‘We are acting with urgency and purpose so youth can thrive in the labour market’
The federal government is launching a national consultation to address challenges in youth employment and develop strategies to help young workers secure sustainable careers.
Employment and Social Development Canada has opened the online engagement "Building Canada Strong: Youth in the Labour Market" to gather input from Canadians on improving youth employment outcomes.
"The world of work is changing fast, and young Canadians are feeling it," says Patty Hajdu, federal minister of jobs and families. "These are challenging times, and we are acting with urgency and purpose so youth can thrive in the labour market. It's our country, it's your future and we are going to give it back to you—by creating good jobs and building career pathways that last."
The consultation runs through Dec. 19, 2025, and welcomes written submissions and responses to an online questionnaire.
Equipping youth with skills, experience
The government has backed the initiative with substantial funding. Budget 2025 committed more than $1.5 billion to equip youth with skills and work experience needed for successful careers. Employment and Social Development Canada projects this investment will support approximately 175,000 young people in 2026–27 through hands-on training and experience programs.
A discussion paper available on the consultation page outlines current employment challenges, examines long-term impacts, and proposes potential solutions for strengthening youth labour market participation.
Here is the current state of unemployment in Canada, according to the discussion paper from the federal government:
- Youth unemployment has been on an upward trend since early 2023.
- In October 2025, youth (15–24) had an unemployment rate of 14.1%, above the pre-pandemic average of 10.8% recorded from 2017 to 2019.
- In contrast, the unemployment rate for adults aged 25–54 was 6.9% in October 2025, only slightly higher than the pre-pandemic average of 5% recorded from 2017 to 2019.
- A recent report by Desjardins noted that teenagers (15–19) have faced difficulty, with nearly 1 in 5 teens who would like to work unable to find a job.
- Youth from historically underrepresented groups—such as Black youth, racialized youth, Indigenous youth, and youth with disabilities—continue to face significantly higher rates of unemployment than their peers.
- Since 2023, there has been a notable increase in youth that are not in education, employment or training (NEET). There has been an increase of 201,800 NEET youth to approximately 914,000 youth (aged 15 to 29) in 2025. This represents 11.5% of the total youth population.
Those who want to share comments and suggestions can do so right here.
Previously, the Canadian Centre for Policy Alternatives (CCPA) urged governments to enhance efforts to ensure Canadian youth are job-ready when they enter the workforce. The 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.
Youth employment strategy
Ottawa has a Youth Employment and Skills Strategy (YESS), which delivers 16 programs, including Canada Summer Jobs (CSJ), through a network of 12 federal departments, agencies, and Crown corporations.
The strategy is designed to support diverse youth (aged 15 to 30) in becoming job-ready through work experience, training, skills development and wraparound supports that allow them to successfully transition into diverse sectors of the labour market. Through its wide range of programs, the strategy invests in young people to build a strong Canadian economy while ensuring we continue to support those who may struggle to get ahead.
Recently, the federal government opened the application period for the 2026 CSJ program, inviting employers across the country to submit their proposals to provide summer work experiences for young Canadians while also looking to address labour shortages.
Also, Budget 2025 announced a combined investment of more than $1.5 billion to help youth gain the skills and experience they need for successful careers. This investment will empower about 175,000 youth in 2026–27 to develop work-ready skills through hands-on experience and training, so they can be equipped with the skills to thrive today and the confidence to lead tomorrow, noted the federal government.
Provinces and territories also provide significant labour market supports for youth, including supporting high school completion and helping youth overcome labour market barriers through Labour Market Transfer Agreement (LMTA) programming and individual provincial or territorial programs.
Failure to address the youth unemployment crisis will cost Canada $18.5 billion in GDP by 2034, according to a previous report.
