The Summer Funk Isn't Over Yet for Young, Jobless Canadians

It's never easy to be young and searching for work, but this summer was particularly tough for many young Canadians. With the youth unemployment rate hitting a rare high, Gen Z is scrambling for entry-level work, and economists warn there's no quick fix.

A Grim Picture of the Job Market

Over the past three years, total job vacancies across Canada have plunged by roughly half. This summer, there were fewer postings for lifeguards and camp counsellors – often the first real paycheque for high schoolers – as well as for entry-level office roles sought by fresh university graduates.

Young Canadians are applying to dozens, even hundreds, of jobs without success, facing frustration from companies that "ghost" them, precarious work, and mounting debt.

Key Statistics Highlight the Crisis

As of July, the youth unemployment rate (for ages 15 to 24) was 14.6%, the highest since 2010, excluding the pandemic's early years. The employment rate – the percentage of youth actively working – has tumbled to less than 54%, the lowest level since the late 1990s outside of COVID-19 peaks.

Youth are often the last hired and first fired, with employment prospects highly sensitive to economic cycles beyond their control.

Factors Driving the Crisis

Economic Slowdown and Uncertainty

The Canadian economy has been sluggish, with uncertainty from the U.S.-driven trade war adding to the challenges. The rise of artificial intelligence has also sparked fears it could decimate entry-level jobs in some fields.

Immigration Impact

Canada's population surged between 2022 and 2024, largely due to temporary residents like those on work visas and international students. Temporary residents totaled nearly 3 million by April 1 – a 115% increase in three years. This influx may be driving up the youth jobless rate, though some economists argue weak economic conditions are the primary cause.

AI and Technology

While AI is often blamed, tech employment has been declining long before the AI hype, and the job vacancy drop isn't limited to tech sectors.

Personal Stories of Struggle

• Salsabeel Hmer, an 18-year-old University of Calgary student, applied for over 300 jobs in a year, finally landing a part-time role until January.
• Faraz Khorsandi, a 28-year-old civil engineering grad, has been searching for a full-time job in his field for over a year, considering fallback options like retail or serving.
• Natasha Soregaroli, a 23-year-old McGill graduate, turned to writing a book after facing repeated rejections, now working part-time as a server.

Long-Term Consequences

Research shows that entering the job market during a recession can lead to lower earnings for up to a decade, with graduates earning up to 15% less initially and taking years to catch up.

Path Forward

Economists emphasize that a turn in the economic cycle is crucial for improvement. Tentative optimism exists due to less severe U.S. tariff impacts than feared, and federal efforts to reduce temporary residents might help. A healthier job market with more labor movement could create opportunities for youth as older workers advance or switch jobs.

Caption: Charts illustrate the drastic changes in youth employment over recent years.