Unemployment Among Youths in Niagara
Making up approximately 12%[i] of the total population, youths (15-24) are an integral part of Niagara’s labour market and future workforce.
With youth unemployment on the rise (13.5% in 2024, increase of 2% from 2023) and labour force participation declining (-4.8% from 2023), youths are facing a tougher than ever labour market. This is particularly notable when, across Canada, around 10%[ii] Canadian youths were not engaged in employment, education or training (NEET) last year.
Chart 1. Youth (15-24) Labour Force, Niagara CMA, 2020-2024
Source: Statistics Canada. Table 14-10-0461-01 Labour force characteristics by census metropolitan area, annual
Chart 2. Not in Employment, Education or Training (NEET) by Provinces and Territories, Canada, 2024
Source: Statistics Canada. Table 37-10-0196-01 Percentage of 15-to 29-year-olds in education and not in education by labour force status, highest level of education attained, age group and sex
Current (April 2025) youth labour force trends in Niagara show an increase in both the employment and participation rate and a decline in the unemployment rate from March. Increases in participation and employment is promising news as this means more youth are engaged in the labour market than the month prior. However, current youth unemployment (20.7%) is higher, and youth participation (58.5%) and employment (46.3%) rates are lower than what we typically see for this time of year.
Chart 3. Youth (15-24) Labour Force, Niagara CMA, Monthly
Source: Statistics Canada. Table 14-10-0458-01 Labour force characteristics by census metropolitan area, three-month moving average, unadjusted for seasonality
The Causes
Given the increase in unemployment last year, what’s causing youths to disengage from the labour market? Some contributing factors could be:
- Slow downs in hiring activity, more recently spurred from economic uncertainty.
- Competitive labour market due to increased jobseekers and fewer opportunities.
- Pandemic impacts on skills and training.
- Difficulties around self-confidence and mental health linked to fewer community connections and work experience to build action confidence.
Fewer Job Opportunities Amidst Economic Uncertainty
Back in November 2024, Deloitte[iii] found that firms had slowed down their rate of hiring – a key driver of rising unemployment during the time – disproportionately impacting jobseekers (mainly youths). Similarly, the Bank of Canada’s Business Outlook Survey (BOS) from the first quarter of 2025 found that 54% (+11% from Q4 2024)[iv] of employers were not expecting to hire over the next 12 months. Locally, Statistics Canada data indicates that job vacancy rates have been flat or declining across the Hamilton-Niagara Economic Region since early 2021[v].
In Niagara we see a similar trend of lower hiring activity. Job demand throughout 2025 leveled out between March and April. We saw fewer new jobs posted in April than we have at this same point the past few years.
Chart 4. New Job Postings, Niagara, 2021-2025 (Monthly)
Source: Workforce Collective. Job Board Aggregator Tool.
Population Growth
Over the last 10 years, Niagara’s population has grown by 20% (539,180 in 2024)[vi]. From 2023 to 2024, the region saw a population increase of 14,879 people – almost double that of the growth seen from 2016 to 2017. Much of this recent population growth is due to international migration and intraprovincial migration (i.e., individuals moving to Niagara from other areas of Ontario)[vii].
Coupled with slower hiring activity, finding full-time employment becomes more difficult as Niagara’s population grows at a historic rate, particularly when we see higher than historical labour market engagement for “non-youth” labour force groups. For context, over the past 25 years, the share of workers age 55+ years has more than doubled across Canada, increasing from 10.4% in 2000 to 21.0% in 2024[viii].
Chart 5. Changes in Population, Niagara, 2014-2024
Source: Statistics Canada. Table 17-10-0152-01 Population estimates, July 1, by census division, 2021 boundaries
Chart 6. Components to Population Growth, Niagara, 2014-2024
Source: Statistics Canada. Table 17-10-0153-01 Components of population change by census division, 2021 boundaries
Skills & Training and Mental Health
Youth, particularly older adolescents and twenty-somethings were isolated during the Covid-19 pandemic at a formative age. This isolation led to less engagement in social and classroom settings to develop essential skills such as relational literacy, social and interpersonal skills. The over-reliance of smartphones has also been linked to delayed skill development in these areas[ix]. The pandemic also impacted youths’ engagement in training. For example, in 2020, youth aged 18-24 were more likely than older cohorts to delay work-related skills training[x].
Considering additional youth outcomes, unemployment also is linked to mental health, with prolonged unemployment being related to poorer mental health outcomes[xi]. Given the current high level of youth unemployment, supports should consider holistic models when supporting youth in their search for work.
Youth Resources
Amidst a tight labour market it is imperative we support and uplift our future workforce.
Locally, many resources exist to help youth into meaningful employment, education, and including mental health supports:
- Circles of Support – Wraparound support through Workforce Collective/Literacy Link Niagara
- Youth employment
- Mental Health
- The Step Empowerment Centre
- Youth Wellness Hub
- Get A-Head (free counselling for students with an email address)
- List of mental health support services in Niagara
- Cultural/newcomers
- BIPOC youth
- Future Black Female
- NPAAMB – Indigenous Youth Employment & Training
- Fort Erie Native Friendship Centre (FENFC)
- TOES Niagara
- 211 Niagara-wide youth resources
The Niagara Workforce Coalition also continues to build connections between employers and training providers to strengthen pathways to employment for youth and students.
[i] Statistics Canada. Table 17-10-0152-01 Population estimates, July 1, by census division, 2021 boundaries
[ii] Statistics Canada. Table 37-10-0196-01 Percentage of 15-to 29-year-olds in education and not in education by labour force status, highest level of education attained, age group and sex
[iii] Deloitte. (2024). Failure to Launch: The Economic and Social Costs of Youth Unemployment and their Long-term Impacts.
[iv] Bank of Canada (2024). Business Outlook Survey – First Quarter of 2025.
[v] Statistics Canada. Table 14-10-0441-01 Job vacancies, payroll employees, job vacancy rate, and average offered hourly wage by economic regions, quarterly, unadjusted for seasonality
[vi] Statistics Canada. Table 17-10-0152-01 Population estimates, July 1, by census division, 2021 boundaries
[vii] Statistics Canada. Table 17-10-0153-01 Components of population change by census division, 2021 boundaries
[viii] Conference Board of Canada (2025). Labour Market Stuck in First Gear.
[ix] Haidt, J. The Anxious Generation.
[x]Environics Institute for Survey Research, Future Skills Centre, & Diversity Institute (Nov 2021). Making up time: The impact of the pandemic on young adults in Canada.
[xi] Thern, E., de Munter, J., Hemmingsson, ., & Rasmussen, F. (2017). Long-term effects of youth unemployment on mental health: Does an economic crisis make a difference? J Epidemiol Community Health, 71(4). doi: 10.1136/jech-2016-208012