Two young men playing video games
When many of us imagine someone aged 15 to 29, they see a student buried in books or a young adult starting their first job. But for almost 11.5% Canadian Gen Zers, neither is true — they’re not in school, not working and increasingly unsure where they fit in.
That’s according to 2024 data published by Statistics Canada. Its numbers show young adults who are NEET — or “Not in Education, Employment or Training” — hovers just under 1 million.
These stats show employment rates for NEETs have fallen below levels seen before the COVID pandemic. From March 2023 to March 2024, the employment rate for youth aged 15 to 29 years declined 2.7 percentage points, reaching 62.9% overall. With nearly one in 10 young people facing this grim future, some are now calling for a redesign of the education system to address the issue.
Although university is traditionally seen as the path to building a bright future, British political commentator Peter Hitchens argues that this belief no longer holds true. “In many cases, young people have been sent off to universities for worthless degrees which have produced nothing for them at all,” the author said in a recent episode of his Alas Vine & Hitchens podcast. “And they would be much better off if they apprenticed to be plumbers or electricians. They would be able to look forward to a much more abundant and satisfying life.”
In the first quarter of 2025, job vacancies in Canada that only required a high school diploma fell by 22.3%, or by 66,800 jobs, compared to 2024. This drop accounts for the majority of the overall year-over-year decline in job vacancies.
Meanwhile, more than half (54%) of small and medium-sized enterprises (SMEs) in blue-collar sectors such as manufacturing and construction said they struggled to find employees in 2024, according to a Canadian Chamber of Commerce survey. Additionally, 47% said the employees they hired weren’t suitable for the job, according to Canadian Federation of Independent Business (CFIB).
This skills gap is likely to persist as young adults see blue-collar work as less prestigious than white collar professions.
Story Continues
A 2021 Ontario study on skilled trades revealed a stigma around skilled trades careers based on the misconceptions many young people and their families have.
As a result, many young adults are willing to go into debt to finance their white-collar ambitions. As of 2022, Canadians owed the federal government $23.5 billion in student loans, based on data from the federal government’s Canada Student Financial Assistance Program.
Crippling student debt for degrees that don’t lead to meaningful employment may explain why many young adults are disengaging from society. Fortunately, efforts are underway to turn the tide.
Shifting perceptions of blue-collar work and creating clearer pathways into trades and vocational careers could be key to addressing the NEET issue. For instance, TV host Mike Rowe is giving away $2.5 million in scholarships this year to support young people pursuing skills training. DEWALT, a leading manufacturer of power tools and equipment for construction and industrial use, is investing nearly $4 million through its “Grow the Trades” initiative, funding that’s part of a larger $30 million commitment to support trades education and close the skills gap by 2027.
The funding will be distributed as grants to 166 organizations across Canada and the U.S. that are dedicated to training the next generation of skilled tradespeople, including programs focused on skilling, reskilling and upskilling workers in areas such as carpentry, electrical work, HVAC and more.
Vocational training is already gaining traction. According to Statistics Canada, new apprenticeship registrations across the country went up by 8.0% in 2023 compared to 2022. This means the number of new registrations hit 70,521, transcending the 2019 pre-pandemic level. If these trends continue, the skills gap — and the NEET crisis — could be gradually resolved.
Read more: Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
1. Statistics Canada: Youth not in employment, education or training: Recent trends (May 1, 2025)
2. Daily Mail: ‘It’s been a CATASTROPHE’: PETER HITCHENS hammers ‘worthless’ university degrees and surge in Gen Z joblessness in latest episode of the Alas Vine and Hitchens podcast with SARAH VINE, by Joseph Luke Palmer (March 20, 2025)
3. Government of Canada: Job vacancies, first quarter 2025 (June 17, 2025)
4. CFIB: Shortage of applicants, mismatched job expectations among key hiring challenges for small businesses (June 10, 2025)
5. Ontario: Supporting an accessible and inclusive skilled trades and apprenticeship system in Ontario
6. CBC: How student loans keep some people trapped in debt, by Aloysius Wong (June 18, 2023)
7. Mike Rowe Works Foundation: Work Ethic Scholarships
8. Newswire: To Help Grow the Trades, DEWALT Announces Grant Recipients (Sept 20, 2024)
9. Statistics Canada: New registrations, certifications, and pathways indicators of registered apprentices in Canada, 2023 (Dec 11, 2024)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.