Troubled youth
Rising participation and a slower economy lead to a spike in youth unemployment
By Robert Roach 11 August 2025 1 min read
A summer job is not only a rite of passage for many Canadian students, but also a vital source of income. So it’s a good sign that youth employment (i.e. among those aged 15-24) rises in the months of May, June, and July.*
In fact, youth employment in Alberta has increased in every single May, June and July since 1976 (the year the current Labour Force Survey data series starts) except in June 2005 when it slipped by 0.2% and July 2025 when it pulled back by 0.3%.
A key difference between these two outliers is the youth unemployment rate was just 6.2% in June 2005 compared to a record-high (outside the pandemic) of 20.4% in July 2025.
As such, last month’s drop in youth employment is more than just an interesting statistical anomaly—it’s a sign of an especially difficult time for young job seekers with the youth unemployment rate in Alberta averaging 16.4% over the first seven months of 2025 compared to 14.9% over the same period last year.
Why the increase?
Part of the reason lies in the overall slowdown in the Alberta economy. With the trade war weighing on activity and population growth slowing, our forecast for Alberta’s GDP growth this year is 1.9% versus 2.7% last year.
A second key factor is the enlargement of the pool of young workers and job-seekers due to strong population growth among 15-24 year olds. Alberta’s youth population has grown by 5.4% on a year-to-date (YTD) basis compared to 3.8% for those 25 and over. The youth labour force has grown even faster at 6.9% YTD versus 2.3% for older Albertans.
*The employment data in today’s Twenty-Four have not been adjusted for seasonal variation.
Answer to the previous trivia question: The Roman Emperor Augustus reigned from 27 BC to AD 14.
Today’s trivia question: What is the origin of the phrase “the dog days of summer?”
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