Employers’ hiring practice not meeting young Canadians’ job search habits: report

How and where are Canadian employers looking to hire younger workers?

Employers’ hiring practice not meeting young Canadians’ job search habits: report

Employers seem to be looking for young workers — but not where they can find them, according to a recent report.

Currently, most small businesses favour informal methods when hiring young workers, according to a recent survey from the Canadian Federation of Independent Business (CFIB). Six in 10 small firms (62%) prefer “personal connections and networks” as a recruitment tool, compared with 44% that use online job boards.

Young people, however, are primarily searching in digital spaces. Almost three in four (73%) young Canadians look for jobs on online job boards.

Recruitment approaches vary significantly by industry, according to the survey findings reported by Global News. Almost half (47%) of businesses in professional services, such as accounting and engineering firms, use a combination of online job boards and co‑op or internship programmes to hire.

More than one‑third of professional services firms also use school or post‑secondary career services to reach potential candidates, the report says.

Consumer‑facing industries, including retail, hospitality and the arts, are described in the report as being more open to low‑cost tactics such as social media applications, unsolicited applications and walk‑ins prompted by “help wanted” signs. 

Job‑seeking patterns also differ by province. Global News reports that Quebec youth are less likely to use online job boards and more likely to send unsolicited applications directly to employers, while young people in Ontario are more inclined to use co‑op or internship programmes and academic career services. 

Three in 10 (30%) HR leaders in the U.S. say their talent acquisition strategy is shifting towards hiring fewer entry‑level workers in favour of mid‑level employees using AI to complete what were previously junior tasks, according to a previous report.

Employer size, soft skills and HR’s assessment challenge

Employer size is another factor shaping recruitment practices. Larger businesses are more likely to use multiple recruitment methods than smaller firms, the CFIB survey shows. “For instance, less than a third of businesses with 0–4 employees use online job boards, compared to more than two‑thirds of businesses with over 50 employees,” the report notes.

Beyond where they look for candidates, employers also differ in what they say they value most. Global News reports that “most small business employers said they prioritize soft skills and attitude over credentials or experience,” signalling a focus on employability traits in youth hiring.

More than nine in 10 respondents (91%) say they prioritise a “positive attitude” or “enthusiasm.” In addition, 84% say they look for “motivation,” 76% cite “professionalism” and 73% highlight the importance of good communication skills. 

A study published by the Fraser Institute links Canadian government policies to a sharp rise in youth unemployment, warning the situation could have lasting consequences for an entire generation of workers.

Here's a summary of the most recent data from Canadian think tanks, government stakeholders, and industry organisations on employer demand for young workers:

Source / Stakeholder

Key Finding on Employer Demand for Young Workers

Date

Employment and Social Development Canada (Government of Canada)

Federal funding will support up to 100,000 youth job opportunities through Canada Summer Jobs 2026, and roughly 175,000 total youth opportunities across all federal programmes (CSJ, Student Work Placement Program, Youth Employment and Skills Strategy) in 2026-27, backed by a $1.5 billion investment.

April 2026

Canadian Federation of Independent Business (CFIB) — small business stakeholder

Survey of 1,540 small business owners found employers' capacity to hire youth is constrained by weak demand and rising payroll costs. 62% of small businesses prefer hiring young workers through personal connections/networks, 44% via online job boards. 91% prioritise positive attitude/enthusiasm, 84% look for motivation.

May 20, 2026

CFIB Business Barometer (April 2026)

Across all small businesses, only 19% are planning to hire full-time staff vs. 16% planning lay-offs — described as "soft" readings for this time of year.

April 2026

Indeed Hiring Lab Canada (research arm)

Youth labour market struggles continuing into Q1 2026. Since June 2022, employment rates have fallen 8.7 percentage points for 15-19 year-olds and 2.9 points for 20-24 year-olds. Retail, food services, professional services, finance and manufacturing all reduced youth hiring.

May 6, 2026

C.D. Howe Institute (think tank, via The Hub)

Job vacancies fell to ~495,000 in Q4 2025, down from a peak of ~986,000 in mid-2022. Vacancies requiring only a high-school diploma — the entry-level roles youth compete for — fell the most steeply. Roughly 3.3 unemployed Canadians for every job opening.

May 7, 2026

Statistics Canada — Labour Force Survey

Youth (15-24) unemployment rate climbed to 14.3% in April 2026, up 0.5 points month-over-month and roughly double the overall 6.8% rate. Teen (15-19) unemployment hit 20.2% in Q1 2026.

May 8, 2026

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