The labour market is the bleakest it’s been in decades for young Canadians, according to The Globe and Mail. This difficult beginning could jeopardize financial futures of young Canadians, as the common advice to start saving and investing early—relying on compound growth over time—is far more challenging to follow without a steady income.
What do the numbers say?
The figures paint a bleak and grim picture, what can be seen as a worrying sign for Carney. The average rate of joblessness for recent graduates stood at 11.2 per cent and this, according to an analysis of Statistics Canada data by Brendon Bernard, a senior economist at job-search platform Indeed Canada, marks the highest unemployment rate for this group at the start of a year in at least two decades. The young Canadians in this group include those who have completed their university or other post-secondary education and are not currently studying in school.
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Many economists and young job seekers were hopeful that the labour market would have recovered by now, a year ago, keeping in mind that the interest rate cuts would offer some relief. But given the economic challenges such as the trade war between US and Canada, have only worsened the situation and have continued to hamper young people trying to enter the workforce, according to Mr. Bernard.
Graduating during an economic downturn can have lasting effects, he said, often delaying early career progress and income growth. “If the recovery is swift, people can regain momentum,” he noted. “But right now, it’s unclear how long these conditions will persist.”Time spent out of the workforce is also critical to long-term financial stability. “It affects how much they can save,” said Desmond Nwaerondu, a certified financial planner with Sun Life in Calgary. “They may have to contribute more later in life to meet the same retirement goals they would have reached by starting now.”Even short delays in saving can make a big difference. For example, investing $200 a month starting at age 30 with a 4% annual return would grow to $180,642 by age 65. But starting 10 years earlier, at age 20, would result in $296,842—over $100,000 more.
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How can Canadians boost their job profile?
While landing an entry-level role is difficult, there are ways to boost a résumé. Chris Raper, a portfolio manager at Aspira Wealth (Raymond James Ltd.), advises young job seekers to take whatever work they can get—even if it’s outside their field of interest.
“Where you start doesn’t matter. This is a long-term game,” he said. Roles like camp counselling or hospitality help build soft skills that employers value. He also recommends learning high-demand skills, such as those related to AI, through free online resources like YouTube.
Networking is another key strategy. Connecting with professionals on LinkedIn and attending industry events can open doors. “You need to get in front of the people working in the industry you want to join,” Mr. Raper advised.
He also warned against accumulating debt while unemployed, especially high-interest credit card debt. Once employed, it’s important to start saving right away. Mr. Nwaerondu recommends the “pay yourself first” approach—automatically directing a portion of each paycheck into savings or investments before spending.
Still, the job hunt can be emotionally exhausting. Ms. Lashley shared that repeated rejections have worn her down. “I keep thinking, ‘Why not me?’” she said. But Mr. Raper urges perseverance: “Every rejection brings you one step closer to the right opportunity.”
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Canada economy in trouble
Canada, known for its economic strength and natural resources, is facing a tough period under the leadership of new Prime Minister Mark Carney. The slow job growth has raised concerns about economic stagnation, with US tariffs on Canadian exports such as steel, aluminum, and automobiles being a significant factor. The weak job numbers and a growing labor force indicate mounting challenges for Canada’s economic stability amid escalating trade tensions.
Statistics Canada reports that around 1.6 million Canadians are currently unemployed, reflecting significant strain in the labor market. The net addition of 7,400 jobs in April stands in stark contrast to the loss of 32,600 jobs in March, highlighting the economy’s uneven recovery. The unemployment rate increased from 6.7% to 6.9%, surpassing analysts’ expectations of 6.8%.
