TORONTO — Jobs are available, but young job seekers and employers seem to be speaking two different languages, and youth unemployment continues to rise. That’s what emerges from a report by the Canadian Federation of Independent Business (CFIB), which found that young people are looking for work, but not through the channels employers are using to hire.
Most small businesses prefer to rely on personal connections and professional networks to recruit young Canadians: six in ten (62%) favour this approach over online job boards (44%). However, this strategy sharply contrasts with how young people search for jobs, as nearly three in four (73%) use online job platforms to find opportunities.
The mismatch is not new, but it comes at a time when Canada is facing high youth unemployment. According to Statistics Canada, the youth unemployment rate rose more than the overall rate in April, increasing by 0.5 percentage points to 14.3% (in September 2025, it reached 14.6%, the highest level in 15 years excluding the COVID-19 pandemic period).
Hiring practices also vary by sector. Nearly half of companies in professional services — such as accounting and engineering firms — use both online job platforms and internship or co-op programs to recruit staff, and more than a third also rely on school and university career services.
By contrast, consumer-facing sectors such as retail, hospitality, and the arts are more likely to use low-cost methods, including social media, unsolicited applications, and “help wanted” signs displayed in stores.
Larger companies also tend to use a wider range of recruitment channels compared to smaller firms. In particular, fewer than one-third of businesses with 0–4 employees use online job boards, compared to more than two-thirds of companies with over 50 employees.
Another key finding is that job search strategies vary by province. In Quebec, for example, young people are less likely to use online job boards and more likely to submit unsolicited applications, while in Ontario they are more inclined to take part in internship programs or use school career services.
Finally, most small business owners say they prioritise soft skills and attitude over education or experience. More than nine in ten (91%) say they look primarily for a “positive attitude” or “enthusiasm,” while 84% value “motivation,” 76% “professionalism,” and 73% strong communication skills. All qualities that many young people already have — the challenge is simply finding where to “reach” them.
But the report underlines also another issue: the youth perspective shows young people are navigating structural and process-related barriers (as well as wage-related ones, given the cost of living…) that make it difficult to secure even a first opportunity.
To make all this situation easier, CFIB’s report – titled “Bridging the Gap Between Small Businesses and Canada’s Youth” and produced by analysts Molly MacCormack and Bérengère Fouqueray – recommends a set of actions (to government, to small businesses, and to youth) to strengthen the connection between youth and businesses, especially the small ones, which have long played a foundational role in helping young people gain early work experience and build essential skills: the government is urged to make minimum wage increases more predictable, reduce payroll taxes, cut red tape, and expand tax credits and hiring supports for youth employment, especially through internships and co-op programs; small businesses are encouraged to improve job postings, focus on essential skills rather than experience, and use online platforms and local networks more actively; young people are advised to strengthen soft skills, show initiative, adapt their job search strategies, and rely on both networks and small businesses to gain practical experience.
To read the full report, click here: Work in Progress: Bridging the Gap Between Small Businesses and Canada’s Youth
