Youth Unemployment in Canada Gets Better, Says BMO

11:59 AM EST, 12/09/2025 (MT Newswires) -- The tough job market for youth has been a running theme in the Canadian economy in recent years, said Bank of Montreal (BMO.TO).

Since immigration inflows bounced back after the COVID-19 pandemic, the jobless rate for this cohort has been on an upward trajectory, noted the bank.

While the rate is typically above the overall unemployment rate, the gap had been widening and had spent most of the year at over twice the average.

All that changed with the November Labour Force Survey (LFS), which saw the youth jobless rate drop 1.3 percentage points in one month alone to its lowest since May 2024, stated BMO. It is now just above its 20-year median, and just under twice the national rate, which also fell, but by 'only' 0.4 percentage point from October.

It appears the slowdown in immigration is finally showing up in the job market, pointed out the bank. After the government tightened targets for non-permanent residents -- especially international students -- late last year, the supply of labor in this age group has stabilized.

That said, it's too early to give the all-clear just yet -- trade uncertainty with the United States and Artificial Intelligence adoption could be significant headwinds for hiring heading into 2026, cautioned BMO.

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