Succession, innovation at stake as youth face tough job market

As students across Canada return to school, the federal government has announced a $26.1-million investment in six national projects under the Youth Employment and Skills Strategy (YESS) Program, aiming to usher more youth into the labour market through education and training opportunities.

It also announced incentive grants and wage subsidies for employers to hire youth with disabilities and other hiring programs.

Statistics Canada data released in July 2025 revealed that due to “challenging labour market conditions”, Canadian youth ages 15 to 24 had the lowest employment rate that month (56.3%) since November 1998 (excluding 2020 and 2021).

For Sunil Johal, professor of public policy and society at the University of Toronto, the funding represents a growing challenge for employers in Canada: as the workforce ages and the economy evolves, the ability to not only attract but also integrate young talent is becoming a critical business issue.

“We're going through a massive demographic shift in Canada right now. We’re going to have a lot of baby boomers retiring in the next several years,” he says.

“For most employers, there are real risks to not starting to plan for that exodus of the baby boomers from the workforce, in terms of not stocking up your organizational talent cupboard.”

For employers, the risks of not hiring youth go beyond immediate staffing needs, Johal explains; Canada’s demographic reality means...

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