Canada’s Gen Z youth face rising NEET crisis amid job market shift
ONTARIO, CANADA — Canada’s Generation Z is facing a critical employment crisis as an increasing number of young adults remain disconnected from both the workforce and educational systems, according to an analysis by Money.ca.
Recent data from Statistics Canada reveals that almost 11.5% of Canadians aged 15 to 29 are now classified as NEETs, or Not in Education, Employment, or Training. This amount hovers at just under one million individuals. From March 2023 to March 2024, the employment rate for youth in this segment declined by 2.7 percentage points, reaching just 62.9%.
The rise in NEETs is fueling heated debate about the value of post-secondary education.
“In many cases, young people have been sent off to universities for worthless degrees which have produced nothing for them at all,” British political commentator Peter Hitchens said in a podcast.
“And they would be much better off if they apprenticed to be plumbers or electricians. They would be able to look forward to a much more abundant and satisfying life.”
Blue-collar sectors still struggle to recruit
Labor market data paints a complex picture: Job vacancies requiring only a high school diploma saw a sharp 22.3% drop (a reduction of 66,800 jobs) in the first quarter of 2025 compared to the previous year. Yet, blue-collar sectors continue to face acute recruitment challenges.
According to a 2024 Canadian Chamber of Commerce survey, over half of small and medium-sized businesses in manufacturing and construction struggled to find employees, while 47% reported mismatches between new hires’ skills and job requirements, as reported by the Canadian Federation of Independent Business (CFIB).
A 2021 Ontario study found that negative perceptions and stigma persist around skilled trades, further deterring young people from pursuing these careers. Student debt for degrees that do not readily translate to employment deepens the disengagement among young adults.
New programs seek to boost skilled trades
Efforts to shift perspectives and close the skills gap are underway. TV host Mike Rowe will distribute $2.5 million in scholarships to support skills training this year, while DEWALT, a power tools manufacturer, is pledging nearly $4 million to trades education through its “Grow the Trades” initiative—part of a larger $30 million commitment by 2027.
Statistics Canada reports that new apprenticeship registrations rose 8.0% in 2023 over the previous year, reaching 70,521 and surpassing pre-pandemic levels. If these efforts continue, experts believe the NEET crisis could gradually ease.
