Labour lawyers and economists are criticizing Bank of Canada governor Stephen Poloz over comments he made suggesting that youth work for free in order to avoid the “scarring” of long-term joblessness.

Poloz cited the problem of graduates living in their parents' basements, unable to find work.

“The longer it takes for a jobless youth to get a job, the more likely it is that a new graduate takes the kid in the basement’s place,” he told reporters after a speech in Toronto Monday.

“Having something unpaid on your CV is very worth it, because that’s the one thing you can do to counteract this scarring effect,” Bloomberg quoted Poloz as saying.

Poloz repeated his stance in front of the House of Commons’ finance committee on Tuesday.

“Are you aware that unpaid jobs increase income inequality?” Liberal MP Scott Brison asked Poloz.

“I would say that there’s some truth to what you’re saying, but when there are those opportunities, people should grab them,” Poloz responded, as quoted by Business in Canada.

The bank governor's idea drew criticism from economists and labour lawyers alike.