Christopher Liew: Why so many young Canadians can’t find jobs

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Christopher Liew is a CFP®, CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers at Blueprint Financial.

Moving out on your own and becoming self-sufficient is an important and exciting milestone for many young people. Unfortunately, in today’s economy, it’s become harder than ever.

Rising living costs and the need for extensive experience to qualify for many “entry-level” jobs only add to the challenge. For parents, educators, and policymakers, this is becoming a growing concern.

Below, I’ll outline some of the underlying factors behind the issue and some possible solutions to help job-seekers find secure and stable work.

Why young Canadians are having trouble finding work

Youth unemployment rates remain consistently higher than the national average, and many of those who are able to get jobs find themselves underemployed with only part-time hours, contract work, or in roles outside their interests or field of study.

According to Statistics Canada’s June 2025 labour survey, the unemployment rate for those aged 15 to 24 stood at 14.2 per cent, which is more than double the national jobless rate. For students returning to school this summer, the prospects look even bleaker as the unemployment rate for this group is 17.4 per cent.

Here are some of the underlying causes.

Fewer entry-level opportunities

Finding that first job is getting tougher for young Canadians. According to Indeed Hiring Lab data, postings for summer jobs, many of which are traditionally entry level, were down 22% in May 2025 compared to the year before.

Instead, they’re seeking candidates with prior experience. For young graduates who are just starting out, this creates a catch-22 whereby they need experience to get a job, but can’t get a job to gain experience.

While internships can provide some of this experience, many internship positions pay very little (or not at all). For students who lack financial support and have bills to pay, this option simply isn’t viable, especially with today’s high cost of living.

More competition in the market

With more Canadians pursuing post-secondary education, degrees and diplomas no longer guarantee an edge. According to a report by RBC’s Thought Leadership Group, 63 per cent of Canadians between 25 and 64 had a postsecondary credential compared to other OECD countries, which average 41 per cent.

The rapid advance of AI is also another point of competition, especially in the tech sector. The company that may have once required an office full of entry-level programmers working under a lead project manager, now only needs a small handful of skilled code editors or prompt engineers who can use AI to write code that once took hours in a matter of seconds.

The gap between education and market needs

While Canada faces shortages in skilled trades, health care, and technology, many young job seekers are graduating into oversaturated fields. Employers in high-demand industries report difficulty finding qualified applicants, while graduates in other areas struggle to secure relevant positions.

Tips for young people to find jobs

The changing economy and job market are unavoidable. However, there are steps that young people can take to improve their job prospects.

1. Networking and mentorship

Many jobs are filled before they’re ever posted online. Tapping into alumni networks, attending industry events, or connecting with professionals on LinkedIn can help uncover hidden opportunities. A mentor can also help guide you on how to break into competitive fields, avoid common mistakes, and even put you in touch with their personal connections.

2. Improve your skills

Investing in short courses or certifications can often bridge your skills gap and open up new employment opportunities for you, especially in sectors such as technology, skilled trades, and healthcare. Free or subsidized programs, including government training initiatives, can make it easier to pivot into areas where demand for workers is high.

Also, especially if you’re young, don’t be afraid to start over and go a completely different direction

and choose a new career field. I’ve met a number of college graduates who decided they didn’t like their desk job and decided to get certified in a trade such as electrical or welding and love what they do now.

3. Stay flexible with your expectations

If you’re finding it difficult to find your dream job, it’s okay to settle with another job while you continue to search for the opportunity you want the most. Not only will these other jobs allow you to pay the bills, but they may allow you to make new connections that can help you find work in your desired field.

Often, those working in food-and-beverage, sales, or hospitality use their constant exposure to new faces to their benefit. A good impression left on a client or customer can often lead to a personal connection that opens up more career opportunities.

Final thoughts

Youth unemployment is an issue that’s constantly being shaped by shifting labour demands, rising education costs, and fewer entry-level opportunities. If you feel stuck as looking for a job that aligns with your skills, you can help your prospects by gaining practical experience through part-time opportunities, making new connections, expanding your skill set, and working on personal projects in your field of study.