The Canadian labour market is presenting increasingly difficult conditions for young people, particularly those entering the workforce with a recent university degree. Data released in late 2025 indicates a significant deterioration in employment prospects for this demographic, a trend that began in 2024 and continues to intensify.
The unemployment rate among Canadians aged 15 to 24 reached 14.7% in , the highest rate for that month since (excluding , the first year of the COVID-19 pandemic). This represents a notable increase since . Breaking down the figures further, the unemployment rate for those aged 15 to 19 climbed to 20.8% in the third quarter of (July to September average), a substantial rise from 12.6% in the same period of .
While unemployment is rising across all age groups, the impact is disproportionately felt by younger workers. The unemployment rate increased by 3.2 percentage points to 11.3% for those aged 20 to 24, and by 2.4 percentage points to 8.2% for those aged 25 to 29. This suggests a widening gap in opportunities as individuals progress through their early careers.
The challenges extend beyond simply finding *any* job. A key factor driving this trend is a decline in entry-level positions traditionally accessible to university graduates. Analysis from the Labour Market Information Council and The Conference Board of Canada reveals that the pathways from university to white-collar work are narrowing. Vacancies requiring a bachelor’s degree and less than three years of experience have more than halved since early , falling from over 70,000 nationally to fewer than 30,000 by early .
This contraction in available positions coincides with a growing number of young Canadians holding bachelor’s degrees. The result is a growing mismatch between the supply of qualified candidates and the demand for entry-level roles. This isn’t being viewed as a temporary cooling of the labour market, but rather a structural realignment driven by factors such as automation, evolving employer preferences, and global economic uncertainty.
The situation is particularly acute in British Columbia. Data indicates a youth unemployment rate of 13% in , compared to 8% three years prior. The difficulty in securing employment is forcing some graduates to pursue unconventional routes. Rena Laterie, a graduate with a biochemistry degree from the University of Victoria, found employment only after personally delivering her resumé to a compounding pharmacy, a strategy she adopted after numerous unsuccessful online applications.
The tightening labour market is also impacting newcomer populations. Job fairs aimed at breaking down barriers for newcomers are being held in cities like Calgary, reflecting the increased competition for available positions. saw hundreds of jobseekers attend an employment event in Calgary, highlighting the widespread concern about employment prospects.
The shift in the labour market is prompting a re-evaluation of the traditional value proposition of a university degree. For years, a bachelor’s degree was widely considered a reliable pathway to stable employment. However, the current data suggests that a degree is no longer a guaranteed hedge against unemployment, particularly for recent graduates entering competitive fields. The trends suggest a need for both educational institutions and policymakers to address the evolving skills gap and prepare young Canadians for a more challenging labour market.
The situation demands attention not only from those directly affected but also from businesses, and government. Addressing the mismatch between skills and available positions, fostering innovation, and supporting the development of new industries will be crucial to ensuring that young Canadians can contribute to the economy and achieve their full potential.
