Canadian students are facing their toughest summer job market in over a decade, with unemployment among returning students reaching 17.4% in June — the highest rate for the month since 2009, Statistics Canada reported Friday.
The unemployment rate for students aged 15 to 24 who attended school full-time in March and plan to return in the fall has climbed steadily from a record low of 10.2% in June 2022, when labour markets were exceptionally tight following the pandemic recovery.
The deteriorating summer job prospects affect students across all age groups. Those aged 15 to 16 face the steepest challenge, with unemployment at 27.8% — up 3.3 percentage points from June 2024. Students aged 17 to 19 saw their unemployment rate rise 1.8 percentage points to 19.0%, while those aged 20 to 24 experienced a smaller increase of 1.2 percentage points to 12.3%.
Slow start to summer employment season
The difficult job market became apparent in May, when unemployment among young returning students reached 20.1% — comparable to levels last seen in 2009 during the global financial crisis.
The current summer job challenges represent a significant shift from the post-pandemic period when employers competed intensely for workers. The June 2022 unemployment rate of 10.2% for returning students marked the lowest level on record, reflecting widespread labour shortages across industries.
Broader youth unemployment remains elevated
The struggles extend beyond students actively seeking summer work. Overall youth unemployment for those aged 15 to 24 held steady at 14.2% in June, remaining well above the pre-pandemic average of 10.8% recorded from 2017 to 2019.
Year-over-year, youth unemployment has increased by 0.7 percentage points, suggesting persistent challenges for young workers entering the labour market.
Impact on student finances and experience
The challenging summer job market could have significant implications for students’ financial planning and career development. Summer employment traditionally helps students pay for tuition, living expenses, and gain valuable work experience before graduation.
The tight summer job market comes as students face rising education costs and increased competition for entry-level positions. Many students rely on summer earnings to reduce their reliance on student loans and build professional networks.
Historical context shows cyclical nature
The current student unemployment rate, while the highest since 2009, remains below the levels seen during previous economic downturns. During the early 1990s recession, student unemployment rates often exceeded 20% during summer months.
The data covers students who attended school full-time in March and intend to return to school full-time in the fall. Statistics Canada collects this specific labour market information from May through August each year to track seasonal employment patterns among the student population.
The challenging summer job market for students contrasts with the broader labour market recovery, which saw overall employment increase by 83,000 jobs in June and unemployment fall to 6.9%.
