As the summer hiring season ramps up, a group representing small businesses said many in British Columbia are not hiring young workers.
The Canadian Federation of Independent Business (CFIB) released a report Wednesday that found the tougher economic climate is leading employers to retain existing staff rather than hire young workers.
The CFIB said many businesses cited increased pressure from B.C.’s expanded PST on a range of services, like security and accounting. It said 72 per cent of B.C. small businesses said they are likely to pass on some or all new PST costs to customers.
The report also said half of B.C. small businesses reported that minimum wage increases and training costs are preventing them from hiring more youth. B.C.’s general minimum wage is set to increase to $18.25 on June 1, from $17.40.
“Small businesses are struggling really a lot on that financial front,” said CFIB policy analyst Molly MacCormack. “They’re not focused on hiring right now because they’re really just focused on survival.”
She said for small businesses that are hiring, there’s a disconnect between the kinds of jobs young people are looking for and what businesses need.
“[Jobs] that pay minimum wage, those that are outside, physically demanding, those in rural and remote communities, those aren’t necessarily the first jobs that youth are going to, according to our data,” said MacCormack.
She said there also is a mismatch between how young people approach their job search, with many turning to online applications while employers prefer to hire based on personal networks.
MacCormack said small businesses and young job seekers can try to meet in the middle.
“What we’re asking and suggesting youth do is really getting out in their communities, putting a name to the face,” she said. “We’re also asking small businesses to try and use channels that we know youth are on. So, for example, trying to explore those online methods, trying to use social media to see where those youth are.”
The CFIB is calling on the provincial and federal governments to consider more tax incentives to encourage hiring, including temporary EI premium relief for youth hires.
Statistics Canada said B.C.’s unemployment rate for youth aged 15-24 was 14.4 per cent in April. That marked a decline from 15.6 per cent the previous month as the province added 4,000 youth jobs, but it remained higher than the rate of 13.3 per cent in April 2025. Overall, youth employment in B.C. remains below the pre-pandemic growth trend.
B.C. Jobs Minister Ravi Kahlon noted businesses are feeling the impacts of global economic uncertainty due to the U.S. trade turmoil and the Iran war.
Kahlon defended the province’s tax regime for small businesses, saying it’s one of the lowest in Canada, and pointed to B.C.’s increased investments in trades training.
B.C. Conservative jobs critic Gavin Dew said small businesses are an important driver of youth employment.
“The province keeps talking about trades training, which is important, but if we don’t have a robust small business community, if we have a public safety crisis that is destroying our downtowns, if we have the lowest small business confidence in Canada…those are not conditions where young people are getting hired,” said Dew.
The federal government’s Canada Summer Jobs program offers wage subsidies to businesses to hire youth aged 15 to 30. This year, the program is expanded to offer up to 100,000 jobs.
But the CFIB wants the application process to be streamlined to be more accessible for small businesses, and for the program to be expanded year-round rather than only during the summer months.
