Minister Hajdu highlights Budget 2025 investments to support youth employment – canada.ca

Minister Hajdu Highlights Budget 2025 Investments to Support Youth Employment

By GovPrepare News Desk – November 26, 2025

Standfirst: Minister of Employment, Workforce Development and Official Languages, Patty Hajdu, underscores major Budget 2025 investments to boost youth employment across Canada. The measures will benefit tens of thousands of young Canadians through expanded programs, training opportunities, and job placements.

Key Highlights

• Budget 2025 allocates over $800 million to support youth employment initiatives nationwide.
• Canada Summer Jobs program expansion to create up to 80,000 positions in 2025.
• New investments in skills training, especially for marginalized youth and underrepresented groups.
• Stronger collaboration with small businesses, not-for-profits, and community organizations.
• Enhanced support for work-integrated learning and apprenticeships.
• Measures aligned with Canada’s Youth Employment and Skills Strategy (YESS).

Background and Context

Canada has long faced challenges in ensuring full labour market inclusion for youth, especially in the context of economic downturns and sectoral shifts. The COVID-19 pandemic saw youth unemployment peak at 29.4% in May 2020, highlighting vulnerabilities faced by those aged 15-24 in entering the workforce.

In response, the Government of Canada launched and expanded several programs under the Youth Employment and Skills Strategy (YESS), coordinated by Employment and Social Development Canada (ESDC). Recent budgets have emphasized increasing funding for summer jobs, internships, and skills training to prepare youth for emerging industries, such as clean technology and digital services.

According to Statistics Canada, employment among youth had nearly returned to pre-pandemic levels by early 2024. However, underemployment and skills mismatches persist, particularly among Indigenous, racialized, and rural youth. Budget 2025 aims to address these disparities through targeted programming.

The New Development

On November 24, 2025, Minister Patty Hajdu announced targeted investments in youth employment as part of Canada’s Budget 2025 rollout. Speaking in Thunder Bay, Ontario, the Minister detailed a national strategy to enhance opportunities for Canadian youth, focusing on access to meaningful work, skills development, and diversity inclusion.

Key funding components include:

• $450 million to expand the Canada Summer Jobs program, expected to generate 80,000 subsidized job placements through 2025.
• $160 million for Work-Integrated Learning Placements across post-secondary institutions and private employers.
• $120 million for the Youth Employment and Skills Strategy (YESS) to support barrier-facing youth through life skills, mentorship, and entry-level work.
• $85 million allocated to support apprenticeships and vocational training in high-demand sectors like construction, green energy, and healthcare.

Minister Hajdu emphasized collaboration with local employers, Indigenous communities, and non-profits to ensure that the investments combat systemic inequities and help youth build pathways toward stable, long-term employment.

The Budget measures take effect April 1, 2025, with intake windows for employer applications opening in early 2025.

Expert and Industry Reaction

Industry leaders and education sector stakeholders broadly welcomed the announcement.

“Budget 2025’s youth employment investments reflect a strong commitment to equity and economic resiliency,” said Dr. Shalini D’Souza, Executive Director of the Canadian Council for Youth Development. “Increasing access to summer jobs and workplace training will be key to reducing youth unemployment and underemployment, especially among marginalized populations.”

The Canadian Apprenticeship Forum also lauded the apprenticeship support, noting that over 60,000 new construction trades workers will be needed by 2028. “These investments are timely and essential to meeting regional labour shortages,” said the Forum’s spokesperson.

However, some policy experts urged the federal government to adopt stronger outcome tracking and data transparency to measure long-term impacts on job retention and career progression.

Alignment with Global or National Standards

Canada’s approach is consistent with international frameworks such as the United Nations Sustainable Development Goals (SDG), specifically:

• SDG 4 – Quality Education: Encouraging skill development and access to vocational training.
• SDG 8 – Decent Work and Economic Growth: Promoting youth employment, entrepreneurship, and equal pay for work of equal value.

At the national level, Budget 2025 aligns with the Government of Canada’s Youth Policy and Action Plan, which outlines commitments to inclusion, innovation, and mental wellness in youth services. It also complies with the Employment Equity Act by addressing labour market hurdles faced by designated groups.

Impact on Stakeholders

Youth and Students: Persons aged 15-30, including students and graduates, stand to benefit directly through more accessible job placements, mentorship, and income support. The expanded Canada Summer Jobs program alone aims to create tens of thousands of additional employment placements for the summer of 2025.

Employers: Small- and medium-sized businesses, not-for-profit organizations, and public sector agencies will be eligible for partial wage subsidies to hire young Canadians. The increased funding encourages adoption of inclusive hiring and training practices.

Educational Institutions: Colleges and universities collaborating on work-integrated learning will gain expanded funding streams to support applied learning modules, internships, and co-op programs.

Communities: Rural, remote, and Indigenous communities will benefit from enhanced outreach and capacity-building efforts, helping lower regional youth unemployment and support long-term development goals.

Official Guidance

• Government of Canada Newsroom
• Employment and Social Development Canada (ESDC)
• Job Bank – Youth Employment Programs
• Youth Employment and Skills Strategy (YESS)
• Department of Finance Canada – Budget 2025

Conclusion

Budget 2025 demonstrates the Government of Canada’s renewed focus on equipping young people with essential skills, work experience, and support systems to thrive in a changing economy. With over $800 million earmarked, this initiative underlines youth as a national priority and a critical part of economic resilience.

As implementation begins in 2025, stakeholders can expect new funding windows, application guidelines, and data dashboards to track progress. Employers, educators, and young Canadians are encouraged to visit official channels for updates and application instructions.

GovPrepare.com will continue to provide timely coverage of Budget 2025 policies and their impact on workforce development and public preparedness.

Excerpt (Meta Description): Canada’s Budget 2025 includes over $800 million to expand youth employment programs, training, and job placements, announced by Minister Patty Hajdu.

Tags: youth employment, Budget 2025 Canada, Canada Summer Jobs, Patty Hajdu, Employment and Social Development Canada, youth skills training, YESS, apprenticeships Canada, workforce development, Canadian government programs, work-integrated learning, student jobs 2025