A new report from the Business Council of B.C. paints a grim picture of the labour market for young workers in the province, showing that youth unemployment in British Columbia is now the worst in Canada. The job situation has deteriorated so significantly that B.C. also has the lowest participation rate among 15 to 24 year olds of any province.
Key Findings of the Report
Since 2019, B.C.’s youth labour market has cratered, with fewer young people working, fewer able to find work, and a growing number who have given up looking altogether. The unemployment rate for young people now stands at about 14 per cent, the highest since the 2008 global financial crisis, except for the pandemic years of 2020-21.
According to report author Jairo Yunis, “This should concern anyone who is young, has children, or employs young people.”
Population Growth vs. Employment Decline
B.C.’s population of 15 to 24 year olds grew by approximately 58,000 between January 2019 and March 2026, largely driven by an increase in temporary residents and international students. However, the number of employed youth has actually declined, erasing eight years of gains and falling back to mid-2017 levels. Currently, there are 671,000 young people in B.C., near an all-time high, but only 347,000 were employed as of March 2026.
Widening Gap with Adult Unemployment
Historically, youth unemployment has been higher than adult unemployment due to less experience. However, the gap has widened significantly. In 2019, the difference was about five percentage points; by March 2026, it had grown to around nine points. Youth unemployment rose from under nine per cent in 2019 to nearly 14 per cent, while adult unemployment only increased from four to just over five per cent.
Discouraged Workers and Low Participation
The number of unemployed youth has risen by 23,000 since 2019, and 85,000 young people are not in the workforce at all. Some may be staying in school longer, but many are likely discouraged workers who have stopped looking for jobs because they believe none are available. B.C.’s youth participation rate has dropped to 60 per cent, the lowest since December 2001.
Impact of Immigration Policy Changes
New federal policies restricting international students and temporary foreign workers may help reduce youth unemployment. For example, Tim Hortons recently announced it is cutting back on foreign staff and vowing to hire 10,000 local employees, including at 80 new locations opening this year. However, the report warns that reducing immigration targets alone will not solve the problem, given the scale of the crisis.
