B.C. Grads Battle a 'Brutal' Job Market: AI, Automation, and Youth Unemployment Crisis

Recent graduates in British Columbia are navigating one of the toughest job markets in decades, with youth unemployment hitting a 15-year high. Experts are divided on the causes, pointing to economic slowdowns and structural shifts driven by AI and automation.

The Struggle for Entry-Level Jobs

Rena Laterie, a biochemistry graduate from the University of Victoria, faced months of rejection despite an impeccable resumé. Her breakthrough came unexpectedly when she dropped off her resumé in person at a compounding pharmacy while picking up medicine for her sick cat. This informal interaction led to a job offer, highlighting the challenges of traditional online applications.

In B.C., the youth unemployment rate reached 13% in December 2025, up from 8% three years ago. The province is unique in that youth employment has not fully recovered post-pandemic, dropping by about 5% between 2019 and 2025, while the young population grew by 11% due to immigration.

Economic Slowdown vs. Structural Shifts

Economists debate whether rising youth unemployment is cyclical or driven by deeper changes. Some argue that young people are the "canary in the coal mine" during economic slowdowns, as they are often hit first and hardest. Henry Siu, a UBC economist, notes that weak economic growth reduces job turnover and hiring, disproportionately affecting new graduates.

However, others point to AI and automation as key factors. Research shows that vacancies for jobs requiring a bachelor’s degree and fewer than three years’ experience have dropped by more than half in Canada since early 2024. Tasks like drafting, summarizing, coding, and analyzing—traditionally assigned to entry-level staff—are increasingly performed by algorithms.

The Impact of AI on Job Prospects

Pete Nelson of the Labour Market Information Council and Boxi Yang of the Conference Board of Canada warn that AI is eroding the first rung of the career ladder. They highlight a "striking mismatch" between the number of graduates and available jobs, challenging the assumption that education guarantees opportunity.

Henry Siu suggests that while AI reduces opportunities in some occupations, its full impact may only be felt after the next recession, similar to past technological shifts like the PC revolution or automation in manufacturing.

Broader Economic Implications

Youth unemployment has significant implications for the economy. Tara Parry of Robert Half emphasizes that a solid first job allows young people to build skills, participate in the economy, and make life decisions like buying a home or starting a family. Jairo Yunis of the Business Council of B.C. adds that young people bring creativity and ideas to businesses, and their absence can harm economic growth.

Turning to Trades and Alternative Paths

In response to the challenging job market, more B.C. graduates are turning to trades. A record 50,000 people are registered as apprentices, including 11,000 high school participants. The B.C. government has announced a $241 million fund to double trades-training funding over the next three years, addressing waiting lists and introducing new certifications.

Research indicates that college graduates or those with diplomas may fare better than bachelor’s degree holders in certain sectors. Jobs in skilled trades and health care account for almost half of all postings in Canada, but only about one-third of graduates are trained in these fields.

Reasons for Optimism

Despite the challenges, there are signs of hope. Tara Parry notes that the drop in foreign student visas could ease competition in the job market. Additionally, young people who are proficient with AI may have a significant advantage, as employers increasingly seek candidates who can leverage technology to boost productivity.

Shervin Laghaie, a student at the B.C. Institute for Technology, feels prepared for the job market due to the hands-on focus of his program. He believes that while the economy is tough, opportunities exist in fields like occupational health and safety.

As B.C. grads adapt to a changing landscape, the ability to navigate AI and explore alternative career paths will be crucial for success.