There's More Than Cyclical Factors in Canada's High Youth Jobless Rate, Says BMO

11:55 AM EDT, 10/21/2025 (MT Newswires) -- Not sure why this is even up for debate, but a few commentators have tried to assert in recent weeks

that the 15-year high in Canada's youth unemployment rate (14.7%) is purely a function of a soft economy, said Bank of Montreal (BMO).

The youth jobless rate has jumped almost two percentage points above its 30-year norm, while the 5.9% rate for those over 25 years old is exactly in line with its long-run average, noted the bank.

The kids are definitely not alright, and it mostly reflects a near-15% surge in the youth population in the past three years, stated BMO.

Put another way, the ratio of the youth jobless rate to those 25 and over has averaged 2.5 over the past

two years, it pointed out.

Looking past the wild monthly swings, that's the highest in almost 50 years of records, added the bank. The previous highs were in the late 1970s, and reflected the peak of the baby boom entering the job market -- and no one was doubting then that the economy struggled to absorb the population surge.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.