Report Finds Canada’s Summer Job Market Stabilizing After Years of Decline

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Key Takeaways

  • Summer‑job postings in Canada rose 4 % year‑over‑year as of early May 2025, ending a three‑year slide but remaining 36 % below the 2022 peak.
  • Overall listings from January to May 2025 were “stable” compared with the same period in 2024, indicating a flattening rather than a robust rebound.
  • Youth unemployment (ages 15‑24) stood at 14.3 % in April 2025, well above the pre‑pandemic average of 10.8 %.
  • The youth employment‑rate gain from March to July is expected to be modest—just over nine percentage points—mirroring 2024’s subdued increase and falling short of the ~11‑point jump seen in stronger markets.
  • Temporary summer‑camp jobs remain the largest category (13 % of postings) but have slipped from 15 % in 2022; gains in painters, warehouse work and other sectors have offset this decline.
  • Economists attribute the weak youth‑job outlook to a combination of higher interest rates, slower per‑capita economic growth, and a surge in the working‑age population that intensifies competition.
  • Artificial intelligence is not viewed as a primary driver of the recent downturn; instead, reduced hiring in retail, accommodation and food services for teenagers is the biggest factor.
  • When overall hiring is soft, workers who cannot secure higher‑paying roles often return to their previous summer jobs, limiting openings for new entrants.
  • The summer‑job trend mirrors the broader labour market, which has been flat over the past year after earlier declines.
  • Experts advise families to consider entrepreneurial or skill‑building alternatives if traditional summer jobs remain scarce for youth.

Overview of the Summer‑Job Market Trends
The Indeed Canada report reveals that the average number of summer‑job listings rose 4 % compared with the same week in 2024, breaking a streak of three consecutive years of decline. However, this uptick is modest when measured against the 2022 peak, when postings were 36 % higher. From January through May 2025—the period when most summer positions are advertised—the total volume of listings was described as “stable” relative to the previous year, signalling a plateau rather than a vigorous recovery. This pattern suggests that employers are cautiously maintaining hiring levels but are not yet expanding summer opportunities aggressively.


Youth Unemployment Persists at Elevated Levels
Despite the slight rise in postings, the labour market for Canadians aged 15 to 24 remains challenging. In April 2025 the youth unemployment rate reached 14.3 %, notably above the pre‑pandemic average of 10.8 %. This gap reflects ongoing difficulties for young people entering the workforce, particularly as they compete with a larger pool of job seekers stemming from recent population growth. The elevated rate underscores that the modest increase in job postings has not translated into meaningful improvements in youth employment prospects.


Projected Summer Employment‑Rate Gains for Youth
Indeed senior economist Brendon Bernard forecasts that the youth employment‑rate—the share of 15‑ to 24‑year‑olds who are working—will rise only modestly over the summer months, consistent with last year’s increase of just over nine percentage points from March to July. By contrast, during the stronger labour market of summer 2022 and the pre‑pandemic period, the same metric jumped roughly eleven points. The subdued projection aligns with the broader trend of limited hiring momentum and suggests that many youths will experience only incremental improvements in work opportunities this season.


Factors Behind the “Perfect Storm” for Youth Job Seekers
Bernard characterizes the current youth‑job environment as a “perfect storm,” driven by several intersecting forces. After the pandemic‑induced spending surge in 2022, the labour market heated up, but subsequent higher interest rates have cooled economic activity. At the same time, Canada’s population grew sharply between 2022 and 2024, raising the number of potential workers while per‑capita economic output has lagged. This combination intensifies competition for a limited number of positions, especially for younger, less‑experienced candidates who often lack the credentials or networks to stand out.


Sectoral Shifts in Summer‑Job Listings
The report notes that temporary positions at summer camps accounted for 13 % of all summer‑job postings in 2025, down from 15 % in 2022. This decline has been counterbalanced by growth in other categories such as painting, warehousing, and various skilled trades. The shift indicates that while traditional seasonal roles remain important, employers are diversifying the types of summer work they offer, perhaps in response to changing consumer demand and the need for more specialized short‑term labour.


Methodology: Tracking “Summer” in Job Titles
Indeed measures summer‑hiring intent by monitoring the average volume of job advertisements that contain the word “summer” in their title. This approach captures employers’ explicit anticipation of seasonal needs and provides a comparable metric across years. By focusing on this keyword, the analysis isolates postings that are intentionally tied to the summer period, allowing for a clear view of hiring intentions despite broader fluctuations in overall job‑board activity.


Link Between Summer Jobs and the Wider Labour Market
Bernard emphasizes that the summer‑job market does not operate in isolation; it mirrors trends seen in the broader Canadian labour landscape. Overall job postings have been flat over the past year after experiencing declines in earlier years, reflecting a general hesitation among employers to expand hiring. When the wider market is weak, businesses tend to rely on existing staff or re‑hire former seasonal workers rather than create fresh openings, which further limits opportunities for new entrants, particularly youth.


Impact of Re‑Hiring Former Summer Workers
A notable dynamic identified in the report is the tendency of workers who cannot secure higher‑paying, year‑round employment to return to the same summer job they held the previous year. This behavior reduces the churn that typically creates openings for new job seekers. Consequently, even when postings appear stable, the net increase in positions available to first‑time summer workers may be smaller than the raw numbers suggest, exacerbating the challenges faced by teenagers and recent graduates seeking their initial work experience.


Artificial Intelligence’s Limited Role in the Decline
When asked about the influence of artificial intelligence on the recent downturn in summer jobs, Bernard downplayed its significance, especially for recent graduates seeking professional roles. He acknowledged that AI could be a contributing factor in certain sectors but stressed that it is not the primary driver. Instead, he pointed to a pronounced drop‑off in teenage employment within retail, accommodation, and food‑services industries as the chief cause of the reduced summer‑job availability since 2022.


Policy and Practical Advice for Families
Given the subdued outlook for traditional summer employment, Bernard and other economists suggest that families consider alternative pathways for youth engagement. Encouraging entrepreneurial projects, skill‑building workshops, volunteer work, or gig‑economy tasks can help young people gain experience, develop networks, and enhance their resumes when formal job openings are scarce. Such proactive measures may mitigate the long‑term career impacts of a challenging summer‑job market while fostering resilience and adaptability.

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