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Youth Unemployment in 2025: A Closer Look at the Local Impact

Monday, August 18, 2025

Barrie Chamber: Youth Unemployment 2025

What local employers need to know & how transparency laws will affect your hiring process

It’s a conversation that comes up in group chats, over coffee or while waiting in line somewhere. “Kids these days...” and “They don’t want to work.”

But is it true? Are today’s youth out of touch and soft, or are they navigating a job market that has shifted in ways we’ve largely failed to acknowledge?

Across Ontario, youth employment patterns have changed significantly in recent years. In communities like Barrie, those shifts are being felt by both young people trying to enter the workforce and employers trying to find the right fit for their business.

Youth unemployment is not a new issue. However, recent trends point to deeper structural changes. The types of jobs available, the qualifications needed, and the ways employers hire have all evolved. It’s easy to fall back on assumptions and stereotypes. The reality is more complex and worth understanding.

A Drop in Participation, Not in Willingness

In 2024, Ontario’s youth labour force participation rate dropped to approximately 59.7 percent. That is the lowest ever recorded. It might sound like fewer young people are interested in working, but that is not the case.

What we are seeing is frustration. Many youth are actively applying for jobs but are not hearing back. Some are sending out dozens of applications and never getting a single interview. Unemployment durations have nearly doubled since 2019. Once youth are out of work, it is taking them much longer to find a way back in.

Source: Financial Accountability Office of Ontario – Labour Market in 2024

The Jobs They Want Are Shrinking

Before the pandemic, youth employment was concentrated in three key sectors:

  • Retail trade (about 28 percent)
  • Accommodation and food services (about 24 percent)
  • Construction (about 7 to 9 percent)

These industries offered part-time, flexible jobs that fit around school schedules and did not usually require formal qualifications or previous experience. They made up roughly 60 percent of youth jobs in Ontario.

Since 2019, all three have contracted:

  • Accommodation and food services: down 37,100 jobs (–8.1 percent)
  • Retail trade: down 13,600 jobs (–1.2 percent)
  • Construction: down 26,500 jobs (–4.4 percent)

While some industries, like construction, continue to report labour shortages, fewer youth are filling those roles. This points to a disconnect, whether in training, scheduling flexibility, qualifications, or simply awareness.

At the same time, growth has occurred in sectors like health care, education and professional services. These gains are positive overall, but the jobs themselves often demand full-time availability or post-secondary credentials, which puts them out of reach for many young job seekers. There are now fewer of the jobs youth typically apply for and the ones that are growing often require more education or availability than many youth can offer.

Source: FAO Labour Market in 2024, Statistics Canada – Labour Force Survey 2025

Are They Being Too Picky?

It is a common assumption, but the evidence does not support it. Most young people are not holding out for high salaries or remote work. They are asking for what many of us would consider basic job expectations:

  • A living wage
  • Predictable hours
  • A respectful work environment
  • A chance to grow
  • Stability

These expectations reflect the realities they are living in. Their reality involves high costs of rent and tuition, mental health pressures, awareness of burnout and instability in low-wage jobs.

Many are willing to start small but face major barriers:

  • Entry-level jobs that require experience
  • Unstable shift work or unpredictable schedules
  • Online applications that disappear into the void with no response

Some youth are applying for 40 or more jobs and never receiving a reply. While not every application will be a fit, the lack of any response, not even a ‘thank you for applying’, chips away at engagement.

That is not a lack of effort.

The Hidden Frustration of Ghost Job Posts

Another factor making things worse is the rise of ghost job postings. These are listings that appear active but are not really being filled.

These may be:

  • Old job ads that were never removed
  • Listings posted to gather résumés without an intent to hire
  • Roles already filled internally
  • Postings that are vague, unmonitored, or left up "just in case"

For youth, this can be incredibly disheartening. They are putting time, energy and hope into applications that may have never had a chance in the first place. It leads to disconnection from the job market and discouragement at a time when building momentum is essential.

Where Do We Go From Here?

There is no quick fix. However, there are several areas where real improvement is possible and necessary.

Government can:

  • Expand youth employment programs beyond seasonal jobs
  • Combine wage subsidies with training or mentorship
  • Offer tax incentives for businesses that commit to hiring first-time workers

Employers can:

  • Reconsider experience requirements for entry-level roles
  • Provide clear timelines and follow-up during hiring
  • Avoid relying solely on automated applications and vague listings

Real policy changes

Concerns about vague, outdated and hard-to-navigate job postings have led to legislative action in Ontario. Starting January 1, 2026, new rules will come into effect that aim to make the hiring process more transparent, especially for public job postings.

Key changes include:

Pay transparency

What’s changing: Employers must include the expected salary or a defined pay range. Ranges cannot exceed $50,000 unless the position pays over $200,000 per year.
Why the government says it's needed: To close wage gaps, ensure fairness, and help job seekers make informed decisions.

Source: Ontario Newsroom – April 29, 2024

“Requiring salary ranges in job postings is a key step toward closing gender wage gaps and creating a more transparent hiring process.”

Use of AI in hiring

What’s changing: If artificial intelligence is used in screening or selection, it must be clearly disclosed in the job posting.
Why the government says it's needed: To ensure accountability in AI-driven hiring and protect applicants from bias or opaque decision-making.

Source: Ontario Regulatory Registry – O. Reg. 476/24 Summary

“Employers must disclose whether AI is used… to support transparency in recruitment processes.”

Job status clarity

What’s changing: Job postings must clearly state whether the position is a new role or an existing vacancy.
Why the government says it's needed: To reduce misleading ads and improve clarity for job seekers.

Source: Ontario Regulatory Registry – O. Reg. 476/24

“Employers will be required to indicate whether a posting is for an existing job or a newly created position.”

Post-interview communication

What’s changing: Employers must notify applicants of the outcome within 45 days of their final interview.
Why the government says it's needed: To address candidate frustration with being ‘ghosted’ after interviews and improve fairness in hiring.

Source: Ontario Ministry of Labour Consultation Summary

“Applicants frequently reported a lack of follow-up after interviews… the new requirement ensures closure and improves trust in the process.”

These changes shift more responsibility onto employers, particularly those still using passive or outdated hiring methods. While some businesses may find the added requirements burdensome at first, a more open and thoughtful approach to recruitment can help attract stronger candidates and increase efficiency. The impact will differ depending on the industry and internal capacity; however, the goal is to build greater trust and accountability into the hiring process.

Source: Supporting Regulation (O. Reg. 476/24)

Moving the Conversation Forward

The youth employment landscape is evolving and so must our approach. Traditional recruitment methods may still serve an employer’s immediate goals, but their broader impact on applicants is no longer being overlooked. New legislation reflects a growing recognition that transparency and responsiveness matter, not just for job seekers but for the overall health of the labour market.
Supporting young people as they enter the workforce is not just good policy. It is good business. When youth succeed, our workplaces, communities and economies all benefit.

For comment, please contact:

Paul Markle, ACE
Chief Executive Officer
Paul@BarrieChamber.com
121 Commerce Park Drive, Unit A, Barrie, Ontario , L4N 8X1
(O) 705 - 721 - 5000 ext. 5
(C) 249-288-3540

About the Barrie Chamber of Commerce

The Barrie Chamber of Commerce is a dynamic organization dedicated to fostering a vibrant, thriving business community in Barrie and the surrounding areas. As a voice for local businesses, we advocate on behalf of our members at all levels of government, championing policies that drive economic growth and contribute to our region's overall prosperity. Through meaningful events, networking opportunities, educational resources, and support for business development, we empower our members to succeed and grow. With a proud history of serving the community, the Barrie Chamber of Commerce remains committed to making Barrie a great place to live, work, and do business.

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