Canadian unemployment rates soar to their highest levels since 2017
Student unemployment rates reach 12-year high as high interest rates pressure employers to cut costs.
On September 6, Statistics Canada’s August Labour Force Survey revealed that Canada’s unemployment rate rose 0.2 per cent to 6.6 per cent last month—the highest rate since May 2017, excluding the pandemic years in 2020 and 2021.
The report noted that while the labour market gained 22,000 net jobs, the increase was only true for part-time work, which increased by 66,000, while full-time positions saw a decline of 44,000.
According to the report, although unemployment rates have risen across all age groups, youth experienced the greatest increase, with youth rates rising in August to 14.5 per cent, up 3.8 and 2.6 percentage points for young men and women aged 15 to 24, respectively. In comparison, core-aged workers aged 25 to 54 saw an increase of only 0.9 percentage points.
These rates revealed that August was the fourth consecutive month of minimal overall employment change.
Statistics Canada also highlighted telling data on summer student employment in 2024. The unemployment rate for students this summer was the highest since 2012, excluding the summer of 2020. Students aged 15 to 24 who attended school full-time in March and planned on returning to school in the fall faced an unemployment rate of 16.7 per cent, a considerable increase from last year’s rate of 12.9 per cent.
Unemployment rates were particularly higher among the three largest racialized groups. Black students experienced the highest rate at 29.5 per cent, while Chinese and South Asian students faced rates of 22.4 per cent and 21.5 per cent respectively. The rates increased significantly for all three groups in comparison to the same period in 2023, with growth ranging from 5.1 to 10.1 percentage points.
One contributor to increased unemployment is higher interest rates, which have prompted employers to hire fewer staff as a method to cut costs, resulting in increased competition.
For those seeking assistance with career development, the UTM Career Center offers multiple resources and programs for students at the University of Toronto Mississauga. From resume critiques to the Job Shadow Program, which consists of shadowing a professional, there are numerous ways in which the UTM Career Center can help its community.
