Youth Unemployment Crisis in Canada: An In-Depth Analysis

Youth unemployment in Canada has reached alarming levels, with the unemployment rate for individuals aged 15 to 24 at 14.2%, more than double the national average. This figure rises to 17.4% for students returning to school, indicating a significant challenge for young job seekers. Andrew Graham, a senior economist at CIBC, noted that the current unemployment levels are typically associated with recessionary periods, contrasting sharply with a resilient labor market for older age groups.

Youth unemployment at levels 'typically seen during recessionary periods': reportSmith says youth unemployment coupled with rising foreign labour is “alarming”The Globe and Mail (Toronto)The Globe and Mail (Toronto)Is immigration causing youth unemployment?

Several underlying factors contribute to the high youth unemployment rate. A notable decline in entry-level job postings, particularly summer positions, has been observed, with Indeed Hiring Lab reporting a 22% drop in May 2025 compared to the previous year. This scarcity of opportunities is compounded by a growing demand for experienced candidates, creating a catch-22 situation for young graduates who need experience to secure jobs.

Additionally, the rapid advancement of artificial intelligence (AI) has altered the job landscape, particularly in the tech sector, where fewer entry-level positions are available. Employers now prefer candidates with specialized skills, further marginalizing young job seekers.

In response to the rising youth unemployment, Alberta Premier Danielle Smith acknowledged the issue during a public panel, highlighting that the jobless rate for young men aged 24 is around 19%. She proposed the creation of incentive programs to help young people secure their first jobs, emphasizing the importance of early employment for future job prospects. Smith also linked high youth unemployment to unprecedented federal immigration levels, noting that Alberta has welcomed 450,000 newcomers in the past three years, which has intensified competition for jobs.

Smith says youth unemployment coupled with rising foreign labour is “alarming”

Critics argue that the influx of temporary foreign workers exacerbates the challenges faced by young Canadians in the job market. During the panel, a concerned grandmother expressed frustration that her grandchildren struggle to find work amid high immigration levels, a sentiment echoed by others in the audience. Smith's acknowledgment of the issue reflects a growing concern among constituents regarding the balance between immigration and local employment opportunities.

Smith says youth unemployment coupled with rising foreign labour is “alarming”

• “The most recent step up has taken unemployment to levels typically only seen during recessionary periods, and has come in contrast to a surprisingly resilient labour market for other age groups,” — Andrew Graham, Senior Economist, CIBC

Youth unemployment at levels 'typically seen during recessionary periods': report

• “If we don’t give that kid a first job, then they don’t get their second job and their third job.” — Danielle Smith, Premier of Alberta

Smith says youth unemployment coupled with rising foreign labour is “alarming”

• “It’s really hard for my grandchildren to get jobs right now … they don’t have a shot at getting a job because they’re Canadian,” — Concerned Grandmother

Smith says youth unemployment coupled with rising foreign labour is “alarming”

As the situation evolves, Premier Smith's government is expected to roll out new policies aimed at improving job prospects for young Albertans. These initiatives may include targeted training programs and incentives for employers to hire young workers. The effectiveness of these measures will be closely monitored as the province seeks to address the pressing issue of youth unemployment in the context of a changing economic landscape.

Smith says youth unemployment coupled with rising foreign labour is “alarming”