Canada's high youth unemployment rate contradicts Prime Minister Mark Carney's recent claim about the economy's "resilience" in the government's spring economic update. While unemployment is a concern across all age groups, Statistics Canada's latest labour force survey reveals that the youth unemployment rate of 13.8% in March was more than double the national average of 6.7%.
Fraser Institute Study Highlights Crisis
A study by the Fraser Institute, released Thursday by former Statistics Canada chief economic analyst Philip Cross, reports that last year 437,000 young people aged 15 to 24 looked for work but could not find any. This represents a staggering 57% increase from 290,000 in 2022. Over the last three years, youth unemployment rose from 10% in 2022 to 13.8% in 2025, marking the largest three-year increase on record when the economy was not in a recession.
"Canada's youth unemployment is a crisis and will have serious consequences in later years when youths today who are unable to secure work try to find steady employment as adults," Cross warned, describing the recent increases as "extraordinary."
Rising Concerns Among Young Canadians
The dismal state of youth unemployment is also reflected in a survey by the Angus Reid Institute released this week. It found rising concerns over jobs and unemployment among those aged 18 to 24, with 38% in that demographic choosing it as a top issue—more than double the 18% who said this at the beginning of 2025.
Policy Factors Behind the Crisis
Cross noted that the previous Justin Trudeau government's high immigration policies dramatically increased the supply of young workers without the necessary economic growth to absorb them, contributing to the current crisis. Another factor, he said, was the simultaneous hikes to the minimum wage in many provinces.
While increasing minimum wages is popular among politicians because it shifts the burden to the private sector, its practical impact in a struggling economy reduces demand for young workers due to increased costs for businesses. "The extraordinary surge in youth unemployment in Canada is a homegrown problem, and policymakers in Ottawa and in provincial legislatures should review the policies that are making it worse," Cross said.
