Federal, P.E.I. wage subsidies open for employers hiring youth

Funding also supports Canada’s future workforce, says government

Federal, P.E.I. wage subsidies open for employers hiring youth

Canadian employers in agriculture and those in Prince Edward Island can now apply for federal and provincial wage subsidies to hire young workers this summer, with governments positioning the funding as a way to reduce labour costs and build future talent pipelines.

Agriculture and Agri-Food Canada has announced up to $27 million over two years for its Youth Employment and Skills Program (YESP), which helps agriculture and agri-food employers hire youth aged 15 to 30 by subsidizing wages and benefits. According to Agriculture and Agri-Food Canada, funding is available for up to 50 per cent of wages and benefits for general applicants, and up to 80 per cent for Indigenous employers or for employers hiring youth facing barriers to employment.

Applications for the 2026–27 YESP year are open from March 5 to May 4, 2026, according to the federal department. The program offers non-repayable contributions, allowing employers to bring on additional staff or test new roles at reduced cost while young workers gain practical experience in agriculture.

The federal government said new administrative changes are being introduced this year to simplify the application and approval process and to prioritize youth facing barriers to employment, including Indigenous youth, youth with disabilities, and those living in rural or remote regions. Agriculture and Agri-Food Canada said the goal is to strengthen the agriculture workforce and contribute to Canada’s long-term food security.

Application details are available here and here.

Agriculture’s future workforce

“Supporting young Canadians as they build their careers in agriculture is an investment in the future of our country,” said the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, in the federal news release. “By opening doors to meaningful experiences in this essential sector, we help the next generation gain the skills, confidence, and opportunities they need to thrive. This investment will strengthen our rural communities, support innovation, and ensure the continued success of Canadian agriculture.”

Bobby Morrissey, Member of Parliament for Egmont, said youth bring “fresh perspectives, energy, and innovation to Canadian agriculture,” and that by supporting YESP “we are helping young people unlock new opportunities, gain valuable experience, and pave the way for a vibrant, sustainable future for our sector and our communities.”

The YESP funding forms part of the federal government’s broader $307.9‑million Youth Employment and Skills Strategy, which focuses on helping young Canadians gain work experience and build careers, the department said. Since 2019, YESP has supported more than 6,200 youth jobs in Canada’s agriculture sector, including almost 2,000 opportunities for youth facing employment barriers, according to Agriculture and Agri-Food Canada.

P.E.I. student wage subsidies for all sectors

In Prince Edward Island, employers in all sectors can also apply for wage subsidies to hire summer students through SkillsPEI and the Employment Development Agency, according to the provincial government.

The Jobs for Youth Program offers wage subsidies to employers hiring students aged 15 to 29 for eight to twelve weeks during the summer, provided the students plan to return to school in the fall. The Post-Secondary Student Program provides wage subsidies to employers hiring full-time post-secondary students for twelve to eighteen weeks over the summer, the province said. Employers can apply online until 11:59 p.m. on April 3, 2026.

In the 2025–26 fiscal year, these P.E.I. programs supported summer work experiences for more than 850 students and youth with more than 530 employers across the Island, according to the Government of Prince Edward Island.

Previously, Complete Fusion Welding Ltd. used the Post-Secondary Student Program to hire a welding apprentice, said CFO David McLellan in the provincial release. “This opportunity not only helped us to expand capacity in our shop, but also created a memorable experience for our staff, who were able to share their expertise and mentor the apprentice in an environment where their own skills and knowledge were fully engaged.”

“Each year, the Student Summer Employment Programs provide meaningful support to local businesses across Prince Edward Island,” said Minister of Workforce and Advanced Learning Zack Bell. “By providing these supports, students also gain valuable work experience that helps shape their career paths.”

Labour shortages, youth unemployment

Canada ended 2025 with fewer employees on payrolls and more vacant positions, according to figures from Statistics Canada (StatCan).

Meanwhile, in December 2025, the national youth unemployment rate was 13.3%, up 0.5 percentage points from November as youth employment fell by 27,000, data from StatCan show.

In P.E.I., in 2025, P.E.I.’s youth unemployment rate (15–24) averaged 10.9%, down from 11.1% in 2024. The youth labour force (15–24) reached an all‑time high of 16,500 people in 2025, after growing 1.9% over the year.

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