Why Rising Student Unemployment Should Concern Us All — And Why Short-Term Solutions Aren’t Enough

It’s hard not to be worried when nearly 20 per cent of Canadian students who are headed back to school this fall find themselves without a job. The last time we saw numbers this high outside a crisis like the COVID-19 pandemic was back in May 2009 — in the wake of a financial crisis. Clearly something is amiss in the youth job market today, and simply adding a handful of summer jobs, however well-intentioned, isn’t going to cut it.

Ottawa’s expansion of the Canada Summer Jobs program — adding 6,000 subsidized positions on top of the 70,000 already available — is a step in the right direction. It signals the federal government’s recognition that young people need help. But this policy, much like putting a small bandage on a deep wound, only treats the symptoms of a much more pervasive problem.

For years, we’ve gotten used to thinking about youth employment in the context of education, training, and temporary programs. But the roots of the current struggles lie in a weak job market that’s hurting everyone, not just students. The national unemployment rate has ticked up to 7 per cent, and sectors that typically absorb a large number of young workers — like manufacturing — have been losing ground, particularly in communities close to the U.S. border.

This highlights a key issue: the health of the youth job market isn’t an isolated phenomenon; it’s a reflection of the broader economic climate. Young people are the first to suffer when businesses cut back and hiring drops. Rising youth unemployment signals trouble not just for their future employment prospects, but for the overall health of the Canadian workforce.

Some, like economist Brendon Bernard, point to a range of factors — from weak manufacturing employment to population growth and a slowdown in job-changing — that collectively undermine opportunities for young workers. Importantly, the rate of job-switching has fallen to nearly a third lower than it was in 2019, which makes it hard for young people to move up the employment ladder.

Furthermore, the federal government itself has gotten weak signals from businesses about their hiring plans. Applications for the Canada Summer Jobs program fell this year, reflecting a reduced demand for workers. It’s a clear indicator that companies are nervous about future economic conditions and less willing to take on additional, temporary employees.

Some policy makers seem to view the youth job crisis in isolation — something that can be addressed by adding a few more subsidized positions. But we need to treat it for what it is: a symptom of a weak and stagnant job market. Tackling it will require a much more ambitious approach — boosting economic growth, strengthening sectors that employ young people, and removing obstacles that make it hard for businesses to hire and for workers to move upward.

In the meantime, we should be frank about the limits of programs like Canada Summer Jobs. They can help a few, but they shouldn’t be a substitute for a strong, healthy employment market — the kind that benefits everyone, not just those in their first years of employment.

Ultimately, if we want to empower the next generation, we need to create an economic climate that lets them flourish on their own. That means addressing the roots of weak job growth, not just applying a temporary fix.