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Ontario Finance Minister Peter Bethlenfalvy said that the province will increase investments in STEM, AI, and skilled trades, aiming to create more job opportunities for youth in the upcoming 2026 budget and beyond, during a visit to Toronto Metropolitan University’s (TMU) Democracy Forum. He said programs in high-tech sectors, skilled trades, and hands-on training are designed to help youth find stable jobs and meet the changing needs of the labour market.
He noted that in 2025, youth unemployment reached its highest level in the last nine years, with roughly one in four young Ontarians unable to secure entry-level positions.
Speaking to the forum, Bethlenfalvy said that Ontario is facing a looming shortage of skilled workers in fields like engineering, health care, and technology. To address this, he said the provincial government is investing in training programs and pathways that equip young Ontarians with the skills needed to fill these roles, ensuring the workforce is prepared for future economic demands.
“We are tackling workforce preparation even before university, starting in high school with apprenticeships and dual-credit programs, so young people are ready for the jobs waiting for them,” Bethlenfalvy said.
While the government emphasizes early training programs, experts cautioned that structural issues in the labour market remain.
“Until Canada focuses on real production, productivity, and competition, our labour market will continue to leave young people behind,” said Eric Kam, a professor of economics at TMU.
“Canada’s economy has been stagnant for years. Potential GDP isn’t growing, industries aren’t expanding, and young people are struggling to find jobs,” Kam said. If the government actively invests in the country’s strengths, resources, energy, manufacturing, and tech, removes barriers to competition, and drives innovation, Canada can stop falling behind globally and create real opportunities for young workers.”
André Côté, interim executive director of the Dias at TMU, said Ontario needs to invest in programs that match the changing demands of the labour market.
“Ontario must invest in programs that meet the labour market’s changing needs, including vocational diplomas, technical certifications, and hands-on training,” said Côté. He added that this approach will help young people enter the workforce with more skills while also strengthening the province’s long-term economic growth.
“Artificial intelligence and other emerging technologies are reshaping industries fast. If youth aren’t trained in these areas, they will miss out on high-growth opportunities, and Ontario could face a shortage of skilled talent,” said Côté.
Meanwhile, students who are in the midst of their degrees are trying to figure out where their industries will be by the time they graduate ,and whether the education is preparing them for that future.
“There is a big gap between what we are taught in school and what employers actually need. Schools focus on theory, but jobs require practical, hands-on skills that we don’t always get,” said Rieman Adam Mohammad, a third-year criminology student at TMU.
“Even after applying to hundreds of positions, it’s challenging to secure a position even in a retail store, and it makes me worry about how I will be able to get a job in my own career after graduation.”
Myer Siemiatycky, professor emeritus of politics at TMU and founder of the TMU Young Workers Rights Hub, said, “Young workers today face unprecedented challenges, as rapid technological change and U.S. trade tensions have eroded labour market stability and predictability.”
“Ontario must enforce labour laws more strictly and back workers’ right to unionize, or young employees will continue facing unfair pay and poor working conditions.”
The impact of these labour challenges is already visible among students. “Undergrad doesn’t prepare you for the real world. Too often, you are forced to spend extra years and money on post-grad programs that don’t even meet employers’ expectations,” said Omar Chohan, a second-year biology major at TMU.
“AI and technology jobs seem promising because demand is growing globally, but it’s also intimidating, as AI is taking over some roles, so we have to find ways to work with it instead of being replaced.”
Experts say what students are experiencing reflects wider economic pressures affecting the job market for young people.
“Inflation and trade policy create the challenges young workers face in today’s economy,” said Moshe Lander, a senior lecturer of economics at Concordia University in Montreal who specializes in labour markets.
“Tariffs on key industries like auto, steel, and aluminum, combined with wages that haven’t kept pace with inflation, reduce Canadian competitiveness and limit opportunities for young workers, making it increasingly difficult for them to enter the labour market and build sustainable careers,” said Lander.
“Canada is also slow to adopt new technologies like AI, which puts us behind other countries and reduces productivity gains, making it harder for young people to secure meaningful jobs,” said Lander.
A CD Howe Institute report from October ranked Canada around 20th among OECD countries in AI adoption, which shows that Canadian businesses and public institutions lag behind peers. The report says slower adoption could weaken Canada’s competitiveness and calls for more investment in AI research, skills training, and technology use.
Kam also said Canada can’t force growth with budgets alone.
“True progress comes from backing industries where the country excels, fostering competition, and driving innovation; otherwise, young workers will face limited opportunities and stalled wages,” said Kam.
Saba Iqbal is a fourth-year journalism student and a storyteller for, <i>On The Record</i>, winter 2026.
