Proactive solutions are needed to secure our future economic stability
Transitioning students from education to the workforce is one of Canada’s most pressing economic priorities. Currently, however, Canadian youth are missing out on the vital early career experience that would enable them to enter in-demand and emerging roles. In 2025, the unemployment rate for those under the age of 29 reached as high as 14.2%, its highest point in over a decade outside of the COVID-19 pandemic. 1
This downturn is not a passing phenomenon with only momentary impact. Failing to act will lead to a snowball effect in which the current crisis becomes future economic stagnation. Young Canadians currently struggling in the job market will struggle to afford housing, start businesses, and save for retirement—all due to the reduced earnings and delayed career progression triggered by this historic spike in youth unemployment.
Canada can’t “wait out” this crisis. Policy makers, sector councils, and educational institutions need to work together to close this gap by ensuring students have the support they need to transition from education to employment.
Doubling down on models that already work
According to a 2025 report from Burning Glass, students with at least one internship or placement prior to graduation are 48.5% less likely to be underemployed.2 Creating meaningful entry-level opportunities for students, especially in green energy, health care, and digital services should therefore be a top priority.
Work-integrated learning (WIL) programs such as the Government of Canada’s Student Work Placement Program (SWPP), in which students combine their formal studies with real-world work experience in related industries, offers students access to valuable work experience, opportunities to grow their networks, and greater confidence when entering the workforce.
Aligning training strategies to the labour market
More robust labour market information tools will help policymakers, sector councils, and educators build a collective understanding of where vacancies and new opportunities are emerging and how skills are evolving. This information will better position Canada to address gaps in policies and programs.
Targeting mentorship opportunities to marginalized groups
Racialized youth, Indigenous communities, and those with disabilities are more likely to experience unemployment and underemployment. Targeted mentorship and transition programs will guard against these communities being left behind.
The youth employment crisis is a reflection of a misalignment between the needs of the labour market, education, and skill and training policy. That misalignment will not solve itself. As Magnet has seen in our experience delivering SWPP, programs and their supporting infrastructure need to be designed with intention and with the participation of all relevant stakeholders.
With SWPP—funded by the Government of Canada and delivered by 18 sectoral partners across Canada—now having connected more than 250,000 Canadian post-secondary students to paid work experiences, and with many of those students transitioning into long-term employment, we are confident in the ability of Canada’s leaders in workforce development to work together and solve complex challenges.
There is still more work to be done, but Canada has the tools and knowledge to secure a prosperous and inclusive future for the next generation.
The Student Work Placement Program is currently accepting applications. Employers can access up to $7,000 in funding support when they hire an eligible student. Visit swpprogram.ca to learn more.
Magnet has supported 40,000+ placements as a SWPP delivery partner. According to a recent survey of SWPP employers and students:
- 95% of the students were satisfied with their work placement experience
- 97% of employers expressed satisfaction with the student’s performance
- 79% stated they would consider hiring the student for future employment
Benefits to students and employers:
- SWPP students are expected to earn $11,000 more per year than students in other WIL programs
- Each student hire creates $401 in additional value each month for their employer
1 – Statistics Canada. (2025). Labour Force Survey. https://www150.statcan.gc.ca
2 – Leiden, Erik. “Talent Disrupted: College Graduates, Underemployment, and the Way Forward — The Burning Glass Institute.” The Burning Glass Institute, 22 February 2025, https://www.burningglassinstitute.org/research/underemployment. Accessed 8 January 2026.
