Is the hiring system broken? Young Canadians think so as job market hurdles grow

Sana has experienced numerous rejections after applying to hundreds of jobs since her layoff last year, according to Financial Post.  

“The hiring system is pretty broken,” Sana, 27, said. She chose not to reveal her last name as she is still seeking employment. 

She believes the challenges she faces are not unique to her industry but reflect broader systemic issues in the job market for people under 35, a group that is contributing to a rising unemployment rate in Canada.  

“There’s no loyalty from organizations; they’re not recognizing the systemic failures, like actually supporting and uplifting young people,” Sana said. 

Sana noted that many employers still demand prior experience for entry-level positions or prefer candidates with connections. She also criticized the reliance on volunteer work as a way to build experience, saying it’s not sustainable for those with financial obligations. 

Living with her family, Sana described working unpaid for a company specializing in diversity, equity, and inclusion (DEI) work after completing her master’s.  

She eventually landed her first full-time role there but described it as exploitative, noting long hours, poor pay, and no work-life balance. She worked at the company for two years before being laid off in March 2023. 

“I was very distraught,” she said, recounting how she sought support after a few months. Over the past year, Sana has found the job market increasingly difficult to navigate, citing delays in responses from employers and fewer interviews. 

Statistics Canada reported a 9.2 percent drop in job vacancies in the second quarter of this year. A report from the Royal Bank of Canada (RBC) highlighted that the increase in the unemployment rate, now at 6.5 percent, is primarily driven by those under 35, particularly students and new graduates. 

RBC economist Carrie Freestone, who co-authored the report, observed this trend emerging in late 2022, noting that the rise in unemployment during past labour market corrections was often triggered by layoffs, a pattern not seen this time.  

She pointed out that hiring freezes have become more common, with younger job seekers struggling the most. 

Ilona Dougherty from the Youth & Innovation Project at the University of Waterloo warned of a “full-out screaming crisis,” urging recognition of the challenges young people face. 

Dougherty noted that even those who are employed may not be thriving. A study conducted by the University of Waterloo and RBC showed disparities in pay and job satisfaction among young women and immigrants. 

Sana eventually found work at a consulting agency but initially only worked part-time. Though her hours have increased, she lacks a formal contract and remains uncertain about her future.  

Mishika Khurana, a 21-year-old master’s student, explained that many companies seek prior experience and relevant skills, which are often not gained in undergraduate programs. 

Khurana observed that more of her peers are staying in school longer, which may affect unemployment figures. Statistics Canada data shows university participation for those aged 18 to 24 has risen from 19 percent to 30 percent since the mid-1990s. 

Ian Korovinsky, a 19-year-old software engineering student at the University of Waterloo, echoed the sentiment that the bar for securing a job is rising. He shared that he applied to hundreds of positions and cold-emailed potential employers before landing an internship at Bloomberg. 

International students face additional challenges in securing jobs, according to Ritika Saraswat, founder of Re-defined, an organization that supports young immigrants.  

She explained that a lack of Canadian work experience often acts as a barrier to entry. Many young immigrants are taking on general labour jobs while pursuing their degrees, but they still face hurdles when attempting to transition into corporate roles. 

Freestone projected that unemployment could rise to 6.8 percent in the near term, though hiring is expected to gradually pick up in the second half of next year.  

However, young Canadians struggling in the current market may face lasting consequences, including lower wage gains and career instability. 

Sana, reflecting on her experiences, admitted uncertainty about her career path. “I don’t know if I even have a career,” she said. She expressed frustration over taking whatever job is available, noting how short-term contracts can feel like a never-ending cycle.