Nov 5, 2026
Artificial intelligence has become an increasingly convenient explanation for why young Canadians are struggling to find work. As employers experiment with the technology, concerns have grown that companies may be replacing entry-level positions with AI or hiring fewer junior workers.
But new research from Statistics Canada (StatCan) suggests the picture is more complicated. A study examining hiring and job separation rates across Canadian occupations found “no broad evidence” that AI has substantially reduced hiring or increased job losses, including among younger workers.
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Instead, researchers point to a wider hiring slowdown that began before ChatGPT became publicly available, with economic pressures such as population shifts, trade shocks and post-pandemic labour-market adjustments potentially playing a role.
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What the study finds
The StatCan study, Hiring and job separation rates in the era of generative artificial intelligence: Early evidence, was published Oct. 28, 2026, by researchers Tahsin Mehdi and Marc Frenette.
For workers aged 15 to 29, hiring rates in highly AI-exposed occupations where the technology could complement workers fell from 2.9% in the six months before ChatGPT’s public launch in November 2022 to 2.5% in the six months leading up to August 2026. In highly exposed occupations considered more vulnerable to AI substitution, the rate declined from 3.2% to 3.0%.
But hiring also weakened in occupations with relatively little AI exposure, falling from 4.0% to 3.3% over the same period.
The researchers found no consistent pattern of substantial hiring decreases or separation increases in Canada so far, even for younger workers and those in jobs more amenable to AI substitution.
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Fewer vacancies are making it harder to get a foot in the door
The decline in hiring comes after an unusually strong period for the Canadian labour market. According to the study, job vacancies surged in late 2021 and continued rising into 2022 as employers ramped up recruitment during the post-pandemic recovery. But as the labour market cooled, vacancies began falling towards their pre-pandemic levels.
Tahsin Mehdi, a senior labour economist at the agency, told Money.ca that “there are fewer job vacancies now compared to the 2021-to-2022 period.”
He also noted that “vacancies requiring fewer years of work experience fell relatively faster than others.”
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For young Canadians or those just entering the workforce, the challenge is finding entry-level positions, which often provide a first chance to build professional experience, develop workplace skills and establish a track record.
Mehdi cautioned that the study does not directly measure individual job seekers’ experiences or establish that young workers are affected equally across occupations. It does, however, document the broader changes in hiring patterns.
Could AI still make it harder for young Canadians to find work?
The findings don’t mean AI will have no effect on young workers. One concern is that employers could use AI to make existing employees more productive, reducing the need to recruit and train junior staff.
But the longer-term effects remain uncertain. Mehdi stressed that the research should not be treated as a forecast for particular jobs or industries, but rather as “a snapshot in time.”
He added that labour markets respond to technological change alongside other economic forces.
“Continued tracking and monitoring of labour market indicators such as employment, hiring and job separations will be essential to understanding whether, how and for whom new technologies are reshaping the labour market,” he said.
AI may not be the main reason young Canadians aren’t getting hired, but finding an employer willing to give them that first opportunity remains the real hurdle.
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Steven Brennan is a freelance finance writer based in Vancouver, BC. He holds a BA and an MA from Maynooth University, Ireland. His work regularly appears at Canadian Mortgage Trends, Lowest Rates, Loans Canada and other Canadian and U.S. brands.
