Canada’s youth labour market continues to show strain, with unemployment among those aged 15 to 24 hovering above 13% in recent months — among the highest levels recorded outside pandemic years —worse off than parts of West Africa.
According to Statistics Canada’s latest labour-force data, youth joblessness has risen sharply as population growth — driven by study-permit arrivals and younger permanent residents — outpaces job creation.
Major banks, including BMO and RBC, warn youth unemployment could reach 14–15% in 2025, citing rapid increases in the young labour force and employers slowing hiring amid economic uncertainty.
In contrast, Senegal’s reported youth unemployment rate sits near 4%, according to World Bank modelled estimates. However economists note the comparison requires caution: Senegal’s low official rate reflects a large informal economy where many young people work in subsistence or precarious jobs rather than being counted as unemployed.
“Canada’s challenge is not lack of participation — it’s absorption,” said one labour-market analyst, referring to the influx of international students and young migrants, including many from Africa.
Youth joblessness carries long-term risks. Research shows early-career unemployment can reduce lifetime earnings and delay wealth-building, contributing to the already widening affordability gap facing young Canadians.
While Canada benefits from an influx of skilled young workers and students — critical for long-term demographics — economists say the labour market must adjust faster.
Policymakers face a dual challenge: supporting economic growth to absorb new entrants, while ensuring pathways to employment for newcomers and young Canadians already struggling to gain a foothold.
The federal government is addressing youth unemployment through its Youth Employment and Skills Strategy (YESS), which funds wage subsidies, internships, skills training, and job-placement programs for Canadians aged 15–30.
Budget 2024 allocated about $351 million for 2025–26, including $200.5 million for Canada Summer Jobs and $150.7 million for broader YESS programs, creating roughly 90,000 youth job opportunities.
Ottawa also supports Indigenous youth employment through targeted programs offering paid work experience and training opportunities.