Young Canadians Face Historically Long Job Search Durations, C.D. Howe Institute Report Finds
A new report from the C.D. Howe Institute shows that unemployed Canadians aged 20 to 24 are experiencing job search durations not seen since the early 1980s for men and at least 1976 for women, driven by a weakened hiring market, U.S. tariff uncertainty, and the lingering effects of remote work.
Young Canadians aged 20 to 24 are enduring historically long periods of unemployment, with job search durations reaching levels comparable to the early 1980s, according to a new report by economists Parisa Mahboubi and Tammy Schirle from the C.D. Howe Institute.
Among unemployed men in this age group, the share who have been out of work for six months or more has spiked to 27 per cent, marking the highest level since 1983. For unemployed women aged 20 to 24, 28 per cent have been looking for work for at least half a year, the highest share recorded since at least 1976.
The difficulties extend across educational backgrounds. Unemployed young adults with university degrees have been no better off this year regarding job hunt duration than those with a high school education or less. Meanwhile, unemployed workers holding college diplomas or trades certificates are faring slightly better, but more of them are engaged in lengthy job searches than at any time since the mid-1990s.
Several factors are contributing to these prolonged searches. The report points to a weakened "low-hire, low-fire" job market, ongoing uncertainty around U.S. tariffs, and the lingering effects of remote work on junior hiring as key challenges facing young job seekers in Canada. However, the authors note there is little evidence so far that artificial intelligence is displacing young workers in the country.
These conditions risk trapping young adults in a cycle where they cannot gain the experience employers demand due to weak hiring and fewer entry-level opportunities.