Canada’s Long-Term Unemployment Hits 25-Year High: What It Means for Your Job Search
If you lose your job right now, finding a new one will take much longer than it has in decades. The Bank of Canada reported on May 26, 2026, that long-term unemployment has hit a 25-year high. This directly affects your job search, your savings, and your peace of mind.
The Key Numbers
Here is what the data shows:
- Long-term unemployment rate: 25.4% in January 2026 — the highest level outside of pandemic years since 1997.
- Average job search duration: 22.7 weeks — a figure not seen since late 1999.
- Overall unemployment: 6.9% in April 2026.
- Jobs lost: 112,000 in the first four months of 2026.
- Youth unemployment: 14.3% — young Canadians make up nearly a quarter of all long-term unemployed.
Why Is This Happening?
The labour market is stuck in a "low hire-low fire" pattern. Companies are not laying off many workers, but they are also not hiring. Several factors are making it harder to get back to work:
- Skills mismatches: The jobs available require different skills than what many unemployed workers have.
- US tariffs: Trade uncertainty is hurting Canadian businesses and slowing hiring.
- Aging population: As more workers retire, the skills gap widens.
Who Is Affected
- Anyone currently unemployed: You will likely face a longer job search than in previous years.
- Young Canadians (ages 15–24): You are hit hardest, with unemployment at 14.3% and a large share of long-term unemployed.
- Workers in industries hit by tariffs: Manufacturing, trade, and related sectors are especially vulnerable.
- Anyone worried about job security: Even if you have a job, the market is tight, and finding a new one will be harder.
What You Should Do
- Upgrade your skills now. Look into government training programs or online courses in high-demand fields like healthcare, technology, or skilled trades.
- Start your job search early. Do not wait until you are unemployed. Begin networking and applying while you still have a job.
- Attend local job fairs and employment services. Many communities offer free workshops and job placement help.
- Be prepared for a longer search. Budget for at least 22 weeks without income. Build an emergency fund if you can.
- Consider part-time or gig work. Temporary income can help bridge the gap while you look for a full-time role.
- Check government support programs. Employment Insurance (EI) and provincial training grants may be available.
Bottom Line
Canada’s long-term unemployment is at a 25-year high, and the average job search now takes nearly 23 weeks. If you lose your job, finding a new one will take longer and require more effort. Youth are especially affected. The best thing you can do is upgrade your skills, start your search early, and prepare financially for a longer wait. The labour market is stuck in a slow cycle, but taking action now can help you get ahead.