BMO Notes Tough Time for Youth Employment in Canada

09:08 AM EDT, 08/12/2025 (MT Newswires) -- Among the many soft spots in July's Labour Force Survey (LFS) was a further worsening of the job market for Canadian youth, said Bank of Montreal (BMO).

The unemployment rate for people aged 15-24 jumped to 14.6% last month -- while this series can be choppy month-to-month -- that's the highest jobless rate for this cohort since 2010 (excluding the COVID-19 pandemic), noted the bank.

It's a particularly tough time for young people as the Canadian economy continues to absorb the surge in international students from the past few years, which has contributed to the recent uptrend in the jobless rate, stated BMO.

More recently, the trade-driven economic slowdown is playing a role in reducing hiring and, as such, building slack in the

broader job market, added the bank.

A meaningful recovery in young people's job prospects will take rebalancing on the demand and supply side. For that, BMO waits for clarity on the trade front and continued normalization of international student admissions.

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