A Tough Job Market for Young People, and a Chance to Rethink the Path Forward

Do you remember your first job?  As a young teen, I was thrilled to spend my Saturday’s working at our local hardware store – I learned how to cut keys, mix paint, and distinguish between Phillips and Robertson bits.  More than that, I gained valuable experience in customer service, developing judgement and responsibility.

For many young people entering the workforce today, landing that first job feels harder than ever. With youth unemployment at a 15-year high, the latest data shows that 12.6% of Canadians aged 15 to 24 were unemployed in July 2026—underscoring the growing challenges young people face as they try to get a foothold in the labour market. The Future Skills Centre State of Skills report on youth employment underscores that behind those statistics are thousands of young people struggling to gain experience, connections and opportunities that can shape an entire career. 

This challenge is driven by a combination of economic shifts rather than a single factor. Canada is currently in a low-hiring environment, and young workers are often concentrated in sectors that are especially vulnerable to economic slowdowns (such as retail and hospitality). As hiring contracts, the opportunities that traditionally serve as entry points into the workforce begin to disappear.

The long-term impact of labour market scarring 

This matters because the consequences can last far beyond the current economic cycle. Researchers refer to this as labour market scarring, the long-term impact of entering the workforce during a recession or period of weak hiring. Young people who struggle to secure early employment opportunities often experience lower earnings, slower career progression, and fewer opportunities to build the professional networks that help open doors later in life.

These obstacles compound unequally. Demographics and geography play a major role; for instance, youth in rural communities face significantly steeper hurdles and fewer local opportunities than their peers in urban centers. Without early employment, young people miss out on building the social capital and professional networks essential for opening career doors down the road.  They don’t have the early stepping stones of experience and responsibility that can lead to a pathway forward.

The good news is that we know what works

There have been a myriad of investments and innovations in the area of youth training and employment in recent years. The federal government has provided wage subsidies for hiring youth, and provinces have encouraged – and sometimes even require – post secondary institutions to offer more experiential learning. Work-integrated learning opportunities, such as co-ops, internships, and experiential learning placements—consistently help bridge the gap between education and employment. They allow students to develop practical workplace skills, build confidence, and demonstrate their value to employers before graduation.

Most of the policies and programs focus on young people – preparing them for the workplace, and ensuring they have in-demand skills.  At the same time, we see ample opportunity for employers to find possibility and opportunity through  young talent. Young people bring fresh perspectives, adaptability, and some of the strongest AI adoption skills in the workforce today. Just as importantly, they bring curiosity and a willingness to learn, qualities that are increasingly essential in a rapidly changing economy. Hiring managers should place a higher premium on social and emotional competencies. Skills like effective communication, collaboration, and adaptability are much harder to teach quickly on the job. 

If we want to improve outcomes for young people, we need to create more pathways from education to employment. Investing in those opportunities today will help build a stronger workforce, and a stronger economy—for years to come.

This article is adapted from an interview between Tricia Williams and BetaKit. AI-assisted tools were utilized for transcription and initial drafting. The final text was fully reviewed and edited for accuracy by our team.

The views, thoughts and opinions expressed here are the author’s own and do not necessarily reflect the viewpoint, official policy or position of the Future Skills Centre or any of its staff members or consortium partners.