TORONTO, Sept. 2, 2025 /CNW/ - As students across Canada head back to school, the Government of Canada is supporting their next steps toward a bright future by creating more pathways to rewarding careers and making education more affordable.
Today, Patty Hajdu, Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, announced $26.1 million in funding for six national projects under Employment and Social Development Canada's (ESDC's) Youth Employment and Skills Strategy (YESS) Program. Building on previous investments in the YESS Program, which are providing employment supports to over 23,600 young people, these new projects will help improve employment outcomes for a larger number of youth.
These projects are developing and testing solutions to the challenges youth face in the job market. Funded through the Strategic Collaboration stream of ESDC's YESS Program, they bring together youth, service providers, and employers to create approaches that can be scaled across the sector. That includes guidelines to help employers better integrate youth with disabilities and tools that improve data collection for more evidence-based decision-making.
In addition, for the 2025–26 academic year, the Government has extended the temporary increases to student grants and loans through the Canada Student Financial Assistance (CSFA) Program, that will improve the affordability of post-secondary education. This includes maintaining the 40% increase to grants for full-time students, part-time students, students with disabilities and students with dependants, and the Canada Student Loan limit increase from $210 to $300 per week of study.
The YESS, including Canada Summer Jobs, is part of the Government's broader commitment to youth, alongside other programs like the Student Work Placement Program, Canada Service Corps, and the Supports for Student Learning Program. Together, these programs are expected to create 162,000 opportunities for youth in 2025–26, empowering the next generation to shape Canada's future.
Quote
"When we invest in our youth, we invest in the future of our country. Through the YESS and CSFA Program, we are securing opportunities for students while allowing businesses nationwide to access young talent. As our economy evolves with new technologies and growing industries, we are investing in emerging leaders to ensure they have the skills, training and support to lead, innovate and succeed in tomorrow's workforce. This will unlock young people's potential and secure a future full of opportunities."
– Minister of Jobs and Families and Minister responsible for the Federal Economic Development Agency for Northern Ontario, Patty Hajdu
"Youth need the skills and experience to succeed in a rapidly changing labour market. As students head back to school, the Government of Canada is lowering the cost of education and strengthening the supports that help young Canadians prepare for the job market. By investing in their potential, we're investing in Canada's future prosperity."
– Secretary of State for Children and Youth, Anna Gainey
Quick facts
- During the 2025-26 academic year, approximately 593,000 Canadian students are expected to benefit from the 40% increase to non-repayable grants. Additionally, 367,000 students could benefit from the weekly loan limit increase, which provides extra interest-free loans from the Government of Canada to students with unmet funding needs.
- To better address the real cost of rent for students, Budget 2024 introduced a measure to modernize the shelter allowances used by the Canada Student Financial Assistance Program to assess a student's financial need, which could help about 79,000 students each year get the support they need.
- To help ensure Canadians have access to the health care services they need no matter where they live, the Government of Canada increased the maximum amount of Canada Student Loan forgiveness by 50% for doctors and nurses working in under-served rural or remote communities, helping to make debt loads more manageable for the family physicians, family medicine residents, nurses and nurse practitioners who work in these under-served areas. In addition, the definition of an "under-served rural or remote community" was amended to include all communities with a population of 30,000 or fewer, meaning doctors and nurses working in over 200 new communities now qualify for the benefit.
- Budget 2024 also committed to permanently expand the reach of Canada Student Loan forgiveness to include 10 additional health care and social services professionals, including early childhood educators, dentists, dental hygienists, pharmacists, midwives, teachers, social workers, psychologists, personal support workers and physiotherapists. Pending final regulatory approval, it is anticipated that borrowers in the newly eligible occupations will be able to apply for the Canada Student Loan forgiveness benefit starting in November 2025.
Related Products
Backgrounder: Youth Employment and Skills Strategy and Canada Student Financial Assistance Program
Associated links
Youth Employment and Skills Strategy
Canada Student Financial Assistance Program
SOURCE Employment and Social Development Canada
Contacts: For media enquiries, please contact: Aissa Diop, Director of Communications, Office of the Minister of Jobs and Families and Minister responsible for FedNor, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]
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