Canadian summer job postings have significantly dropped since last year — one of many signs that youth are currently grappling with the toughest labour market in decades.
Summer job advertisements on employment search engine Indeed were down 22 per cent in early May versus the same time a year ago, according to an analysis published last Thursday by Indeed economist Brendon Bernard.
Lower demand for camp counselors drove the decline in postings. But seasonal demand for other kinds of jobs, including painters, lifeguards and instructors, also dropped.
These findings build on recent economic data showing that younger Canadians are struggling more than others to secure employment as the economic outlook deteriorates and businesses freeze hiring amid U.S. President Donald Trump’s tariff war. At stake is the future financial success of a generation, as studies have shown employed youth tend to have better earnings outcomes as adults.
“While unemployment has trended up among both groups, the gap between youth and others has widened,” said Bernard.
In April, the unemployment rate for those aged between 15 to 24 years old was 14.1 per cent compared to 5.7 per cent for older adults, according to Statistics Canada. Two years earlier, those rates were 9.8 per cent, and 4.3 per cent, respectively.
Among recent post-secondary and university graduates, the unemployment rate averaged 11.2 per cent in the first three months of 2025 — the highest for this period (outside of the pandemic) in more than two decades, according to Bernard’s analysis.
“When the job market slows down, there’s this congestion that builds up,” explained Bernard.
“Kind of like a traffic jam, when people further on (in their careers) are finding it tougher to get ahead, then they might find work in a lower-paying job that they’re not particularly excited about, and that causes challenges for younger people,” he continued.
“To get out of that cycle, we really need the economy to turn around and to get things on the right track again.”
But, with Trump’s trade war remaining on the horizon most employers won’t be eager to hire anytime soon, economists say.
“The pause in Canada’s counter-tariffs, relaxed U.S. tariffs on auto parts imports, and new fiscal stimulus will soften the downturn from the trade war, but likely won’t prevent a recession,” said economists Tony Stillo and Michael Davenport in a report published by Oxford Economics last week.
Stillo and Davenport are expecting the Canadian economy to shed 120,000 jobs by the end of 2025, bringing the overall unemployment rate to 7.4 per cent from the current 6.9 per cent.
What’s more, contributing to high levels of youth unemployment is the fact that youth population soared beyond the number of jobs available in recent years, partly due to immigration.
“There’s little sign of a turnaround going into this summer,” Bernard wrote in his analysis. “While youth population growth has slowed, it was still up 3.7 per cent from a year ago.”
GTA-based employment services charity ACCES Employment has seen a steady demand from younger people struggling to find seasonal and part-time work.
Manjeet Dhiman, senior vice president of services and strategic initiatives at ACCES, says employers are still hiring for the summer, but at smaller volumes, and they aren’t having trouble filling roles anymore.
“In a competitive market, it becomes easier for employers to hire people who they know and who did a good job last year, which just makes it more difficult for the individuals who are still trying to break into the labour market,” she told the Star.
Teens and young adults rely on summer jobs not only for financial support, but to develop key practical and life skills that help professional growth.
According to a 2024 report by the Office of the Auditor General of Canada, youth who participated in the government’s Canada Summer Jobs program had better long-term earnings than those who did not participate.
Dhiman is concerned that the tough job market for youth is intensifying economic barriers facing marginalized groups.
“The people who end up struggling the most are often individuals who are already marginalized, maybe in terms their economic background, their race, or gender,” said Dhiman.
“All of these factors can make it even that much more difficult to find work in an economy that’s already very competitive.”
