The state of youth employment in Canada
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Every year on August 12, International Youth Day highlights youth issues internationally and recognizes the potential of youth as active partners in today’s global society.
Youth is a crucial phase of life when young people begin to realize their aspirations, achieve economic independence, and find their place in society. Succeeding at finding work is crucial not only to their independence and financial security, but their ability to build networks that will support their long-term economic, social and professional success.
Youth engagement is also vital for Canada’s overall economic growth and social cohesion: research demonstrates that young people who struggle to find decent work when they enter the labour market are likely to face adverse outcomes over time. Unemployment during youth and early adulthood leads to lower earnings, a higher probability of future unemployment, and lower health and job satisfaction (O'Higgins, 2010).
Even during the best of times, such after the 2007–2008 global financial crisis and before the COVID-19 pandemic, young people—those aged 15 to 24 years—faced substantial challenges in the labour market. According to Statistics Canada (2024a), in 2024, youth employment reached its lowest level since February 2012, barring the first two years of the COVID-19 pandemic. There has been almost no employment growth among people in this age group since December 2022.
In this article, we focus on labour market outcomes for young people, particularly in Canada, exploring several of the systemic challenges and barriers that some Canadian youth face.
Youths face unique challenges finding work
The characteristics of the young Canadian labour force vary across demographics.
As shown in Table 1 (Statistics Canada 2024b), young women are slightly more engaged in the labour market, with a participation rate of 67.8% compared to 65.6% for young men. Additionally, young women are less likely to be unemployed, with an unemployment rate of 13.5%, almost one percentage point lower than the 14.4% unemployment rate for young men.
Table 1: Labour force status for Canadian youth (aged 15 to 24 years) by sex, May 2024
| Employment rate | Participation rate | Unemployment rate | |
| Young women | 58.3% | 67.8% | 13.5% |
| Young men | 56.1% | 65.6% | 14.4% |
Source: Statistics Canada Table 14-10-0017-01
As of May 2024, 49% of employed youth held part-time positions (Statistics Canada 2024b). Young women were more likely to work part-time, with 55% of employed women aged 15 to 24 years in part-time jobs compared to 43% of their male counterparts (see Table 2).
Table 2: Employment type for Canadian youth (aged 15 to 24 years) by sex, May 2024
| Full-time employment | Part-time employment | |
| Young women | 45% | 55% |
| Young men | 57% | 43% |
Source: Statistics Canada Table 14-10-0017-01
As of May 2024, the youth unemployment rate was 14%, more than double the national rate of 6.3% (see Table 3) (Statistics Canada 2024b). This stark contrast between the youth and national unemployment rates underscores a significant challenge.
The persistently high unemployment among youth highlights structural issues within the labour market that disproportionately affect younger individuals. Despite actively seeking employment, many young people struggle to find jobs, suggesting potential barriers such as a lack of experience, limited access to job networks, and possible mismatches between available jobs and young workers’ skills (Mascherini et al., 2012).
Table 3: Labour force status by age group, May 2024
| Employment rate | Participation rate | Unemployment rate | |
| Youth (aged 15 to 24 years) | 57.2% | 66.5% | 14% |
| 15 years and over | 61.9% | 66.1% | 6.3% |
Source: Statistics Canada Table 14-10-0017-01
Youth labour force shrinks as many focus on education
While some youth begin working at an earlier age, most transition from school to the workforce in their early to mid-20s.
Many youths in Canada are still in school: 63% reported that they were full-time students in May 2024 (Statistics Canada, 2024d). This reduces the potential size of the youth labour force because some youth choose not to work (or not to work full-time) while focusing on education.
Youth participation in the labour market also fluctuates over the year because more students are available for and interested in work during the summer months. Many post-secondary students begin their summer break in May, increasing the youth participation rate. In May 2024, that rate was five percentage points higher than it was the month before, rising to 66.5% in May from 61.1% in April.
Because many youth are balancing education and other commitments, a higher proportion opt for part-time work compared to other age groups. While 19% of all workers held part-time positions in May, 52% of employed youth did so (see Table 4).
Table 4: Employment type by age group, May 2024
| Full-time employment | Part-time employment | |
| 15 to 24 years | 48% | 52% |
| 15 years and over | 81% | 19% |
Source: Statistics Canada Table 14-10-0017-01
Black youth face disproportionate challenges
Black youth are a diverse population in terms of ethnic and cultural origins, place of birth, religion and language. While Canadian youth have faced significant challenges in the labour market, Black youth—who make up 6.3% of the population aged 15 to 24 years—have historically fared worse than their white counterparts, accounting for only 5% of employed youth.
A Statistics Canada study using integrated data from the 2006 and 2016 censuses found significant disparities in labour market outcomes for Black Canadian youth compared to their peers. For example, these youth face lower employment earnings rates and higher unemployment rates. For example, among those aged 13 to 17 years in 2006, the unemployment rate in 2016—when they were aged 23 to 27—was notably higher for young Black individuals compared to their peers.
This gap was particularly stark for young Black men, whose unemployment rate (19%) was nearly double that of other young men (11%). Moreover, young Black men were almost twice as likely as other young men not to be not in employment, education, or training (NEET) in 2016.
Research by Basra (2021), based on the 2016 census, highlighted additional disparities among Black youth. The employment rate for Black youth was 39.6%, significantly lower than the Canadian average of 51.8% and one of the lowest among all racialized groups. Similarly, the unemployment rate for Black youth stood at 24.3%, well above the Canadian average of 15.5%, and the highest among all racialized groups. Furthermore, the median annual income for Black youth was $7,517, lower than the Canadian average of $9,938, and the second-lowest among all visible minority groups.
As shown in Table 5, in May 2024, the unemployment rate for Black youth reached 24.4%, more than double the rate for non-racialized youth. While the unemployment rate for Black youth was closer to that of non–visible minority youth in recent years—12.8% for Black youth compared to 10% for non-racialized youth in May 2023—the gap has widened since then. By March 2024, the unemployment rate for Black youth once again exceeded 20%.
Table 5: Labour statistics for youth (aged 15 to 24 years) by race for May 2024, three-month moving averages
| Employment rate | Participation rate | Unemployment rate | |
| Black | 43.7% | 57.7% | 24.4% |
| Not a visible minority | 58.0% | 65.8% | 11.9% |
Source: Statistics Canada’s table: 14-10-0373-01
Systemic biases are deeply entrenched in the labour market
Our recent research, along with a substantial body of Canadian literature, demonstrates that systemic racism remains a deeply entrenched issue in Canadian society, particularly within the labour market. Black people continue to face racial discrimination in hiring practices, career advancement opportunities, and equitable treatment in the workplace (see Basra, 2021; Oreopoulos, 2011; DasGupta et al., 2020; and Zaami & Madibbo, 2021).
For instance, the 2014 General Social Survey revealed that Black Canadians were more than twice as likely as their non-Black counterparts to report experiencing discrimination or unfair treatment in the previous five years (28% compared to 13%). Specifically, 13% of Black Canadians reported discrimination at work or during the hiring process compared to 6% of non-Black Canadians. Canadian studies using fictional resumes have found that racialized candidates with equivalent qualifications and experience are significantly less likely to be called for an interview.
Due to systemic bias, despite having comparable qualifications to others, Black candidates have more trouble securing positions for which they are qualified. For example (DasGupta et al., 2020):
- Black individuals are 30% less likely to be reach the candidate pool through personal networks
- “White-sounding” resumes receive approximately three times the number of call-backs as “Black-sounding” resumes
- 65% of employers reject qualified Black job seekers due to racism
Research shows that racialized Canadians, but Black people in particular, including youth, are overrepresented in service industries—with precarious, temporary, low-paying jobs—and underrepresented in well-paid managerial positions (see Cotter, 2022; Beckford, 2023; Houle, 2020; Campbell, 2021).
Moreover, research indicates that the barriers faced by Black students in high school—such as unsafe educational environments, discrimination, negative racial stereotyping, racially biased curricula, low expectations from teachers, and alienating settings—significantly hinder their ability to secure meaningful employment (Banting & Thompson, 2021; Wilson, 2018). These obstacles affect academic success and amplify the challenges that Black students face in the workforce.
Research from Ontario, particularly seminal studies on the province’s education system, alongside statistics from the Toronto District School Board and qualitative data collected from individuals across the Greater Toronto Area, confirms that Black students face systemic issues. These findings suggest they often encounter mistrust and low expectations from teachers in high school, leading to disproportionately high rates of suspension and expulsion and to being streamed into applied programs instead of academic programs. The former are not designed to prepare students for university.
Data indicates that Black youth frequently report feeling discriminated against by teachers and discouraged from enrolling in advanced courses. These practices contribute to higher dropout rates, lower post-secondary enrolment, and overrepresentation in precarious work as Black youth enter the job market (McPherson, 2022; James et al., 2017).
The way forward
While acknowledging the significant impact of discrimination on the labour market experiences of Black youth in Canada, it is also crucial to recognize that access to labour market information (LMI)—which supports decisions about jobs, careers and education—can significantly influence labour market outcomes.
To begin to understand the barriers and challenges that Black youth face in accessing relevant LMI, we are launching a comprehensive study focused on this critical issue. This upcoming report will explore how Black youth obtain information about LMI, the quality and reliability of the information they receive, and the impact of this information on their education and career decisions.
By examining the sources of LMI, such as schools, community organizations and online platforms, we aim to identify any gaps or biases that may exist. Additionally, we will collect qualitative data from Black youth to understand their personal experiences and perceptions of the support and guidance they receive.
Laura Adkins-Hackett
Economist
Laura Adkins-Hackett contributes to the analysis and development of labour market information in Canada. Laura is passionate about understanding why the economy works the way it does and how to best use labour and other resources to improve the lives of Canadians.
Suzanne Spiteri
Research Lead
Dr. Suzanne Spiteri is a sociologist with several years of experience in both qualitative and mixed-methods data analysis. She leads labour-related projects that explore labour market tightness and the labour market outcomes of under-represented groups.
References
Banting, K., & Thompson, D. (2021). The puzzling persistence of racial inequality in Canada. Canadian Journal of Political Science/Revue canadienne de science politique, 54(4), 870-891.
Basra, A. (2021). Bridging the gap: Addressing the labour market barriers of black youth in Canada. [Master's thesis, Simon Fraser University]. Simon Fraser University Library. https://theses.lib.sfu.ca/file/thesis/6322
Beckford, M. A. (2023). “A Raisin in a Box”: The experiences of racialized Black males in leadership roles in the non-profit sector in Toronto, Canada (Doctoral dissertation). Andrews University. https://digitalcommons.andrews.edu/cgi/viewcontent.cgi?article=3077&context=dissertations
Campbell, C. (2021). Educational equity in Canada: The case of Ontario’s strategies and actions to advance excellence and equity for students. School Leadership & Management, 41(4-5), 409-428. https://www.tandfonline.com/doi/full/10.1080/13632434.2019.1709165?scroll=top&needAccess=true
Cotter, A. (2022). Experiences of discrimination among the Black and Indigenous populations in Canada, 2019. Juristat: Canadian Centre for Justice Statistics, 1-14. https://www150.statcan.gc.ca/n1/pub/85-002-x/2022001/article/00002-eng.htm
DasGupta, N., Shandal, V., Shadd, D., & Segal, A. (2020). The pervasive reality of anti-Black racism in Canada. BCG Insights, 1-15. https://www.bcg.com/publications/2020/reality-of-anti-black-racism-in-canada
Houle, R. (2020). Changes in the socioeconomic situation of Canada's Black population, 2001 to 2016. Statistics Canada. https://www150.statcan.gc.ca/n1/pub/89-657-x/89-657-x2020001-eng.htm
James, C. E., Turner, T., George, R. C., & Tecle, S. (2017). Towards race equity in education: The schooling of Black students in the Greater Toronto Area. York University. https://edu.yorku.ca/files/2017/04/Towards-Race-Equity-in-Education-April-2017.pdf
Mascherini, M., Salvatore, L., Meierkord, A., & Jungblut, J. M. (2012). NEETs — Young people not in employment, education or training: Characteristics, costs and policy responses in Europe. Publications Office of the European Union, Luxembourg. doi:10.2806/41578
McPherson, K. (2022). “The teacher said nothing”: Black girls on the prevalence of anti-Black racism in Greater Toronto Area (GTA) schools. Journal of the American Association for the Advancement of Curriculum Studies (JAAACS), 15(1). https://ojs.library.ubc.ca/index.php/jaaacs/article/view/194206
O'Higgins, N. (2010). The impact of the economic and financial crisis on youth employment: Measures for labour market recovery in the European Union, Canada and the United States (No. 994621293402676). International Labour Organization. https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.ilo.org/media/350246/download&ved=2ahUKEwjnw-md8bqHAxVwODQIHWIbD2MQFnoECBYQAQ&usg=AOvVaw22jDZWC8Vsv7ZpWqfxVTy4
Oreopoulos, P. (2011). Why do skilled immigrants struggle in the labor market? A field experiment with thirteen thousand resumes. American Economic Journal: Economic Policy, 3 (4), 148-171. https://doi.org/10.1257/pol.3.4.148
Statistics Canada. (2024a, May 28). A snapshot of employment among youth in Canada. https://www.statcan.gc.ca/o1/en/plus/6351-snapshot-employment-among-youth-canada
Statistics Canada. (2024b, July 5). Table 14-10-0017-01 Labour force characteristics by sex and detailed age group, monthly, unadjusted for seasonality (x1,000). https://doi.org/10.25318/1410001701-eng
Statistics Canada. (2024c, July 5). Table 14-10-0373-01 Labour force characteristics by visible minority group, three-month moving averages, monthly, unadjusted for seasonality. https://doi.org/10.25318/1410037301-eng
Statistics Canada. (2024d, July 5). Table 14-10-0286-02 Labour force characteristics by type of student during summer months, monthly, unadjusted for seasonality.
Wilson, A. B. (2018). Black students: Stereotypes and Educational Opportunities (Doctoral dissertation). California State University, East Bay. https://scholarworks.calstate.edu/concern/theses/2514nm401
Zaami, M., & Madibbo, A. (2021). “You don't sound black”: African immigrant youth experiences of discrimination in the labor market in Calgary. International Journal of Intercultural Relations, 83, 128-138. https://doi.org/10.1016/j.ijintrel.2021.06.003