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Career Edge Blog

Jan 29
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youth employment crisis

How Can You Turn Youth Employment Crisis Into Opportunity

By Employer

Four months. Fifty applications. Two interviews. No job.

This is the reality facing 21-year-old Lauren Hood, a recent political studies graduate living with her parents in Aurora, Ontario. Her story, reported by The Canadian Press in December 2025, isn’t unique. It’s emblematic of a generation watching the promise of education collide with the harsh realities of Canada’s worst youth employment crisis in decades.

Youth unemployment hit 14.7 per cent in September 2025, marking a 15-year high outside the pandemic years. For teenagers aged 15 to 19 in Ontario, the situation is even more stark. Nearly one in four, 22.2 per cent, cannot find work. These aren’t just statistics on government dashboards. They’re young people like Hood, qualified graduates taking sweeping jobs at garden centres with mechanical engineering degrees, or students staying in school longer simply because there’s nowhere else to go.

The human cost extends beyond immediate financial strain. Research from TouthREX suggests that prolonged youth unemployment leads to poor mental health outcomes, delayed financial independence, difficulty establishing career trajectories, weakened professional networks, and skills atrophy that can follow individuals for years. Young people experiencing these “scarring effects” often earn less throughout their working lives than peers who entered the workforce during stronger economic periods.

For employers, particularly those in Ontario’s GTA, this crisis presents both a challenge and an extraordinary opportunity. The challenge is obvious. If an entire generation struggles to gain initial work experience, where does your future talent pipeline come from? But the opportunity is equally clear. Organizations that invest in young talent during difficult periods build loyalty, access emerging skills, demonstrate social responsibility, and position themselves strategically for when labour markets inevitably tighten again.

The question isn’t whether employers can afford to hire new graduates. It’s whether they can afford not to.

Understanding the Depth of the Crisis

The current youth employment crisis didn’t emerge overnight. It’s the result of converging pressures that have been building since early 2023, accelerating through 2024 and into 2025.

Statistics Canada data show that youth unemployment (aged 15 to 24) reached 14.1 per cent in October 2025, well above the pre-pandemic average of 10.8 per cent recorded from 2017 to 2019. For context, adults aged 25 to 54 faced unemployment of just 6.9 per cent, only slightly higher than their pre-pandemic average. The disparity reveals that economic challenges are disproportionately affecting the youngest workers.

Even education, long considered the pathway to economic security, provides insufficient protection. Among young adults aged 20 to 29 with bachelor’s degrees or higher, unemployment reached 8.1 per cent in September 2025, up from 6.4 per cent in 2022 and 5.9 per cent in 2019. University graduates with fresh degrees are struggling alongside those with high school diplomas.

The Ontario picture is particularly troubling. Between 2019 and 2025, unemployment rates among teens climbed from 14.9 per cent to 22.2 per cent. Young adults aged 20 to 24 saw rates rise from 9.9 per cent to 13.2 per cent. Those aged 25 to 29 experienced increases from 6.2 per cent to 8.7 per cent. Urban centres including Toronto, Windsor, and London are experiencing youth unemployment rates exceeding 18 per cent in some cases.

The crisis doesn’t affect all young people equally. Youth with disabilities and racialized youth, especially Black, Indigenous, and newcomer populations, face systemic barriers in hiring, limited access to mentorship, and fewer industry connections.

What’s Driving the Crisis?

Multiple factors contribute to elevated youth employment crisis. The lingering effects of COVID-19 disrupted education and created skill gaps for many young people. A DEVLab survey conducted between November 2023 and May 2024 found that 72 per cent of youth aged 16 to 30 experienced gaps in education and career skills caused by the pandemic, with only one in five feeling they had fully recovered.

Job vacancy declines hit entry-level positions hardest. In the second quarter of 2024, job vacancies requiring less than one year of experience fell to 282,745, a significant 33.8 per cent decrease from 427,060 in the second quarter of 2023. Almost half of youth are typically employed in retail trade and accommodation and food services. Over the past year, youth employment declined significantly in retail trade by 8.3 per cent and in accommodation and food services by 8.0 per cent.

Preliminary evidence suggests that AI adoption is significantly changing the job market. A 2025 study conducted in the United States found experienced workers in AI-exposed occupations maintained or increased their employment levels, while those aged 22 to 25 experienced notable job losses. Entry-level tasks that once provided pathways for young workers are increasingly automated, reducing traditional on-ramps to career development.

Economic conditions broadly contribute. The inflation crisis beginning in mid-2021 triggered consumers to pull back spending. Businesses delayed hiring as economic confidence deteriorated. Interest rate increases affected sectors that traditionally employ young people. The uncertainty surrounding trade relationships, particularly with the United States, creates additional hesitation in hiring decisions.

The Long-Term Consequences of Inaction

When employers collectively reduce hiring of young workers during economic uncertainty, the impacts extend far beyond individuals struggling to find first jobs. The consequences reshape workforce dynamics, economic productivity, and social cohesion in ways that affect everyone.

From an employer perspective, reduced youth hiring depletes talent pipelines. Organizations build capability by bringing in early-career talent, developing them over time, and promoting from within. When this pipeline narrows or stops, future leadership gaps emerge. The institutional knowledge transfer from experienced workers to newer employees breaks down. Innovation suffers because diverse perspectives and fresh thinking that young workers bring are absent.

Economically, high youth unemployment reduces consumer spending power. Young people unable to earn delay major purchases including homes and vehicles. They accumulate student debt without income to service it. They postpone starting families. These delays ripple through housing markets, retail sectors, and service industries that depend on young consumer participation.

Socially, prolonged joblessness damages mental health and wellbeing. The Canadian Centre for Policy Alternatives documents that young people facing extended unemployment experience higher rates of depression, anxiety, and feelings of worthlessness.

For Canada specifically, demographics make this even more critical. Around 20 per cent of the current labour force is made up of individuals aged 55 and over, an age group nearing retirement. Youth are the largest source of new entrants to the labour market. If this generation struggles to gain footing during its prime entry years, the consequences for Canada’s economic competitiveness and productivity could last for decades, resulting in a large labour market shortage!

The Business Case for Hiring Young Talent

Smart employers recognize that periods of elevated youth unemployment create unique opportunities to access talent, build loyalty, and demonstrate leadership. The business rationale extends well beyond social responsibility, though that matters too.

Young workers bring fresh perspectives shaped by different life experiences than older generations. They’re digital natives comfortable with technology that some organizations still struggle to adopt. They question established processes in ways that can identify inefficiencies others have stopped noticing. They’re eager to learn, adaptable to change, and open to feedback in ways that decades of workplace experience sometimes diminishes.

In many cases, entry-level hiring is typically more cost-effective than recruiting experienced professionals. Salary expectations are lower. Benefits packages, while still important, don’t need to account for family coverage or retirement proximity in the same way. Training investments pay off over longer potential tenures because you’re capturing talent at career beginnings rather than mid-stream.

Organizations that hire during difficult periods build extraordinary loyalty. Young workers remember who gave them chances when opportunities were scarce. Jenny Poulos, Senior Vice President of P&CB HR and Global Recruitment at RBC, notes about working with paid internship programs: “Career Edge is a wonderful organization that impacts the lives of many, and families and organizations that see much benefit from this relationship.” The loyalty built through meaningful first opportunities translates into retention, commitment, and eventually leadership as these individuals progress.

From a practical standpoint, structured programs for new graduates allow organizations to assess talent in real working conditions before making permanent hiring commitments. Internships, co-op placements, and contract-to-hire arrangements provide extended trial periods where both employer and employee evaluate fit. This reduces hiring risk compared to permanent offers based solely on interviews and credentials.

Paid Internships: A Proven Model

Not all youth hiring strategies are equally effective. Paid internships represent a fundamentally different approach. They provide structured experiences where young workers receive fair compensation while gaining the skills, exposure, and confidence needed for career success. The model benefits both parties. Employers access motivated talent for specific projects or temporary coverage. Young workers earn income while building experience and professional networks. Organizations such as Career Edge have demonstrated the effectiveness of this model for three decades.

Practical Strategies for Employers

Organizations ready to increase youth hiring have multiple pathways depending on size, sector, and specific needs. The key is intentionality. Passive approaches where youth hiring happens only when convenient or easy won’t address the crisis or capture the opportunity.

Create Dedicated Entry-Level Positions

Review your organizational structure for roles where early-career talent could contribute meaningfully. This might include research and analysis positions, project coordination roles, junior positions in specialized departments, administrative support with learning opportunities, or technology and digital media functions where young workers often have native capabilities.

Design these positions with development in mind. What skills will someone gain? What mentorship will they receive? What does progression look like if they perform well? Entry-level positions shouldn’t be dead ends. They should be launching pads.

Partner with Organizations and Institutions

Organizations like Career Edge, as well as colleges and universities across the GTA, actively seek employer partners for co-op placements, internships, and work-integrated learning opportunities. These partnerships provide structured access to student talent with established frameworks for coordination.

Consider developing ongoing relationships with specific programs rather than ad hoc recruitment. When career advisors know your organization well, they can direct appropriate students to your opportunities and provide context that makes placements more successful.

Implement Structured Internship Programs

Formal internship programs provide frameworks for bringing in multiple young workers, creating cohorts that support each other while contributing to organizational goals. Structure includes defined timelines (typically 4 to 12 months), clear job descriptions and expectations, appropriate compensation based on role and market, assigned mentors or supervisors, and regular feedback and development conversations.

For organizations without internal HR capacity to design and manage internship programs, partnerships with organizations such as Career Edge provide turn-key solutions. We handle recruitment, screening, matching, and ongoing support, allowing employers to focus on meaningful work assignments and mentorship. For more information, check our employer hub.

Remove Unnecessary Barriers

Review job postings and requirements for positions that could accommodate new graduates. Are you requiring “3-5 years experience” for roles where motivated, capable recent graduates could succeed with proper support?

Consider competency-based hiring approaches that evaluate candidates on demonstrated abilities rather than strictly on credentials or years of experience. Work samples, skills assessments, and behavioral interviews often reveal capability better than resume screening alone.

Invest in Onboarding and Development

Young workers need support beyond job offers. Comprehensive onboarding that explains organizational culture, introduces key contacts, clarifies expectations, and provides resources for success makes an enormous difference. Assign mentors who can answer questions, provide guidance, and model professional behaviors. Create opportunities for skill development through training, stretch assignments, and exposure to different parts of the organization.

Measure and Communicate Impact

Track outcomes from youth hiring initiatives. How many young workers did you bring in? What roles did they fill? What contributions did they make? How many converted to permanent positions? What feedback did they provide about their experiences?

Share success stories internally and externally. Highlight young workers who made meaningful contributions. Feature their perspectives in communications. Use their experiences to demonstrate your commitment to developing next-generation talent.

Addressing Common Concerns

Employers hesitant about youth hiring often cite similar concerns. These are worth addressing directly because most have practical solutions.

“We don’t have time to train someone from scratch.” This concern confuses level of experience with potential contribution. With proper job design, supervision, and realistic expectations, new graduates can contribute meaningfully while developing. Moreover, training investments in early-career talent pay off over longer potential tenures than hiring experienced workers who may leave after short periods.

“We need someone who can hit the ground running.” Some positions genuinely require immediate expertise. But many roles claimed to need this actually need willingness to learn, attention to detail, and a strong work ethic, all qualities abundant in motivated recent graduates. Consider whether “hit the ground running” reflects actual job requirements or simply a preference for avoiding development responsibilities.

“Young workers will just leave after we train them.” Turnover concerns aren’t unique to young workers. Experienced professionals leave, too. Data consistently shows that employees who receive robust development and feel valued stay longer regardless of age. Organizations that create positive early-career experiences build loyalty that reduces turnover.

“We can’t afford to pay competitive wages right now.” If financial constraints are genuine, consider alternatives to full-time permanent hiring. Fixed-term contracts, project-based roles, or part-time positions provide pathways for young workers to gain experience while managing your costs. Government programs, including the Student Work Placement Program, provide wage subsidies for qualifying employers, reducing the net costs of hiring students and recent graduates.

“We don’t know how to find qualified candidates.” This is where partnerships with educational institutions, professional associations, and organizations such as Career Edge provide value. These intermediaries handle recruitment, screening, and matching, presenting you with qualified candidates suited to your specific needs. The lift on your end focuses on interviewing finalists and providing meaningful work experiences once hired.

The Opportunity for Leadership

Youth employment crisis won’t resolve itself through market forces alone. It requires deliberate action from employers willing to invest in the next generation, even when immediate pressures make it tempting to focus elsewhere.

Organizations that step up during this period will be remembered. The young workers you hire now, when opportunities are scarce, become the foundation of your future leadership team. They bring fresh energy, diverse perspectives, and digital fluency that established workforces need. They demonstrate to your current employees that your organization values development and takes social responsibility seriously.

A Call to Action

Canada’s youth employment crisis is real, urgent, and solvable. It won’t be solved by government programs alone, though those matter. It won’t be solved by young people simply trying harder, though their resilience is remarkable. It will be solved by employers who recognize that investing in young talent during difficult periods is both good business and the right thing to do.

The business case is clear. The practical pathways are available. The talent is waiting. The question is simple: will you step up?

Thirty years ago, organizations committed to youth employment created Career Edge to provide pathways for talented young Canadians. Those early programs helped launch careers that have contributed over $1 billion annually to Canada’s economy. Imagine what your organization can accomplish by embracing this same commitment today.

Be the employer who makes a difference. Be the organization young workers remember with gratitude. Be the leader who understands that building tomorrow’s workforce starts with hiring today’s graduates.

The opportunity is here. The time is now. Get in touch with Career Edge today!

Jan 09
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Not Sure What Job Title Fits You? Take Our Self-Assessment Quiz

By Jobseeker

Job hunting can be overwhelming, especially when you’re unsure what role truly fits your skills, interests, and strengths. You might know you’re good at organizing, helping people, analyzing information, or creating content, but translating that into the right job title isn’t always easy.

With so many titles that sound similar (and many that don’t clearly explain what the role involves), it’s common for you to feel stuck or apply broadly without confidence.

That’s where a Job Title Self-Assessment Quiz can make a real difference.

Now let’s get to the fun part…

Take a moment to read each statement and choose the one that feels most like you.

Create your own user feedback survey

Here’s a closer look at what each category involves and the types of roles to expect under each category.

1. Administration and Operations

If you enjoy keeping things organized, managing schedules, and supporting teams behind the scenes, Administration and Operations roles could be an excellent fit for you. These positions are essential to keeping workplaces running smoothly and efficiently.

People who thrive in this category are often detail-oriented, reliable, and comfortable juggling multiple tasks. They enjoy structure, processes, and being the go-to person who ensures nothing falls through the cracks.

Common roles in this category include:

  • Administrative Assistant – Supports daily office operations by managing calendars, preparing documents, and coordinating communication.

  • Operations Coordinator – Helps oversee workflows, schedules, and internal processes to ensure efficiency.

  • Office Administrator – Manages office systems, supplies, and administrative procedures to keep the workplace functioning effectively.

These roles are ideal if you prefer structured environments and want to build strong foundational experience across many business functions.

2. Customer Service & Client Support

Do you enjoy helping people, solving problems, and communicating clearly? Customer Service and Client Support roles are perfect for individuals who are empathetic, patient, and strong communicators.

These roles often serve as the first point of contact for customers or clients, making them critical to building trust and positive relationships. Success in this category comes from listening well, staying calm under pressure, and finding solutions efficiently.

Common roles in this category include:

  • Customer Service Representative – Assists customers by answering questions, resolving issues, and providing product or service information.

  • Client Support Specialist – Offers ongoing support to clients, often handling more complex inquiries or account-related needs.

If you gain satisfaction from helping others and enjoy fast-paced, people-focused work, this category may be a strong match for you.

3. Marketing & Communications

If you’re creative, enjoy storytelling, or like sharing ideas through writing, visuals, or social platforms, Marketing and Communications roles may be right up your alley. These roles focus on how organizations communicate with their audiences and build their brand.

People in this category often enjoy collaboration, creative problem-solving, and working on multiple projects at once. Strong communication skills and adaptability are key.

Common roles in this category include:

  • Marketing Coordinator – Supports marketing campaigns, events, and content planning across channels.

  • Communications Assistant – Helps draft internal and external communications, newsletters, and announcements.

  • Social Media Coordinator – Manages social media platforms, creates content, and engages with online audiences.

This category is ideal if you enjoy blending creativity with strategy and want to work in dynamic, evolving environments.

4. Data, IT & Finance

Do you enjoy working with numbers, systems, or technology? Prefer logic, analysis, and problem-solving over creative brainstorming? Data, IT, and Finance roles are well-suited for analytical thinkers who enjoy digging into details and improving systems.

These roles often require precision, technical skills, and a methodical approach to work. They’re critical to decision-making, security, and operational success within organizations.

Common roles in this category include:

  • Junior Data Analyst – Analyzes data to identify trends, support reporting, and inform business decisions.

  • IT Support Analyst – Provides technical support, troubleshoots issues, and helps maintain IT systems.

  • Loan Analyst – Reviews financial information, assesses risk, and supports lending decisions.

If you enjoy structured problem-solving and working behind the scenes to drive outcomes, this category may align well with your strengths.

5. HR, Talent & People Operations

If you are good with people, workplace culture, and organizational growth, HR, Talent, and People Operations roles offer meaningful opportunities to make an impact. These roles focus on hiring, supporting, and developing employees.

People who excel in this category are often approachable, organized, and good at balancing empathy with professionalism. They enjoy working with both people and processes.

Common roles in this category include:

  • HR Assistant – Supports HR administration, employee records, and onboarding processes.

  • Recruitment Coordinator – Helps manage hiring workflows, schedules interviews, and supports candidates.

  • HR Manager – Oversees HR strategy, employee relations, and people policies.

These roles are a great fit if you enjoy supporting others’ success and contributing to positive workplace experiences.

Why Take a Job Title Self-Assessment Quiz?

A self-assessment quiz helps you move from uncertainty to clarity. Instead of asking, “What job should I apply for?” you start asking, “What kind of work fits me best?” The quiz simplifies the job search by narrowing your focus to roles that align with how you naturally work.

Whether you’re a new graduate, career changer, or someone re-entering the workforce, understanding your best-fit job category can boost your confidence, improve the quality of your applications, and help you make more informed career decisions.

If you’re unsure where to start, take the Job Title Self-Assessment Quiz and discover roles that match your strengths, interests, and career goals.

The right job title might be closer than you think.

Jan 08
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Starter Kit for Candidates: How to Land Your Next Job

By Jobseeker

Finding a job in today’s competitive market can feel overwhelming, especially if you’re just starting your career or switching industries. But with the right approach, tools, and mindset, you can turn job hunting from a stressful process into a structured, achievable plan.

Think of this as your starter kit for finding a job: everything you need to prepare, strategize, and succeed.

1. Start with Self-Assessment

Before you even open a job board, take a moment to understand your skills, strengths, and career goals.

Ask yourself:

  • What tasks do I enjoy most?

  • What skills do I excel at?

  • Do I prefer working independently or in a team?

  • What industries or roles excite me?

Creating a list of your strengths and preferences will help you focus your job search on roles that are the best fit.

For example, if you thrive on organization and attention to detail, administrative or operations roles might suit you. If you enjoy problem-solving and data, entry-level data analyst or research roles could be ideal.

Tip: Consider making a short skills inventory or a “career snapshot” that highlights your top strengths. This will be useful when tailoring your resume, cover letter, and LinkedIn profile.

2. Research Job Titles and Positions

One of the most overlooked steps in job hunting is researching which roles match your skills and experience.

To get you started, we at Career Edge have created a  job title self assessment quiz to help you identify job titles that match your skills and experience.

Job titles can vary widely across companies and industries, and applying to the wrong title can waste time and reduce your chances of success.

Additionally, here’s how you can research the job titles in detail:

  1. Start Broad, Then Narrow: Search for general titles in your field, then identify specific roles. For example, if you’re interested in marketing, you might start with “Marketing Coordinator” or “Communications Assistant,” then narrow to “Social Media Coordinator” or “Content Marketing Specialist.”

  2. Analyze Job Descriptions: Read multiple listings for a single title and compare responsibilities, required skills, and qualifications. This will give you a sense of what employers actually want and whether your skills align.

  3. Consider Transferable Skills: Sometimes, a slightly different title requires skills you already have. For instance, a “Client Success Associate” may require customer service experience, similar to a “Customer Support Specialist.”

  4. Use LinkedIn and Job Boards: Tools like LinkedIn, Indeed, or Glassdoor allow you to explore related titles and see how other candidates with your skills have progressed.

Tip: Make a short list of job titles that fit your strengths and goals. This will focus your applications and help you tailor your materials effectively.

3. Perfect Your Resume and Cover Letter

Your resume is your first impression. It should clearly communicate your experience, skills, and accomplishments. Keep these tips in mind:

  • Tailor each resume: Highlight the skills and experiences most relevant to the job.

  • Use action verbs: Words like “organized,” “managed,” “developed,” or “analyzed” make your experience sound impactful.

  • Keep it concise: One page for early-career candidates, two pages if you have extensive experience.

  • Include keywords: Many companies use applicant tracking systems (ATS) that scan resumes for keywords from the job description.

Similarly, a cover letter allows you to tell your story and explain why you’re a perfect fit. Use it to:

  • Show enthusiasm for the company and role

  • Highlight key accomplishments or skills

  • Keep it concise—about 3–4 paragraphs

Tip: Save your resume and cover letter as PDFs to ensure formatting stays intact when sending electronically.

4. Build Your Online Presence

In today’s job market, your online presence matters. Many recruiters will check LinkedIn or Google your name before contacting you. Here’s how to strengthen your profile:

  • LinkedIn Profile: Complete all sections, use a professional photo, and include a compelling headline. Highlight relevant skills, internships, projects, or volunteer work.

  • Portfolio or Website: If applicable, create a simple portfolio site to showcase your work—especially useful for marketing, design, or writing roles.

  • Social Media Audit: Ensure your social profiles are professional and align with the image you want employers to see.

Tip: Engage on LinkedIn by sharing articles, commenting on posts, or connecting with industry professionals. Visibility can lead to opportunities.

5. Network Strategically

Networking isn’t just about attending events—it’s about building relationships that can help you access opportunities that aren’t always advertised.

  • Start with your contacts: Reach out to friends, family, classmates, or former colleagues. Let them know you’re job hunting.

  • Attend industry events or webinars: Even virtual events can help you meet professionals in your field.

  • Informational interviews: Ask professionals in roles you’re interested in for short conversations to learn about their career paths.

Tip: Always follow up after networking with a thank-you note or LinkedIn connection request. Building relationships takes time, but it pays off.

6. Prepare for Interviews

Once your applications start landing, you’ll need to interview confidently.

  • Research the company: Understand their mission, products/services, and recent news.

  • Practice common questions: E.g., “Tell me about yourself,” “What are your strengths?” or “Describe a challenge you faced and how you overcame it.”

  • Use STAR method: Structure answers for behavioral questions with Situation, Task, Action, Result.

  • Prepare your own questions: Ask about team culture, role expectations, or growth opportunities.

Tip: Mock interviews with friends or mentors can help reduce anxiety and improve your performance.

7. Stay Organized and Track Your Progress

Job hunting involves multiple applications, follow-ups, and interviews. Staying organized will help you keep track and prevent missed opportunities.

  • Use a spreadsheet or job search tool to track applications, deadlines, interviews, and contacts.

  • Set weekly goals for number of applications, networking conversations, and follow-ups.

  • Review and adjust your strategy regularly based on what’s working.

Tip: Celebrate small wins along the way, it keeps the motivation high.

Remember, the process takes time, but each step brings you closer to your ideal role. With diligence, confidence, and the right strategy, you’ll be well on your way to landing your next job.

Good Luck!

Dec 19
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Hiring Trends and Canadian Labour Shortages Employers Can’t Ignore

By Employer

The Canadian labour market closed 2025 with encouraging momentum. According to Statistics Canada’s November Labour Force Survey, employment rose by 54,000 jobs, marking the third consecutive monthly increase, while unemployment fell to 6.5 per cent. Yet beneath these numbers lies complexity. Canadian employers face an evolving landscape where skills gaps threaten growth, regulatory changes demand immediate attention, and traditional recruitment playbooks are being rewritten.

For organizations planning 2026 strategies, understanding what happened in 2025 isn’t just helpful, it’s essential. Research shows 58 per cent of Canadian companies plan to add new permanent positions, while another 36 per cent plan to fill vacated positions. This creates opportunities but intensifies competition for skilled professionals in a market where talent remains scarce.

The Greater Toronto Area exemplifies these tensions. Toronto’s 2025 Employment Survey recorded 1,623,720 jobs, a new record high with 1.5 per cent growth. Yet the region’s unemployment rate fluctuated significantly, revealing uneven recovery across sectors and demographics.

The Skills Shortage Reality

Recent reports show 69 per cent of employers globally struggle to find workers with the necessary skills, marking a 15-year high. In Canada, specific sectors face acute challenges that directly impact business growth and operational capacity.

The technology sector continues facing persistent talent shortages. Statistics Canada reported a 3.3 per cent unemployment rate for Canada’s tech industry as of May 2025. Organizations struggle with skills gaps in artificial intelligence, machine learning, data science, cybersecurity, and enterprise resource planning development.

Contract Talent: The Strategic Response

Faced with persistent labour shortages, Canadian employers increasingly turn to contract professionals as strategic solutions. More than half, 54 per cent, of technology managers plan to expand their use of contract talent. The benefits extend beyond filling immediate gaps.

Contract workers offer specialized expertise on a per-project basis, allowing organizations to scale their workforces quickly as needed. This approach mitigates the costs of hiring permanent employees in rapidly evolving technological landscapes. For organizations implementing major system upgrades or addressing cybersecurity vulnerabilities, contract professionals bring immediate capability without long-term overhead.

Many skilled professionals, particularly in technology and creative fields, deliberately choose project-based work for variety, autonomy, and often superior compensation. Organizations building strong relationships with contract talent pools gain a competitive advantage, accessing specialized skills without months-long recruitment processes.

Regional Variations Matter

Canada’s labour market isn’t monolithic. Provincial economic drivers, industry concentrations, and demographic patterns create distinct hiring environments demanding localized strategies.

Western Canada showed particular strength in 2025. Alberta recorded 29,000 new positions in November, while Manitoba added 4,500 jobs. These provinces benefit from resource sector activity and diversified economies.

Ontario experienced mixed results. Employment increased by 55,000 positions in October, the first increase since June. However, unemployment fluctuated throughout 2025, partly reflecting trade uncertainty and its disproportionate impact on manufacturing regions.

The Greater Toronto Area specifically experienced notable volatility. Toronto’s unemployment rate reached 8.9 per cent as of September, near the highest level since 2012 outside of the pandemic.

For employers, these regional variations have practical implications. Organizations with multi-location operations need differentiated recruitment strategies. Compensation packages must reflect local cost of living realities. Remote work policies can help employers access talent across regions, but employers must understand the differences in provincial employment law.

Wage Growth and Compensation Pressures

Real wages in Canada increased 1.9 per cent year-over-year in the first quarter of 2025. Toronto workers earn roughly 6 to 7 per cent above the Canadian average, reflecting high concentrations of skilled, high-productivity jobs in finance, technology, and professional services. Employers competing in these markets face significant salary pressure, particularly for specialized roles.

For employers planning 2026 budgets, compensation strategy requires careful calibration. Offering below-market rates in competitive fields extends vacancies and drives up recruitment costs. Yet unsustainable wage inflation creates long-term financial pressure. Leading organizations take sophisticated approaches, including total rewards packages emphasizing benefits, flexibility, and development opportunities alongside base salary.

The Pay Transparency Revolution

Starting January 1, 2026, publicly advertised job postings in Ontario must include compensation information. This represents one of the most significant changes to recruitment practices in decades.

Employers with 25 or more employees must include compensation information in publicly posted advertisements, disclosing either expected compensation or a range. For roles with annual compensation up to $200,000, disclosed ranges must not exceed $50,000. Additional provisions require employers to avoid mandating Canadian work experience requirements, inform interviewees of decisions within 45 days, and disclose if artificial intelligence screens applicants.

These changes extend beyond compliance. Organizations with well-developed compensation philosophies and equitable pay practices can use transparency as a competitive advantage, attracting candidates who value fairness. Employers waiting until the last minute risk rushed implementation and reputational damage.

Foundational work is essential before January 2026. Compensation structures need review to ensure internal equity before external disclosure. Job architecture frameworks should provide systematic methods for assessing the relative value of positions. Managers require training to handle inevitable questions when salary ranges become public.

Artificial Intelligence: Transformation Without Replacement

Three-quarters of large Canadian companies and 61 per cent of mid-sized companies view AI as essential for competitiveness, yet only 13 per cent and 5 per cent respectively prioritize hiring for AI skills. This gap reveals a critical insight: most organizations see AI as a tool to enhance existing capabilities rather than complete workforce transformation.

Eighty per cent of Canadian businesses agreed that keeping a human in the loop is essential when using AI, while 64 per cent agreed that cultivating trust is important. This human-centric perspective distinguishes Canadian implementation from more aggressive approaches in other markets.

Practical applications focus on specific operational improvements. Organizations use AI to streamline workflows, support decision-making, and handle high-volume, low-complexity tasks. In recruitment, AI assists with initial resume screening, scheduling, and candidate communication. Rather than replacing workers, AI reshapes what skills matter most. Analytical thinking, creativity, complex problem-solving, and interpersonal skills become more valuable as AI handles routine tasks.

For 2026 planning, this suggests a dual focus: implementing AI tools strategically while upskilling existing employees. Organizations taking this balanced approach position themselves to benefit from efficiency gains without the workforce disruption that aggressive automation creates.

Internal Mobility and Skills Development

Leading organizations increasingly look inward first rather than defaulting to external recruitment for every vacancy. Internal mobility supports succession planning and reduces the risk of skill shortages derailing critical projects. External recruitment costs money, takes time, and carries a risk of failure. Internal moves leverage existing organizational knowledge and signal to employees that development opportunities exist.

However, internal mobility requires infrastructure. Organizations need clear career pathways showing employees how they can progress. Learning and development programs must provide the training necessary to prepare employees for advancement. Around 60 per cent of job openings in 2025 require a university degree or college diploma, yet education alone isn’t sufficient. Employers increasingly value demonstrated ability to learn quickly and adapt.

Organizations that actively invest in employee development through training, certifications, and stretch assignments become more attractive to job seekers. In competitive markets, robust development programs can offset slightly lower base compensation while improving retention.

Hybrid Work: The New Baseline

Remote work debates have largely settled toward hybrid as the stable equilibrium. Despite higher response rates for remote work questions in 2025, shares of businesses reporting remote work remained consistent, with 14.3 per cent having remote work. For those with remote work, a quarter reported employees working on-site three days weekly on average, suggesting hybrid scheduling has become standardized.

Hybrid work requires intentional design around when teams gather, what work happens in which location, and how to maintain culture and connection. Many organizations moved from loose flexible guidelines to clear expectations on office attendance, specifying how many days, which roles require presence, and how exceptions work.

For employers planning 2026 strategies, the key is intentionality. What is your organization’s philosophy on work location? How does it connect to your culture, talent strategy, and business model? Clear answers, communicated transparently, help with both recruitment and retention.

Youth Unemployment Concerns

Employment growth in November concentrated among youth aged 15 to 24, with gains of 50,000, marking the first increases since the year’s start. This rebound followed a difficult period. Youth bore the brunt of the challenging Canadian labour market through most of 2025.

For employers, persistent youth unemployment presents both challenges and opportunities. The talent pipeline for future workforce needs depends on young people gaining initial career experience. Organizations continuing to hire and develop young talent during difficult periods build loyalty and access to emerging skills.

Strategic Imperatives for 2026

As Canadian employers finalize 2026 plans, several strategic imperatives emerge. Skills development must become central to talent strategy, not an afterthought. The gap between available talent and required capabilities won’t close through recruitment alone.

Compensation and total rewards strategies require sophistication. With pay transparency legislation taking effect in Ontario and likely spreading to other provinces, employers need robust frameworks for making fair, consistent, and defensible pay decisions.

Technology adoption, particularly AI, requires balanced approaches that enhance human capabilities rather than simply pursuing automation. This includes establishing clear ethics policies and governance frameworks building trust.

Flexible work arrangements are now baseline expectations. Organizations must design hybrid approaches intentionally, being clear about expectations while remaining flexible enough to accommodate diverse employee needs.

Workforce planning must extend beyond immediate needs. With significant retirements approaching in many sectors, organizations need succession plans identifying critical knowledge, developing backup capabilities, and creating transitions preserving institutional memory.

Finally, employer brand and employee experience are increasingly central to recruitment success. In competitive talent markets, capable candidates have choices. Organizations known for development opportunities, inclusive cultures, strong leadership, and employee support have significant advantages.

The Path Forward

Canadian employers enter 2026 facing both significant challenges and genuine opportunities. Labour shortages will persist in key sectors. Regulatory changes require attention. Economic uncertainty creates planning complications. Yet organizations responding strategically can build competitive advantages extending well beyond 2026.

The most successful employers will be those seeing talent as their most critical asset and investing accordingly. This means robust development programs growing capabilities internally. It means compensation strategies balancing fairness, competitiveness, and sustainability. It means leveraging technology to enhance work while maintaining human-centric approaches.

For employers committed to building strong teams and sustainable competitive advantages, the work begins now. Review compensation structures before transparency requirements take effect. Audit development programs to ensure they support internal mobility. Examine technology strategy to ensure AI enhances rather than displaces human capability. Strengthen employer brand to attract scarce talent.

The organizations thriving in 2026 won’t be those simply reacting to changes as they arrive. They’ll be those that anticipated shifts, prepared strategically, and built cultures where talented professionals want to build careers.

Nov 26
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What are some of the Strategies to Address the Labour Shortage?

By Employer

A skilled labor shortage is a significant challenge that can negatively impact industries on a global scale. The consequences can be far-reaching and detrimental to businesses of all sizes, and understanding these repercussions is essential for organizations and industry leaders. With a greater appreciation for the negative impacts, companies can proactively address a skills shortage before it becomes a more significant issue.

Unfilled positions can lead to decreased productivity, higher operational costs, and, ultimately, revenue loss. Employers can adopt various strategies to mitigate the impact of the labour shortage, such as:

1. Attractive Packages and Benefits

While increasing wages and offering bonuses can be a good strategy, however, not every employer can offer higher salaries, offering attractive benefits packages can be attractive to some candidates and also a great strategy to retain current employees.

According to the Peninsula survey, 55% of employers said their employees have asked for a raise in the past year because of the increase in the cost of living.

2. Flexible Work Arrangements

As workloads worsen and workers increasingly become discontent in their roles, hiring is being impacted since the demand for convenient, satisfying work is trending.

COVID showed many candidates that work can be done from home. It allows many people who weren’t able to work before in a traditional way due to disabilities or family commitments to find jobs and contribute to the community.

This means that remote and Flexible work options can attract a broader talent pool, including those who may not be able to work traditional hours or commute long distances.

While roughly 2% of global SMEs reported moving to a four-day workweek, with another 0.6% reporting it didn’t work for them. Half 50% of employers said all their employees are in the workplace full-time, while 15% noted they have flexible working hours, and 10% said they made hybrid working a permanent policy.

Remote work policies have allowed companies like Shopify and Twitter to hire talent from around the globe.

What are some of the obstacles? outdated policies and inflexible/old-fashioned management

3. Upskilling and Reskilling Current Employees

Can you develop your people to be the future workers you need? Investing in employee training can help bridge skill gaps and prepare the workforce for evolving job roles.

Companies like Amazon and AT&T have implemented robust upskilling initiatives, significantly improving employee capabilities and retention rates.

More than half 56 % said they’re offering financial remuneration to help retention, including 65 % of Canadian SMEs. Those unable to give financial incentives reported using reward and recognition to help retention a whopping 131 % year over year.

Nearly half 47 % of SMEs reported investing in upskilling and training existing staff, with apprenticeships seeing a 36 % increase globally. Canadian employers reported a massive 217 % increase in apprenticeships year over year.

By prioritizing their employees’ professional growth, businesses mitigate the effects of labour shortages, cultivate a skilled and motivated workforce, and fill gaps in the workplace.

Automation can handle repetitive tasks, allowing human workers to focus on more complex responsibilities.

While automation can enhance efficiency, it also requires careful implementation and consideration of its impact on the workforce.

4. Diversifying Talent

Leveraging immigration programs can bring skilled workers to Canada to fill critical gaps. Companies like Google and Microsoft have successfully tapped into international talent markets.

Seeking employees from commonly underemployed groups such as new Canadians, Indigenous, retired workers or veterans, people with different abilities, outsourced service providers, etc.

Some specialists also suggest to ease up the interview process and not to – to many unrequired qualifications. Some things can be learned on the job. According to the survey, 18% of employers mentioned that reducing qualification requirements helped them overcome the labour shortage.

What are some of the obstacles?

More diversity requires leaders who are better equipped with the skills, knowledge, training, and time to manage well and build diverse teams.

5. Explore new Partnering with organizations

Establishing partnerships with educational institutions can create pipelines of new graduates ready to enter the workforce.

Leveraging different employment processes, such as internships, Co-op programs, and job placements, has been successful in providing real-world experience to students while meeting employer needs.

Partnering with Career Edge organization to connect employers with a diverse talent pool, including recent graduates, internationally qualified professionals, and people with disabilities.

6. Automate & Adopt Technology

Automation and technology adoption play a critical role in helping employers navigate ongoing labour shortages. By integrating AI, digital tools, and automated systems, organizations can streamline operations and reduce their dependence on manual labour. Automation takes over repetitive administrative tasks—like scheduling, data entry, reporting, and routine customer inquiries—allowing employees to focus on strategic, high-value work that requires human judgment and creativity.

It also helps maintain operational continuity when staffing levels are low, as tools such as automated inventory systems, workflow management platforms, and digital productivity solutions keep processes running efficiently. Beyond reducing workload pressure, automation improves accuracy, minimizes human error, and reduces burnout by eliminating tasks that are physically or mentally exhausting.

Source: ManpowerGroup, LinkedIn

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