips for Working out – Pursuing physical fitness now can significantly contribute to your level of enjoyment when retirement comes along. These fitness tips should bring a good laugh.
Teacher Man @ My University Money writes Student Lines of Credit – Student lines of credit are great to have because of the insanely low interest rates. We’ll show you why these are superior to most loans.
Carnivals
Carnival of Financial Camaraderie
Thanks for inclusion, I really appreciate it. My understanding of skilled labor is it has nothing to do with a college education. It is a segment of the workforce that has skills that create significant value. Skilled labor would be electricians, plumbers, carpenters, or certain types of manufacturing workers. It is separate from a college education because the skills are specific and have years of training.
There is some truth to what your saying KC, but at the same time a lack of people going into those fields has to have an effect on the overall amount of experience in the work force right?
Hello Young & Thrifty, thank you for the link luvin’. <3 Really nice site here.
Since I'm continuously receiving email invitations to those 'Rich Dad, Poor Dad' seminars (and, wondering whether it's a scam), I'll be returning to read your article about those.
There seems to be some ample evidence… Thanks for stopping by!
It’s the same in the UK: all through your high-school years you’re made to think going to university is the only, and best, way to be successful later on in life. Then when you get there and graduate you end up with over-inflated aspirations as to what job you should get and how much you should get paid. Consequently, the reality is now that there’s just too many graduates who aren’t equipped to do many of the jobs that need to be filled and they don’t want to be a plumber or electrician anyway.
I think the situation is different in other countries like Sweden and Finland where university isn’t dubbed as the be all and end all though. We need to take a leaf out of their book and re-focus the way we handle 16 year old’s transitions after compulsory education.
Great point Julian on handling the transition better. I can’t but feel that 50 years ago people grew up a lot faster because they were exposed to decision-making roles much sooner.
This article is great and important for new high school grads to read. I took a Commerce degree with a major in IT and minor in Finance that lets me do multiple things. It frustrates me hearing about teachers that cannot find full-time work (they are churning out teachers too quickly).
Be sure you can get a job when you graduate and do not get into thousands of dollars of debt.
Thanks for the include.
I hear you Steve, this will be a central theme for me to comment on going forward, both in my role as a teacher, and here on Y and T.
Thanks for the mention!
Thanks for the mention!!
I had a similar conversation with some co-workers, there will be a huge shortage of blue collar workers in Canada in the next 5-10 years. We’re even seeing it now, where my employer is considering bringing in skilled laborers from Europe or Asia, because the quality of them in GTA is limited or maybe they just need to increase the hourly rate, but than again, that has to coincide with the skill they bring.
Yup. My prediction is that in 5 years tradespeople will commonly be making in the $100,000 range (some are already doing it).
a 4% unemployment rate is awesome, wish we had that in US. Thanks for including my post
Hey SB, what is the unemployment rate for people with degrees in the USA. Do you happen to know?
Thanks for the mention. And the way I see it, we’ve got a lot to be envious of in Canada!
Great article! People need to use as many avenues as possible to build up the skills and the education for your future – The path you would like to take in life is often filled with twists and turns!
Thank you as well for including my article – The Best Time To Buy A Home Might Be Now
Thanks for the inclusion! I wrote a post about using my college degree not too long ago. My husband and I both got jobs that we went to school for (dietitian & mechanical engineer). We both chose majors that would lead to certain jobs as opposed to a more broad major like business or communications. Some friends of mine who didn’t have a plan when they those those majors have settled for jobs that don’t even require a degree.
and I bet your glad you did right?
Thank you for the inclusion and the hosting – I really appreciate it.
As a university graduate myself, I’ve always agreed with “The invisible hand of the economy is sending a pretty solid message to us when young welders and mechanics are often making double the hourly wage that their “better educated” peers are. Why do we continue to look down our nose at the trades and skilled labour when there is so much to recommend about those careers?”!
Education doesn’t only mean some stamp of paper, in spite of what the public system will brainwash you to believe!
That said, I have no regrets about my Uni education as it made the most sense to me, I gained a broad knowledge base in both theory and practice, and university had the most realism and least brainwashing of all the levels of education, at least in my program.
Perfectly said Kev! I agree with each of your statement completely.