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Canada’s Youth Job Crisis: Navigating a Tough Market in 2025

Canada’s youth are facing one of the toughest job markets in over a decade, with unemployment rates for 15- to 24-year-olds climbing to 14.2% in May 2025, a stark 1.4% increase from the previous year and double the national average of 7%. This challenging landscape, driven by economic uncertainty and intensified competition, is making it harder for young Canadians to secure stable employment, particularly entry-level and summer jobs. For many, the dream of a first job feels like an uphill battle, with rejection becoming a familiar sting.

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A Shifting Economic Landscape

Just a few years ago, Canada faced a worker shortage, with businesses scrambling to fill vacancies. But the tide has turned. A combination of economic headwinds, including a trade war with the United States that began creating uncertainty in April 2025, has left employers hesitant to hire. According to economists, the threat of tariffs and trade disruptions has dampened business confidence, leading to a slowdown in job creation. Charles St-Arnaud, chief economist at Alberta Central, warns that the economy is “sluggish” and teetering on the edge of recession, with young workers bearing the brunt of this downturn.

The impact is particularly acute for youth seeking summer jobs or casual work, roles traditionally filled by teens and young adults. Brendon Bernard, senior economist at Indeed Hiring Lab, notes that summer job postings in 2025 dropped by 22% compared to the previous year, signaling a sharp decline in seasonal hiring. “The seasonal hiring cycle typically peaks between mid-April and mid-May, meaning the window for new summer job postings has effectively closed,” Bernard explains. This scarcity has left many young job seekers, like 19-year-old University of Toronto student Alex, applying to over 200 positions with only a handful of interview offers.

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The Struggle for Entry-Level Jobs

The competition for entry-level positions has intensified as experienced workers, displaced by economic challenges, apply for roles typically reserved for younger, less experienced candidates. “A lot of people without experience are having difficulties entering into entry-level positions because there are people who have more experience who are trying to apply for those jobs as well,” says Mikal Fakhreddin, project coordinator at Workforce WindsorEssex. This “traffic jam” in the job market, as Bernard describes it, creates a bottleneck where older workers occupy lower-level roles, leaving fewer opportunities for youth.

For young Canadians like Rick Co, the job hunt is a grueling process. “It’s hard,” Co says. “I have a spreadsheet of all the jobs I applied to within a two-month period, and it was over 80. I only heard back from two, and they were both gig jobs, so nothing stable.” Co has been working with employment agencies to revamp their resume, adding certifications and restructuring it to stand out in a crowded market. Yet, even with these efforts, stable employment remains elusive.

The Role of Online Platforms

Online job platforms have streamlined the application process, allowing users to filter for part-time or full-time roles and specify their location. However, the ease of applying hasn’t translated into success for many. “I’ve tried to apply for jobs for a year now, and most places don’t get back to me or just say no,” says a frustrated young job seeker. Economists point out that the job market hasn’t been this challenging for youth since 2012, with the unemployment rate for returning students aged 15 to 24 hitting 20.1% in May 2025—a level comparable to the economic struggles of 2009 and 1999.

The rise of automation and technological shifts further complicates the situation. Entry-level roles in industries like retail, hospitality, and administrative services—traditional stepping stones for young workers—are increasingly being replaced by AI and software. Tricia Williams, director of research at Future Skills Centre, calls youth unemployment a “canary in the coal mine,” signaling broader labor market challenges that could affect the entire economy.

Long-Term Consequences

The current job crisis threatens more than just immediate financial stability for Canada’s youth. Prolonged unemployment can lead to “wage scarring,” where young workers face lower lifetime earnings and career instability. Miles Corak, an economics professor at the City University of New York, explains, “Graduates may find jobs, but they often end up in lower-paying roles or industries they didn’t plan for.” This mismatch between skills and employment can have lasting effects, delaying major life milestones like homeownership and family planning.

The emotional toll is equally significant. “It’s disheartening,” says Thivian Varnacumaaran, a 25-year-old electrical engineering student who has applied to over 400 jobs without success. “I’m kind of waiting for life to start,” adds Ben Gooch, another young Canadian stuck in the cycle of rejection and underemployment. These stories highlight a generation in limbo, grappling with a labor market that feels increasingly inaccessible.

Government Response and Potential Solutions

The Canadian government has taken steps to address the crisis, expanding programs like the Canada Summer Jobs initiative, which added 6,000 subsidized positions in 2025 to support youth employment. The Youth Employment and Skills Strategy (YESS) also aims to bridge the gap between education and work by equipping young Canadians with skills in high-demand fields like technology and skilled trades. However, experts argue that these measures are only a start. “Targeted youth policies are dealing with one of the symptoms of the problem,” Bernard notes. “We need the economy to turn around to really improve the situation.”

Broader economic stimulus, such as investments in infrastructure and green technology, could create new opportunities, though their impact may take time. Promoting apprenticeships and enhancing career counseling in schools are also seen as critical steps to prepare students for in-demand careers. Williams emphasizes the importance of supporting youth: “Young people are a treasure of resources. Supporting them yields dividends for society.”

A Path Forward

As Canada navigates trade uncertainties and economic stagnation, the youth job crisis remains a pressing challenge. For young Canadians, the frustration of rejection and the struggle to secure stable work underscore the need for structural reforms and targeted support. While online platforms and resume tweaks offer some hope, a true turnaround will require a stronger economy and a commitment to investing in the next generation. Until then, Canada’s youth will continue to face a trying start to their working lives, with the promise of a brighter future hanging in the balance.

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