University of British Columbia students were photographed on the first day of classes in Vancouver on September 5, 2023. Only 46.8% of returning students managed to secure summer jobs before they resumed full-time studies in the fall.
In June, Canada's economy saw little change with a slight loss of 1,400 jobs, pushing the unemployment rate up to 6.4%, according to Statistics Canada. This marks a persistent trend of rising unemployment over the past year, affecting 1.4 million Canadians. While some who were unemployed in May found work by June, the recovery pace was slower compared to pre-pandemic times.
Certain sectors like transportation and public administration saw job declines, while food services, accommodation, and agriculture added jobs. Notably, unemployment rates increased among Black and South Asian Canadians aged 25 to 54.
Average hourly wages rose by 5.4% in June compared to last year, reflecting some positive economic movement amidst broader challenges. However, economists like Douglas Porter from BMO highlighted concerns about a softening job market, which could prompt the Bank of Canada to consider rate cuts, although rising wages might complicate such decisions.
The youth unemployment rate, particularly for those aged 15 to 24, hit 13.5% in June, the highest since 2014, excluding pandemic peaks. This tough job market has been especially hard on students seeking summer employment, with only 46.8% finding jobs before returning to school.
Christian Kyle, student union president at the University of British Columbia, noted the increasing difficulty students face in finding summer jobs, attributing it to rising living costs in cities like Vancouver.
Avery Shenfeld, chief economist at CIBC Capital Markets, acknowledged the temporary nature of the issue, tied to reduced availability of traditional summer jobs compared to last year's high demand in hospitality and retail sectors.
Despite these challenges, economists remain cautiously optimistic about future economic recovery as pandemic impacts gradually ease.
