Students struggling to find summer work with recession fears cooling the job market

Some Calgary university students are having a hard time locking down a regular paycheque for the summer, as they prepare to put down their textbooks until the fall semester.

Fewer summer jobs are showing up on the University of Calgary's student job board, and fewer summer co-op and internship opportunities are available to students, according to the university.

"Students are telling us that it is a really challenging job market," said Carllie Necker, manager of career and life design at the school's Centre for Career and Personal Development.

"Our advisors are seeing students who have really great applications and excellent experience and they are not hearing back from employers, whereas typically they would get the opportunity to interview and showcase their skills."

Alberta's youth unemployment rate reached 15.1 per cent in March, up from 14.1 per cent last March, and up from 10.4 per cent in March 2023. 

Seasonal postings on the job site Indeed Canada are down about five per cent compared to last year, said Indeed senior economist Brendon Bernard.

Uncertainty created by U.S. President Donald Trump's trade policy and fears it could bring about a recession are among the many factors at play, according to Bernard.

"The economic situation is pretty cloudy looking ahead," he said. "The summer job is still linked to the rest of the economy. It can't escape what's happening elsewhere."

Friday marked the last day of classes this semester at the University of Calgary, and students at both the U of C and Mount Royal University are heading into their final exam periods.

But despite extra time away from the classroom coming up, fewer students are applying to leave part-time jobs for summer opportunities in their fields of study, said Mateusz Salmassi with the University of Calgary Students' Union, noting they're worried about finding work again in the fall.

"Many are hanging on to low-paying, challenging work simply because they don't anticipate finding something better," he said. "And I've spoken to students who've applied to 50 to 100 plus jobs with absolutely no luck."

Bernard said the percentage of young Canadians who've never had a job has gone up over the past few years as the labour market has waned.

"An important facet of the labour market when it's evolving well is that people are sort of moving up the job ladder, as you gain more experience," he said.

"When this sort of entry-level job market seizes up, you get a backlog, sort of a traffic jam of job seekers vying [for] that entry-level role."

A backlog of young, aspiring workers can have long-term negative impacts on the labour market, according to Bernard.

Students at the University of Calgary have access to appointments with career development specialists, resume feedback, and career assessments for those still weighing options, said Necker.

She said the demand for career development sessions is "high," but they can meet it, and they're telling students to stay optimistic.

"There are still summer opportunities that may be posted mid-April, right through June. And so we really do encourage students to be persistent," she said.

The University of Calgary Students' Union is asking the provincial government to reinstate the Summer Temporary Employment Program.

The program gave a subsidy to municipalities, small businesses and not-for-profits to hire students over the summer between May and August until it was eliminated in 2019. 

"From our point of view, you should pay Alberta students to strengthen Alberta businesses," said Salmassi. "That's an area the province can step up." 

In a statement, Alberta's Minister of Minister of Jobs, Economy and Trade Matt Jones said reducing youth unemployment is a top priority and the province is working hard to make sure young Albertans can access the labour market, including by offering summer student positions within the Alberta Public Service.

He said Alberta will continue exploring and implementing programs that support career development for young people. 

Jones also pointed out that the provincial government provides scholarships and student loans and is investing $6 million over three years to expand paid work-integrated learning programs for students. 

There are reasons for optimism going forward, according to Bernard. 

He said Canada's push to slow the pace of youth migration into Canada, particularly non-permanent resident arrivals, could lead to young people having an easier time finding work.

In January, Ottawa announced it was tightening the cap on international students by 10 per cent for 2025.