Bank of Canada Deputy Governor Nicolas Vincent's speech on Tuesday fretted about the rise in the country's youth unemployment, says Bank of Montreal (BMO).
Vincent cited a variety of factors, including structural issues like Artificial Intelligence and United States tariffs -- which, he suggested the BoC couldn't do much to address with
monetary policy, noted the bank.
But Vincent also mentioned: "Between 2022 and 2024, there was a large influx of young people from abroad. This intensified competition in Canada for lower-skill and entry-level jobs." That seems to be the dominant factor at work here.
The youth jobless rate was actually pressing all-time lows of around 9% in 2022, until the surge in population took hold, noted BMO.
The number of people aged 15-24 increased by almost 12% in a two-year period, more than triple the growth rate seen at any time for that group in the past 50 years. Meantime, the population of those aged 45 or over saw steady growth through that episode, noted the bank.