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Good morning. If you’re a young job seeker running into dead ends, you’re not alone. That’s in focus today – followed by a tip on saving that avoids the Big Six.
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Data: U.S. company CoreWeave Inc. will operate a data centre opening next month in Cambridge, Ont., where Canadian artificial-intelligence company Cohere Inc. will be a customer.
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- In Canada, the international merchandise trade report for May is expected to show another deficit after exports plunged 10.8 per cent in April.
- In the U.S., markets are eyeing today’s employment report for signs that trade volatility might be weighing on hiring – and nudging the Federal Reserve toward a rate cut later this month.
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And there’s Trump’s “big, beautiful” tax bill, which ran into a late-night rebellion in the House, but advanced to a final vote early this morning ahead of the President’s self-imposed Fourth of July deadline.
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Categories such as camp counsellors and lifeguards are seeing steep declines. Grassetto/iStockPhoto / Getty Images
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Why young job seekers need a lifeline
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Early last month in Thunder Bay, Employment Minister Patty Hajdu announced the federal government would fund an additional 6,000 youth positions
through the Canada Summer Jobs program, bringing the total to 76,000 placements for 2025. The expansion would help more young people find work and support employers through the summer months, she said, and “unlock new opportunities for Canadian youth and help our country build the strongest economy in the G7.”
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In reality, the additional funding did not reflect new hiring activity. It went to employers who had already applied for the program’s support earlier in the year and were either waitlisted or partly funded. The program operates on a grant system: Employers submit applications in winter, outlining how many young people they hope to hire and for what roles. If approved, they’re required to post those jobs on the federal Job Bank.
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Job postings for summer roles on Indeed were down 22 per cent year-over-year as of early May, with steep declines in categories such as camp counsellors and lifeguards. That figure doesn’t capture government-funded roles posted only to Job Bank and not necessarily shared on private platforms such as Indeed or LinkedIn – but it points to a clear pullback in private-sector demand.
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Matt Lundy, The Globe’s economics editor, characterized the market that month as being “trounced" for good reason: postings in hospitality, retail, and camps – sectors that traditionally absorb large numbers of teen and student workers – fell most sharply. In April, youth employment dropped by 28,000, with losses concentrated in part-time and seasonal roles.
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While Ottawa has scaled up funding, private-sector demand for summer labour is being weakened by rising costs, widespread hiring freezes and increased automation, according to industry groups and recent employer surveys.
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The result is a narrowing path into the work force. Summer jobs have long provided a crucial first rung – offering early experience, income, and references. Without them, younger Canadians face a higher risk of long-term underemployment, weaker labour force attachment, and widening socioeconomic gaps.
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An OECD review of early-career employment shows that entering the job market later
can lead to lower lifetime earnings and less stable work. In Canada, a federally funded research group reported that early work experience is critical for developing confidence, job readiness, and long-term career prospects – especially for youth without strong social or economic support networks.
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The labour market awaiting students who continue through postsecondary education will also prove tough to crack. As one dynamic Globe writer observes, Canadian companies are joining major employers around the world in scaling back junior hiring – turning to artificial intelligence to perform a growing share of work.
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For recent graduates and early-career professionals, the spread of AI could mean fewer stepping-stone jobs – and higher expectations for those who remain, as roles increasingly demand fluency with the technology and more advanced responsibilities.
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AI alone isn’t dragging on entry-level jobs. But its adoption is adding new complexity to a youth labour market already shaped by tariff-related budget cuts and hiring delays.
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If it feels like a cruel summer is only the dawn of an even harsher transition, take heart: Universities and colleges are expanding co-op placements and applied learning to help students gain practical experience with emerging technologies. Demand is expected to surge for skilled trades
– electricians, welders, heavy equipment operators, carpenters, and pipefitters – driven largely by retirements and a growing list of infrastructure projects.
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With the federal government fast-tracking major builds and educators rethinking how to bridge learning and labour, the sun may soon shine on the youth job market again.
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Government-funded positions created under Canada Summer Jobs in 2025, up from 70,000 initially announced.
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