Canada’s unemployment rate rose to 7.1% in August, the highest level since May 2016 (excluding the pandemic years), according to Statistics Canada. The labour market slowdown is pushing even highly qualified professionals to compete for entry-level jobs.
Earlier this month, hundreds of job seekers lined up at a hotel in Ottawa for a Food Basics job fair. Only 125 positions were available, but the store received several hundred applications.
Among the hopefuls was Casey McLaughlin, a former executive director of the Yukon Transportation Museum. “I’m willing to go from being a boss to shelving vegetables because you have to pay the bills,” she said. “It’s really hard to find a job in Ottawa right now.”
Another applicant, Nafisa Ijie, who holds a master’s degree and business analyst experience in Nigeria and England, echoed the struggle: “It’s been very difficult getting a job, especially when you don’t have Canadian work experience.”
Young workers hit hardest
Statistics Canada data shows student unemployment is at its highest since 2009. Teenagers and Gen Z applicants at the Ottawa job fair said they were anxious about the long lines and lack of openings.
Economic researcher Viet Vu from The Dais said weak hiring affects youth most, since entry-level jobs are often the first cut when companies freeze expansion. The long-term risk, he noted, is “wage scarring,” where young workers face reduced lifetime earnings due to prolonged early unemployment.
Why hiring is slowing
Vu explained that while companies are not mass-firing, many are hesitant to expand due to trade uncertainty and weaker demand. “A lot of companies are not laying off workers,” he said. “But they’re not creating many new jobs either.”
Personal toll
For McLaughlin, who has twins to support, the rejection was devastating. “Please, I’ll just take the garbage out, I don’t care. I need to pay bills,” she said. After five months of job searching, she is considering moving to Western Canada to find work.
Outlook
Experts warn that job seekers should brace for a slow recovery. “We’re not going to see much difference from the trend line,” Vu said. “Weaker economic activity, elevated unemployment, and slower-than-expected hiring.”
