Canada’s Gen Z is entering the toughest youth job market since the 1990s, as rising unemployment and economic uncertainty leave many grads without prospects.
Job Market Woes Shadow Graduation Season
Across Canadian campuses, graduation ceremonies in 2025 are marked by uncertainty. For 23-year-old University of Calgary graduate Sarah Chung, celebrations are tempered by the reality of a grim labour market. “It’s bleak,” she said, echoing the fears of a generation facing Canada’s highest youth unemployment rate in nearly 25 years.
Unemployment Among Youth Hits Historic High
According to Q1 data from Statistics Canada, unemployment among Canadians aged 15–24 is at its worst since the mid-1990s—excluding the pandemic. Unlike past generations, today’s youth are navigating a transformed labour landscape shaped by the digital economy, gig work, and AI.
Economic Forces Behind the Decline
This downturn stems from a combination of pandemic aftershocks, inflation, and population growth outpacing job creation. Experts point to the U.S. trade war and fears of a looming recession as amplifiers of the crisis. Tricia Williams of the Future Skills Centre calls youth unemployment a “canary in the coal mine” for deeper economic trouble.
A Rollercoaster Recovery Followed by a Stall
Post-pandemic hiring surged, briefly benefiting Gen Z workers. But as economic optimism faded, so did job prospects. Interest rate hikes, affordability issues, and rising automation have cooled employer hiring appetites—especially for entry-level roles.
Rising NEET Rates and Diminished Hopes
Since spring 2024, more young people are falling into the NEET category—not in education, employment, or training. Students like Thivian Varnacumaaran report applying to hundreds of jobs without success. Economists warn that continued stagnation could deepen the problem.
Real-Life Stories Reflect Broader Trends
Ben Gooch, a mechanical engineering graduate, now sweeps floors at a garden centre to make ends meet. Despite over 100 job applications, he’s landed just a few interviews. “I feel like I’m throwing darts at a wall,” he said, voicing the frustration of many recent grads.
Long-Term Damage: Wage Scars and Lost Opportunity
Economists warn of “wage scarring,” where early unemployment leads to reduced long-term earnings and career setbacks. Research links recession-era graduation with poorer health outcomes and diminished lifetime prospects—even among high achievers.
Societal Impacts and Diverging Futures
The fallout doesn’t just affect young workers. “Young people are a treasure of resources,” said Williams. However, economist Miles Corak suggests the impact may be more symbolic—showcasing the widening divide between well-positioned youth and those left behind.
A Generation Left Waiting
Many Gen Z workers feel their adult lives are on hold. “I haven’t started my career. I’m kind of waiting for life to start,” said Gooch. With jobs scarce and the economy unstable, Canada’s youth are left navigating the unknown, one resume at a time.
For continuous coverage and real-time updates, keep following Maple News Wire.
