{"id":103334,"date":"2025-08-30T15:24:22","date_gmt":"2025-08-30T15:24:22","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/103334\/"},"modified":"2025-08-30T15:24:22","modified_gmt":"2025-08-30T15:24:22","slug":"the-summer-funk-isnt-over-yet-for-young-jobless-canadians","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/103334\/","title":{"rendered":"The summer funk isn\u2019t over yet for young, jobless Canadians"},"content":{"rendered":"

More below \u2022 Four young Canadians\u2019 job-search sagas<\/a> \u2022 Key charts to illustrate the crisis<\/a><\/p>\n

It\u2019s never easy to be young and searching for work. But this summer? For many young Canadians, it was a summer to forget.<\/p>\n

Over the past three years, total job<\/a> vacancies across the country have plunged by roughly half. This summer, there were fewer postings for lifeguards and camp counsellors \u2013 the first real paycheque for many high schoolers \u2013 but also for entry-level office roles that are sought after by fresh university graduates.<\/p>\n

Young Canadians are sometimes applying to dozens, even hundreds, of jobs without luck. And they\u2019re frustrated. By companies that \u201cghost\u201d them. By precarious work. By the debt they\u2019re taking on to pay the bills. <\/p>\n

\u201cIt\u2019s not like how you could walk into a store and firmly shake the manager\u2019s hand and they\u2019d give you a job on the spot,\u201d said Salsabeel Hmer, a University of Calgary student who\u2019s struggled to find a permanent part-time role. \u201cYou have hundreds of applicants for one minimum wage job.\u201d<\/p>\n

The numbers paint a grim picture. As of July, the youth unemployment rate (for those 15 to 24) was 14.6 per cent, the highest since 2010, excluding the first years of the pandemic. And the employment rate \u2013 the percentage of youth who are actively working \u2013 has tumbled to less than 54 per cent. Excluding the worst periods of COVID-19, that\u2019s the lowest level since the late 1990s. <\/p>\n<\/p>\n

Even in the best of times, it can be tough for young people to get their footing in the labour market. They\u2019re often the last to get hired and the first to get fired, as the old saying goes. And their employment prospects are especially sensitive to the economic cycle \u2013 something outside of their control.<\/p>\n

That\u2019s hardly reassuring news for the near future. The Canadian economy has been sluggish over the past few years, and because of the U.S.-driven trade war, the outlook is pocked with uncertainty. <\/p>\n

The rise of artificial intelligence \u2013 and speculation that it could decimate entry-level work in some fields \u2013 has only added to the anxiety. <\/p>\n

It\u2019s a situation without quick fixes.<\/p>\n

\u201cThe youth job market doesn\u2019t exist in a vacuum,\u201d said Brendon Bernard, senior economist at hiring site Indeed Canada. \u201cYouth need employers to be hiring, and hiring is highly cyclical. That\u2019s just cooled off over the past few years.\u201d<\/p>\n

It\u2019s been five years since COVID-19\u2019s arrival left thousands of Canadians out of work or isolated at home. Once restrictions lifted, a hiring blitz began \u2013 and a mix of economic factors helped create conditions for the current slump in youth employment.<\/p>\n

Taehoon Kim and Fred Lum\/The Globe and Mail<\/p>\n

Three summers ago, the Canadian labour market was in a vastly different \u2013 and healthier \u2013 place. <\/p>\n

As pandemic restrictions were lifted, employers went on a hiring spree. The overall unemployment rate hit a modern-day low of 4.8 per cent. For youth, the jobless rate hit single digits, a rare occurrence. <\/p>\n

In tandem, the country was also facing its worst inflation crisis in four decades, forcing the Bank of Canada to sharply raise borrowing costs to cool the economy, a process that began in 2022.<\/p>\n

What\u2019s emerged is a low-churn job market: Hiring rates are weak, but so too are layoff rates. Effectively, companies have hunkered down with their staffing in place as they wait out a number of economic headwinds \u2013 most recently, the erratic trade policies of the Trump administration, which threaten to tip Canada into recession.<\/p>\n

The upshot is that Canada has mostly avoided the sort of mass layoffs that characterize an economic downturn. But the downside is that new workers are finding few opportunities to get in the door. <\/p>\n

\u201cNew labour market entrants will always be hurt most by a decline in job openings, and youth are the biggest group of new labour market entrants,\u201d said Mikal Skuterud, a professor of economics at the University of Waterloo, by e-mail. \u201cThis is overwhelmingly what\u2019s driving the increase in youth unemployment.\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Jhossayra Moya and Sheliza Jamal from Curated Leadership, a Toronto-based coaching firm, are at a local job fair to meet young people. Job applicants are finding it increasingly hard to get entry-level positions.Cole Burston\/The Globe and Mail<\/p>\n

There are, however, some other theories for what\u2019s happening. First off: strong immigration.<\/p>\n

Canada\u2019s population surged between 2022 and 2024, fuelled in large part by temporary residents, including people on work visas and international students. As of April 1, temporary residents totalled nearly 3 million \u2013 an increase of 115 per cent over just three years. <\/p>\n

The federal government eased many of its immigration rules to help companies fill the glut of job vacancies. International students were allowed to work longer hours, and the Temporary Foreign Worker Program could be tapped to fill more roles in retail and hospitality \u2013 two sectors that employ a big chunk of working youth.<\/p>\n

\u201cThe past few years have seen extreme growth in the 15-24 category, largely due to the large influx of international students,\u201d Bank of Montreal chief economist Doug Porter wrote in a recent note to clients. \u201cUnsurprisingly, when the youth population swells, it tends to drive up the youth jobless rate relative to others.\u201d<\/p>\n

Prof. Skuterud isn\u2019t convinced that immigration is the main driver of higher youth unemployment, pointing instead to the nosedive in job vacancies, along with generally weak economic conditions.<\/p>\n

\u201cYouth are struggling and, in my view, that would be happening independently of anything that\u2019s happened on the immigration front in recent years,\u201d he said. \u201cCanada\u2019s economy looks sclerotic.\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Robotic retail workers, like this one slinging popcorn at a Tesla-run diner in Los Angeles, are not yet a widespread threat to humans’ entry-level job prospects.Patrick T. Fallon\/AFP via Getty Images<\/p>\n

The next theory: artificial intelligence<\/a>.<\/p>\n

Technology companies have made no secret of wanting to consolidate entry-level roles through the use of AI. In a recent report, CIBC Capital Markets found that youth employment is ebbing in industries with high exposure to AI, whereas older and more established workers in those industries seem to be less affected.<\/p>\n

There are, however, some holes in the \u201cblame AI\u201d argument. Tech employment has been mired in a long-term funk, and industry job postings were plummeting well before the AI hype-train kicked into overdrive. And the decline in job vacancies is not just a tech story.<\/p>\n

\u201cThe natural question is, \u2018Oh, is it AI?\u2019 Well, I don\u2019t think AI is why entry-level opportunities have shifted away from manufacturing or natural resources,\u201d said Mr. Bernard of Indeed.<\/p>\n

Either way, young workers are feeling the pain.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Faraz Khorsandi is a civil-engineering grad who’s still looking for full-time work in his field, to no avail so far.Supplied<\/p>\n

Faraz Khorsandi, 28, graduated in 2024 from Lakehead University with a master\u2019s degree in civil engineering. He\u2019s held jobs since then, but he\u2019s been looking for a full-time role in his field for more than a year. \u201cI\u2019m just basically relying on the money that I had set aside for myself. But the game plan is, if I run out of options, I would just start looking for jobs as a server or go back to retail,\u201d he said.<\/p>\n

Ms. Hmer, the University of Calgary student, recently caught a break: a part-time job that runs until January. It took immense effort. The 18-year-old has applied for more than 300 jobs over the past year, picking up short-term gigs here and there to stay afloat.<\/p>\n

\u201cI think we\u2019re heading into a recession, if not already in one, which makes it difficult for employers to be able to afford people to work,\u201d she said.<\/p>\n

Some youth, meanwhile, are taking matters into their own hands.<\/p>\n

Natasha Soregaroli, a graduate of McGill University, has struggled to find steady work. But rather than wait around, the 23-year-old decided to write and publish a book (Becoming Me, Again) that helps teenagers navigate the ups and downs of life. She\u2019s since picked up part-time work as a server.<\/p>\n

\u201cI didn\u2019t think it would be so much rejection\u201d after graduation, she said. \u201cEventually I was like, \u2018You know what, I\u2019m tired of looking for jobs. I\u2019m just gonna do me, and then see if anything comes from that.\u2019\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Natasha Soregaroli of Vancouver, author of the coming-of-age book Becoming Me, Again, grew weary of the job hunt after her graduation from McGill.Norma Ibarra\/The Globe and Mail<\/p>\n

Through no fault of their own, youth can be financially harmed by entering the job market at the wrong time.<\/p>\n

A 2012 paper co-authored by University of Toronto economist Philip Oreopoulos tracked the earnings of Canadian men who graduated from college during recessions in the 1980s and 1990s. In the first year after graduation, those men earned up to 15 per cent less, on average, than peers who graduated when the unemployment rate was three to four percentage points lower. Moreover, it took a decade for the unlucky graduates to close the earnings gap.<\/p>\n

\u201cAs they take on that first job with a slightly lower salary, they\u2019ll slowly move toward the better jobs,\u201d said Tammy Schirle, an economics professor at Ontario\u2019s Wilfrid Laurier University. \u201cBut that salary is going to take a while to catch up to where they might have been otherwise.\u201d<\/p>\n

It would be tempting to look for big, bold solutions to the crisis. But to get youth working, economists say that a critical shift is needed: a turn in the economic cycle.<\/p>\n

At the moment, the Canadian economy is hardly the picture of health. But there are some tentative reasons for optimism.<\/p>\n

Businesses and consumers aren\u2019t feeling as pessimistic as they were earlier this year, according to various sentiment surveys, because U.S. tariffs haven\u2019t been as devastating as initially feared. (The big caveat is the future existence of the North American trade deal, which thus far has spared Canada from the worst of U.S. President Donald Trump\u2019s protectionist impulses.)<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Canadians, who’ve increasingly turned to local goods in the trade war with Washington, haven’t felt as much purchasing pain as economists predicted, though that could change.Dave Chan\/The Globe and Mail<\/p>\n

The federal government is also clamping down on population growth, which includes a drastic reduction in temporary residents over the coming years. The rules for the Temporary Foreign Worker Program have been tightened, and that could force certain businesses \u2013 such as restaurants \u2013 to look more vigorously for local workers.<\/p>\n

It\u2019s unclear, however, what the population slowdown will mean for youth employment. Immigrants are not only workers, but also consumers who create demand in the economy. And while the temporary resident population seems to have peaked, with some already having left the country, youth employment levels have worsened this year. <\/p>\n

A healthier job market would also mean more labour movement. Of late, workers have generally stayed put in their jobs, seeking safety during a period of economic turmoil.<\/p>\n

As their confidence returns, older workers will feel more comfortable taking on career risks, whether that\u2019s moving up the ranks of their company or switching to another firm. And in turn, their departures will hopefully create a void for young workers to fill.<\/p>\n

\u201cYouth need others in the labour market to also be doing well,\u201d said Mr. Bernard. \u201cIf things were to get back on track, youth employment would surely benefit.\u201d<\/p>\n

Meet four young Canadians in labour limboIman Khwaja, 25<\/p>\n

Ms. Khwaja feels disillusioned by higher education altogether. After receiving a master\u2019s degree in English and Spanish at the University of Edinburgh, the Canadian permanent resident has applied to hundreds of jobs on both sides of the Atlantic \u2013 but to no avail. \u201cIt\u2019s like living in limbo,\u201d she said. \u201cI don\u2019t feel like formal education has paid off as an investment that I made in myself and my career.\u201d<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

R\u00f3n\u00e1n McGuire-Johnson, 15, had less luck finding work than his mother did at his age.Supplied<\/p>\n

R\u00f3n\u00e1n McGuire-Johnson, 15<\/p>\n

Mr. McGuire-Johnson applied for several jobs this summer in his hometown of Montreal, but rarely heard back from employers. \u201cMy mom pushed me to get a job. Because when she was my age, she had a job at like 14 or 15,\u201d he said. \u201cI don\u2019t think it was as hard for her.\u201d Now, he\u2019s shifting his focus to volunteer opportunities.<\/p>\n

Open this photo in gallery:<\/a><\/p>\n

Siobhan O\u2019Donoghue just graduated from the University of Guelph-Humber.Supplied<\/p>\n

Siobhan O\u2019Donoghue, 22<\/p>\n

Ms. O\u2019Donoghue, a recent graduate of the University of Guelph-Humber, has been looking for a job in marketing or public relations since last October. For now, she has a contract position with the university until December. \u201cI\u2019m glad I have something, but it is a little stressful knowing that come the New Year, I have no idea,\u201d she said. \u201cIt\u2019s really discouraging just to struggle this much to find something.\u201d<\/p>\n

Smera Pattanaik, 19<\/p>\n

Ms. Pattanaik applied for more than 70 summer positions, got two interviews and eventually one job offer: marketing intern at the Calgary Outdoor Swimming Pool Association in her hometown. This was her first real job, and with it came plenty of learning opportunities. She learned how to strike the right tone in professional e-mails and get her work approved by higher-ups. \u201cI feel like it was a good first internship to have,\u201d said Ms. Pattanaik, who starts her second-year of undergraduate studies at Western University. \u201cI was able to learn how to function in a corporate world.\u201d<\/p>\n

Canada\u2019s youth jobs crisis, in four charts<\/p>\n

Three years ago, there were roughly one million job vacancies in Canada, reflecting a surge in labour demand as pandemic restrictions were being cast aside. That number has since been cut in half, with most industries in retreat. In particular, there\u2019s been a swift decline in jobs that require little education or experience \u2013 exactly the sort of positions that young people are looking for.<\/p>\n<\/p>\n

With the labour market in distress, young job seekers are finding themselves unemployed for longer. Roughly one in six unemployed youth have been jobless and looking for longer than six months, according to calculations from Prof. Schirle. That figure appears to be trending up. \u201cIf you are a young person trying to find a job, you\u2019re having to spend a much, much longer time looking for one, and that\u2019s where the difficulty is,\u201d she said.<\/p>\n<\/p>\n

It\u2019s been a rough summer for seasonal work. Summer job postings on Indeed Canada were tracking well below last year\u2019s levels. As part of the site\u2019s analysis, it looked for postings with \u201csummer\u201d (or, in French, \u201c\u00e9t\u00e9\u201d) in the title, which included camp counsellors and lifeguards. Quite often, those jobs go to teenagers at the start of their working lives. As of July, the unemployment rate for those aged 15 to 19 was 20 per cent.<\/p>\n<\/p>\n

Mr. Bernard of Indeed said it\u2019s instructive to look at the youth employment rate, not solely the unemployment rate. Many young people aren\u2019t bothering to look for work or have stopped looking because they\u2019re discouraged, and thus aren\u2019t counted as unemployed by Statistics Canada. Over the past two years, there\u2019s been a precipitous decline in the youth employment rate, owing to tepid job growth and strong population gains. \u201cThe unemployment rate is not capturing the full extent of the change in the youth job market,\u201d said Mr. Bernard.<\/p>\n

Labour Day reads: More from The Globe and MailThe Stress Test podcast<\/p>\n

The office grind is overrated. What happens when people prioritize rest and well-being instead? A group called Re-Work is encouraging Canadians to find out. The Stress Test podcast<\/a> spoke with its co-founder, Chantaie Allick, and a millennial who quit her job and bought a farm. Subscribe for more episodes.<\/a><\/p>\n

Personal finance<\/p>\n

Can\u2019t find summer jobs? Here\u2019s what else students can do<\/a><\/p>\n

Worried about your job security? Try \u2018defensive budgeting\u2019<\/a><\/p>\n

Cheaping out on a home purchase may be the smartest Gen Z money move<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"More below \u2022 Four young Canadians\u2019 job-search sagas \u2022 Key charts to illustrate the crisis It\u2019s never easy…\n","protected":false},"author":2,"featured_media":103335,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[14370,84,1371,56,54,55,14373],"class_list":{"0":"post-103334","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-jobs","8":"tag-appwebview","9":"tag-business","10":"tag-jobs","11":"tag-uk","12":"tag-united-kingdom","13":"tag-unitedkingdom","14":"tag-yesapplenews"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/103334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=103334"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/103334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/103335"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=103334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=103334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=103334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}