The disappearing career ladder: Why Canada’s graduates struggle to find work

There was once a time when the phrase “on-the-job training” meant more than just a line on a resume. Employers took an active role in shaping their workforce, investing in skills that aligned with the actual tasks of the job. In return, employees gained marketable abilities, felt valued, and often stayed loyal to their companies. Today, that investment has nearly vanished.The decline of workplace training Over the past two decades, spending on employee training and education has dropped by roughly 40% in Canda, according to The Globe and Mail. Formal training programs are now as rare as an airplane ashtray. In Canada, companies spend only $240 per employee annually on training, far below all other G7 nations in both money and instructional hours. As a result, the burden of skills development has shifted from businesses to universities, colleges, and ultimately to young Canadians, who face higher tuition fees, larger student loans, and delayed career earnings.Universities weren’t built to churn out employees For decades, universities have been celebrated as hubs of research and critical thinking. But increasingly, Canadians expect them to deliver job-ready graduates. The reality is far more complex: research priorities often don’t match immediate employer demands, and faculty expertise may not align with in-demand skills. Even colleges and vocational institutions, designed to provide practical training, are struggling to keep pace with rapidly changing technology and market demands.The new grad crunch The consequences are stark. In the first quarter of this year, the unemployment rate for new graduates hit 11.2%, the highest in two decades, The Globe and Mail reports. Alarmingly, 80% of that increase involved Canadians under 35. At the same time, 77% of Canadian businesses say they cannot find suitably skilled candidates for open roles, revealing a paradox: the country is one of the most educated in the world, yet employers can’t fill jobs.Rebuilding the career ladder According to The Globe and Mail, experts suggest potential fixes, including streamlining credential recognition across provinces and countries, or offering tax incentives for companies that invest in employee training and upskilling. But the deeper issue is cultural. Businesses must accept that no graduate arrives truly “job-ready.” Organizations need to reinvest in workforce training, whether through mentorship programs, cross-industry skill alignment, or dedicated entry-level roles. AI may be tempting for companies seeking to automate entry-level positions, but experts warn that cutting these opportunities risks long-term skill gaps and succession challenges. For graduates, the consequence is a career that starts with endless resumes into the void of LinkedIn and Indeed, and long-term earnings setbacks.The lesson for Canada’s workforce Canada’s disappearing career ladder isn’t just a challenge for new graduates, it’s a warning for employers. Rebuilding it requires vision, investment, and patience. Those who neglect to train the next generation may soon find themselves struggling to fill the very roles their businesses depend on.