Toronto’s Student Job Market in 2025: Rising Unemployment and Economic Challenges

Current State of Student Unemployment

• In November 2024, Canada’s youth unemployment rate rose to 13.9%, marking the largest increase among major age groups.

• Ontario’s youth unemployment rate hit 16.8% in late 2024, peaking at 17.1% in January 2025 - well above the historical average.

• Toronto’s overall unemployment rate reached 8.1% in November 2024, the highest since January 2022.

Key Factors Behind Rising Student Unemployment

1. Economic Conditions

• Canada’s economy has stagnated, with no real wage growth since 2016.

• Rising costs and limited business expansion have led to fewer entry-level jobs.

2. Labor Force Growth vs. Job Creation

• Population growth and increased immigration have expanded the labor force by 2.4% in a year.

• However, employment growth has not kept pace, causing a decline in the employment rate.

3. Industry-Specific Challenges

• Retail and hospitality, key sectors for student employment, have experienced slow job growth.

• Toronto’s tech sector has faced layoffs, reducing internship and entry-level opportunities.

Government Response and Support Programs

• The Youth Employment and Skills Strategy (YESS) aims to provide job experience and skill development.

• The 2024 federal budget allocated $558.8 million to assist 130,000 youth in gaining work experience.

Future Outlook and Potential Solutions

• Strengthening economic recovery is key to increasing student job opportunities.

• More collaboration between schools and employers is needed to provide practical, job-ready skills.

• Government policies must continue addressing labour market mismatches to help young professionals transition into the workforce.

Despite ongoing challenges, students and young professionals in Toronto can navigate the job market by staying informed, building relevant skills, and leveraging available government resources.