Canada's younger generation continues to grapple with a challenging labour market, as highlighted by a new Statistics Canada report. The unemployment rate for individuals aged 15 to 24 climbed to 14.6% in September 2025, marking the highest level since September 2010, excluding the COVID-19 pandemic period.
Employment Declines in Early 2026
In its economic report titled "Recent developments in the Canadian economy: Spring 2026," released on April 22, StatCan noted that labour market conditions worsened for youth at the start of 2026. After a loss of 23,000 jobs at the end of 2025, youth employment fell by an additional 64,000 in January and February. The unemployment rate for this age group edged back above 14% in February, while the employment rate dropped to 53.7%.
Summer 2025 Struggles
The difficulties followed a tough summer in 2025, when the youth unemployment rate peaked at 14.6% in September. This was the highest rate in over a decade, aside from pandemic-related disruptions. A brief recovery in the fall brought the rate down, but by the end of 2025, it remained elevated at 13.3% nationally and 15.6% in Ontario.
Broader Labour Market Weakness
The youth struggles occurred against a backdrop of overall labour market decline. In the first two months of 2026, total employment fell by 109,000, with over half of those losses in full-time positions. All net decreases were among private sector employees. Core-age workers (25-54) saw employment drop by 62,000, with losses concentrated in Ontario and Quebec.
The overall unemployment rate fell slightly to 6.8% at the end of 2025, after exceeding 7% in August and September. The employment rate for working-age people was 60.9% in December, recovering from a four-year low of 60.5% in August.
Impact of Trade Tensions
StatCan attributed some of the hiring slowdown to escalating trade tensions in 2025. From January to August, the job-finding rate—the proportion of job seekers who found work from one month to the next—averaged 18.1%, well below the 21.0% average during the same period in 2024. The rate improved slightly in the fall, aligning with pre-trade disruption levels.
Long-Term Unemployment Rises
Long-term unemployment remained a concern throughout 2025. Among the 1.55 million unemployed individuals in December 2025, 21.9% had been searching for work for 27 weeks or more. This share has been substantially above pre-pandemic levels since mid-2024. Meanwhile, job vacancies fell to 505,900 in December 2025, a decrease of 29,100 from the previous year.
These statistics paint a bleak picture for Canada's youth, who are bearing the brunt of a tough labour market exacerbated by trade uncertainties and economic headwinds.
