Here's why so many young Canadians are struggling to find a job

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Young Canadians need more than a LinkedIn Premium account to land a job these days.

What happened: The unemployment rate for Canadians aged 15-24 rose to 13.5% last month, the highest rate seen since 2014 — not counting the pandemic. The employment rate among university students looking for summer jobs is currently the lowest it’s been since 1998.

Why it’s happening: Not only has the economy slowed in recent months, but the job market hasn’t absorbed all the new job seekers after years of record-setting population growth. That mismatch leaves students and young graduates with a dwindling number of job prospects.

Young people have been disproportionately affected by the decline in promotions and a rise in involuntary part-time work, leading many to take on jobs they’re overqualified for.
Experts also point to the rising number of Canadians with degrees in fields that have slowed down hiring in recent months, including finance and professional services.

Why it matters: According to RBC economist Carrie Freestone, new graduates who have difficulty finding their first job can struggle to hit career milestones farther into the future.

The good news: hiring could pick up as the Bank of Canada continues to cut interest rates.

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