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Canada is facing a growing disconnect between its housing sector and the labour market, particularly for younger generations. While the overall employment picture may appear stable, youth unemployment has spiked to levels traditionally tied to deeper economic crises, rather than cyclical fluctuations. The article argues this isn’t simply a temporary blip but a structural shift—one that threatens to sever young Canadians from key financial milestones like household formation, savings accumulation, and home ownership.

The piece identifies two major forces behind this generational labour-market gap. First, demographic pressures—especially the rapid inflow of international students and non-permanent residents—have outpaced job creation in entry-level markets, creating oversupply in sectors traditionally occupied by youth. Second, technological change and automation are hollowing out the very roles that many young people used to use as stepping stones in the workforce. As these entry rungs disappear, the pathway into stable careers becomes more elusive.

These labour-market stresses have direct consequences for housing demand. Without stable employment, many young adults delay moving out, postponing family formation and staying longer in shared or parentally subsidized living arrangements. The article warns that unless policymakers adopt integrated strategies—linking education, immigration, labour policy, and housing supply—the erosion of participation by younger cohorts could hollow out the base of demand that underpins Canada’s housing market long term.

Read the full article on: STOREYS