Supporting Youth through Periods of Unemployment
Supporting Youth through Periods of Unemployment
In the last few years, Canadian youth have endured challenges in the job market, with many submitting untold job applications without results.
High youth unemployment, particularly for youth experiencing disability and who may have intersecting identities, is due to multiple factors—not just AI—and the impacts could be felt long term.
Service providers and employers can implement practices that support positive employment transitions and experiences for young job seekers and workers.
Credit: Francis Odeyemi via Unsplash
Unemployment still high—especially for underrepresented youth
In September 2025, the unemployment rate for youth (15-24 years old) peaked at 14.7%, the highest rate since the 2010 recession, not counting the COVID-19 pandemic. The employment rate was 53.8%, the lowest since November 1999 (StatCan, 2025).
While in July 2026 the youth unemployment rate fell to 12.6%, it remains higher than the pre-pandemic average of 10.8% (Stat Can, 2026). Additionally, the unemployment rate for underrepresented youth remains significantly higher than that for youth who are non-racialized and non-Indigenous and youth without disabilities.
In 2025, the unemployment rate for youth 15-24 with disabilities was significantly higher (18.3%) than that for youth without disabilities (12.6%). In July 2026, the unemployment rate was highest among youth who are Black (22.6%), Indigenous (17.3%), Chinese (15.4%), and South Asian (13.9%).
July 2026 in Canada
Youth (15-24) Unemployment Rate
- Black youth 22.6%
- Indigenous youth 17.3%
- Chinese youth 15.4%
- South Asian youth 13.9%
- Non-racialized and non-Indigenous youth 11.6%
2025 in Canada
Youth (15-24) Unemployment Rate
- Youth with disabilities 18.3%
- Youth without disabilities 12.6%
Sources: Statistics Canada (Labour Force Survey July 2026), Statistics Canada (Labour force characteristics by detailed Indigenous group, 2026), Statistics Canada (Labour market indicators for persons with and without disabilities, 2026), Government of Canada (2025)
It’s not all about AI
Youth unemployment and underemployment in Canada is not all due to artificial intelligence (AI). While US research points to a decline in entry-level jobs since the adoption of generative AI, Canadian data suggests the decline preceded AI (TD, 2026).
In general, when the economy weakens and hiring slows, employers typically reduce entry-level positions and will often hire youth last since they lack experience.
Younger workers trending downward since 80s
The numbers indicate that for youth 20-24 years old, the unemployment rate is where it should be given market conditions. However, for teenagers (15-19 years old), the rate is much higher than expected (TD, 2026).
Since the late 1980s, long-term industry hiring trends for younger workers have been declining and the youth unemployment rate has been rising (Deloitte, 2024). The share of younger workers in the workforce plummeted from 21% in 1987 to today’s 13% (TD, 2026).
The share of younger workers in the workforce plummeted from 21% in 1987 to 13% today (TD, 2026).
Largest decline in accommodation/food services and retail
Most of the recent decline occurred in the accommodation/food services and retail industries that employ the largest number of young people.
While the number of younger workers has actually grown in accommodation/food services, the sector is still recovering from the pandemic. On the other hand, in retail, shifts toward ecommerce and automation have reduced entry-level jobs for young people (TD, 2026).
Remote work hinders hiring, mentoring, and learning
The rise in remote work post-pandemic has affected early-career hiring as well as mentoring and on-the-job learning, which can be more challenging in a virtual environment.
Reduced supports have left many young workers struggling not only to find work but to adjust to new positions they do get (TD, 2026).
More youth, more competition for jobs
Since 2023, Canada’s population aged 15-24 has increased by about 360,000, with 60% of that growth in the 20-24 age range. While that might be good news for our aging workforce, large numbers of young workers all entering the labour market at once means they are competing for jobs (TD, 2026).
The result is more young people 15-24 saying they want to work but aren’t looking for a job because they’re discouraged. Since 2024, the population growth for this age group has been trending sharply downwards, which will probably result in less competition in the coming years (TD, 2026).
More young people want to work but aren’t looking for a job because they’re discouraged.
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A perfect storm for long-term impacts
Long-term unemployment—the share of unemployed people, including youth, searching for work for 27 weeks or more—has been rising since 2023. For many youth, challenges during job searches are compounded by gaps in education and career skills caused by the COVID-19 pandemic (ESDC, 2025).
In addition to unemployment, youth are more susceptible to other challenges, including the impacts of social media, the high costs of living, housing affordability, and accelerating climate impacts.
All these factors plus the current unstable political and economic climates may be generating a perfect storm that could impact young workers in the long term (Tobin – Future Skills Centre, 2024).
“Lengthy periods of unemployment and inactivity are also associated with deteriorating mental health and reduced social ties, especially among already disadvantaged youth.”
Tobin – Future Skills Centre, 2024
Unemployment can worsen mental health
Periods of unemployment early in life can result in poorer mental health and life satisfaction. People who are unemployed generally display lower levels of trust and engagement in civic activities (Deloitte, 2024).
Youth unemployment, especially when combined with other factors, is also associated with increased risks for abuse of alcohol and illicit substances and involvement in crime. The impacts of early unemployment can last into adulthood, regardless of later employment (Deloitte, 2024).
Support positive youth employment transitions
Service providers and employers can implement practices that support positive employment transitions and experiences for young job seekers and workers.
One best practice that shows up in many reports is collaboration among governments, service providers, local organizations, and businesses to combine multiple interventions for a holistic approach that maximizes resources and shares expertise. Integrating programs and services, for example collaborating on job search, training, wrap-around supports, and mental health services, can address the multi-faceted needs of young people as they transition into employment.
Service Providers
- Explore the integration of employment programs into existing mental health services to address the multi-faceted barriers and challenges faced by youth.
- Offer training programs that bridge education-work gaps by enhancing the employment-related technical and nontechnical skills of job seekers.
- Provide entrepreneurial skills, including financial literacy, and facilitate access to physical, financial, and social capital for self-employment.
- Focus on achieving an effective, tailored match between job seekers and employers.
- Find short-term learning opportunities that can boost job seeker skills and keep them connected to the labour market, like mentoring, workplace visits, and government employment programs.
- Access toolkits and local knowledge to better support young job seekers with intersecting identities. For instance, the Strength in Structure toolkit outlines 10 objectives for programming by service providers to support Black youth.
Employers
- Assess your recruitment and onboarding practices to remove potential barriers and to ensure they are accessible and inclusive for youth experiencing disability and who may have intersecting identities.
- Offer in person and virtual (especially in rural and remote areas) experiential learning opportunities for young job seekers, for instance mentoring, workplace visits, or practical work experiences.
- Many employers say they’re too busy and don’t have time to mentor job seekers or new workers. Find an approach that works within your capacity. For example:
- Provide a half-day mentorship with job shadowing, which allows you to do your work while spending a few moments here and there talking about tasks.
- Support young workers by letting them attend online training during work hours to boost soft skills and specific work-related skills—which can then be reinforced during on-the-job tasks.
- Invite young job seekers and workers to professional networking events and help them meet others.
- If you’re working remotely, set aside 20 minutes every week to spend with young workers for a reciprocal exchange with questions and knowledge sharing.
Credit: UK Black Tech via Unsplash
Provide a flexible, supportive environment that allows young workers to learn and work in a way that works best for them.
- Encourage a positive peer environment by grouping young workers to complete tasks or projects, so they can enhance team-building skills and learn from one another. Pair groups with an experienced worker who can act as a mentor and offer support.
- Provide a flexible, supportive environment that allows young workers to learn and work in a way that works best for them. Some people learn best by doing, others by watching, and some by reading. Some workers learn best alone and some love to learn with others. Ask young workers how they prefer to learn and work.
- If they prefer to learn by watching a video but you don’t currently have one, ask them if they’d like to create a video of a specific task.
- Ensure young workers are familiar with and understand your workplace’s mental health supports.
Additional Resources
- Youth experiencing disability (mentees) and employers (mentors) can participate in a short mentoring experience (from 1 hour to 1 day) through MentorAbility.
- Improve accessibility and inclusion in your recruitment and onboarding practices with the CASE HR Inclusive Policy Toolkit.
- Youth can register for the free Skills Academy to gain essential skills and The Network for low-barrier monthly events where they learn how to connect with others, both offered by the King’s Trust Canada.
References
Deloitte. Failure to Launch: The Economic and Social Costs of Youth Unemployment and their Long-term Impacts. 2024. Commissioned by the King’s Trust Canada.
Employment and Social Development Canada (ESDC). Building Canada Strong: Youth in the Labour Market, discussion paper. November 21, 2025. Accessed September 2, 2026.
Government of Canada. Question Period Note: Employment and Skills Support for Canada’s Youth. June 12, 2025. Accessed September 3, 2026.
Statistics Canada. Labour Force Survey, September 2025. October 10, 2025. Accessed September 2, 2026.
Statistics Canada. Labour market indicators for persons with and without disabilities, annual. May 19, 2026. Accessed September 3, 2026.
Statistics Canada. Labour Force Survey July 2026. August 7, 2026. Accessed September 2, 2026.
Statistics Canada. Labour force characteristics by detailed Indigenous group living off reserve, three-month moving averages, monthly, unadjusted for seasonality. August 7, 2026. Accessed September 3, 2026.
TD. Understanding the Rise in Canada’s Youth Unemployment. August 12, 2026. Accessed September 2, 2026.
Tobin, S. Enhancing Career Prospects and Well-Being for Canadian Youth. Future Skills Centre. 2024.