A new look at youth employment and how the labour market could shift

Ottawa’s decision to launch a national consultation on youth employment arrives at a moment when the labour market is recalibrating after several years of imbalance. The federal government is inviting employers, educators, community groups, and young workers to weigh in on how to strengthen pathways into work. It may seem like a bureaucratic exercise, but the stakes are real. Youth participation has not recovered to pre-pandemic levels, training has plateaued, and many sectors are signalling hiring needs that simply cannot be met through experienced workers alone.

The consultation reflects a growing recognition that Canada cannot solve its skills shortages without a stronger early career pipeline. Hiring managers across the country are facing a familiar challenge. Entry-level roles are increasingly scarce, yet the demand for workers who can grow into mid-skill and high-skill roles is rising. Employers want experience, but without better youth integration into the labour market, that experience never materializes. The federal initiative is attempting to break that cycle by asking a basic question: what stands between young people and the labour market, and how do we remove those barriers in a way that supports a more resilient economy.

What it mean for staffing firms

A tighter labour supply has pushed employers to be more open to non-traditional candidates, but many do not have the networks or experience to source and prepare young workers effectively. Agencies that invest in youth-focused pipelines can position themselves as strategic partners who help clients solve persistent shortages in hospitality, logistics, manufacturing, retail, digital services, and administrative functions. Early indications suggest that employers participating in this consultation will focus heavily on job readiness and soft skills. That means onboarding support, rapid upskilling, and short work-integrated training could become areas where staffing firms create real value.