Youth employment… has fallen back to where it was in mid-2017, erasing eight years of gains,' says provincial report
British Columbia’s weakening youth employment picture is raising concerns for employers and HR professionals about future talent pipelines and workforce stability, according to a new report from the Business Council of British Columbia (BCBC).
The BCBC found that fewer young people are working, while more are unemployed or leaving the labour force entirely.
Since 2019, youth employment has declined even as the population aged 15 to 24 grew by roughly 58,000, driven largely by temporary residents and international students.
“Youth employment… has fallen back to where it was in mid-2017, erasing roughly eight years of gains,” the BCBC said.
The report emphasized that the issue extends beyond unemployment, highlighting a growing share of young people who are no longer working or actively seeking employment.
‘Discouraged workers’ push participation to 25-year low
The most significant shift has been the rise in youth exiting the labour market entirely. Between January 2019 and March 2026, the number of young people not in the labour force increased by 85,000 — more than total population growth over that period.
“The increase in young people sitting outside the labour market was larger than the entire population increase,” the BCBC reported.
Many of these individuals are not counted as unemployed because they have stopped looking for work, reflecting a “discouraged worker effect.” As a result, youth labour force participation has fallen to 60 per cent, the lowest level in nearly a quarter century.
The BCBC cautioned that this decline masks the full extent of labour market weakness. “The headline youth unemployment rate is understating how weak the youth labour market really is,” the report said.
Losses concentrated in entry-level sectors
Job losses have been concentrated in industries that traditionally provide entry-level opportunities. Retail trade, along with accommodation and food services, accounted for nearly half of youth employment in 2019 but have seen the largest declines.
Between 2019 and 2025, accommodation and food services lost more than 20,000 youth jobs, while retail shed about 9,600 positions.
The BCBC noted these losses exceed the overall decline, meaning growth in other sectors only partially offset them.
This erosion of entry-level roles is reducing opportunities for young people to gain initial work experience.
Earlier this year, the federal government imposed new obligations on employers that rely on low‑wage temporary foreign workers, requiring them to target young people in Canada before turning to overseas recruits.
B.C. lags other provinces as structural pressures mount
British Columbia has seen the sharpest deterioration in youth employment among provinces, according to the BCBC. Since 2019, youth employment has declined by 14 per cent in B.C., while it has increased in most other provinces.
“B.C.'s youth labour market has weakened more than any other province's over the past seven years,” the BCBC said.
The report attributes the trend to weak private-sector hiring, rising labour supply, and higher employer costs, including the country’s highest minimum wage and significant payroll tax burdens.
“Young workers… are the most vulnerable… and are effectively squeezed off the lowest rung of the labour market,” the BCBC said.
The organization warned that reduced youth employment could have lasting effects on workforce development and economic growth.
“The most effective way to bring discouraged young workers back into the labour market is to give employers a reason to hire them,” the BCBC said.
The national youth employment outlook
One expert recently told HRD that the youth labour market is being affected first by a sharp increase in labour supply, led by international students.
“On the labour supply side, the burst of international students following the pandemic caused the labour force in the 15‑24 year old category to surge 15% in the four years from mid‑2021 to mid‑2025, versus a rise of less than 10% in the labour force of those age 25 and over,” said Douglas Porter, chief economist at BMO.
He said the combination of more young people looking for work and relatively modest hiring appetite for new entrants is creating a tougher environment for 15‑ to 24‑year‑olds. The gap between youth unemployment and the jobless rate for the rest of the population is now wider than usual, which he described as the key concern. “The current youth jobless rate is only a bit above its long‑run median (or 13.6%); but the issue now is it is notably higher than normal versus the jobless rate for the rest of the population,” he said.
A previous Fraser Institute study links the sharp rise in youth unemployment to Canadian government policies, warning the situation could have lasting consequences for an entire generation of workers.
