'The rising youth unemployment demands action that matches its scale'
The Canadian Centre for Policy Alternatives (CCPA) is urging governments to enhance efforts to ensure Canadian youth are job-ready when they enter the workforce.
This call to action comes amid what the CCPA describes as a “deepening youth employment emergency,” according to researcher Carolina Aragão, who notes that policy-makers and political discourse have “largely overlooked” the issue.
Between 2019 and 2025, the unemployment rate among teenagers aged 15 to 19 in Ontario rose from 14.9% to 22.2%—a 7.4 percentage point increase—based on Statistics Canada (StatCan) data cited in the CCPA’s report.
“This means nearly one in four teenagers in Ontario’s labour force is now unemployed,” says Aragão.
While unemployment remains lower among young adults, they too have seen significant increases. Among Ontarians aged 20 to 24, the unemployment rate rose from 9.9% to 13.2% (a 3.3 percentage point rise), and for those aged 25 to 29, it increased from 6.2% to 8.7% (a 2.5 percentage point rise).
As of May this year, the unemployment rate among Canadian youth stood at 14.2 per cent, according to StatCan.
Overall, Canada’s failure to address its youth unemployment crisis will cost the country $18.5 billion in GDP by 2034, find Kings’ Trust and Deloitte.
Young men, women, racialised gaps with unemployment
Aragão notes that there are also disparities when it comes to unemployment among young men and women.
Specifically, unemployment is higher among young men. This is “a persistent trend” driven by several factors. While young women increasingly pursue post-secondary education and combine studies with part-time work, young men are more likely to be disengaged from both work and education, she says.
Also, while unemployment patterns vary across gender and age groups due to different structural factors, they share common roots in deep systemic issues, says Aragão.
“These include racialized gaps in educational completion, limited skills development opportunities, and barriers to inclusive employment practices—all symptoms of a fragmented institutional support system that inadequately prepares and supports young people transitioning into adulthood.”
Among Canadian youth of different educational attainment levels. While those without a high school diploma are disproportionately affected, even college graduates felt the impact, according to the CCPA report.
“As companies sharply reduce their hiring of entry-level workers, students and new graduates are grappling to find work,” Aragão says.
“The youth unemployment hike unfolds against a backdrop of broader economic hardship. Ontarians are already struggling to put food on the table, keep a roof over their head, and many are taking on debt just to get by.”
How long does it take to find a job in Canada?
It is also taking significantly longer for young Canadians to find employment, the CCPA notes.
Teenagers aged 15 to 19 now face an average job search duration of 15 weeks, nearly double the eight weeks recorded in 2019—a 90% increase. For those aged 20 to 24, the average search has lengthened from 10 to 17 weeks. Among the 25 to 29 age group, job searches now average five months, compared to 14 weeks in 2019.
“Extended unemployment periods carry consequences that reach far beyond economic hardship,” says Aragão. “Young people experiencing prolonged joblessness often face mental health challenges, delayed financial independence, and difficulty establishing career trajectories. These critically missed opportunities also have repercussions for their professional networks and workplace skills.”
To address these challenges, Aragão is calling for a stronger governmental response. “The rising youth unemployment demands action that matches its scale,” she says.
She advocates for an expansion of publicly funded job training, renewed investment in post-secondary education, and the reallocation of proposed tax cuts toward targeted supports for youth employment.
“While the provincial government announced new investments in training and skill development, the current allocation may not be enough to tackle the double challenges of rising youth unemployment and re-skilling older workers displaced by tariffs,” Aragão says. “The data is clear: Ontario’s young people need support, and the time for transformative youth investment is here.”
Recently, Ontario announced it is investing nearly $1 billion over the next three years to help train and reskill workers.
Also, the provincial government launched an interactive online tool—named My Career Journey—which offers information that jobseekers and students need to begin fulfilling careers.
