Beyond the Numbers: Young Canadians are Struggling to Launch Their Careers

November 10, 2026 – Young adults are taking longer to find work, with nearly one in three unemployed university graduates aged 20 to 24 searching for a job for six months or longer, according to a C.D. Howe Institute report. Prolonged job searches risk depressing long-term career earnings and point to a need for more targeted employment support.

In “A Foot in the Door: The Ever-Changing Challenges of Youth Unemployment in Canada,” authors Tammy Schirle and Parisa Mahboubi find that headline unemployment figures mask a changing labour market, as a growing share of unemployed 20-to-24-year-olds are new entrants or re-entrants trying to establish their careers. They recommend stronger job-search assistance, more work-integrated learning opportunities, and regular evaluation of employment programs to improve outcomes for young workers.

“Budget 2026 includes measures aimed at improving opportunities for young Canadians, including new youth placement and apprenticeship supports set to launch in 2027, alongside continued funding for programs such as Canada Summer Jobs, the Youth Employment and Skills Strategy, and the Student Work Placement Program,” says Schirle, professor of economics at Wilfrid Laurier University and a research fellow at the C.D. Howe Institute. “These investments are welcome, but the question remains whether they will be enough to help young Canadians.”

The report finds that headline unemployment rates mask important changes in how young Canadians experience joblessness. While unemployment among 15-to-19-year-olds has remained persistently high since the 1980s, the rate for 20-to-24-year-olds has declined from peaks of approximately 18 percent to 9.9 percent in September 2026, suggesting a relatively resilient labour market for young adults overall.

Unemployment duration tells a more concerning story: in early 2026, 30 percent of unemployed university graduates aged 20 to 24 had been searching for work for six months or longer. The share of unemployed university graduates and young women experiencing job searches of this length reached its highest levels since comparable records began in 1976. Falling job-finding rates, fewer young workers leaving existing jobs and slowing real wage growth all point to weaker labour demand as an important contributor to these prolonged searches.

The consequences can extend well beyond the initial job search. Young adults entering the workforce during periods of weak labour demand can experience depressed earnings for several subsequent years, reducing the long-term returns on their education and skills. Meanwhile, longer periods of unemployment can delay financial independence and household formation, shifting more of the burden onto families as young adults remain at home longer. Schirle and Mahboubi recommend strengthening job-search support for new entrants, expanding access to meaningful work experience through internships, co-op placements, and apprenticeships, and regularly evaluating employment programs to ensure they deliver lasting benefits.

“Higher education still improves young people’s employment prospects, but it no longer provides the same advantage in shortening job searches,” says Mahboubi. “Helping young Canadians transition from education into employment requires more than encouraging them to acquire additional credentials. They need opportunities to develop practical experience, demonstrate their capabilities, and connect with employers.”

Read the Full Report

For more information, contact: Tammy Schirle, Professor, Wilfrid Laurier University; Parisa Mahboubi, Associate Director of Research, C.D. Howe Institute; Raquel Schneider, Communications Officer, C.D. Howe Institute, 647-805 3918, rschneider@cdhowe.org.

The C.D. Howe Institute is an independent not-for-profit research institute whose mission is to raise living standards by fostering economically sound public policies. Widely considered to be Canada’s most influential think tank, the Institute is a trusted source of essential policy intelligence, distinguished by research that is nonpartisan, evidence-based and subject to definitive expert review.

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