One Nation, Two Job Markets

Just last year, Chrystia Freeland stated: “The Canadian economy is outperforming private sector expectations: 90,000 jobs were created in April and more than 1.3 million more Canadians are employed today than before the pandemic” 

Whilst this message by the former Deputy Prime Minister of Canada underscores a positive national employment trend, it diminishes the specific challenges faced by younger Canadians in the job market. When Freeland had made this statement (May 2024), the youth unemployment rate was 14%, which was “more than double the national rate of 6.3%”. Freeland's statement, by using the 90,000 created jobs as an umbrella term for all Canadians and not specifying the demographic that has gained employment, is misleading and damaging to young Canadians, suggesting deeper structural issues, such as potential barriers to employment such as lack of experience,and limited access to job networks.

The belief that a low national unemployment rate reflects shared prosperity obscures deep and generational inequality in the Canadian and global labour market. As mentioned, youth unemployment has not only remained persistently high, but is more than double that of the national rate at 14%. That being said, raw unemployment figures alone do not capture the full picture. Many young Canadians are not only unemployed, but also underemployed, working part-time by necessity, rather than by choice. In addition to this the Government of Canada reported that high school aged youth aged 15-19 saw the “highest year-over-year increase” in unemployment/underemployment from 15% in August 2025 to 19.6% in August 2024. In fact, recent graduates from post-secondary institutions are experiencing an unemployment rate of 11.2% in 2025, whereas in 2000 that number hovered at around 5%. This trend lends credence to the common refrain: “it’s harder to find a good job now than it was 20 years ago”.

Overall, the notion that low unemployment means “everyone is doing better” wrongly universalizes a recovery that privileges older, higher-income, and full-time workers while neglecting the precarity faced by youth, newcomers, and marginalized communities. Public messaging that leans on headline unemployment figures erases this disparity and discourages the kinds of targeted interventions youth need. 

To ensure Canada’s economic future is inclusive of young Canadians, policy makers must shift from vague claims of low unemployment to deliberate and genuine labour equity. This could be achieved through public and private sector youth hiring quotas. If introduced, these quotas would ensure that young Canadians gain early career opportunities that build valuable skills, whilst keeping their resumes competitive in an increasingly saturated market. An example of a successfully implemented youth hiring quota would be the 

• “1 jeune 1 solution” (1 young person, 1 solution) - France

• Youth Employment Service (YES) Initiative - South Africa

Additionally, provincial governments could offer employment incentives for youth hiring. For instance, tax credits or subsidies to businesses that hire and retain young Canadians in full-time positions. 

If policymakers continue to speak only in averages, they will design policies that serve no one in particular other than the statistics on a piece of paper. A just labour market begins with honest data, and ends with youth no longer being treated as an afterthought.

Written By: Jasper Sauerland, Policy Strategist - Engage