Canada student job crisis explodes as unemployment hits highest level since 2009, triggering fears of looming recession
unemployment
rate has jumped to 17.4 percent, the highest it's been in a non-pandemic year since 2009, raising concerns among economists that it could signal a slowdown, or even a coming recession.
The number, released in
Statistics Canada
's June Labour Force Survey, refers specifically to 'returning students,' full-time students aged 15 to 24 who intend to resume studies in the fall. It's a significant jump from 15.8 percent in June 2024, and even further above the 11.9 percent recorded in 2023.
'That's really concerning to me,' said Viet Vu, economic researcher at
Toronto Metropolitan University
. 'Youth unemployment is a leading indicator of what could be a recession.'
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Join new Free to Play WWII MMO War Thunder
War Thunder
Play Now
Undo
The data reflects a labor market that, while posting headline job gains, 83,000 new positions in June, according to Statistics Canada, remains uneven beneath the surface. The national unemployment rate stands at 6.9 percent, unchanged from the previous month, and long-term joblessness remains a concern.
Youth and students hit hardest
Live Events
The broader
youth unemployment rate
, which includes all 15- to 24-year-olds (not just students), was 14.2 percent in June. That's well above the pre-pandemic average of 10.8 percent (2017–2019), suggesting younger Canadians are disproportionately affected by current economic pressures.
Students typically rely on summer jobs for income, experience, and savings to support their education. But this year, those positions are vanishing.
'This has been a brutal summer for students to look for a job,' said Jim Stanford, director at the Centre for Future Work. 'The openings are just not there.'
What's causing the drop?
Economists cite multiple contributing factors:
Trade uncertainty:
Companies are wary of expanding payrolls amid economic instability, particularly as US tariffs on Canadian exports fluctuate. Many are choosing not to hire seasonal or junior workers this year.
Cost management:
With economic forecasts showing slow growth and cautious consumer spending, firms are prioritizing cost-saving measures, starting with entry-level roles.
'When companies squeeze their budget, the first positions to go tend to be the most junior,' said Vu. 'Which tells you that these companies aren't doing well because they can't afford to hire a summer student.'
Regional disparities
The student job crisis is more acute in some regions. In Windsor, Ontario, overall unemployment was 11.2 percent, the highest in the country. Other areas, such as British Columbia and Atlantic Canada, also reported higher-than-average youth jobless rates.
In response to the situation, the federal government has expanded the
Canada Summer Jobs Program
, adding 6,000 additional wage-subsidized jobs to the existing 70,000 placements. But experts say that may not be enough to address the depth of the issue.
'There's been some caution that employers have undertaken because the situation could go in multiple directions,' said Brendon Bernard, senior economist at Indeed.
Some analysts warn that if youth joblessness persists into the fall, it could start dragging down broader economic indicators, particularly consumer demand and future workforce development.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
2 hours ago
- Economic Times
Air Canada suspends profit forecast as striking union defies back-to-work order
Synopsis Air Canada suspended its profit forecasts as flight attendants defied a government order to return to work, demanding better wages and compensation for ground work. The union's strike, deemed unlawful, has caused travel disruptions and confusion among passengers. The government faces limited options, including court intervention or new legislation, to resolve the labor dispute. AP Striking Air Canada employees Air Canada suspended its third-quarter and annual profit forecasts on Monday as its planes remained grounded after striking flight attendants refused a government-backed order to return to work and called on the airline to get back to the bargaining table. The carrier, which normally carries 130,000 people daily and is part of the global Star Alliance of airlines, had planned to start ramping up operations on Sunday evening, after a labor relations board ordered the union to return to work and start binding arbitration. The Canadian Union of Public Employees said no, setting the stage for a standoff with the Canadian government. The union, which represents 10,000 Air Canada cabin crew, had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. The attendants are striking for better wages and to be paid for work on the ground such as boarding passengers. They are now only paid when planes are moving, sparking some vocal support from Canadians on social media. In a written order, Canada's Industrial Relations Board on Monday declared the strike unlawful following union's refusal to return to work. The union said it would continue its strike and invited Air Canada back to the table to "negotiate a fair deal". The airline said it would delay plans to restart operations from Sunday until Monday evening and described the union as illegally defying the labor board. The government's options to end the strike now include asking courts to enforce the order to return to work and seeking an expedited hearing. The minority government could also try to pass legislation that would need the support of political rivals and approval in both houses of parliament, which are on break until September 15. "The government will be very reticent to be too heavy-handed because in Canada the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector workers that may be deemed essential," said Dionne Pohler, professor of dispute resolution at Cornell University's Industrial and Labor Relations School. Another option is to encourage bargaining, Pohler said. The government did not respond to requests for comment. On Saturday, Prime Minister Mark Carney's Liberal government moved to end the strike by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionized flight attendants opposed. The previous government, under former Prime Minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy, but it is highly unusual for a union to defy a CIRB order. The CUPE said its rejection was unprecedented when such an order was made according to rules, known as Section 107, that the government invoked in this case. Travelers at Toronto Pearson International Airport over the weekend said they were confused and frustrated about when they would be able to fly. Italian Francesca Tondini, 50, sitting at the Toronto airport, said she supported the union even though she had no idea when she would be able to return home. "They are right," she said with a smile, pointing at the striking attendants. The dispute between cabin crews and Air Canada hinges on the way airlines compensate flight attendants. Most, including Air Canada, have paid them only when planes are in motion. In their latest contract negotiations, flight attendants in both Canada and the U.S. have sought compensation for hours worked, including for tasks such as boarding passengers. New labor agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding. American's flight attendants are now also compensated for some hours between flights. United Airlines' cabin crews, who voted down a tentative contract deal last month, also want a similar provision.
Time of India
2 hours ago
- Time of India
Indian job market: Unemployment eases to 5.2% in July; rural areas drive improvement
India's unemployment rate eased to 5.2% in July, from 5.6% in June, according to the government's latest labour force survey, released on Monday. The Periodic Labour Force Survey (PLFS), conducted by the Ministry of Statistics and Programme Implementation (MoSPI), showed that the unemployment rate in May had also stood at 5.6%. Data collected under the current weekly status (CWS) framework revealed that joblessness for persons of all ages was at 5.2% in July. The pace of unemployment among men was slightly higher at 5.3% compared to 5.1% for women, PTI reported. In urban areas, the unemployment rate inched up to 7.2% in July from 7.1% in June. In contrast, rural areas saw an improvement, with the rate falling to 4.4% from 4.9% in the previous month. Among young people aged 15 to 29, joblessness declined to 14.9% in July from 15.3% in June. However, in urban areas, unemployment in this group rose marginally to 19% from 18.8% a month earlier. Rural areas recorded a sharper drop, with the figure down to 13% from 13.8%. CWS refers to the activity status of individuals based on a reference period of the seven days prior to the survey date. The survey also highlighted an improvement in labour market participation. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Earn Upto 5k Daily By This Method of Intraday Trading TradeWise Learn More Undo The Labour Force Participation Rate (LFPR) for all age groups rose to 41.4% in July from 41% in June. In rural areas, LFPR increased to 42% from 41.5%, while in urban areas it edged up to 40.1% from 39.8%. The Worker Population Ratio (WPR), which measures the proportion of employed people among the total population, also showed gains. In rural areas, WPR among persons aged 15 years and above rose to 54.4% in July from 53.3% in June. For the same age group in urban areas, WPR stood at 47% in July. The overall national WPR improved to 52% from 51.2%. To ensure more frequent and detailed labour market indicators, the sampling methodology of PLFS has been revamped since January 2025. At an all-India level, 7,519 first-stage sampling units were surveyed in July, according to PTI. In total, 89,505 households were covered: 49,355 in rural areas and 40,150 in urban areas. The number of persons surveyed was 3,79,222, comprising 2,16,832 from rural areas and 1,62,390 from urban areas. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
Time of India
2 hours ago
- Time of India
Air Canada strike by flight attendants can be solved. Analysts spell ways to end airline crisis
Air Canada strike crisis is worsening day by day and in a latest move the airline on Monday withdrew its third quarter and full-year earnings guidance due to a disruption in operations after its flight attendants went on strike. The carrier, which normally carries 130,000 people daily and is part of the global Star Alliance of airlines, had planned to start ramping up operations on Sunday evening, after a labor relations board ordered the union to return to work and start binding arbitration. The union said no, setting up an almost unprecedented standoff with the Canadian government, which had requested the back-to-work order. The Canadian Union of Public Employees, which represents 10,000 Air Canada cabin crew, had pushed for a negotiated solution, saying binding arbitration would take pressure off the airline. Now experts have claimed that a solution can be reached. Air Canada Strike by Flight Attendants Air Canada flight attendants are striking for better wages and to be paid for work on the ground, such as boarding passengers. They currently are only paid when planes are moving, sparking some vocal support from Canadians on social media. CUPE invited Air Canada back to the table to "negotiate a fair deal," calling the order to end its strike unconstitutional. The airline said it would delay plans to restart operations from Sunday until Monday evening and described the union as illegally defying the labor board. Air Canada Strike Solution Canada government's options to end the strike now include asking courts to enforce the order to return to work and seeking an expedited hearing. The minority government could also try to pass legislation that would need the support of political rivals and approval in both houses of parliament, which are on break until September 15. Live Events "The government will be very reticent to be too heavy-handed because in Canada the Supreme Court has ruled that governments have to be very careful when they take away the right to strike, even for public sector workers that may be deemed essential," said Dionne Pohler, professor of dispute resolution at Cornell University's Industrial and Labor Relations School. Another option is to encourage bargaining, Pohler said. Canada Government On Saturday, Prime Minister Mark Carney's Liberal government moved to end the strike by asking the Canada Industrial Relations Board to order binding arbitration. The CIRB issued the order, which Air Canada had sought, and unionized flight attendants opposed. The previous government, under former Prime Minister Justin Trudeau, intervened last year to head off rail and dock strikes that threatened to cripple the economy, but it is highly unusual for a union to defy a CIRB order. The CUPE said its rejection was unprecedented when such an order was made according to rules, known as Section 107, that the government invoked in this case. The dispute between cabin crews and Air Canada hinges on the way airlines compensate flight attendants. Most, including Air Canada, have traditionally paid them only when planes are in motion. In their latest contract negotiations, flight attendants in both Canada and the United States have sought compensation for hours worked, including for tasks such as boarding passengers. New labor agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding. American's flight attendants are now also compensated for some hours between flights. United Airlines' cabin crews, who voted down a tentative contract deal last month, also want a similar provision. FAQs Q1. What Air Canada can learn from airlines in USA? A1. New labor agreements at American Airlines and Alaska Airlines legally require carriers to start the clock for paying flight attendants when passengers are boarding. American's flight attendants are now also compensated for some hours between flights. United Airlines' cabin crews, who voted down a tentative contract deal last month, also want a similar provision. Q2. Who is Prime Minister of Canada? A2. Prime Minister of Canada is Mark Carney.
