Canada Slashes 2,000 Student Jobs as Youth Unemployment Hits 14.6%

A sharp contraction in student employment across Canada’s federal public service is making headlines: between 2024 and 2025, nearly 2,000 student positions were axed — a drop of nearly 20%.

Data from the Parliamentary budget records show that in March 2024 there were about 9,120 student employees in federal departments, which fell to approximately 7,370 a year later.Yahoo Finance

The worst-hit branch? The Canada Revenue Agency (CRA). In March 2024, the CRA employed 1,356 student workers; one year later, that number dropped to just 268 — a staggering 80% reduction.calgary.redfm.ca

Nathan Prier, president of the Professional Employees Association, criticized the cuts as “quiet surgery” targeting the youngest cohorts. Meanwhile, 15–24 year olds are seeing historic unemployment: Canada’s youth unemployment hit 14.6% in July 2025 — the highest level since 2010 (excluding pandemic years).

The broader job market picture is bleak: Canada lost 40,800 jobs in July alone, with youth bearing a disproportionate share of losses. Reuters

Why These Cuts Are Happening

Fiscal Tightening & Budget Controls
Officials have warned of public service “adjustments” in the upcoming federal budget, signaling deeper cuts ahead. Many departments are expected to trim up to 15% in staffing over coming years.

“Cap first, cut when needed” vs. direct layoffs
While public officials have pledged to cap overall employee numbers through attrition, student and contract roles have instead borne the immediate brunt of direct cuts.

Efficiency & Cost-Benefit Logic
Student roles are often auxiliary or support in nature. Under tighter budgets, roles with less immediate measurable output are often the first to go.

Weak Job Market & External Pressures
The July job losses were concentrated among youth. Sectors like manufacturing and retail — big employers of young and part-time workers — saw steep declines, influenced in part by global trade tension and tariff impacts. Reuters

Long-Term Risks & Strategic Responses

• Talent pipeline erosion: Without recruiting young workers, federal institutions risk future leadership vacancies and a thinning of institutional expertise.

• Loss of institutional dynamism: Student interns and part-timers often bring fresh ideas, technical fluency, and energy — cuts may hollow out innovation capability.

• Worsening youth employment crisis: High youth unemployment strains social welfare systems and could deepen generational disenfranchisement.

To mitigate, policymakers should consider transitional mechanisms — subsidized internships, hybrid remote roles, apprenticeships — that preserve entry paths for young talent even under tighter fiscal constraints.