Six national projects designed to address barriers young people face in job market
As Canadian students return to classrooms this fall, the federal government is rolling out a suite of new measures to help young people access education and launch their careers.
With a $26.1-million boost for national youth employment projects and continued enhancements to student financial aid, Ottawa is looking to make post-secondary education more affordable and equip youth with the skills needed for a changing workforce.
The new funding under the Youth Employment and Skills Strategy (YESS) Program includes a $26.1-million investment that will support six national projects designed to address barriers young people face in the job market.
These projects, funded through the Strategic Collaboration stream, bring together youth, service providers, and employers to test and scale solutions—such as new guidelines for integrating youth with disabilities and improved data collection tools for evidence-based decision-making.
“These new projects will help improve employment outcomes for a larger number of youth,” the government stated, noting that previous YESS investments are already providing employment supports to over 23,600 young people.
Making education more affordable for students
Affordability remains a key concern for students and families. For the 2025–26 academic year, the government is extending temporary increases to student grants and loans through the Canada Student Financial Assistance (CSFA) Program.
This includes maintaining a 40% increase to grants for full-time and part-time students, students with disabilities, and those with dependants, as well as raising the Canada Student Loan limit from $210 to $300 per week of study.
“During the 2025-26 academic year, approximately 593,000 Canadian students are expected to benefit from the 40% increase to non-repayable grants,” the government reported. An additional 367,000 students could benefit from the higher weekly loan limit, providing extra interest-free loans to those with unmet funding needs.
Overall, Canada’s failure to address its youth unemployment crisis will cost the country $18.5 billion in GDP by 2034, according to a separate report.
Expanded loan forgiveness for health workers
Recognizing the need for health care professionals in rural and remote communities, the government has increased the maximum amount of Canada Student Loan forgiveness by 50% for doctors and nurses working in under-served areas.
The definition of “under-served rural or remote community” has also been broadened, meaning doctors and nurses in more than 200 additional communities now qualify for this benefit.
Pending regulatory approval, loan forgiveness will soon be available to a wider range of professionals, including early childhood educators, dentists, pharmacists, teachers, social workers, and others.
Focus on equity and inclusion among youth
The new funding also targets youth facing unique challenges, including those with disabilities. Two of the six funded projects are specifically designed to address the employment barriers experienced by youth with disabilities, ensuring that the benefits of these programs reach those furthest from opportunity.
Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, emphasized the broader impact of these investments.
“When we invest in our youth, we invest in the future of our country. Through the YESS and CSFA Program, we are securing opportunities for students while allowing businesses nationwide to access young talent. As our economy evolves with new technologies and growing industries, we are investing in emerging leaders to ensure they have the skills, training and support to lead, innovate and succeed in tomorrow’s workforce.”
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
‘Rapidly changing labour market’
The YESS and CSFA programs are part of a broader federal strategy to empower youth. Other initiatives include the Student Work Placement Program, Canada Service Corps, and Supports for Student Learning Program, all designed to create opportunities and build skills for young Canadians.
In total, these programs are expected to create 162,000 opportunities for youth in 2025–26.
“Youth need the skills and experience to succeed in a rapidly changing labour market. As students head back to school, the Government of Canada is lowering the cost of education and strengthening the supports that help young Canadians prepare for the job market. By investing in their potential, we’re investing in Canada’s future prosperity,” said Anna Gainey, Secretary of State for Children and Youth.
