“Youth unemployment consistently exceeds the national average, underscoring the persistent challenges young people face in gaining stable employment,” the authors noted. They stressed that unemployment early in a career often results in reduced earnings not only now but throughout a person’s lifetime.
The report notes that the rise in youth unemployment isn’t just cyclical, there are several contributing factors.
A surge in young temporary residents, particularly international students, swelled the labour pool after restrictions were lifted in the post-pandemic years, but at the same time, sectors traditionally reliant on youth workers such as retail, food services, and recreation, have been reshaped by rising labour costs, automation, and the expansion of the gig economy.
Federal and provincial budget cuts are also eliminating many seasonal and entry-level public service jobs, historically a stepping stone for young Canadians.
Young people are more likely to work part-time involuntarily, with 4.5% in that position in July 2025, compared to just over 1% of core-aged workers. Seasonal employment remains uncertain, with returning students in May 2025 facing unemployment above 20%, the highest in 25 years outside the pandemic.