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Youth Unemployment Climbs as Summer Job Market Slows in Canada

As summer kicks off, a lot of young Canadians are finding it harder than usual to land a job. According to the latest Labour Force Survey from Statistics Canada, young Canadians are facing a challenging labour market and Youth employment remained stagnant while unemployment rates among students surged

For youth aged 15 to 24, employment stayed flat in May for the fourth month in a row. The employment rate held steady at 54.1%, but that’s still lower than it was this time last year.

Students Facing Steep Job Losses

It’s especially tough for students trying to find work before heading back to school in the fall. In May, the unemployment rate for returning students hit 20.1%—up more than 3 percentage points from last year, and among the highest we’ve seen in decades (excluding the pandemic).

Young men seem to be having the hardest time, with a student unemployment rate of 22.1% which is up 4.1 points, while the rate for young women rose to 18.4% which is up 2.3 points.

Just two years ago, student unemployment was at a record low of 11.4%.

Traditional Student Jobs Are Struggling Too

The industries that usually hire students—like retail, restaurants, and recreation—aren’t bouncing back the way many hoped. While retail still employs the most students (nearly 29%), jobs in accommodation and food services have dropped significantly, down more than 22% from last year.

Indigenous Youth Facing Bigger Barriers

The situation is even more difficult for many Indigenous youth. Employment rates for First Nations youth living off-reserve stayed at 46.1%, and 53.5% for Métis youth—both unchanged from last year. But for Inuit youth in Nunavut, the employment rate dropped to just 28.1%, down more than 7 percentage points.

What’s Next?

With summer just getting started, many young people are hoping things turn around. But with fewer job opportunities and more competition, this could be one of the toughest seasons in recent years for youth trying to build work experience—or simply earn a paycheque.

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