Canada's Economic Downturn Under Carney: Youth Unemployment Hits 20-Year High
Times Of India3 weeks ago
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Canada's Economic Downturn Under Carney: Youth Unemployment Hits 20-Year High

INDUSTRY INSIGHTS
unemployment
economy
youth
jobs
canada
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Summary:

  • Youth unemployment in Canada hits 11.2%, the highest in two decades

  • Canada added only 7,400 jobs in April 2025, pushing the national unemployment rate to 6.9%

  • Ongoing trade disputes with the US are hampering economic recovery

  • Economists warn of long-term career consequences for young graduates

  • Experts advise job seekers to gain diverse experience and acquire high-demand skills

Canada's Economic Challenges Under Prime Minister Mark Carney

Newly elected Prime Minister Mark Carney is facing a significant economic downturn as Canada's labor market shows alarming signs of deterioration. Recent graduates are particularly affected, with unemployment rates soaring to a troubling 11.2%, the highest in at least two decades.

The Bleak Labor Market

In April 2025, Canada added only 7,400 jobs, far below expectations and insufficient to keep pace with population growth. This has pushed the national unemployment rate to 6.9%. For young Canadians, the situation is even more dire, with 1.6 million Canadians currently unemployed.

External Factors Hampering Recovery

The delayed economic recovery is significantly hampered by ongoing trade disputes with the United States, involving substantial tariffs on key Canadian exports like steel, aluminum, and automobiles. This has dashed hopes for a swift rebound in the labor market.

Long-Term Consequences for Young Canadians

Economists warn that graduating during such a pronounced economic downturn could have enduring negative consequences on young individuals' career trajectories. Protracted delays in securing stable employment impede their ability to initiate savings and investment early, a cornerstone of long-term financial security.

Strategies for Job Seekers

Despite the challenging landscape, experts advise young job seekers to:

  • Gain any form of work experience, even outside their immediate field of interest.
  • Acquire high-demand technical skills, particularly in areas like Artificial Intelligence (AI).
  • Leverage networking opportunities on platforms like LinkedIn and at industry events.

Grim Economic Outlook

The broader economic outlook for Canada appears increasingly precarious. The combination of high unemployment and sluggish job growth raises serious concerns about potential economic stagnation. The ongoing trade tensions with the US further exacerbate these challenges.

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