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Time of India
6 days ago
- Business
- Time of India
Canada's job crisis? Student unemployment skyrockets to 14.2% — is a recession here already?
Is Rising Student Unemployment a Recession Warning Sign? Live Events How Is the Youth Job Market Overall in Canada? Is the US Trade War Making Things Worse? Who's Being Hit Hardest by the Tariffs? Is a Recession on the Horizon for Canada? Is There Any Optimism for Students? FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel For many Canadian students, this summer job hunt has been tougher than ever, with the unemployment rate for students looking for summer work soaring to 17.4%, the highest it's been in a non-pandemic year since the 2009 recession, a stark warning sign that some economists say could mean trouble ahead for the broader economy, as per a researcher at Toronto Metropolitan University, Viet Vu, said that, 'That's really concerning to me,' adding, 'Oftentimes, youth unemployment is a leading indicator to what could be a recession,' as quoted in the CP24 latest figures from Statistics Canada's Labour Force Survey reveal that 17.4% of full-time students aged 15 to 24, who planned to return to school this fall, were without a job this June, according to the report. That's a significant jump from 15.8% just a year earlier, as per the CP24 explained that, 'The reason why this is bad is when you look at how an economy is doing, you look at how many people are getting fired and how many people are getting hired -- and oftentimes, when companies squeeze their budget ... the first positions to go tend to be the most junior,' as quoted in the report. Vu added that, 'Which tells you that these companies aren't doing well because they can't afford to hire a summer student," as quoted by READ: Elon Musk's Grok is now working for the US government — here's what that means However, Statistics Canada's unemployment rate for the broader 'youth' category, which includes all 15- to 24-year-olds, not just students, stood at 14.2% in June, which has increased by 0.7 percentage points from last year and is well above the pre-pandemic average of 10.8% between 2017 and 2019, as reported by have pointed out that the US trade war has led to the growing student unemployment rate because many companies are choosing not to take on new hires due to the amount of uncertainty that comes with constantly changing US tariffs on Canadian exports to America, according to the director and economist at the Centre for Future Work, Jim Stanford, pointed out that, 'This has been a brutal summer for students to look for a job... the openings are just not there,' as quoted by CP24. He explained that, 'I think the blame for the high student unemployment rate rests solely at Donald Trump's doorstep,' adding that, 'In the last few months, companies have had no idea where the economy is going. The last thing they're going to want to do is take on a few extra heads for the summer," as quoted in the READ: 15 million Americans just got bad news - Judge reverses rule that would've wiped medical debt from credit reports While the border city of Windsor, in Ontario, recorded the highest unemployment rate among all demographics in June with 11.2%, which shows that the tariffs have had a major impact on Canadian industries, as reported by though Stanford isn't ready to say a recession is guaranteed to happen just yet, he has warned that, 'We've all been watching for signs that the toll of the Trump tariffs could push Canada into a recession — and if he goes ahead with the 35 per cent tariffs, we could have a recession. Not yet, though," as quoted in the report.A senior economist at job search site Indeed, Brendon Bernard, said there is a "silver lining: the year-over-year increase in the student unemployment rate has narrowed compared to previous years," as quoted by CP24 report. The rate rose from 11.9% in 2023 to 15.8% in 2024, but climbed more modestly this year to 17.4%, reported CP24. Bernard said, 'There's been some caution that employers have undertaken because the situation could go in multiple directions,' as quoted in the many companies are cutting costs, and entry-level or short-term roles, like student jobs, are usually the first to Economists say youth unemployment often signals broader economic downturns ahead, as per the report.
Economic Times
6 days ago
- Business
- Economic Times
Canada student job crisis explodes as unemployment hits highest level since 2009, triggering fears of looming recession
TIL Creatives Canada's student job market collapses as youth unemployment surges amid economic uncertainty and rising US trade tensions Canada's student unemployment rate has jumped to 17.4 percent, the highest it's been in a non-pandemic year since 2009, raising concerns among economists that it could signal a slowdown, or even a coming recession. The number, released in Statistics Canada's June Labour Force Survey, refers specifically to 'returning students,' full-time students aged 15 to 24 who intend to resume studies in the fall. It's a significant jump from 15.8 percent in June 2024, and even further above the 11.9 percent recorded in 2023. 'That's really concerning to me,' said Viet Vu, economic researcher at Toronto Metropolitan University. 'Youth unemployment is a leading indicator of what could be a recession.'The data reflects a labor market that, while posting headline job gains, 83,000 new positions in June, according to Statistics Canada, remains uneven beneath the surface. The national unemployment rate stands at 6.9 percent, unchanged from the previous month, and long-term joblessness remains a concern. The broader youth unemployment rate, which includes all 15- to 24-year-olds (not just students), was 14.2 percent in June. That's well above the pre-pandemic average of 10.8 percent (2017–2019), suggesting younger Canadians are disproportionately affected by current economic pressures. Students typically rely on summer jobs for income, experience, and savings to support their education. But this year, those positions are vanishing.'This has been a brutal summer for students to look for a job,' said Jim Stanford, director at the Centre for Future Work. 'The openings are just not there.' Economists cite multiple contributing factors: Trade uncertainty: Companies are wary of expanding payrolls amid economic instability, particularly as US tariffs on Canadian exports fluctuate. Many are choosing not to hire seasonal or junior workers this year. Companies are wary of expanding payrolls amid economic instability, particularly as US tariffs on Canadian exports fluctuate. Many are choosing not to hire seasonal or junior workers this year. Cost management: With economic forecasts showing slow growth and cautious consumer spending, firms are prioritizing cost-saving measures, starting with entry-level roles. 'When companies squeeze their budget, the first positions to go tend to be the most junior,' said Vu. 'Which tells you that these companies aren't doing well because they can't afford to hire a summer student.'The student job crisis is more acute in some regions. In Windsor, Ontario, overall unemployment was 11.2 percent, the highest in the country. Other areas, such as British Columbia and Atlantic Canada, also reported higher-than-average youth jobless rates. In response to the situation, the federal government has expanded the Canada Summer Jobs Program, adding 6,000 additional wage-subsidized jobs to the existing 70,000 placements. But experts say that may not be enough to address the depth of the issue. 'There's been some caution that employers have undertaken because the situation could go in multiple directions,' said Brendon Bernard, senior economist at analysts warn that if youth joblessness persists into the fall, it could start dragging down broader economic indicators, particularly consumer demand and future workforce development.
Time of India
6 days ago
- Business
- Time of India
Canada student job crisis explodes as unemployment hits highest level since 2009, triggering fears of looming recession
Canada's student unemployment rate has jumped to 17.4 percent, the highest it's been in a non-pandemic year since 2009, raising concerns among economists that it could signal a slowdown, or even a coming recession. The number, released in Statistics Canada 's June Labour Force Survey, refers specifically to 'returning students,' full-time students aged 15 to 24 who intend to resume studies in the fall. It's a significant jump from 15.8 percent in June 2024, and even further above the 11.9 percent recorded in 2023. 'That's really concerning to me,' said Viet Vu, economic researcher at Toronto Metropolitan University . 'Youth unemployment is a leading indicator of what could be a recession.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo The data reflects a labor market that, while posting headline job gains, 83,000 new positions in June, according to Statistics Canada, remains uneven beneath the surface. The national unemployment rate stands at 6.9 percent, unchanged from the previous month, and long-term joblessness remains a concern. Youth and students hit hardest Live Events The broader youth unemployment rate , which includes all 15- to 24-year-olds (not just students), was 14.2 percent in June. That's well above the pre-pandemic average of 10.8 percent (2017–2019), suggesting younger Canadians are disproportionately affected by current economic pressures. Students typically rely on summer jobs for income, experience, and savings to support their education. But this year, those positions are vanishing. 'This has been a brutal summer for students to look for a job,' said Jim Stanford, director at the Centre for Future Work. 'The openings are just not there.' What's causing the drop? Economists cite multiple contributing factors: Trade uncertainty: Companies are wary of expanding payrolls amid economic instability, particularly as US tariffs on Canadian exports fluctuate. Many are choosing not to hire seasonal or junior workers this year. Cost management: With economic forecasts showing slow growth and cautious consumer spending, firms are prioritizing cost-saving measures, starting with entry-level roles. 'When companies squeeze their budget, the first positions to go tend to be the most junior,' said Vu. 'Which tells you that these companies aren't doing well because they can't afford to hire a summer student.' Regional disparities The student job crisis is more acute in some regions. In Windsor, Ontario, overall unemployment was 11.2 percent, the highest in the country. Other areas, such as British Columbia and Atlantic Canada, also reported higher-than-average youth jobless rates. In response to the situation, the federal government has expanded the Canada Summer Jobs Program , adding 6,000 additional wage-subsidized jobs to the existing 70,000 placements. But experts say that may not be enough to address the depth of the issue. 'There's been some caution that employers have undertaken because the situation could go in multiple directions,' said Brendon Bernard, senior economist at Indeed. Some analysts warn that if youth joblessness persists into the fall, it could start dragging down broader economic indicators, particularly consumer demand and future workforce development.
CTV News
13-07-2025
- Business
- CTV News
Why student unemployment is rising and what it could signal about a looming recession
The unemployment rate for students looking for summer jobs is the highest it's been in a non-pandemic year since 2009, when Canada was going through a recession — and some economists worry that the latest numbers could signal another one is just around the corner. 'That's really concerning to me,' said Viet Vu, economic researcher at Toronto Metropolitan University. 'Oftentimes, youth unemployment is a leading indicator to what could be a recession.' Statistics Canada's latest Labour Force Survey showed June's data for 'returning students,' which it defines as full-time students in March who intend to return to school full time in the fall, was 17.4 per cent. That's up from 15.8 per cent in June of last year. The agency defines 'returning students' as those aged 15 to 24. While the first year of the pandemic saw a 33.1 per cent 'returning student' jobless rate, last month's figure marks the highest since June 2009, when the rate was also 17.4 per cent. 'The reason why this is bad is when you look at how an economy is doing, you look at how many people are getting fired and how many people are getting hired -- and oftentimes, when companies squeeze their budget ... the first positions to go tend to be the most junior,' added Vu. 'Which tells you that these companies aren't doing well because they can't afford to hire a summer student.' Meanwhile, Statistics Canada's unemployment rate for the broader 'youth' category — which includes all 15- to 24-year-olds, not just students — stood at 14.2 per cent in June. That's up 0.7 percentage points from last year, and well above the pre-pandemic average of 10.8 per cent between 2017 and 2019. 'This has been a brutal summer for students to look for a job... the openings are just not there,' said Jim Stanford, director and economists at the Centre for Future Work in a Zoom interview with CTV News Saturday. Trade war to blame, economists say Economists say the U.S. trade war is playing a significant role in the growing student unemployment rate. Many companies are choosing not to take on new hires because of the amount of uncertainty that comes with constantly changing U.S. tariffs on Canadian exports to America. 'I think the blame for the high student unemployment rate rests solely at Donald Trump's doorstep,' said Stanford. 'In the last few months, companies have had no idea where the economy is going. The last thing they're going to want to do is take on a few extra heads for the summer. The border city of Windsor, Ont., saw the highest unemployment rate among all demographics in June with 11.2 per cent, indicating the tariffs have had a major impact on Canadian industries. Stanford isn't ready to say a recession is guaranteed to happen just yet. 'We've all been watching for signs that the toll of the Trump tariffs could push Canada into a recession — and if he goes ahead with the 35 per cent tariffs, we could have a recession. Not yet, though," he said. Brendon Bernard, senior economist at job search site Indeed, said there is a silver lining: the year-over-year increase in the student unemployment rate has narrowed compared to previous years. The rate jumped from 11.9 per cent in 2023 to 15.8 per cent in 2024, but climbed more modestly this year to 17.4 per cent. 'There's been some caution that employers have undertaken because the situation could go in multiple directions,' Bernard said.
