Gen Z Is Struggling in Canada’s Worst Youth Job Market in Decades

Gen Z Canadians graduating in 2025 are entering one of the toughest job markets in a generation, with youth unemployment at its highest level since the mid-1990s—excluding the pandemic years. What makes this downturn particularly difficult is not just the numbers, but the changing shape of the economy and the systemic barriers young people now face.

A Bleak Job Market for Young Canadians

Recent data from Statistics Canada shows unemployment among 15- to 24-year-olds has spiked—mirroring the economic uncertainty of the 1980s and 1990s. But this time, graduates are entering a market impacted by automation, global trade instability, and the aftershocks of COVID-19 and inflation.

“It’s bleak,” said Sarah Chung, a 23-year-old graduate from the University of Calgary. Despite her honours degree, she hasn’t landed work in her field and plans to pursue grad school instead.

Why This Job Crisis Feels Different

Experts describe youth unemployment as a “canary in the coal mine”—an early warning of broader labour market challenges. A mix of factors is driving this crisis:

• Post-pandemic hiring surges have cooled significantly.
• Surging population growth has outpaced job creation.
• Automation may be replacing entry-level roles, though more data is needed.
• Ongoing economic uncertainty, worsened by a U.S. trade war, has stifled employer confidence.

“Youth employment is more than just about jobs—it reflects deeper economic vulnerabilities,” said Tricia Williams of the Future Skills Centre.

The Return of ‘Wage Scarring’

Some Gen Z graduates are already taking low-wage survival jobs, often in roles requiring no degree.

“I spent two hours sweeping yesterday, and I have a mechanical engineering degree,” said Ben Gooch, 24, who now works part-time at a garden centre after hundreds of unanswered job applications.

Economists warn this leads to “wage scarring”—a long-term dip in income for those entering the workforce during a downturn. Past recessions show that early-career setbacks can ripple for years, affecting both earnings and mental health.

Not Just a Youth Problem

Young workers are often the first to lose jobs during a slowdown, noted economist Charles St-Arnaud. But the implications go beyond Gen Z.

“Young people are a valuable national resource. If we fail to support them now, the entire economy loses out,” said Williams.

Still, some economists argue the problem reflects more on the nature of the current economy than a failing recovery. Those who do find high-paying roles are often in niche or in-demand fields, creating a growing gap between well-positioned youth and everyone else.

What’s Next?

Canada’s NEET rate—youth not in education, employment, or training—is climbing. And many recent grads say they feel stuck and unsure about their future.

“I’m kind of waiting for life to start,” Gooch said.

Experts agree that structural support, targeted job programs, and clearer pathways from education to employment are needed now more than ever to prevent a lost generation of workers.

Are you or someone you know affected by youth unemployment? What solutions do you think could help? Let us know in the comments.

More…

• https://www.cbc.ca/news/business/youth-unemployment-rate-1.7549979 
• https://news.outsourceaccelerator.com/chinese-gen-z-rat-people-lifestyle
• https://www.reddit.com/r/canada/comments/1l8o8nq/gen_z_is_facing_the_worst_youth_unemployment_rate