TORONTO – Over the past two years, unemployment among 15 to 24 year-olds in Canada has risen by about 3 percentage points, one of the largest increases among the 25 largest economies in the Organization for Economic Cooperation and Development (OECD), including Australia, the United Kingdom and the United States. 

Bloomberg reports that while Canada’s youth unemployment rate, at 13.4% in the first half of 2025, was not the highest in the OECD – Spain’s was 26.2% – , it is anyway among the fastest growing among leading nations: Canada has seen one of the largest increases among all 38 OECD countries.

A sharp increase in post-pandemic immigration and an economy highly sensitive to U.S. trade policy appear to be driving the decline in employment. A cooling economy, business closures, rising automation and shifts in consumer behavior are rapidly reducing jobs for young people in a country that once was a favorite destination for young people around the world because it was easy to find work. But those days seem far away: in April, according to OECD, the unemployment rate for young people between the ages of 15 and 24 rose to 14.1%; in May, according to Bloomberg, one in seven young Canadians was unable to find a job.

An influx of foreign students and temporary workers has helped push Canada’s population growth rate to be among the highest in the world in 2023, causing a surge in the number of people looking for work. Declining employment in sectors that typically hire young people, including retail, restaurants and hotels, now appears to be playing a key role. The economic slowdown from the trade war, combined with rising automation and changing consumer habits, appears to be drying up jobs in these sectors, increasing competition among students and graduates.

“Young people are more likely to be looking for work. They are more likely to move in and out of the job market because they have less experience and may not be employers’ first choice” says Brendon Bernard, senior economist at job-listing website “Indeed”. He says that when there are few vacancies, the most experienced worker is preferred, and young people only have room when there are plenty of vacancies.

But even young people who are not looking for work are struggling: limited opportunities for career growth and income and higher costs for housing and other essentials have led to a decline in living standards.

In short: difficulty finding a job and difficulty supporting oneself even when there is work… is Canada no longer a country for young people?

To download and/or consult the latest OECD data on unemployment, click here: unemployment-rates-oecd-06-2025

Foto di Ashwini Chaudhary(Monty) da Unsplash