According to Statistics Canada’s June Labour Force Survey, the unemployment rate among returning students aged 15 to 24 has spiked to 17.4%, marking the highest non-pandemic youth unemployment level since 2009.
This figure refers specifically to students planning to resume full-time studies this fall and represents a sharp jump from 15.8% in June 2024, and an even more significant increase from 11.9% in June 2023.
“Youth unemployment is a leading indicator of what could be a recession,”
— Viet Vu, Economic Researcher, Toronto Metropolitan University
Behind the Numbers: What’s Driving the Spike?
Despite Canada adding 83,000 jobs in June, the labour market remains uneven beneath the surface, with young workers feeling the brunt of the slowdown. The national unemployment rate sits at 6.9%, unchanged from May, but long-term joblessness and lack of entry-level opportunities paint a more complicated picture.
“This has been a brutal summer for students to look for a job,”
— Jim Stanford, Centre for Future Work
Key Factors Contributing to the Student Job Crisis:
- Trade Instability: With U.S. tariff threats looming, many businesses are cautious about hiring seasonal or junior workers.
- Cost Control: Companies are bracing for slower growth and choosing to limit non-essential hiring.
- Recession Signals: Firms are beginning to act defensively, anticipating a potential economic downturn.
Why It Matters to Borrowers and Investors
At Lendworth, we understand how macroeconomic shifts like this ripple into the mortgage and housing markets:
- Parents and families may feel increased financial pressure as students are unable to contribute to tuition or living expenses.
- Young adults entering the housing market face delays, with fewer savings and reduced access to traditional credit.
- Investors should remain vigilant, as youth employment is often an early signal of slowing consumer confidence and broader market contraction.
📊 Our Perspective
Periods of economic uncertainty require strategic planning. Whether you're:
- A borrower looking to refinance or access equity for education support,
- An investor seeking consistent returns in a shifting economy,
- Or a parent trying to bridge the gap for your child’s future,
Lendworth offers flexible, equity-based mortgage solutions designed for today’s environment.
📞 Contact us today to discuss how we can help you weather economic volatility with confidence.