For young Canadians, the toughest job market in decades is threatening their financial futures

Globe and Mail

14-05-2025

At 19, Emmersen Lashley is already worried about how she'll ever afford a home.
The Queen's University political science student hasn't been able to land a summer job. Last summer, she sent out more than 50 applications, expanding her search beyond her field to grocery stores and movie theatres. She didn't get a single offer. This year has been no better: 40 applications and counting, with nothing lined up.
'I need to start saving, but I can't start because I can't find a job,' said Ms. Lashley, who's from Burlington, Ont., and preparing to enter her third year of university. She worries that not having work experience now will make it harder to get a job after graduation, creating a domino effect that could push major life milestones, such as home ownership, further out of reach.
For young Canadians, the labour market is the bleakest it's been in decades. This rocky start threatens to upend their financial futures, as the well-known advice – start saving and investing early, and then let compound growth work its magic – is much harder to follow without income.
Chelsea Organ, 22, recently finished her studies at Western University. She spent previous summers working in restaurants and saving money, but this year, despite applying to more than 40 jobs, she only heard back from one – and that business shut down only a couple of months after she started.
Now, back home in Fergus, Ont., she's still looking for work. 'It's just been a really negative experience,' Ms. Organ said. 'I just wasn't able to save any money at all this year.' Her experience isn't unique. 'Most of my friends who either didn't have a job from high school or don't have a friend or family member to get them into the job, then they're kind of out of luck.'
The numbers reflect just how grim the outlook is. In the first quarter of 2025, the average unemployment rate for recent graduates – those under 25 who've completed university or other postsecondary education and aren't currently enrolled in school – was 11.2 per cent, according to an analysis of Statistics Canada data by Brendon Bernard, senior economist at job-search site Indeed Canada. That's the highest jobless rate to start the year for this group in at least 20 years, excluding the pandemic.
At this point last year, some economists and young job seekers had hoped the labour market would have bounced back by now, especially with interest rate cuts offering a glimmer of relief. But continued economic headwinds, including the ongoing Canada-U.S. trade tensions, have made it even harder for young people to break in, Mr. Bernard said.
Graduating into a weak economy can have long-term consequences, Mr. Bernard added, slowing early career momentum and income growth. 'When things turn around quickly, people can get back on track,' he said. But it's uncertain how long this weaker labour market will last.
'Time out of the work force is going to be crucial in terms of how much they can save,' said Desmond Nwaerondu, a Calgary-based certified financial planner at Sun Life. 'Or they'll have to save more in their later years once they start working in order to reach the same retirement goals had they started now.'
Even a few years of delay can have a significant impact. For example, if you invest $200 a month starting at the age of 30 at a 4-per-cent annual return, your RRSP savings at 65 would be $180,642. But if you start 10 years earlier, at age 20, you could end up with $296,842 – a difference of more than $100,000.
While it's hard to land an entry-level job, there are still ways to strengthen a resume. Chris Raper, a portfolio manager at Aspira Wealth of Raymond James Ltd., encourages young job seekers to take any opportunity they can find – even if it's outside their field of interest.
'It doesn't matter where you start. This is a long-term game,' he said, noting that soft skills developed through roles like camp counselling or hospitality can still carry weight. He also suggests learning in-demand skills, such as those related to AI, by using free courses or videos on platforms like YouTube.
Building industry connections through networking is also a way to get a leg up, which can be done by reaching out to relevant people on LinkedIn and attending in-person industry events. 'You have to get face to face with people in the industry you want to join,' Mr. Raper said.
He cautioned against taking on debt while unemployed, especially if it's with high interest, such as credit card debt.
Once you do land a job, it's important to build a savings habit early. Mr. Nwaerondu recommends using the 'pay yourself first' method: automatically setting aside a portion of each paycheque for savings or investing before spending the rest.
Still, the search can be draining. Ms. Lashley said the constant rejection has taken a toll. 'I keep thinking, 'why not me?'' she said. But Mr. Raper encourages young Canadians not to give up. 'Every rejection is just one step closer to the perfect job.'