Young Canadians need more than a LinkedIn premium account to land a job these days.
What happened: The unemployment rate for Canadians aged 15-24 rose to 13.5% last month, the highest rate seen since 2014 — not counting the pandemic. The employment rate among university students looking for summer jobs is currently the lowest since 1998.
Why it’s happening: Not only has the economy slowed in recent months, but the job market hasn’t absorbed all the new job seekers after years of record-setting population growth. That mismatch leaves students and young graduates with a dwindling number of job prospects.
- Young people have been disproportionately affected by the decline in promotions and a rise in involuntary part-time work, leading many to take on jobs they’re overqualified for.
- Experts also point to the rising number of Canadians with degrees in fields that have slowed down hiring in recent months, including finance and professional services.
Why it matters: According to RBC economist Carrie Freestone, new graduates who have difficulty finding their first job can struggle to hit career milestones farther into the future. The good news: hiring could pick up as the Bank of Canada continues to cut interest rates.—LA