Inflation is Hurting Young Canadians, But Partisan Blame Will Not Solve It

In recent years, Canadian youth have faced unprecedented economic challenges. The rising cost of living, stagnant wages, and a shortage of affordable housing have combined to erode the financial security of young workers. Yet, political discourse around these issues often reduces them to simplistic blame games, obscuring the deeper, structural causes that require urgent attention.

In July 2023, Conservative Party leader Pierre Poilievre declared that "after eight years of Trudeau, life costs more for our seniors, our youth and our workers after his inflationary carbon taxes and deficits have driven up the cost of everything". While it is true that inflation has burdened many Canadians, this framing distorts a complex, global economic issue into a partisan narrative.

Inflation is not the result of Canadian fiscal policy alone. Global factors, most notably the COVID-19 pandemic, disrupted supply chains worldwide, with nearly half (48.6%) of Canadian businesses reporting difficulties acquiring inputs and supplies in 2023, according to Statistics Canada. Attributing domestic inflation primarily to carbon pricing or deficits ignores these global realities. Such narratives distract from the policy innovations truly needed to support younger Canadians, who are already disproportionately affected by rising costs and economic insecurity.

Young Canadians, especially those employed in lower-wage sectors like retail and food services, are highly vulnerable to inflation. In 2024, 30% of retail workers and 40% of food service workers were aged 15 to 24, according to RBC. Without targeted policy responses, these workers will continue to lose purchasing power, deepen their debt loads, and delay major life milestones such as homeownership.

Moreover, Canada's housing market is under immense strain. According to the Canada Mortgage and Housing Corporation, the country is short 3.5 million housing units needed to restore affordability by 2030. This shortage compounds the financial pressures on young adults and contributes to a broader affordability crisis. Again, simplistic political explanations fail to account for these systemic market failures.

While it is fair to scrutinize government spending decisions, it is misleading to suggest that inflation is a uniquely Canadian or purely political phenomenon. According to Statista, Global inflation averaged 5.8% over the last five years, reflecting overlapping crises including supply chain breakdowns, energy market disruptions, and labor shortages. Ignoring this context risks not only policy misdiagnosis but also the perpetuation of ineffective solutions.

Rather than engaging in partisan blame, policymakers should focus on tangible measures that protect the financial wellbeing of young Canadians. One such measure is indexing minimum wage rates and government student grants to inflation. This policy would ensure that as the cost of living rises, so too would the incomes and financial supports available to young people.

Indexing wages and grants is not a radical proposal; it is a practical response to economic realities. It would stabilize purchasing power, prevent erosion of living standards, and signal a commitment to fairness in a volatile economy. By securing the economic foundation of young Canadians, the country would also foster broader economic resilience and social cohesion.

The challenge before us is not merely to win political arguments but to build durable solutions. A serious approach to economic justice for youth requires moving beyond slogans and toward policies grounded in the real conditions facing Canadians today. If we are truly committed to building a future for all generations, the time for structural action, rather than political campaigning, is now.

Written By: Jasper Sauerland, Policy Strategist - Engage