Young Workers Face Rising Challenges Amid Economic Disruption

A recent report by Desjardins Economics highlights significant challenges for young workers in Canada, attributing their difficulties to the surge in gig work, advancements in artificial intelligence, and a rapidly growing population. Released on September 4, 2025, the report coincides with rising concerns over youth unemployment, which reached 14.6 percent for individuals aged 15 to 24 in July, marking a nearly 15-year high outside of the COVID-19 pandemic.

The findings illustrate a troubling trend, with Statistics Canada revealing that returning students aged 15 and 16 experienced an alarming unemployment rate of 31.4 percent during the peak of the summer job market. According to Kari Norman, an economist at Desjardins and author of the report, the challenges faced by young job seekers are apparent in her own family and community. “I’ve seen my own kids and my friends’ kids struggle with finding summer jobs, co-op placements, anything like that,” she noted.

In light of these statistics, Pierre Poilievre, the leader of the Conservative Party, criticized the current immigration policy, claiming it competes with young Canadians for limited job opportunities. He referred to young people as the “generation screwed” and urged the government to abolish the temporary foreign worker program. In response, Prime Minister Mark Carney reaffirmed his commitment to reducing immigration but did not agree to eliminate the program, noting provincial support for it. He suggested that adjustments to Canada’s immigration strategy may be necessary in the future.

The report also connects the current youth unemployment crisis to the aftermath of the COVID-19 pandemic. LJ Valencia, another author of the study, pointed out that businesses had previously increased their demand for labor, leading to a higher influx of foreign workers and relaxed restrictions on international students. “Job opportunities are declining because the economy can’t keep up with this state of population growth we’ve seen over the past few years,” Valencia stated.

Young international students and the children of recent immigrants are disproportionately affected by the current job market, experiencing greater difficulty in securing employment compared to their Canadian-born peers. The Liberal government has announced intentions to slow population growth and limit non-permanent residents, which economists from Desjardins suggest could help restore balance in the youth labor market. Norman stated, “Reducing the number of youth through tightening immigration both in international students and other newcomers should soften the blow a little bit.”

The emergence of the gig economy adds another layer of complexity to these challenges. Many app-based jobs impose age restrictions that prevent younger individuals from participating, leaving them without opportunities to gain early work experience. Norman shared her concerns about her own child, who is unable to pursue jobs like dog walking due to these restrictions.

Moreover, the rise of artificial intelligence is impacting entry-level job availability. According to a recent study from Stanford University, while core-working-age individuals in the United States have faced minimal disruptions, younger people are beginning to see declines in employment opportunities. Valencia explained that this trend could stem from a reduction in entry-level positions as companies increasingly turn to AI solutions for tasks traditionally assigned to young workers.

Looking ahead, the recovery of youth employment may hinge on broader economic developments. As Canada grapples with the implications of U.S. tariffs and overall trade uncertainties, surveys from the Bank of Canada indicate that businesses are becoming more cautious in their hiring practices. Valencia warned that such economic shifts typically have a pronounced effect on youth, who are often the first to feel the impact of job market contractions.

If Canada can secure a favorable trade agreement with the United States or implement strategies to foster business investment, it could potentially create new opportunities for young workers. Norman emphasized the urgency of ensuring that youth gain valuable work experience during their teenage years, as failing to do so may lead them to rely solely on debt to finance their post-secondary education, adversely affecting their long-term financial stability.

A coordinated effort from both provincial and federal governments is essential to support young people in their transitions from high school to the workforce, vocational training, or further education. Valencia concluded, “This is the future of our labor force right here. If they’re restricted or hampered by a lack of job opportunities and career development, that has significant structural effects on the economy looking towards the future.”