For many Canadian students, this summer job hunt has been tougher than ever, with the unemployment rate for students looking for summer work soaring to 17.4%, the highest it’s been in a non-pandemic year since the 2009 recession, a stark warning sign that some economists say could mean trouble ahead for the broader economy, as per a report.
The latest figures from Statistics Canada's Labour Force Survey reveal that 17.4% of full-time students aged 15 to 24, who planned to return to school this fall, were without a job this June, according to the report. That’s a significant jump from 15.8% just a year earlier, as per the CP24 report.
Vu explained that, “The reason why this is bad is when you look at how an economy is doing, you look at how many people are getting fired and how many people are getting hired -- and oftentimes, when companies squeeze their budget ... the first positions to go tend to be the most junior,” as quoted in the report. Vu added that, “Which tells you that these companies aren’t doing well because they can’t afford to hire a summer student," as quoted by CP24.
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The director and economist at the Centre for Future Work, Jim Stanford, pointed out that, “This has been a brutal summer for students to look for a job... the openings are just not there,” as quoted by CP24. He explained that, “I think the blame for the high student unemployment rate rests solely at Donald Trump’s doorstep,” adding that, “In the last few months, companies have had no idea where the economy is going. The last thing they’re going to want to do is take on a few extra heads for the summer," as quoted in the report.
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Because many companies are cutting costs, and entry-level or short-term roles, like student jobs, are usually the first to go.
Is this a sign of a recession coming?
Possibly. Economists say youth unemployment often signals broader economic downturns ahead, as per the report.
Is Rising Student Unemployment a Recession Warning Sign?
Economic researcher at Toronto Metropolitan University, Viet Vu, said that, “That’s really concerning to me,” adding, “Oftentimes, youth unemployment is a leading indicator to what could be a recession,” as quoted in the CP24 report.The latest figures from Statistics Canada's Labour Force Survey reveal that 17.4% of full-time students aged 15 to 24, who planned to return to school this fall, were without a job this June, according to the report. That’s a significant jump from 15.8% just a year earlier, as per the CP24 report.
Vu explained that, “The reason why this is bad is when you look at how an economy is doing, you look at how many people are getting fired and how many people are getting hired -- and oftentimes, when companies squeeze their budget ... the first positions to go tend to be the most junior,” as quoted in the report. Vu added that, “Which tells you that these companies aren’t doing well because they can’t afford to hire a summer student," as quoted by CP24.
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How Is the Youth Job Market Overall in Canada?
However, Statistics Canada’s unemployment rate for the broader “youth” category, which includes all 15- to 24-year-olds, not just students, stood at 14.2% in June, which has increased by 0.7 percentage points from last year and is well above the pre-pandemic average of 10.8% between 2017 and 2019, as reported by CP24.Is the US Trade War Making Things Worse?
Economists have pointed out that the US trade war has led to the growing student unemployment rate because many companies are choosing not to take on new hires due to the amount of uncertainty that comes with constantly changing US tariffs on Canadian exports to America, according to the report.The director and economist at the Centre for Future Work, Jim Stanford, pointed out that, “This has been a brutal summer for students to look for a job... the openings are just not there,” as quoted by CP24. He explained that, “I think the blame for the high student unemployment rate rests solely at Donald Trump’s doorstep,” adding that, “In the last few months, companies have had no idea where the economy is going. The last thing they’re going to want to do is take on a few extra heads for the summer," as quoted in the report.
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Who’s Being Hit Hardest by the Tariffs?
While the border city of Windsor, in Ontario, recorded the highest unemployment rate among all demographics in June with 11.2%, which shows that the tariffs have had a major impact on Canadian industries, as reported by CP24.Is a Recession on the Horizon for Canada?
Even though Stanford isn’t ready to say a recession is guaranteed to happen just yet, he has warned that, “We’ve all been watching for signs that the toll of the Trump tariffs could push Canada into a recession — and if he goes ahead with the 35 per cent tariffs, we could have a recession. Not yet, though," as quoted in the report.Is There Any Optimism for Students?
A senior economist at job search site Indeed, Brendon Bernard, said there is a "silver lining: the year-over-year increase in the student unemployment rate has narrowed compared to previous years," as quoted by CP24 report. The rate rose from 11.9% in 2023 to 15.8% in 2024, but climbed more modestly this year to 17.4%, reported CP24. Bernard said, “There’s been some caution that employers have undertaken because the situation could go in multiple directions,” as quoted in the report.FAQs
Why are student jobs disappearing this summer?Because many companies are cutting costs, and entry-level or short-term roles, like student jobs, are usually the first to go.
Is this a sign of a recession coming?
Possibly. Economists say youth unemployment often signals broader economic downturns ahead, as per the report.
