Canada can’t wait out the current crisis in youth unemployment

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Proactive solutions are needed to support students and secure our future economic stability

Transitioning students from education to the workforce is one of Canada’s most pressing economic priorities. Currently, however, Canadian youth are missing out on the vital early career experience that would enable them to enter in-demand and emerging roles. In 2025, the unemployment rate for those under the age of 29 reached as high as 14.2 per cent, its highest point in over a decade outside of the COVID-19 pandemic.¹

This downturn is not a passing phenomenon with only momentary impact. Failing to act will lead to a snowball effect in which the current crisis becomes future economic stagnation. Young Canadians currently struggling in the job market will struggle to afford housing, start businesses and save for retirement – all due to the reduced earnings and delayed career progression triggered by this historic spike in youth unemployment.

Canada can’t “wait out” this crisis. Policy makers, sector councils and educational institutions need to work together to close this gap by ensuring students have the support they need to transition from education to employment.

Doubling down on models that already work

According to a 2025 report from Burning Glass, students with at least one internship or placement prior to graduation are 48.5 per cent less likely to be underemployed.² Creating meaningful entry-level opportunities for students – especially in green energy, health care and digital services – should therefore be a top priority.

Work-integrated learning (WIL) programs such as the Government of Canada’s Student Work Placement Program (SWPP), in which students combine their formal studies with real-world work experience in related industries, offers students access to valuable work experience, opportunities to grow their networks and greater confidence when entering the workforce.

Aligning training strategies to the labour market

More robust labour market information tools will help policymakers, sector councils and educators build a collective understanding of where vacancies and new opportunities are emerging and how skills are evolving. This information will better position Canada to address gaps in policies and programs.

Targeting mentorship opportunities to marginalized groups

Racialized youth, Indigenous communities and those with disabilities are more likely to experience unemployment and underemployment. Targeted mentorship and transition programs will guard against these communities being left behind.

The youth employment crisis reflects a misalignment between the needs of the labour market, education, and skills and training policy. That misalignment will not solve itself. As Magnet has seen in our experience delivering SWPP, programs and their supporting infrastructure need to be designed with intention and with the participation of all relevant stakeholders.

With SWPP – funded by the Government of Canada and delivered by 18 sectoral partners across Canada – more than 250,000 Canadian post-secondary students have gained paid work experiences. With many of those students transitioning into long-term employment, we are confident in the ability of Canada’s leaders in workforce development to work together and solve complex challenges.

There is still more work to be done, but Canada has the tools and knowledge to secure a prosperous and inclusive future for the next generation.

The Student Work Placement Program is currently accepting applications. Employers can access up to $7,000 in funding support when they hire an eligible student. Visit swpprogram.ca to learn more.

Advertising feature provided by Magnet. The Globe and Mail’s editorial department was not involved.