Here’s how Carney’s budget aims to tackle youth unemployment

Prime Minister Mark Carney‘s budget includes nearly $1.6 billion to be spent over the next three years for various government programs focused on young Canadian workers and students.

This comes amid an ongoing trade war with the United States, which has weakened the job market — especially for younger workers.

Statistics Canada reported the unemployment rate hit 7.1 per cent in September, with youth unemployment more than doubling that figure at 14.7 per cent.

Carney’s budget proposals for youth employment are aimed at temporary summer and regular job placements, including for students, plus training and support systems for those struggling to find work.

Here’s what’s been proposed.

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The current Canada Summer Jobs program could receive $594.7 million over two years starting in 2026-2027 if the budget passes.

The government says this would support 100,000 summer jobs next year.

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In March, the federal government announced it was spending more than $200 million for the program in 2025-2026 to create 70,000 summer positions for Canadians aged 15 to 30. The government said these jobs would be focused on areas facing critical labour shortages, including housing construction.

Although Budget 2025 does not specify what sectors may see these additional summer jobs, Canada continues to face a shortage in affordable housing, with construction continuing to slow down.

The Canada Mortgage and Housing Corporation reported that in August, the number of housing starts fell 16 per cent compared to July.

Even with additional measures put in place earlier this year, the summer of 2025 proved very challenging for young Canadians looking for summer work.

Budget 2025 proposes spending $307.9 million over two years, starting in 2026, for the Youth Employment and Skills Strategy program.

This aims to provide employment, training and so-called “wraparound supports” to about 20,000 youth per year.

These supports may include mentorship, transportation and mental health counselling, according to the federal government.

The aforementioned Canada Summer Jobs exists within this as one of its programs, and the proposed funding laid out in Budget 2025 distinguishes separate funding for each.

The current Student Work Placement Program, as part of Employment and Social Development Canada, could receive additional funding to incentivize businesses and organizations to hire students.

Budget 2025 proposes funding of $635.2 million over three years for the program, starting in 2026-2027 with 55,000 work-integrated learning opportunities for post-secondary students.

In Budget 2024, the federal government committed $207.6 million to the program for 2025-2026.

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Budget 2025 proposes creating a new government body known as the Youth Climate Corps, which currently exists as a grassroots campaign organization.

The federal government proposes spending $40 million over two years, starting in 2026-2028, to create the Youth Climate Corps as part of Employment and Social Development Canada.

In the proposal, the federal government says youth employed within the Youth Climate Corps “will be trained to quickly respond to climate emergencies, support recovery, and strengthen resilience in communities across the country.”