Youth unemployment in Canada reached 14.1% in October 2025, well above the pre-pandemic average of 10.8%, prompting the federal government to launch a public consultation seeking ideas to address growing challenges facing young workers.
Employment and Social Development Canada opened the online engagement Sunday, inviting written submissions and questionnaire responses until Dec. 19. The consultation targets young Canadians in particular but is open to all.
A discussion paper released with the consultation reveals nearly one in five teenagers who want to work cannot find a job, according to a Desjardins report. The number of youth not in education, employment or training increased by 201,800 since 2023 to approximately 914,000, representing 11.5% of the youth population aged 15 to 29.
Widening gap with adult workers
The unemployment rate for adults aged 25 to 54 was 6.9% in September 2025, only slightly higher than the pre-pandemic average of 5%. Youth unemployment has trended upward since early 2023.
Youth from historically underrepresented groups, including Black youth, racialized youth, Indigenous youth and youth with disabilities, face significantly higher unemployment rates than their peers, according to the discussion paper.
Factors behind rising youth unemployment
The government identified several contributing factors to high youth unemployment, citing reports from Deloitte Canada and Desjardins. Between 2022 and 2024, the youth population aged 15 to 24 grew by 9.9%, or 457,000 people, compared to overall population growth of 6%.
Hiring demand has softened in sectors that primarily employ youth, including wholesale and retail trade and accommodation and food services. A 2025 U.S. study found workers aged 22 to 25 in AI-exposed occupations experienced notable job losses, while experienced workers maintained or increased employment.
Long-term consequences
The share of unemployed people, including youth, searching for work for 27 weeks or more has risen since July 2023. A DEVLab survey of more than 1,600 youth aged 16 to 30 conducted between November 2023 and May 2024 found 72% experienced gaps in education and career skills caused by the COVID-19 pandemic, with only one in five feeling they had fully recovered.
Prolonged youth unemployment can lead to wage scarring, reduced job opportunities and delayed career progression that take several years to overcome, according to the discussion paper. The effects can also include poor mental health and quality of life.
Current support programs
The federal government operates several youth employment initiatives, including the Youth Employment and Skills Strategy Program, Canada Summer Jobs and the Student Work Placement Program.
Budget 2025 allocated more than $1.5 billion to help youth gain skills and work experience. The investment is expected to support approximately 175,000 young people in 2026-27 through hands-on experience and training programs.
Provinces and territories also provide labour market supports through Labour Market Transfer Agreement programming and individual provincial programs.
Minister’s response
Patty Hajdu, federal minister of jobs and families, announced the consultation in Gatineau, Que. “The world of work is changing fast, and young Canadians are feeling it,” she said. “These are challenging times, and we are acting with urgency and purpose so youth can thrive in the labour market.”
Around 20% of the labour force is made up of individuals aged 55 and over, an age group nearing retirement. Youth are the largest source of new labour market entrants, making it imperative they are prepared for good jobs, according to the discussion paper.
Associated links
- Share your thoughts: Building Canada Strong; youth in the Labour Market
- Building Canada Strong: youth in the labour market, discussion paper
